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PFA Approves $28.45 Million for Greater Minnesota Projects

Funding will support water and sewer projects in Canby, Cloquet, Waseca and Waubun

9/13/2018 4:00:00 PM

Shane Delaney, 651-259-7236
Shane.M.Delaney@state.mn.us

ST. PAUL –
The Minnesota Public Facilities Authority approved $28.45 million in grants and loans for water and sanitary sewer projects in four cities in Greater Minnesota. Funding was approved for Canby, Cloquet, Waseca and Waubun.

“Communities across Minnesota face serious water-quality challenges,” said Governor Mark Dayton. “This funding supports improvements that will give residents of Canby, Cloquet, Waseca, Waubun and neighboring Greater Minnesota communities access to the safe drinking water they deserve.”

“Upgrading water and sewer systems in Greater Minnesota is a sound practice that provides long-term benefits,” said Shawntera Hardy, who chairs the PFA board and is commissioner of DEED. “PFA funding is an investment in public health, the economy and community livability.”

The following is a description of the projects and a breakdown of the funding they received:

Canby, $11.93 million
The city is replacing watermain including new hydrants and gate valves, rehabilitating gravity filters at the treatment plant and upgrading the sanitary sewer system.

The watermain project was approved for a $4.12 million loan from the Drinking Water Revolving Fund and a $2.05 million grant from the Water Infrastructure Fund. The 30-year, 1 percent loan will save taxpayers $1.33 million compared with the cost of a conventional loan.

The gravity filter rehabilitation was funded with a $190,008 grant from the Water Infrastructure Fund and a $47,502 loan from the Drinking Water Revolving Fund. The 20-year, 1 percent loan will save taxpayers $9,262 compared with the cost of a conventional loan.

The sanitary sewer upgrades were approved for a $4.54 million loan from the Clean Water Revolving Fund and a $978,464 grant from the Water Infrastructure Fund. The 30-year, 1 percent loan will save taxpayers $1.33 million compared with the cost of a conventional loan.

Cloquet, $7.58 million
The city was approved for a $7.58 million loan to build a new drinking water treatment plant to remove iron and manganese. The 20-year, 1.128 percent loan from the Drinking Water Revolving Fund will save the city $1.27 million compared with the cost of a conventional loan.

Waseca, $6.26 million
The city is replacing water distribution and sewer collection lines along Elm Avenue. The project was approved for a $2.57 million loan from the Drinking Water Revolving Fund and a $3.69 million loan from the Clean Water Revolving Fund. The two 15-year, 1 percent loans will save the city more than $775,000 compared with the cost of conventional loans for the same amount.

Waubun, $2.68 million
The sanitary sewer collection system will be rehabilitated and the watermain distribution system replaced.

The city’s sanitary sewer rehabilitation project received a grant of $1.48 million from the Water Infrastructure Fund. The U.S. Department of Agriculture also approved a grant of $1.05 million and a loan of $1.81 million from the Office of Rural Development.

The watermain project was approved for a $600,000 grant from the Water Infrastructure Fund and a $600,000 grant from DEED’s Small Cities Development Program.  The U.S. Department of Agriculture also approved a grant of $1.28 million and a loan of $1.29 million from the Office of Rural Development.

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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