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Consultants warn SRF/USDA rules could raise costs and delay booster project
Summary
Fairgrounds staff told the council that state SRF and USDA funding programs have Buy-American-like procurement requirements that can increase cost and lead times; consultants recommended evaluating self-funding alongside federal/state programs.
Consultants cautioned that funding source choices affect procurement rules, cost and schedule. "If you're using SRF funding from the state, it requires, it has an AIS requirement, which is, America basically American made steel," one presenter said, noting that USDA funding includes Buy America/Build America (BABA) restrictions.
The team described examples of small-town projects that combined loans and grants; in one case they said USDA financing helped secure forgiveness. "We help them apply for a USDA loan and grant, and they were successful in getting about 75% of that project forgiven," Lucas Hillsburn said while describing a Belle Plaine project.
Consultants recommended the council consider trade-offs: self-funding can avoid restrictive procurement rules and move projects faster but requires local capital; state or federal funding may lower borrowing costs yet impose material sourcing rules and extra paperwork that can slow delivery and raise prices.
