Tenant dispute delays award of Capitol renovation contract

State officials charged with overseeing the $272.7 million State Capitol renovation are warning that the projects cost could go up as a result of a dispute over how space will be allocated in the renovated building.

The Capitol Preservation Commission was supposed to approve a major work package for the project Wednesday, but it delayed action because theres no agreement in place yet for space allocation.

A Thursday deadline for approving the work package loomed before the commission. The package, which includes mechanical and electrical work and finishes, needs to be approved to keep the overall project on track.

Delays could add up to $680,000 a month to the projects cost, the commission said Wednesday.

The commission agreed to meet again Jan. 22 to consider approval of the work package. The hope is that the tenants will have reached a deal by that time, so the project can stay on schedule and avoid cost overruns.

The main tenants the House, the Senate, and the offices of the governor, the attorney general and the chief justice of the Minnesota Supreme Court have to sign off on the space plans before the work package can be approved.

Gov. Mark Dayton, who chairs the commission, declined to go into specifics about whats holding up a deal. But he said progress has been made and he expressed confidence that a deal will be in place by Thursday, Jan. 22.

We know we have to get it done by next Thursday, Dayton said after Wednesdays meeting. The contractor [JE Dunn] just told me that they can live with that. I can never give a 100 percent guarantee, but I will give a 99 percent guarantee that we will have this project approved next Thursday.

At issue is work package 4, which includes mechanical and electrical work such as fire-protection systems, light fixtures, historic lighting restoration, data and fiber-optic cabling, and distribution of mechanical systems from the vertical shafts.

It also includes finishes such as interior stone repair, restoration of wood doors and historic hardware, restoration of wood finishes, finish carpentry, casework and millwork, ceramic tile floors, bathroom finishes, painting, flooring and window treatments.

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Tenant dispute delays award of Capitol renovation contract