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State, federal loan programs weigh differently for Dundee wastewater upgrade, Business Oregon adviser says
Summary
Business Oregon staff advised Dundee on two financing paths for a roughly $2 million wastewater upgrade: a federal DEQ loan with lower subsidized rates but stricter Buy America/Davis‑Bacon requirements and a state Business Oregon bond‑backed loan with fewer federal strings but possible interest‑rate timing risk.
Business Oregon staff briefed the council on financing choices for a roughly $2 million wastewater treatment project and urged the city to meet with DEQ to understand federal requirements.
Harvey Chaffee of Business Oregon described the state program as simpler and more flexible than federal funding in some respects: ‘‘Our program doesn’t come with any of those federal strings around environmental reviews or domestic production and construction materials,’’ he said, noting that Business Oregon funds are financed through bond sales and interest rates are set at sale, which creates some interest‑rate risk. He said Business Oregon requires state prevailing wages and signage for projects but does not carry the same Buy America paperwork burden.
Chaffee contrasted that with the Oregon DEQ federal‑assisted program, which offers subsidized, lower interest rates and possible principal forgiveness but requires Davis‑Bacon prevailing‑wage compliance, Buy America domestic‑production documentation and a longer application and review process with limited application windows. He recommended the city meet DEQ staff and complete DEQ’s pre‑application form to get a clearer estimate of potential forgiveness or subsidy eligibility.
Council discussed timing for equipment procurement (some plant equipment is sourced from Japan and has a four‑to‑six‑month lead time) and the reimbursement nature of both programs: Business Oregon generally reimburses eligible costs via invoices submitted during construction, while DEQ typically has fixed application windows and lengthier review. Chaffee encouraged staff to contact DEQ while Business Oregon can assist with the loan application and contract steps.
