The setting was ersatz, but the sentiment seemed genuine Wednesday as Montana State Fund officials "broke ground" on a new office building and earned kudos from all corners for planning a green building in downtown Helena.

The new 110,000-square-foot building will sit at the intersection of Front Street and 14th Street, on the former site of Capital City Bowl.

Driven inside by a brief storm, the ceremony was hastily pulled together in a conference room at the Best Western. That didn't stop a lineup of executives, contractors and politicians from donning hard hats and grabbing shovels for the requisite groundbreaking pose.

"This city is going to be very proud of what we accomplish," said State Fund president and CEO Laurence Hubbard. "We're very fortunate to be located in downtown Helena. It's a diverse community, and our new home will maximize the architectural uniqueness of Helena."

State Fund officials worked closely with the city of Helena to arrange for parking next to the new building. Under the arrangement, the city will sell bonds to finance construction of a parking deck, and MSF will then lease parking 350 spots from the city for 30 years.

Jim McHugh, director of Downtown Helena Inc., praised the city's use of parking as an economic development tool.

"It's good infill," he said. "These were two under-used spaces, and now it's going to be the flagship building of the gateway to downtown Helena."

Sen. Dave Lewis, R-Helena, said the employees are the biggest asset, not only for Montana State Fund, but of the Helena community. He's pleased to see the workers' compensation insurer stay in town.

"During the Legislature we had the Butte legislative delegation circling like a bunch of ravens looking for road kill," he said. "They would like to have the kind of people who work there, the kind of people who contribute to the community."

The three-story building, designed by Mosaic of Helena and CTA, will include the latest energy-saving technology.

"It will be a technically sophisticated building and will really focus on the people," said Jeff Downhour of Mosaic. Downhour stressed the building's indoor environmental quality, including state-of-the-art air circulation systems and lots of natural light, as well as a literally green roof - filled with planters to absorb heat in the summer and mitigate stormwater runoff.

Officials have spent three years planning the new building to replace MSF's current home at the corner of Broadway and the Walking Mall. That building, completed in 1983, holds around 250 of MSF's 280 local employees, with the remainder in two other downtown offices. The new building will accommodate growth up to 350 workers.

The old building is owned by the state of Montana and is expected to be backfilled with state workers when MSF moves.

The new building will be owned by the Montana Board of Investments. The building will be financed using MSF assets held by the Board of Investments, and upon completion, MSF will lease the building from the MBOI.

Actual work will begin on Tuesday, when crews from Dick Anderson Construction will fence the lot and begin moving dirt.

"We've got to have the site work and as much concrete work as we can done before the ground freezes," said project manager Marty Schuma. "But with the schedule we've been given, we'll work through the winter."

The building is expected to be completed in the spring or summer of 2010.

Reporter John Harrington: 447-4080 or john.harrington@helenair.com