Houston County halts public health building work after federal grant funding is rescinded
Get AI-powered insights, summaries, and transcripts
Sign Up Free
Summary
County staff told commissioners a federal COVID-era grant routed through the Minnesota Department of Health was rescinded, pausing work on a Community Services building project and prompting staff to seek which expenses can be reimbursed by a March 24 cutoff.
Houston County commissioners were told April 14 that federal grant funding for a public health building project was rescinded and work on the Community Services building has been paused.
County staff presented a spreadsheet summarizing project contracts and expenses and said the Minnesota Department of Health (MDH) told the county to stop work and payments tied to the grant. "The grant funding for the building project ... was rescinded at the Federal Government and that money flowed through the Minnesota Department of Health and so they informed us that we needed to stop all work and all payments for that grant," a county staff member said.
The county reported contractors on the project include CDG (architecture) and Weezer Brothers (general contractor). Staff said CDG invoiced MDH for earlier work and the county expects to submit additional quarterly invoices. Weezer Brothers has reported $13,550 in expenses so far, primarily for flooring and cabinetry, and staff told the board they have asked contractors to document all expenses so the county can submit allowable costs to MDH by April 4 for reimbursement of expenses incurred through March 24.
Why it matters: the grant money — initially provided after the COVID-19 vaccine push — was intended to cover a significant portion of the project. Staff said total available grant funds reported on December 31 were about $330,188. Commissioners asked whether other CDC or state allocations could be repurposed; staff said some smaller CDC infrastructure funds remain but may not be allowable for construction without MDH confirmation.
Discussion points included whether to accept materials Weezer has already purchased, whether the county could hire a different contractor to install those materials if reimbursed, and whether contracts must be rebid if the funding source changes. A county official said the project used federal prevailing wage requirements because it relied on federal grant funds, and that could affect procurement and cost.
Commissioners asked staff to obtain a detailed invoice and materials inventory from Weezer Brothers, confirm whether costs submitted by the end-of-day April 4 would be honored by MDH, ask contractors about restocking or cancellation penalties, and pursue other revenue sources. Staff said they would return with updated information and a list of any recoverable expenses.
The board did not take a formal vote on the project at the meeting; the item was discussed and staff were directed to gather invoices, inventory data and potential funding options for a future meeting.