Minnesota bill proposes $4 million for Virginia’s Sixth Avenue and former steam-plant redevelopment
A Minnesota bill introduced Feb. 23, 2026, proposes a $4 million state bond-funded grant to Virginia for Sixth Avenue reconstruction and utility work tied to redevelopment of the city’s decommissioned municipal steam-plant site.
Senate File 3728 names the City of Virginia, Minnesota, as the grant recipient. The proposed funding would be administered through the commissioner of the Minnesota Department of Employment and Economic Development.
The measure has not been established as enacted funding. The cited bill record identifies it as a proposal referred to the Legislature’s Capital Investment Committee.
Road and utility work included
Under Senate File 3728, eligible work would include the design and reconstruction of Sixth Avenue. The proposal also covers relocating or upgrading municipal water, sanitary-sewer and stormwater infrastructure connected to the redevelopment site.
That means the proposal addresses both the visible roadway and the underground systems that would support future reuse of the former steam-plant property. If the measure becomes law, the grant would provide state support for transportation access, water service, sanitary sewer and stormwater management associated with the site.
For people who use Sixth Avenue, nearby businesses and property owners, the practical subject of the bill is infrastructure: the condition and design of the street, along with the municipal systems serving the area. The bill does not say that construction has begun, and it does not establish when work would start or finish.
What is known about the legislative path
Senate File 3728 was introduced on Feb. 23 and referred to the Capital Investment Committee. The proposed $4 million would come from state bond proceeds, but the record does not establish that the money was awarded, made available or included in a final enacted law.
The available packet also does not establish whether the bill was later amended or rejected. No final project construction schedule is identified.
A separate Virginia-related proposal
A separate 2026 House File 5038 document, dated April 10, 2026, addresses infrastructure and redevelopment impacts associated with conversion of Virginia’s city steam system. It references streets, sidewalks, rights-of-way, water, sewer, stormwater and contaminated-soil remediation.
House File 5038 is separate from Senate File 3728. Its references do not change the status of the proposed $4 million grant, and the packet does not identify it as an amendment or replacement for the Senate bill.
For now, the next known step for Senate File 3728 is consideration through the Capital Investment Committee. Any state funding, final project scope or construction timing would depend on subsequent legislative action and the final status of the proposal.
Sources
- Senate File 3728, Minnesota Legislature
- House File 5038, Minnesota Legislature
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