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Date: August 12, 2008 For Immediate Release |
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Grove City Receives Low-Interest Loan for Water Treatment InfrastructureST. PAUL – A low-interest loan of more than $1.4 million has been awarded to Grove City to pay for a new well, water treatment plant and meters. Financing is from the Minnesota Public Facilities Authority (PFA), an independent infrastructure financing authority created by the legislature in 1987. Grove City-area residents can expect to save nearly $439,167 on debt service costs, compared with borrowing at market rates. The interest rate for the PFA loan is 1.258 percent for a 20-year term. "This project will improve water quality for residents of Grove City, as well as lower long-term maintenance costs for city and residential equipment," said Dan McElroy, Minnesota Department of Employment and Economic Development commissioner and PFA chair. "The financing will provide substantial savings to local ratepayers over the cost of borrowing at market rates." The PFA joined with Minnesota Commissioner of Health Sanne Magnan in announcing the loan. "Making sure people have safe water to drink is one of the most important duties of public health officials," Magnan said. “But safe water doesn’t happen by accident. It requires a strong infrastructure and constant vigilance. The loans provided through the revolving fund are an important tool for making that happen." Janell Johnson, Grove City administrator-clerk treasurer, said the new well, water treatment plant and meters will provide a cleaner, more efficient and more reliable drinking water distribution system. Construction has begun and is expected to be completed by June 2009. Grove City (in Meeker County) is located in central Minnesota and has a population of approximately 625. The PFA has financed more than $2.5 billion in infrastructure projects since it was created by the legislature in 1987. The PFA operates three revolving loan funds for infrastructure projects – the Drinking Water Revolving Fund, Clean Water Revolving Fund and Transportation Revolving Loan Fund. Upon request, the information in this news release is available in an alternative format |
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