by Blake Giles
Published: Thursday, August 2, 2012 4:37 PM EDT
The state approved two 40-year loans for the construction of the Hard Labor Creek Reservoir.
The loans to Oconee and Walton counties total $32 million and are part of $90.5 million in loans awarded Wednesday by the Georgia Environmental Finance Authority and Georgia Department of Community Affairs.
Another $9.1 million was awarded in direct state investment.
The funds were funneled to eight water supply projects through the Governor’s Water Supply Program.
Oconee and Walton counties will use the money to construct a 1,400-acre reservoir in Walton County. The Walton County Water & Sewerage Authority owns title to the project and an intergovernmental agreement specifies the cost share as 28.8 percent Oconee and 71.2 percent Walton County WSA. The total cost is $90.9 million, with the counties contributing $58.9 million.
On the $20 million loan, Oconee and Walton counties will pay zero percent interest during construction and a single balloon payment (principal and 1 percent interest) at year 40. There will be no closing fee associated with this loan.
On the $12 million loan, Oconee and Walton counties will pay zero percent interest for the first three years of construction; 1 percent for the remainder of construction, accrued and capitalized; and 2 percent during the repayment period once construction is complete. Additionally, the counties will make interest-only payments the first five years of the loan and will pay principal and interest thereafter. There will be no closing fee associated with this loan.