The expense of an extension of water and sewer lines to a developing business area will be partially paid for by a federal grant of $300,000, according to a joint announcement from the City of Albert Lea and Freeborn-Mower Cooperative Services.

&uot;We’re very fortunate to be awarded a grant for a project like this,&uot; said Freeborn-Mower Cooperative Services President and CEO Tim Thompson, adding the timing was perfect: the project is scheduled to begin next week.

Notification of the grant was received Tuesday from the USDA Rural Business-Cooperative Service Rural Economic Development Loan and Grant Program (REDLG).

As a condition of the grant, Freeborn-Mower Cooperative Services will supply an additional 20 percent, or $60,000 in matching funds for the purpose of establishing a $360,000 revolving loan fund to assist the area in its support of future economic and business development.

As the grant applicant and direct recipient of funds, the cooperative will in turn provide the full amount to the City of Albert Lea at zero interest for 10 years. The funds will help finance the construction of sewer and water infrastructure on East Main Street to Pro Manufacturing and Government Acres.

The total project cost for the city water and sewer extension is estimated at $593,800. An expansion at Pro Manufacturing is expected to create seven jobs.

Repayments of the loan will funnel back into a local revolving loan fund. These funds will be used to support further economic development and business expansion within the community.

&uot;Freeborn-Mower Cooperative Services is delighted to have had its application selected for these grant funds,&uot; said Thompson. &uot;This award will greatly assist the city of Albert Lea in lowering its cash outlay for this vital infrastructure extension. It will also reduce the assessment rates for those businesses that will develop in that area.&uot;

To Thompson, the immediate infrastructure project is not the only reason why this grant is important to the community. The long-range goals of the revolving loan strategy are equally significant.

&uot;Our cooperative’s investment of $60,000 provided a way to leverage $300,000 for the long-term good of the region. Through establishing a revolving loan fund, these funds will turn over several times in support of its continued economic growth and job creation.&uot;