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Cedar Rapids may need to repay as little as $5.85 million, or 5 percent, of $117 million in federal money intended to guard the east bank of the Cedar River against inundations as bad as the 2008 flood, according to a letter from Iowa’s federal delegation to city officials.
Originaltitel
Grassley, Ernst, and Blum reply to City of Cedar Rapids on flood funding
Cedar Rapids may need to repay as little as $5.85 million, or 5 percent, of $117 million in federal money intended to guard the east bank of the Cedar River against inundations as bad as the 2008 flood, according to a letter from Iowa’s federal delegation to city officials.
Cedar Rapids may need to repay as little as $5.85 million, or 5 percent, of $117 million in federal money intended to guard the east bank of the Cedar River against inundations as bad as the 2008 flood, according to a letter from Iowa’s federal delegation to city officials.
Congress of the United States
Washington, BC 20515
September 7, 2018
The Honorable Brad G. Hart Jeffrey A, Pomeranz
Mayor
City Hall
101 First Street SE 101 First Street SE
Cedar Rapids, lowa 52401 Cedar Rapids, lowa 52401
Dear Mayor Hart and Mr. Pomeranz:
On July 5, 2018, the Army Corps of Engineers announced that the City of Cedar Rapids
was awarded $117 million to complete the Cedar Rapids flood mitigation project. The
award was the result of a joint effort of the entire Towa federal delegation, State of lowa
officials, City of Cedar Rapids staff, and many others.
Since the 2008 floods, the City of Cedar Rapids has consistently urged the lowa
delegation and the Corps to build a portion of the city’s flood mitigation project. Since
the authorization of the Cedar Rapids Flood Risk Management project in 2014, the
federal portion of this project was estimated at $76,232,000 with the non-federal cost
estimated to be $41,118,000.
The Bipartisan Budget Act of 2018 appropriated approximately $15 billion in
construction funds to invest in long-term resiliency by expediting funding for critical
flood-risk management projects in areas that suffer from recurring flood events. Of that
amount, $10.4 billion was allocated to states specitically impacted by Hurricanes Harvey,
Irma, and Maria, with $4.6 billion available to other impacted states. Further instructions
in the Budget Act stated that ongoing construction projects could be completed at 100
percent federal cost, but that new (not-started) projects would be funded up front by
federal dollars, with the normal cost share and applicable cash requirement eligible for
repayment over a 30-year finance period.
After a decade of bipartisan efforts, 100 percent of the City of Cedar Rapids project will
now be provided up front so construction can start promptly and be completed as fast as
possible, In addition, any applicable lands/easements and the like that the city has to
provide will be credited against the $41 million non-federal cost share, as would any
work-in-kind. It is our understanding that most of the nonfederal cost share will be
covered by credits for lands/easements or for design and construction work already
underway. A minimum cash contribution of at least 5 percent of the total cost is required
by law. The balance may be repaid upfront or over a finance period, which begins when
the project is complete. Depending on the terms of the agreement the city reaches withthe Corps, the city could only he required to pay § percent of the total project cost, which
is $5.85 million of the $117 million project,
As you know, a letter from the City of Cedar Rapids, dated August 8, 2018, was
presented to the federal delegation at the “Thank You Celebration.” Staff of the federal
delegation communicated immediately with city staff, answering the letter with the most
up-to-date information, including confirmation that the entire amount of the project, both
the federal and local share of $117 million, would be provided up front so construction
could start and be completed promptly and that the eity would receive a eredit for work-
in-kind and any lands/easements towards the non-federal portion of $41 million.
As the City of Cedar Rapids is experiencing yet another threat of damaging flooding, we
know how important completing this project is for the community. We are thrilled that
the city has secured federal funding to build and complete the entire federal flood
mitigation project, as the award of this funding is above and beyond the normal
expectations of projects through the Army Corps of Engineers. We look forward to
continuing to work with the City of Cedar Rapids on this and other projects to improve
your community.
' Z
i Senator Joni K, Emst
Representative Rod Blum
Sincerely,
hal,
Senator Charles E. Grassley