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Renovation for Oregon State Capitol building priced at $225M

By: Tom Henderson//October 11, 2012//

Renovation for Oregon State Capitol building priced at $225M

Tom Henderson//October 11, 2012//

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A possible $225 million renovation has been proposed for the Oregon State Capitol building. (iStock photo)

One strong earthquake could topple the Oregon State Capitol building, gold figure and all.

State Rep. Vicki Berger, R-, said that’s the moral of the story from the 5.6 magnitude 鈥淪pring Break Quake鈥 of 1993 that caused severe damage to the capitol’s rotunda. However, almost 20 years have passed, and the seat of Oregon government remains vulnerable to an earthquake. Seismic upgrades are needed 鈥 possibly to the tune of $225 million.

鈥淣o one should hyperventilate just yet,鈥 said Berger, who serves on the Capitol Master Plan Review Committee.

Committee members have time before a recommendation is due to the Legislature when it convenes in January. Berger said they need to look at data and devise a plan.

鈥淭hen people can hyperventilate if they want,鈥 she said.

Actually, she said, that $225 million figure is from a report issued recently by the Legislative Revenue Office and doesn’t mean much yet.

There are no precise plans to go with the dollar figures, Berger said.

鈥淲e’re looking for a clear set of architectural drawings,鈥 she said. 鈥淲hat we have now is a good plan, but there are no solid numbers to attach to it.鈥

Legislative Revenue Officer Paul Warner stressed that the report is not saying whether the capitol needs seismic upgrades or whether lawmakers should spend $225 million to make them.

鈥淲e basically just did an economic impact analysis to determine the cost of such a project,鈥 he said.

Warner initially crunched the numbers in 2009, but has since adjusted them to include 2 percent inflation. The price tag is an estimate and not final, he said. His analysis doesn’t include what would be necessary and reserve and contingency funds.

鈥淎 plan like this needs a fair amount of contingencies built in,鈥 he said.

A funding mechanism has not been identified, Warner said. But he added that legislators most likely would put a bond measure before voters.

Not so fast, Berger said. The Legislature has some bonding authority and may not need to seek voter approval, she said.

鈥淥n the other hand, this is one we may want to put before the voters because of the potential controversy,鈥 she added.

She admitted that the project looks more than a bit pricey.

鈥淚t’s still going to be a stretch to get it past the Legislature,鈥 she said.

The cost to replace state capitols has gone up since 1855, when Oregon’s first one burned down. The Legislature approved $100,000 (approximately $1.9 million in 2012 dollars) to replace it in 1872. The second capitol lasted only 64 years until it burned down in 1936. Legislators approved $25 million (or $45 million in 2012 dollars) to build the existing building.

Now, five times that amount could be spent on seismic upgrades. That doesn’t include the cost of the Oregon State Capitol Master Plan, which calls for adding wings to the building.

Warner said project costs would be covered between 2015 and 2017. His analysis makes the assumption that work would begin in 2015.

The biggest need is what is known as 鈥渂ase isolation鈥 鈥 basically a system of structural elements that lets a building’s superstructure shake independent of its substructure.

Gary Wilhelms, the committee’s chairman and a former state lawmaker, said some people have suggested that the price of seismic upgrades is so steep that lawmakers might as well build Oregon a fourth capitol building.

鈥淚f all you want is the same amount of office space then, yeah, you can do it for less money,鈥 he said. 鈥淚f you want to build a capitol like we have, it would cost a lot more money. It’s obvious that people want their capitol building.鈥

Wilhelms said the committee will likely ask legislators for $10 million to $20 million during the next session to pay for the initial engineering and architecture work before asking for the rest during the 2014 session.

By that time, Wilhelms said, the state will have the bonding authority it doesn’t have now.

鈥淭here’s a limit to how much you can bond in the state, and we’re at that lid,鈥 he said, adding that he expects that to change.

Berger said she would like to see some of Oregon’s beleaguered construction companies score a juicy state contract.

鈥淭here are an awful lot of hungry construction companies out there,鈥 she said.

Minnesota lawmakers are looking at upgrading their 107-year-old capitol for approximately $241 million. Four years ago, a $200 million renovation of Utah’s 96-year-old capitol wrapped up. Last year, workers finished a $57 million renovation of Nebraska’s 80-year-old capitol that lasted 12 years.

Wilhelms doesn’t want to see the Oregon capitol renovation take that long.

鈥淭his is a major project,鈥 he said. 鈥淚t’s really going to upset the work of the capitol for three to four years.鈥

Doing nothing is not an option, Berger said. Repair work to the rotunda almost 20 years ago was a patch job, she said.

鈥淭hat was a very temporary fix of the center of the building that didn’t really accomplish anything,鈥 Berger said. 鈥淪ometime, we have to address this issue. It’s just a fact that the building, in a good quake, is going to come down. We know that. Besides, it’s a pretty old building. Old buildings have problems. That’s all there is to it.鈥



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