Feb. 19 - Three Minnesota Cities Receive Funding for Drinking Water Projects

ST. PAUL – Wabasso, Minneapolis and Two Harbors are receiving a total of $28.5 million from the Minnesota Public Facilities Authority (PFA) for improvements to drinking water infrastructure.

"These three projects further the state's efforts to improve water quality in Minnesota communities, and they will create construction jobs," said Dan McElroy, PFA chair and commissioner of the Minnesota Department of Employment and Economic Development (DEED).

The funding included $7.6 million from the American Recovery and Reinvestment Act (ARRA). Under the ARRA federal stimulus package, the state has received $107 million to help more than 40 Minnesota communities improve their wastewater, sanitary sewer and drinking water systems.

The follow projects received funding from the Drinking Water Revolving Fund:

• Wabasso, $500,000
  The funding will help pay for replacing a water tower and water mains.  It consists of $500,000 in principal forgiveness. The city also will receive $3.75 million in loans and grants from U.S. Department of Agriculture Rural Development. Wabasso, which is located in Redwood County in southwestern Minnesota, has a population of 650.
  Local contact: Mary Smith, clerk, 507-342-5519

• Minneapolis, $25 million
  The city plans to make several improvements to its drinking water treatment plant. The funding package consists of a $22 million loan at 2.7 percent interest over 18 years and $3 million in principal forgiveness. The loan will save the city $9.6 million compared with market-rate financing.  Minneapolis has a population of 390,130.
  Local contact: Mike Abeln, capital & debt management director, 612-673-3496

• Two Harbors, $3 million
  The funding will pay for construction of an elevated storage tank, replacing one with less storage capacity. The funding package consists of a $2.4 million loan at 2.5 percent interest over 20 years and $596,874 in principal forgiveness. The loan will save the city $683,399 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
  

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