News From Terre Haute, Indiana

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July 5, 2010

Dana close to starting on its new sewer project

DANA — As early as next month, the town of Dana hopes to break ground on a new sanitary sewer system that could help revitalize the small Vermillion County community.

The town has secured federal grants and a low interest loan to complete the $6.7 million project, which consists of a wastewater treatment plant, sewers and lift stations.

“By the end of this month, we’ll sign all the papers,” said town board president Tom Gilbert. “We ought to be breaking ground about Aug. 1.”

Currently, homes and businesses rely on septic systems.

The lack of a sewer system not only has prevented growth, it has caused some decline, officials say. Businesses or other structures that burned or were torn down could not be rebuilt. Many of the lots don’t contain enough space for a new septic system that meets state standards.

A few years ago, a grocery store burned and could not be re-built, Gilbert said. “We have to do something,” he said.

Funding sources for the wastewater treatment and collection system include a $3.7 million U.S. Department of Agriculture Rural Development grant, a $2 million low-interest loan through USDA Rural Development and $935,780 through the Indiana Office of Community and Rural Affairs. Federal stimulus dollars have helped bring the project to fruition.

“It’s a big project for a little town,” Gilbert said. 

  Not everyone supports the project, but Gilbert believes the town would continue to decline without it. He hopes to see some growth so that residents could at least buy groceries, gasoline and other essentials in town.

“What that would do for this little town would be amazing,” he said. “You need to go 15 to 20 miles to get anything.”

If companies start locating in the Newport area, those who obtain jobs there might view Dana as “a nice town to move to,” Gilbert said.

The large amount of grant dollars for the sanitary sewer project should help keep sewer rates down, Gilbert said. That’s important because “a lot of people are on fixed incomes, and times are tough.” The town is working with a rate consultant.

The project has already gone to bid, and now it’s a matter of getting financing finalized and documents signed. The project has been divided into three contracts.

“Construction contracts will be signed as soon as funding is confirmed,” said Scott Craig, Dana town board attorney.

The Vermillion County Economic Development Council assisted with the project by loaning the town money for some property acquisition and survey work, Craig said.

The project is necessary because of regulations governing septic systems, Craig said. “It’s very difficult to get a permit to put in a septic system unless you have a lot of property.”

The project will take about a year, said John Magee, USDA Rural Development area specialist. About 277 residential and commercial customers will be served by the system, he said.



Sue Loughlin can be reached at (812) 231-4235 or sue.loughlin@tribstar.com.

 

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