Patoka Lake Regional Water & Sewer District receives $3M grant from EDA
Carol Johnson, Southern Indiana Business Report
Construction of a $5 million water infrastructure project that will support industry and business growth in parts of central and southern Orange County will begin in 2023.
The Patoka Lake Regional Water and Sewer District, which provides water to 33 municipal utilities, plans to build a one-million gallon elevated water tank southwest of Paoli. Construction is expected to begin in April 2023 with completion in September 2024.
In August, Patoka Lake Regional Water & Sewer was awarded a $3 million grant from the U.S. Commerce Department’s Economic Development Administration (EDA).
The $3 million EDA investment will be matched with $1 million in local funds and is expected to create 80 jobs, retain over 600 jobs and generate $18 million in private investment.
Doug Merkel, Patoka Lake Regional WSD general manager, said the project has been in the planning stage for about six years.
The current water tank holds half a million gallons but only water in the top third of the tank can be used.
“We are maxed out with the tank we have,” Merkel said.
The new tank will be twice as large and entirely elevated, greatly increasing capacity.
“Right now, we cannot get to the higher elevations in Orange County because of the current tank. There are people building homes on high elevations we can’t get water to,” Merkel explained. “And when we have water main leaks, we run out of water quick. By having another million gallons up in the air, we should be able to sustain water pressure and serve our customers better.”
The utility worked with Lisa Gehlhausen, executive director of Indiana 15 Regional Planning Commission, and John Wetzel, P.E. with Midwestern Engineers, in developing the project details and the grant application.
Patoka Lake Water and Sewer took out a bond in 2021 and refinanced old debt to come up with the rest of the funding. Merkel said if not for the grant providing over half the funding, the utility would be looking at a rate increase.
A design will be sent to the EDA later this month; Merkel expects putting it out for bid in December or January.
Business impact
During the grant process, Gehlhausen and Kristal Painter, Orange County Economic Development Partnership director, worked on the economic benefits of the projects.
Gehlhausen said the new tank will benefit existing businesses in Orleans and Paoli and future growth in the industrial park on the west side of Paoli.
“We know that Infrastructure Systems Inc. is growing and the water supply will be beneficial to them,” Gehlhausen said. “It will serve Jasper Seating in Orleans and help local fire protection services.”
Reynolds Construction is another Orleans business that will benefit.
When a community has a reliable and adequate source of potable drinking water, it gives businesses the confidence to invest there.
“Projects like this are vitally important for the economic growth of our community. This water tower will provide necessary services that support job retention and growth, which allows our businesses to grow and expand.”
Kristal Painter, Orange County Economic Development Partnership
About Patoka Lake Regional WSD
Patoka Lake Regional Water and Sewer District provides drinking water to 33 water utilities scattered across 10 counties in southwestern Indiana. The new tank in Orange County will benefit around 10,000 people.