The spectre of asbestos didn't scare off a Montana Senate committee from signing on to the Montana Historical Society's plan to move into the Capital Hill Mall.

There are plenty of safeguards to make sure taxpayers aren't getting a bad deal, officials told the Senate Finance and Claims Committee Tuesday morning.

House Bill 540 allows borrowing $67.5 million for a host of education and water projects, including $7.5 million for a new Helena College of Technology campus and $7.5 million for a relocated Historical Society.

"It's all about education, water, jobs, the economy and history," said Rep. Sue Dickenson, D-Great Falls.

But the Historical Society's portion was questioned by Sen. Corey Stapleton, R-Billings. He said the bill was a "slam-dunk, no-brainer" without the Historical Society's request. Stapleton said he was worried about the loss of a private business.

"It makes sense the government people would support this...but what about the people (of Helena)?" he said. "What is the rush to go forward when we could do it later?"

Ex-Historical Society employee Jon Smart called the proposal "fiscal Russian roulette." Smart said asbestos removal and earthquake potential could pose expensive problems. He also said the media hasn't thoroughly investigated the deal.

Department of Environmental Quality officials assessed the owner of the mall fines in 2000 and 20004 for not inspecting for asbestos prior to renovation. John Podolinsky, asbestos compliance officer, doesn't know if the mall contains asbestos, but construction materials used at the time the mall was built often contained asbestos.

Projects must meet rigorous standards before money is borrowed, according to Tom O'Connell, state architecture and engineering division administrator. Asbestos abatement, structural integrity review and a reappraisal would be necessary before any deal for the mall is made.

Historical Society Director Arnie Olson said the museum is "bulging at the seams." As it stands, the museum must lease space for its collections in three different buildings. And there's no parking at the present museum, which lies on Roberts Street, he said.

The $40 million mall renovation project has "tremendous" community support, said Montana History Foundation Director Amy Sullivan, listing the Helena Chamber of Commerce and Helena Visitors and Convention Bureau as backers. Some have asked why they should support the fund-raising effort if the state isn't willing to commit, she said. The mall's owner, Westfield Management of Utah, approached the Historical Society last fall about the deal.

That was enough for the majority of the committee, which voted 18-1 to move the bill to the Senate floor, where it must garner two-thirds of the vote.

"This is just not us writing a check for $7.5 million to a community for any project," said committee chairman Sen. Mike Cooney, D-Helena. "If we don't do this, we've lost the opportunity."

n There was little dissension over building projects for state colleges and two-year institutions.

Cary Hegreberg, representing the Montana Contractors' Association, said the building projects would provide work for businesses and training for sorely needed workers.

"The jobs are waiting and we can't find enough educated people," he said.

Helena College of Technology interim Dean Bob Frasier said the money would help the college consolidate from four locations to two. The school has 50 percent more students over the last 10 years, and all industries come looking for workers.

The bill also provides money for the St. Mary irrigation project, and to help resolve the Fort Belknap water compact.

Reporter Jason Mohr can be reached at 447-4075 or jason.mohr@helenair.com.