The Retirement Systems of Alabama (RSA) will likely soon enter into a lease agreement to build a new warehouse and office space for the ABC Board, according to RSA CEO David Bronner.

The ABC Board paused plans for a new leased warehouse and office facility in January after soliciting bids on the project in 2023. The current lease for the central office complex and main warehouse in Montgomery will expire on March 31, 2025.

Legislation sponsored by State Sen. Sam Givhan (R-Huntsville) allowing the ABC Board to own warehouses used for holding and distributing alcoholic beverages was signed into law by Gov. Kay Ivey on May 17. State law previously required the ABC Board to rent all warehouse space. ABC retail stores are by law still required to be rented.

The Alabama Legislature also recently contracted with the RSA to design and build a new State House. That project has an estimated completion date at the start of 2027.

“The State House building is going fine. That is one of the neater ones that we have done because typically I would build the building and rent it out. There they know that we’re doing all the work which we did on the other buildings but now we’re getting paid for it. We’re getting paid 8% consistently until they take us out so that was sort of my deal with the state in order to move it forward and we’ve done it a number of times,” Bronner said at an RSA board meeting on Wednesday.  “We did it with the bar association way back when the bar association couldn’t get any loans to build the little, tiny building next door, we did it. They paid us back quickly. We did it with the environmental people of the state. We’re doing it, hopefully, we’ll sign a lease in a matter of days with ABC for their new warehouse and office building (where) we’ll manage it for you. We start collecting 8% on the thing to begin with and it’s yours once you pay it off.”

The Board's current central offices and warehouse, located at 2715 Gunter Park Drive West in Montgomery, were leased in April 1982. The site has been modified multiple times to increase warehouse space, parking, and office space. The ABC Board said in August it requires "facilities designed to alleviate current constraints, that foster continued growth and support the future business needs of the state of Alabama.”

Alabama is one of 17 remaining alcoholic beverage control states in the United States.

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