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IA DNR warns Underwood not to start wastewater plant construction before environmental review; SRF funding at risk
Summary
The city received a construction permit but an Iowa DNR letter clearly stated construction must not begin until environmental review is complete; the letter warned that starting early could jeopardize State Revolving Fund eligibility. Council took no action at the Jan. 14 meeting.
City staff reported receipt of a construction permit for the wastewater treatment plant project on Jan. 14, 2025, but noted an accompanying Iowa Department of Natural Resources (IA DNR) letter that explicitly states the city must not start construction before completing the required environmental review.
The IA DNR letter—highlighted in the minutes as a red‑flag item—warned that beginning construction prior to satisfying the environmental review requirement could jeopardize eligibility for State Revolving Fund (SRF) financing. The minutes record the warning and state “no action taken.”
Council did not authorize construction to begin and recorded no votes or directions to staff on lifting the restriction during the meeting. The minutes do not indicate a revised timeline or next steps beyond the informational update; action to proceed would require confirmation that environmental review is finalized and SRF eligibility preserved.
Because SRF financing is often essential to wastewater projects’ affordability, the DNR caution is consequential to project timing and financing; the council and staff will need to ensure environmental review completion before any construction mobilization or contractor work that could threaten funding eligibility.
