Minnesota requests $29.34 million to preserve veterans homes, remodel Minneapolis Building 16

For the record, John Kelly, Director of Government Affairs for the Minnesota Department of Veterans Affairs, told the Capital Investment Committee on Feb. 18, 2025, that the governor's 2025 capital budget recommends $11,940,000 in asset preservation funding for MDVA and $17,404,000 for a remodel of Building 16 at the Minneapolis Veterans Home.

Kelly said the asset preservation funding would be used for deferred maintenance at state veterans homes and cemeteries, citing work such as roofs, boilers, mechanical and electrical replacements and other critical repairs. "These projects include roofs, boilers, mechanical and electrical replacements and other critical repairs," Kelly said during his presentation.

The funding request follows similar requests in prior sessions, Kelly told the committee. He said the department oversees 71 buildings with a combined replacement value of about a half‑billion dollars and that 12 of those buildings are part of state veterans homes with 24/7 occupancy that support more than 900 residents. "This request is intended to address the backlog of our highest priority asset preservation needs," Kelly said, noting that some buildings on the Minneapolis campus are more than 100 years old.

The department listed specific line items in its asset preservation request, including a $158,000 plaster repair at the Minneapolis home and a $1,500,000 plumbing and single‑use bathroom fixture project at the Silver Bay home, which the department described as a health and safety priority.

On the Building 16 request, Kelly said Building 16 is a domiciliary residence originally built in 1973 and currently houses 50 occupants. "Pre design work had been started with some existing funds and then was paused, and this new funding would enable the agency to move to the next stages of design and complete the remodel of the space for our residents," Kelly said. He said the HVAC system in Building 16 is original to the 1973 construction and "has passed its useful life," and that additional building systems would need replacement to meet state and federal codes and Department of Health survey requirements.

Representative Sexton asked about Building 16's age and occupancy; Kelly answered that Building 16 was built in 1973 and houses 50 occupants and reiterated that the HVAC system is original to the building. Representative Lee asked whether federal funding pauses have affected veterans homes. Kelly said the U.S. Department of Veterans Affairs administers about 44 distinct federal grant programs and that, as of his testimony, the acting VA secretary had said none of those programs had been impacted by recent federal guidance. "So right now, you know, the per diems that help fund our resident care are flowing," Kelly said.

Committee members also asked whether the Building 16 project is seeking federal matching funds; Kelly said it is not. "For this project, we're simply asking for the straight bond request to cover the cost. We're not seeking matching funds from the Federal Government," he said.

Discussion: committee members asked follow‑up questions but did not take a formal vote on the departmental requests during the Feb. 18 hearing. The department presentation noted the Building 16 remodel would be the next major project after recent state investments that funded three new veterans homes, one new veterans cemetery and a remodel of a domiciliary in Hastings.

The department stood for questions after the presentation; the committee did not record a final decision on the MDVA requests at that hearing.