ANDERSON, Ind. (AP) — The state will provide a $600,000 grant for the next
step in a proposed project to build a new reservoir in central Indiana.
The Indiana Revolving Loan Fund has approved the grant to cover the second
phase of a feasibility study for the proposed Mounds Lake Reservoir
stretching from Anderson to Daleville. Plans are to dam the White River to
create seven-mile-long, 2,100-acre lake costing an estimated $400 million.
"Our goal is by spring to have a very good idea of the feasibility, costs,
and community benefits of the proposed Mounds Lake project," Rob Sparks,
executive director of the Corporation for Economic Development of
Anderson/Madison County told The Herald Bulletin.
An opposition group called the Heart of the River Coalition maintains the
reservoir would have adverse environmental, health and economic impacts in
the area about 30 miles northeast of Indianapolis. The group's concerns
include worries that waste from former auto industry plants that might
contaminate the reservoir.
Sparks said the next phase of the project would involve testing the ground
that would be covered by water following completion of a 50-foot-high
earthen dam in Anderson.
"We will be doing core samples, core borings, plus some community
visioning and impact sessions," Sparks told The Star Press of Muncie.
Advocates of the project say the reservoir could boost tourism and help
relieve the impact of floods and drought through a 400-square-mile area of
the White River's watershed.
Sparks said the new study should be completed by next spring and more
public meetings will be held as the project advances.
"This is going to be a community effort," he said.
The proposed lake would be slightly larger than Geist Reservoir near