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New Albany, Indiana – Residents and city council members are demanding answers regarding the escalating costs associated with the Providence Mill Dam project, a site marked by tragedy and subsequent city intervention. For over a year, Mayor Jeff Gahan’s office has resisted providing a detailed accounting of public funds spent on legal fees, construction, and repairs related to the dam, raising concerns about transparency and accountability.
The controversy surrounding the Providence Mill Dam stems from the 2024 drowning of a teenager at the site. Following the incident, the city undertook what was described as emergency maintenance, adding and then later removing rock from Silver Creek. The lack of clarity surrounding the financial implications of these actions, and the ongoing legal battles, has fueled growing frustration within the community. The core question remains: how much taxpayer money has been allocated to the Providence Mill Dam project?
Lack of Transparency Sparks Council Inquiry
During a New Albany City Council meeting on Thursday, February 19, 2026, WDRB’s Richard Essex directly addressed the council, seeking the information the public has been requesting for at least a year and a half. Essex highlighted that the initial emergency maintenance work undertaken by the mayor’s office has since been reversed, further intensifying the need for a comprehensive financial report. Despite repeated public records requests – filed with the mayor’s office, the city clerk, and the city attorney since August 2024 – no information has been forthcoming.
The city’s response to inquiries has been limited to a single written statement. Mayor Gahan, when approached at an event for Indiana Gov. Mike Braun in November, offered a brief comment, stating, “The dam is fixed. The litigation is going on for a number of years. I’m looking forward to its resolution.” However, this statement did not address the fundamental question of how much public money has been spent.
Budget Approval Amidst Spending Concerns
The issue of financial transparency extends beyond the dam project itself. The New Albany City Council recently approved the city’s new budget, but not without significant tension. Several council members voiced strong objections, calling for a detailed accounting of legal fees incurred by Mayor Gahan’s office before approving the budget. Despite these calls, the budget passed with a 5-4 vote, allowing it to move forward without the requested information.
Sixth District Councilman Scott Blair expressed his disappointment, stating, “I was hoping tonight we could hold him accountable,” referring to the mayor. “But we lost that chance on a 5-to-4 vote. Five members decided we’re just going to move forward without that transparency.” The ongoing legal dispute centers on a lawsuit concerning New Albany’s public infrastructure and greenspaces, with the city defending against claims of potential seizure by a private corporation and outside entities.
According to WDRB reporting, taxpayers are also covering the legal fees for both sides of the lawsuit, which sources estimate are nearing $115,000.
The lack of detailed financial information has prompted concerns about responsible spending and the potential for misuse of public funds. Residents and council members alike are seeking a clear understanding of where taxpayer money is being directed and whether This proves being used effectively.
As the legal proceedings continue and the debate over financial transparency intensifies, the community awaits a comprehensive accounting of the costs associated with the Providence Mill Dam project. The next City Council meeting is expected to revisit the issue, and further pressure is likely to be placed on the mayor’s office to release the requested information.
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