WE'RE GOING TO NEED YOU DURING THIS THING.

THANKS, PROFESSOR.

>> SURE.

>> ERIC: THE GOVERNOR'S RESIDENCE HAS LONG BEEN A SOURCE OF CONTROVERSY IN THE STATE.

VARIOUS GOVERNORS HAVE AND HAVE NOT WANTED TO RENOVATE.

TURNS OUT THE CURRENT ADMINISTRATION HAS MONEY SET ASIDE AND THE FIRST FAMILY IS MOVING OUT FOR OVER A YEAR.

THE EXPENSE OF THE RENOVATION AND TEMPORARY RESIDENCE ARE RAISING MANY QUESTIONS AND CONCERNS THAT OUR MARY LAHAMMER PUTS INTO CONTEXT.

>> THIS IS ENTIRELY PUBLIC.

THERE'S NO TIME THAT E SPEND DOWN HERE AT ALL.

>> Mary: 30 YEARS AGO, THE PERPICHES TOOK THE PRESS ON A FABLED TOUR OF THE LEAKING MANSION, APPEALING FOR ITS RESTORATION.

>> THIS IS AN EXAMPLE OF THE CONDITION WHEN WE MOVED IN.

>> Mary: 20 YEARS AGO, THE GOVERNOR'S RESIDENCE WAS PACKED UP AND THE VENTURAS MOVED OUT WHEN TOUGH TIMES HIT THE STATE ECONOMY.

>> IT'S HARD TO JUSTIFY WHEN THAT MANY PEOPLE ARE HURTING SAYING, YES, YES, YES, KEEP THE RESIDENCE OPEN.

>> Mary: FIVE YEARS AGO, FIRST LADY WEN WALZ SHOWED US HER REDECORATED SPACE THE FAMILY AND PETS WERE ENJOYING.

>> I CREATED IT AS A GREAT WORK SPACE.

>> IT'S REALLY BEEN IN THE WORKS FOR OVER 20 YEARS, MARY, THAT GOVERNOR VENTURA ACTUALLY VETOED A BILL IN 2001 THAT WOULD HAVE COMPLETED THE RENOVATION.

SO IT'S BEEN AN ONGOING NEED.

IT'S A BUILDING THAT'S ON THE NATIONAL REGISTER, IT'S OVER 110 YEARS OLD.

>> I DON'T NECESSARILY QUESTION THAT WE HAVE TO TAKE CARE OF THIS GOVERNOR'S RESIDENCE, I HAVE SOME QUESTION ABOUT WHETHER THIS SHOULD BE THE GOVERNOR'S RESIDENCE OR WHETHER WE SHOULD MOVE IT TO ANOTHER STATE-OWNED HOME.

I'VE ACTUALLY IN THE PAST ADVOCATED THAT WE MOVE THE GOVERNOR'S RESIDENCE TO A JAMES J. HILL HOUSE.

I WILL PROBABLY DRAFT A BILL.

>> Mary: DAUDT WAS A LEADER IN THE RENOVATION WHICH HE SUPPORTED AND SERVED ON THE RESIDENT'S COUNCIL BUT HE HAS A LOT OF QUESTIONS ABOUT THIS NEW RENOVATION.

>> THIS IS WHAT HAPPENS WHEN YOU HAVE SINGLE-PARTY CONTROL.

IT CAUGHT ME REALLY OFF GUARD.

RENOVATING A GOVERNOR'S RESIDENCE, IT NEEDS EXTRA SCRUTINY AND EXTRA TRANSPARENCY.

AND I DON'T THINK IT'S RECEIVED THAT.

IT CAME OUT OF NOWHERE.

>> MECHANICAL, ELECTRICAL, PLUMBING, BUILDING FOUNDATIONS, LEAKING, WINDOWS ARE LEAKING.

STRUCTURAL ISSUES.

PLASTER THAT'S FALLING DOWN.

IT'S BEYOND THE POINT OF JUST THE PIECEMEAL.

WE DO OVER 100 SERVICE CALLS A YEAR FOR MAINTENANCE ITEMS OUT THERE.

SO OUR FACILITY STAFF RUNS OUT THERE WHEN THE HEATING STOPS WORKING, WHEN THERE'S A PLUMBING LEAK.

>> I THINK WE NEED TO KNOW WHO IS THE DRIVER OF THIS AND IS IT ADMIN OR WAS IT THE GOVERNOR OR, YOU KNOW, HIS FAMILY?

MY GUESS IS, IF YOU SOLD THIS HOUSE, T WOULDN'T SELL FOR $6 MILLION.

AND NOW WE'RE GOING TO PUT $6 MILLION OF RENOVATIONS INTO IT.

I THINK YOU HAVE TO ASK YOURSELF, WHAT'S APPROPRIATE AND WHAT'S THE LONG-TERM PLAN HERE?

WHERE'S THE $6 MILLION COMING FROM?

>> OBVIOUSLY THE LONGER IT'S BEEN DELAYED, THE MORE IT'S COST.

NOT JUST FOR THE FIRST FAMILY, THERE'S LOTS OF VISITORS AND EVENTS THAT HAPPEN AT THE RESIDENCE.

AND IT'S IMPORTANT TO AKE SURE IT'S WELL TAKEN CARE OF.

WE'RE IN THE DESIGN DEVELOPMENT PHASE.

FOR THE BUILDINGS ON THE CAMPUS, WE HAVE -- WE COLLECT RENT AND WE HAVE APPROPRIATIONS ON A PORTION OF THAT IS SET ASIDE IN WHAT WE CALL A FACILITIES REPAIR AND REPLACEMENT ACCOUNT.

AND, SO, IT'S THAT FUNDING SOURCE.

>> Mary: HERE IN THE TATE CAPITOL, THERE'S ACTUALLY A RENOVATED SPACE CALLED THE HISTORIC GOVERNOR'S DINING ROOM.

THAT REPRESENTATIVE DAUDT THINKS THE CURRENT GOVERNOR SHOULD BE USING.

>> WHAT IS THIS?

RIGHT?

WE JUST SPENT $300 MILLION RENOVATING OUR STATE CAPITOL.

THIS IS THE GOVERNOR'S PUBLIC SPACE.

>> Mary: FOR $17,000 A MONTH, DFLer WALZ IS RENTING THE LAKE HOME OF FORMER REPUBLICAN U.S. SENATE CANDIDATE MIKE McFADDEN, WHICH WE SAT DOWN INSIDE.

>> YOU KNOW, THE MEDIAN RENT IN THE STATE OF MINNESOTA RIGHT NOW I THINK IS $1,600 A MONTH.

AND HE'S GOING TO DO SOMETHING MORE THAN TEN TIMES GREATER THAT.

GREATER THAN THAT.

I THINK THAT'S OUT OF TOUCH AND REALLY TONE DEAF WITH WHERE OUR ECONOMY IS AND WHERE MINNESOTA FAMILIES ARE RIGHT NOW.

>> Mary: IT DOES SEEM LIKE A DONE DEAL.

>> IT DOES SEEM LIKE THAT.

UNFORTUNATELY.

BUT I THINK WE CAN RAISE SOME AWARENESS TO THIS AND PUT SOME ADDITIONAL SCRUTINY ON, HOW DID THIS COME ABOUT, WHO MADE THE DECISION, WHERE DID THE COME MONEY FROM AND WHAT ARE THE SCOPE OF THE RENOVATIONS BEING DONE TO THE RESIDENCE.

I THINK MINNESOTANS NEED TO KNOW THAT.

>> IT'S PART OF THE LARGER CONTEXT OF PART OF THIS OVERALL PROJECT AND DELAYING THAT PROJECT ADDS SIGNIFICANT COST TO IT.

AND WE ADVERTISED EXTENSIVELY AND WENT OUT TO OUR REAL ESTATE NETWORK, BVIOUSLY LOOKING FOR A ERY UNIQUE PROPERTY WITH OBVIOUSLY SIGNIFICANT SECURITY.

WE DID A BROAD SEARCH AND SECURITY BY FAR WAS THE NUMBER ONE CHALLENGE.

>> Mary: THE GOVERNOR HAS SAID HE TRUSTS HIS ADMINISTRATION ON THESE DECISIONS AND WELCOMES LEGISLATIVE OVERSIGHT BUT HIS OPPOSITION SAYS THIS PLUS A $500 MILLION STATE OFFICE BUILDING RENOVATION COULD BECOME CAMPAIGN FODDER.

>> TO PUT INTO PERSPECTIVE, I THINK REPUBLICANS WON AN ELECTION BECAUSE DEMOCRATS REMODELED THE SENATE OFFICE BUILDING FOR THE TUNE OF ABOUT $90 MILLION.

AND NOW THIS NEW STATE OFFICE BUILDING IS GOING TO COST MORE THAN FIVE TIMES THAT MUCH.

I WILL SAY THAT IN MY HISTORY OF RUNNING ELECTIONS IN THIS STATE, AND I'VE DONE IT FOR A LONG TIME, THAT THE BIGGEST ISSUES THAT SEEM TO REALLY RESONATE WITH OR FRUSTRATE MINNESOTANS ARE ISSUES OF WASTE, FRAUD AND ABUSE OR THE SORT OF SELF-DEALING.

BUILDING FANCY OFFICE BUILDINGS FOR YOURSELF OR RENTING A BIG MANSION FOR YOURSELF.

>> Mary: WHAT ABOUT THE POLITICAL ISSUE?

>> FROM AN ADMINISTRATION STANDPOINT, WE'RE IN THAT NONPOLITICAL ARENA.

OUR RESPONSIBILITY IS