Board reviews capital projects plan as county asset valuations and deferred maintenance rise

Hubbard County staff presented a draft five-year capital projects plan at the work session, detailing sharply higher replacement valuations for county buildings, a revised debt-service schedule and a multi-year project list officials said they will refine before a public hearing this spring.

The presenter said valuations from MCIT’s 2021 to 2025 schedules show county building replacement values have nearly doubled; he cited the law enforcement building moving from roughly $15,000,000 to about $38,000,000 and the courthouse from about $13.5 million to $16.5 million. "We don't have $60,000,000 worth of buildings now. We have 100,000,000 worth of buildings," the staff member said, explaining higher replacement-cost estimates and rising construction costs.

Staff outlined major items on the draft list: an $18,000,000 placeholder for a courts/public-safety addition (described as a long-term placeholder, not yet scheduled), a $1,500,000 remodel of the old jail to improve probation and court space, and a proposed transit garage estimated at $3,800,000 for which staff plans to reapply for a MnDOT grant that could fund roughly 90–95% of the project if awarded.

Officials discussed timing and fiscal capacity. Staff said the county is carrying about $15,000,000 of related project debt into the draft plan because of prior issuances and that debt-service pressures will limit the county’s ability to take on large new projects soon. "If we look at that $18,000,000 project, I would say that that would probably be somewhere out to 2035-ish at least," a staff member said, adding that refinements from an architect and further financial modeling will guide decisions.

Other facilities items noted in the plan included smaller but immediate needs such as elevator work (the employee elevator’s guts were estimated previously at roughly $60,000) and a list of deferred maintenance categories (roofs, mechanical systems, electrical retrofits). Staff said they would present revised capital figures and a public hearing date in May or June and aim to approve the five-year plan before the next budget year.

The plan also flagged the county-owned Heritage nursing facility as a leveraged enterprise with high debt-service to operating-income ratios: staff said Heritage's finances have been strong in the past 15 months but acknowledged ongoing risks and said the county is approaching the end of a multi-year management agreement; options including continued public ownership, sale or other alternatives are being reviewed.

Staff will bring back refined cost estimates from architects (BKB/BKV noted as involved consultants) and a recommended public hearing schedule to allow the board to finalize capital priorities and any debt plans.