Annex renovation could cost Gonzales County in excess of $11 million

A preliminary project budget breakdown indicates renovating the Gonzales County Courthouse Annex on Sarah DeWitt Drive could cost the county in excess of $11 million, or $439 per square foot, according to a report delivered Monday, Dec. 16, by a project management company.

The figures presented by John Duke, a team lead at CPM Texas, would have the county spending a little more than $8 million, or about $318 per square foot, on actual construction costs, with the remaining $3 million (about $121 per square foot) divided into professional services, technology allowances, regulatory and permitting fees and project contingencies.

“I did want to point out just to keep in mind this is a preliminary projection and will likely evolve as we move through the reconstruction phase and we gain additional insights,” Duke said. “It does provide a realistic sense of the project scale complexity based on the information we have today.

“This budget was developed based on the review of the current project documents and historical cost data. It provides a projection of cost to deliver a functional facility that meets the county's needs. It's important to note that the construction estimate is derived from historical data rather than direct market feedback, so adjustments may be necessary as the project progresses.”

CPM, which Duke said is a “project management and owners representation firm,” was brought in by Gonzales County commissioners at the recommendation of O’Connell Architecture LLC, which noted the company had been invaluable in helping Mason County build a new courthouse after losing its original to a fire in February 2021.

Duke said he expects pre-construction work to continue through mid-April 2025. This includes completing design documents, which are currently about 95 percent complete, as well as permitting and then “selecting a construction manager at risk for a competitive process.”

“We are recommending a GMP, or guaranteed maximum price approach, or construction manager risk approach, for this so that we can work with a contractor in a pre-construction capacity to help identify ways to save money and hopefully reduce the budget that I showed you before,” Duke said.

Selective demolition would actually begin as early as the end of February, which Duke noted would “still be during the pre-construction phase for the overall project, so that there's going to be a significant savings if the county hired a demolition contractor directly, rather than going through a contractor and having their markups on top of it.”

Duke said the construction phase would begin towards the end of April with substantial completion achieved in March 2026.

“These are things that we will work with the contractor to refine,” Duke said. “It could be this is too long, but this is an estimate that we put together based on our experience. The goal is to open the annex for business by April 2026, so about a year after we really get started.”

Duke said he knows the completion of the annex is necessary so the county can look at restoring the Courthouse with a possible Texas Historic Courthouse Preservation Program grant in late 2026.

“I believe you have like fall time frame in 2026 when you need to be out of (the Courthouse) and over (at the annex),” Duke said. “April 2026 sounds like a long ways away, but it's really not so, but that's the ultimate goal — to get out of here so you can do this renovation.”

Duke did have commissioners take action on awarding a $5,350 bid to Clean Environments to perform a hazardous material and environmental assessment of the annex, which he said is “essential for identifying and addressing any potential environmental hazards such as asbestos and lead paint, which ultimately ensures compliance and safety regulations.”

Clean Environments was chosen over bids by ECS and Terracon as Duke said they offered “a comprehensive scope and services, including asbestos and lead testing at competitive price. This recommendation aligns with the project goals of thorough due diligence and maintaining progress toward the construction phase.”

Precinct 2 Commissioner Donnie Brzozowski asked Duke what the cost would be for a new Annex building built from the ground up, rather than renovating the existing structure, which would be taken down to the structural support walls and roof.

Duke said the estimated cost for a building shell and core is about $190 per square foot, while the selective demolition for the county on the existing annex building would be about $85 to $90 per square foot with all contingencies added.

“You are saving money over a brand new scrape and rebuild, and that's based on what we know about the structure,” Duke said, indicating the price difference between a renovation and a new building could be $2 million or more.

“I think we need to look into what building a new building would cost and compare it,” Brzozowski said. “We may want to put a two-story building there, we have two stories and there would be room for more people. I want to be able to look at all our options.”

“I'd like to explore what you're talking about and come up with a figure, you know, where we can double our square footage if we go two stories,” Precinct 3 Commissioner Kevin La Fleur said. “I know it's always cheaper to build up.”

Duke agreed to bring cost estimates on building a new building, including the potential of one that is two stories tall, at the court’s Jan. 13 meeting.

Commissioners have not indicated yet how they will pay for renovation of the annex or construction of a new building.

The county does not have a debt service tax rate and had a projected total fund balance of $20,472,594.18 as of Sept. 30, which includes $9.5 million in the general fund and $9.5 million across the various road and bridge funds.

The Government Finance Officers Association recommends governments maintain an unrestricted budgetary fund balance equal to no less than two months of regular general fund operating expenditures. For Gonzales County, which has fiscal year 2025 budget of $19,126,793.66, that would be about $3,187,798.94.