Thursday, September 3, 2009

Cookeville and Algood To Get Low-Interest Loans

Governor Phil Bredesen and Department of Environment and Conservation Commissioner Jim Fyke announced today two low-interest loans for communities in Putnam County. The city of Algood will receive $3.23 million and the city of Cookeville will receive $3.5 million for wastewater construction projects. The loans are funded through a combination of the American Recovery and Reinvestment Act of 2009 and the State Revolving Fund loan program. Forty percent of the funding is in the form of principal forgiveness, which does not have to be repaid.

“The Recovery Act is helping critical drinking water and wastewater infrastructure improvements in Tennessee move forward, which benefits both public health and the environment,” said Bredesen. “The principal forgiveness provision of the Recovery Act is an important aspect of the program, allowing us to provide additional relief to local communities during difficult economic times.”

Algood will receive $3.23 million for a collection system expansion project to the Bear Creek area. The project will be funded with a 20-year, $1.94 million loan with an interest rate of 2.14 percent and $1.29 million in principal forgiveness that will not have to be repaid.

Cookeville will receive $3.5 million for a collection system upgrade and expansion via the systemwide installation of telemetry to pumping stations and the construction of a submersible sewage pumping station, force main and gravity sewer lines in the southwestern part of Cookeville in the Hudgins Creek drainage basin area. The project will be funded with a 20-year, $2.1 million loan with an interest rate of 2.5 percent and $1.4 million in principal forgiveness that will not have to be repaid.

“This program is important in protecting both water quality and public health for Tennesseans,” said Senator Charlotte Burks. “It allows communities like Algood and Cookeville to obtain loans for water and wastewater projects with lower interest rates than most could get through private financing.”

“This year, the Recovery Act funding gives communities even more benefit, by covering 40 percent of the project costs,” added Representative Henry Fincher.