Lake Delhi official makes pitch to lawmakers for state help

DES MOINES – The Lake Delhi Recreation Association made a pitch for state assistance in recovering from a 2010 flood that damaged the dam that formed the lake on the Maquoketa River in Delaware County.

Jim Willey, president of the association, told the Senate Natural Resources Committee it will cost about $10 million to rebuild the dam and complete other work necessary before the lake is refilled – hopefully by the spring thaw in 2012.

The loss of the lake is having an economic impact on local property values as well as local governments that rely on property tax revenue, Willey said.

He shared a projection that economic activity will fall off by $17 million as a result of the flood and its impact on recreational activities. When typical economic development multipliers are applied, that's a $120 million impact.

Likewise, rebuilding the dam and restoring the lake will create a $28 million infusion of private investment, which, when multipliers are applied, would be a $200 million impact, Willey said.

Property values have dropped dramatically since the flood. Properties valued at $180,000 to $200,000 are now selling in the $50,000 range, Willey said.

It would be appropriate for state funds to be used for the recovery because the lake – and the recreation it supports – is a statewide resource, he said.

“It's a way of life, a resource for all of Iowa,” Willey said.

The association isn't asking the state for $10 million, Willey said, “but as much as you folks see fit.”

“What we don't get from state will be on the backs of local taxpayers,” Willey said. “It's too much to do ourselves.”

Even $2 million would be a great help. Local property taxpayers expect to bear a share of the cost of restoring the dam, which is estimated to be a $6 million project. That doesn't include the costs of those studies or a fish ladder the Department of Natural Resources will require.

Nor does it include the estimated $4 million cost of refitting the dam to generate electricity, which remains a key element of the recovery effort, Willey said.

The ongoing needs of maintaining the lake could be covered by the revenue realized by restoring hydro-electric generation at the dam. The association has been pursuing that goal since 2007.

The association also is asking the Legislature to change a state law to allow the association to bond for improvements.

Lawmakers had several questions, but offered little indication whether state funds could be found to support the recovery.

“I support getting this back in shape,” said Sen. Joe Bolkcom, D-Iowa City. He encouraged Willey to increase public access to the lake.

A local committee is working on best way to transfer title on the dam to an “unambiguous public ownership,” Willey said. It could be turned over to township trustees, incorporated as a city or annexed by nearby community of Delhi, he said. An attempt to incorporate in 2005 failed.

The state and FEMA representatives in Iowa recognize that the association is a public entity, Willey said. It receives and spends tax revenue, but said the association is working to increase awareness of that.