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Hagerstown staff: wastewater treatment plant design near complete; $20M package includes $3M principal forgiveness
Summary
Staff said design for a $20 million wastewater treatment plant upgrade is 98% complete and that Maryland review shows $20M in funding with $3M in principal forgiveness; staff anticipates advertising for construction bids after state review and said loan closing will occur after initial contractor payment.
City staff updated the council on plans to modernize the wastewater treatment plant and on state funding available for the project.
A staff presenter, identified as Nancy, said design work is roughly 98% complete and is currently under review by Maryland regulators. "We are almost complete the design for the $20 million in improvements to the wastewater treatment plant," she said, and added that the project qualified for inclusion in the state's intended-use plan with $3 million in principal forgiveness.
Under the funding structure described, staff said the city expects two loans: a tax‑exempt loan for $17 million and a $3 million component characterized as principal forgiveness. Staff told the council the project will be advertised for construction once the MDE review is complete and that construction could break ground in the fall, with the loan closing to follow the city's first payment to the contractor.
Why it matters: the project is a major capital investment in water infrastructure with partial debt relief from the state; timely completion affects regulatory compliance and service reliability for the city's utility customers.
Next steps: staff requested questions from council and said they will return with the bid and financing documents required for formal council action.
