The City of Frazee has been awarded $3 million from the Minnesota Public Facilities Authority for water funding infrastructure projects.
Clear Lake, Montrose and Waverly are the other three cities sharing in the $9.5 million in awards, according to a news release.
“From new water treatment facilities to repairing old wells, these PFA dollars will protect Minnesota’s water supply and pave the way for future economic success,” said Steve Grove, PFA chair and commissioner of the Department of Employment and Economic Development.
With its $3,058,291, Frazee will be constructing a new drinking water treatment plant and well. Funding for the project will come from a Drinking Water Revolving Fund loan of $1,430,653 at 1% interest, and a DWRF principal forgiveness grant of $1,627,638. The loan is expected to save $68,921 when compared to the cost of market-rate financing.
The Public Facilities Authority provides financing and technical assistance to help communities build public 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.