Caribou trustees approve interim financing application for Aroostook River crossing project

The Caribou Utilities District Board of Trustees voted to approve an application to the Maine Municipal Bond Bank’s state revolving loan fund to borrow up to $2,192,000 to finance the Aroostook River crossing project, with potential principal forgiveness of up to $767,200.

The vote followed staff remarks that design documents and permitting for the river crossing are complete and the project is nearly shovel-ready, with only minor geotechnical borings remaining. A district water staff member also said the district has started an application to the Northern Border Regional Commission for supplemental grant funding for the river waterline crossing; that application is due later this month and, if awarded, could reduce the amount the district must borrow.

The trustees discussed why the full loan amount is being requested: the district will request the full authorization “so we don’t have to go back and do it again,” a trustee said during debate. Board members asked whether other grants would reduce the loan; staff confirmed that any MBRC award would reduce the loan amount dollar-for-dollar.

Board materials state the loan request covers design and construction costs, transaction costs and related expenses. Staff said permitting and design documents are complete and only minor geotechnical work remains before bidding. No individual bid package or contractor was presented at the meeting.

No formal schedule for construction was adopted at the meeting. Board approval authorizes the district to proceed with the financing application; subsequent financing, grant awards and bidding will determine the project timetable.

The board’s action was taken during the August monthly meeting; trustees approved the application by voice vote.