The PFA approved funding for Albert Lea, Pine River, East Itasca and Tonka Bay
4/9/2019 9:35:33 AM
Contact: Shane Delaney
ST. PAUL – The Minnesota Public Facilities Authority (PFA) today announced $8.39 million in loan and grant funding for water infrastructure projects in Albert Lea, Pine River, East Itasca and Tonka Bay.
“This funding will support projects that give the residents of Albert Lea, Pine River, East Itasca and Tonka Bay the ability to improve their water resources,” said Governor Tim Walz. “The PFA is vital in making sure every Minnesotan gets access to the water resources they need.”
“The PFA is a valuable resource for Minnesota communities looking to update or improve their water infrastructure,” said Steve Grove, PFA chair and commissioner of the Minnesota Department of Employment and Economic Development (DEED). “These investments will help pave the way for future economic success.”
Details on individual projects are below:
Albert Lea, $3,449,717
The Albert Lea project consists of extending sewer and water service to the recent annexed Stables Area in the northwest part of the city. Grants from the Water Infrastructure Fund (WIF) will cover $1.84 million of the project cost. The remainder will be financed by a $1.14 million Clean Water Revolving Fund (CWRF) loan and a $466,767 Drinking Water Revolving Fund (DWRF) loan. Each loan is for a term of 25 years at 1 percent interest. The loans are estimated to save $356,000 when compared to market-rate financing.
Pine River, $2,115,635
This project consists of replacement of two well houses and rehabilitation of two water towers. Funding comes from three sources. A Drinking Water Revolving Fund Loan will cover $304,127 of the cost. The 20-year 1 percent loan will save an estimated $47,554 when compared to the cost of market rate financing. The PFA will also provide a WIF of $1,216,508. The final $595,000 will come from a DEED small cites development program grant.
East Itasca, $850,000
This project consists of the design and engineering of a regional wastewater treatment system to serve the cities of Nashwauk, Keewatin, Lone Pine Township, Greenway Township, and other communities. Funding for this project comes from a special legislative appropriation.
Tonka Bay, $1,980,568
This project consists of rehabilitation of the existing drinking water treatment plant. Funding for this project will come from a loan from the Drinking Water Revolving Fund. The 20-year 1 percent loan is estimated to save $268,154 when compared to the cost of market-rate financing.
The Minnesota Public Facilities Authority (PFA) provides financing and technical assistance to help communities build and maintain public infrastructure that protects public health and the environment and promotes economic growth. Since its inception in 1987 the PFA has financed $4.5 billion in public infrastructure projects in communities throughout Minnesota.
-30-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.