Mayor Marlinda Duncanson accepts stmilus money on behalf of the city to pay for part of the sewer plant upgrade

MIDDLETOWN – Federal officials Monday presented Middletown city representatives with a ceremonial check for $17 million to cover part of the $36.4 million cost of rebuilding its wastewater treatment plant.

The money will come from the federal stimulus package.

Congressman Maurice Hinchey played a key role in securing the federal commitment.

“This facility is going to be able to deal with an upgrading environmental quality here in the City of Middletown,” he said. “It will act to bring in other businesses, other corporate entities, so that the economic circumstances here ae going to continue to grow.”

The New York State Environmental Facilities Corporation will provide financing for the majority of the project. It will kick in $12 million in low-interest loans via the Clean Water State Revolving Fund and refinance an outstanding $5.7 million bond anticipation note held by the city when the project is completed.

The New York State Research and Development Authority will provide the city with the remaining $1.7 million from the state’s Regional Greenhouse Gas Initiative.

When completed, the project will increase the facility’s treatment capacity from six to 8.5 million gallons per day and ensure the city complies with state and federal water quality standards.

Construction began in February and is expected to be completed in February 2011.