VA grant program says no to funding new veterans homes in Minnesota

This architectural rendering shows the front of the proposed veterans home for Bemidji.

By Tim Engstrom
The Minnesota Legionnaire

ST. PAUL — Minnesota Department of Veterans Affairs Commissioner Larry Herke said he was disappointed his agency’s request for funding three new veterans homes didn’t make the federal Department of Veterans Affairs budget.

This is an architectural rendering of the exterior of the proposed veterans home in Preston.

The projects had all the requirements, he said. They made the deadline. They had the land, state funding and construction arrangements.

“I felt at least one would get picked,” Herke said.

The three homes — Bemidji, Montevideo, Preston — ranked 50, 51 and 52 respectively in priority by the VA in its State Home Construction Grants, which was outside of what ended up being approved. However, Herke said this means the Minnesota homes tick up 11 notches to the ranks of 39, 40 and 41.

The three projects have a total price tag of $79 million. The grant requires a 65-35 match, with state and local sources, including private donations, handling the 35 percent portion. The grant covers the 65 percent side.

The grant program awarded $122.5 million in this cycle, out of $512.6 million in requests. The VA approved 21 projects calling for upgrades and renovations across the country, but it only funded a single new construction — a 64-bed facility in Post Falls, Idaho.

“We were close, but not close enough,” Herke said.

Herke said the projects could get the green light this year, as the VA letter said the approvals could grow if more funding comes. That could include dollars from a federal stimulus package for the economic slowdown caused by the COVID-19 pandemic.

This rendering shows the front of the proposed veterans home for Montevideo.

The Minnesota Legislature allocated $33 million toward the projects, and Herke said he will leave the applications in place for the VA grant program next year, then make an adjustment request with the Legislature regarding construction cost changes. His department will retain the architect, contractor and commissioning agent and expect better news next year.

198 more beds
Bemidji: 72 beds
Montevideo: 72 beds
Preston: 54 beds

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