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<br />7. Is the investn1ent of the money prudent without some understanding of how the capital <br />costs of the project will be provided? <br /> <br />Since the submission of the grant request to the Southwest 1177 Roundtable, additional <br />information of a substantial nature has been obtained from the USDA Rural <br />Development organization. They have stated in effect "that since they are contributing <br />to the cost of the PER and ER (via a grant),that they believe GPW A has a very viable <br />project (or would not have fun ded part of the ER and PER cost) and expect, based on <br />known criteria (low median household income area), and other criteria, they should be <br />able to provide a grant in the range of 75% to 100% of the project construction costs. <br />The portion of the funding not covered by a grant will be covered by a long term (40 <br />year) loan at an interest rate of approximately 4.5%. <br /> <br />This makes the project viable, especially when considering that GPW A has other <br />funding sources to which we may apply to reduce the loan portion of the Rural <br />Development funding. <br /> <br />Rick, please call or email me if you have any questions regarding the information <br />above. <br /> <br />Regards, <br /> <br />J. R. Berry, President, Goodman Point Water Association <br />Cc: Steve Harris <br />John Porter <br />