Minnesota Ag Connection - PFA Approves $23.83 Million for Infrastructure Projects

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PFA Approves $23.83 Million for Infrastructure Projects
Minnesota Ag Connection - 08/14/2018

The Minnesota Public Facilities Authority (PFA) is supporting upgrades for five water infrastructure systems in Greater Minnesota. The PFA approved grants and loans totaling $23.83 million for projects in Baudette, Chisholm, Gilbert, Greenbush and Stewart.

"This funding will enable these communities to make improvements to water infrastructure systems that are outdated or deteriorating," said Shawntera Hardy, who chairs the PFA board and is commissioner of the Minnesota Department of Employment and Economic Development. "These projects are a good investment that will benefit residents, local businesses and the economy."

The following is a description and funding summary for each project:

Wheelers Point Sanitary District (Baudette), $3.56 million

The district is building a new wastewater collection and treatment system. The PFA awarded the project a $3.56 million grant from the Water Infrastructure Fund. The project also received a $4.46 million grant and $2.14 million loan from the U.S. Department of Agriculture's Office of Rural Development. The sanitary district is located in Lake of the Woods County in north-central Minnesota.

Chisholm, $4.49 million

The St. Louis County city was approved for a $2.39 million grant from the Water Infrastructure Fund and a loan of $597,306 from the Clean Water Revolving Fund to rehabilitate the sewer collection system in the city's Lakeview neighborhood. The 30-year, 1.211 percent loan will save taxpayers $149,058 compared with the cost of a conventional loan.

In another project, the city was approved for a $1.5 million loan from the Drinking Water Revolving Fund to replace sections of watermain and to install new fire hydrants and gate valves. The 20-year, 1.114 percent loan will save taxpayers $231,425 compared with the cost of a conventional loan.

Gilbert, $11.72 million

Gilbert, located in St. Louis County, is rehabilitating the city's wastewater treatment facility and adding advanced components for treating mercury. The project was approved for a $6.64 million grant from the Point Source Implementation Grant Program and a $4.96 million loan and $122,444 grant from the Clean Water Revolving Fund. The 20-year, 1 percent loan will save taxpayers $847,204 compared with the cost of a conventional loan. Other project funding came from the Iron Range Resources & Rehabilitation Board ($250,000 grant) and Community Development Block Grant Program ($100,000 grant).

Greenbush, $1.14 million

The Roseau County city is installing watermain, hydrants and gate valves in two areas of the city and relocating watermain along Highway 32. The PFA approved a $913,166 grant from the Water Infrastructure Fund and a $228,291 loan from the Drinking Water Revolving Fund. The 15-year, 1 percent loan will save taxpayers $26,355 compared with the cost of a conventional loan.

Stewart, $2.92 million

The city will replace and loop watermains in various parts of the city. The McLeod County community was approved for a $1.1 million grant from the Water Infrastructure Fund and a $275,179 loan from the Drinking Water Revolving Fund. The 20-year, 1 percent loan will save taxpayers $45,672 compared with the cost of a conventional loan.

The city also was approved for a $1.23 million grant from the Water Infrastructure Fund and a $307,733 loan from the Clean Water Revolving Fund to replace a portion of the city's sanitary sewer in a four-block area. The 20-year, 1 percent loan will save taxpayers $51,416 in interest costs compared with the cost of a conventional loan.

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