Apr. 13 - Seven Minnesota Cities Awarded $12.3 Million for Water Projects

ST. PAUL – The Minnesota Department of Employment and Economic Development (DEED) announced that seven Minnesota communities will receive $12.3 million from the Public Facilities Authority (PFA) to pay for improvements to drinking water and wastewater infrastructure.

The financing was awarded for projects in Minneapolis, South St. Paul, St. Bonifacius, Lowry, New Hope, East Bethel, and Chisholm. Minneapolis received a loan of $7.1 million to help pay for completing a project for upgrading an ultra-filtration plant.

"This funding will improve water quality in these seven communities, enhancing community vitality and contributing to better health," said Dan McElroy, PFA chair and commissioner of DEED.

Funding for the projects will come from the PFA's Drinking Water Revolving Fund, Clean Water Revolving Fund and Wastewater Infrastructure Fund.

Minneapolis, $7.1 million
The funding will pay to complete an upgrade of an ultra-filtration plant. The PFA funding consists of a $7.1 million loan at 1 percent interest over 12 years. The loan will save the city $734,790 compared with market-rate financing.  Minneapolis has a population of 390,130.
Local contact: Mike Abeln, capital and debt management director, 612-673-3496

South St. Paul, $2.8 million
The funding will pay for constructing components of a drinking water treatment system including two reservoirs. The PFA funding consists of a $2.8 million loan at 1.7 percent interest over 20 years. The loan will save the city $465,200 compared with market-rate financing. South Saint Paul, located in the Twin Cities metropolitan area, has a population of 8,265.
Local contact:  Josh Feldman, finance director, 651-554-3200

St. Bonifacius, $693,965
The funding will pay for replacing a well and other components of the drinking water infrastructure. The PFA funding consists of a $693,965  loan at 1.7 percent interest over 20 years. The loan will save the city $114,948 compared with market-rate financing. St. Bonifacius, located in the Twin Cities metropolitan area, has a population of 2,330.
Local contact: Brenda Fisk, city clerk-treasurer, 952-446-1061

Lowry, $600,000
The funding will pay for replacing the municipal wastewater collection system and building a wastewater treatment system. Along with the $600,000 grant from the PFA, Lowry also received a grant of $580,000 from the Small Cities Development Program and a grant and loan of $2 million from the U.S. Department of Agriculture – Rural Development. Lowry, which is located in Pope County in western Minnesota, has a population of 280.
Local contact:  Lucy Olson, city clerk-treasurer, 320-283-5411

New Hope, $418,644
The funding will pay for replacing a water main along Winnetka Avenue. The PFA funding consists of a $418,644 loan at 1.7 percent interest over 20 years. The loan will save the city $67,270 compared with market-rate financing. New Hope, which is located in the Twin Cities metropolitan area, has a population of 20,860.
Local contact: Guy Johnson, director of public works, 763-531-5100

East Bethel, $373,004
The funding will pay for constructing a new well and modifying a well house, accommodating the new well. The PFA funding consists of a $74,601 loan at 1 percent interest over 20 years and $298,403 in principal forgiveness. The loan will save the city $453,871 compared with market-rate financing.  East Bethel, which is located in Anoka County in the Twin Cities metropolitan area, has a population of 125.
Local contact: Rita Pierce, fiscal and support services director, 763-367-7852

Chisholm, $353,454
Funding will pay for rehabilitating the sanitary sewer collection system in northwestern Chisholm.  The package consists of a $353,454 loan at 1.37 percent interest over 15 years. The loan will save the city $47,423 compared with market-rate financing. Chisholm, which is located in St. Louis County in northeastern Minnesota, has a population of 4,645.
Local contact: Mark Casey, city clerk-administrator, 218-254-7960

DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and our services, visit us at www.PositivelyMinnesota.com. Follow us on Twitter at www.twitter.com/PositivelyMN.

Upon request, the information in this news release is available in an alternative format such as Braille, large print, audiotape or computer disk.

Minnesota Department of Employment and Economic Development
Communications Office
Phone 651/259-7161 or 1-800-657-3858 ∙ TTY 1-800-657-3973
www.PositivelyMinnesota.com