The Minnesota Public Facilities Authority (MPFA) has awarded $80 million to the City of Rochester to support a significant upgrade to its Water Reclamation Plant. The funding, announced by the Minnesota Department of Employment and Economic Development (DEED), is part of a $265 million statewide initiative to enhance water infrastructure across Minnesota.
The project, known as the Liquid and Solids Upgrade Project, is critical to meeting stricter state-mandated phosphorus effluent limits while improving efficiency and reducing chemical costs.
Modernizing wastewater treatment
The upgrade will convert the facility’s existing high-purity oxygen and activated sludge treatment systems into a single anaerobic/oxic configuration. This transformation will enable biological phosphorus removal, cutting reliance on costly chemicals. Construction began in late August and is scheduled for completion in December 2026.
“This project is of great importance to the Rochester community as it will provide a clean reclaimed water resource through reliable and efficient wastewater treatment,” said Aaron Luckstein, Deputy Director of Public Works—Environmental Services. “With the planned upgrades, the plant will meet a State-required, more stringent phosphorus limit, improve energy efficiency, reduce reliance on costly chemicals, and address aging equipment.”
Key upgrades and financial benefits
The comprehensive project includes several critical components:
- Additional tank volume, new pumping and mixing systems
- Repurposed blower complex and aeration diffusers
- Treated wastewater reuse systems and odor control systems
- Innovative wastewater heat recovery systems
- Upgrades to existing ventilation and electrical systems
The project is expected to generate significant annual savings, including $230,000 in energy costs and $170,000 in chemical expenses.
The initiative has secured a combination of funding sources:
- $7 million from the State of Minnesota’s Point Source Implementation Grant (PSIG)
- $1 million in loan principal forgiveness for innovative technologies
- $70 million in pre-approved low-interest loans from the MPFA
Additionally, the disinfection basin upgrade received $935,000 through the Community Grants program.
Broader statewide impact
The $80 million allocated to Rochester is part of a larger $265 million package funding water infrastructure projects in 27 Minnesota cities. The MPFA, established in 1987, has provided $6.1 billion for public infrastructure projects across the state.
“Funding from the MPFA positively affects our communities, and it will help them grow and develop for years to come,” said Matt Varilek, executive director of the MPFA. “Keeping our water clean, drinkable, and accessible will always be a top priority as we work to help communities flourish.”
