State forgives $4K of loan to Hadley for Route 9 water main upgrades

Staff Writer
Saturday, September 16, 2017

HADLEY — Just over $4,000 from a nearly $250,000 loan used to pay for municipal water main upgrades on Route 9 is being forgiven by the state.

State Treasurer Deb Goldberg, who serves as chairwoman of the Massachusetts Clean Water Trust, announced Sept. 6 that the state is forgiving $4,119 of the $249,971 loan for the Hadley project.

This is a small portion of $7.6 million in loan principal forgiveness for 24 projects in 18 communities across Massachusetts.

Established in 1989, the trust has loaned nearly $7 billion to improve and maintain the quality of water in the state during that time. The $7.6 million in loan principal forgiveness funds is associated with a total original loan amount of around $214.7 million.

Hadley Town Administrator David Nixon said the money relates to the water line project completed between Whalley and Middle streets in summer 2016.

In that project, century-old water mains, which were seeing failures twice a year and were causing loss of water service and traffic disruptions, were replaced with 2,800 feet of new pipes. Final close-out adjustments for the work will be voted at the special Town Meeting scheduled for Oct. 5.

Hadley already saved an estimated $100,000 by collaborating with the state’s Department of Transportation on the project. Money from the trust is administered on a competitive basis to cities and towns deemed most in need of financial assistance to help pay for infrastructure improvements for drinking water, such as water treatment facilities, and wastewater, including stormwater and sewer.

Goldberg said in a statement that the trust helps to reduce costs to cities and towns.

“Providing these funds to local communities will save the ratepayers money and protect the health of the citizens and the environment,” Goldberg said.

By reducing the loan principal through principal forgiveness, biannual loan payments are reduced, meaning that cities and towns will have capital for other local needs.

The only other western Massachusetts town to receive loan forgiveness is Chicopee, which had $581,470 forgiven.