City of Watsonville Receives $6MM Loan to Build New Landfill

Watsonville, California Infrastructure and Economic Development Bank, Monterey Regional Waste Management District, IBank
Courtesy of the City of Watsonville

SACRAMENTO (December 29, 2022) — The California Infrastructure and Economic Development Bank (IBank) board of directors approved $6 million in loan financing to the City of Watsonville to build a new landfill. The project will allow the city to process waste more efficiently and expand organic waste recycling in accordance with state law.

The board approved the $6 million Infrastructure State Revolving Fund loan for the Landfill Phase IV construction project in Watsonville. The project will include excavating and grading a new 7.1-acre landfill site, constructing a green- and wood-waste processing site, and purchasing a new waste compactor.

Watsonville’s landfill program, which was developed several decades ago, is comprised of four phases. Phases I and II ended in 1997. In Phase III, the city began diverting their waste to the Monterey Regional Waste Management District for processing and disposal. That landfill is located 20 miles away and is expected to close soon.

When Landfill Phase IV opens, it will enable the city to divert waste being hauled to the Monterey Regional Waste Management District, saving the City of Watsonville approximately $180,000 each year. The new landfill will enable more environmentally sustainable practices, contributing to a cleaner environment and reducing the municipality’s consumption of petroleum products.

The city also plans to significantly expand organics recycling in accordance with state mandates that require the diversion of organic waste from landfills (AB 1826 and SB 1383).

“Helping cities fund infrastructure improvements that contribute to a cleaner environment for residents is one of IBank’s top priorities,” said IBank Executive Director Scott Wu. “We’re proud to be part of the solution, enabling cities and counties to comply with new laws that help California meet its climate goals.”

“The City of Watsonville is grateful for the approval of the $6 million low-interest IBank loan which will allow Watsonville to reinvest in our existing landfill infrastructure. The loan allows us to make this much needed capital investment that will help improve the city’s waste management operation in an economical and overall climate-friendly strategy,” said Tamara Vides, Assistant City Manager and Interim Public Works Director for the City of Watsonville.

“City staff had a great experience in working through this loan application. The process was efficient, IBank staff was thorough, responsive, and great to work with. Residents of Watsonville are the beneficiaries of this transaction given that the loan helps mitigate the costs of disposing of our local waste in our own landfill.”

Landfill Phase IV is expected to serve the city for the next 25 to 35 years and will be capable of handling the city’s 60 tons of waste per day. The project is expected to be completed within 12 months from groundbreaking.

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