CORTLAND — The City of Cortland will use a $16 million federal loan for sewer rehabilitation and water-main replacement projects. The U.S. Environmental Protection Agency (EPA) on May 11 announced the Water Infrastructure Finance and Innovation Act (WIFIA) loan. This WIFIA loan will help Cortland “protect public health and the environment by helping provide safe […]
CORTLAND — The City of Cortland will use a $16 million federal loan for sewer rehabilitation and water-main replacement projects.
The U.S. Environmental Protection Agency (EPA) on May 11 announced the Water Infrastructure Finance and Innovation Act (WIFIA) loan.
This WIFIA loan will help Cortland “protect public health and the environment by helping provide safe drinking water and dependable wastewater services,” the EPA said.
This project will cost $38 million. EPA’s WIFIA loan will finance nearly half of that figure — up to $16 million. Additionally, a combination of loans and grants from the New York Clean Water State Revolving Fund, the New York Drinking Water State Revolving Fund, and other state funds will finance about $18 million, the EPA said.
The Federal Community Development Block Grant Program will fund $3.7 million, marking the first time that this U.S. Department of Housing and Urban Development funding program and WIFIA financing have been used together to support a project.
The WIFIA loan will save the City of Cortland an estimated $3.5 million compared to typical bond financing. Project construction and operation are expected to create 120 jobs, per the EPA.
“EPA is acting on its commitment to infrastructure investment by providing this important support to the City of Cortland. It will help the city finance critical sewer rehabilitation and water-main-replacement-related project costs,” Pete Lopez, administrator of the EPA’s Region 2, said in a release. “The City of Cortland serves as a key gateway in New York’s Southern Tier and this investment in water infrastructure will yield positive environmental results for years to come.”
About the project
The Clinton Avenue Gateway project will replace aged water mains, sanitary sewers, and storm drainage with a new water main, services, hydrants, and valves. The purpose of this project is to replace the existing infrastructure, which has exceeded its useful life. The existing water mains and sewer systems have been in place for over 100 years and are at risk of failure due to age and use. The project will provide proper water and sewer main separation, reduce treatment costs for water and wastewater, and improve public health and environmental protections, per the EPA.
“We thank the EPA for extending the WIFIA program to a city our size,” Cortland Mayor Brian Tobin said. “EPA’s participation opened a door for the City of Cortland to reconstruct its infrastructure, revitalize its commercial base and improved the quality of services rendered to our residents that the City would not be able to do on its own.”
About WIFIA
Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan and guarantee program administered by EPA.
WIFIA’s seeks to accelerate investment in the nation’s water infrastructure by providing long-term and low-cost supplemental credit assistance for regionally and nationally significant projects.
The EPA says its WIFIA program plays an “important part” in President Trump’s infrastructure plan, which calls for expanding project eligibility. The WIFIA program has an “active pipeline” of pending applications for projects that will result in billions of dollars in water infrastructure investment and thousands of jobs.