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Minnesota Veterans Affairs seeks nearly $30 million for facility preservation and Minneapolis domiciliary remodel
Summary
John Kelly, director of government affairs for the Minnesota Department of Veterans Affairs, told the Senate Capital Investment Committee on Feb. 11 that the department’s 2025 capital requests include $11.94 million for asset preservation and $17.404 million to remodel Building 16 on the Minneapolis Veterans Home campus.
John Kelly, director of government affairs for the Minnesota Department of Veterans Affairs, told the Senate Capital Investment Committee on Feb. 11 that the department’s 2025 capital requests include $11.94 million for asset preservation at Veterans Homes and cemeteries and $17.404 million to fully fund a remodel of Building 16 on the Minnesota Veterans Home — Minneapolis campus.
Kelly said the asset preservation funds would be used for a range of repairs across the department’s portfolio, including roof, chiller, boiler, elevator, window and mechanical work. He told the committee the agency currently has more than $116 million in deferred maintenance across its facilities and approximately $56.8 million of that is rated in “crisis or poor” condition.
On Building 16, the department described recurring HVAC failures, plumbing and wastewater line problems, and other systems near or past useful life. "This building has major HVAC issues," Kelly said, and described staff and resident impacts, including a recent occasion when temperatures fell to about 55 degrees in occupied spaces.
Committee members asked about the potential for reimbursement from the U.S. Department of Veterans Affairs. Ben Johnson, deputy commissioner for program and services at the Minnesota Department of Veterans Affairs, explained that projects with costs over $400,000 can be submitted to the federal VA for reimbursement under VA construction grant programs. He cautioned the committee that such federal reimbursement typically does not cover the full cost and that reimbursements are reviewed case by case. The department said it is still awaiting final tranches of reimbursement for prior new‑home projects.
Committee questions probed whether the governor’s recommended budget included the full $17.4 million for Building 16; witnesses confirmed the governor’s recommendation does include the full amount. Witnesses also discussed bond financing mechanics and whether federal reimbursements flow back to repay bonds; the department said federal reimbursement typically goes to the state and may be available for debt service but staff would provide additional detail on mechanics.
No formal committee action or vote was recorded at the hearing.
