Seaford council approves state SRF principal‑forgiveness offer for Martin Farms water relocation

The Seaford Mayor and Council on Feb. 18 approved a Delaware Drinking Water State Revolving Fund binding commitment letter offering the city a $962,400 loan for the Martin Farms water relocation project, phase 1, with a 20‑year term; city staff said the entire principal will be forgiven on successful completion of the project.

City Manager Charles Anderson and staff told the council the offer comes from the Delaware state revolving fund (Drinking Water Branch) and that the water work will be coordinated with a parallel sewer project in the same neighborhood. According to council materials, the underlying loan was offered at 2% interest initially, but staff reported the current commitment includes principal forgiveness so the city would not owe the principal if the project is completed as required.

Vice Mayor Dan Henderson called the commitment “a major coup” and thanked staff, the finance director and the director of public works for securing principal forgiveness after previous attempts to qualify for similar terms had not succeeded. Henderson said the forgiveness was especially welcome because the city previously had trouble meeting threshold requirements for full principal forgiveness on other loans.

Councilwoman Stephanie Grasset moved to approve the binding commitment and permit the city manager to execute the necessary documents; Councilman Mike Bradley seconded the motion. The motion passed unanimously.

Council staff said there will be no interest charged during construction and that staff will pursue completion of the project so the principal forgiveness will apply. The city packet identifies the project as Martin Farms water relocation phase 1 and notes coordination with sewer work in the area; the transcript and packet did not include a project completion schedule or an itemized budget in the council discussion.