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Pequannock wins $3 million principal-forgiveness award for wells mitigation project
Summary
Pequannock officials said the township secured $3 million in principal forgiveness and favorable loan terms from the New Jersey Infrastructure Bank for a wells mitigation project expected to cost about $4.9 million, potentially saving local taxpayers more than $3 million.
Pequannock Township officials announced Dec. 16 that the township has been awarded $3 million in principal forgiveness and a favorable mix of interest terms from the New Jersey Infrastructure Bank to help fund the Wells 1 and 2 PFAS mitigation project.
Township Manager Mr. Brewer said the project currently “stands to be a $4.9 million” undertaking and described the I-Bank award as covering the full $3 million principal forgiveness. He said 75% of the remaining project funds will carry a 0% interest rate and the remaining 25% will carry the NJIB AAA rate, which together could yield “potential savings to the township taxpayers in excess of $3 million.”
The manager credited engineering and project staff and the consultant team for securing the award; he named H2M and individual staff involved in planning and negotiation. The council did not vote on the loan terms at the meeting but received the manager’s update and thanked staff.
Background: the township previously authorized borrowing to cover anticipated costs for a larger contingency. The manager said the final financing and any required I-Bank conditions will be finalized as the project proceeds and that the township must comply with I-Bank inspection and program requirements to receive the assistance.
Next steps: town staff will continue design and compliance with I-Bank conditions and return to the council with formal financing documents and required approvals when ready.
