Borden-Sellersburg wastewater project receives final OK for READI funding

Jan. 9—CLARK COUNTY — A regional wastewater project in Clark County has officially received the OK for $1.5 million in funding.

On Friday, the Borden-Sellersburg Regional Wastewater Cooperative project received final approval from Our Southern Indiana Regional Development Authority (RDA) and the Indiana Economic Development Corporation (IEDC) for the use of Regional Economic Acceleration and Development Initiative (READI) funds.

The project will expand the sewer capacity for the towns of Sellersburg and Borden through the creation of a regional wastewater system. The expanded capacity will allow for the development of the Town Center District in Sellersburg, a planned mixed-use commercial district.

Expanded sewer capacity will benefit the Starlight area, which does not currently have sewer service.

Sellersburg Town Manager Charlie Smith said the funds will fully cover the cost of design and engineering, and once that phase is complete, regional partners will determine how to move forward with each segment of the project.

Smith said the wastewater project is "probably one of the most regional in terms of cooperation."

"You've got the Town of Borden and the Town of Sellersburg, the Clark County Commissioners, Indiana Department of Natural Resources, Indiana Finance Authority, USDA, private investors and private stakeholders in Starlight involved in this project, so when you're talking about a cooperative project, this is that in the truest spirit," he said.

As the Town of Sellersburg faces growth, the expansion of wastewater capacity is necessary for the community, according to Smith. The regional partnerships will allow the town to pursue the project "with little to no cost to our current users," he said.

"From a regional perspective, everyone's getting what they need," Smith said. "Because there are so many stakeholders and partners at the table and grants available, it allows us to leverage that to help pay for it."

Smith noted the benefits of the project for the Starlight community.

"Ultimately, the stakeholders in Starlight would like to have sewer service up there, and they can't do that without municipal sewers," he said. "[Businesses such as] Koetter Woodworking need municipal sewers — they're all on septic up there, and they pay a lot of money to maintain those septic systems."

The partnership makes the project doable for the Town of Borden, which has a small customer base for its sewer utility, Smith said.

"For them to take on Starlight as a sewer provider would be extremely expensive and, realistically, not feasible because they don't have a customer base to mitigate that expense to grow their sewer plant," he said.

The Town of Borden will maintain its sewer plant, but as the Starlight area faces growth, the town will direct any overflow to the Town of Sellersburg's utility.

"Ultimately, it's benefitting some of the more rural communities up north, and I think everybody benefits by having a municipal service," Smith said. "And because we can broaden that scope, it helps keep rates low."

The partnership also helps the DNR with sewer service for Deam Lake State Recreation Area — the agency's wastewater treatment facility is outdated and expensive to maintain, Smith said.

The project is in line with the Sellersburg 2040 comprehensive plan as the town establishes the Town Center District and prepares to finish the Camp Run Parkway and American Way roadway projects.

"Town Center is meant to be that Main Street USA design...," Smith said. "It was designed that way, and the new roadway is going to be opening later this year. [The sewer expansion] is the next step to be able to continue on that process."

The next steps of the wastewater project include survey work.

"There's not going to be a lot of property acquisition required for this, but it's just identifying, where's it going to go," Smith said. "What's the path for pump stations, where are they going to go, and then who the users are going to be so that they can be sized appropriately for future users."

The final cost estimate will be determined through the engineering and design phase, and partners will work together to establish how each aspect will be funded.

Indiana Gov. Eric Holcomb recently identified a second round of READI as a priority in his 2023 agenda. Smith said if a second round is approved, project leaders would be interested in pursuing that funding.

"We're really pushing to move forward so when that window opens for that grant opportunity, we will have all the information you need to be able to apply within that program," he said.

The IEDC awarded Our Southern Indiana RDA $50 million in READI funds in December of 2021, and the grant has been allocated to projects throughout Clark, Floyd, Scott, Washington and Jefferson counties.

The RDA voted Friday to submit its final list of projects for review by the IEDC, including the Scott County Youth Sports Complex and projects associated with Destination Madison.

Cory Cochran, executive director of River Hills Economic Development District Planning Commission, is working with the RDA to implement the allocation of READI funds. He said the EDA is "moving into 2023 with a sense of accomplishment."

"I am proud of the diligent work we have committed to producing with the guidance of the IEDC," he said.