Copyright 2002 Star Tribune  
Star Tribune (Minneapolis, MN)
August 20, 2002, Tuesday, Metro Edition
SECTION: NEWS; Pg. 3B

LENGTH: 321 words

HEADLINE: State to get USDA grants, loans;
$40.1 million will be used for rural water projects

BYLINE: Joy Powell; Staff Writer

BODY:
Minnesota will receive $40.1 million in grants and low-interest loans to build wells and wastewater treatment systems in 33 rural communities, officials said Monday.

     Details of the projects are to be released today in St. Paul by James Mosely, deputy secretary of the U.S. Department of Agriculture (USDA).

     The $40.1 million is the largest amount appropriated to any state under the $181 billion farm bill that President Bush signed May 13. The new law includes $73 billion in new spending for a variety of programs over 10 years.

     The spending increase includes $360 million for backlogged water projects, some of which were approved two years ago but were never funded.

     The new money for Minnesota is in addition to the $25 million to $31 million typically appropriated for the state from USDA Rural Development for water and economic projects each year.

     The money is aimed at maintaining and developing rural areas. USDA Rural Development is involved in projects that ensure communities have the necessary infrastructure to attract industries and create jobs.

      "Let's face it: If you have contaminated water, the town dies," said Steve Wenzel, state director of USDA Rural Development. "By having these kinds of facilities, it strengthens the infrastructure and rural communities so they can be vibrant and strong and, we hope, grow and prosper."

      Most of the $40.1 million is in grants. The rest is for loans repayable over 30 years at 4.5 percent interest, he said.

     The awards vary, with one of the largest totaling $3.5 million for loans and grants for one city. That community and other recipients are to be identified today when Mosely, second in command at the USDA in Washington, releases details of the projects during a news conference at the State Capitol.

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    _ Joy Powell is at jpowell@startribune.com.



LOAD-DATE: August 20, 2002