Pelican Rapids Receives Low-Interest Loan for Water Treatment Infrastructure
ST. PAUL –Pelican Rapids in western Minnesota received a low-interest loan of $306,500 from the Minnesota Public Facilities Authority (PFA) to help pay for improvements to the city’s drinking water treatment system.
The loan, financed at 2.4 percent over 20 years, will save local taxpayers $68,000 in debt service costs compared with borrowing at market rates.
“This project will improve water quality for Pelican Rapids residents,” said Dan McElroy, commissioner of the Minnesota Department of Employment and Economic Development and chairman of the PFA. “The financing will provide substantial savings to local ratepayers over the cost of borrowing at market rates.”
The PFA and Minnesota Commissioner of Health Sanne Magnan jointly announced the loan.
“Making sure people have safe drinking water 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. PFA loans are an important tool for making that happen.”
Brent E. Frazier, Pelican Rapids utilities superintendent, said the project will improve the reliability of the drinking water infrastructure. In addition, new components to the system will provide a more uniform concentration of chlorine in the treated drinking water.
Construction is expected to be completed by January 2009. Pelican Rapids, which is located in Otter Tail County, has a population of about 2,400.
The PFA has financed more than $2.5 billion in infrastructure projects since it was created by the
Minnesota 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.
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