The Tennessee Local Development Authority (TLDA) has approved a $650,000 increase in a loan to the city of Athens to extend sewer service to a planned industrial park. With the increase, which was approved Thursday, Athens will be receiving a total loan amount of $4,740,395.
The TLDA originally approved a loan amount of $4,090,395 on Oct. 26, 2009. The $650,000 increase was made possible because of savings realized on other projects located elsewhere in the state that came in under bid.
Funding for half of the loan amount is granted through the state’s Clean Water State Revolving Fund, with the rest granted from the federal American Recovery and Reinvestment Act (ARRA).
In accordance with ARRA guidelines, only 60 percent of the total loan must be repaid. Therefore, Athens will be responsible for repaying all of the state funds, but only one-fifth of the federal money.
“It is good to see businesses and local governments working hard to save money in these difficult times,” said Secretary of State Tre Hargett, a TLDA member. “This is an example of how saving in one community can result in a tangible benefit in another community, and it is the kind of management of the state revolving funds I like to see.”
Treasurer David H. Lillard Jr., another TLDA member, said, “In order for our state to grow, communities must have the necessary infrastructure in place. Sewer lines are an important part of that infrastructure.”
Comptroller Justin P. Wilson, also a TLDA member, said, “These types of loans have offered communities throughout our state opportunities to move forward with projects when finding other sources of financing might be difficult. This is a good partnership between local, state and federal governments.”
In addition to Mr. Hargett, Mr. Lillard and Mr. Wilson, the other TLDA members are: Governor Phil Bredesen, Commissioner of Finance and Administration Dave Goetz, former Union City city manager Don Thornton and Houston Naron Jr., chairman of the Williamson County Board of Commissioners.