Capital Investment committee hears regional requests for schools, public safety, water, veterans and recreation

The Minnesota House Capital Investment Committee heard testimony from local officials and nonprofit leaders seeking state bonding for projects across the state, including new special-education facilities, a regional fire and ambulance facility, wastewater upgrades on the Red Lake Reservation, municipal water-system overhauls, a veterans care campus and park improvements in Hibbing. The hearing included representatives and mayors from rural towns and cities, regional water and watershed officials, tribal leaders, and advocates for veterans and special education.

Why it matters: Committee members heard a string of requests — many characterized as critical infrastructure or life-safety projects — that committee staff will need to evaluate for cost, readiness and statewide priority. Several presenters said local funding is limited and that a state match would unlock projects that sponsors say are ‘‘shovel ready’’ or essential to public health, public safety and economic development.

Northern Lights and regional special-education cooperative (House File 568) Representative Jeff Dotseth introduced House File 568, asking for $6.5 million in state bonding to build or replace facilities for two special-education cooperatives serving large rural areas in northeastern Minnesota. Barb Mackey, assistant special education director for the Northern Lights Special Education Cooperative, described two outdated and overcapacity buildings that house Northern Lights Academy, serving students with “behavioral needs, emotional and behavioral disorders, autism spectrum disorders and severe cognitive disabilities.” Mackey said the cooperative serves roughly 2,500 students across five counties and about 6,000 square miles. Tanya Severson, assistant director for the Area Special Education Cooperative (ASEC), testified the bill would provide $6.5 million to build a learning center in Crookston for students who otherwise travel more than 100 miles to the nearest Level 4 facility.

Cloquet Area Fire District regional public safety facility (House File 433) Representative Dotseth presented House File 433, a $10.5 million request to construct a new regional fire and ambulance facility for the Cloquet Area Fire District. Fire Chief Jesse Buess said the district consolidated four former departments in 2009 and now serves two cities and seven townships, routinely responding 20 to 30 miles outside its home area to provide mutual aid. Buess told the committee the district has no financial reserves and limited access to typical public safety funding, and that most of the facility funding would be local levy dollars while the district sought a state partnership to complete the project.

Magnus Veterans Foundation (House File 1689) Representative Nadeau presented a request for $900,000 to support the Magnus Veterans Foundation in Dayton. Retired Lt. Col. Sean Alderman described Magnus’s ‘‘whole person’’ care model — presenting medical, behavioral and community supports on a donated estate campus — and said the nonprofit currently serves more than 1,000 patients statewide and aims to expand capacity. Testimony included a patient account from Chris Lamott, who described receiving substance use and mental-health services at Magnus and credited the program with his recovery. Alderman said Magnus has secured significant private gifts and in-kind support and asked the committee for bonding to provide space that would allow the organization to scale services.

Red Lake Nation wastewater lagoon and infrastructure (House File 2819) Representative Duran and Secretary Sam Strong and Little Rock District representative Thomas Barrett urged support for House File 2819 to construct a wastewater stabilization pond and associated water and sewer lines for the Little Rock District on the Red Lake Reservation. Strong cited a 2023 Wilder Research estimate of homelessness and housing instability on the reservation and said existing lagoons are overloaded, blocking housing development. Barrett described individual septic systems failing and said the project is “shovel ready” with plans and environmental clearances in place.

Multiple small-city road and water projects (requests presented without committee action) Several smaller municipalities presented road, street and water projects: - Hendrum (House File 3145): Representative Steve Gander requested $2 million for road improvements to support residential growth and an industrial/commercial corridor. - Holly (House File 2267): Mayor Sean Mork requested funding for commercial and residential streets, saying the city would commit up to $2 million locally and needs state funds to finish the project. - Barnesville (House Files 799 and 800): City Administrator Jeremy Cassette testified on two projects: a reconstruction of 13th Street (about 5,200 linear feet) and system upgrades in the northwest area, noting development pressure and aging infrastructure. - Kandiyohi area water improvements (House File 2887): Representative Baker and Mayor John Lindstrand described a phased capital plan including new wells and treatment to address iron, manganese and hardness and meet regulatory standards; the request was presented as a continuation of earlier phases. - Palisade (House File 3049) and other small towns such as Egerton (House File 3137) also testified about aging systems and immediate public-health or sewer deficiencies.

Fulda large water and wastewater overhaul (House File 1237) Fulda representatives asked for $17 million in bonding toward a broader $49.5 million multi‑phase water and wastewater reconstruction that officials said is needed to replace systems installed more than 70 years ago and to address inflow/infiltration and wastewater-treatment inefficiencies. City officials warned that without state assistance utility bills could rise sharply and noted a pending large school referendum that could increase local tax pressure.

Bois de Sioux watershed and Red River flood impoundment (House File 2664) Jamie Beyer, administrator of the Bois de Sioux Watershed District, described a long-running, multi‑decade flood-impoundment project now about 60% complete and seeking $13.7 million to finish the final phase. Beyer said the impoundment will provide flood hazard mitigation, water-quality benefits and public recreation and noted multiple local and legacy funds already leveraged for the project.

Hibbing Cary Lake recreation area improvements (House File 296) Representative Igoe and Hibbing Mayor Pete Hajduk requested $5.2 million in bonding toward an approximately $10.5 million plan to upgrade campground, shoreline and trail facilities at the 145‑acre Cary Lake Recreation Area and to phase additional amenities and trail connections. The city said it has completed archeological, historical and environmental studies and committed $1 million local match for the campground phase.

Tonka Bay water‑main and neighborhood projects (House File 2802) Tonka Bay Mayor Adam Jennings asked for $5.7 million to help replace aging water and sewer mains and neighborhoods that have experienced repeated water‑main breaks. Jennings said the city has completed recent projects and that each main break costs about $15,000, stressing an outsized impact on a small municipal budget.

Alexandria-area interchange study (House File 3135) Chair Fransen and Douglas County Engineer Tim Erickson described a proposed interchange on Interstate 94 at County State Aid Highway 17 to serve growth east of Alexandria. The county seeks $1.5 million for design and preliminary engineering; estimated construction cost was discussed as roughly $5 million and the county would fund construction through a local-option sales tax, officials said.

No committee actions recorded at hearing Committee members repeatedly acknowledged time constraints and did not take formal votes on any bills during the hearing. Presenters were asked brief clarifying questions about project costs, matches and readiness, and committee chairs noted the large number of requests the committee must vet this session.

What was said and by whom (select quotes) - Barb Mackey (Assistant Special Education Director, Northern Lights Special Education Cooperative): “These students…require intensive support [and] our facility is actually in two buildings…both outdated, overcapacity, and not designed as a specialized school.” - Jesse Buess (Fire Chief, Cloquet Area Fire District): “We’re a model for what regionalization can look like…we’ve been able to reduce our fleet by five large fire vehicles and consolidate response operations.” - Lt. Col. (Ret.) Sean Alderman (Magnus Veterans Foundation): “We created the Magnus Veterans Foundation using this proven program…we provide free comprehensive health care to veterans and their families.” - Sam Strong (Secretary, Red Lake Nation): “Our wastewater systems are old and antiquated…our three lagoons are overloaded and simply cannot support any new housing or any new business development.”

Next steps and context The committee will consider these and other bonding requests in subsequent hearings and during negotiations on the capital investment package. Presenters repeatedly emphasized local funding limits, readiness (some projects said they were “shovel ready” or had completed studies), and the regional or public‑safety nature of the requests. Committee members flagged the volume of projects as a constraint and did not indicate final committee decisions during the hearing.

Ending: The hearing provided extensive testimony across many localities and program areas; committee staff and members will weigh project readiness, matching funds, statewide priorities and budget constraints as bonding deliberations continue.