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Business North - The Daily Briefing - Business Newspaper Online
Duluth receives $6.8 million in stimulus funds for clean water, WLSSD $2.4 million
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6/18/2009 |
The Minnesota Public Facilities Authority (PFA) has awarded $37.2 million for projects that will improve municipal infrastructure for drinking water and wastewater treatment throughout Minnesota.
The awards are the first to include funds from the American Recovery and Reinvestment Act, the federal spending bill designed to stimulate the U.S. economy through infrastructure investments and other efforts. The PFA received $107 million in new funding under the measure. The remaining funds will be distributed within the next several weeks.
"Loans and grants from the Public Facilities Authority are crucial for helping Minnesota communities finance improvements to their wastewater and drinking water infrastructure," said Dan McElroy, who chairs the PFA and is commissioner of the Minnesota Department of Employment and Economic Development. "The funds will promote economic recovery and make infrastructure investments that will generate long-term economic benefits to these communities."
The funding was awarded for projects in Howard Lake, Montevideo, New York Mills, Duluth, St. Hilaire, Verndale, Dassel and the Western Lake Superior Sanitary District, which covers several communities in the Duluth region.
Paul Eger, commissioner of the Minnesota Pollution Control Agency, joined the PFA in announcing the loans. "This additional federal funding will help us expand a program that is vitally important to Minnesota communities and our state's water quality" said Commissioner Eger. "The money will help cities address growing wastewater treatment infrastructure needs, improving our state¹s lakes and rivers."
The funding also will help stimulate local economies, according to Joe LaTour, whose Maple Lake-based LaTour Construction Inc. will work on the Howard Lake project. "Getting the job in Howard Lake enabled us to get some of our employees back to work and off unemployment," he said. "Our industry needs more projects like this to happen."
The funding was awarded under the PFA¹s Clean Water Revolving Fund and the Drinking Water Revolving Fund. According to McElroy, the PFA will fund over $200 million in infrastructure improvements this summer by combining the federal stimulus money with other funds generated from the PFA selling its AAA rated bonds. The financing is provided to cities through a combination of low-interest loans and principal forgiveness that does not have to be repaid.
The following is a project and funding breakdown:
Clean Water Revolving Fund Projects ($35.6 million)
Duluth, $6.8 million
The funding will pay for building a wastewater overflow storage tank that can store up to 3 million gallons of wastewater under certain conditions. The financing package includes 2005 state bond funds of $1.85 million, a loan of $796,835 at 2 percent over 15 years and $4.2 million in principal forgiveness.
Western Lake Superior Sanitary District, $2.4 million
A wastewater pump station will be rehabilitated. The package includes a loan of $1.9 million at 2.7 percent over 15 years and $472,385 in principal forgiveness. The district provides services to the northeastern Minnesota communities of Duluth, Cloquet, Hermantown, Proctor, Carlton, Scanlon, Thomson, Wrenshall, Silver Brook, Twin Lake, Canosia, Grand Lake, Lakewood, Midway, Rice Lake and Solway.
Montevideo, $14.9 million
Funding will be used to finance major modifications and rehabilitation of the city's wastewater treatment plant. The funding package includes a loan of $10.4 million at 2.9 percent over 20 years and $4.5 million in principal forgiveness.
Howard Lake, $10 million
The funding will be spent on a lift station and forcemain to transfer wastewater from Howard Lake to the new Annandale/Maple Lake/Howard Lake wastewater treatment plant. The package includes a $4 million loan at 1 percent over 20 years and $6 million in principal forgiveness.
New York Mills, $813,335
Improvements will be made to the city¹s collection system, including lift station repair, gravity sewer line rehabilitation and manhole replacements. The funding includes a loan of $130,134 at 1 percent over 20 years and $683,201 in principal forgiveness.
Verndale, $402,259
Sections of the city¹s sanitary sewer system will be replaced. The funding package includes a loan of $64,361 at 1.4 percent over 20 years and $337,898 in principal forgiveness.
St. Hilaire, $307,217
The sanitary sewer collection system will be repaired and portions of the system relined. The package includes a $49,155 loan at 1 percent over 20 years and $258,062 in principal forgiveness.
Drinking Water Revolving Fund Projects ($1.6 million)
New York Mills, $869,585
The project will consist of water main replacement in several areas. The package includes a loan of $695,668 at 1.3 percent over 20 years and $173,917 in principal forgiveness.
Dassel, $440,827
The project involves water main improvements. The funding includes a loan of $352,662 at 1.3 percent over 20 years and $88,165 in principal forgiveness.
Verndale, $289,291
A water main will be replaced. The funding includes a loan of $231,433 at 2.1 percent over 20 years and $57,858 in principal forgiveness.
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