June 7 - PFA Awards $57.6 Million for Clean Water Projects

ST. PAUL – The Minnesota Department of Employment and Economic Development (DEED) announced that several Minnesota communities will receive $57.6 million in grants and loans from the Public Facilities Authority (PFA) to pay for improvements to drinking water and wastewater infrastructure.

The financing was awarded for projects in St. Cloud, Renville, Two Harbors, Blomkest-Svea, St. James, Dayton, Minnetrista, Dumont, Madison Lake, Oak Grove, Browerville and Zimmerman. In addition, the Metropolitan Council received funding for its Blue Lake Treatment Plant in Shakopee. St. Cloud received the largest share of the funding, a loan of $43.6 million and a grant of $500,000 to help pay for expanding and upgrading its wastewater treatment plant.

"This funding will improve water quality in these 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.

The funding was distributed as follows:

St. Cloud, $44.1 million
Funding will pay for expanding and improving the city’s wastewater treatment plant. The PFA funding consists of a $500,000 phosphorus reduction grant from the Clean Water Fund and a $43.6 million loan at 1.8 percent interest over 20 years.  The loan will save the city $7.8 million compared with market-rate financing. St. Cloud, located in Stearns County in central Minnesota, has a population of 65,650.
Local contact:  Greg Engdahl, city clerk, 320-255-7200

Renville, $4.6 million
Funding will pay for improving the city’s wastewater treatment plant. The PFA funding package consists of a $500,000 phosphorus reduction grant from the Clean Water Fund, a $712,962 loan at 1 percent interest over seven years, and a $3.4 million interest-free loan over 27 years from the Wastewater Infrastructure Fund, with payments deferred for the first seven years. The loans will save the city $2.1 million compared with market-rate financing. Renville, which is located in Renville County in south central Minnesota, has a population of 1,325.
Local contact: Paul McLaughlin, city administrator, 320-329-8366

Two Harbors, $2.3 million
Funding will pay for constructing and rehabilitating drinking water infrastructure.  The PFA funding consists of a $2.3 million loan at 1.67 percent interest over 20 years. The loan will save the city $360,881 compared with market-rate financing. Two Harbors, located in Lake County in northeastern Minnesota, has a population of 3,700.
Local contact: Lee Klein, city administrator, 218-834-5631

Blomkest-Svea, $1.1 million
Funding will pay for constructing wastewater collection systems and a joint stabilization pond treatment system for the communities of Blomkest and Svea. The funding package consists of a $1.1 million grant from the PFA through the Wastewater Infrastructure Fund. In addition, the project was awarded a $1.9 million grant and loan from the U.S. Department of Agriculture – Rural Development. Blomkest and Svea, which are located in Kandiyohi County in central Minnesota, have a combined population of 760.
Local contact: David Schmidt, board chairman, 320-979-5960

St. James, $1.1 million
Funding will pay for renovating a water treatment plant, rehabilitating a well and installing a water main. The PFA funding consists of a $1.1 million loan at 2.1 percent interest over 20 years. The loan will save the city $223,564 compared with market-rate financing. St. James, located in Watonwan County in south central Minnesota, has a population of 4,590.
Local contact:  Joe McCabe, city manager, 507-375-3241

Dayton, $771,000
Funding will pay for installing a water main to consolidate public and individual water systems. The PFA funding consists of a $771,000 loan at 1.65 percent interest over 20 years. The loan will save the city $122,489 compared with market-rate financing. Dayton, which is located in Hennepin County, has a population of 500.
Local contact: Julie Linnihan, finance director, 763-427-4589

Minnetrista, $719,813
Funding will pay for putting in a backup well and a transmission line for drinking water. The PFA funding consists of a $719,813 loan at 1.19 percent interest over 15 years. The loan will save the city $85,063 compared with market-rate financing.  Minnetrista, located in Hennepin County, has a population of 6,190.
Local contact:  Brian Grimm, finance officer, 952-241-2516

Dumont, $699,385
Funding will pay for constructing a new water treatment plant, putting in a well, installing water meters, and removing two other wells from service. The PFA funding consists of a $230,202 loan at 1 percent interest over 30 years and principal forgiveness of $469,183. The loan will save the city $105,030 compared with market-rate financing. Dumont, located in Traverse County in west central Minnesota, has a population of 110.
Local contact: Gail Thiel, city clerk, 320-563-8595

Madison Lake, $596,692
Funding will pay for new infrastructure to expand the city’s water distribution system. It will also pay for removing a well from service and installing 250 water meters. The funding consists of a loan of $596,692 at 1.86 percent interest over 20 years. The loan will save the city $95,912 compared with market-rate financing.  Madison Lake, located in Blue Earth County in south central Minnesota, has a population of 935.
Local contact: Kelly Steele, city administrator, 507-243-3011

Metropolitan Council, $500,000
Funding will pay for improvements to the Metropolitan Council’s Blue Lake Treatment Plant in Shakopee. The PFA funding consists of a $500,000 phosphorus reduction grant from the Clean Water Fund. Shakopee is located in Scott County in the Twin Cities metropolitan area. The Blue Lake Treatment Plant serves 275,000 residents in 28 communities.  
Local contact: Kay Dawson, Metropolitan Council Environmental Services budget manager, 651-602-1020

Oak Grove, $490,429
Funding will pay for eliminating the city’s northeastern wastewater treatment system and connecting its users to the system in the west. The PFA financing consists of a $490,429 loan at 1.69 percent interest over 20 years. The loan will save the city $74,046 compared with market-rate financing. Oak Grove, located in Anoka County, has a population of 345.
Local contact: Clara Thorne, finance director, 763-753-1920

Browerville, $385,244
Funding will pay for replacing cast-iron water mains. The PFA funding consists of a $385,244 loan at 1 percent interest over 20 years. The loan will save the city $91,858 compared with market-rate financing.  Browerville, which is located in Todd County in central Minnesota, has a population of 710.
Local contact:  Lynn Fabro, city administrator, 320-594-2201

Zimmerman, $211,057
Funding will pay for improvements at the wastewater treatment plant. The PFA funding consists of a $211,057 phosphorus reduction grant from the Clean Water Fund. Zimmerman, which is located in Sherburne County about 45 miles northwest of St. Paul, has a population of 4,960.
Local contact: Randy Piasecki, interim administrator, 763-856-4666

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.

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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