ANDERSON -- The state has agreed to fund $600,000 for a critical phase of the Mounds Lake Reservoir project.
The funding, made possible through the Drinking Water State Revolving Fund Loan Program, will help to determine environmental and community impacts of the proposed project.
Since 2001, Madison County has received more than $9 million from the DWSRF program.
“The specifics are still being worked out,” said Christy Denault, communications director for the Office of Gov. Mike Pence.
In a press release, Pence said the Mounds Lake Reservoir would transform Madison and Delaware counties' economies and help to ensure an ample water supply for central Indiana.
“The Phase II evaluation will help us understand the possible impacts of this potential project, and I look forward to receiving the results of the study next spring,” he said.
Proponents of the effort to build a 2,100-acre reservoir announced late Wednesday afternoon that the funding had been secured for Phase II of the project’s feasibility study.
Rob Sparks, executive director for the Corporation for Economic Development of Anderson/Madison County, said the funding will be in the form of a grant. Phase II of the project will include a financial report, environmental review, engineering, community impact and community visioning.
“We are very pleased the state has chosen to support our community effort for this next phase,” Sparks said.
There are a total of four phases for the project, which is estimated to cost about $350 million to $400 million.
The proposed project would include building a 50-foot high dam on the White River east of East Lynn and 18th streets, flooding parts of Anderson, Chesterfield and Daleville.
On Oct. 30, a request for funding went before the Indiana Finance Authority. The board then passed a resolution for the Mounds Lake funding.
The DWSRF Loan Program provides financial assistance to enable the construction of necessary and “environmentally sound” drinking water infrastructures. The program’s funds originate from capitalization grants through the U.S. Environmental Protection Agency.