CHARLESTON, WV (WOAY) – As a regulatory and legal battle continues over the proposed sale of Kanawha Falls Public Service District, the PSD has been cleared to pursue tens of millions of dollars in state funding.
Kanawha Falls Public Service District has been approved to seek nearly $24 million in state funds for upgrades to areas impacted by the _ floods. The money would come from various state agencies and was approved in the Infrastructure and Jobs Development Council’s July 8 meeting. Although the money has not been granted, it does mean Kanawha Falls is eligible to pursue it.
“Kanawha Falls is in with the cost and funding change to pursue funding other than the FEMA funding that was originally envisioned for this project,” Wayne Morgan said during the meeting.
“The technical review and funding committee recommends that Kanawha Falls be eligible to pursue a 2 million Clean Water SRF Principal Forgiveness Loan, a $20,690,000 Clean Water SRF loan, a $870,000 IJDC grant and a $125,000 IJDC soft cost grant for an estimated project cost of $23,690,000,” Brad Sargent said, describing the request.
The council voted to establish the funding Kanawha Falls is now eligible to pursue.
The decision comes as a sales agreement for Kanawha Falls and two other PSDs between the Fayette County Commission and West Virginia American Water has been tied up in regulatory and legal process for years now.
The funding has not been officially approved, and the proposed sale could play a role in determining whether the PSD will get final approval for the funding.
It’s another twist in a story centered around adequate water and sewer service for Fayette County residents.
Just this week, an engineering firm sued to block the sale over allegations that the $13 million deal negotiated by the Fayette County Commission does not make provision for the $850,000 the PSD owes the engineering firm.
Those are similar claims made by former Kanawha Falls board chair Jonathan Grose, who sent a letter to the PSC saying the agreement does not provide for all the debt owed by the PSD.
Shortly after that, the Public Service Commission ordered a general investigation into the PSD over allegations of inadequate service. Staff also alleged that Grose no longer lived in the district.
Grose resigned from the board shortly after, and the board signaled that it would agree to the sale, a change from nearly two years of opposition.
You can view the meeting here.
Mike Teaney contributed to reporting on this story.
