Estate of James Waldo Hendrickson - Page 30




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          prohibit "all new sewer connections" (sewer tap ban) until it                
          could demonstrate  compliance with all remedial provisions of the            
          consent judgment.  EPA could grant waivers from the sewer tap                
          only under very limited circumstances:                                       
                    Waivers from this sewer ban for new sources may be                 
               granted * * * only if EPA determines that the proposed                  
               connection will eliminate an existing health hazard and                 
               the resulting public health benefit outweighs the                       
               adverse impact of any reduction in wastewater effluent                  
               quality.                                                                
          The sewer tap ban made it very difficult to obtain commercial or             
          residential building permits in Boonville and was considered a               
          high priority issue by the Boonville Board of Public Works,12 but            
          it did not bar new construction elsewhere in Warrick County.  On             
          the valuation date, Newburgh, a suburb of Evansville, was one                
          area in Warrick County where new home construction was active,               
          primarily single-family homes priced between $300,000 to                     
          $400,000.  However, because of its conservative lending practices            
          (described supra pp. 16-19), Peoples could not serve the needs of            
          younger cash-poor borrowers who could otherwise afford to                    
          purchase a $300,000 to $400,000 house.                                       
               Although Peoples was located only 14 miles from Evansville,             
          Peoples generally chose not to engage in lending activities in               
          Evansville, or its surrounding county, Vanderburgh County.                   


            12 Tony Aylsworth, an officer of Peoples since February                    
            1993, served on the Boonville three-person Board of Public                 
            Works from January 1996 until February 1998.                               





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