The city of Albert Lea is again seeking state funding to connect sewer and water lines to the Stables area. 

The Albert Lea City Council Monday approved applying to the Minnesota Public Facilities Authority for a $3.23 million loan from the Clean Water Revolving Fund/Drinking Revolving Fund for the project.

“That was the plan, really from the late ’90s we have been trying to figure out how to finance this project,” said Albert Lea City Engineer Steven Jahnke.

To receive funding, both water and sewer components of the project must have a high enough ranking on the Minnesota Public Facilities Authority’s priority list. Last year, both components ranked high enough to be funded, but there was not enough funding in the state’s water fund for the city to secure the grant.

Jahnke said projects that ranked ahead of Stables have received funding.

“I’m optimistic but not confident,” he said.

A majority of the 50 homes in the Stables area have seen their sewers fail, leading to a high risk of water contamination.

“It’s a risk to their health,” Jahnke said.

Streets in the Stables area would need to be reconstructed for the project.

Jahnke expects to learn whether the city will receive grant funding by the time the legislative session concludes in late May or early June. Under a best-case scenario, work in the Stables area would begin late this fall, but more realistically it will start in early 2019 and be complete by the end of next year.

Also in this year’s legislative session, Riverland is requesting $10.1 million in state bonding, and the city of Albert Lea is requesting $1.9 million in bonding for a bridge over Albert Lea Lake and $20 million for two phases of development of Blazing Star Landing.