LEBANON, Ind. — One of Indiana’s largest watchdog organizations is calling on state leaders to put a hold on the LEAP Innovation District that the state is building near Lebanon.
“We have big concerns,” said Kerwin Olson, executive director of the Citizens Action Coalition. “The Indiana Economic Development Corporation has already committed close to a billion dollars in taxpayer dollars, but there’s a lot of issues that need to be resolved. IEDC is not being transparent, and without addressing the many issues that are putting tax payers and the environment at risk, this project should not be moving forward.”
Citizens Action Coalition, also known as CAC, is Indiana’s oldest consumer and environmental advocacy group. The organization just released a 19-page report explaining why the LEAP economic development project – which includes more than 9,000 acres of farmland that will be turned into a business park for high-tech industry – is not good for Indiana.
The report says diverting billions of gallons of water from under the Wabash River – and piping it from Lafayette to Lebanon to support the LEAP District – is poor public policy. Olson said that says that policy reflects a misguided belief by some state agencies that Indiana’s water supply is a commercial resource to be exploited for economic development rather than an essential public resource to be protected.
“This project was not well thought out at all,” wrote CAC consultant Grant Smith, who contributed to the new report. “Adding to the water war precipitated by IEDC and state policy between Lebanon and Lafayette, the state has no water policy to ensure this vital resource will be available into the future. IEDC’s arrogant approach to economic development will ultimately diminish water resources, increase costs to ratepayers, and foment water wars between communities and regions. Equally detrimental to state governance, the public, by legislative design, has been cut out of IEDC’s decision-making process entirely.”
“Indiana has really no water policy … and (the IEDC) sort of selected a location that literally has no water for a massive, massive project," echoed Olson during an interview with 13News. “We need to get serious about water planning. Water planning should involve local communities, and communities should have some say over their resources and some coordination with other communities."
Olson said water is only one of many concerns that CAC has following an in-depth study of the LEAP project. The new report says the kinds of big industries that the IEDC is trying to attract to the LEAP District will also require lots of electricity and natural gas, and CAC believes the cost to build new utility infrastructure will fall on taxpayers – not the industries that will use them.
“We’re very concerned about all of the costs that could be piled onto water rate payers, wastewater rate payers, electric rate payers, gas rate payers. That’s is incredibly concerning to us,” Olson said.
The Citizens Action Coalition is also worried about the sheer amount of hazardous waste that could impact Indiana’s air and water from huge factories setting up shop inside the LEAP District. The organization believes the Indiana Economic Development Corporation should discuss all of these issues publicly – not behind closed doors – before the project moves forward.
“This is probably the largest economic development project in the history of the state of Indiana, and it has enormous implications on our natural resources, on public health, on taxpayer and ratepayer wallets. We think the public and the communities should be involved in these conversations in creating a path forward that protects our water, protects our communities and protect our dollars,” Olson told 13News.
CAC’s report also outlines other unanswered questions about the LEAP District and its impacts, including:
- Where will the power come from to serve the energy intensive industries located at LEAP?
- Where will the tens of millions of gallons of daily wastewater from the LEAP district be sent?
- How will future water availability in Indiana be impacted by IEDC plans to ship 100 million gallons per day from the Wabash Aquifer to LEAP, and what will it ultimately cost taxpayers and/or ratepayers?
- How will future water availability in Indianapolis and Hamilton County be impacted by IEDC plans to ship 10 million gallons per day from the Indianapolis region to Lilly and the City of Lebanon, and what will it ultimately cost taxpayers and/or ratepayers?
“It’s evident that the IEDC and the state put the cart before the horse,” Olson said. “We urge the state to hit the pause button and conduct a robust and transparent process with communities, the public, and all interested stakeholders to fully vet how the LEAP district will impact water availability and quality, and utility bill affordability for Hoosier communities and consumers now and in the future.”
13 Investigates contacted the IEDC Monday morning to request a response to the CAC’s new report. The agency did not respond to 13News.
For months, the agency has repeatedly denied requests to meet with 13News to discuss details of the LEAP District. It has also refused to provide dozens of reports produced by a engineering firm that the IEDC is paying $10.2 million to study and design the LEAP District water pipeline from Tippecanoe County. 13 Investigates requested those reports under the Indiana Access to Public Records Act and has filed a formal complaint with the Indiana Public Access Counselor, claiming the state agency is violating state law by withholding the records from the public.
Lebanon Mayor Matt Gentry sent 13News the following statement in response to the CAC LEAP report:
"Frankly, this recent report from Citizens Action Coalition concerning the LEAP Lebanon district is disingenuous and factually inaccurate. Contrary to the CAC report, the LEAP district provides the best opportunity for ratepayers to avoid a significant rate increase. The IEDC is leveraging economic development to fund and solve a regional water problem.
Central Indiana is facing a significant water challenge and will have exhausted its water supply for additional growth by 2050, according to a 2014 Indiana Chamber water study. This is a looming crisis that no community can solve alone. It will require State-level leadership and commitment to ensure a major economic engine of Indiana has the resources it needs for the future. LEAP is not only Indiana's effort to attract high-paying next generation jobs in economies of the future, but it is also an effort to bring additional water supply to Central Indiana that won't burden current ratepayers.
Without LEAP, Central Indiana would still need to find a regional water solution before 2050. It will be far better for the citizens of Central Indiana for businesses and additional economic development to shoulder this cost rather than current ratepayers. The CAC report, repeatedly, claimed incorrectly that Lebanon does not have water available for Eli Lilly's $3.7B investment.
This is factually incorrect. Lebanon has the necessary water supply and utility capacity to serve Lilly's utility needs without any regional pipelines."