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Four Southern Minnesota Cities Awarded PFA Funding

Wastewater and drinking water infrastructure getting upgrades

3/1/2018 10:37:52 AM

Monte Hanson, 651-259-7149
Monte.Hanson@state.mn.us

ST. PAUL
– Four southern Minnesota cities were approved for more than $12 million in grants and loans from the Minnesota Public Facilities Authority (PFA) for projects that will improve wastewater and drinking water facilities. The PFA awarded funding to Blue Earth, Kasson, Northrop and Welcome.

“Communities across Minnesota face serious water-quality challenges,” said Governor Mark Dayton. “Last spring, I worked with the Minnesota Legislature to establish a grant program to help cities afford to make water-quality improvements. These grants and loans will help the residents in these four cities to afford the clean water they deserve.”

“These projects are an investment in the future of these southern Minnesota communities,” said Shawntera Hardy, who chairs the PFA board and is commissioner of the Minnesota Department of Employment and Economic Development. “Along with safer drinking water, the cities will have improved facilities that encourage new businesses and economic development.”

The following is a breakdown of the PFA’s latest funding round:

Blue Earth, $7.69 million
The city, which is planning improvements to its wastewater treatment plant, was awarded a $7.69 million low-interest loan from the PFA’s Clean Water Revolving Fund. The 20-year, 1.275 percent loan will save the city $1.28 million compared with what it would have paid for a conventional loan of the same amount.

Kasson, $3.36 million
Kasson is planning improvements to its wastewater treatment plant to reduce phosphorus discharge and to connect neighboring Mantorville to its system. Project funding includes a $489,494 grant from the Point Source Implementation Program and a $2.88 million loan from the Clean Water Revolving Fund. The 20-year, 1.095 percent loan will save the city $474,964 compared with what it would have paid for a conventional loan of the same amount. In addition, Mantorville will pay Kasson an $819,000 access fee, which will be applied to the project cost.

Northrop, $342,204
The city was awarded a loan of $342,204 from the Drinking Water Revolving Fund to rehabilitate the municipal water tower. The 20-year, 1 percent loan will save the city $66,837 compared with what it would have paid for a conventional loan of the same amount.

Welcome, $789,200
Welcome will build a new water tower and install two natural gas generators. The PFA approved the city for a $789,200 loan from the Drinking Water Revolving Fund. The 20-year, 1 percent loan will save the city $137,696 compared with a conventional loan. In addition, the city is providing $170,000 for the project.

The Minnesota Public Facilities Authority provides financing and technical assistance to help communities build and maintain infrastructure that protects public health and the environment and promotes economic growth. Since inception in 1987, the PFA has financed $4.5 billion in public infrastructure projects in communities throughout Minnesota. Read more at the PFA website.

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Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161.

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