Cedar Rapids council splits on Sun Valley home buyout

CEDAR RAPIDS - Council members Ralph Russell and Justin Shields took a last chance on Tuesday to object as the council on a 6-2 vote approved the buyout of an oft-flooded home in the Sun Valley Neighborhood where the city recently has built a $1.3-million berm to protect homes.

Russell said the berm will protect Brad and Kathy Colton's home at 4264 Cottage Grove Parkway SE from Indian Creek, which has been responsible for four episodes of flooding of their home in recent years, according to city officials.

However, the Coltons' most recent bout of flooding came in June 2014 when dozens of homes in an assortment of spots in the city took on water after a deluge of rain caused flash flooding not attributable in the Coltons' case to Indian Creek.

No other victim of flash flooding in June 2014 is getting a buyout so why should the Coltons? Russell and Shields said.

'A lot suffered devastation, and we didn't help them,” Shields said.

Russell asked Rita Rasmussen, the city's senior real estate officer, how the city's cost for the buyout got to $268,388 when the property valuation was about $200,000, according to Rasmussen.

She said the Coltons qualify for up to an additional $31,000 to move into a replacement house of similar quality plus relocation expenses. The total buyout cost figure includes $25,000 to $26,000 to demolish their house, Rasmussen said.

Russell said the city will lose, perhaps, $3,000 a year in property-tax revenue and will take on costs of $500 to $1,000 a year to maintain what will become a city-owned vacant lot, he said.

The Federal Emergency Management Agency (FEMA) will cover 75 percent of the buyout cost with the state of Iowa paying 10 percent and the city 15 percent. The city's share of about $40,000 will be paid from what remains of the revenue from the city's local-option sales tax (LOST) for flood recovery.

Russell said the LOST funds going to Coltons' buyout are the same funds that are needed to complete the last phases of the Sun Valley project to protect the Coltons' home and the homes of their neighbors from Indian Creek.

Council member Ann Poe took on Russell, and said the Coltons' experience was unique because they had been flooded so many times before. She said the family was unique, too, because FEMA has agreed to the buyout and FEMA and the state were providing 85 percent of the cost of the transaction.

In answer to a question from Poe, Rasmussen said the city's buyout program after the June 2008 flood disaster bought out just under 1,400 properties.

Poe said that was one event. The Coltons have endured several, she said.

Russell said the city's professional staff had recommended against the Coltons' buyout in July.