Greg Kurzan, director of environmental services at the Vermont Veterans Home, told the Senate Committee on Institutions that construction plans for a complete demolition and rebuild of the facility’s A wing were stopped and re-scoped after inflation and higher-than-expected estimates pushed costs far above the original plan.

Kurzan said earlier planning and site work — including borings and design work — were completed but that the price tag rose by "millions, millions of dollars," and the project had to be paused for re-submission and new funding. When asked whether the $1,500,000 appropriated in the last biennium for the A wing remains designated for design work, Kurzan said, "So far, yes. The work, work up to date." Committee members asked whether any of that $1.5 million would be available for construction; Kurzan said he hoped the money could be reallocated later but that he did not handle the money side of the project.

Kurzan described the condition of the wing: cast-iron plumbing embedded in concrete floors has deteriorated, leaving the plumbing unusable, floors required mold remediation and sealing, and the wing remains winterized and minimally heated while plans are on hold. He said a planned 30-bed memory-care unit had been the previous rebuild design but that the approach is being reexamined in light of cost increases.

Committee members also questioned two other projects in the home’s capital request: a heat-pump replacement and a laundry-room addition. Kurzan recounted earlier cost estimates (about $730,000 for heat pumps and $420,000 for the laundry addition in an earlier plan) and said reductions in the house draft left each project with substantially less funding (the transcript recorded suggested reductions to about $410,000–$420,000 for combined items). Kurzan said completing the two projects on the reduced amounts would be "pretty tight" and that the home expects to pursue reimbursement from the U.S. Department of Veterans Affairs where eligible. Committee members asked whether the home could proceed with reduced funding and then seek VA reimbursement; Kurzan said the home hoped that would be possible but emphasized the tight margins.

Kurzan also described an independent but urgent sprinkler-system replacement need for other wings (east, B and C wings). A contractor provided a quote of about $248,000 to replace sprinkler heads and refill the system with the EPA-standard glycol and to perform required inspections and certifications; Kurzan said many sprinkler heads were approaching 50 years old and that the replacement work was included in the home’s draft capital request.

Committee members asked about the relationship of these projects to an incubator-farm project being discussed later in the hearing; Kurzan said staff were aware of the incubator and could answer questions as needed. No vote was taken. Kurzan and committee staff agreed to review project budgets and to return to the committee with follow-up as staff confirm line items and reimbursement expectations with the home and with the VA.

Ending: Kurzan said the A wing rebuild is paused while the home re-submits plans and seeks appropriate funding; the committee asked staff to confirm how the prior $1.5 million appropriation has been spent and whether items in the house draft need to be restored or clarified.