Dec. 11 - Five Minnesota Cities Receive $41.3 Million for Water Projects

ST. PAUL - Bird Island, Clearwater, Cosmos, Grand Rapids and Redwood Falls is receiving a total of $41.3 million from the Minnesota Public Facilities Authority (PFA) for improvements to drinking water and wastewater systems.
"These five projects further the state's efforts to improve water quality in Minnesota communities," said Dan McElroy, PFA chair and commissioner of the Minnesota Department of Employment and Economic Development (DEED).

The funding included $9.4 million from the American Recovery and Reinvestment Act (ARRA). Under the ARRA federal stimulus package, the state has received $107 million this year to help more than 40 Minnesota communities improve their wastewater, sanitary sewer and drinking water systems.

The follow projects received funding in the latest round:

• Bird Island, $1 million
  The funding from the Drinking Water Revolving Fund will pay for rehabilitating the city's east side water treatment plant and for replacing a well. The package consists of a $150,632 loan at 1 percent interest over 20 years and $812,077 in principal forgiveness. The loan will save the city $857,800 compared with market-rate financing. Bird Island, which is located in Renville County in western Minnesota, has a population of 1,120.
  Local contact: Deb Lingl, administrator-treasurer, 320-365-4611
  
  
• Clearwater, $741,546
  The city plans to improve a force main and lift station in its wastewater treatment and collection system. The package, which came from the Clean Water Revolving Fund, consists of a $142,167 loan at 1 percent interest over 20 years and $599,379 in principal forgiveness. The loan will save the city $917,898 compared with market-rate financing. The Wright County community in central Minnesota has a population of 885.
  Local contact: Jennifer Wothe, administrator, 320-558-2428
  
  
• Cosmos, $603,876
  The funding from the Drinking Water Revolving Fund will pay for looping and replacing water mains and other components of the city's drinking water distribution system. The package consists of a $243,200 loan at 1 percent interest over 20 years and $360,676 in principal forgiveness. The loan will save the city $588,581 compared with market-rate financing. The city of 525 is located in Meeker County in central Minnesota.
  Local Contact: Kathy Blackwell, clerk-treasurer, 320-877-7345
  
  
• Grand Rapids, $30.2 million
  The city plans to build a new wastewater treatment facility that will improve energy efficiency and water conservation. The package, which came from the Clean Water Revolving Fund, consists of a $28.5 million loan at 2.9 percent interest over 20 years and $1.7 million in principal forgiveness. The loan will save the city $5.7 million compared with market-rate financing. Grand Rapids, which is located in Itasca County in north-central Minnesota, has a population of 7,860.
  Local contact: Anthony Ward, Public Utilities Commission general manager, 218-326-7188
  
  
• Redwood Falls, $8.8 million
  Redwood Falls is planning a new water treatment plant. The project will include reconstruction of a water transmission line, demolition of the existing plant, and engineering inspection and design. The package, which came from the Drinking Water Revolving Fund, consists of a $6.5 million loan at 2.9 percent over 30 years and $2.3 million in principal forgiveness. The loan will save the city $5.8 million. The community of 5,270 is located in Redwood County in southwestern Minnesota.
  Local contact: Jim Doering, public works project coordinator, 507-637-2417.
  
  

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