1. The Department of General Services shall enter into either 1) a construction manager at risk  agreement, or 2) an interim agreement under the Public-Private Education Facilities and Infrastructure Act of 2002 (§ 56-575.1 et seq., Code of Virginia) to provide:

a.  Architectural and engineering work, through production of final working drawings for renovation of the 9th Street Office Building and replacement of the 8th Street Office Building, as described in paragraph 2 of this item;

b. Demolition of the 8th Street Office Building.  After receipt of architectural and engineering work as specified in paragraph 1. a. of this item, a contract for demolition of the 8th Street Office Building shall be executed and demolition initiated no later than December 1, 2006.

c.  The cost of the architectural and engineering work and demolition shall not exceed $9,500,000 $12,950,000.

2. The architectural and engineering work provided for in paragraph 1 of this Item, shall provide preliminary drawings and detailed cost estimates for:

a.  Renovation and expansion of the 9th Street Office Building into an office building for continued use by the Commonwealth, and

b.  Construction of a new office building on Broad Street between 8th Street and 9th Street, which shall be used primarily as an office building for the Commonwealth, to consolidate commercially-leased space into a state-owned facility;  provided however, that this new office building shall not be used to provide permanent office or meeting space for the General Assembly.

3. The Governor shall report periodically to the Chairmen of the Senate Finance and House Appropriations Committees on the plans and status of this project for their review and comment. 

4. The appropriation contained in this item for project planning shall be used as specified above and construction funding for the project shall be considered by the General Assembly after determining that (1) project cost is reasonable; (2) the project remains a highly-ranked capital priority for the Commonwealth; and (3) the project is fully justified from a space and programmatic perspective.