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Town of Potsdam gets small break on water and sewer anticipation notes repayments

Posted 6/22/22

BY ADAM ATKINSON North Country This Week POTSDAM — The town gained a little breathing room on repayment for two bonds it obtained to pay for construction of the Route 56 water and sewer districts. …

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Town of Potsdam gets small break on water and sewer anticipation notes repayments

Posted

BY ADAM ATKINSON
North Country This Week

POTSDAM — The town gained a little breathing room on repayment for two bonds it obtained to pay for construction of the Route 56 water and sewer districts.

At their meeting June 12, the town board passed two resolutions amending the Route 56 water and sewer bond anticipation notes. The amendments will allow the town to only make interest payments on the bonds until construction on the districts begins. The town had hoped to begin work on the districts this spring, but higher expected costs and other factors are delaying construction until later this year.

“Community Bank agreed to permit us to pay only interest for this year instead of the expected interest and principal payments for each BAN (one on water district and one on sewer district),” Town Supervisor Ann Carvill told North Country This Week.

“Timelines have extended out much beyond what was anticipated - for a variety of reasons. Supply chain problems will impact us. When we signed for the two BANs we thought we would be in a very different situation. It was courteous of Community Bank to permit us to address paying only the interest this summer.”

The bonds, which the town holds through Community Bank, were to cover the upfront costs of construction and installation for services for the two districts which were formed along the Route 56 corridor

The total cost of the sewer district project approved by the board in 2021 is not to exceed $5,511,000. The total cost of setting up the water district is not to exceed $4,802,000. About $4.78 million in grants and loans from USDA Rural Development will help pay for the project.

Construction of the two districts is expected to take about 2 and half years.

The town hopes to spark economic development along the Route 56 corridor by providing municipal water and sewer service there.