Mitchell granted more than $8 million in water systems loans

Sept. 27--The South Dakota Board of Water and Natural Resources approved $8.345 million in funding Thursday for improvements to water systems in Mitchell.

The money will be used in part to complete the second and third phases of construction on Sanborn Boulevard over a two-year period and will go toward fixing the storm drainage issues there that have led to flooding in the past, particularly in the area of the intersection of Ninth Avenue and Sanborn.

"Sanborn was identified as one of the top council goals, probably three or four years ago, because of the condition that that road was in," Mitchell City Administrator Stephanie Ellwein said. "And instead of investing in additional funds to just do patching and Band-Aiding the road more, they really decided to do a total reconstruction and improve utility infrastructure and improve storm drainage."

More than $7.5 million of those loans, which will be administered through the Department of Environment and Natural Resources, will come from the Clean Water State Revolving Fund, while the remaining $821,000 will be a Drinking Water State Revolving Fund loan.

The loans awarded Thursday are the latest development in the city's attempts to improve the watershed.

"It's not a lot, but it's our foot in the door, so to speak," Mayor Bob Everson said.

$337,700 of the funding was designated as nonpoint source funding, which can be used for upgrades in the Firesteel Creek watershed basin.

"Hopefully we can start work on some of the wetlands that we need to do to help improve the water quality.," Everson said.

According to Ellwein, although the city applied all at once for the funding for both upcoming phases of the Sanborn project, the money will only be drawn down when it's needed.

"You'll see us take a portion down in 2019, and then the rest of it will be in 2020 when we do phase three of that project," Ellwein said.

The city already has the plans for phase two of the upgrades on Sanborn Boulevard, which will cover a seven-block stretch along Sanborn, with First Avenue as the southern endpoint. Phase three will extend from the endpoint of phase two north to 15th Avenue.

Both phases will include road resurfacing and the replacement of cast iron water main and vitrified clay sanitary sewer with thousands of feet of PVC upgrades.

Both loans have 20-year terms. The Clean Water State Revolving Fund loan has an interest rate of 1.25 percent, while the Drinking Water State Revolving Fund loan's interest rate is 2.25 percent.

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