Rep. Demuth: State Office Building Renovation is “Financial Insanity”

(KNSI) – The GOP leadership in St. Paul is reacting to the most recent estimate for renovating the State Office Building.

Representative Lisa Demuth of Cold Spring says in a statement that the price tag is “financial insanity.” Minnesota Management and Budget revealed in a letter to Demuth Monday that its lowest bid for financing the project was an interest rate of 4.39% from Jefferies. That would bring the total cost of construction and financing to over $729 million to be paid over 20 years.

The agency wrote to Demuth that the $35.9 million annual figure through 2044 is the highest potential amount taxpayers are on the hook for, and it could fall if refinancing is possible during the term of the loan.

GOP leadership says the cost of the State Office Building is more than the capitol restoration and Minnesota Senate Building projects combined.

Demuth says in a statement, “It did not have to be this way-there were alternative, less costly options to renovating the State Office Building. But Democrats refused to consider anything less than their extravagant plans. Minnesotans should not be on the hook for a $730 million office building for 134 politicians. This is beyond irresponsible.”

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