GEFA Approves Infrastructure Projects in Athens, Madison County

Tuesday, May 19, 2009

Contact: Office of Communications 404-651-7774, Shane Hix, GEFA, (404) 584-1043, (404) 713-7850

ATLANTA – Governor Sonny Perdue announced today that the Georgia Environmental Facilities Authority (GEFA) board of directors has approved financing of water and sewer infrastructure projects in Athens-Clarke County and Madison County.

“Investment in infrastructure creates jobs, promotes economic development and increases our citizens’ quality of life,” said Governor Perdue. “Improving public health and safety is critical to a community’s economic growth and prosperity.”

“The federal water and sewer programs administered by GEFA assist local governments with improving their environmental infrastructure,” said Phil Foil, executive director of GEFA. “Financing water and sewer projects encourages economic growth and the stewardship of our environment.”

The projects approved today are the first financed in Georgia by the American Recovery and Reinvestment Act (ARRA). In February, the Congress approved and the President signed the ARRA, which included a substantial investment in the CWSRF and the DWSRF programs, which are administered in Georgia by GEFA.

“The projects that we agreed to finance today illustrate how GEFA helps communities of all sizes, in all areas of the state,” said Matt Beasley, chairman of the GEFA board of directors and mayor of the city of Hartwell. “From the smallest of communities to the largest, GEFA is investing in communities that are willing to invest in themselves.”

GEFA helps communities prepare for economic growth and development through the provision of low interest loans. The Clean Water State Revolving Fund (CWSRF) is a federal loan program administered by GEFA for wastewater infrastructure and water pollution abatement projects.  Eligible projects include a wide variety of storm water and wastewater collection and treatment projects. The Drinking Water State Revolving Fund (DWSRF) is a federal loan program administered by GEFA for water infrastructure projects. Eligible projects include public health-related water supply construction.

Under the ARRA financing terms adopted by the GEFA board of directors, cities or counties that are OneGeorgia-eligible qualify for a 70 percent subsidy. Cities or counties that are not OneGeorgia-eligible qualify for a 40 percent subsidy. For example, if a OneGeorgia-eligible community applies for a $1 million loan, then 70 percent of the loan will be forgiven and the community will close on a 20-year loan of $300,000 at a three percent interest rate. OneGeorgia- eligible communities are located outside the state’s metropolitan areas and have a population of 50,000 or less with a poverty rate of 10 percent or greater. The unprecedented amounts of subsidy in the ARRA financing terms will help Georgia meet the ARRA’s short-term goals of job creation and economic stimulus.

Georgia local governments expressed a tremendous amount of interest in the ARRA funds. Cities and counties submitted more than 1,600 clean water, drinking water and green projects with a total cost that exceeded $6 billion. Total available funding for projects through the ARRA is $144 million. Funding is obligated to projects on a first-come-first-served basis.

Details of the loans approved today are below:

Athens-Clarke County

Athens-Clarke County was approved for a Clean Water State Revolving Fund (CWSRF) loan of $6,000,000 and a CWSRF subsidy of $4,000,000 for second phase construction of five sewer interceptors. GEFA approved a loan of $15,000,000 on June 19, 2007, for phase one of the same project. Consistent with GEFA’s ARRA financing terms for communities that are not OneGeorgia eligible, 40 percent ($4,000,000) of the principal will be forgiven and Athens-Clarke County will pay three percent interest on a 20-year loan of $6,000,000. The total project cost is $28,889,000 with GEFA providing $25,000,000 and Athens-Clarke County providing $3,889,000 in local funds.

Madison County Industrial Development and Building Authority (IDBA)

The Madison County IDBA was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $690,000 and a DWSRF subsidy of $1,610,000 for the construction of new water transmission mains that extend service to unincorporated areas of Madison County. Consistent with GEFA’s ARRA financing terms for OneGeorgia eligible communities, 70 percent ($1,610,000) of the principal will be forgiven and the Madison County IDBA will pay three percent interest on a 20-year loan of $690,000.  The total project cost is $2,300,000 with GEFA providing the entire amount.

 

Cities and counties interested in more information regarding GEFA loans should visit www.gefa.org or call (404) 584-1000.

 

The Georgia Environmental Facilities Authority (GEFA) provides financial assistance and administers programs that encourage stewardship of the environment and promote economic development statewide.   GEFA is the lead state agency for energy planning and alternative fuels; manages the Governor’s Energy Challenge and the Georgia Land Conservation Program; maintains state-owned fuel storage tanks; and offers financing for reservoir and water supply, water quality, storm water and solid waste infrastructure.

 

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