NEW ALBANY, Ind. (WDRB) — The City of New Albany has reached a settlement that ends two lawsuits over the controversial Providence Mill Dam — and orders the city to undo some of its own work.
Under the agreement, the city must remove the tons of rocks it dumped into the dam and cannot contest the dam’s removal. The U.S. Army Corps of Engineers — not a party to the settlement — met with city officials last week to ensure that New Albany’s restoration plans properly address violations of federal law.
The settlement also halts, for now, the state’s legal action against the city. That case began after Mayor Jeff Gahan ordered crews to dump rocks into Silver Creek, calling it "emergency maintenance."
Now, Gahan has been ordered to remove those rocks and allow the dam’s removal to move forward.
That maintenance came just months after 14-year-old AJ Edwards drowned after falling from the dam. His mother, Amanda Malott, spoke before the city council on the day she buried her son.
"Before we started this meeting tonight, we all stood and said the Pledge of Allegiance for truth and justice,” Malott said. “The truth is the dam is dangerous."
The Indiana Department of Natural Resources (DNR) issued a permit in 2023 to the River Heritage Conservancy to remove the dam. But Mayor Gahan sued to stop the removal, arguing it could harm the environment. A court later ruled that New Albany does not own the dam.
River Heritage, which is developing a 400-acre park project on the opposite side of Silver Creek, said it has spent more than $1.2 million fighting the city in court.
WDRB has repeatedly asked Mayor Gahan’s office how much taxpayer money has been spent on the city’s legal battle. In September, the city council threatened to delay the budget if those figures weren’t released.
Councilman Scott Blair said during that meeting,
"There is some information missing for me as far as approving this budget — the first, obviously, is expenses related to the Glenmill (Providence Mill) Dam."
Those numbers still haven’t been made public.
WDRB has heard directly from Mayor Gahan only once in nearly two years. At an event in November , Gahan told WDRB:
“I can tell you this, the dam is fixed, the litigation has been going on for a number of years. I’m looking forward to its resolution. We have some mediation scheduled after three and a half years. I think it’s in a good place.”
After the settlement, Gahan posted a statement on the city’s website, saying:
“I knew from the start that we were doing the right thing to protect public safety and this agreement proves that.”
Further information on the city's website,
The City will allow ECI, when water conditions are safe to enter, to remove the Glenwood Park Dam.
The City will temporarily relocate materials from the emergency maintenance project for use in a future water feature.
The City will be filing a permit for a rock riffle (Rock Arch Rapids-style) structure like others approved throughout the State.
The City and DNR will work together in good-faith through the permitting process on the rock-riffle application for Silver Creek enhancements.
The DNR also released a statement saying,
“The Indiana Department of Natural Resources (DNR) has reached an agreement with the City of New Albany on next steps to promote public safety along Silver Creek by allowing for the removal of the Providence Mill Dam. The City of New Albany has agreed to end legal opposition to the dam’s removal, and the city has agreed by Jan. 1, 2026, to also remove the shot rock it placed in the Silver Creek floodway in 2024. The removal of the dam can now proceed through the DNR permit that was issued in 2021, which is the best action to protect both people and property along the creek..”
There was no mention in DNR’s statement that filling the creek with rocks protected the public. The settlement does say DNR will withdraw its citation for the City's violation of placing shot rock in Silver Creek in August of 2024 within 30 days of the City's compliance with (removal of rocks and dam).
DNR could issue a notice of violation and pursue civil penalties if the work is not completed by Jan. 2.
The U.S. Army Corps of Engineers said in September 2024 that the city’s actions could lead to referral to the U.S. Attorney’s Office. Its latest statement said it will review the city’s restoration plan to ensure compliance with federal law.
A date for removing the dam has not yet been announced, but the city faces a Jan. 1 deadline to remove the rocks and allow the dam to be taken out.
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