City will sign $9.5 million loan agreement for wastewater improvements

Clovis Mayor David Lansford plans to sign a $9.5 million agreement Friday to improve the city’s wastewater system.

The ceremony will be held at the Clovis Industrial Development Corp. office at 10 a.m.

The agreement is between the New Mexico Environment Department and the city of Clovis and will enable the city to provide wastewater treatment to Southwest Cheese, expand the capacity of the city’s current wastewater treatment plant and purchase a pretreatment facility, according to an NMED press release.

Clovis City Manager Joe Thomas said the agreement has been ongoing for the past 12 months as a result of an incentive program offered to Southwest Cheese by the Clovis Industrial Development Corp. As part of the incentive program, Clovis agreed to purchase the cheese plant’s wastewater treatment plant once it was completed, Thomas said.

According to NMED Acting Deputy Secretary Cindy Padilla, the project is vital to Clovis because it means the city will have adequate wastewater treatment to meet the growing demands of Southwest Cheese and will ensure groundwater quality is protected.

According to the press release, NMED officials have worked closely with Clovis to provide a low-cost financing option that will allow the city to begin construction on the project. Funding is provided through the Clean Water State Revolving Fund, which offers loans to New Mexico communities to protect water quality.

Clovis qualified for a 2-percent loan that will be paid out over a 20-year term.