Infrastructure bank gets loan
One of the final steps in establishing the county infrastructure bank was approved by the county commissioners Wednesday.
Mark Gordon, the county director of planning and economic development, requested the approval of an ordinance that would authorize the infrastructure bank to seek a loan not to exceed $10 million.
The money would be used to provide low-interest loans to municipalities in the county for approved infrastructure projects.
The commissioners pointed out that the infrastructure bank will benefit smaller, cash-strapped townships and boroughs by providing loans at a low interest rate, offering those rates regardless of the municipality's credit rating, and the ability of municipalities to use the infrastructure bank's engineering firm for oversight of projects as well as engineering, compliance and permitting services.
Gordon said the three projects approved for funding by the infrastructure bank total $7.5 million.
The infrastructure bank's $500,000 current balance, Commissioners Chairman Leslie Osche explained, will be used to subsidize interest payments to the financial institution that provides the loan to the infrastructure bank.
Gordon said he is now working to identify a list of potential borrowers for the $10 million loan.
Voting to close the loan will occur later, he said.
“It's exciting to see these municipalities take advantage and have the opportunity to accelerate these projects, which are much needed,” said Commissioner Kim Geyer.
Commissioner Kevin Boozel marveled that Gordon managed to get the infrastructure bank program off the ground so smoothly.
Osche said Zelienople and Mars have ambitious revitalization plans.
“These are some pretty exciting things, and they very well may be the next candidates (for borrowing from the infrastructure bank),” she said.
The first municipal loans approved for funding by the infrastructure bank include $6.4 million for Cranberry Township to divert tractor trailer traffic from Route 228 and Interstate 79 by creating an underpass, sewer improvements and construction of a pump station; and $1.5 million for Butler that would be spent on Main Street lighting, improved electrical conduit, wires and switches, and surface construction for three bridge replacements in the Sullivan Run flood control project.
West Sunbury would receive $361,000 for removing ammonia from the water system.
Marion Township has postponed its $504,000 project for sewer renovation in the Boyers area, Gordon said, but may be ready to begin by the time the infrastructure bank has funds available.
