The Alabama Legislative Council on Tuesday voted to sign a construction agreement with the Retirement Systems of Alabama to design and build a new State House that will serve as the meeting chambers and offices for the House and Senate and their staffs.

The building will occupy what is now a parking lot behind the current State House.

The council, made up of 20 legislators including the House speaker, Senate president pro tem, budget chairmen and others in leadership positions, voted unanimously for the agreement.

Sen. Sam Givhan, R-Huntsville, chair of the council, said he did not yet know an accurate estimated cost. Givhan said an estimate would be available during the design phase.

Givhan said the council will have the option of pulling out of the agreement up until the point when the design is approved. In that case, the council would have to reimburse the RSA for its costs, plus 8%, Givhan said.

Once the building is finished, the council will have the option of buying it or leasing it from the RSA over 25 years, Givhan said. The RSA would transfer ownership to the council after the 25 years. Or, Givhan said, the council could buy the building at any point during the 25-year lease.

Tuesday’s decision is the latest step in a process that has been in the works for at least a year and talked about for much longer.

Alabama’s current State House is a retrofitted building constructed in 1963 for the Alabama Highway Department. The Legislature moved into the building in 1985 in what was supposed to be a temporary move while the Capitol was renovated. But the move became permanent.

Lawmakers have cited a number of reasons to replace the State House, saying the building was not designed for its current use. 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. Officials have cited the limited space for public access, poor accessibility for people with disabilities, and the flooding and mold problems.

A year ago, the Legislative Council directed senior staff officials at the Legislature to explore the idea of a new State House and discuss it with the RSA.

In May, the Legislature approved a bill to give the Legislative Council control of the state-owned property where the new State House is planned.

Givhan said the track record for the RSA and CEO David Bronner was a strong selling point for the project and helped build trust among lawmakers. The RSA’s office buildings have reshaped downtown Montgomery over the last few decades. The RSA has also put its stamp on the state with resort hotels and the Robert Trent Jones Golf Course. The projects are investments to support the systems’ pension funds.

“It can’t ever be totally about personalities,” Givhan said. “RSA is bigger than David Bronner. But the fact remains that I think his track record has proven that he wants things to make a good impression for the state of Alabama. And he wants to lift up Alabama as a whole. And I have the confidence that that is exactly what he is going to do.”

House Speaker Nathaniel Ledbetter, R-Rainsville, issued a statement saying the problems with the State House include black mold, chronic flooding, outdated electrical systems and countless others.

“Just like the cost of repairing an old, outdated automobile eventually exceeds its value at some point, the Legislative Council has determined that the significant funding necessary to update the dilapidated State House would be better spent by investing in a new one,” Ledbetter said.

“Because of sky-high interest rates, entering into a lease-to-own agreement and allowing the Retirement Systems of Alabama to manage the construction component of this project offers the most common-sense fiscal option for taxpayers.

“A new State House will provide much-needed public access and adequate space for Alabama’s press—allowing more opportunities for Alabamians to attend legislative meetings, have input in important debates, and let their voices be heard on the issues that matter to them most.”

Read more: Alabama lawmakers negotiating deal on new State House