Many on Washington’s West End have complained in the past that money was not spent on their end of town.

No longer, as Lt. Gov. Becky Skillman and Mayor Larry Haag announced Friday that $4.1 million will be go to create as many as 68 affordable homes on the west side within two years.

“This is a very ambitious project,” Skillman said. “This is going to provide some safe, decent housing for Hoosiers on that 10-acre tract of land.”

As part of the project, the old Tokheim building will be torn down and 10 affordable multi-family units will be built. There is also land for 20 more units in the future.

Six blighted properties around Tokheim will also be rehabilitated, along with 10 vacant lots which will hold new homes and 10 homes in the area will be rehabilitated.

The funds come from the federal Neighborhood Stabilization Program, a 2008 program that allocated $83 million to the state, Skillman said. Washington is one of 30 communities in the state that have received the funds, about 1,500 homes.

“As I travel around the state, I witness that communities have varying needs,” Skillman said. “One problem that every community faces is foreclosure and vacant properties and blight in our cities.”

Haag said the major focus of the project will first take place around the Tokheim property.

Right now, a holding company owns the Tokheim property. The gas pump company left town in 2003, and since then the building has been vacant. Although there have been efforts in the past to bring a company into the building, it has fallen into disrepair.

The parking lot that accompanies the building will also be razed for the homes.

Haag said negotiations have started to purchase the property and other properties around the area.

According to Emily Duncan with the Indiana Housing and Community Development Authority, the $4.1 million has to be spent within two years.

Andrew P. Myszak with Myszak and Palmer Architects, presented plans of the proposed area. The architects have worked on housing revitalization projects in Terre Haute and Evansville. He said the project will be in two phases with Tokheim being first and the surrounding areas later.

During a press conference, Haag thanked the many people who helped get the city the grant. He called the push a “team effort.”

“Everyone in this room is a team,” Haag said. “We are not Republicans, we are not Democrats, we’re not Independents. We are making things happen in Washington and in Daviess County.”

Haag also said the program is voluntary and no one will be forced out of homes for the new homes.

Haag said the process of forming a new housing holding company will continue soon.

“We have to have a committee formed by September,” Haag said.

The money from the grant does not come from stimulus dollars, but rather a federal program that was created before the stimulus. Skillman said out of the 144 communities that applied for the grant, Washington’s was one of the most competitive. She also called the project the “most bang for the buck.”

“The mayor and this city not only have the desire, they have a vision and a plan in place,” Skillman said. “The state is very pleased to be a partner in this project.”

Skillman said after the press conference that Washington was one of the largest grants the state has made in comparison to cities of its size. She also said that it personally makes her feel good to be able to help.

“I know how the residents of the community feel excited when good things are coming to the community,” Skillman said. “We will put a new face on some of our neighborhoods and hopefully keep some of our young people at home.”

The announcement, held Friday at City Council Chambers, brought many city and county office holders.

City Councilman James Haag serves the area where the homes will be built and said the grant “is super.”

“That area down there, a lot of people think ‘Why there?’” Haag said. “When we get this done, a lot of people will know why. It can help a lot of people who can move in and have something they can be proud of.”

Also on hand was State Rep. Mark Messmer, R- Jasper, who serves District 63. Messmer said the announcement was “a good example of how federal, state and local government can work together.”

“It’s a good example of success and great for the city of Washington,” Messmer said. “This is wonderful news and a wonderful opportunity.”