Senate File 1704 would raise armory commission bonding cap to cover rising construction costs

Senator Putnam introduced Senate File 1704 on Feb. 24, asking the subcommittee to increase the Minnesota State Armory Building Commission's maximum bonded indebtedness from $15 million to $45 million to reflect higher construction costs.

Major General Sean Manky, Adjutant General of the Minnesota National Guard, testified that the department currently has debt on the Armory Bonding Commission Fund of about $45.1 million and about $9.9 million of remaining capacity under the current cap. He and Don Kerr, executive director of the Department of Military Affairs, said the increased authority would allow the state to meet required state match on new readiness centers without rendering projects ineligible for federal funds because of insufficient state bonding capacity.

Manky provided comparative per‑square‑foot figures from past projects to illustrate rising construction costs: the Arden Hills readiness center (built in 2013) cost about $267 per square foot; a more recent readiness center in New Ulm is costing roughly $438 per square foot. He said estimates for a potential Anoka readiness center indicate much higher future construction costs and that the current $15 million cap would not be sufficient to complete that project or to secure federal funding eligibility.

Kerr added that in prior projects the department was able to avoid state funding by qualifying for 100% federal funding under specific rules, but those opportunities have largely been exhausted; he said increasing the bonding authority is necessary to continue construction plans.

The committee laid Senate File 1704 over for possible inclusion; no roll-call vote was recorded.