The construction of the new Alabama State House, spearheaded by the Retirement Systems of Alabama (RSA), is progressing on time and under budget, with completion expected by August 2026, according to officials at a meeting this morning.

Steve Timms, RSA's assistant director of real estate investments, provided an update to the Legislative Council, a group of 20 legislative leaders.

"Contracts have been awarded on about 90% of the project and that it is about $5 million under the budget of $292 million," Timms stated.

The RSA will lease the building to the Legislature through a contract that ensures an 8% return on its investment.

The second phase of the State House project will involve the demolition of the current State House and the development of a park area, along with the construction of a pavilion and an underground parking garage. The RSA is also handling the second phase of the project, which will include furnishing and equipping the new State House. Timms indicated that the goal is to have the building ready for occupancy by November 2026.

Othni Lathram, director of the Legislative Services Agency, has noted that lawmakers are expected to use the new facility by 2027.

“The cost estimate for the entire project is $400 million, including $325 million for the building,” Lathram shared. The $325 million budget also accounts for soft costs in addition to the $292 million allocated for construction.

The RSA has been involved in the development of office buildings in Montgomery’s Capitol Complex over the past several decades. These investments, along with projects like the Robert Trent Jones Golf Trail and resorts statewide, contribute to the funding for pensions for retired state employees, education employees, and local government workers.

The current State House, which was constructed in the early 1960s for the Alabama Highway Department, has been repurposed for legislative use since 1985. However, it has been plagued by issues like inadequate public access, poor accessibility for people with disabilities, flooding, and mold.

An engineering firm’s facility assessment conducted in March 2020 revealed that the eight-story, 315,000 square-foot building required $51 million in repairs and upgrades over the next decade.

Timms listed the main contractors for the new State House, noting that most of them are based in Alabama.

When Sen. Rodger Smitherman, D-Birmingham, inquired about whether any African American firms had received contracts, Timms acknowledged that none of the companies mentioned were Black-owned.

“We hope that the best person gets the job,” Timms responded. “And if it’s an African American firm, or a minority firm, whatever it is, we fully support. But we don’t chase that as a goal.”

Smitherman argued that qualified Black-owned firms should have been considered for the contracts, citing other major projects like the Protective Stadium, Legacy Arena in Birmingham, and the ongoing prison construction in Elmore County as examples where local minority businesses had been given opportunities.

“We’ve got qualified people in this state,” Smitherman emphasized. “All I’m saying is that they need to have an opportunity to participate in this project in some shape, form or fashion. Nobody is talking about compromising quality. I just want to make sure you understand that. Nobody is asking nobody to give ‘em nothing.”

Timms explained that the new six-story building would span about 460,000 square feet. He noted that the design was specifically intended to improve public access while ensuring security.

Originally reported by Mike Cason in AL.Com.