Projects in Currie, St. James, Rice Lake, Twin Valley and the Western Lake Superior Sanitary District all received funding
10/9/2019 10:30:18 AM
Contact: Eric Lightner
St. Paul – The Minnesota Public Facilities Authority (PFA) today announced $23.4 million in water infrastructure loans and grants for Currie, St. James, Rice Lake, Twin Valley and the Western Lake Superior Sanitary District.
“These PFA projects represent a collaboration between local, state and federal governments,” said Governor Tim Walz. “I congratulate these five cities on their projects and thank the PFA for keeping our drinking water safe and clean.”
“There can be no economic growth without the infrastructure to support it,” said Steve Grove, commissioner of the Department of Employment and Economic Development. “The work the PFA does is vital to Minnesota’s economy.”
Details on the latest awards are below:
Currie will use this funding to rehabilitate the sewer collection system, replace old water mains and make other improvements to their drinking water system. PFA funding for these projects comes from two Water Infrastructure Fund (WIF) grants. A $1,623,000 WIF grant will help fund the drinking water system work and a $1,887,000 grant will help fund the rehabilitation of the sewer collection system. Additional project funding totaling $2,407,000 is provided by loans and grants from the federal USDA Rural Development.
St. James, $9,718,029
These projects include replacing aging sewer and water mains in conjunction with a Minnesota Department of Transportation (MNDOT) project to reconstruct Trunk Highway 4. A Clean Water Revolving Fund (CWRF) loan of $2,953,592 and a Drinking Water Revolving Fund loan of $3,764,437 will cover the costs associated with the Highway 4 projects. The 20-year 1% loans are expected to save a combined $631,583 when compared to the costs of market-rate financing.
A separate legislative appropriation will provide a grant of $3,000,000 to cover the cost of street and utility improvements in the northwest portion of the city.
Western Lake Superior Sanitary District, $7,131,411
These projects consist of various improvements to the District’s wastewater treatment plant and rehabilitation of the Lakeside interceptor. Three separate loans from the CWRF totaling $7,131,411 at 1% interest will cover the cost of the projects. The loans are expected to save a combined $343,951 when compared to market-rate financing.
Rice Lake, $2,335,730
This project consists of replacing an aging water main to eliminate repeated breaks and reduce water loss. Funding comes a Drinking Water Revolving Fund (DWRF) loan of $288,354 and $700,011 in the form of a principal forgiveness grant. The 20-year 1% loan is expected to save $22,107 when compared to market-rate financing. Two special legislative appropriations will provide additional grants totaling $1,347,365 for the project.
Twin Valley, $1,495,350
This project consists of the rehabilitation of the city’s drinking water treatment plant. Funding comes from a $299,070 DWRF loan and a $1,196,280 DWRF principal forgiveness grant. The 30-year 1% loan is expected to save $21,209 when compared to 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.