Palo residents swallowed flood’s bitter pill and came back stronger

How to make peace with a devastating flood - build a pond.

That was Dan Diehm's philosophy.

Diehm, who has lived in Palo for 20 years, says he and his wife, Megan, not only lost their home but also their business, Cedar River Garden Center, which was located next door. Their home was one of 423 damaged in the surging flood of 2008.

“It was a tough pill to swallow because we had just renovated our old farmhouse about 18 months before the flood hit,” Diehm says. “We demolished it. We were homeless afterward, bought a travel trailer to live in for the rest of the summer. We eventually remodeled the garage and made a cabin.”

Diehm says he and his wife wanted to turn something negative into a positive, so they put a pond in the spot of their old home. They always wanted a cabin by the water, he says.

Diehm says it took a while, but they also reopened the business in April 2009. The renovation allowed them a chance to expand the retail garden center.

Jesse Grieder, manager of the Palo Mini-Mart, says her boss also took the opportunity to expand his business after the flood forced him to demolish the structure and rebuild. The only store in town not only rebuilt but added an attached sporting goods store and opened eight weeks later.

Grieder says the employees and other volunteers were able to remove all the equipment and products from the store before six feet of water surged down the aisles.

“I didn't break down until I went back into the building and there was so much mud and goo, and fish and snakes,” says Grieder, who has worked at the store since 1986.

Damage estimates from the flood included $22 million to homes, $10 million to city property and $1.75 million to businesses.

Some of the properties were bought out by the city, and those areas were turned into green spaces. The community lost some members, but many stayed and rebuilt. According to the 2010 Census, the population was 1,026. Some of the damaged businesses - Palo Savings Bank, Palo Cooperative Phone Association and the Cedar River Garden Center - all came back in 2009.

The city, which received FEMA and grant funds, is in the middle of a municipal water project to replace the shallow wells that were contaminated by floodwaters. The water tower and water main lines have been completed, and work should start soon on the treatment facility. A sewer project, started before the flood, also has been completed.

A $4.2 million city hall/community center was rebuilt in 2011. It also was funded through grants.