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USDA Rural Development Awards $674,000 Loan/Grant Package to Assist Callaway Water Project CALLAWAY, Minn., May 12 – USDA Rural Development awarded Callaway a $337,000 grant and a $337,000 low-interest loan to complete the second phase of an ambitious water project. USDA Rural Development State Director Steve Wenzel visited Callaway today to recognize the funding package. The first phase calls for the city to build a water treatment plant to address arsenic levels in its water supply. The Minnesota Public Facilities Authority is funding the project with a $500,000 grant and $400,000 loan. USDA Rural Development enters the picture during the second phase, contributing its loan/grant package to build a new water tower and replace the city’s distribution system. The Department of Employment and Economic Development (DEED) contributed $600,000 toward the second phase through its small cities program. The Minnesota Department of Transportation (MNDOT) rounded out the funding with an $860,671 contribution. “It’s no secret that costs for water improvement projects in rural communities are rising,” Wenzel said. “This presents challenges to rural communities. But President Bush has crafted a rural policy that encourages partnerships. Partnerships can make these projects happen. I can’t think of a project that displays the value of partnerships better than this one.” Rural Development has invested over $2.5 billion throughout rural Minnesota since 2001. The agency has funding for housing, high-speed Internet, emergency response, job creation, economic development, and other essential infrastructure. For more information, call the local office in Detroit Lakes at (218) 847-5694, or visit www.rurdev.usda.gov/mn.
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