MOORHEAD, Minn. (AP) — The Army Corps of Engineers has identified 14 flood control options in the Fargo-Moorhead area, ranging from levees and flood walls to ditches. The catch is that to win federal approval, the benefit to taxpayers must be greater than the cost.
Fargo-Moorhead narrowly averted a catastrophic flood this spring. Had the emergency levees failed, officials estimate the damage would have been nearly $2 billion.
The corps is outlining its options this week, starting with a meeting Monday in Moorhead.
Spending $1 billion on a flood control project to prevent $2 billion in damage should be an easy decision, right?
Not exactly, and that’s something Army Corps of Engineers Project Manager Aaron Snyder struggles to explain to local residents.
‘‘You drive through Fargo-Moorhead and you see all the infrastructure and everything that’s out there and you say, ’If there was a flood, almost all of this would be damaged,’’’ Snyder said. ‘‘It’s like — if you can’t justify a project here, where can you justify a project? So it is difficult to explain to the public exactly why the corps does it the way they do.’’
The way the corps does it involves a complex economic analysis.
On one side of the ledger is the project. Let’s say it costs a $1 billion. But, similar to a mortgage on your house, that cost has to be amortized or spread over the life of the project.
On the other side of the ledger is the potential damage from a flood; let’s say $2 billion. Corps Project Management Chief Tom Crump said that number also needs to stand the test of time since, statistically, $2 billion in damage is not expected every year.
‘‘We certainly take that large number into account,’’ Crump said. ‘‘But then we have to use statistics and probabilities to figure out — What are the chances of that event happening in any given year in the future. We take that very large number and convert it to a, ’Well, this is the amount that would happen in any one given year.’’’
That’s where it gets complicated. Corps staff has been gathering economic data about Fargo-Moorhead for months.
Corps economist Kevin Bluhm said up to a dozen people are working on the data. The value of everything that could be damaged is calculated: every building, every street, every sewer. The effect of flooding on every business is analyzed.