(KLZA)-- Work is underway to construct the new Pawnee City Assisted Living Facility in Pawnee City.  

AHRS Construction in Bern is building the new $3.5 million project.

The 14,700 square foot structure will offer 22 resident units of assisted living with licensing for 24 beds.

USDA Rural Development is providing nearly $3.2 million to the City of Pawnee City in loans and a grant. The Pawnee City Development Corporation will provide $200,000 and nearly $123,000 has been donated towards the project.

A $2.9 million Rural Development loan will be repaid over 40 years and a $147,500 loan will be repaid over two years. A grant of more than $102,000 was also provided. 

Plans for the project were originally approved in the fall of 2012.