Detroit Lakes Receives $4.8 Million from State for Willow St./West Ave Projects

Detroit Lakes Receives $4.8 Million from State for Willow St./West Ave Projects Click to Enlarge

ST. PAUL, MN--Detroit Lakes is among three recipients of Minnesota Public Facilities Authority (PFA) loan and grant funding for water infrastructure projects totaling just under 21-million dollars. The PFA today announced $20.8 million in loan and grant funding for water infrastructure projects in Oronoco, Marshall and Detroit Lakes.

“These three Greater Minnesota cities are utilizing PFA resources to improve their community wastewater infrastructure,” said Governor Tim Walz. “I congratulate these three cities on their awards.”

“Investing in a water infrastructure prepares these communities for future economic growth,” said Steve Grove, PFA chair and commissioner of the Minnesota Department of Employment and Economic Development. “The PFA continues to be a critical tool in helping communities all across Minnesota update and improve their water resources.”

Detroit Lakes receives $4,882,241 in low interest loans and a grant toward the Willow Street/West Avenue project now underway.

Detroit Lakes Mayor Matt Brenk says the city couldn't be happier with the funding assistance which he says will save the city around $250,000 in interest alone.

This project consists of watermain replacement and sewer line replacement along the south side of the city. A Drinking Water Revolving Fund (DWRF) loan of $2,109,691 will provide funding for the watermain replacement work. The one percent loan is expected to save $192,541 when compared to the cost of market-rate financing. Funding for the sewer line replacement will come from a Water Infrastructure Fund (WIF) grant of $2,218,040 and a Clean Water Revolving Fund (CWRF) loan of $554,510 at one percent, which will provide additional interest savings of $50,632 compared to market-rate financing.

Mayor Brenk says he doesn't know yet if or how this will affect the assessments to residents on those streets. He says the City Council will analyse how it all shakes out with the savings from the loan and the grant.

The City of Marshall receives $15.6 million to rehabilitate the city's wastewater treatment facility. And Oronoco gets just over 231-thousand dollars for land acquisition and planning costs for a waste water infrastructure system.

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