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Published - Sunday, February 17, 2008
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Counting flood damage in dollars and cents

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When the August flood battered streams, homes and businesses in southeast Minnesota, the disaster also plundered a broader target: the local economy.

Six months later, local business officials say it’s too early to compile a full ledger of the storm’s toll in dollars and cents.
“It’s going to be awhile before we see the full impact,” said Linda Grover, director of the Winona County Economic Development Authority.

In one night, floodwaters destroyed roughly $28.5 million in Winona County property, according to County Assessor Steve Hacken.

The larger picture carries a far larger pricetag.

In October, Winona County officials pegged total recovery costs at $77.85 million. That includes damage to both private property and infrastructure, property buyouts in flood-prone areas, demolition and environmental costs.

Then there are the “hidden” economic costs, like lost productivity for businesses, Grover said. She added that a “trickle-down” effect could harm businesses that weren’t directly affected.

In Rushford, for example, officials say businesses have been quick to re-open — only to struggle in a community that’s still impoverished by the disaster.

Conversely, the flood also brought an infusion of outside dollars from state, federal and private relief agencies.

The state already has allocated $77 million for flood recovery in seven counties, according to the Department of Employment and Economic Development.

The relief funds are helping revitalize the area’s battered economy, Grover said. But she said the economic losses from the flood are far more evident than the gains.

“I’m not seeing the economic boost on the positive side — mostly, it’s a downturn,” Grover said.

Local residents whose jobs were displaced by flooding also are in danger of losing access to a government program to employ them.

The Winona Workforce Center has enrolled more than 100 participants — including some who were unemployed before the flood — to clean up flood debris, using a National Emergency Grant from the Department of Labor.

But federal guidelines only allow victims to work for an equivalent of six months in full-time hours, or up to a wage cap of $12,000.

Those rules could leave workers unemployed in the coming months, said program director Steve Runkle. Runkle said he’s lobbied Rep. Tim Walz, and Sens. Amy Klobuchar and Norm Coleman to adjust the federal guidelines.

Some victims are struggling to repay loans or collect insurance settlements, said Della Schmidt, director of the Winona Chamber of Commerce.

Schmidt said she’s spoken with homeowners who purchased flood insurance before the flood, only to learn they weren’t covered after the fact. One homeowner had more than seven feet of water on their main floor, Schmidt said.

“There’s no question there are families amongst us that continue to struggle,” Schmidt said. “Their recovery is probably months and years to come.”

county assessor’s office: Building Damage estimates

Damage estimates of buildings (not infrastructure or land values) from county assessor’s offices:

Winona County: $28.5 million

Rollingstone Township: $6.9 million

Goodview: $7.7 million

Stockton: $3.9 million

St. Charles: $3.6 million

Elba: $1.5 million

Minnesota City proper: $296,000

Fillmore County: $24.1 million

Rushford city: $23.5 million

Rushford village: $433,685

Mabel city: $113,440

Spring Valley Township: $40,000

Spring Valley city: $20,000

Houston County: $3.7 million

Brownsville city: $671,000

Houston city: $624,000

Money Creek Township: $611,700

Hokah city: $601,700

Hokah Township: $292,400

La Crescent Township: $235,600

Houston Township: $234,700

La Crescent city: $232,900

Mound Prairie Township: $ 67,100

Brownsville Township: $47,600

Caledonia city: $39,700

Mayville Township: $34,600

Caledonia Township: $22,600

Olmsted County: $3.6 million

Rochester: $1.6 million

Eyota: $1.5 million

Dover: $410,000

Byron: $65,000

Steele County: $1.8 million

Includes city of Owatonna and townships of Somerset, Havana, Owatonna and Meriden

Dodge County: $535,000

Includes Kasson, Dodge Center and Mantorville

Wabasha County: $420,0007

Elgin: $390,000

Plainview: $30,000

*Disclaimer: Building damage estimates do not necessarily reflect actual costs to rebuild.

OTHER STATISTICS

421 families in the seven Minnesota counties are working with long-term recovery case managers, according

to Southeast Minnesota Regional Flood Recovery coordinator Peg Winters

As of Feb. 6, southeastern Minnesota has received more than $77 million of the $157 million the state awarded in its special session, including:

Business recovery: $32.25 million

Housing recovery (Quick Start): $7.25 million

Employment recovery: $1 million

Infrastructure recovery: $33 million

Agriculture recovery: $3.7 million

Human services and education: $200,000

Federal assistance

FEMA: $19.5 million to more than 3,800 individual and household applicants; $44.8 million to fund public assistance projects, with the state providing 25 percent

SBA: 805 loans totaling $42 million for renters, homeowners, businesses and nonprofit groups.
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