Relocation of the Town of English, Indiana I. TOPIC Housing and Business Development II. LOCATION English, Southwestern Indiana III. SUBJECT Relocation of the Town of English, Indiana IV. SUMMARY English, Indiana, a rural town of 614 people in Indiana's poorest county, is located near the convergence of three small rivers. In 1990, after having suffered six floods since 1959, three in the last 10 years, the town council suggested relocating the town. The town agreed this was the only feasible way to save the town. (After each flood, fewer businesses re-opened.) The town acquired 160 acres on higher ground. Because the town would have been subject to appraisal and bidding regulations regarding disposition of property if it owned the new land, it recruited the Lincoln Hills Development Corporation (LHDC) as a partner in the relocation project and transferred ownership of the new site to LHDC. LHDC is coordinating the disposition of 30 business and 80 residential lots in the new town site. In addition, LHDC will build and own a 24-unit apartment complex. Several new businesses are also opening. Residents and business owners from the old site were guaranteed lots, some for free and some through negotiated sales. Additional lots will be sold on the open market. All businesses have been relocated except the Post Office. The residential area has been platted, roads and sewers are almost finished, and seven single-family homes have been completed. V. SUCCESSFUL PRACTICE The relocation of English, Indiana, will be the second largest relocation of a town in U.S. history. The prospect of a flood-free town has brought several new businesses and prompted others to expand. All the town's residents will live in new, safe homes. VI. CONTACT Larry Kleeman Executive Director Lincoln Hills Development Corporation (A Community Action Agency) P.O. Box 365 English, Indiana 47118 812-338-2350 812-338-2633 (FAX) VII. CASE STUDY The Problem: English is a rural town of 614 people located in Crawford County, the poorest of Indiana's 92 counties. It lies near the convergence of three small rivers. From 1959-1990, the town suffered six major floods. There was never a loss of life, but each flood did more damage and caused more and more businesses to close. After the last flood, in 1990, the town's only bank estimated it would cost $50,000-$70,000 to repair its building and re-open. The bank seriously considered leaving English. Like many rural towns, English's bank is the hub of the town's economy; without the bank, the town's survival would be in jeopardy. The Approach Adopted: Over the years the town had considered many possible solutions to its flooding problems. The Army Corps of Engineers studied rechanneling the rivers, but this was cost-prohibitive. After a series of town meetings, the town council proposed moving the whole town. The town agreed this was the only feasible way to save the town. How They Implemented The Approach: The town condemned more than 100 homes and businesses in the flood plain. This measure allowed property owners to collect National Flood Insurance Program benefits, which would enable them to rebuild at the new town site. Then the town annexed 600 acres that it acquired with a grant from the Indiana Department of Commerce. The town, however, would have been subject to various appraisal and bidding regulations if it were to transfer lots to homeowners and businesses. It needed a partner. The town did not want to bring in an outside developer, fearing that might drive prices up. Therefore, the town approached the Lincoln Hills Development Corporation (LHDC), a community action agency that had served the English area for 26 years, to be a partner in the relocation effort. LHDC entered into an agreement with the town: The town would transfer the land to LHDC, and LHDC would provide free land to anyone relocating from the flood plain and negotiate sales of the remaining parcels. The relocation involves 80 residential properties and 30 businesses and commercial outlets. In addition to Flood Insurance funds, the U.S. Small Business Administration and the Indiana Housing Finance Authority have provided pivotal funds for rebuilding. Results: All business and commercial outlets have been moved except for the Post Office. The residential area has been platted; roads and sewers are almost completed; and seven single-family houses have been built. At the time of the 1990 flood, the town was nearing the construction phase of a new sewer project. Adapting the plan to the new site has caused delays, but the revised plans will give English its first sanitary sewer line and a sewage treatment plant. In the old site, sewage went to a holding tank and was pumped out and shipped to a treatment plant. LHDC plans to begin construction in Spring 1995 of a 24-unit apartment building. LHDC received funds for this project through a variety of sources, including the U.S. Department of Housing and Urban Development, the Farmers Home Administration, and the Federal Emergency Management Agency. The relocation has allowed several businesses to expand, most notably the new English State Bank building. Several new businesses have come to English, including a pre-school and a restaurant. When the relocation is complete, the old town site will be converted to park land. VIII. PROGRAM SPIN-OFFS The Lincoln Hills Development Corporation will add to its rental property holdings. The community action agency already owns and manages 42 units of rental housing for elderly people in English and 105 rental units for low-income families and individuals in other Crawford County towns. IX. KEY WORDS Business Development Community Action Agency Construction, Businesses Construction, Homes Construction, Infrastructure Flooding Housing National Flood Insurance Program Relocation Public-Private Partnerships