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January 23, 2019

PFA Funds Minnesota Projects

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The Public Facilities Authority (PFA) recently announced the approval of $31.47 million in grants and loans for water infrastructure projects in Western Lake Superior Sanitary District (Duluth) and the City of Carlton. Donohue has significant involvement on several of these projects.

“Communities across Minnesota face serious water-quality challenges,” said Governor Mark Dayton in a PFA press release. “This funding supports improvements that will give residents of the Western Lake Superior Sanitary District and Carlton access to the safe drinking water they deserve.”

The following is a description and funding summary for each project:

The City of Carlton received a $2.17 million loan from the Drinking Water Revolving Fund (DWRF). The 30-year, 1 percent interest loan will save an estimated $753,364 over a traditional loan. The rest of the funding will come in the form of a $3.7 million grant from the Water Infrastructure Fund (WIF). With these funds Carlton will construct a new drinking water treatment plant, a new well and the related water transmission lines. Donohue provided engineering services on this project currently under construction.

The Western Lake Superior Sanitary District had five projects funded totaling more than $25.6 million. Donohue provided engineering services for the projects noted below:

• Oxygen Supply and Improvements ($16.17 million) - This project consists of improvements to the wastewater treatment plant’s oxygen system. $15,309,936 will come from a 15-year Clean Water Revolving Fund loan. The 1.233 percent loan will save an estimated $1,893,467 over the cost of a traditional loan. The rest will come from an $865,936 Clean Water Revolving Fund green infrastructure principal forgiveness grant. The project is under construction.

• Main Switchgear Replacement ($3.92 million) - This project involves the replacement of the wastewater treatment plant’s main switchgear. $1,907,254 will come in the form of a loan from the Clean Water Revolving Fund. The 1.233 percent 15-year-loan is estimated to save $236,020 as opposed to the cost of a traditional loan. Another $635,751 will come in the form of a Clean Water Revolving Fund green infrastructure principal forgiveness grant and the final $1,381,385 will come in the form of a Water Infrastructure Fund grant. The project is under construction.

• Screw Pump Improvements Phase Two ($708,870) - This is phase two of the treatment plant screw pump improvements. The funding for this project will come from a $708,870 15-year-loan from the Clean Water Revolving Fund. The 1.245 percent loan is estimated to save $87,621 compared to the cost of a traditional loan. The District self-performed this project based on the specification template used in the first phase.

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 its inception in 1987 the PFA has financed $4.5 billion in public infrastructure projects in communities throughout Minnesota.

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