Dec. 7 - Barnum, Duluth and Odessa Awarded Funding for Water Projects

ST. PAUL – Three Minnesota communities will receive $5.5 million from the Minnesota Public Facilities Authority (PFA) to pay for improvements to drinking water and wastewater infrastructure.

The financing was awarded for projects in Barnum, Duluth and Odessa. Duluth received two loans totaling $4.1 million to pay for constructing and rebuilding components of its water distribution and wastewater transmission systems.

"This funding will improve the water supply in these three communities and also create jobs," said Dan McElroy, PFA chair and commissioner of the Minnesota Department of Employment and Economic Development. "PFA funding for water projects enhances community vitality and contributes to better health."

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

Duluth, $4.1 million
In the first of two projects, funding will pay for building a new pump station and a water main connecting the pump station to the water distribution system. The package consists of a $1.7 million loan at 1.1 percent interest over 10 years. The loan will save the city $137,638 compared with market-rate financing.

A second loan will pay for building a wastewater overflow pipe and reconstructing a lift station. The package consists of a loan of $2.4 million at 2 percent interest over 15 years. The loan will save the city $306,931 compared with market-rate financing. The northeastern Minnesota city has a population of 85,220.
Local Contact: Mark Guisfredi, city engineer, 218-730-5000

Barnum, $841,135
The funding will pay for building a well and a well house, as well as building a backup generator. The package consists of an $841,135 loan at 1.3 percent interest over 20 years. The loan will save the city $226,549 compared with market-rate financing. Barnum is a city of 590 in northeastern Minnesota.
Local contact: Bernadine Reed, clerk-treasurer, 218-389-6714

Odessa, $588,500
The funding will pay for rehabilitating a sewer collection system. The PFA funding consists of a Wastewater Infrastructure Fund grant of $588,500, which will be combined with $811,500 in grants and loans from the U.S. Department of Agriculture Rural Development Agency. Odessa, in western central Minnesota, has a population of 100.
Local Contact:  Donna Van Hout, city clerk-treasurer, 320-273-2375

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