Seven Iowa communities, including Storm Lake, were approved recently for Planning and Design Loans from the Iowa Finance Authority (IFA). The cities of Bayard, Cambridge, Donahue, Elkader, Fairfax, Humeston and Storm Lake will receive a combined total of $816,245 in no-interest loans to construct wastewater, storm water, and drinking water facilities
Storm Lake was approved to receive $158,945 to deal with storm water issues.
It is the second-largest award made in the state, according to the announcement Monday.
The loans will help finance expenses associated with the early stages of developing the facilities, including engineering fees, archaeological surveys, environmental or geological studies, and costs related to project plan preparation. The loans are made available through the State Revolving Fund.
"These new, unique loans address cities' needs to secure interim financing for the first phases of planning a facility," IFA Executive Director Bret Mills said. "The Iowa Finance Authority is pleased to partner with these communities so their residents are assured quality wastewater, storm water, and drinking water facilities."
Storm Lake City Clerk Justin Yarosevich said the city applied for the no-interest loan as part of a major storm water project covering 503 acres, part of which includes the Project AWAYSIS area. The project includes the Radio Park, East Lakeshore Drive, and relocated Sunrise Park Road areas.
The loan covers the cost of designing up to the bid phase for the new system which may include a natural filtering pond in the Radio Park area. Yarosevich said two goals for the pond are to purify storm water and to be aesthetically pleasing. The total project cost is estimated at $1.2 million.
Yarosevich said plans are to start construction next spring with the project to be completed either at the end of next year or a year from next spring.