Lawyers for the Indiana Department of Natural Resources are asking a Floyd County Superior Court judge to make the city restore the area under the Providence Mill Dam over Silver Creek.
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The controversy started after 14-year-old AJ Edwards drowned there on Memorial Day last year.
In August, Mayor Jeff Gahan ordered rock and boulders to be dumped next to the dam, but he did so without state or federal permits.
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The city of New Albany, specifically Mayor Jeff Gahan's office, sued to stop it. But councilmembers have said they're being kept in the dark over how much taxpayer money Gahan has spent, and are expressing their frustrations with his silence.
Mayor Jeff Gahan took a defiant tone on social media on Thursday as his actions remain a mystery to city council members.