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<br />The Preferred Plan was formulated under the national economic development <br /> <br /> <br />(NED) objective, with appropriate cons~deration given to environmental <br /> <br />quality (EQ), regional development (RD), and social effects. During the <br /> <br /> <br />formulation of the project,alternativ", plans were investigated which dif- <br /> <br /> <br />fered from the Preferred Plan mainly in canal routing. The Preferred (NED) <br /> <br /> <br />Plan was the best from an environmental standpoint, and is also the only <br /> <br /> <br />plan acceptable to the project sponsor$, the local people, and the State of <br /> <br /> <br />South Dakota. One 'of the alternatives would pass through Red Lake Game <br /> <br /> <br />Production Area causing severe wetland imp;acts. Another alternative would <br /> <br /> <br />sever considerably more farmland which would not be served with project <br /> <br />water. <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />project investment. There is sufficient repayment capacity to repay all <br />reimbursable costs ($173,539,000) over 35 years. No assistance by <br />pick-Sloan power revenues would be required. One fourth of specific fish <br />and wildlife costs for enhancement would be reimbursable in accordance with <br />P.L. 89-72. This amounts to $87,500 for investment, $4,500 for interest <br />during construction, and $10,000 annual OM&R., <br /> <br />The Lake Andes-Wagner Unit will contribute to the NED objective because <br /> <br /> <br />benefits will exceed costs. The RD analysis shows that substantial econom- <br /> <br />ic benefits will accrue to the region (12~county area) and to the Yankton <br /> <br /> <br />Sioux Tribe as a result of the project. The positive social effects of the <br /> <br /> <br />project, which are increased personal income, increased employment, and a <br /> <br /> <br />slowing down of the outmigration trend, are judged to outweigh the negative <br /> <br /> <br />effects of land acquisition and severance. The project includes mitigation <br /> <br /> <br />measures to compensate for the adverse ef~ects on wetlands, woodlands, and <br /> <br /> <br />grasslands, so that the net effect on environmental quality would be <br />, <br /> <br />neutral. <br /> <br />I <br />I <br />I <br />I <br />I <br /> <br />S-iv <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />The Lake Andes-Wagner Unit passes the tests of completeness, efficiency, <br /> <br /> <br />effectiveness, and acceptability. The State of South Dakota, Lake Andes <br /> <br /> <br />Irrigation District, and Lake Andes-Wagner Water Systems, Inc. have taken <br /> <br />an active role in this joint effort and strongly support the Lake Andes- <br /> <br /> <br />Wagner Unit. Considerable contributions ~o the study have been made by <br /> <br /> <br />these nonfederal entities. The District ~pent over $800,000 during the <br />