With funding infusion on tap, multistory office building next to Capitol set to move forward

SANTA FE — After years of delays and false starts, plans to build a new three-story executive office building next to the state Capitol are back on.

Lawmakers appropriated $95 million for the on-again, off-again project as part of a $1.2 billion capital outlay bill that's awaiting final approval on Gov. Michelle Lujan Grisham's desk.

The bill, Senate Bill 240, passed in the final days of this year's 30-day legislative session, which ended Thursday. The governor has until March 11 to act on the measure, which is subject to line-item veto.

If the appropriation survives the governor's veto pen, the design phase of the project could be finished by October and bids for construction could be issued by the end of this year, state General Services Department spokesman Joe Vigil said.

He also said the current plans for the office building involve a 165,000-square foot structure with an underground parking structure featuring 585 spaces.

Backers of the plan have insisted the construction of a new downtown Santa Fe office complex would save money in the long run, by allowing the state to reduce its reliance on leasing office space and consolidate government agencies in a more centralized location.

Currently, the state pays millions of dollars per year for its more than 300 active leases around the state, according to General Services Department data.

House Speaker Javier Martínez, D-Albuquerque, voiced support for the project on Monday, describing it as necessary to alleviate a current space crunch at the Roundhouse.

"As we continue to modernize our Legislature, office space is becoming increasingly important so we can appropriately build the capacity necessary to continue delivering for New Mexicans today and meet our needs in the years to come," Martínez told the Journal.

Specifically, the new office building would house six different state government agencies, Vigil said. Some of those agencies are currently based at the state Capitol complex, while others are spread across Santa Fe in leased buildings.

The agencies currently slated to be moved to the new executive office building include the Secretary of State's Office, the State Treasurer's Office, the State Auditor's Office and the Lieutenant Governor's Office. Two Cabinet-level state agencies, the Department of Finance and Administration and the Higher Education Department, would also be relocated to the new building, Vigil said.

The idea for a new state government building near the Capitol was first floated nearly 20 years ago, with the project's initial price tag estimated to be $22 million. But the project ended up stalling due to concerns about parking and compliance with Santa Fe building ordinances.

Those concerns have persisted in recent years, with groups like the Old Santa Fe Association opposing plans to demolish four historic casitas built around 1930 to make way for the new office building. The group has called for the casitas to be repurposed, perhaps as affordable housing, while describing the proposed new structure as "bureaucratic bloat" on its website.

In addition, a 2011 archaeological review of the area commissioned by the New Mexico Office of Cultural Affairs unearthed more than 1,500 artifacts. But no prehistoric or Spanish colonial deposits were uncovered, and no human remains were found.

After initially opposing the idea, a Santa Fe historic review commission voted in December to allow the demolition of the four historic casitas. In addition to the casitas, the existing Concha Ortiz y Pino Building, a 31,000-square-foot structure, would also have to be razed to make room for the new building.

With historical concerns no longer blocking the project, funding has been the last obstacle stopping it from moving forward. State-level approval was granted in 2021 by the Capitol Building Planning Commission, a group made up of legislators, Cabinet secretaries and elected officials.

In addition to the $95 million earmarked by lawmakers in this year's capital outlay bill, a total of $85 million was previously appropriated for the project in 2022.

While a final design for the new building has not yet been selected, former Legislative Council Services Director Raúl Burciaga said in a 2024 memo it would be built to match adjacent state buildings and would allow for easy pedestrian access to the Roundhouse, located just to the east.

"The goal is to achieve harmony with other buildings with the use of similar materials, color, proportions, and details," Buricaga said at the time.

Dan Boyd covers state government and politics for the Journal in Santa Fe. Follow him on X at @DanBoydNM or reach him via email at dboyd@abqjournal.com.