By Ryan Gueningsman
MONTROSE, MN Montrose is one of four Minnesota communities that will share $3.7 million from the Public Facilities Authority (PFA) to pay for improvements to drinking water and wastewater infrastructure.
The Minnesota Department of Employment and Economic Development (DEED) announced that four Minnesota communities will receive the funds. Along with Montrose, the financing was awarded for projects in Brownton, Detroit Lakes, and Manchester.
“This funding will improve water quality in these four communities and also create jobs,” said Dan McElroy, PFA chair and commissioner of DEED. “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.
Montrose will receive $426,000, which will pay for rehabilitating and repainting one of its water towers, which was completed in fall 2009.
The PFA funding consists of a $426,000 loan at 1.6 percent interest over 20 years. The loan will save the city $92,595 compared with market-rate financing, according to a press release from DEED.
Work began on the 250,000-gallon water tower last summer, according to Montrose City Administrator Barb Swanson. She said the tower was emptied, sandblasted, cleaned, and had structural work done on it before being painted.
The tower was built in 1995 and originally located in Osceola, FL, Swanson said. It was purchased by Montrose and, at that time, funds were used from a small cities grant through the Minnesota Department of Trade and Economic Development, which later became DEED.
Swanson said the grant funds paid for the water tower, as well as housing redevelopment. She said it is nice the city is able to go back to DEED to finance this project, noting its importance to the city.
“It’s really a wonderful program for local government,” Swanson said.
Swanson said the city filled out an application for the funds, and was notified in late December the application was approved.
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 its services, visit www.PositivelyMinnesota.com.