Detroit Lakes, Osakis and Wheaton plan upgrades to sewer and water services

 

ST. PAUL – The Minnesota Public Facility Authority (PFA) approved grants and loans totaling more than $35.5 million for sewer and water projects in three west central Minnesota cities. Funding was allocated for projects in Detroit Lakes, Osakis and Wheaton.

“Communities across Minnesota face serious water-quality challenges,” said Governor Mark Dayton. “Last spring, I worked with the Minnesota Legislature to establish a grant program to help cities afford to make water-quality improvements. These grants and loans will help the residents in these three cities to afford the clean water they deserve.”

 

“PFA funding promotes economic growth and protects public health and the environment,” said Shawntera Hardy, who chairs the PFA board and is commissioner of the Minnesota Department of Employment and Economic Development. “These three communities are making an investment that will benefit future generations.” 

 

The following projects were awarded funding:

 

The city will rehabilitate its wastewater treatment system and build an advanced system to treat phosphorus. The PFA funding package includes an $11.53 million grant from the Point Source Implementation Program, a $2.24 million principal forgiveness grant from the Clean Water Revolving Fund, and a $3.27 million grant from the Water Infrastructure Fund. 

 

The project also was awarded a low-interest loan of $16.34 million from the Clean Water Revolving Fund. The 20-year, 1.099 percent interest loan will save the city $2.68 million compared with what it would have paid on a conventional loan of the same amount.

 

Osakis was approved for a $653,961 loan from Clean Water Revolving Fund for sanitary sewer rehabilitation work and a $475,604 loan from the Drinking Water Revolving Fund for improvements to the city’s water distribution system. Both loans were approved for 20-year terms at 1 percent, saving local taxpayers nearly $204,000 compared with what they would have paid on conventional loans of the same amount. 

 

The city was awarded a $1 million low-interest loan from the Drinking Water Revolving Fund to rehabilitate its drinking water treatment plant. The 20-year, 1.118 percent interest loan will save the city $174,267 compared with what it would have paid on a conventional loan of the same amount.

 

The Minnesota Public Facilities Authority provides financing and technical assistance to help communities build and maintain infrastructure that protects public health and the environment and promotes economic growth. Since inception in 1987, the PFA has financed $4.5 billion in public infrastructure projects in communities throughout Minnesota. Read more at the PFA website.