Nearly $44 Million Awarded for Infrastructure Projects Across the State
These projects will help develop water infrastructure projects in 12 Minnesota cities
February 18, 2021
ST. PAUL - The Minnesota Public Facilities Authority (PFA) today announced loans and grants for water infrastructure projects in 12 different Minnesota communities.
“Clean waterways and drinking water are a basic function of government, and these investments are important to protecting Minnesotans and our economy,” said PFA Chair and Commissioner of the Department of Employment and Economic Development (DEED) Steve Grove. “I congratulate these 12 cities on their awards.”
Funding for all projects comes from a variety of PFA sources including: the Drinking Water Revolving Fund (DWRF), the Clean Water Revolving Fund (CWRF), and the Water Infrastructure Fund (WIF), among other sources. In addition to the PFA, funding sources included the U.S. Department of Agriculture, state and local government.
The Minnesota PFA provides financing and technical assistance to help communities build and maintain infrastructure that protects public health and the environment and promotes economic growth. Since its inception in 1987, the PFA has financed over $5 billion in public infrastructure projects in communities throughout Minnesota. Read more on the PFA website.
Awards and PFA funding listed below:
Appleton – $6,071,937
This project consists of constructing a new drinking water treatment plan, new well and new associated watermain. All of the funding comes from a DWRF loan. The 1% loan will save $515,772 when compared to market-rate financing.
Askov – $1,395,467
This project consists of the construction of two new wells and rehabilitation of the drinking water treatment facility. Funding comes from a $624,070 DWRF loan, a $771,397 DWRF grant, a $600,000 DEED Small Cities Development Program grant, $30,000 from local government and $640,575 from the federal government. The DWRF loan is expected to save $35,746 when compared to the cost of market-rate financing.
Barrett – $382,000
This project consists of rehabilitating the drinking water treatment plant. Funding for this project comes from the PFA in the form of a WIF grant of $382,000. The USDA Office of Rural Development is also funding the project with a $206,500 grant.
Clarkfield – $1,875,000
Clarkfield is replacing the sanitary sewer collection lines throughout the city. PFA funding for this project comes in the form of a WIF grant of $1,875,000. The USDA Office of Rural Development is supplying a $2,101,000 grant and a $3,383,000 loan for the project; the city is providing an additional $101,000.
Cokato – $3,606,806
This is a project to construct a new wastewater treatment building, equipment and other improvements to reduce the discharge of phosphorus. Funding for this project comes from a Point Source Implementation grant of $2,744,058 and a CWRF loan of $862,748.
Cold Spring – $4,000,000
This project consists of drinking water system improvements to the water treatment plant, distribution system and wells. Funding comes from the PFA in the form of a $4,000,000 state special appropriation grant and $2,293,639 from the city.
Easton – $912,000
This project consists of phase 1 replacement of portions of the sanitary sewer system. PFA funding for this project comes in the form of a WIF grant of $912,000. There is also federal funding for this project in the forms of a USDA Office of Rural Development grant of $8,76,174 and USDA loan of $489,000.
Hoyt Lakes – $12,192,197
This project will add improvements to the treatment plant to meet permit requirements for mercury. Funding comes from a Point Source Implementation Grant of $7 million, a Clean Water Revolving Fund (CWRF) loan of $1,846,371 and a Water Infrastructure Fund (WIF) grant of $3,345,826. The CWRF loan with 1% interest is expected to save $93,426 when compared to market-rate financing.
Kandiyohi County – $1,101,690
Kandiyohi County has two projects. The first project will rehabilitate and replace the pretreatment equipment and building for the Glacial Lakes Sanitary Sewer and Water District. All of the funding comes from a Clean Water Relief Fund (CWRF) loan of $1,063,690.
The other project consists of assessing wastewater alternatives on Big Kandiyohi Lake. Funding for this project comes from a PFA Small Wastewater Treatment Program Technical Assistance grant of $38,000.
Lake Park – $1,311,000
This project consists of phase 3 sanitary sewer improvements. All funding comes from a 1% CWRF loan of $1,311,000. This loan will save $23,460 when compared to market-rate financing.
Lanesboro – $9,844,331
This project consists of construction of a new wastewater treatment plant and demolition of the old 1938-era plant. Funding for this project comes in the form of a $5,000,000 WIF grant and a 1% CWRF loan of $4,844,331. The CWRF loan is expected to save $506,774 when compared to market-rate financing.
Loretto – $769,646
This project connects Loretto to the Met Council regional treatment system. Funding for this project comes from a Point Source Implementation grant from the PFA of $769,646, with $19,547 from the city and $400,000 in other state funding.
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