Posted: 12/18/07
County moves ahead with Emergency Watershed Protection Program project
By Charlie Warner
Argus News Editor
By a 4-1 vote, the Houston County Board approved the preliminary application for a Emergency Watershed Protection (EWP) Program project. The application will now be sent on to the federal government for its approval.
Once the application receives federal approval and 75 percent of the cost to fund the project, the state has indicated it will pay the other 25 percent of the project, Root River Soil and Water Conservation District Manager Ralph Tuck explained to the county board during the Dec. 11 meeting. Then the project will come back to the county for final approval.
The EWP, which is administered through the USDA, was created to help relieve hazards as a result of the August floods. The project Tuck and his office is working on is the Geraldine Pizzini home, located on the west edge of Hokah between Highway 16 and the Root River. The Pizzini property suffered considerable damage when a large section of the yard washed away during the August floods.
Tuck first brought the Pizzini project to the county board during the Nov. 27 meeting. The estimated cost of the project is $220,000, which caused sticker shock amongst the commissioners. Several board members questioned if the project was cost effective or if it would be a permanent fix.
Commissioner Larry Graf, who had voiced concerns at the November meeting once again brought up concerns. "I just don't feel this project is viable," he said.
Tuck replied that both state and federal officials have reviewed the project and feel it is a viable one. He noted the Pizzini property is valued at $400,000, and the estimated cost of the project is $220,000, which leaves a net of $180,000. Tuck added government officials were comfortable with those numbers.
"The site is a sandhill. Another heavy rain and we'll have more problems. I just don't see doing this project," Graf contended.
Project engineer Willis Goll said an extensive study was conducted and he is confident the design of the proposed project will work.
"The work we will be conducting will be set on rock," Goll explained. "We will be using rip-rap and cutting the slope from a one to one to a one to two, which basically cuts the amount of slope in half. The project will be connected to Mn/DOT's culverts and will improve erosion issues with the Root River considerably."
A motion was made to approve the preliminary application and passed with Graf casting the dissenting vote.
Business Flood Recovery
Loan Program moves forward
The county board approved the final draft of the Houston County Business Flood Recovery Loan Program. The state-funded program includes $4,903,000 for business loans in Houston County, and $97,000 to administer the program. The program will be administered through Southeast Minnesota Development Corporation and the Houston County EDA.
County EDA Director Joyce Iverson reviewed the program with the board. Some of the proposed guidelines include:
ïOriginal eligible use of funds- documented flood recovery costs to enable the business to re-open, which costs are not covered by other sources of funding or financing.
ïBusinesses eligible to borrow funds- manufacturing, service, retail, and commercial entities as well as nonprofit organizations, including those that provide child care and residential care that were affected by the August 2007 flooding.
ïIneligible use of funds- refinancing debt existing prior to August 18, 2007.
ïLoan structure- a direct loan may occur up to 100 percent of documented flood losses, not to exceed $500,000. 75 percent of the loan will be forgivable at the end of 10 years of continuous operation of the business, with the first $100,0000 (of the 75 percent) forgiven at the end of five years, and the balance declining 20 percent per year and totally forgiven after year 10. Twenty-five percent of the loan shall be repayable as a low interest loan with the first payment deferred for three years.
ïAssistance will be primarily for flood damages, although an assistance category will be made available to non-flood damaged businesses to increase the overall economic activity in Houston County.
ïFlood damaged businesses should also be allowed to utilize MIF recovery funds for not only "flood damages" but also to assist with construction, even if at a new location, with special provisions for leveraging other funds.
ïThe program is geared to helping reopen and re-establish businesses to retain and create jobs.
Monument purchase approved
County Surveyor Dick Walter told the board Mn/DOT will be conducting a monument-improvement project on the the state highways in the near future.
"With all the bridge projects we have slated, I think this would be a good time to update our monument and section markers," Walter said. He requested $3,285.35 from the Recorder's Compliance Fund to pay for the new monuments. His request was unanimously approved.
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