FEMA denies second University of Iowa appeal on art museum

University of Iowa officials said they are disappointed by the federal government's denial of money to replace the UI Museum of Art at a new location, and they are considering their next steps.

State officials Wednesday announced the decision by Federal Emergency Management Agency officials to deny the UI's second appeal regarding museum funding in the wake of the 2008 flood. The first UI appeal was denied in January 2011 by the regional FEMA office. The second UI appeal for funding was to the federal FEMA office.

UI Spokesman Tom Moore said university officials are reviewing possible next steps or any other available recourse in coordination with the state.

“President (Sally) Mason reiterates her strong support for the UI Museum of Art and for the need for a reliable and safe facility for the university's art collection,” Moore said in the statement.

UI officials seek FEMA funding to replace the Museum of Art at a new location, away from the Iowa River, because university officials say no insurance company will insure the art in that location. The 12,000-piece collection was evacuated from the museum in the days leading up to the June 2008 flood, and some of the art was damaged. The collection is now being displayed and stored in other locations.

After the flood, FEMA ruled the Museum of Art did not sustain enough damage to qualify for replacement funding. Instead, FEMA would help pay to repair the museum building, but not to replace it elsewhere. The UI appealed, arguing the museum was ruined, since art cannot be returned for insurance reasons. The extensive collection is insured for $500 million.

Under FEMA regulations the building is eligible to be replaced if it is not feasible to repair it so that it can function at the same level that it had before the disaster. This denial by FEMA claims the regulations do not apply because the decision not to insure “is a business decision by private insurance companies,” according to the statement from the state office.

“I am disappointed in this decision by FEMA,” Iowa Homeland Security and Emergency Management Division Administrator Mark Schouten said in the statement. “We will work with the University of Iowa to evaluate our options.”

In March, Mason said it's “absolutely realistic” to build a new museum without federal dollars, but that it would require significant fundraising. At the time, Mason expressed hope the appeal would come back in the UI's favor.

State Board of Regents leaders in March gave support to Mason's statements, saying it's a priority to replace the museum. They wanted to work through the appeal process but said they are committed to rebuilding the museum “with or without FEMA funding,” Regents President Craig Lang said.