Toledo secures $16 million OWDA loan for Phase II of Arlington Avenue sewer failure repairs

Toledo secures $16 million OWDA loan for Phase II of Arlington Avenue sewer failure repairsThe Toledo City Council has authorized a $16 million loan agreement to address a massive sanitary sewer collapse, while simultaneously approving over $3.7 million in capital improvements for the city's pump stations and Water Reclamation Facility.

Council approved a $16 million loan from the Ohio Water Development Authority for Phase II repairs of the Arlington Avenue sewer failure.

Councilmember Gaddis requested a community update meeting to address resident questions regarding the ongoing construction and the "giant hole in Arlington."

The council authorized a $1.67 million loan from the Ohio EPA and OWDA for improvements to the Windermere Pump Station.

Over $2.1 million from the Sanitary Sewer Replacement Fund was appropriated for emergency repairs and equipment upgrades at the Water Reclamation Facility.

The Toledo City Council unanimously approved an emergency ordinance on August 25, 2026, authorizing the mayor to secure a $16 million loan from the Ohio Water Development Authority (OWDA). The funds will finance Phase II of the repair of a major sanitary sewer failure on Arlington Avenue. The loan proceeds will be deposited into the city's Sanitary Sewer Replacement Fund, which will also provide $60,000 to cover loan administration fees and miscellaneous project costs. During the meeting, Councilmember Gaddis highlighted the community impact of the infrastructure failure, referring to it as the "giant hole in Arlington." Emphasizing the need for public transparency, Gaddis requested that the administration host a dedicated transportation and sewer update meeting to address resident concerns regarding the upcoming Phase II construction. In addition to the Arlington Avenue project, the council passed a sweeping package of wastewater infrastructure investments. This included authorizing a $1,671,459 loan from the Ohio EPA Water Pollution Control Loan Fund and the OWDA for improvements to the Windermere Pump Station. The city also directed over $2.1 million from the Sanitary Sewer Replacement Fund toward a series of capital projects and emergency repairs at the Water Reclamation Facility. Approvals included $750,000 for roofing repairs, $500,000 for emergency repairs to the grit removal process, $300,000 for the purchase of primary grit tank parts, $300,000 for rebuilding plant pumps, motors, and valves, and $275,000 to replace the Final Settling Tank Drive No. 2 assembly. Furthermore, the council authorized a combined $2,457,000 from the Sewer Replacement Fund and Storm Water Replacement Fund for the purchase or lease of new utility vehicles and equipment.