The new Alabama State House, being built by the Retirement Systems of Alabama, is expected to be finished in August 2026, lawmakers heard at a meeting this morning.

Steve Timms, assistant director of real estate investments for the RSA, gave an update to the Legislative Council, a panel of 20 legislative leaders.

Timms said contracts have been awarded on about 90% of the project and that it is about $5 million under the budget of $292 million.

The RSA will lease the building to the Legislature under a contract that calls for the RSA to earn an 8% return on its investment.

A second phase of the State House project will include demolition of the existing State House and development of a park area, along with a pavilion and underground parking deck.

The RSA will also do the second phase. The RSA will also handle furnishing and equipment for the new State House. Timms said the goal is to have the building ready for occupancy by November 2026.

Othni Lathram, director of the Legislative Services Agency, has said the goal is for lawmakers to use the new building in 2027.

Lathram said the cost estimate for the entire project is $400 million, including $325 million for the building.

The RSA has built office buildings in Montgomery’s capitol complex over the last several decades.

The investments, like the Robert Trent Jones Golf Trail and resort hotels around the state, help support the funds that pay pensions for retired state employees, education employees, and employees of local governments.

The current State House was built in the early 1960s for the Alabama Highway Department. The Legislature has used the retrofitted building for its meeting chambers and offices since 1985.

Problems cited with the building include limited space for public access, poor accessibility for people with disabilities, flooding and mold.

A facility assessment conducted by an engineering firm in March 2020 found that the eight-story, 315,000 square foot building needed $51 million in repairs, renovations and replacements over 10 years.

Timms named the companies that have the main contracts for the new State House and said most are Alabama companies.

Sen. Rodger Smitherman, D-Birmingham, asked if any African American firms had received contracts. Smitherman said he knew that none of the companies Timms mentioned were.

Timms said the RSA did not make any special effort to include Black-owned firms in its projects.

“We hope that the best person gets the job,” Timms said. “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 said there were qualified Black-owned firms that should have been considered. He said that is what happened with other major projects like the Protective Stadium and Legacy Arena in Birmingham and the prison under construction in Elmore County.

“We’ve got qualified people in this state,” Smitherman said. “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 said the six-story building will be about 460,000 square feet. He said the design is intended for access to the public and for security.

The design includes six columns and a dome to blend in with the other buildings in the Capitol complex. Slides showed the layout floor-by-floor, including the meeting chambers for the House and Senate on the fifth level and the galleries for the public on the sixth.