Many buildings in need of major repairs, with no funding available
By Phil Kabler
Staff writer
State government has an "overextended stock of real property that it cannot properly maintain or operate," resulting in ongoing issues with buildings that are in poor condition, and in some cases have become uninhabitable, a legislative audit released Sunday concludes.
That includes office buildings in Clarksburg and Fairmont that deteriorated to the point they had to be demolished and replaced by new construction, at a cost of more than $42 million, the audit states.
The audit faults the Department of Administration for going on a buying spree - buying a total of 18 properties since 2000 - including many older buildings that are in need of repair. The revenue comes from state Lottery fund transfers, a funding source that has been declining since a peak year of 2008.
Because of that, along with artificially low rental charges, the department has many buildings in need of major repairs or renovations, with no funding available to make those repairs, the audit notes.
"The number of properties has become overextended, and as a result, the agency cannot maintain the properties properly," John Sylvia, director of the legislative Performance Evaluation and Research Division, said Sunday.
Many of those buildings were purchased without structural engineering inspections that would have identified problems that will require costly repairs, the audit found.
Locally, that includes the Greenbrooke building and 1409 Greenbrier Street, both of which need roof replacements, and One Davis Square, which needs to have its HVAC system replaced at a cost of $3.6 million.
Sylvia noted that because the Greenbrooke building, in Charleston's East End, was purchased through a bond issue, the state will ultimately pay $18 million for an inadequate building.
The division has a history of allowing buildings to deteriorate to the point where buildings or parts of buildings have become uninhabitable or have been vacated, including the Clarksburg and Fairmont office buildings, as well as Capitol complex Building 3, which was vacant for about 4 1/2 years before a $34 million renovation began this summer, according to the audit.
Portions of Capitol complex Building 4 have either been vacated by order of the Fire Marshal or are being used for storage, the audit found.
The audit calls for the Legislature to impose a moratorium to prevent the department from buying any additional real estate costing $1 million or more.
Acting Administration Secretary Jason Pizatella told legislators Sunday he agrees with the audit, and noted that most of the property purchases took place prior to 2010, during the infusion of Lottery funds.
He said at its peak, the capital improvements fund received more than $80 million in two years.
"That's money we wish we had back today," he said.
"The Department of Administration has no plans to engage in any further purchases of real property at the present time," he said.
Reach Phil Kabler at philk@wvgazette.com, 304-348-1220, or follow @PhilKabler on Twitter.