Senator Tomassoni Announces Major New Investments in Chisholm, Gilbert, and Eveleth
The Minnesota Public Facilities Authority (PFA) today announced multimillion-dollar grants and loans to upgrade aging water infrastructure in Chisholm, Gilbert, and Eveleth. Senator David Tomassoni (DFL-Chisholm) said the new financing will prevent the need for dramatic property tax hikes.
“It is extremely hard for small towns to finance infrastructure projects of this magnitude on their own without passing on significant costs to taxpayers,” said Sen. Tomassoni. “By partnering with the PFA, we can prevent a lot of economic hardship that would otherwise fall on families and businesses. At the same time, we’ll put people to work in the construction and trades industries. I’m very pleased for the people of Chisholm, Gilbert, and Eveleth.”
The financing announced by the PFA is allocated as follows:
Chisholm, $4.49 million
Chisholm is receiving a $2.39 million grant from the Water Infrastructure Fund and a loan of $597,306 from the Clean Water Revolving Fund to rehabilitate the sewer collection system in the city’s Lakeview neighborhood. The 30-year, 1.211 percent loan will save taxpayers $149,058 compared with the cost of a conventional loan.
In another project, the city was approved for a $1.5 million loan from the Drinking Water Revolving Fund to replace sections of watermain and to install new fire hydrants and gate valves. The 20-year, 1.114 percent loan will save taxpayers $231,425 compared with the cost of a conventional loan.
Gilbert, $11.72 million
Gilbert is rehabilitating the city’s wastewater treatment facility and adding advanced components for treating mercury. The project was approved for a $6.64 million grant from the Point Source Implementation Grant Program and a $4.96 million loan and $122,444 grant from the Clean Water Revolving Fund. The 20-year, 1 percent loan will save taxpayers $847,204 compared with the cost of a conventional loan. Other project funding came from the Iron Range Resources & Rehabilitation Board ($250,000 grant) and Community Development Block Grant Program ($100,000 grant).
Eveleth, $1.45 million
Eveleth is receiving a $1.45 million loan to rehabilitate the city’s 750,000-gallon water tower. According to a conservative estimate from the PFA, the loan (20 years at 1.115 percent) will save local taxpayers approximately $241,025 in interest costs compared to market rate financing. The PFA previously announced financing for this project in a letter to Eveleth Mayor Robert Vlaisavljevich on July 30.
The PFA is a multi-agency authority that provides municipal financing expertise and infrastructure financing programs to enhance the environmental and economic vitality of the State. The authority makes low-interest loans and grants available to finance infrastructure that might otherwise be unaffordable to communities if they had to borrow money for the projects at market rates. Since inception in 1987, the PFA has financed $4.5 billion in public infrastructure projects in communities throughout Minnesota.
More information about the PFA is available at www.mn.gov/deed/pfa.
This story was originally covered in Hometown Focus.