Proposed $300M Anderson reservoir sparks concerns

A proposal to build a 2,000-acre reservoir about 50 miles northeast of Indianapolis is drawing concerns from residents worried about hidden landfills and displacement of businesses and homes.

Madison County officials are considering creating the reservoir in Anderson, saying it would improve flood control, create prime real estate for waterfront housing and boost property values and economic development. The reservoir could also provide bike paths, fishing and other recreational activities for the public.

The project would involve building a 2,500-foot-long earthen dam along the White River at a cost of between $300 million and $400 million. It would flood an area that includes the Mounds Mall property and other businesses and could displace about 400 homes.

The proposal has raised questions about its impact on the environment and how the project would be affected by Anderson's automotive history, which includes former General Motors Corp. sites upstream from the proposed reservoir site.

Initial environmental assessments show small landfills under two shopping centers consist primarily of construction debris and wouldn't prevent the project, said Rob Sparks, executive director of the Anderson/Madison County Corporation for Economic Development.

"I've had eight different firms look at the data," Sparks told The Herald Bulletin.

Test wells installed to monitor groundwater quality at the former GM sites haven't revealed any significant problems with pollution either, city officials say.

The city plans to conduct more detailed environmental evaluation and monitoring.

Chad Pigg, president and CEO of Sesco Group and Anderson's former brownfield coordinator, said the initial study assessed more than 700 of the proposed 2,100 acres that would become the reservoir.

He said only a small percentage of the sites evaluated warranted further investigation.

Indiana's Department of Homeland Security and several divisions of the state Department of Natural Resources would have to review the proposal, as would the U.S. Army Corps of Engineers and the Federal Emergency Management Agency.

Sparks said that if the reservoir proposal moves ahead, any mitigation required by state and federal officials would be subject to public comment.