HARRISBURG – Local officials say they’ve secured the rest of
the funding for a $45 million wastewater treatment plant upgrade required as
part of a settlement agreement.
The Harrisburg Authority Board voted unanimously Wednesday
to approve a $2 million bridge loan at 2.4 percent interest from M&T Bank.
That borrowing is meant to keep the project moving until the
agency – soon to be renamed Capital Region Water – gets the rest of the money
to pay for the project.
Pennsylvania Infrastructure and Investment Authority pledged
last year to loan the $26.8 million at a rate of about 1 percent for five and
1.2 percent or so for the next 15 years.
PENNVEST will not, however, release the money to Harrisburg
until the agency secureds the rest of project financing.
That's expected to occur in May or June through another bond
agreement also approved unanimously Wednesday.
Local officials had rushed to find a way to borrow the rest
to make the project start and contract procession deadlines imposed by a
settlement with the federal Department of Justice and Environmental Protection
Agency.
Officials expect ground to break around the same time the
authority name change is expected to become official March 20.
The rebranding is meant to help the agency shed the image as
a financier for other public agencies that used the fees to feed a special
project fund for former Mayor Stephen Reed.
Reed, who was in office nearly three decades, bought more
than $8 million of artifacts with that money, among other things.
Source: PennLive.com
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