Download the complete Phase II Application here (note: application is over 75 MB, each section is also found below.)

Phase II Application- Final Application Submitted to HUD

In Dakota Sioux, Minnesota means ‘sky-tinted water.’ Known as the ‘Land of 10,000 Lakes’, Minnesota ties its identity to water as it embraces a half million acres of pristine Boundary Waters flowing north to the Arctic Ocean, the headwaters of the Mississippi River flowing to the Gulf of Mexico, and the gateway to the Great Lakes flowing to the Atlantic Ocean. With 10% of the world’s accessible freshwater contained in Lake Superior, the mighty Mississippi wending through the state, and a cultural identity centered on water resources, Big Water has traditionally referred to these important environmental and economic assets.

Unfortunately in Minnesota, Big Water is gaining a new definition as the frequency and severity of storms increase due to climate change.

During 2011-2013, Minnesota has had six presidentially declared disasters (DR #s 1982, 1990, 4009, 4069, 4113) due to severe storms, flooding, and tornados. These disasters have caused hundreds of millions of dollars in damage and have affected 70 of MN’s 87 counties, containing 90% of the state’s population. The Big Water: Ripples of Resilience application focuses on a most-impacted, most-distressed area of Minnesota with unmet recovery needs (MID-URN) that is located on the tip of Lake Superior. The City of Duluth very conservatively suffered over $100 million in damages from a June 2012 severe storm and flood (DR-4069).

Although much recovery work has been accomplished, there remains unrepaired damage to homes, infrastructure, and the environment. The State of Minnesota will use the MID-URN area to model resilient recovery, complete necessary repairs, and implement a framework for communities for building long-term resilience in the areas of housing, the economy, resource management, energy transition, and health.

The Big Water: Ripples of Resilience application has three projects that synergistically combine to form a holistic recovery in the MID-URN and advance State resiliency goals.

 

Project 1 -Vertical Waterways and City Core Resilience focuses on the eastern part of the MID-URN affected by flash flooding due to water cascading down an 800 foot bluff. This project will implement green infrastructure strategies including extended detention wetlands & reestablishment of natural floodplains, develop resilient power demonstration projects and modify the flood-affected district heat distribution system to provide long-term resilience and greater efficiency, and revitalize neighborhoods through housing and economic development resulting in 325 units of new or rehabilitate housing and stronger local businesses.

Project 2 – St. Louis River Corridor Resilience focuses on the western part of the MID- URN affected by riverine flooding, flat topography, and legacy contamination. This project will repair and remediate 72 acres of park and 55 miles of trails connecting LMI neighborhoods, serve 18,000 LMI residents through relocated and expanded community gathering facilities, and address community drainage issues that resulted in a low-income neighborhood being totally cut- off from the City during the June 2012 flood event. Economic development activities will include a transitional ecosystem services GreenCorps program for LMI individuals and extended detention wetland and drainage that will open remediated brownfields up for redevelopment.

Project 3 – Resilient Housing Solutions in the MID-URN provides assistance to residents across the entire MID-URN area to address remaining flood damaged housing repairs, increased resilience through energy efficiency and Healthy Homes, and buyouts as appropriate to reduce future flood damage. The project will resiliently repair 250 units of housing including small rentals, and permanently remove from harm’s way 25 units.

Each project furthers Minnesota’s goal of maximizing social, economic, and environmental resilience through smart recovery and flood reduction strategies to inform approaches for the entire state. They have been built on a resiliency framework that recognizes the need to address housing, the economy, resource management, energy security, and resident health and well-being if we are truly going to “bounce forward” in a changing climate.

General Section Threshold Requirements- The State of Minnesota is in compliance with all with Section III.C.2 of the General requirements for the NOFA including eligibility, no outstanding Civil Rights matters, consistency with Consolidated Plan and Analysis of Impediments to Fair Housing (Consistency Certification- State Consolidated Plan.pdf), compliance with nondiscrimination and other requirements as specified.

Eligible Applicant- The Big Water: Ripples of Resilience application is submitted by the State of Minnesota, an eligible NDRC Phase 2 finalist. Only one application has been submitted by Minnesota.

Eligible County- All activities will occur in St. Louis County, Minnesota, which was an officially declared county in the qualifying disaster DR-4069.

Most Impacted and Distressed Target Area- All projects and programs included in the Phase II Big Water: Ripples of Resilience application reflect funding that would be applied in the Phase I MID-URN target area. No changes to the Minnesota MID-URN are made for Phase II. Documentation of MID-URN area can be found in MN-PII-AttachI-MIDURN.pdf and in BigWaterMNRoR-ExB-Threshold.pdf.

Eligible Activity- There are three projects included in the Big Water: Ripples of Resilience broken down into 20 activities to provide NOFA requested opportunity to scale and scope. The projects include Project 1: Vertical Waterways and City Core Resilience, Project 2: St. Louis River Corridor Resilience, and Project 3: Resilient Housing Solutions in the MID-URN. Project 1 is a covered project with the mandatory BCA found at MN-PII-AttachF-BCA.pdf. Although not required, BCA information is also presented for Project 2 & 3. Description of activities can be found in MN-PII-ExE-Soundness.pdf. All activities are meet HUD’s eligible activity guidelines.

Proposal Incorporates Resilience- Through these activities, Minnesota will develop its main resilience value of maximizing social, economic, and environmental resilience in the MID-URN through smart recovery and flood reduction strategies, and inform resiliency approaches for the entire state. We will also accomplish the following:

Economic Value- Reduced exposure to potential economic shocks through stabilizing housing and energy costs, & development of economic opportunities for under-represented populations and small businesses

  • Provide healthy, affordable , energy efficient housing to 600 households through adaptive reuse, rehabilitation, and new construction.
  • Integrate transitional and career-pathway job development, and entrepreneurial  opportunities for LMI and minority populations into NDRC activities that extend beyond the grant timeline

Environmental Value- Reduce contribution to, and impacts from, anticipated climate change

  • Improve water quality in 15 trout streams while attenuating flooding in downstream neighborhoods
  • Develop 2.5 MW of renewable energy for critical systems and social infrastructure, and reduce carbon by 10,000 tons of carbon per year (includes efficiency measures)

Social Value- Increase access to quality green space and community amenities adjacent to low- and moderate-income neighborhoods and develop greater connection between neighborhoods (social value)

  • Repair and remediate 72 acres of park and 55 miles of trails connecting LMI neighborhoods
  • Serve 18,000 LMI residents through relocated and expanded community gathering facility

Overall Benefit- The overall benefit of the Minnesota proposal exceeds the minimum 50% benefit to LMI as all activities have an area benefit or are resources directed at LMI individuals. Other benefits can be seen in the impact on resilience in the five layers of resilience that were determined in the MN Phase 1 application:

Housing-  Removal of 25 at-risk homes, resilient repair of 250 homes, adaptive reuse of 4 historic structures (133 mixed-income units), demonstration of resilient housing models with micro-manufacturing to replace lost housing from the June 2012 floods, and building a 50-unit supportive housing project & 150 mixed-use development.

Economy- Revitalization of low-income neighborhood commercial corridors through a Small Business Resilience Revitalization fund and neighborhood-based mixed-use developments, creation of two types of job opportunities targeted at low-income individuals and minorities including a transitional jobs program in eco-system services through Community Action Duluth’s StreamCorps program and career pathway opportunities in energy-efficiency, solar installation, and home manufacturing.

Resource Management- Implementation green infrastructure strategies including extended detention wetlands & reestablishment of natural floodplains to reduce storm flows and associated damage, and repair and remediation of 72 acres of park and 55 miles of trails connecting LMI neighborhoods

Energy- Development of resilient power demonstration projects and low-income solar equity model community garden, modification of the flood-affected district heat distribution system to provide long-term resilience, greater efficiency, and opportunity for conversion to locally derived biomass instead of coal, and energy efficiency assistance to low-income households, small landlords, and small businesses.

Health-  Development of social cohesion and wellness through a relocated and expanded community center serving 18,000 LMI residents, reduction of water and air pollutants through energy and resource management work, and increased access to food through reuse of buyout lots.

National Objective & Tie Back-  1. LMI benefit, 2. Blight, 3. Urgent Need

Minnesota’s NDRC process has come from a dynamically different position than many NDRC finalists, with much of the leadership representing community-based organizations that were on-the-ground working to help people recover after the qualifying disaster. The state’s responsiveness to community needs and the strong multi-level coalition of organizations and governmental agencies that has resulted from the NDRC process, is a major strength of Minnesota’s application, but makes talking about needs more difficult. On one hand, there is the higher level governmental need to quantify impact of the disaster and model future mitigation strategies and disaster recovery program options, to determine policy, and draw lines. On the other hand however, is a deep understanding that no number can capture the story of the disabled vet who three years post-disaster is about to lose water to his house again because he can’t afford to fix his well and the hose he uses during warm weather will soon freeze, or the memory of quietly bringing paperwork to a hospital so that a despondent disaster victim’s furnace can be replaced, a condition of release after an unsuccessful suicide attempt.

Minnesota’s greatest need is to bring these two perspectives together and determine projects that answer, and act on, the essential questions: Who is still affected? What are their needs for recovery? How can we work together to protect our communities and people from the impact future disasters and climate change?

Unmet Recovery Need and Target Geography- Minnesota experienced six presidentially declared disasters in 2011-2012 (DR-1982, 1990, 4009, 4069, 4113, 4131) ranging from an unseasonal winter storm in April of 2013 to severe storms, flooding, straight line winds, and tornadoes in 2011, 2012, and 2013. Threshold is discussed in MN-PII-ExB-Threashold.pdf and documentation is provided for the MID-URN in the checklist found in MN-PII-AttachI-MIDURN.pdf.

The Minnesota target area represents flooding and severe storm damage that occurred in June of 2012 in northeastern Minnesota and northwestern Wisconsin, as 8-12” of rain fell in a 24 hour period on already saturated soils at the tip of Lake Superior (qualifying disaster DR-4069). Over 43% of FEMA dollars obligated to Minnesota due to the six declarations, and 52% of the FEMA public assistance funds, occurred as a result of this one disaster. Especially hard hit was the City of Duluth, where the most significant impact was on vulnerable households in low- income neighborhoods along the St. Louis River and on the 800’ high Duluth hillside overlooking Lake Superior.

Table 1 – Presidentially Declared Disasters Affecting Minnesota in 2011, 2012, & 2013
DR Date P.A. Emergency Obligated Disaster Declaration Type
4131 7/25/13 8,985,258 4,596,713 13,728,793 severe storms, winds, flooding
4113 5/3/13 4,865,626 3,218,156 8,168,120 severe winter storms
4069 7/6/12 38,252,495 5,206,104 44,144,662 severe storms and flooding
4009 7/28/11 8,606,891 2,746,282 11,706,412 severe storms, flooding, tornadoes
1990 6/7/11 1,870,686 2,458,366 4,473,642 severe storms and tornadoes
1982 5/10/11 11,161,360 9,128,830 20,633,792 severe storms and flooding
    $73,742,316 $27,354,451 $102,855,422  

The target area identified as most impacted and distressed is in a sub-county area of St.Louis County, MN, as a result of the Minnesota Severe Storms and Flooding (DR-4069). This MID-URN defined area includes St. Louis River Corridor neighborhoods and the Hillside neighborhood of Duluth variably described as census tracts 51-(3,4,9,10,11,12,13,14, 16,17,18,19,20,22,23,24,26,29,30,33,34,36,37,38,101,102,156,157,158). This area exhibits Most Impacted and Most Distressed Characteristics which affect the ability of the area to recover without further assistance.

For Phase I, the target area met Most Impacted criteria in three ways as illustrated by the following documentation: 127 homes damaged (109 severely), $3.030,875 in FEMA category C- G infrastructure damage, and environmental degradation of trails, stream beds, and slumping critical slopes affecting housing and businesses illustrated by a NOAA report. Most Distressed criteria was met through the 51.68% of residents that have incomes below 80% of AMI, 4,033 renter households below 50% AMI with severe housing problems, and existing environmental distress that includes hundreds of brownfield sites, and the nation’s largest contaminated sediment Superfund site. The target area is located in the Great Lakes largest Area of Concern as defined in the Great Lakes Water Quality Agreement of 1987.

What has become quite clear throughout the NDRC process is a considerable lack of data sources that capture the true extent of the disaster. As an example, the qualifying disaster may look small when FEMA numbers are looked at, but no source has compiled the complete picture. FEMA Public Assistance was slightly less than $40 million, damage and repair to one hydropower facility alone dwarfs this at $90 million, with smaller projects like a railroad spur replacement to a small manufacturer of $1.5 million or $1.6 million in unreimbursed damage to just one park, adding up to millions more.

Since the Phase 1 application, additional information has been received on the amount of damage remaining in the community including to homes, infrastructure, and the environment. The June 2012 northeastern Minnesota floods are considered a “low-attention disaster” and did not receive FEMA Individual Assistance. An unfortunate consequence when FEMA Public Assistance, but not Individual Assistance, is in play for recovery is a focus of local and state governmental agencies on public infrastructure recovery. Often, with limited capacity, there is little focus on post-FEMA-decision data collection at the household level. It is one of the lessons that the Minnesota Resilience Steering Committee has already learned (and will impact future recovery frameworks), when recovery deadlines pass, we stop asking about what needs remain because we do not have a clear pathway for addressing the needs. If there is an assessment, it is often completed by academic interests that aren’t connected with organizations designed to solve the problems. This has been a difficult challenge at the personal level with NDRC. In order to identify needs and discuss best approaches with residents, there is a dynamic tension that is created between problem solving and the potential of raising false hopes for eventual relief to those who continue to live with the impacts of the disaster.

To better understand unmet needs and provide documentation to meet NDRC threshold, a survey was conducted of flood-affected households in the City of Duluth. Of the 324 surveys sent out, 147 households have now responded with an astounding 98% reporting continued flood damage and identifying non-resilient repairs to their homes. From this survey, we learned that the household level unmet needs most often identified included foundations/basements that had damage and are now leaking where they had been previously dry (in some cases causing health concerns), incomplete landscape repair that is now shunting water toward their structures, structural concerns for homes and garages, rooms that remain unfinished after removal of water soaked drywall/plaster or other finishes, situations in which potential sewer backups may now be exacerbated, and cascade affects where a public infrastructure repairs on the hillside may have had unintended consequences for individual property owners. Remaining repair estimates from individual homeowners ranged from $2,800 to $80,000+. Residents in the most frequently flood area (Fond du Lac) also reported willingness for buyouts that were not indicated immediately after the disaster. Over the past three years, residents have found that not only have they been unable to complete recovery work, but their neighborhood has now been labeled as flood-prone eliminating a market and stranding residents and their assets.

Through public meetings and interviews with disaster affected households, we also learned about the impact of cascading shocks and stressors. This included residents that felt initially they weren’t impacted by the flood, but suffered subsequent damage when the saturated clay soils in June dried out by October (USDA drought declaration) only to be followed by a freeze-thaw cycle that damaged basement walls that had been leak-proof for 100 years. By the time the series of events showed damage, all assistance programs were closed. Another example are families that used all their personal resources and went into debt to address flood damage in 2012, and then had to face the most brutal winter in 100 years when the MID-URN experienced 75 days below zero and a doubling of energy prices in 2013-2014.

The significant engagement process involving residents to federal agencies identified a number of gray areas in which unmet needs remain, but there is no agency, organization, or program available, or in many cases gray areas exist where only limited solutions are brought to the table that do not build resiliency in the way that a holistic approach would. An example is when the focus is only on public infrastructure, we lose the ability to develop stronger solutions that might have distributed components on many private parcels.

The Minnesota application approach has been to identify unmet needs in the MID-URN, additional vulnerabilities and stressors, and determine where solutions can model greater resilience for the state. To this end, the four areas of greatest need, and therefore NDRC project development, has been in housing, stormwater management, energy efficiency and transition, and economic revitalization. For housing, projects were developed to address how to finish repair to housing stock, remove units from future damage, and address housing shortages exacerbated by the disaster. Stormwater management looked the two types of flooding that resulted in damage and the associated topography. This includes the flat topography and riverine flooding along the St. Louis River corridor and the flash flooding caused by the 800 foot bluff that makes up the MID-URN hillside. The need to invest in energy transition was indicated by continued damage to household and district-wide systems and the financial and environmental risk this creates plus the opportunity for climate mitigation. Finally, economic revitalization is a considerable area of need as the MID-URN area represents a high poverty area, higher unemployment, and high health disparity, with some neighborhoods (Lincoln Park, Hillside) having an average resident longevity 11 years less than adjacent areas.

Resilience Needs Within Recovery Needs- When determining resilience needs within recovery needs, we must recognize anticipated shocks and stressors. According to the Spatial Hazard Events and Losses Database for the United States (1960-2009), losses from disasters in Minnesota have been mainly due to flooding (40%), severe storms (31%), and wind (12%). Losses due to tornadoes (9%), winter weather (8%), wildfire (0%), and drought & heat (0%) each were also noted. This historical data reflect past risks and for the most part reflects areas of anticipated future risk due to climate change. The Synthesis of the Third National Climate Assessment for the Great Lakes Region completed by Minnesota’s project partner the Great Lakes Integrated Sciences + Assessments (GLISA) states, with high scientific confidence, that extreme rainfall events and flooding may lead to land cover changes (erosion), declining water quality, and negative impacts on transportation, agriculture, human health, and infrastructure.

Minnesota is not only the fastest warming state, but contributes to this change through the high energy-intensity nature of the Great Lakes region where the per capita carbon emissions are 20% higher than the national average mainly due to the dependence on coal as an energy source for electrical production and district thermal systems. For residents, the On the Brink (2013) Home Energy Affordability report shows the county where the MID-URN is located, St. Louis County, has 6,156 households with incomes less than 50% of the Federal Poverty level. This group of households has a home energy burden of 38.8%, with an average annual household shortfall of $2,153 to pay for energy. The affordable energy burden is considered 6% of gross household income. All households in Minnesota that are at 200% of the Federal Poverty level or under have an average burden of 32%. Although a warming climate may indicate greater energy affordability in Minnesota, there are competing factors including experiences like the 2013-2014 polar vortex resulting from record Arctic ice melt that resulted in the coldest winter recorded in over 120 years in the target area.

Needed Resilience Investment- Seeing disaster resilience from a holistic point of view by recognizing that our ability to respond and recover has multiple dependencies, makes determining required resilience investments at the MID-URN and broader state level very difficult. If one overarching realization has been reached during the NDRC process it is that we cannot approach resilience as a “one-off” grant approach, although completing the included projects are necessary for completing recovery and modeling resilient approaches. The State of Minnesota has taken leadership in recognizing and responding to climate change (MN-PII-ExG-LTCommit.pdf) and since the qualifying disaster has taken many steps to begin to align annual spending and decision-making to resilience approaches. Because resilience cannot be a simple equation of just moving a certain number of homes, increasing the size of a certain number of culverts, or creating a certain number of jobs, eventually all state investments need to have resilience as a factor. If we were to try to calculate an order of magnitude for disaster resilience measures in the state that address Phase 1 framing layers, we would be looking at $10s of billions of dollars. Minnesota’s current state budget is $35.4 billion per year. Because of the lack of complete data, it is difficult to give answer the total cost of this disaster to government, residents, and insurance. However, an analysis is presented in MN-PII- AttachF-BCA.pdf, using HAZUS and other sources regarding potential avoided damages and other benefits associated with completing projects under Ripples of Resilience.

 Characteristics of vulnerable populations-  Although the entire MID-URN area meets the definition of low-income with more than 51% of residents at or below 80% of Area Median Income. Special attention was paid to areas that have even greater concentration. One example is the Lincoln Park neighborhood where median household income is $34,847 compared to the $43,799 in Duluth as a whole. One third of the neighborhood lives in poverty and graduation rates are only 83% (and dropping), placing the local high school in the lowest performance category in the state. 16% of residents in the neighborhood, according to the American Communities Survey, have a disability. Approximately 18% of households have no vehicle while most social services, healthcare, and amenities like grocery stores are outside of the neighborhood. The Hillside neighborhood has similar characteristics, however is due to its location near regional hospitals and downtown Duluth has greater access to amenities. It is in the core as identified by these two neighborhoods that Duluth’s homeless population resides. Trends indicate a population shift in the MID-URN toward an older population as the population ages and northern Minnesota does not have an expanding population. This will place a greater burden on households to maintain community infrastructure and emphasizes the importance of quality work-force housing to attract and retain younger individuals. Recognizing this trend has resulted in a focus in Duluth toward rebranding as a community where people can live, work, and enjoy the great outdoors, as younger generations are increasingly choosing quality-of-life for location decisions. Duluth has been successful at this and has invested in creating greater connection to the outdoors through a ½ percent tourism tax which, as of October 2014, has been applied specifically to the MID-URN area. Unrepaired flood damage to parks and trails, however has impeded connectivity and progress in certain areas. Combining flood recovery with a new vision for greenspace and outdoor recreation will advance overall community resilience, provide amenities to low-income neighborhoods, and help the community afford future costs as populations shift.

Appropriate Approaches- The overall approach to Ripples of Resilience, as well as each included project and activity, was based on unmet needs, stakeholder consultation, and the Phase 1 framing of resilience including housing, economy, resources, energy, and health. By embedding each conversation in disaster, and greater community, resilience optimal solutions have been created. This includes using the MID-URN as a living laboratory to deeply interconnect activities in order to create a synergistic impact that not only advances recovery but builds stronger families, neighborhoods, and communities.

For housing, the broader lens has resulted in several approaches that build a holistic solution in the MID-URN, help the state meet housing needs, and provides a future framework for housing decisions. This approach has included determining where housing should no longer exist due to it being at-risk for ongoing damage, but also identifying where historic development (1910s, 20s, 30s) has caused systems issues like homes/buildings that exist over streams and/or have private storm drains that are essential to community drainage but are not maintained. In a community with 47 vertical waterways, and the world’s largest freshwater lake and freshwater estuary, changing development patterns away from at-risk waterways and densifying development can not only protect structures, but can provide greater community resilience through reduction in the amount of infrastructure that needs to be supported into the future, thus allowing better maintenance and less potential for future failure and disaster damage. Buyouts are supported in this proposal with establishment of a Transfer of Development Rights program and policy in the City of Duluth to advance future land use, as well as state housing investments requiring Green Communities Standards which require attention to resilience needs in projects.

The housing approach also looks at how to repair the existing housing stock in a manner that advances health, energy efficiency, affordability, and disaster resilience. This has become a baseline approach for all projects included in the Ripples of Resilience application. Whether it is an individual home or a redevelopment, all housing investments will advance these areas in order to reduce the situation where continual reinvestment needs to be made to meet different issues.

One main area in Minnesota’s housing approach recognized that some of the most at-risk housing units during a disaster are those that are owned by small landlord that do not have access to capital to fix properties or there would not be a sufficient return on investment to bring the units up to an acceptable health and quality level. This was also identified as a concern where there is a split incentive for efficiency improvements to these buildings (landlord pays for improvement, but tenant benefits from reduced bills). One approach is to increase the number of housing units that are in larger complexes supported by professional managers, adequate insurance, and bankability when improvements need to be made. This approach is reflected in a number of Minnesota projects. Another way of addressing this is to support smaller landlords and incentivize improvements to properties through state and local rental rehabilitation programs, this too is included as part of the suite of solutions. Specifically, loan dollars are made available plus energy incentives to increase small property resilience. Research is currently being conducted by application partners on an affirmative marketing and incentives program that could be developed to address the split incentives issue. The NDRC process has brought more stakeholders to the table to help parse issues and develop cooperative solutions. The split incentives issue is an example in which the University, utilities, housing organizations, and government have identified a problem without a current good solution. Minnesota’s integrated approach and partnership building will continue to develop solutions beyond NDRC.

A similar mixed approach was used to address damage to energy systems and identify what a resilient energy future would look like in the MID-URN and how this approach advances the State’s objective to reach 80% carbon reduction by 2050. During our process we worked at the local and state level with the Rocky Mountain Institute to identify actions for each sector (housing, electricity, transporation, etc) to build energy security in a lower carbon economy. This work was overlaid with remaining household, business, and energy system needs. We recognized that grid loss during a disaster most impacts elderly and disabled residents that depend on power for lifesaving devices and/or mobility (elevators, etc). Damage to the Duluth District Energy system, although it did not fail, has an ongoing impact on community resilience. Replacing the system is not a NDRC funded activity, but assisting the buildings that support vulnerable populations in converting their buildings as distribution system conversion occurs is an eligible activity that advances community and state resilience.

As stated at the beginning of the NDRC process, resilience is complicated and there isn’t a silver-bullet solution. Minnesota’s approach is appropriate because it has been developed through a strong process, is integrated, and demonstrates a positive return.

General Management- The Minnesota management structure is broken into general administration and evaluation and project management categories. The Minnesota Department of Employment and Economic Development is the applicant with the City of Duluth as the subrecipient. Duluth LISC and Ecolibrium3 serve as general management partners assisting in the coordination between community organizations, project management, and leading community engagement activities. Capacity information on each general management partner was included in BigWaterMNROR-ExC-Capacity.pdf. Where a partner is both a General Management Partner and Project Partner, all experience is listed under General Management.

To provide ongoing counsel, integration with state and regional efforts and advance best practices from RoR, a Resilience Steering Committee has been formed with representatives from local, state and federal organizations/agencies with specific efforts to include representatives of vulnerable populations and technical experts. Resilience Steering Committee includes representatives from the following organizations: Minnesota Department of Employment and Economic Development, City of Duluth, Workforce Development Council, Area Partnership for Economic Expansion, Minnesota Department of Natural Resources’ National Flood Insurance Program Office, Duluth-Superior Seaway Port Authority, University of Minnesota Energy Transition Lab, NOAA, Arrowhead Regional Development Council, Fond du Lac Band of the Lake Superior Ojibwe, Minnesota Department of Public Safety and Homeland Security and Emergency Management, Ecolibrium3, Duluth Superior Area Community Foundation, Western Lake Superior Sanitary District, US Army Corps of Engineers, Center for Disaster Philanthropy, Minnesota Pollution Control Agency, US Environmental Protection Agency Region 5, Zeitgeist Center for Arts and Community, Minnesota Environmental Quality Board, Minnesota Silver Jackets, and Minnesota Interagency Climate Adaptation Team.

The Minnesota Environmental Quality Board, Minnesota Pollution Control Agency, Duluth Superior Area Community Foundation, Ecolibrium3, and Perkins +Will, will lead project evaluation over the course of the grant. This will include training partner organizations on the RELi Resiliency Action List + Credit Catalog through a partnership with Doug Pierce RELi developer and Senior Project Architect and Senior Associate at Perkings +Will.

The project organizational chart is included as Capacity – Figure 1. All partner documentation including partnership letters, leverage letters, organizational charts, additional experience, and/or partner agreements can be found in MN-PII-AttachA-Partner.pdf. Projects that each partner will participate in are described in MN-PII-ExE-Soundness.pdf, and are identified by number (#X.X).

MN Department of Employment and Economic Development key personnel is Patrick Armon, Grant Specialist Coordinator, who has 16 years of experience managing CDBG grants. Included in this experience are 4 years managing $75 million with the DRGR (Disaster Recovery Grant Reporting System), 3 years managing $950,000 of 2008 storm recovery funds for mostly-Southern Minnesota, and 3 years managing $5.5 million of American Recovery and Reinvestment Act (ARRA) funds. Lead finance staff is Jeff Lynch, Accounting Officer-

Principal, who has worked in that role from 1997 flood recovery to the present. Specific DEED- involved, recent disaster recovery activities have taken place in Wadena, MN as they recovered from a major tornado, and Northwest Minnesota’s efforts to mitigate and recover from frequent flooding of the Red River Valley. Activities related to the recovery programs have included property buy-outs, public facilities, housing conversion, as well as commercial and housing rehabilitation. Project Lead: Patrick Armon  References: 1) Lee Meier,  Northwest Minnesota Multi-County HRA, 205 Garfield Ave, Mentor, MN 56736, lee@nwmnhra.org, 218.637.2431 for flood mitigation in Northwest Minnesota and 2) Michele Smith, 920 Second Ave S, Suite 1300, Minneapolis, MN 55402, michele.k.smith@hud.gov, Community Development and Planning, HUD/Minneapolis, phone 612.370.3019 x2107. Org Chart- MN DEED.pdf  (https://www.dropbox.com/s/4fvwujker8hh3kb/Org%20Chart-%20MN%20DEED.pdf?dl=0).

City of Duluth- In addition to the General Management experience described in BigWaterMNROR-ExC-Capacity.pdf from Phase I, the City of Duluth has experience in grants and financial management and has completed hundreds of projects similar to those proposed under Phase II. The Duluth Finance Department employs a professional staff, provides quality services, and practices financial integrity. Finance implements continuous improvement efforts that streamline operations and reduce costs. Sound financial practices and other improvements led to an increase in the City’s bond rating in 2013. City of Duluth is current on all grant reporting. The City of Duluth is audited annually by the Minnesota Office of the State Auditor and received unqualified independent auditor’s reports on its 2013 comprehensive annual financial report as well on compliance for major federal programs for 2013 and was identified as a low-risk auditee.  An unqualified opinion, often referred to as a “clean opinion”, is the best type of report from an external auditor. Finally, the City has been awarded the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting for thirty eight consecutive years.

After the flood in June 2012, the City of Duluth worked with the Minnesota Department of Natural Resources and the Department of Homeland Security and Emergency Management and received a total of $3.5 million to acquire homes that were substantially damaged in the flood and demolish the structures. To date the city has purchased 22 properties and is finalizing the purchases of one more for a total of 23 properties.  These funds and most work were administered by city staff including, homeowner interfacing, property purchases, and contractor procurement. The city used contractors to complete hazardous material abatement and demolition work. The City will play the same role in the anticipated buyout of 25 additional properties with NDRC funds (#3.2). Project Lead: Keith Hamre Reference: Pat Lynch, DNR, Box 32, 500 Lafayette Rd, St. Paul, MN 55155-1032, pat.lynch@state.mn.us, 651.259.5691

City of Duluth Engineering and Parks will lead several stormwater management projects and stream restoration projects including the development of green infrastructure (#1.1, 1.2, 1.3, 2.1, 2.2, 2.3, 2.4) and bridge installations to reestablish floodplains. After the June 2012 flood City of Duluth Engineering completed projects with funding from FEMA, MNDOT State Aid Transportation, and the Board of Water and Soil Resources including repairing/replacing flood damaged infrastructure – utilities, roadway and bridges, and providing stream/slope stabilization. The projects generated from the flood required many similar activities to NDRC proposed projects including damage identification, assessment, documentation, prioritization of work, and assignment of design/correction. Engineering completed projects where work was done in-house and/or managed contracts including procurement processes involving Request for Proposals/bids, council approval, contractual obligations, proper documentation for construction activities, safety, pay requests, close outs.

Parks & Recreation will implement several green space; restoration of flood damaged riparian habitats on four cold water streams (#2.1, 2.3, 2.4, 1.1); repair hiking/biking trails of regional significance that provide connectivity through neighborhoods (#2.4); improve neighborhood parks throughout the west Duluth neighborhood (#1.1, 2.1, 2.3, 2.4, 2.5) ; and facilitate a public/private partnership to build a comprehensive community center to serve three west Duluth neighborhoods (#2.5). Parks employs 10 full time staff, three part-time staff and a fulltime volunteer coordinator that has created a recognized model for parks “ownership and stewardship” for neighborhood residents. Duluth boasts 128 parks covering over 11,000 acres of land. The City Parks Department implements restoration and recreation projects in concert with the City of Duluth Engineering and Facilities Management, ensuring that project meet the needs of recreation user, residents and the general public. For example, Duluth received a MNDOT grant to make multiple improvement to Highway 23 that include connections to the Munger Trail, improved pedestrian crossings, multimodal nodes, and access management that will support biking, walking, and improve connectivity to Spirit Mountain, the Zoo, and the River. Engineering and Parks Lead: Jim Benning Reference: John McDonald, District 1 State Aid Engineer, 1123 Mesaba Ave, Duluth, MN 55811, John.p.mcdonald@state.mn.us, 218.725.2705

City of Duluth- Property and Facilities Management projects often require many similar activities to NDRC proposed projects including facility assessment, capital planning, documentation, prioritization of work and assignment of design/correction. Completed projects where work was done in-house and/or managed contracts include procurement processes involving Request for Proposals/bids, council approval, contractual obligations, proper documentation for construction activities, safety, pay requests, change orders, and close outs. The NDRC projects will follow this model with the addition of a Minority Opportunities Officer assisting with affirmative marketing to WBE/MBE. Facilities will lead the Memorial Community Center and Community Safe Room construction projects (#2.5-6) and coordinate solar installations on the gas and water system building and water reservoirs for resilient water pumping (#1.11). Property and Facilities Management manages over 40 construction related projects each year and has a professional project management group led by the Manager and City Architect. Projects range in complexity from $25,000 to $12,000,000, and are delivered using a variety of construction project methodologies including general contractor (design, bid, build), construction management, and in-house design-build. Project Lead: Erik Birkeland Reference: Tony Mancuso, St. Louis County Director of Property Management, 100 N 5th Ave W, Duluth MN 55802, mancusot@co.st-louis.mn.us, 218-725-5085

Duluth LISC has coordinated and implemented the At Home in Duluth Neighborhood Revitalization plans, administered HUD Section 4 capacity building funds, provided predevelopment funds for new development, administered Duluth At Work and federal Financial Opportunity Center funds, and assisted in bringing Housing Tax Credit and New Markets Tax Credits to the community. Duluth LISC has been in operation for 17 years resulting in over $76.2 million in LISC funds invested in Duluth’s neighborhoods, homes, service providers and businesses. Duluth LISC will provide predevelopment loan funds for the Health District Mixed- Use Development (#1.8) and community engagement leadership. Duluth LISC is a program of the nation’s largest community development intermediary. Project Lead: Pam Kramer Reference: Rick Ball, 3229 Minnesota Avenue, Duluth, MN 55802, rball@duluthhousing.org, 218.348.1953.

Ecolibrium3 has lead application preparation for NDRC and has established several successful programs to increase resilience in the State of Minnesota including the Duluth Energy Efficiency Program which completed 326 home retrofits during a 3-year EPA Climate Showcase Communities project. Ecolibrium3 is currently advancing solar development through a DOE Solar Market Pathways grant. Ecolibrium3 will serve as a general management partner, coordinating with partners and serving as community liaison. As a member of the collaborative “one-stop rehabilitation shop,” the Housing Resource Connection, Ecolibrium3 will coordinate Resilient Housing Rehabilitation (#3.2), lead the solar and business energy efficiency program (#1.11), and serve as the developer for the Resilient Housing and Micro-manufacturing Demonstration Project (#1.9). Ecolibrium3 Key Personnel: Jodi Slick Reference: Andrea Denny, 1200 Pennsylvania Ave NW, Washington, DC 20004, US EPA, denny.andrea@epa.gov https://www.whitehouse.gov/blog/2013/04/30/ecolibrium

Duluth Superior Area Community Foundation led the philanthropic response to the June 2012 flood by convening the Grantor’s Alliance, a group of funders, non-profits and emergency groups, pooling strengths, identifying community needs, and acting together strategically to recover. The DSACF is one of 17 mid-western community foundations taking part in the Philanthropic Preparedness, Resiliency, and Emergency Partnership (PPREP). DSACF will bring grant resources and their program evaluation expertise to RoR. They will serve as a liaison to other funders and communities for distribution of best practices and serve on the project evaluation team. Project Lead: Holly Sampson, President Reference: Nancy Beers, Center for Disaster Philanthropy, nancy.beers@disasterphilanthropy.org, 507.990.5307.

Perkins + Will was a core contributor in 2014 to the RELi Resilient Design rating system and guideline, a national consensus standard (ANSI) focused on climate adaptation and resiliency financing. RELi underpins the Green + Resilient Finance Standard used by businesses and institutions to negotiate lower cost loans, bonds and insurance rates. Perkins+Will has used RELi to assist the Minnesota Pollution Control Agency in developing best management practices for the Green Step Cities program. Currently, Perkins+Will is working with the District of Columbia on a climate adaptation plan and piloting RELi with Christus Spohn Hospital located on the gulf coast of Texas. Perkins+Will will train project partners on the RELi system and advise the Resilience Steering Committee on financial evaluation methods that can assist in quantifying financial benefits to resilient actions. Evaluation Lead: Douglas Pierce Reference: Laura Millberg, Minnesota Pollution Control Agency, 520 Lafayette Rd. N., St. Paul, MN 55155-4194, laura.millberg@state.mn.us, 651.757.2568

Minnesota Pollution Control Agency played the role of first responder during, and in the aftermath of, the qualifying disaster including identifying potential hazards, working with waste- water plant operators, employing and overseeing clean up contractors, sampling water quality and providing public information. Once the emergency receded in intensity, agency staff helped document impacts to streams, bridges and infrastructure. Agency staff continues to be involved in the rehabilitation of the St. Louis River and area streams. The agency is involved in a multiple stakeholder project on Knowlton Creek and worked on documenting impacts to Kingsbury and Mission Creek. As part of an overall project focused on the condition of watersheds in the urban area, the agency also funded a bed sampling site on Mission Creek and installed six new stream flow gauge sites, four of which are in the project area. These stream flow gauge sites will provide data to calibrate a sophisticated watershed model that can be used to predict flood peaks and stream response to a range of precipitation conditions expected with a changing climate. The agency and its staff are involved in a range of projects that run the gamut from site remediation and construction to soft solutions involving policy development, behavior change and environmental education and civic engagement. One example of a construction project managed by the agency is the rehabilitation of a mile long section of the lower Flute Reed River in Cook County, Minnesota. This project was funded by a $540,000 Great Lakes Restoration Initiative grant. It was recognized by EPA as a model for community collaboration. The MPCA will lead a collaborative permitting process for stream and wetland projects included in the NDRC application (#1.1, 1.2, 1.3, 2.1, 2.3, 2.4, 2.5). As coordinators of the MN’s Interagency Climate Adaptation Team and MN GreenStep Cities program, a first pilot site for the RELi Resiliency Action List, the MPCA will also participate in ongoing project evaluation and best practice distribution. Evaluation Lead: Paul Moss Stream Project Lead: Bryan Frederickson Reference: Alex Schusler, Great Lakes Restoration Initiative, U.S. EPA, Region 5, Water Division Schusler, Alex@epa.gov, 312.886.1977

1Roof Community Housing led the development of Steve O’Neil Apartments (2014) consisting of 44 units of permanent supportive housing and 6 units of emergency shelter for homeless families with dependent children. As co-developer, 1Roof negotiated the purchase of 7 parcels (6 owners), led the development team and fundraising, pre-development work including Phase 1 and 2 reviews and environmental clean-up, and managed construction and closeout. This project just received the first Energy Star certification for a new construction multifamily high rise in Minnesota. 1Roof will lead redevelopment of the Esmond building (#1.5) and serve a co-developer on the 4th  Street property (#1.8). As a NeighborWorks agency and partners in the Housing Resource Connection, 1Roof will administer the amortizing loan portion of (#3.2). Rehab Lead: Cliff Knettel Redevelopment Lead: Jeff Corey Reference: Warren Hanson, Greater Minnesota Housing Fund, 332 Minnesota St, #1201, St. Paul, MN 55101, whanson@gmhf.com, 651.221.1997 x107

American Indian Community Housing Organization (AICHO) has completed an $8 million historic energy efficient renovation of a former YWCA into 29 units of affordable housing and an American Indian Center. Renovation included state and federal tax credits, 1602 funds, and multiple federal, state, tribal, and foundation sources. The project is fully leased with formerly homeless individuals and families. Within the last 3 years, AICHO has purchased the attached building and converted it into commercial offices, day care center, rooftop garden, and coffee shop. AICHO will serve as developer and owner of mixed-use building in Lincoln Park, creating 10 units of housing for low-income households and revitalized commercial space (#1.4). Project Lead: Michelle LeBeau  Reference: Rick Smith, MN Housing, 400 Sibley St., Suite 300, St. Paul, MN 55101, Rick.Smith@state.mn.gov, 763.229.9440

Boisclair Corporation will serve as developer and owner for the Historic Armory Adaptive Reuse project (#1.7) which includes historic preservation of the Duluth Armory for commercial space and new construction of a 48 unit (40/60 LIHTC) housing project built to LEED and MN Green Communities standards. Since 1974, Boisclair has been on the forefront of real estate development and construction in the areas of multi-family housing, commercial, office and retail space. Their projects include the first (on Congressional record) demonstration of Section 8 leased subsidized housing (1974) to the internationally recognized mixed-used River Place development in Minneapolis ($120 Million). Boisclair is a 100% woman owned S corporation. Key Personnel: Lori Boisclair Reference:  Scott Fedie, Associated Bank, National Association Commercial Real Estate Division, 45 S. 7th St, Suite 2900, Minneapolis, MN 55402,scott.fedie@associatedbank.com, 612.359.4432

Center City Housing will develop and build 50 units of supportive affordable housing for three of the most fragile and vulnerable sectors in Minnesota- people who are presently homeless, those at high risk of becoming homeless and those living in unsafe substandard housing (#1.5). The modest 1-bedroom apartments will be in a handicapped accessible building with 24/7 staff and supportive services utilizing “housing first” principals. CCH co-developed the Steve O’Neil Apartments (see 1Roof), owns the building and operates the supportive components. Project Lead: Rick Klun Reference: Warren Hanson, Greater Minnesota Housing Fund, 332 Minnesota St, #1201, St. Paul, MN 55101, whanson@gmhf.com, 651.221.1997 x107.

Clean Energy Group is a nonprofit organization working with state clean energy funds and other funders to establish resilient state clean energy policies, regulations, and programs. CEG has implemented the Resilient Power Project (RPP) designed to help states and municipalities develop new partnerships, support new public funding tools, connect public officials with private industry, and work with state and local officials to support greater investment in power resilience. Under the RPP, Clean Energy Group will provide technical assistance to the State of Minnesota and City of Duluth for successful demonstration projects of solar plus storage (#1.10), as well as assist in policy and project evaluation. Project Lead: Seth Mullendore, Reference: Todd Barker, Meridian Institute,1800 M Street NW, Suite 400N, Washington D.C. 20036, tbarker@merid.org, 202.256.1369.

Community Action Duluth StreamCorps is a transitional jobs program for under and unemployed individuals. Stream Corps completed trail restoration projects in Duluth parks after the 2012 flood, built rain gardens and has completed a 3 year project planting trees to reduce erosion along Duluth Streams. Their work includes a 4 year track record with numerous partners including City of Duluth, individual landowners, and the Duluth Public Schools. Through 2014, they have planted 18,000+ trees, built 33 rain gardens, installed bioswales and rain barrels, removed 8 acres of invasive species, involved 175 landowners, and enhanced/restored 22 miles of streambank. Through $680,000 of Great Lakes Restoration Initiative funding, StreamCorps has trained and employed 14 people, successfully managed the funding, and exceeded production outcomes. In addition, CAD launched a Financial Opportunity Center in 2011 utilizing a Federal Social Innovations Grant from Duluth LISC to provide a bundled service model to increase financial stability of low income people. FOC outcomes through 2014 include: employment obtained by 214 people ($10.67 average wage), credit scores increased for 240 people (average of 52 points), increased net income of 196 people (average of $505/month), increased net worth of 194 people (average of $7,338), and enrollment of 246 people in work supports (total of $287,092). The Stream Corps will provide environmental services similar to above as part of projects (#1.1, 1.2, 1.3, 2.1, 2.2, 2.3, 2.4, 3.1, 3.2) and offer wrap around financial services to participants. Project Lead: Angie Miller Reference: Brian Frederickson, MPCA, 525 Lake Avenue South, Suite 400, Duluth, MN 55802, brian.frederickson@state.mn.us, 218.723.4663

Duluth Housing & Redevelopment Authority (HRA) is the public housing agency for Duluth. The HRA will serve as main rehabilitation lead for the Resilient Housing Rehabilitation (#3.2) program including managing loan funds, conducting inspections, developing scopes of work, and applying Healthy Homes criteria to projects. The HRA will also conduct relocation activities for any affected parties (#1.5, 1.8), provide buildable lots in a HOPE VI redevelopment for demonstrating resilient housing (#1.9), and acquisition services for (#1.8). The HRA operates numerous housing rehab programs: Single family rehab, multi-unit rehab; and MURL and NSP home ownership programs. The HRA manages funding from the City, the State of Minnesota (MHFA and GMHF), and the Federal Department of Housing and Urban Development.  The HRA assists approximately 150 households per year, has coordinated 61 resident relocations and 4 business relocations in the past 6 years, redeveloped 117 units, has acted as a catalyst for significant mixed-income development through HOPE VI, and has assisted in avoiding the foreclosure of 154 low-income units at the Gateway building. Project Lead: Jill Knutson-Kaske, MPH, Executive Director Reference: Keith Hamre, Department of Planning and Construction Services, 411 W. 1st St, Duluth, MN 55802; khamre@duluthmn.gov; 218-730-5297.

 

Entrepreneur Fund The Entrepreneur Fund has worked with clients who have undergone distress from natural disasters and worked with them to get their business back on track. Natural disasters include: 2007-Ham Lake Fire on the Gunflint Trail, 2012-Floods in Duluth, 2015- Tornados in Brainerd Lakes area. The Entrepreneur Fund’s most recent example was with Syvantis Technologies in Brainerd. Syvantis is a national technology and accounting service firm in Brainerd, MN. After the 2015 tornado, the Entrepreneur Fund quickly deployed a small loan to provide working capital to clear the property, pay staff, get servers back on track, and resume regular business operations. The result was that all staff were able to maintain employment and the business was able to operate with minimal disruption less than 1 week following the disaster. The Entrepreneur Fund provides small businesses to be proactive in improving resiliency in the following ways: 1) Creating a disaster plan including consulting services and Be Strategic: Grow Your Business program providing a concise and simple training to store data on servers, take pictures of assets, store critical data off-sight, and have lines of communication set up in the event of a disaster. 2) Growing markets outside of the region. A key to business strength is diversity in income streams outside of our region. The northeast region of Minnesota is fraught with deeply cyclical economies – mining, paper industries, tourism (weather related), and others. The Entrepreneur Fund provides programs (Economic Gardening, Be Strategic: Grow Your Business) to identify and pursue outside markets. In the case of Syvantis, if customers were based in Brainerd they would have been down for business even longer because their customers would have been recovering from the damage as well. The Entrepreneur Fund will lead neighborhood resilience and revitalization efforts as the primary lender and service provider for the Lincoln Park Revitalization Fund (#1.10), where the Entrepreneur Fund currently leads the Advancing Lincoln Park mixed stakeholder group. Project Lead: Mike Lattery Reference: Janell Riley, Syvantis Technologies, 13760 Bluestem Court, Suite,150, Baxter, MN 56425, Janelle.riley@syvantis.com, 218.822.5701

Ever-Green Energy provides operations, project development, and management services to the Energy Park Utility Company (EPUC), which is owned by the Saint Paul Port Authority. EPUC is the energy utility that serves the 218-acre Energy Park community in Saint Paul, MN. The system was initially constructed using two-pipes to deliver either heating or cooling to the buildings. Although useful and cost-effective during initial service, this severely limited the services to the buildings and made the system less reliable and more vulnerable to weather events. In order to resolve these limitations, modernize the system, and improve energy efficiency, the system was upgraded to a four-pipe distribution system in 2013 by Ever-Green. This upgrade included central plant conversion, distribution changes, and customer building conversions. Ever-Green will complete a similar system conversion on the flood-affected downtown district heating system in Duluth (1.12), serving as the system manager on behalf of the City of Duluth. Project Lead: Jim Green Reference: Louis Jambois, St. Paul Port Authority, 380 St. Peter St., St. Paul, MN 55102, lfj@sppa.com, 651.204.6233

Sherman Associates, Inc. will add 24 low-income and 26 market rate units to replace lost housing through the adaptive reuse of the Nettleton School (#1.6) serving as developers and owners of the completed project. In 2015 they completed a similar project, Rayette Lofts, in St. Paul, MN with 88 units that blended historic brick with modern finishes. This $25 million project included federal and state historic tax credits, Met Council TBRA and TOD funds, a first mortgage and owner equity. Project Lead: Paul Keenan Reference: www.sherman-associates.com/news/2015/09/2015-minnesota-preservation-awards-announced-rayette-lofts/

University of Minnesota specializes in Research and demonstration of high performance residential construction in partnership with the Department of Energy Building America research program. The University designed, tested and measured homes that are energy efficient, healthy, durable, and affordable and have partnered with non-profit housing organizations to field test designs while offering affordable alternatives. A major project has been developing a home building (single family and multifamily) frame/structure that is stronger and less costly than convention stud framing appropriate to all regions in the US. The Natural Resources Research Institute will partner with Ecolibrium3 and the HRA on demonstration micro-manufacturing of resilient housing through construction of 10 units (#1.9) and engineering process design. Project Lead: Pat Donahue/Pat Huelman Reference: Dave Bohac, MN CEE, 212 Third Ave N, Suite 560, Minneapolis, MN 55401, dbohac@mncee.org, 612.802.1697

Rural Renewable Energy Alliance managed a multi-year, federally-funded statewide ARRA project called Sustainable Energy Resources for Consumers where they managed a cross- disciplinary, multi-stakeholder low-income, regional clean energy project. In addition to installation work, RREAL led the training of contractors from 9 community action agencies across the state in the site assessment, design, procurement, installation, and client education for 250 residential solar energy systems. This project was completed in partnership with the MN Department of Commerce’s Division of Energy Resources. RREAL will coordinate development of solar projects in partnership with Ecolibrium3 and the City of Duluth (#1.11). Project Lead: Jason Edens  Reference: Cheryl Lee Hills, Region 5 Development Commission, 200 1st St NW #2, Staples, MN 56479, chills@regionfive.org, 218.894.3233 x1

The City of Duluth is the only partner who could not be replaced in this project. Although key personnel have been identified, all projects could proceed with a change in staff including the City of Duluth. The Historic Armory Project (#1.7) and Boisclair would be most at risk with the loss of Lori Boisclair, however there was an RFP to identify the developer for that project and 3 other acceptable proposals were received.

Minnesota’s approach to comprehensive disaster recovery included identification of risks and vulnerabilities, ongoing stressors, state and local community development objectives, and our Phase 1 Minnesota Formula for Comprehensive Community Resilience (BigWaterMNRoR-ExA-ExSum.pdf). Our Phase 1 framing indicated that to build resilient communities we must co-develop strategies along five layers including housing, the economy, resource management, energy, and health. It also indicated a thought process for analyzing what would be the strongest approaches.

Our Phase 2 project selection approach included the following steps which were iterated recursively by a wide group of stakeholders. The process included:

  1. Identification of unmet needs and existing vulnerabilities and stressors– Although our Phase 1 application identified this for the MID-URN, as we moved into Phase 2 we realized that this conversation needed to expand outward to a larger geography and broader stakeholder group. At the same time, our outreach also became more granular to be especially responsive to vulnerable populations and flood-affected individuals and businesses. Meeting people where they are, including hearing the anger, frustration, and fears related to incomplete recovery, post-disaster social/financial situations, and disappointment with current opportunities to advance their resilience, was a powerful tool in helping shape priorities for the application, as well as for informing approaches to future disaster response and recovery in the state. Additional perspective and data learned through these sessions, and further research with partner organizations, are included in MN-PII-ExB-Need.pdf.

We also realized that often “one doesn’t know what one doesn’t know.” To avoid missing key factors or approaches, we hosted sessions with regional, national, and international participants which included rapid iteration work done as part of DredgeFest Great Lakes (government agencies, designers, theorists, academics, industry experts, students, public) and a week-long national Urban Land Institute Resilience panel to help us think through strategies for resilience in the MID-URN’s lowest-income neighborhood. Our multi-stakeholder Resilience Steering Committee (see MN-PII-ExC-Capacity.pdf) also assisted in providing local, state, and national context to each of our resilience layers during a half-day design session.

  1. Identification of potential solutions- We began development of potential solutions to unmet needs and ongoing risks and stressors in a variety of ways. At the beginning of April we created a Request for Information and a Request for Knowledge process. The RFI/RFK process sought to educate a wide audience on the impacts of disasters in Minnesota and our ongoing climate risks, inform individuals and organizations about the opportunity provided through the National Disaster Resilience Competition to build community resilience, and solicit potential solutions and/or projects. We received over 100 potential project submissions from as far away as New York and New Orleans, with many coming from community organizations active in the MID-URN. Those responding to the RFI were asked to develop potential activities or projects that could be included in a Phase 2 application that addressed unmet needs or community development objectives. The RFK created an opportunity for local residents, to national technical experts, to submit their ideas for building resilience without having to have a particular project or associated implementation capacity. This again allowed for us to identify what we didn’t know. An example included information from a Minnesota Pollution Control Agency staff member that wanted to make sure that no matter what we considered for potential solutions, we included a focus on “antecedent soil moisture conditions.” Upon review of the submissions, a member of the Resilience Steering Committee commented, “That makes perfect sense, but it wouldn’t have hit my top 100 of things to pay attention to even though every time I talk about the disaster (qualifying) I tell people it wouldn’t have been so bad if the 12” of rain hadn’t fallen on already saturated soils.”

The RFI/RFK process served as a starting point for identifying potential solutions. The Resilience Steering committee then discussed the merits of various approaches and anticipated project outcomes. The RFI process identified potential project partners with appropriate capacity to complete work, outcomes that were in alignment with needs expressed in our Phase 1 application, and opportunities to create model programs or projects. Where gaps were identified, partners and projects were sought out by General Management partners.

  1. Determination of outcomes and maximization of co-benefits- Our initial process included looking at potential outcomes and co-benefits from two different perspectives. The first was looking from the unmet needs and vulnerabilities perspective with a MID-URN focus, determining what outcomes would advance resilience, and then selecting strategies that met those outcomes. The second was to start with the proposed strategies, analyze them for their potential to create resilience, and then “add up” the potential outcomes and co-benefits. Different methods were used during the evolution of the projects and with different audiences. In the end, the overall portfolio of activities developed from a hybrid approach. Definition was given to the areas of greatest need, the scope and scale of those needs, and the hoped for outcomes. Approaches were then selected based on the ability to influence multiple layers of resilience, impact on vulnerable populations, and transformative potential toward resilience. These were then tempered by availability of partners, capacity, and technical feasibility. In some cases, partners were intentionally sought out to create desired co-benefits or activity scopes were expanded to multiply resilience benefits or create projects with greater applicability statewide.
  2. Developing the “Ripples of Resilience”- Our final step was to analyze each activity, each larger project, and the entire approach for potential “Ripples.” This too proceeded on multiple levels. At the most basic it was examining how each individual activity could be a best practice or model adoptable elsewhere. At a more complex level, it involved determining what policies or larger state/regional approaches were needed to successfully achieve NDRC outcomes, and in turn influence resilience at a larger scale. During these conversations the idea of “rippling in” also developed. This was reversing the image we had used regarding the larger impact of our projects by recognizing the same set of concentric circles can mean the gathering of best practices from a larger geography and/or multiple sectors and successfully adapting them for maximum impact at a community or project-level. As the Minnesota team iterated through these steps with an increasing number of people, it became clear that there were definitely places where inspiration could meet hard practicalities and we could affect “bouncing forward” instead of just “bouncing back.”

From the beginning with our multi-layered resilience framing, we’ve recognized that resilience is a very complex problem. In our Phase 1 framing, we posited that exploring this complexity at a small scale would result in a more holistic solution where outcomes synergistically build resilience. We also believed that the approach itself could inform how the state and region advance resilience. Perhaps naively, we expected that moving on to a project-level conversation would make it easier to discuss this complexity as it would be grounded in tangible projects. We have not found that to be the case. Instead we have found that the easiest narrative and actions would indeed produce positive outcomes, but pale in comparison to a more complex, more diverse, more difficult interweaving of activities across the five layers of resilience, across sectors and geographies, across populations, and across time.

We think resilience is complex work if done correctly. Our activities follow the principle of resilience by not just repairing damage, but trying to understand and fix why the damage occurred. We’ve asked not only how to make our physical and metaphorical house more resilient, but how we can accomplish resilience for our household too. Although each activity starts solidly in the realm of economic, environmental, or social resilience, each activity was designed to find the most beneficial overlap of resilience outcomes.

The NDRC process allowed us to “shine the light” on unmet recovery needs and ongoing vulnerabilities that if not addressed put our state and its residents at continuing risk. The Ripples of Resilience recognizes that residents with stable housing and financial resources are able to recover faster from disasters, that we need a more thoughtful approach to infrastructure in Minnesota, and that there is great value for resilience in deliberately building social cohesion in our communities.

After considerable process and community engagement, three projects were developed for inclusion in the Big Water: Ripples of Resilience application. Each project identifies and responds the unmet needs and forward looking climate adaptation priorities.

Project #1 – Vertical Waterways and City Core Resilience

Values Project Metrics
Resilience Provide resilient power to critical infrastructure and create long-term carbon reductions through district energy transition.
Economic Prevent future business disruption due to severe storms and flooding while growing neighborhood businesses.
Social Develop quality affordable housing for LMI individuals in mixed-use developments that are walkable and have neighborhood job opportunities.
Environmental Decrease stormwater runoff and flood related property damage through implementation of green infrastructure projects on 3 streams.

 

The Vertical Waterways and City Core Resilience Project (#1) addresses the main cause of damage from the qualifying disaster as described in MN-PII-ExD-Need.pdf– flash flooding due to the 47 streams that cascade down Duluth’s 800 foot bluff. This project integrates above the bluff water management strategies and downstream revitalization activities into a holistic approach to build resilience. Although there are twelve separate activities in this project to provide scaling and scoping opportunities, activities can be roughly divided into three interrelated categories: 1) water management, 2) revitalization, and 3) resilient energy transition. Specifically, activities include green water detention strategies on the three largest watersheds impacting the eastern part of the MID-URN including Miller Creek which flows into the Lincoln Park Neighborhood, and Brewery and Chester Creeks that flow into the Hillside/Downtown neighborhoods. Lincoln Park and the Hillside neighborhood represent the lowest income neighborhoods in Duluth and the highest level of minority and disabled individuals. Over 20 watersheds were examined for greatest potential reduction of harm and co-benefits to the community. These streams were selected because of the level of damage, potential for flow reductions, data available from a NOAA green infrastructure study, headwaters land-use and the ability to protect economic interests above the bluff, and the poverty and other social determinants downstream. The downstream neighborhoods and commercial centers have pre-established stakeholder groups and plans that can also be advanced through the project.

Revitalization activities center on transformational housing projects that address the need for replacement units, the extreme shortage of affordable housing, the need to deconcentrate poverty through mixed-income developments, and demonstration of resilient projects in different housing categories including new construction, adaptive reuse, mixed-use, and historic. Each housing project allows for further densification of housing with flood protection, energy efficiency and renewable development, and development of resilient best management practices. In addition to housing projects, economic revitalization is supported through mixed-use developments, a targeted revitalization fund for an emerging district where property values remain too low to allow standard bank financing, and jobs and training opportunities for low-income and minority individuals.

The final focus on this project is energy transition. This was identified as a need not only due to the results of the qualifying disaster which included a $90 million hydropower facility and earthen damn failure on the St. Louis Rivere that exacerbated flooding in the MID-URN, but due to ongoing energy poverty, climate impacts of current fuel mixes, economic leakage from Minnesota, and concerns over energy security. Extreme cold is an annual stressor that can be mitigated through a focus on efficiency. Minnesota’s low-income populations live in homes that use on average 39% more energy due to the age of the properties/lack of efficiency measures. This is especially true in the City of Duluth where the housing stock is the oldest in Minnesota with more than 50% of homes are older than 80 years. Energy transition in this project area focuses on the flood damaged Duluth district heat system which over 180 buildings downtown including emergency shelters, the foodbank, affordable housing, NGO’s, governmental structures, and regional medical centers and on establishing resilient power for critical infrastructure including water pumping and natural gas distribution. A supporting project will provide combine-heat and power for regional water treatment.

Although a complex set of activities, each synergistically builds resilience in accordance with Minnesota’s Phase 1 framing (housing, economy, resource, energy, health). As this is a covered project, a BCA is provided and can be found in MN-PII-AttachF-BCA.pdf.

Project Activities:

Activity #1.1- Miller Creek and Lincoln Park (Q1-12)- This activity was informed by the Urban Land Institute resilience panel held in Duluth that involved over 90 stakeholder interviews and significant background research. The activity includes four components that could be phased: remeandering of Miller Creek, replacement of 4 box culverts with bridges, public/private detention under retail parking lots, and repair of park and trail property in Lincoln Park.

Remeandering: This activity will reduce flooding risks to the Miller Hill regional retail corridor and the downstream Lincoln Park. The project will provide attenuation of flood flows above the “bluff” by remeandering the stream within the stream/floodplain channel above the Kohls Store on City owned property.  The remeandering of the stream will provide a reconnection to the floodplain, providing storage or detention of high flow events, and reducing peak runoff rates down-gradient.  This will help reduce flooding to roadways and property and provide flood control for the stream and adjacent areas at the Miller Hill regional economic center and along the hillside as the creek flows towards its mouth at the St. Louis River. The reduction of risk to flooding will reduce economic losses to retail establishments and provide uninterrupted employment for the many LMI individuals that work in the retail corridor. By completing Miller Creek projects,Minnesota will provide for expansion and economic growth opportunities by decreasing flood hazard boundaries and associated flood development restrictions. Permitting for wetland impacts and stream restoration, HEC-RAS model to adjust floodplain mapping, complete EAW (Q1-2), complete design and award construction bids (Q3-4), construction (Q5-6), because of short construction seasons and additional restrictions on work due to potential impacts to trout, a secondary completion date of Q10 has also been established.

Culvert Replacement with Clear Span Bridges (Q1-12)- Although the four existing double box culverts did not suffer damage in 2012 flood, the stream alignment, bridge configuration and loss of flood plain through years of development, has reduced the flow capacity of this section of Miller Creek.  During the 2012 flood, extensive flooding occurred in the immediate area.  Frequent flooding has occurred on the adjacent roadways / private property resulting in traffic disruptions, loss of business and life/safety issues, and consistent inundation in areas of city/county/state infrastructure and private property. Damage did occur to multiple commercial establishments and although their repairs are complete, unless the cause of the flooding is addressed, they remain at risk for future damage, loss of business, and out-of-work conditions for LMI employees. This section of the creek is in the center of a large regional retail commercial corridor.  Past development has realigned the original stream channel and has reduced its floodplain.  The project will increase the capacity of the existing box culverts by replacing them will clear span bridges that will have a larger cross sectional flow area, which will allow stream flows to pass below the bridge and not overtop onto the adjacent roadways and into businesses. In conjunction with the installation of 4 new bridges, the restoration/recreation of the floodplain through this section of the creek will provide increase flow capacity of the stream using natural stream characteristics. Permitting for wetland impacts and stream restoration, HEC-RAS model to adjust floodplain mapping, complete EAW (Q1-3), complete design and award construction bids (Q4-6), construction (Q6-12), although this project could proceed faster, the schedule reflects contingency period based upon seasonal access and restrictions on trout streams.

Public/Private Detention (Q-12)-  The objective of this activity is to reduce the runoff rates of the surround large private land owner that exist along the Miller Creek.  The existing land use in the area is large box stores that were built before the flood plain mapping was created for the City of Duluth and the current public waters protection now afforded to trout streams.  The installation of large below grade stormwater runoff detention structures (various methods) will capture runoff, and attenuate flows so that discharge is reduced, thereby minimizing the risk of flooding to the adjacent stream and down gradient areas.  As project locations are studied thoroughly, the addition of green infrastructure at the surface will become apparent and will be added to improve stormwater and aesthetics of the properties.  The projects will require partnership with the property owners to allow permanent easements on their property for the underground structures and take on some of the financial costs of construction and/or O&M, the model for landowner participation will become a model for Minnesota. Procure design services, finalize public/private partnership agreements (Q1-2), complete 1st round of construction plans/bidding (Q3), construct 1st round detention, recruit second round of private partners (Q4-6), construction (Q7-12).

Lincoln Park (Q1-8*) – Lincoln Park (the park, not the neighborhood) experienced approximately $1.6 M of damage to trails and grounds that was not funded by FEMA.  The Miller Creek has been channelized through the park, and otherwise altered over the years. The flood blew out many of the channel walls and scoured the adjacent trails and parkland. This activity will repair the remaining damage while improving park quality through neighborhood participation in a master planning process. Due to historic bridges and stream walls, EAW and SHPO review is needed.  *A secondary target date has been established due to work being located in a trout stream. Community meetings and design phase (Q1-3), plans and permitting (Q4), construction (Q5-10*).

Activity #1.2- Brewery Creek Detention (Q1-12)- Brewery creek originates north of Blackman Avenue and west of Central Entrance.  This is just short of a mile from its original headwaters in what was once called Grassy Lake.  The majority of Brewery Creek, below Skyline Parkway, is buried. Almost all (estimated 90-95%)of the 914 acres in the Brewery Creek watershed exists above Skyline Parkway where few wetlands exist to buffer the storm water runoff that is generated during a rain event. The Brewery Creek watershed located in the central part of the City is a combination of open channel and piped conditions on top of the hill, and mostly buried in storm tunnels going down the hill to Lake Superior. The age of the storm tunnels are from the late 1800s to the 1930s, and were built by the City and private developers, with a variety of materials and cross sectional shapes. The flood damaged a portion of the tunnels, and also stressed the system as a whole. The Brewery Creek storm tunnels are aligned through the Health District and Hillside neighborhood of Duluth, a lower income neighborhood, with lower home values and a high percentage of rental properties. Because of its location under a number of buildings and under a number of high traffic streets, continued function the storm tunnel is an imperative to this neighborhood and the City as a whole. The protection of the structures above and adjacent to the tunnels is a life-safety concern. Providing stormwater runoff storage, extended detention on top of the hill, will reduce the stress on the limited flow capacity of the storm tunnel and will reduce the risk of a tunnel failure and uncontrolled flooding in the Hillside neighborhood. Addressing flow issues will also allow for redevelopment of a cornerstone parcel into mixed-use development, reconnecting the neighborhood and servicing anchor institutions (#1.8). An alternative of designing and installing a larger storm tunnel was considered but dismissed due to extreme costs with low rate of return. Procure design services, finalize public/private partnership agreements (Q1-2), complete 1st round of construction plans/bidding (Q3), construct 1st round detention, recruit second round of private partners (Q4-6), construction (Q7-12).

Activity #1.3- Chester Creek Detention (Q1-12)- The Chester Creek Watershed experienced significant damage from the 2012 flood to a number of road crossing culverts and the Chester Creek City Park.  Slope stability issues and stream channel degradation and aggradation occurred. NOAA funded a green infrastructure study on the Chester Creek watershed, and showed how investment in green infrastructure would reduce the risks and costs associated with flooding.  There are two components to this project that can be phased, but meaningful impact is gained through completing all strategies.

Chester Creek Extended Detention- This project is to provide extended detention in the watershed above the bluff line in Duluth at numerous locations. The projects will provide rate control attenuation or flood control. Basic hydrologic and hydraulic studies show the benefits on the capacity of a storm sewer or drainage system (creek) to handle the flows associated with a large rain event.  For this concept to work, runoff attenuation needs to occur at many locations within the watershed and not a singular location.  The projects will reduce flow rates during large rain events thus protecting downstream properties per the NOAA study. Procure design services, finalize public/private partnership agreements (Q1-2), complete 1st round of construction plans/bidding (Q3), construct 1st round detention, recruit second round of private partners (Q4-6), construction (Q7-12).

Chester Creek Remeander (Q1-6*)- The project will provide attenuation of flood flows above the “bluff” by remeandering the stream within the stream/floodplain channel above Madison Ave. The remeandering of the stream will provide a reconnection to the floodplain, providing storage or detention of high flow events, and reducing peak runoff rates down-gradient. This will help reduce flooding to roadways and property and provide flood control for the stream and reduce channel erosion and stream bank failures. It will further protect Chester Creek Park and adjacent areas along the hillside as the creek flows towards its mouth into Lake Superior. The combination of these strategies will reduce flows in the Chester Creek storm tunnel under the Historic Armory (#1.7), providing further protection. No other alternatives were looked at as they would not be approved by the DNR. EAW, permitting, survey, soil sample (Q1-2), finalize construction plans and procurement (Q2-3), construction and project closeout (Q3-6), *because of short construction seasons and additional restrictions on work due to potential impacts to trout, a secondary completion date of Q10 has also been established.

Activity #1.4- American Indian Housing & Commercial Redevelopment (Q1-8)- Redevelopment of 2301 W. Superior Street in the Lincoln Park neighborhood into a mixed-use development including an eco-laundry, coffee shop, and gallery. Currently the building is blighted with no housing occupancy. This activity would provide additional subsidized units for low-income individuals, create job training and employment opportunities, and create a new source of income for the non-profit partner which will then be re-invested back into the community. Creating a gallery/retail center for Native artists will also create a venue for community members to sell their work and become more self-sufficient. Funding would also be used to install site-based water management at AICHO’s flood-affected transitional housing project. This project will proceed in two phases: 1) commercial space revitalization and business development (Q1-4), and 2) housing redevelopment (Q3-8).

Activity #1.5-Esmond Housing & Commercial Redevelopment (Q1-Q12)- The former Seaway Hotel, now referred to as the Esmond, incurred significant damage from water during the 2012 rain event/flood. The building houses 65 extremely low income and vulnerable adults (many in efficiency units) and was not in good condition prior to the flood with all systems (interior and exterior) needing updating.  The building was owned by an entity that managed it in a way that deteriorated the building and jeopardized the safety (in terms of both health and crime) of residents. At the time of the flood, the building was at risk of being closed due to lack of code compliance. The flood brought the crisis that had been building for many years to a head because the exterior deterioration of the building, in terms of water management, failed and water began pouring into the interior, causing immediate damage and then mold and air quality issues.  Realizing that the vulnerable, low income people in the building were at risk of displacement, community organizations stepped up to improve the situation. The proposed activity would be to redevelop the blighted property after creating new supportive housing for current tenants (see below). The redevelopment would include 25 1-bedroom apartments affordable to Duluth’s LMI workforce. This was a critical site determined by the Urban Land Institute visit for anchoring revitalization of the Lincoln Park Commercial Corridor. The redevelopment will also include rehabilitating commercial space on the first floor providing opportunities for economic development and creation of social cohesion in a walkable neighborhood. Rehabilitation of the commercial space can progress as grant funds become available, however the housing rehabilitation is dependent on completing:

Supportive Housing New Development (Q1-7)- The 2012 flood pointed out the precariousness of housing situations for many in Minnesota. In addition to the residents living in structures like the former Seaway Hotel, individuals experiencing homelessness at the time of a disaster were the most vulnerable and silent part of our society. Homelessness in Minnesota, while being proactively addressed, continues to grow at a faster pace than local affordable housing efforts can keep up with, given our extremely harsh climate and unforgiving geography/geology. This sector of Minnesota’s citizenry is always at high risk of devastation and even death when disasters occur. Center City Housing Corp. will develop and build 50 units of affordable housing for single adults in Duluth. The housing proposed will serve three of the most fragile and vulnerable populations– people who are presently homeless, those who and are at high risk of becoming homeless and those living in unsafe substandard housing. This activity will develop and build 50 modest 1-bedroom apartments in a single handicapped accessible building that will have a 24/7 staff presence and supportive services utilizing “housing first” principals. Property acquisition (Q1), brownfields remediation and permitting (Q2), and construction (Q3-7).

Activity #1.6- Nettleton School Adaptive Reuse (Q1-6)- The Nettleton School Adaptive Reuse Project will help meet the demand for additional mixed-income housing units in downtown Duluth. In June of 2012, the Hillside Neighborhood of Duluth experienced significant flooding. Due to its location and terrain, the neighborhood was greatly impacted by flood waters which caused mudslides, severe water penetration and damage to many structures throughout the community including the loss of housing units. The project will add 24 units of affordable housing for households at or below 60% AMI, and add 26 units of market rate housing to a predominantly low and very-low income neighborhood by adaptively reusing a school on the upper part of the hill. The increase in housing diversity will benefit the local community, improve overall neighborhood stability, and increase downtown Duluth viability. The school did not suffer damage during the qualifying disaster, making it a resilient choice for housing units. Permitting, procurement, environmental review (Q1-2), construction and lease-up (Q3-6).

Activity #1.7- Historic Armory Adaptive Reuse (Q1-9)- The Duluth Armory is on the U.S Department of Interior’s National Register of Historic Places and is part of the Smithsonian’s virtual tour of places to see in the U.S. It functioned as a triage center and disaster recovery center for the 1918 Cloquet fire which was the worst disaster in Minnesota’s history. Unfortunately, after years of neglect and subsequent damage from the June 2012 floods, it has been condemned. With NDRC funding to address flood damage and support affordable housing development, the Armory will be repositioned into office, retail, art and culture center to include an art gallery housed with goods from local artists and tenants in the building, a celebrity tribute museum and a restaurant and music venue hub.  It will also house the Armory Arts & Music Center, a nonprofit providing musical lessons and support to neighborhood LMI children. The contiguous site located within the Armory site plan will be home to 48 new construction apartment units.  40% of the units will be set-aside utilizing the Low Income Housing Tax Credit Program at 60% of Area median Income. Initial flood remediation has been completed (storm tunnel repair) and a structural review has shown the building to be in good shape, however the heating system remains unrepaired and would need to be moved to a higher level. The subbasement that suffered from flooding would not contain future mechanicals, but would serve as overflow parking. The new housing annex will be built in the new- new urbanism style with resilient power from an 80 kW solar array and storage, allowing for the Armory to serve as a recharging station for the neighborhood and allowing residents to shelter in place. Permitting, environmental review, development financing (Q1-3), Construction (Q4-9).

Activity #1.8 Health District Mixed-use Redevelopment (Q1-Q12)- The City of Duluth has completed a Health District Revitalization plan that calls for acquisition and adaptive reuse of properties along E. 4th Street and 6th Ave E. This activity will acquire flood-affected properties for eventual reuse or redevelopment into mixed-use, mixed-income opportunities. The new development will move construction away from Brewery Creek and ensure structural effectiveness of the storm tunnel. The program developed for neighborhood revitalization would target the creation of 150 new or rehabbed housing units and rejuvenation of 10,000 square feet of commercial space. All construction would follow MN Green Communities Standards. This property is considered essential due to its proximity to the regional medical centers and previous division of the neighborhood with a large transportation corridor (6th Ave E). Future non-NDRC revitalization will reconnect the neighborhood across this corridor and do acquisition for green space, water gardens, and redevelopment. Property acquisition, developer procurement (Q1), Phase 1 environmental review, plans, permitting and relocation (Q2-4), construction (Q5-12).

Activity #1.9- Resilient Demonstration Housing with Micro-Manufacturing (Q1-12)- Of all the Minnesota cities, Duluth was hardest hit during the rust belt decline of the 80’s and 90’s. This resulted in little new construction over the span of thirty years. Other places in Minnesota have seen greater levels of new construction during this time period. As a state, we must address our old housing stock, but we must also model resilient new construction. This project will develop new housing units at Duluth’s HOPE VI Harbor Highlands development. In partnership with the University of Minnesota and the Natural Resources Research Institute, homes engineered for resilience in all climates will be constructed. An important component to this activity is the development of centralized engineering and designed manufacturing processes that can be then be distributed to micro-factories. A ripple to this approach is co-developing economic opportunities in communities that lack housing by supporting local home manufacturing and job creation. The resulting product can reduce development costs and long-term operations and maintenance of homes. Completing this project will not only build replacement units in the MID-URN but will demonstrate the manufacturing and jobs training opportunities of this approach for interested Minnesota and Canadian tribes. This project will allow for training of lower-skilled trade skills as a bridge to carpentry jobs. Design and engineering approval, micro-factory installation (Q1-3), first 5 demonstration homes (Q4-7), design evaluation, additional design and engineering approval (Q8), construction second set of demonstration homes (Q9-12).

Activity #1.10- Lincoln Park Commercial Revitalization (Q1-12)- As the lowest-income neighborhood in the MID-URN, Lincoln Park has faced decades of disinvestment and decline. With a new vision of becoming a Crafter-district and old and new businesses poised to invest in the building stock, the opportunity exists to create living-wage neighborhood employment opportunities and reduce blight. Under this activity, the Entrepreneur Fund and Duluth LISC will spur private investment by businesses who can’t meet traditional bank collateral requirements due to the existing building values in the neighborhood. A revitalization fund will eliminate structural barriers to investment in the neighborhood and support early adopters in this emerging district through a low-interest loan fund that can take a second position and go to 125% of building valuation, and additional leveraged resources. Interested businesses have already been secured including light manufacturing and neighborhood food establishments. This fund is seen as an “early adopter” incentive to spur redevelopment that can be supported in the future by increased district property values. Funded businesses will participate in business district revitalization and a neighborhood jobs partnership. Underwriting standards (Q1), business recruitment (Q1-6), loan closings (Q2-8), construction (Q2-12).

Activity #1.11-Resilient Power and Small Business Energy Efficiency (Q1-12)- The June 2012 flood and other Minnesota disasters have illustrated the need for development of resilient power solutions, transition to distributed local energy, and increased energy affordability to support financial stability for commercial enterprises. This activity will develop 1.5 MW of solar associated with critical infrastructure, neighborhood redevelopment, and housing development associated with NDRC. A resilient solar plus storage project will be located at the City of Duluth’s gas and water facility, with additional solar installations on reservoirs aiding in water pumping. A solar community garden focused on advancing low-income equity models will be built at the Cross City Trail entrance into Lincoln Park as an energy and neighborhood revitalization strategy. A partnership will be created with the Fond du Lac Tribal and Community College to advance job and training opportunities for solar installation and energy efficiency work. The project will include a second component that assists small businesses with energy efficiency and resilience improvements through adaptation of the EPA and White House recognized residential Duluth Energy Efficiency Program for businesses. Each efficiency project will provide a 15% grant for energy efficiency measure that have a payback of 10 years or less and a BCR >1, this will be matched by ComfortSystems gas utility rebates. Business Energy Efficiency Program (BEEP) design and initial solar projects selected (Q1-2), solar and energy efficiency installations (Q3-12.)

Activity #1.12-District Heat Transition (Q1-12)- Because the current steam system is of the “direct buried” design (that is, steam pipes are installed in earthen trenches which are then backfilled with soil, rather than installed in tunnels), steam pipes in the 2012 flood impacted areas were exposed to groundwater as the soil became saturated. Most of the system’s steam pipes were insulated with asbestos, buried and put into service in the 1930s and 1940s before the technology for sealing high temperature insulation systems was refined. During the 2012 flood, groundwater leaked through degradations in whatever moisture barrier existed, saturating the insulation and then boiled and flashed to steam as it contacted the hot steel steam pipe. This damage was obvious inside manholes and steam vaults where the steam pipes were accessible for inspection, and this insulation damage was repaired post-flood. Damage to direct-buried steam pipes was of course less obvious, but is known to exist. An aerial infrared survey of the system was completed in 2014 and “hot spots,” indicating significant insulation damage, were revealed throughout the system. In calendar year 2014, over 20 percent (106 million Btus or 31,000 kilowatt-hours) of the energy leaving the central heating plant was lost in the distribution system due to these inefficiencies. Replacement of these pipelines with modern, thermally insulated hot water pipe with an integral leak detection system would increase efficiency and fuel costs savings, permitting the beginning of a transition from coal to regionally derived biomass. In addition, moving to a looped hot water system will reduce the need to continually treat and pump water from Lake Superior (currently 90 million gallons a year, heated from 40 degrees to 365 degrees, sent 1-way through the system until it literally “runs out of steam” then dropped as 190 degree condensate into the sewer system for treatment and return to Lake Superior). The $31 million in funding for the combined roadway and utility project has been identified (replacing distribution while the street and subsurface utilities are rebuilt will save the district 40%). NDRC funds (additional 9.97M) would be used to modify and connect Superior Street buildings, which provide services to some of Duluth’s most vulnerable populations, to the new looped system, and to provide redundant energy to regional medical facilities in downtown Duluth. Phase 1 design work and building modifications (Q1-4), Phase 2 design work and building modifications (Q5-8), Phase 3 design work and building modifications, redundant line to hospitals (Q9-12).

 

Project #2- St. Louis River Corridor Resilience

Values Project Metrics
Resilience Increase social cohesion and economic opportunities while replacing flood damaged infrastructure and repairing environmental
Economic Provide transitional jobs and training to low-income and minority individuals in the ecosystem services field.
Social Increase social cohesion and health by connecting residents to quality green space and community centers.
Environmental Decrease stormwater runoff through brownfield properties and improve trout stream water quality.

 

During the 2012 flood event, Irving and Fond du Lac Parks lost their community centers, athletic fields, playgrounds and picnic areas. The cold water steams running through these parks and other Duluth parks, experienced significant to extreme bank erosion and riparian degradation. In order to build social cohesion in the MID-URN, especially along the River Corridor, Duluth has worked to define a new vision. As stated by Duluth Mayor Don Ness, “There’s no question that if not for Lake Superior, Duluth would be defined as a river city. Duluth should be defined by both the world’s greatest lake AND the world’s greatest fresh water estuary. By doing so, we open up many possibilities along the River.”

Ripples of Resilience will help meet the goals of the St. Louis River Corridor Vision by supporting environmental restoration, enriching neighborhood quality of life, attracting new homebuyers, establishing new visitor destinations, and stimulating appropriate development by addressing unmet disaster needs. Stimulating neighborhood revitalization by repairing and enhancing nature in the river corridor is a main strategy for resilient recovery and will positively influence the social determinants of health for neighborhood residents.

Low-income areas across the country, including the MID-URN neighborhoods in Duluth, suffer not only from the disproportionate presence of environmental contamination but also from the disproportionate absence of quality public green space. The MID-URN area contains over 2,500 brownfield sites due to past industrial development along the St. Louis River Corridor and lacks appropriate river access and high quality public green space for residents. Millions of dollars of unrepaired damage remains from the qualifying disaster (DR-4069) that cannot be addressed with existing resources in the sub-county target area.

The St. Louis River Corridor Resilience project addresses the unmet needs due to riverine and and flash flooding from the qualified disaster. It also identifies the underlying structural issues affecting neighborhoods in the western part of the MID-URN. Specifically, the St. Louis River Corridor Resilience Project repairs flood damaged community and green space, establishes effective stormwater drainage issues that can restrict ingress and egress to a neighborhood, and supports local investment toward quality of life improvements in neighborhoods that are reaching a milestone in the next 5 years with Superfund clean-up completion and  potential delisting of the St. Louis River as the Great Lake’s largest Area of Concern.

Activity # 2.1 Mission Creek Stabilization & Fond Du Lac Park (Q1-Q6)- The project is part of a larger plan to reduce flooding risks to the Fond Du Lac neighborhood.  The project is to re-establish a natural stream channel /floodplain channel above TH23 and below West 9th Street. The neighborhood experienced heavy damage as part of the 2012 flood.  The stream section directly above this section is being designed for restoration by the SWCD/DNR, and the MnDOT highway bridge at TH23 (at the downstream limit of this proposed activity), is being rebuilt to achieve higher capacity and debris passage during high flow events.  This activity will coordinate with NN 1.1 Buyouts to remove homes that were impacted during the flood on the eastern side of the creek so that an easterly remeander, and a westerly slope stabilization, can occur. The restoration of Mission Creek will create a natural stream channel with sinuosity and a floodplain that will have capacity to pass high flows, resulting in a durable stream system that is resilient to flooding.  With homes removed from the proposed floodplain, the risk to life and property is greatly diminished.  This concept is common to reestablish a stream corridor free of structures and rebuilding capacity for flow. This investment will help protect new bridge work as well as restore natural fisheries habitat in a trout stream. The project site is unique and alternatives to stream channel restoration must fall within the MN DNR guidelines for trout fisheries.  No other alternatives were looked at as they would not be approved by the DNR. EAW, permitting, survey, soil sample (Q1-2), finalize construction plans and procurement (Q2-3), construction and project closeout (Q3-6), because of short construction seasons and additional restrictions on work due to potential impacts to trout, a secondary completion date of Q10 has also been established.

Fond du Lac Park (Q1-7)- Fond du Lac Park lost its community center during the June 2012 flood and suffered considerable damage to playground and picnic areas, and athletic fields. This activity would replace the community center with a pavilion, and relocate the athletic field away from the floodplain, creating long-term resilience by restoring flood prone areas to natural habitat that can help reduce flooding downstream. NPDS stormwater, fill, & building permits (Q1-2), construction and habitat restoration (Q7-primary,Q10-secondary).

Activity #2.2- Gary & Morgan Park (Q1-12) – The Gary New Duluth and Morgan Park neighborhoods are immediately adjacent to the nation’s largest contaminated sediment site (US Steel Superfund) that will be going through clean up during the NDRC grant period after a 40 year wait. Supporting effective stormwater management around this site at the Atlas Industrial Park (remediated brownfields) and in the neighborhoods, creates opportunity for new employment, housing revitalization, and safe ingress/egress during subsequent flood events.

Gary New Duluth Stormwater- The Gary New Duluth neighborhood suffers from poor drainage that exacerbated flood damage during the June 2012 flood. The tight cohesive soils, poor drainage, and flat topography also contribute to annual flooding of streets and yards during annual snow melt. This results in lower neighborhood property values, unbuildable platted parcels, and reduced potential for economic development opportunities. When properties can be protected from localized flooding due to soil saturation, the existing housing stock can be protected from potential water damage and health concerns. The objectives of this activity are to provide a drainage system for the Gary New Duluth neighborhood located on the east side of Commonwealth Ave that will allow effective and efficient storm water runoff and snow melt capture and conveyance.  This system will provide safer streets and sidewalks for residents and business owners, and allow property owners to properly manage storm water and snow melt runoff from their private parcels resulting in reduced insurance claims for wet basements and property damage from excessive standing water and/or slow draining areas following storm events or spring snow melt. Neighborhood residents have worked to revitalize the neighborhood and support youth through the development of the GND REC center adjacent to the neighborhood elementary school. Although not funded through the NDRC, application, resident fundraising and participation by the City of Duluth demonstrates a commitment to neighborhood revitalization. The advantage of a flat topography is the potential for Gary New Duluth to address accessible and senior housing needs where severe slopes and associated icing are not prevalent. Procurement of engineering design services (Q1), field survey, cleaning and inspection of storm sewer, hydrologic/hydraulic modeling (Q1-3), construction plans and prioritization, construction bidding (Q3-4), construction (Q5-8).

Morgan Park and Atlas Industrial Park (Q1-Q9)- The neighborhood of Morgan Park in the western part of the MID-URN has access at only two points.  Both roadways into the neighborhood must pass below a railroad bridge. This road alignment creates a “sag” condition at the bridges and has caused flooding at a depth too deep for vehicle travel.  The northern neighborhood entrance has a stream adjacent to the roadway that limits the options for flood resilient improvements. The southern entrance at Idaho Street, does not have a stream but rather a large storm sewer system that coincides with the street. This site has options to reduce the risk of flooding. By providing up-gradient extended detention of stormwater runoff, the risk of flooding the southern entry to the Morgan Park neighborhood is greatly reduced.  The extended detention will reduce the peak flow rates within this section of the storm sewer system, allowing the existing capacity of the system to handle large rain events and greatly minimize the risk of flooding and potential of cutting off access to the neighborhood again during emergency response. Providing extended detention also allows for redevelopment of the remediated brownfields at Atlas Industrial Park to serve as an employment center in a low-income neighborhood. Procurement of design and engineering firm (Q1), topographic survey, wetland delineation/mitigation/permitting as needed, hydrologic/hydraulic modeling, construction bidding (Q2-4), construction (Q-9).

Activity #2.3- Kingsbury Creek & Fairmount Park (Q1-7)- Fairmont Park/Lake Superior Zoo is at the center of a large multi-neighborhood, CDBG-eligible area at the heart of the HUD MID-URN target area. This area has fewer parks that are lower quality than other areas of the city. The Zoo suffered considerable financial loss and loss of animal life during the June 2012 disaster and is the site of the infamous “polar bear escape.” The zoo and park are on Kingsbury Creek which incurred $775,000 in unreimbursed flood damage that requires restoration of natural channels and riparian zones and reinforcement/replacement of historic stone foot bridges. These activities will provide this repair in a manner that adds attenuation of flows to reduce downstream damage, restores natural habitat, and adds trail and park amenities. The Polar Shores exhibit will be partially demolished (as animals will no longer be placed in the floodplain) with the potential of the piers being used for future open air amenity designed to resist floodwaters. NPDS stormwater, fill, & building permits (Q1-2), construction and habitat restoration(Q7-primary,Q10-secondary).

Activity #2.4- Trails and Bridges (Q1-Q8*)- The Cross City trail and the RR Rail Trail known as the DWP experienced over $5 million of unreimbursed trail damage as well as bridge damage over Knowlton, Sargent, and Stewart Creeks.  One flood-damaged trail bridge (former RR trestle) is over 130 years old needs to be demolished and replaced with a modern bridge that does not require piers located in the creek bed. This activity will not only repair flood damage, but will allow connection between LMI neighborhoods in the western portion of the MID-URN. In addition trail/pathway rebuilding will occur at the Keen Creek park which suffered unreimbursed flood damage that requires repair. The City of Duluth will engage with residents on planning for additional amenities at this park as part of their planning process. NDRC funds will be used for trail/stream work only. NPDS stormwater, fill, & building permits (Q1-2), construction and habitat restoration(Q7-primary,Q10-secondary).

Activity #2.5- Irving Fields & Memorial Park (Q1-Q8)- This project includes restoring athletic fields, parkland and limited facilities in a park that was inundated with flood waters. It has been phased into the field rebuild and the replacement community center, however commitment of leverage from the Irving Community Club may be at risk if both projects are not completed. The Irving Park athletic fields are a key resource for regional youth football leagues drawing hundreds of youth annually for FSA Football games. The community center that was destroyed during the flood will be relocated from Irving Park to a more centralized location (CC 2.8). In addition to the field work, stream channel and riparian zone restoration will occur. Permitting, design (Q1-2), construction and stream restoration (Q3-6).

Memorial Park Community Center (Q1-Q10)- Under NDRC the City will relocate the flood damaged and subsequently demolished Irving Community Center out of the floodplain. The new site will be central to three CDBG-eligible neighborhoods that lack community centers. The community center design will evolve to provide comprehensive services including meeting space for neighbors, fitness and wellness activities, out-of-school-time programming, and parent education. Memorial adjoins Laura MacArther Elementary School, serving a diverse and low income population (Free & Reduced Lunch rate of 77%) The park is central to the west Duluth business district which facilitates easy access to additional services, is on a bus line, and close to freeway access.  West Duluth is populated by many small, community-owned businesses that currently support the vulnerable populations through mentoring, internships, and the like. By relocating and working with NGO’s a long-term expansion of opportunities can be created for over 18,000 residents. Community meetings and design phase (Q1-3), plans and permitting (Q4), construction (Q5-10).

Activity # 2.6- Community Safe Rooms (Q-1-7)-  Located in the MID-URN area are three manufactured/mobile home parks that were variously affected by flooding. Because Minnesota is prone to tornadoes, including recently having the most tornadoes of any US state, mobile home parks are required to have access to community safe rooms. This activity would build a safe room in partnership with the park property owner as a model for the other two parks in the MID-URN. The safe room will serve as community gathering space and serve as a node for community-based wifi demonstration project. This approach will build greater safety during disasters, social cohesion, and access to information in an extremely low-income housing area. Design, permitting, procurement (Q1-2), construction (Q4-7).

Resilient Housing Solutions in the MID-URN

Values Project Metrics
Resilience Improve health and stability of housing for 275 households.
Economic Complete energy efficient repair of 250 housing units increasing efficiency by an average of 20%.
Social Relieve stress due to incomplete flood recovery for 275 households (rehab and buyouts)
Environmental Reduce carbon emissions from 250 households and return flood affected lots to natural state.

Buyouts (Q1-8)- The project will include the voluntary acquisition and demolition of homes and businesses that are located in the floodway and flood fringe of the St. Louis River, as well as, properties located throughout neighborhoods that were damaged during the 2012 flood or that are in areas that could be flooded in future events.  Properties will be acquired by the city; all structures will be permanently removed. Restoration of properties will be in partnership with Community Action Duluth’s StreamCorps program and where appropriate, lots will be used by Community Action Duluth’s Seeds of Success or the Lincoln Park Children and Families Collaborative for urban agriculture job training or community gardens to address food dessert issues. The priority area for buyouts is the Fond du Lac neighborhood in Duluth which suffers from frequent flooding due to its location on the St. Louis River. The secondary target for buyouts include homes scattered throughout the MID-URN that are affected by flooding from vertical waterways or were built on historic stormwater infrastructure where the cost of buyout is less than the project cost associated with repair/replacing infrastructure with the home still present. Neighborhood meetings and property identification (Q1-2), environmental reviews, purchase agreements (Q2-5), pre-demolition hazardous materials assessments, contractor procurement (Q4-6), demolition & site remediation(Q5-8).

Residential Resilient Recovery & Rehabilitation Fund (Q1-12)- In order to complete recovery at the household level, additional resources are needed. The Residential Resilient Recovery and Rehabilitation Fund will provide homeowners and small landlords with a one-stop shop experience and bundling of financial resources to complete recovery needs and build resilience. The fund will provide different tools based upon resilience needs and household income with grants and forgiveable, deferred, and amortizing loans. Each property will be assessed for recovery and resilience needs, a scope of work will be developed to include Healthy Homes criteria, increased energy efficiency, and bulk water management best practices. The fund will be administered by the Housing Resource Connection, a multi-agency partnership that seeks to serve residents by connecting them to the right resources to accomplish their housing rehabilitation. After surveying flood affected properties, it has been shown that unmet needs extend throughout the MID-URN. In addition to offering cross-MID-URN services, fund partners will create a special target area for historic rehabilitation in the Morgan Park neighborhood an investment that will be supported through stormwater management that protects the neighborhood from being cut off during the next event (#2.2). The State will use this approach in the MID-URN to inform future disaster recovery programming. Working in partnership with the University of Minnesota’s Cold Climate Research Center, the use of “excavationless” foundation insulation and waterproofing will be demonstrated on old foundations affected by flooding and/or soil shifting after the disaster. Marketing and process development (Q1), home inspections, scope development, procurement, loan closings, construction (Q2-12).

Reduction of Harm- Benefits to Vulnerable Populations- The portfolio of activities will reduce harm to residents over a long time period. Restoring natural flow on streams has an indefinite time period of protection (just subject to natural processes). Other green infrastructure measures can be expected to provide benefits for many decades. When the time horizon is extended to 50 years, the costs remain constant but the benefits continue to grow until they exceed costs (Eastern Research Group). Green infrastructure can capture water to reduce flash flooding during rain events reducing building damages and reducing pollution and sediment loading (NOAA Coastal Services Center). Providing access to green space is increasingly recognized as an environmental justice issue (Wolch et al). High quality parks improve health through increased activity. A meta-analysis of research shows a correlation between parks and physical activity and parks and better mental health (Trust for Public Land). Close proximity to green spaces was associated with less depression, anxiety, and other health problems and the relationship was strongest for children and people with low incomes (Maas). The strongest associations occurred with 1 kilometer of the subject’s home, suggesting that green space should be easily accessible (Maas) as demonstrated by the Minnesota proposal.

As provided under this proposal, designated locations should be established in each community to provide critical services such as shelter, food, water, electricity and communications (Clay Nesler). Community and recreation centers provide a variety of programs, services, and resources and strengthen citizenship and social cohesion (Glover, 2003; Maton, 2002). Establishing community centers may help reduce disparities in access to services and recreation and is a suggested strategy to strengthen social ties and reduce isolation among community members (Ottmann 2006, Glover 2004, London 2006, Lauer 2007). Community technology centers, community centers that emphasize technology access, are associated with positive youth development and strong peer-to-peer relationships, especially among minority youth in low income families (London 2006). In a Boston-based study, neighborhoods with a low density of community centers and recreation facilities were shown to have lower median incomes and larger minority populations than neighborhoods with a higher density of facilities (Hannon 2006).

       Alternatives Considered- Hundreds of projects were considered for inclusion in the Minnesota Application. Some were dismissed due to lack of scientific consensus on future impacts of climate change. For example, high lake water levels inundate the drainage system on Minnesota Point (the 7 mile developed sand bar extending between the harbor and Lake Superior). However, there is not a high level of certainty as to whether Great Lakes levels will rise or fall due to climate change. Other projects, although needed in the community, did not have a tie-back to the event including items like seawall repair that is needed at the Duluth Entertainment and Convention Center (super shelter) and port planning activities. Finally, an intense prioritization of projects was completed meaning that many projects that had both tie-back and could build resiliency are not included in the application, but may be pursued separately. This includes support for housing development outside the city core and stormwater projects on the dozens of other streams in the MID-URN. The Ripples of Resilience project will inform future activities for other watersheds.

Feasibility- Each project was evaluated for feasibility including partner capacity (MN-PII-ExC-Capacity.pdf and MN-PII-AttachA-Partner.pdf), adequacy of budgets (Source and Uses.xlsx), and ability to complete within the waiver-requested timeframe of 36 months (see schedule below). The overall approach creates synergies aligned with Minnesota’s Phase 1 framing. Each project will conform to accepted design practices, established codes, standards, modeling techniques, or best practices. By piloting the RELi Resiliency Action List and incorporating a strong ongoing evaluation process with the MN Environmental Quality Board, Minnesota Pollution Control Agency, Duluth Superior Area Community Foundation, and Ecolibrium3 with support from Perkins+Will, success will be ensured as well as capturing lessons learned for greater Ripples.

Fund Design and Marketability- The two funds that are incorporated into this proposal have been designed to respond to specific needs and expressed market. The flood-repair home rehabilitation program reflects needs determined through community-based research. The fund design recognizes the income of residents to determine funding package, and incorporates other funding programs where appropriate. The Lincoln Park Revitalization fills the gap for “early adopter” businesses interested in expanding business operations in a very-low income neighborhood commercial corridor. Partners have identified projects that will use the funds provided through NDRC. All construction completed through the funds will be responsive to energy efficiency and green building techniques/Healthy Homes to advance household and business economic and health resilience.

      Scaling/Scoping- Where appropriate, scaling or scoping has been discussed in each activity. As a full portfolio of activities the following priorities apply: VERY HIGH- 1.1 Miller Creek & Lincoln Park, 1.4 AICHO, 1.5 Esmond & Supportive, 1.6 Nettleton, 1.10 Lincoln Park Revitalization Fund, 1.11 Business Efficiency & Solar, 1.12 District Energy, 2.2 Gary-Morgan Park, 3.1 Buyouts, 3.2 Resilient Rehab ($50,678,000 project request from NDRC). This combination of projects would have the greatest impact on future disaster resilience, economic revitalization, and housing stability. A reduction to this amount would decrease the portfolios impact on creating social cohesion by supporting repair and enhancement of St. Louis River Corridor parks, trails, and community center. It would also decrease Ripples through historic redevelopment, mixed-use developments, and demonstration of micro-manufacturing.

       Project/Frame Correspondence- Minnesota’s Phase 1 framing was used as the core of project development and is applied to determine project metrics. A comprehensive consultation process as evidenced in MN-PII-AttachD-ConsultSum.pdf was followed. The Resilience Steering Committee will continue to bring multiple networks and stakeholders into the process as projects are implemented.

       Model/Replicable/Holistic – The entire Minnesota approach has been to create a holistic and replicable approach to community resilience. This has been accomplished through deep engagement at the local, state, and national level. Each activity has been designed to use or develop best practices. The Resilience Steering Committee approach will ensure distribution of project and program models. In addition, by partnering with the RELi certification system, Minnesota hopes to help develop a method that will allow monetization of benefits into the future that could be captured for additional resilience investments. We will use four key mechanisms to advance Ripples including embedding resilience in the MN GreenStep Cities program, and working with the Interagency Climate Adaptation Team, MN Silver Jackets, and the philanthropic PPREP program.

Schedule- Specific schedules are provided in each activity description, are included in partner agreements (MN-PII-AttachA-Partner.pdf), and summarized in the Schedule found at the end of the Soundness of Approach section. The schedule presented is for 36 months with a request to HUD for a waiver to extend the project by 12 months. Several projects are given secondary targets due to potential complications due to timing of contracts and potential work in trout streams. To insure the ability to complete work in a timely manner, a collaborative permitting process for stream work will be piloted under the leadership of the State. Local and federal agencies will participate in this process which will be evaluated for its effectiveness throughout the project. Schedule anticipates a start date of 7/1/2016. Milestones have been created to allow project management tracking by the applicant, general management, and HUD to ensure adequate progress on project implementation. Where multiple colors are presented during one quarter, it indicates that different activities will be proceeding simultaneously during that quarter.

Consistency with Plans-  The Minnesota NDRC project is consistent with the following plans with documentation provided per NOFA requirements for consolidated plans and the FEMA approved Local Mitigation Plan:

In addition to the above, Ripples of Resilience is consistence with the following:

  • St Louis River AOC Remedial Action Plan-US Environmental Protection Agency
  • Lower St. Louis Habitat Plan – St. Louis River Alliance
  • MN Parks and Trails 25-year Legacy Plan – MN DNR
  • Golden-winged Warble conservation (listing petition) – US Fish & Wildlife Service

Budget- All project costs have been evaluated to ensure that projected sources are sufficient for the scope of work proposed. This was done by consulting similar projects and understanding local/regional pricing of labor and materials. Partner organizations, agencies, and private industry were involved in determining budgets related to their areas of expertise. A further review of budgets was completed during the Benefit Cost analysis process. Detailed sources and uses statements are available in MN RoR Sources and Uses.pdf or in Excel format at MN RoR Source and Uses.xlsx.  Procurement processes used during the grant period will ensure cost reasonableness. The Minnesota application requests $76,279,213 in CDBG-NDR funds, will be leveraged (using NDRC documentation criteria) by $148,841,590 in direct leverage, $42,719,075 in supporting leverage, and $2,722,320 in project related funds that do not meet the NOFA criteria. In order to facilitate potential scaling and scoping, each activity has its own sources and uses budget. These budgets are compiled at the project level and then the application level.

There are three types of funding reflected in the project sources and uses statements for Minnesota’s Big Water: Ripples of Resilience (MN RoR Sources and Uses.xlsx). The first is the amount of CDBG-NDR funds requested as part of the NDRC application. The second is direct leverage which meets the NDRC-NOFA criteria including being 1) firmly committed, 2) having required documentation, 3) were committed after September 17, 2014, and 4) are being made available to the State to use for activities directly related to the undertaking of project activities directly related to the Big Water Minnesota: Ripples of Resilience application to NDRC.  The third type of funding in the sources and uses statements include dollars to complete activities that do not qualify as leverage under the NOFA definition, but will provide direct assistance to completing the activity.

In addition to the sources reflected in the project budgets, supporting leverage is listed on appropriate activity, project, or application sheets according to the best match of the impact of the supporting leverage to the levels of the application. Supporting leverage are commitments that the State of Minnesota and our partners have available to carry out activities that directly support the overall proposal, but are not part of the sources and uses of the CDBG-NDR-assisted project. Supporting leverage assists in building resilience in the MID-URN and the larger region. All leverage documentation can be found in Attachment B – Leverage Documentation (MN-PII-AttachB-Leverage).

By Activity

1-VW&CC

2-SLRC 3-Housing Gen Mgt. Applic.

Total

Direct

128,884,525

11,767,065 8,090,000 100,000  

148,841,590

Supporting

25,919,531

4,061,754 4,270,000 3,155,982 5,486,808

42,894,075

Total

154,804,056

15,828,819 12,360,000 3,255,982 5,486,808

191,735,665

 

Leverage Calculation
   
 Project Supporting

             37,407,267

 Application Supporting

               5,511,808

Total Supporting

             42,919,075

   
Direct Leverage

           148,841,590

Max Allwd Sup(1.5x direct)

           223,262,385

   
Supporting Leverage Used

             42,919,075

Direct Leverage

           148,841,590

Total Leverage

           191,760,665

   
Percent Leverage (NDRC request $76,279,213)

251%

 

Leverage Sources

Direct

Supporting

Total

1Roof Community Housing

   34,642,887

         2,770,000

    37,412,887

American Indian Community Housing Org.

1,836,588

150,000

1,986,588

Arrowhead Economic Opportunities Agency

1,500,000

1,500,000

Boisclair Corporation

37,873,944

37,873,944

Center City Housing

9,191,520

9,191,520

City of Duluth

47,919,316

3,327,604

51,246,920

Clean Energy Group

25,000

25,000

Community Action Duluth

25,000

Duluth Housing & Redevelopment Authority

1,000,000

1,000,000

Duluth Local Initiatives Support Corporation

3,155,982

3,155,982

Duluth Superior Area Community Foundation

100,000

54,150

154,150

Ecolibrium3

6,736,429

217,000

6,953,429

Entrepreneur Fund

2,500,000

13,797,531

16,297,531

Irving Community Club

2,000,000

2,000,000

Lincoln Park Children & Families Collaborative

330,000

330,000

Minnesota Housing Finance Agency

5,386,808

5,386,808

Sherman Associates, Inc

5,040,906

5,040,906

Urban Land Institute

100,000

100,000

US Environmental Protection Agency

680,000

680,000

Western Lake Superior Sanitary District  

11,400,000

11,400,000

Total

$148,841,590

$42,919,075

$191,760,665

Minnesota recognizes that impacts of climate change are already being felt throughout the state and has been actively engaged in establishing policy, creating financial incentives, and comprehensively exploring options for reducing emissions, adapting to climate change, and building resiliency within the state. On October 16, 2015 Governor Dayton and Lt. Governor Smith signed an international compact committing Minnesota to limiting the impact of climate change. The Under 2 MOU is a global compact among cities, states, and regions worldwide to limit the increase in global average temperature to below 2 degrees Celsius. The Lt. Governor signed the agreement at a meeting with the German Energy Delegation that previously met with Big Water: Ripples of Resilience application leadership team members while visiting the MID-URN.

Statewide Lessons Learned: Since the qualifying disaster in June of 2012, state agencies began an important progression of work to first define adaptation strategies (Interagency Climate Adaptation Team’s Adapting to Climate Change in Minnesota 2013), and then to communicate climate impacts and action strategies that residents and businesses can take through the Minnesota and Climate Change: Our Tomorrow Starts Today (2014). After the publication of the CDBG-NDRC NOFA on September 17, 2014, the Environmental Quality Board held a set of statewide stakeholder meetings (Climate Solutions and Economic Opportunities) facilitated by the Center for Climate Strategies (CSS).  The CSEO process included conducting an analysis on the potential to reduce greenhouse gases, projected societal costs and savings, and projected indirect effects on the economy to determine Minnesota-specific strategies that build resilience. Areas of exploration included energy supply, demand side energy efficiency, agriculture, forestry management, land use and transportation, and waste and water. This work has informed the development of Big Water: Ripples of Resilience in the energy and forest management sphere.

Actions improving permanent resilience in Minnesota that have been taken since the qualifying disaster in June 2012 include:

Statewide Legislative Action: Modification to the Renewable Portfolio Standard (2013) ­  In 2013, Minnesota modified its Renewable Portfolio Standard to add a 1.5% by 2020 carve out for solar by 2020 for Investor-Owned Utilities. Adoption of this legislation multiples the 2013 installed capacity of 13 MW by a factor of 35 to reach 450 MW by 2020. The legislation also created mandates for solar garden programs, first in the nation value-of-solar tariffs, and an expansion of net metering from 40 kW systems to 1 MW expanding the financial viability of projects.

Baseline Goal Outcome Duration Effective Date
13 MW Solar 450 MW Solar By 2020, 25 year life January 1, 2020

 

Statewide Raising Standards: Adoption of Minnesota Model Building Codes (2015)Minnesota updated the model building code from a base of the 2006 ICC to 2012 ICC and completed a durability study report for the Construction Code Advisory Council. Implementation of the residential energy code component begins on February 21, 2015 and creates a 30 year savings of $9,873 for homes constructed under the new code (5.7 year payback). Impact information was compiled as part of a US DOE study.

Baseline Goal Outcome Duration Effective Date
2006 ICC $9,373 (30yr) energy savings * 17,000 homes per year Until next upgrade February 2015

 

Statewide Grant Funds for Community Resilience (2014)- The Pollution Control Agency has established grant awards for community resiliency. Funding has included awards to specifically educate and conduct outreach to increase resiliency among the state’s most vulnerable and underserved populations including low-income, rural, and communities of color, regional resiliency convenings on climate adaptation ideation and innovation, and establishment of a local framework for city-level resiliency planning. Climate resilience has also been established as a priority area for MPCA Environmental Assistance Grant Funding and a new best practice will be added to the Minnesota GreenStep Cities program with draft release on October 28, 2015.

Baseline Goal Outcome Duration Effective Date
$0 $200,000-400,000 total, 5 communities per year Ongoing July 1, 2014

 

Statewide GreenCorps Program Alignment: The MN Pollution Control Agency has modified their GreenCorps program to use climate resilience as the base for members and organization/city participation. In addition, the MPCA expanded climate education by adopting climate resilience (since 2014) for the MN State Fair Eco-Experience with potential of exposure to 1.7 million annual attendees.

Baseline Goal Outcome Duration Effective Date
Not resilience related 40 GreenCorps members per year focused on resilience 2015-2018 July 1, 2015

 

Plan Alignment: MN Department of Health Climate Change Vulnerability Assessment (2014) and Health Impact Assessment (MID-URN neighborhoods 2014-2015)- The Department of Health has studied and reported on the climate vulnerabilities faced by Minnesotans including extreme heat, air pollution, vector-borne disease, flooding and flash flooding, drought. Utilizing the information developed, a pilot project was conducted in two MID-URN neighborhoods (Gary New Duluth and Lincoln Park) to complete Health Impact Assessments as part of land-use planning completed by the City of Duluth staff in May of 2015 and adopted by the City Council in September of 2015.

Baseline Goal Outcome Duration Effective Date
No Health Impact Assess. 2 plans, zoning changes affecting 6,800 residents Ongoing September 2015

 

Watershed Restoration and Protection Strategy for Duluth (2014-2015) MPCA, MN Sea Grant, UMD-NRRI, and US Geological Survey are completing a WRAP for urban streams flowing through MID-URN areas of Duluth. This is part of a larger State shift from county-based planning districts to a One Watershed One Plan approach that cuts across geopolitical boundaries to bring units of government together to create strategies based on watersheds. Since the qualifying disaster, Minnesota has piloted this approach and in now in the official transition which affects how modeling is down and improves effectiveness of strategies. Two tools have also been developed to advance resilience of watersheds. The first is a Wetland Restoration Prioritization Tool and Minnesota Wetlands Restoration Guide (MN Pollution Control Agency and U of M Natural Resources Research Institute) designed to increase the impact of restoration dollars. The second is a Wetland Resiliency Calculator (MN Board of Soil and Water Resources) to assess how resilient restored wetlands are to climate change so replacement or restoration achieves the desired results into the future. BWRS is also in the process (to be complete by 2016) of creating 30 new seed mixtures and establishing new restoration vegetation guidelines. A specific flood tolerant mix has been developed for northeastern Minnesota.

Citywide Establishment of Transfer of Development Rights Program: Duluth (2016)- The City of Duluth is committed to taking action to eliminate future damage from flooding by creation of a Transfer of Development Right Program and alignment of the City of Duluth Comprehensive Plan. The TDR program will deter development of housing in areas that are at-risk for future flooding or have the potential to increase the storage threshold of water through wetland preservation or other means. The City will pass an ordinance that develops the powers of the city to receive and purchase development rights to enhance the orderly development, or preservation of lands, especially those impacted by June 2012 floods. Required documentation for future action can be found at DuluthTDR.pdf.

Baseline Goal Outcome Duration Effective Date
0 100 acres, 5-10 properties Next 5 years July 1, 2016

 

June 2012, St. Louis River

Minnesota Department of Transportation Participation in Flash Flood Vulnerability and Adaptation Assessment Pilot Project- MNDOT is participating with the Federal Highway Administration, State DOTs, Metropolitan Planning Organizations, and Federal Land Management Agencies to pilot approaches to conduct climate change and extreme weather vulnerability assessments of transportation infrastructure and to analyze options for adapting and improving resiliency. Final MN report MNDOTAssessment.pdf.

Baseline Goal Outcome Duration Effective Date
0 2 District Vulnerability Assessments 2013-2015- informs future asset planning December 2012- framework established
State of Minnesota Consultation Summary
Agency Name or Stakeholder Group Agency Type – Target Population (if applicable) Type of Outreach Materials Provided

 

 
Public Hearing Required by NOFA Public-  October 1, 2015 5:00-7:00 p.m. Searchable from applicant’s website, Public Hearing, press release, formal posting, social media, http://mn.gov/deed/about/meetings-events/public-meetings/duluth-disaster.jsp Draft Phase II Application, Summary Board as prepared for Rockefeller Funder’s Summit, PowerPoint presentation of process, and activities, public testimony
Public Comment Period Required by HUD Public- October 1, 2015 to end of day October 16, 2015, comments accepted by multiple means Public Hearing, press release, formal posting, social media, http://mn.gov/deed/about/meetings-events/public-meetings/duluth-disaster.jsp Draft Phase II Application
Grantor’s Alliance Group of regional philanthropic organizations. Meeting Background on Phase 1 application and anticipated project selection process.
River Corridor Coalition Coalition of neighborhood representatives from MID-URN river corridor neighborhoods Monthly series of meetings Background on Phase 1 application, project brainstorming, and project selection process.
Sustainable Twin Ports Partners, potential partners and stakeholders Open meeting One-on-one outreach with partners and stakeholders about NDRC. Updates on where we are in the process and sharing timeline. Opportunity for participants to ask questions and get clarification about the grant.
Food Hub Stakeholders Partners, potential partners, and stakeholders Open meeting Food hub definitions materials and discussion about needs to address Duluth food deserts, producers, job creation, and related projects already in the pipeline.
Interagency Climate Adaptation Team Minnesota state agency cross-disciplinary team Conference call Update on Phase I application and request for participation in the RFI/RFK process.
Fond du Lac Band of the Lake Superior Chippewa Planning division Meeting Update on Phase I and project selection process for Phase II, discussion of Phase II partnerships
FEMA Phase I Discovery FEMA Stakeholder meeting St. Louis Phase I discovery process draft and discussion
Morgan Park Community Club MID-URN community club Monthly meetings Updates on applications
MN Housing Finance Agency State finance agency Meetings Technical assistance session on single family rehab, discussion of housing plans and potential leverage to support Phase II application
Fond du Lac Tribal and Community College Tribal college Presentation Presentation of entrepreneurial activities and approaches to advance employment
Great Lakes Integrated Sciences and Assessment Center Regional NOAA climate sciences centers Phone call Update on process and project selection, discussion of impacts and opportunities to model city-scale adaptation planning for Great Lakes Region
McKnight Foundation Foundation Meeting Discussion of state/regional energy work and NDRC approaches
RFI/RFK public information session Organizations, citizens, government departments Public meeting, series of 1 on 1 consultations Public meeting followed by a week of 1- on- 1 consultations with any interested parties on NDRC objectives, climate impacts, co-benefits
Portland University Urban Sustainability Accelerator Program University Series of meetings Work to determine neighborhood connections and design options on district heat transition
Habitat for Humanity Housing Agency Meeting NDRC update and RFI process, partnership discussion
Minnesota Power and ComfortSystems Utilities serving MID-URN Series of meetings NDRC updates, activities, discussion of energy transition strategies
Energy Action Plan 2025 Statewide stakeholder group to inform Legislative Energy Commission on recommendations Series of meetings Discussion of mitigation and adaptation strategies, notification of NDRC process
Public Meeting Citizen meeting to discuss park and trail priorities in the MID-URN Public meeting Highlight of Phase 1 application and framing, survey of residents on priorities
Freshwater Future Nonprofit Great Lakes organization from Michigan Telephone conference Discussion of opportunities and challenges in addressing climate impacts in Great Lake region
Isaak Walton League Environmental group in northeastern Minnesota Presentation Presentation of NDRC, Phase 1 framing, project selection process, working objectives of application
NOAA Federal agency Meeting Discussion of Phase 1 framing and tie in to NOAA goals and regional work
Farm Beginnings/ Lake Superior Farmers Association Agricultural organization Meeting Discussion of resilience in regional farm population, challenges to regional food system due to climate change
Conflict Resolution Center Nonprofit working to build community mediation strategies/program Meeting Discussion of community engagement and process for working with minority and underrepresented populations in the state
Door-to-door canvass Morgan Park neighborhood (MID-URN) Door-to-door canvass Canvass of low-income neighborhood in the MID-URN, targeted energy assessments to determine energy efficiency and historic preservation needs in housing stock
Solar Market Pathways – DOE DOE program to advance solar installation Conference discussion Discussion on resilient solar and application to Minnesota projects, connected to Clean Energy Group
Affordable Comfort Institute National energy efficiency association Conference presentation Presentation on qualifying disaster, response, and anticipated resilience actions
MID-URN businesses Small businesses Meetings Background on NDRC, Phase 1 framing, RFI/RFK process, and discussion of resilience needs
MNIPL Interfaith group Meetings Ongoing discussion on energy, equity, and solar
Irving Community Irving Community Club Public Meeting Meeting to discuss design options to replace flood-destroyed community center and park
MPCA State pollution control agency Meeting Presentation on RELi system to examine potential application of standards for Minnesota Projects, presentation by Georgetown Climate Center on state building codes
St. Paul Port Authority Port Authority Meeting Discussion of financing tools and partnership on delivering PACE in the MID-URN community
Public MID-URN community Public Hearing Public hearing on CDBG priorities in the MID-URN community
Metropolitan Council Represents 168 St. Paul/Minneapolis metropolitan communities Conference Presentation on NDRC, Minnesota approach, potential regional connections outside of the MID-URN
MID-URN businesses Small businesses Tour MID-URN businesses and MN NDRC application team members traveled to Northeast Minneapolis to meet with BID, cooperative representatives, and tour economic revitalization work
University of Minnesota, Energy Transition Lab State research department of university, law school Series of meetings Discussion of NDRC goals and potential components of a BCA, research projects defined for solar, commercial efficiency, rental properties
Arrowhead Regional Development Council Metropolitan Interstate Commission Meeting Discussion of priorities, projects, and alignment with regional plans
Western Lake Superior Sanitary District Regional wastewater treatment, hazardous materials, and composting site Meeting Discussion of priorities, projects, and alignment with regional plans
REAMP 8 state network of organizations and foundations working to reduce carbon by 80% by 2050 Meeting Discussion of NDRC and potential opportunities to advance carbon mitigation as a component of resilience projects
Northland Foundation Regional initiative foundation Meeting Discussion of NDRC and potential partnerships
Urban Land Institute 35,000 member international organization of planners/designers National Resilience Panel (week-long), public meetings, public presentation Briefing book, background information on Miller Creek watershed, panel recommendations at www.bigwatermn.com

 

Workforce Development Council Multi agency group working on jobs and training programs in northeastern Minnesota Meeting Discussion of NDRC and potential partnerships
Climate Coalition Northern Minnesota coalition of state agency staff and local organizations Meeting including state climatologist Changing climate presentation, NDRC background and invitation to 60+ attendees to participate in ongoing project discussion
At-Home in Duluth 25 NGO’s working in MID-URN Series of meeting Ongoing conversations, discussion of projects, priorities, and partnerships
Northland Voices 30 minute television news program distributed in northern Minnesota and Wisconsin 30 Minute news discussion Update on process, request for information from viewers, notification of flood-affected parities meeting and website for ongoing meetings
MN EQB State agency commissioners and citizen representatives Public meeting Presentation on NDRC and integrated approach between agencies and local unit of government
MN Department of Health State health agency Meeting Discussion of ongoing health/mental health concerns from 2011-13 disasters, focused on qualifying disaster
Lincoln Park and Children and Families Coalition Neighborhood organization Meeting Discussion of ongoing risks and stressors in the MID-URN
Blue Cross Blue Shield Center for Prevention Healthcare Insurance Provider- Funder Meeting Discussion of wellness work in MID-URN to follow up on Phase 1 framing
Public February 23-March 9, 2015

Comments accepted online, in writing, via phone, and/or TTY

Public Comment Period Phase I application posted for comment and available upon request. Citizens also directed to www.BigWaterMN.com for additional NDRC and resilience information. (posting in St. Paul Pioneer Press to meet State requirements and Duluth News Tribune to meet local requirements, notice on MN DEED homepage, email invitations)
Government agencies, designers, theorists, academics, corporate practitioners, industry experts, students, and the public. DredgeFest Great Lakes is a symposiumfield expedition, and speculative design workshop about the human manipulation of sediments. 3-day symposium held in Minneapolis with a field day to the MID-URN area. Local to international designers participated in action-filled workshops to look at sediment manipulation. The culmination of the symposium was a trip to the MID-URN area where 50+ participants toured by bus and boat the St. Louis River and estuary, and the Duluth-Superior harbor to see current and proposed projects and understand the impacts from the June 2012 flood. After a presentation on Minnesota’s NDRC Ripples of Resilience framing, attendees were asked to participate applying their knowledge and skills in a rapid iteration exercise on what resilience means in each layer identified by the Minnesota team.
State Energy Office Utility Conservation Improvement program, DOE Combined Heat and Power Stakeholder Group, Distributed Solar Program Meeting Discussion of MN energy resilience approaches and goals. Exploration of policies and programs that can be demonstrated or adapted to and from the MID-URN. Discussion of leverage opportunities.
State Energy Action Plan 2025 Stakeholder Group Cross-sector stakeholder group including citizens, utilities, state agencies, NGO’s, technical experts, PUC Meetings Information on actions taken to date and group identification of areas that have greatest potential to reduce carbon and increase state resiliency in the building, electrical generation, commercial/industrial, efficiency, and transportation sectors. Presentation of Phase I framing and energy as a pillar or resilience. Invitation for individual or organizational follow-up.
State Energy Stakeholders Legislative Energy Commission directed group of stakeholders including governmental agencies, private industry, local government, environmental groups Survey Broad focus areas of energy technologies/strategies were determined for advancing state’s goal of reaching 80% carbon reduction by 2050. Stakeholders prioritized 1) advanced electric distribution grid, 2) thermal energy, 3) energy and climate planning action, 4) bioeconomy (energy and materials from biological resources), and 5) Industrial energy efficiency, combine heat and power
MPCA GreenCorps State sponsored AmeriCorps program recently modified to use resilience as program framework Meeting/training session Presentation of resilience concepts, MN framework, NDRC, and Phase II activities to new class of 40 GreenCorps members.
Healthcare Providers/Public Health Integrated Behavior Health Convening by Minnesota Department of Health and Northland Regional Flood Recovery Full day convening focused on integrated health care, building behavioral health capacity, April 20, 2015 Presentation from post disaster health work focused on mental health issues including the “Finding Hope, Healing, and Wellness, Flood Resiliency Project” report, survey results from disaster affected households, and interactive work to identify actions at the local level that can improve access to mental healthcare, tools that can help create systemic operational changes that facilitate integrated behavioral healthcare, operational strategies of providers that can enhance patient resilience, and methods of assessing patients’ medical, social, and mental health responses to nearby disasters that enhance community resilience.
Disaster Affected Households Minnesota Department of Health lead survey 1600 surveys sent to households in the DR-4069 area. 224 received from St. Louis, Carlton, Pine, and Aitkin Counties Survey developed to identify how many households still have unfinished construction projects, what the debt load or financial strain on the respondent, perceived stress and health during recovery, and how many respondents have moisture and mold issues remaining in their homes. Results indicated that 54% of St. Louis County residents (location of MID-URN) still have homes not returned to pre-flood conditions. 75% of respondents indicated financial insecurity due to recovery debt. 72% indicated periodic or frequent stress from the flood but only 4% received any stress management assistance. 14% indicate that mold/moisture is difficult or impossible to manage/clean and remains. Only 6% said their outside space was fully recovered and would prevent damage in another flood.
Environmental and social justice organizations and vulnerable populations Minnesota Pollution Control Agency, host Community feedback meeting in the MID-URN Public meeting to discuss environmental justice framework for the State of Minnesota held in the MID-URN. Goal of meeting was to ensure that environmental justice becomes embedded in state work including NDRC. Presentation included identification of areas where lower income individuals and persons of color may be experiencing more harm, approach on increasing work on monitoring and evaluating risks to health, community-oriented communications including translations, harder look a pollution sources, targeting assistance and grants to reduce smaller sources. MID-URN area was identified as area of “potential concern.”  Participants provided comment.
Rotary #25 & EcoRotary 200 business and community members from northeastern Minnesota

 

Presentation and Q&A Presentation of NDRC, ripples of resilience framing, anticipated future impacts of climate change and unmet needs. Discussion of anticipated Phase II projects.
Duluth Superior Area Community Foundation Board of Trustees Board of community leaders from northeastern Minnesota and northwestern Wisconsin Meeting Presentation of NDRC Phase II process, potential framing and projects being considered, public comment period.
Philanthropic Preparedness Resilience and Emergency Partnership (PPREP) Program of the Funders Network for Smart Growth and Livable Communities and the Center for Disaster Philanthropy for 17 community foundations from across the Midwest Workshop Presentation of NDRC, Phase II process, pillars of resilience,  potential framing and projects being considered, public comment period
Biodiversity Fund Advisory Committee of the Duluth Superior Area Community Foundation Committee of environmentalists, scientists, community members Meeting Presentation of  NDRC work and process

 

Minnesota Council on Foundations Annual Conference (scheduled for October 29) Independent, private, corporate and community foundations from across the State of Minnesota Conference Opening plenary presentation on the disaster and resilience work of the Duluth Superior Area Community Foundation, including NDRC
Duluth LISC Local Advisory Board Regional bankers, community representatives, developers, communications specialists Meeting Presentation of Phase II activities and discussion of alignment with At-Home in Duluth strategic planning and neighborhood plans
Rockefeller Resilience Academy Technical experts, philanthropic partners Meeting Working sessions to improve resilience approach and application.
Rockefeller Funders Summit Technical experts, philanthropic partners Meeting Working sessions to improve resilience approach and application.
Senator Franken US Senate Meeting, tour Senator Franken toured successful housing projects in the target area and discussed with housing providers, labor leaders, realtors, Chamber of Commerce, and NDRC General Management partners the housing challenge faced in the MID-URN area. Discussion of NDRC approach and impact of funding on housing shortage in the MID-URN and on increasing quality of old housing stock.
Senator Klobuchar’s Office US Senate Phone call Discussion of Minnesota Phase II approach and needs. Draft Phase II application presented.
Representative Nolan’s Office US House of Representatives Phone call, in-person meeting Discussion of Minnesota Phase II approach and needs. Draft Phase II application presented.
Harbor Technical Advisory Committee Environmental organizations, agencies, city representatives from MN and WI, transportation, Metropolitan Interstate Commission Meetings Presentation on NDRC, discussion of potential projects and partnerships, draft of selected activities, determination of leverage
MN Technical Assistance Program University Technical Assistance program for businesses Meetings (originally connected through EPA member on Resilience Steering Committee) Discussion of business technical assistance approaches that could accompany the Lincoln Park revitalization fund to help participants be more financial secure through energy analysis, LEAN process assistance, and material use. Initial conversation of interns for 2016 in Lincoln Park to focus on reducing commercial VOC releases due to concentration of automotive businesses and significant health disparities in the neighborhood.
Resilient Power think tank session Clean Energy Group, stakeholders, national funders, HUD, disability advocate 2-day meeting Presentation of Minnesota Phase II approach and incorporation of solar into resiliency approach. Discussion of policies, projects, and communication needs to advance resilient power for vulnerable populations.
All consultations listed above are in addition to the extensive consultations that occurred during Phase I. Many Phase I consultations had follow-up during Phase II. Phase I consultation summary can be found at: https://www.dropbox.com/s/xa3c9dn3s2l9yyo/BigWaterMNRoR-AttachD-ConsultSum.pdf?dl=0

Big Water MN: Ripples of Resilience Benefit Cost Analysis (BCA)

 

  1. BCA Background Information
    • Benefit Cost Analysis Summary

The Minnesota NDRC Application, Big Water MN: Ripples of Resilience, has three projects as defined by the NDRC NOFA as “an activity or a group of integrally related activities designed to accomplish one or more specific community development objectives in whole or in part.” The first two projects represent integrally related projects divided into geographic area (east & west). The third project provides buyouts and resilient rehabilitation of flood-damaged homes across the entire Minnesota most-impacted, most-distressed area with unmet recovery needs (MID-URN). The projects are:

 

  • Project 1: Vertical Waterways & City Core Resilience (eastern MID-URN)
  • Project 2: St. Louis River Corridor Resilience (western MID-URN)
  • Project 3: Resilient Housing Solutions in the MID-URN (entire MID-URN)

 

For the NDRC, HUD defines a covered project that needs a BCA as “a major infrastructure project having an estimated total cost of $50 million or more (including at least $10 million of CDBG-DR or CDBG-NDR funds), or benefiting multiple counties.” In order to provide scoping and scaling opportunities, the projects have been divided as above. As a result, only Project 1: Vertical Waterways & City Core Resilience meeting the NDRC NOFA definition of a covered project on its own. However, because the portfolio of three projects creates a synergistic advancement of resilience in the MID-URN area, we have included initial benefit cost analysis information for projects 2 & 3.

 

Analysis of each project, and the application as a whole, is summarized below:

 

Project NPV (7% Discount) Benefits Cost BCR
1.      Vertical Waterways & the City Core $332,703,276 $181,527,525 1.83
2.      St. Louis River Corridor $28,252,351 $28,073,298 1.00A
3.      MID-URN Housing Solutions $526,684 $16,500,000 .93B
Ripples of Resilience Total $361,482,311 $226,100,823 1.59

 

A&B- considerable non-monetized benefits increase the actual benefit of the projects

B- inherent loss of value due to buyouts of properties

 

  • Benefit Cost Analysis Process

The Benefit Cost Analysis was prepared by the Minnesota Department of Employment of Economic Development in partnership with the City of Duluth, Ecolibrium3, and Duluth LISC. IMPLAN analysis was completed by MN DEED Economic Analyst Director Neal Young. The additional BCA components were provided by Dr. Richard Persky (Duluth LISC VISTA) and Adrienne Dinneen (Lake Superior College). The University of Minnesota Duluth GIS Department completed HAZUS modeling. Uncertainty is rated throughout this document on a scale of 1-5, with 1 being the most certain and 5 the least certain.

 

  1. Project 1 – Vertical Waterways and City Core Resilience
    • Project Description

The Vertical Waterways and City Core Resilience Project (#1) addresses the main cause of damage from the qualifying disaster as described in MN-PII-ExD-Need.pdf– flash flooding due to the 47 streams that cascade down Duluth’s 800 foot bluff. This project integrates above the bluff water management strategies and downstream revitalization activities into a holistic approach to build resilience. Although there are twelve separate activities in this project to provide scaling and scoping opportunities, activities can be roughly divided into three interrelated categories: 1) water management, 2) revitalization, and 3) resilient energy transition. Specifically, activities include green water detention strategies on the three largest watersheds impacting the eastern part of the MID-URN including Miller Creek which flows into the Lincoln Park Neighborhood, and Brewery and Chester Creeks that flow into the Hillside/Downtown neighborhoods. Lincoln Park and the Hillside neighborhood represent the lowest income neighborhoods in Duluth and the highest level of minority and disabled individuals. Over 20 watersheds were examined for greatest potential reduction of harm and co-benefits to the community. These streams were selected because of the level of damage, potential for flow reductions, data available from a NOAA green infrastructure study, headwaters land-use and the ability to protect economic interests above the bluff, and the poverty and other social determinants downstream. The downstream neighborhoods and commercial centers have pre-established stakeholder groups and plans that can also be advanced through the project.

Revitalization activities center on transformational housing projects that address the need for replacement units, the extreme shortage of affordable housing, the need to deconcentrate poverty through mixed-income developments, and demonstration of resilient projects in different housing categories including new construction, adaptive reuse, mixed-use, and historic. Each housing project allows for further densification of housing with flood protection, energy efficiency and renewable development, and development of resilient best management practices. In addition to housing projects, economic revitalization is supported through mixed-use developments, a targeted revitalization fund for an emerging district where property values remain too low to allow standard bank financing, and jobs and training opportunities for low-income and minority individuals.

The final focus on this project is energy transition. This was identified as a need not only due to the results of the qualifying disaster which included a $90 million hydropower facility and earthen damn failure on the St. Louis Rivere that exacerbated flooding in the MID-URN, but due to ongoing energy poverty, climate impacts of current fuel mixes, economic leakage from Minnesota, and concerns over energy security. Extreme cold is an annual stressor that can be mitigated through a focus on efficiency. Minnesota’s low-income populations live in homes that use on average 39% more energy due to the age of the properties/lack of efficiency measures. This is especially true in the City of Duluth where the housing stock is the oldest in Minnesota with more than 50% of homes are older than 80 years. Energy transition in this project area focuses on the flood damaged Duluth district heat system which over 180 buildings downtown including emergency shelters, the foodbank, affordable housing, NGO’s, governmental structures, and regional medical centers and on establishing resilient power for critical infrastructure including water pumping and natural gas distribution. A supporting project will provide combine-heat and power for regional water treatment.

Although a complex set of activities, each synergistically builds resilience in accordance with Minnesota’s Phase 1 framing (housing, economy, resource, energy, health).

 

  • Overview of Benefit-Cost Analysis
Activity NPV (7% Discount) Benefits Cost BCR
1.1  Miller Creek $21,861,013 $19,166,747 1.14
1.2  Brewery Creek $3,234,753 $750,000 4.31
1.3  Chester Creek $5,915,027 $3,350,000 1.76
1.4  AICHO $9,601,381 $2,336,588 4.10
1.5  Esmond &Supportive $48,627,401 $18,514,407 2.62
1.6  Nettleton $25,973,767 $7,573,156 3.42
1.7  Historic Armory $56,127,169 $41,953,944 1.35
1.8  Health District $83,516,984 $29,270,000 2.85
1.9  Micro-manufacturing $7,673,232 $3,765,000 2.03
1.10 Revitalization Fund $3,906,421 $3,750,000 1.04
1.11 Small Business EE/Solar $14,408,435 $9,824,737 1.46
1.12 District Energy $51,857,693 $41,272,946 1.25
Project 1- Vertical Waterways & the City Core Total $332,703,276  

$181,527,525

 

1.83

 

  • Activities

Miller Creek (1.1)

 

Activity Description: To reconnect Miller Creek to its floodplain and reduce “above the bluff” flooding in the regional retail corridor and the low-income neighborhood downstream from it, this activity combines stormwater management through green infrastructure, stream restoration, and park improvements. This activity is part of a larger plan to reduce flooding risks to the Miller Hill Mall regional retail corridor and the downstream Lincoln Park neighborhood.  The project will provide attenuation of flood flows above the “bluff” by remeandering the stream within the stream/floodplain channel above the Kohls Store. Remeandering will reconnect the stream to the floodplain, providing storage or detention of high flow events and reducing peak runoff rates down-gradient.  This will help reduce flooding to roadways and property and provide flood control for the stream and adjacent areas at the Miller Hill regional economic center and along the hillside as the creek flows towards its mouth at the St. Louis River. Reducing flood risk will reduce economic losses to retail establishments and provide uninterrupted employment for the many low-to-moderate income (LMI) individuals who work in the retail corridor. By completing these Miller Creek projects, Minnesota will provide for expansion and economic growth opportunities by decreasing flood hazard boundaries and associated flood development restrictions.

 

Schedule: Permitting for wetland impacts and stream restoration, HEC-RAS model to adjust floodplain mapping, complete EAW (Q1-2); complete design and award construction bids (Q3-4); construction (Q5-6). Because of short construction seasons and additional restrictions on work due to potential impacts to trout, a secondary completion date of Q10 has also been established.

 

This section of the creek is in the center of a large regional retail commercial corridor.  Past development has realigned the original stream channel and has reduced its floodplain.  The project will increase the capacity of the existing box culverts by replacing them with clear span bridges that will have a larger cross-sectional flow area, which will allow stream flows to pass below the bridge and not overtop onto the adjacent roadways and into businesses. Although the four existing double box culverts did not suffer damage in the 2012 flood, the stream alignment, bridge configuration and loss of floodplain through years of development have reduced the flow capacity of this section of Miller Creek. Frequent flooding has occurred in the adjacent area, resulting in traffic disruptions, loss of business, life/safety issues, and consistent inundation of both city/county/state infrastructure and private property. During the 2012 flood, extensive flooding occurred in the immediate area.  Multiple commercial establishments were damaged and although their repairs are complete, unless the cause of the flooding is addressed, they remain at risk for future damage and loss of business, with the further consequence that LMI employees would lose work and income. In conjunction with the installation of 4 new bridges, the restoration/recreation of the floodplain through this section of the creek will increase the flow capacity of the stream using natural stream characteristics.

 

Schedule: Permitting for wetland impacts and stream restoration, HEC-RAS model to adjust floodplain mapping, complete EAW (Q1-3); complete design and award construction bids (Q4-6); construction (Q6-12). Although this project could proceed faster, the schedule reflects a contingency period based upon seasonal access and restrictions on trout streams.

 

The objective of the third component is to reduce runoff rates in the privately owned land along Miller Creek. The existing land use in the area is large box stores that were built before the City of Duluth commissioned flood plain maps and before trout streams received public waters protection. The installation of large below grade stormwater runoff detention structures will capture runoff and attenuate flows, reducing the discharge rate and thereby minimizing the risk of flooding to the adjacent stream and down-gradient areas.  Sites for green infrastructure will be identified as project locations are studied thoroughly, and appropriate surface infrastructure will be added to improve stormwater management and the aesthetics of the properties.  These projects will require partnership with the property owners to allow permanent easements on their property for the underground structures and taking on some of the financial costs of construction and/or O&M.

 

Schedule: Procure design services, finalize public/private partnership agreements (Q1-2); complete 1st round of construction plans/bidding (Q3); construct 1st round detention, recruit second round of private partners (Q4-6); construction (Q7-12).

 

Lincoln Park (the park from which the neighborhood takes its name) experienced approximately $1.6 M of damage to trails and grounds for which FEMA did not fund repairs. Miller Creek has been channelized through the park, and otherwise altered over the years. The flood blew out many of the channel walls and scoured the adjacent trails and parkland. This activity will repair the remaining damage while improving park quality through neighborhood participation in a master planning process. Due to historic bridges and stream walls, EAW and SHPO review is needed.

 

Schedule: Community meetings and design phase (Q1-3); plans and permitting (Q4); construction (Q5-10*). A secondary target date has been established due to work being located in a trout stream.

 

Activity #1.1.- Overview of Benefit Cost Analysis

 

1.1 Miller Creek Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 100 years ($19,166,747)    
Resilience 100 years   $322,800 $4,606,114
Environmental Not monetized      
Economic Revitalization 3 years     $17,254,899
Net Present Value (7%) $2,694,266      
BCR 1.14      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 6   Costs have been aggregated for the purposes of this analysis. ($19,166,747) 2
Resilience Value
Flood damage

reduction

6 Property damage and economic losses from flooding, avoided through stormwater retention HAZUS modeling done by University of Minnesota-Duluth Geospatial Analysis Center, using stock national data (HAZUSMiller.pdf). $4,606,114 2
Environmental Value
Not monetized 6 New wetlands; wildlife habitat See below.    
Economic Revitalization
Economic impact of construction 6 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development $17,254,899 2

 

1.1 Lifecycle Cost: The uncertainty value for this was set at 2 because of some uncertainty related to participation by private property owners. Overall, the costs are related to building of wetlands which will be the build-it-and-done portion of the project. As noted in the activity description “These projects will require partnership with the property owners to allow permanent easements on their property for the underground structures and taking on some of the financial costs of construction and/or O&M.” Cost of construction found in MN RoR Sources and Uses.pdf.

 

1.1 Resilience Value: The uncertainty value for this was set at 2 because stock national data (HAZUS) was used and this does not completely match City data. However the HAZUS modelling method using stock national data is widely used to compare potential economic loss across different regions and is endorsed by FEMA.

 

1.1 Environmental Value: The project will also restore wetlands by remeandering Miller Creek. The exact area to be affected will be determined during the planning process, and so the value of the environmental services which will be provided by the restored wetlands cannot be calculated at this time. Miller Creek is a Minnesota Department of Natural Resources designated trout stream. Restoration of the stream and newly constructed wetlands will provide habitat to encourage the repopulation of this species. Additional habitat will be provided for native and migratory birds.

 

1.1 Economic Revitalization: The uncertainty value for this was set at 2 because the time constraints allowed for only limited-accuracy IMPLAN analysis.

 

Brewery Creek (1.2)

 

1.2 Activity Description: Brewery Creek originates north of Blackman Avenue and west of Central Entrance. This is just short of a mile from its original headwaters in what was once called Grassy Lake. The majority of Brewery Creek, below Skyline Parkway, is buried. Almost all (estimated 90-95%) of the 914 acres in the Brewery Creek watershed is above Skyline Parkway, where few wetlands exist to buffer the storm water runoff that is generated during a rain event. The Brewery Creek watershed, located in the central part of the City, is a combination of open channel and piped conditions on top of the hill, and mostly buried in storm tunnels going down the hill to Lake Superior. These storm tunnels date from the late 1800s to the 1930s, and were built by the City and private developers with a variety of materials and cross sectional shapes. The flood damaged a portion of the tunnels and also stressed the system as a whole. The Brewery Creek storm tunnels are aligned through the Health District and Hillside neighborhood of Duluth, a lower-income neighborhood with home values below the city average and a high percentage of rental properties.  Because the tunnels run under a number of buildings and high-traffic streets, their continued functioning is imperative for this neighborhood and the City as a whole, and protecting the structures above and adjacent to the tunnels is a life-safety concern. Providing stormwater runoff storage and extended detention on top of the hill will reduce the stress on the limited flow capacity of the storm tunnel, thus reducing the risk of a tunnel failure and consequent uncontrolled flooding in the Hillside neighborhood. Addressing flow issues will also allow for redevelopment of a cornerstone parcel into mixed-use development, reconnecting the neighborhood and servicing anchor institutions (NN 1.9).

Schedule: Procure design services, finalize public/private partnership agreements (Q1-2); complete 1st round of construction plans/bidding (Q3); construct 1st round detention, recruit second round of private partners (Q4-6); construction (Q7-12).

 

1.2 Overview of Benefit Cost Analysis

 

1.2 Brewery Creek Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 100 years ($750,000)    
Resilience 100 years   $175,200 $2,499,973
Environmental 100 years   $12,348 $117,483
Economic Revitalization 3 years     $617,297
Net Present Value (7%) $2,484,753      
BCR 4.31      

 

  Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 8   Costs have been aggregated for the purposes of this analysis. ($750,000) 1
Resilience Value
Flood damage

reduction

8 Property damage and economic losses from flooding, avoided through stormwater retention HAZUS modeling done by University of Minnesota-Duluth Geospatial Analysis Center, using stock national data (HAZUSBrewery.pdf). $2,499,973 2
Environmental Value
Environmental services from 1.96 acres of constructed/ improved wetlands 8 Including aesthetic information, air quality, biological control, energy and raw materials, food, habitat and nursery, moderation of extreme events, recreation and tourism components From Earth Economics , “The Value of Nature’s Benefits in the St. Louis Watershed” (EEStLouisRiver.pdf), average values from urban wetland types, the benefit per acre is $6346 per year. This number was arrived at by adding together the herbaceous, shrub, and woody wetland types (high and low values for each) and averaging the values for a single year.

 

 

$177,483

 

1
Economic Revitalization
Economic impact of construction 8 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development $617,297 2

 

1.2 Lifecycle Cost: The uncertainty value was set at 1 because this is a build-it-and-done project. The restoration of the wetlands would require no ongoing O&M and no indirect costs associated with this project. Cost of construction found in MN RoR Sources and Uses.pdf.

 

1.2 Resilience Value: The uncertainty value for this was set at 2 because stock national data (HAZUS) was used and this does not completely match City data. However the HAZUS modelling method using stock national data is widely used to compare potential economic loss across different regions and is endorsed by FEMA.

 

1.2 Environmental Value: The uncertainty value was set at 1 because data used is from a June 2015 Earth Economics report valuing the St. Louis River Watershed of which Brewery Creek is a part. Brewery Creek is a Minnesota Department of Natural Resources designated trout stream. Restoration of the stream and newly constructed wetlands will provide habitat to encourage the repopulation of this species. Additional habitat will be provided for native and migratory birds.

 

1.2 Economic Revitalization: The uncertainty value for this was set at 2 because the time constraints allowed for only limited-accuracy IMPLAN analysis.

 

Chester Creek (1.3)

 

1.3 Activity Description: Two water detention/green infrastructure projects will assist in protecting downstream low-income neighborhoods from Chester Creek floodwaters. In the Chester Creek watershed, the 2012 flood caused significant damage to a number of road crossing culverts and the Chester Creek City Park, leading to slope stability issues and stream channel degradation and aggradation. This activity is to provide extended stormwater detention above the bluff line in numerous locations in the Chester Creek watershed. Runoff attenuation spread throughout the watershed will improve the ability of storm sewers and natural drainage systems to handle the stormwater flows associated with heavy rains. NOAA has funded a study of this watershed, showing how investment in green infrastructure would reduce the risks and costs associated with flooding, and our approach to protecting downstream locations will be informed by this study.

 

Schedule: Procure design services, finalize public/private partnership agreements (Q1-2); complete first round of construction plans/bidding (Q3); construct first round detention, recruit second round of private partners (Q4-6); construction (Q7-12).

 

The second activity is part of the larger plan to reduce flooding risks to the Chester Creek watershed and the down-gradient neighborhoods of Duluth. The project will provide attenuation of flood flows above the “bluff” by remeandering the stream within the stream/floodplain channel above Madison Ave. Remeandering the stream will reconnect it to its floodplain, providing storage or detention of high flow events, and reducing peak runoff rates down-gradient. This will help reduce flooding to roadways and property, provide flood control for the stream, and reduce channel erosion and stream bank failures.  It will further protect Chester Creek Park and adjacent areas along the hillside as the creek flows towards its mouth into Lake Superior. No other alternatives were looked at as they would not be approved by the DNR.

 

Schedule: EAW, permitting, survey, soil sample (Q1-2); finalize construction plans and procurement (Q2-3); construction and project closeout (Q3-6). Because of short construction seasons and additional restrictions on work due to potential impacts to trout, a secondary completion date of Q10 has also been established.

 

1.3 Overview of Benefit Cost Analysis

 

1.3 Chester Creek Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 100 years ($3,350,000)    
Resilience 100 years   $88,759 $1,266,520
Environmental 100 years   $114,418 $1,632,664
Economic Revitalization 3 years     $3,015,843
Net Present Value (7%) $2,565,027      
BCR 1.76      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 11   Costs have been aggregated for the purposes of this analysis. ($3,350,000) 1
Resilience Value
Flood damage

reduction

11 Reduced damage to structures due to stormwater retention The Eastern Research Group report, Economic Assessment of Green Infrastructure Strategies for Climate Change Adaptation: Pilot Studies in The Great Lakes Region (GLPilots_Final_5-5-14v2.pdf), provided estimates of the reduction to flood damage costs which would result from a 20% reduction in peak stormwater flow. The published report uses a 20-year lifecycle, which Jeffery Adkins of NOAA extended to 100 years (BenefitsModel_100year.xlsx). Values have been converted from 2012 to 2015 dollars and net present values recalculated with a 7% discount rates, from the .8% rate used in the published report. This report used HAZUS modeling to estimate dollar values. $704,716 1
  11 Storm sewer infrastructure: Replacement and O&M costs The Eastern Research Group report, Economic Assessment of Green Infrastructure Strategies for Climate Change Adaptation: Pilot Studies in The Great Lakes Region (GLPilots_Final_5-5-14v2.pdf), provided estimates of the reduction to flood damage costs which would result from a 20% reduction in peak stormwater flow. The published report uses a 20-year lifecycle, which Jeffery Adkins of NOAA extended to 100 years (BenefitsModel_100year.xlsx). Values have been converted from 2012 to 2015 dollars and net present values recalculated with a 7% discount rates, from the .8% rate used in the published report. This report used HAZUS modeling to estimate dollar values. $105,889 1
  11 Land restoration The Eastern Research Group report, Economic Assessment of Green Infrastructure Strategies for Climate Change Adaptation: Pilot Studies in The Great Lakes Region (GLPilots_Final_5-5-14v2.pdf), provided estimates of the reduction to flood damage costs which would result from a 20% reduction in peak stormwater flow. The published report uses a 20-year lifecycle, which Jeffery Adkins of NOAA extended to 100 years (BenefitsModel_100year.xlsx). Values have been converted from 2012 to 2015 dollars and net present values recalculated with a 7% discount rates, from the .8% rate used in the published report. This report used HAZUS modeling to estimate dollar values. $207,949 1
  11 Recreational use The Eastern Research Group report, Economic Assessment of Green Infrastructure Strategies for Climate Change Adaptation: Pilot Studies in The Great Lakes Region (GLPilots_Final_5-5-14v2.pdf), the reduction in park use as a result of the 2012 flood as a basis for estimating the value of the recreational use lost to flood events more generally. The published report uses a 20-year lifecycle, which Jeffery Adkins of NOAA extended to 100 years (BenefitsModel_100year.xlsx). $247,966 1
Environmental Value
Environmental services from 18.03 acres of constructed/ improved wetlands 11 Including aesthetic information, air quality, biological control, energy and raw materials, food, habitat and nursery, moderation of extreme events, recreation and tourism components Averaging  Earth Economics , “The Value of Nature’s Benefits in the St. Louis Watershed” (EEStLouisRiver.pdf) values for urban wetland types yields a benefit per acre of $6346 per year. This number was arrived at by adding together the herbaceous, shrub, and woody wetland types (high and low values for each) and averaging the values for a single year. $1,632,664.55

 

1
Economic Revitalization
Economic impact of construction 11 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development (MN_IMPLAN.xlsx). $3,015,843 2

 

 

1.3 Lifecycle Cost: The uncertainty value was set at 1 because this is a build-it-and-done project. The restoration of the wetlands would require no ongoing O&M and no indirect costs associated with this project. Cost of construction found in MN RoR Sources and Uses.pdf.

 

1.3 Resilience Value: Reduced damage to structures due to stormwater retention: The uncertainty value was set at 1 because data used was from the Chester Creek watershed based on a NOAA evaluation.

Storm sewer infrastructure: Replacement and O&M costs: The uncertainty value was set at 1 because data used was from the Chester Creek watershed based on a NOAA evaluation.

 

Land Restoration: Repairing erosion damage to the park from the storm and flood event. The uncertainty value was set at 1 because data used was from the Chester Creek watershed based on a NOAA evaluation.

Recreational use: Lost recreational used was monetized using the modeling provided in the NOAA evaluation of the Chester Creek watershed. The uncertainty value was set at 1 because data used was from the Chester Creek watershed based on a NOAA evaluation.

 

1.3 Environmental Value: The uncertainty value was set at 1 because data used from a June 2015 Earth Economics report valuing the St. Louis River Watershed of which Miller Creek is a part.

Chester Creek is a Minnesota Department of Natural Resources designated trout stream. Restoration of the stream and newly constructed wetlands will provide habitat to encourage the repopulation of this species. Additional habitat will be provided for native and migratory birds.

 

1.3 Economic Revitalization: The uncertainty value for this was set at 2 because the time constraints allowed for only limited-accuracy IMPLAN analysis.

 

AICHO (1.4)

 

1.4 Activity Description: This activity has two components: 1)redeveloping a blighted building in Lincoln Park as a mixed-use development, and 2) installing site-based water management at a flood-affected housing project.

2301 W. Superior Street in the Lincoln Park neighborhood will be redeveloped a mixed-use development including an eco-laundry, coffee shop, and gallery. Currently the building is blighted with no housing occupancy. This activity would provide additional subsidized housing units for low-income individuals, create job training and employment opportunities, and create a new source of income for the non-profit partner American Indian Community Housing Organization, which will then be re-invested back into the community. Creating a gallery and retail center for Native artists will also create a venue for community members to sell their work and become more self-sufficient.

 

AICHO’s transitional housing project in the Hillside neighborhood was damaged in the 2012 flood, and NDRC funding would be used to install site-based water management to protect the building from flooding in the future.

Schedule: 1) commercial space revitalization and business development (Q1-4); and 2) housing redevelopment (Q3-8).

 

1.4 Overview of Benefit Cost Analysis

 

1.4 AICHO Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 30 years (2,336,588)    
Resilience 30 years   $210,342 $2,610,143
Environmental Not monetized      
Social Not monetized      
Economic Revitalization 30 years   $377,232 $6,991,238
Net Present Value (7%) $7,264,793      
BCR 4.10      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 13   Costs have been aggregated for the purposes of this analysis. ($2,336,588) 3
Resilience Value
Public-services cost reduction from 6 transitional housing units 13 Difference between value of health and other services used by homeless individuals and value used by residents of supportive housing From the Wilder Research publication Return on Investment in Supportive Housing in Minnesota (WilderSupportiveROI.pdf): One-year net cost savings total from page 21 divided by the number of people in supportive housing in the State of Minnesota and  adjusted 2009 dollars (year the study was published) for 2015 dollars, yielding an annual benefit of $35,057 per person.

 

Present value benefits were calculated using the per person annual benefit amount multiplied times the number of people (6) in the supportive housing project; present value calculated based on a 30-year lifecycle with 7% discount rate.

$2,610,142 1
Environmental Value
Improved energy efficiency 13 Not monetized All efficiency improvements with a 10 year or earlier payback will be completed.    
Social Value
Support for Native artists 13 Not monetized      
Economic Revitalization
Long-term economic activity generated by 10 housing units 13 Ongoing economic effect from new housing becoming occupied and the inhabitants participating in the local economy Annual data from NAHB 2015 (NAHB2015.pdf). Using the calculations found on page 13, the totals (based on 100 units) were first summed and then divided by 100 to give a per unit value. The per unit value was then multiplied by 12 (the number of units in the project).

 

Net present value calculation over 30 years (the project lifespan) using a 7% discount rate.

 

$5,008,764 2
Economic impact of construction 13 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $1,982,474 2

 

1.4 Lifecycle Cost: Uncertainty value of 3 is used because O&M costs are unknown. Cost of construction found in MN RoR Sources and Uses.pdf.

 

1.4 Resilience Value: Uncertainty value of 1 is used because the data comes from a research group well-versed in housing issues and the study was specific to the State of Minnesota.

 

1.4 Environmental Value: The building and laundromat at 2301 W. Superior will be upgraded to current energy efficiency standards.

Social Value: This activity includes gallery space for local Native artists to display and sell their work, which will create both cultural and economic value.

 

1.4 Economic Revitalization: The uncertainty value was determined to be 2 for this part of the project.  There are two reasons for this; the study used for the calculations was done by the National Association of Home Builders, who may have a vested interest in promoting the numbers; and these numbers are national averages rather than being regionally specific.

Time constraints allowed for only limited-accuracy IMPLAN analysis.

 

Esmond & Supportive Housing (1.5)

 

1.5 Activity Description:  This activity has two components: 1) construction of new supportive housing to assist Seaway Hotel residents and others that are homeless or at-risk of homelessness, and 2) rehabilitation of the Seaway building.

The former Seaway Hotel, now referred to as the Esmond, incurred significant damage from water during the 2012 rain event/flood. The building houses 65 extremely low income and vulnerable adults. Prior to the flood, the building had been mismanaged and neglected; the residents were exposed to health hazards and crime, and all interior and exterior systems of the building itself needed repairs and updates. At the time of the flood, the building was at risk of being closed due to long-neglected repairs adding up to non-compliance with building codes. In the heavy rains of June 2012, the deteriorated exterior allowed water to pour into the interior, causing immediate damage followed by mold and air quality issues. Realizing that the building’s vulnerable residents were at risk of displacement, community organizations stepped up to improve the situation. The proposed activity would be to create new supportive housing for the current tenants and then redevelop the Esmond building (1.5). The redeveloped building would include 25 1-bedroom apartments affordable to Duluth’s LMI workforce, and rehabilitated commercial space on the first floor, anchoring revitalization of the Lincoln Park Commercial Corridor as recommended by the Urban Land Institute. Due to the connection with other housing development, this project will proceed in two-phases: 1) commercial space revitalization (Q1-8), and 2) housing rehabilitation (Q7-12).

 

While the 2012 flood drew attention to how precarious housing is for many, Duluth’s harsh climate and unforgiving geography amount to an ongoing disaster for the homeless. Center City Housing Corporation will mitigate that disaster by developing and building 50 units of supportive housing which will use 24/7 staff presence and “housing first” principles to serve three of the most fragile and vulnerable populations – people who are presently homeless, those who and are at high risk of becoming homeless, and those living in unsafe substandard housing.

Schedule: Property acquisition (Q1), brownfields remediation and permitting (Q2), and construction (Q3-7).

 

1.5 Overview of Benefit Cost Analysis

 

1.5 Esmond Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 33 years ($18,514,407)    
Resilience 33 years   $1,752,850 $22,355,480
Economic Revitalization 33 years   $785,900 $26,271,921
Net Present Value (7%) $30,112,994      
BCR 2.62      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 15   Costs have been aggregated for the purposes of this analysis. ($17,314,407) 3
Resilience Value
Public service cost reductions from supportive housing for 50 people 15 Difference between value of health and other services used by homeless individuals and value used by residents of supportive housing From th. Wilder Research publication Return on Investment in Supportive Housing in Minnesota (WilderSupportiveROI.pdf): One-year net cost savings total from page 21 divided by the number of people in supportive housing in the State of Minnesota and  adjusted 2009 dollars (year the study was published) for 2015 dollars, yielding an annual benefit of $35,057 per person.

 

Present value benefits were calculated using the per person annual benefit amount multiplied times the number of people in the supportive housing project (50); present value calculated based on a 33-year lifecycle with 7% discount rate.

$22,355,480 1
Economic Revitalization
Economic impact of construction 15 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $16,041,718 2
Long-term economic activity generated by 25 housing units 15 Ongoing economic effect from housing becoming occupied and the inhabitants participating in the local economy Annual data from NAHB 2015 (NAHB2015.pdf). Calculations were made using the document referenced in the quantitative assessment. Using the calculations found on page 13, the totals (based on 100 units) were first summed and then divided by 100 to give a per unit value. The per unit value was then multiplied by 25 followed by a net present value calculation over 30 years (the project lifespan) using a 7% discount rate.

 

https://www.nahb.org/~/media/Sites/NAHB/LMA/FileUploads/35601-1-REPORT_local_20150318115955.ashx?la=en

$10,230,203 2

 

1.5 Lifecycle Cost: Uncertainty value of 3 is used because O&M costs are unknown. Cost of construction found in MN RoR Sources and Uses.pdf.

 

1.5 Resilience Value: Uncertainty value of 1 is used because the data comes from a research group well-versed in housing issues and the study was specific to the State of Minnesota.

Economic Revitalization: The uncertainty value was determined to be 2 for this part of the project.  There are two reasons for this: The study used for the calculations was done by the National Association of Home Builders, who may have a vested interest in promoting the numbers, and in addition, these numbers are national averages rather than being regionally specific.

 

1.5 Economic Revitalization: The uncertainty value was determined to be 2 for this part of the project.  There are two reasons for this; the study used for the calculations was done by the National Association of Home Builders, who may have a vested interest in promoting the numbers; and these numbers are national averages rather than being regionally specific.

Time constraints allowed for only limited-accuracy IMPLAN analysis.

 

Nettleton (1.6)

 

Activity Description: The Nettleton School Adaptive Reuse Project will help meet the demand for additional mixed-income housing units in downtown Duluth. In June of 2012, the Hillside Neighborhood of Duluth experienced significant flooding. Due to its location and terrain, the neighborhood was greatly impacted by flood waters which caused mudslides, severe water penetration and damage to many structures throughout the community including the loss of housing units. The project will add 24 units of affordable housing for households at or below 60% of the area median income, and add 26 units of market rate housing to a predominantly low and very-low income neighborhood by adaptively reusing a school on the upper part of the hill. The increase in housing diversity will benefit the local community, improve overall neighborhood stability, and increase downtown Duluth viability.

Schedule: Permitting, procurement, environmental review (Q1-2), construction and lease-up (Q3-6).

 

1.6 Overview of Benefit Cost Analysis

 

1.6 Nettleton Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 30 years ($7,573,156)    
Social Not monetized      
Economic Revitalization 30 years   $1,571,800 $25,973,767
Net Present Value (7%) $18,400,611      
BCR 3.42      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 16   Costs have been aggregated for the purposes of this analysis. ($7,573,156) 3
Social  Value
Historic significance 16 Not monetized      
Economic Revitalization
Economic impact of construction 16 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $6,469,237 2
Long-term economic activity generated by 50 new housing units 16 Ongoing economic effect from housing becoming occupied and the inhabitants participating in the local economy Annual data from NAHB 2015 (NAHB2015.pdf). Calculations were made using the document referenced in the quantitative assessment. Using the calculations found on page 13, the totals (based on 100 units) were first summed and then divided by 100 to give a per unit value. The per unit value was then multiplied by 50 followed by a net present value calculation over 30 years (the project lifespan) using a 7% discount rate. $19,504,530 2

 

1.6 Lifecycle Cost: Uncertainty value of 3 is used because O&M costs are unknown. Cost of construction found in MN RoR Sources and Uses.pdf.

 

1.6 Social Value: The Nettleton School building was originally constructed in 1905, and has been vacant since 2013. Redevelopment will restore community access to a historic structure which holds special significance for many neighborhood residents.

 

1.6 Economic Revitalization: The uncertainty value was determined to be 2 for this part of the project.  There are two reasons for this: The study used for the calculations was done by the National Association of Home Builders who may have a vested interest in promoting the numbers, and in addition, these numbers are national averages rather than being regionally specific. Time constraints allowed for only limited-accuracy IMPLAN analysis.

 

Historic Armory (1.7)

 

1.7 Activity Description: The Duluth Armory is on the U.S Department of Interior’s National Register of Historic Places and is part of the Smithsonian’s virtual tour of places to see in the U.S. It functioned as a triage center and disaster recovery center for the 1918 Cloquet fire which was the worst disaster in Minnesota’s history. Unfortunately, after years of neglect and subsequent damage from the June 2012 floods, it has been condemned. With NDRC funding to address flood damage and support affordable housing development, the Armory will be repositioned into an office, retail, art and culture center to include an art gallery housed with goods from local artists and tenants in the building, a celebrity tribute museum and a restaurant and music venue hub. It will also house the Armory Arts & Music Center, a nonprofit providing musical lessons and support to neighborhood LMI children. The contiguous site located within the Armory site plan will be home to 48 new construction apartment units.  40% of the units will be set-aside utilizing the Low Income Housing Tax Credit Program at 60% of Area median Income. Initial flood remediation has been completed and a structural review has shown the building to be in good shape, however the heating system remains unrepaired. Schedule: Permitting, environmental review, development financing (Q1-3); Construction (Q4-9).

 

1.7 Overview of Benefit Cost Analysis

 

1.7 Historic Armory Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 30 years ($39,953,944)    
Environmental 30 years   $82,674 $1,025,904
Economic Revitalization 30 years   $1,508,920 $53,101,265
Net Present Value (7%) $14,173,225      
BCR 1.35      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 18   Costs have been aggregated for the purposes of this analysis. ($39,953,944) 3
Environmental Value
Energy savings from efficient HVAC 18 Energy cost savings relative to baseline from middle proposed scenario Number is taken from Weidt Group Concept Design Energy report (in ArmoryAdditional.pdf, p. 21), using the midrange scenario.

 

$73,256 annually ; net present value 30 years, 7% discount rate

$909,036 1
Energy savings from 80 kW PV capacity

 

18 Further energy cost savings from solar generation Number was determined using PVWatts (http://pvwatts.nrel.gov/):

$9,418 annually, net present value calculated for a 30-year lifespan at 7% discount rate.

$116,868

 

1
Economic Revitalization
Economic impact of construction 18 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $34,376,916 2
Long-term economic activity generated by 48 new housing  units 18 Ongoing economic effect from housing becoming occupied and the inhabitants participating in the local economy Annual data from NAHB 2015 (NAHB2015.pdf). Calculations were made using the document referenced in the quantitative assessment. Using the calculations found on page 13, the totals (based on 100 units) were first summed and then divided by 100 to give a per unit value. The per unit value was then multiplied by 48 followed by a net present value calculation over 30 years (the project lifespan) using a 7% discount rate.

 

$18,724,349 2

 

1.7 Lifecycle Cost: Uncertainty value of 3 is used because O&M costs are unknown. Cost of construction found in MN RoR Sources and Uses.pdf.

 

Social Value: Restoring the currently-vacant Armory would restore access to this historic site and create valuable, though unquantifiable, cultural resources.

 

1.7 Economic Revitalization: The uncertainty value was determined to be 2 for this part of the project.  There are two reasons for this: The study used for the calculations was done by the National Association of Home Builders who may have a vested interest in promoting the numbers, and in addition, these numbers are national averages rather than being regionally specific. Time constraints allowed for only limited-accuracy IMPLAN analysis.

 

Health District (1.8)

 

1.8 Activity Description: The City of Duluth has completed a Health District Revitalization plan that calls for acquisition and adaptive reuse of properties along E. 4th Street and 6th Ave E. This activity will acquire flood-affected properties for eventual reuse or redevelopment into mixed-use, mixed-income opportunities. The program developed for neighborhood revitalization would target the creation of 150 new or rehabbed housing units and rejuvenation of 10,000 square feet of commercial space. All construction would follow MN Green Communities Standards. Schedule: Property acquisition, developer procurement (Q1), Phase 1 environmental review, plans, permitting and relocation (Q2-4), construction (Q5-12).

 

1.8 Overview of Benefit Cost Analysis

 

1.8 Health District Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 30 years ($29,270,000)    
Economic Revitalization 30 years   $4,715,400 $83,516,984
Net Present Value (7%) $54,246,984      
BCR 2.85      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Property acquisition, construction, and related costs 19   Costs have been aggregated for the purposes of this analysis. ($29,270,000) 3
Economic Revitalization
Economic impact of construction 19 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $25,003,392 2
Long-term economic activity generated by 150 new housing units 19 Ongoing economic effect from housing becoming occupied and the inhabitants participating in the local economy Annual data from NAHB 2015 (NAHB2015.pdf). Calculations were made using the document referenced in the quantitative assessment. Using the calculations found on page 13, the totals (based on 100 units) were first summed and then divided by 100 to give a per unit value. The per unit value was then multiplied by 150 followed by a net present value calculation over 30 years (the project lifespan) using a 7% discount rate. $58,513,592 2

 

1.8 Lifecycle Cost: Uncertainty value of 3 is used because O&M costs are unknown. Cost of construction found in MN RoR Sources and Uses.pdf.

 

1.8 Economic Revitalization: The uncertainty value was determined to be 2 for this part of the project.  There are two reasons for this: The study used for the calculations was done by the National Association of Home Builders who may have a vested interest in promoting the numbers, and in addition, these numbers are national averages rather than being regionally specific. Time constraints allowed for only limited-accuracy IMPLAN analysis.

 

Micro-Manufacturing (1.9)

 

1.9 Activity Description: Of all the Minnesota cities, Duluth was hardest hit during the rust belt decline of the 80’s and 90’s. This resulted in little new construction over the span of thirty years. Other places in Minnesota have seen greater levels of new construction during this time period. As a state, we must address our old housing stock, but we must also model resilient new construction. This project will develop new housing units at Duluth’s HOPE VI Harbor Highlands development. In partnership with the University of Minnesota and the Natural Resources Research Institute, homes engineered for resilience in all climates will be constructed. An important component to this activity is the development of centralized engineering and designed manufacturing processes that can be then be distributed to micro-factories. A ripple to this approach is co-developing economic opportunities in communities that lack housing by supporting local home manufacturing and job creation. The resulting product can reduce development costs and long-term operations and maintenance of homes.

Schedule: Design and engineering approval, micro-factory installation (Q1-3), first 5 demonstration homes (Q4-7), design evaluation, additional design and engineering approval (Q8), construction second set of demonstration homes (Q9-12).

 

1.9 Overview of Benefit Cost Analysis:

 

1.9 Micro-Manufacturing Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 30 years $3,765,000    
Resilience 30 years   $11,774 $146,104
Social Not monetized      
Economic Revitalization 30 years   $314,360 $7,527,128
Net Present Value (7%) $3,908,232      
BCR 2.03      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 21   Costs have been aggregated for the purposes of this analysis. ($3,765,000) 3
Resilience Value
Reduced energy costs 21 Value of electricity produced by 100 kW of photovoltaic capacity Using PVWatts (http://pvwatts.nrel.gov/), the savings was calculated at $11,774 annually; net present value was calculated for 30 years at 7% discount rate $146,104 1
Social  Value
      Not monetized    
Economic Revitalization
Economic impact of construction 21 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $3,353,158 2
Long-term economic activity generated by 10 new housing  units 21 Ongoing economic effect from housing becoming occupied and the inhabitants participating in the local economy Annual data from NAHB 2015 (NAHB2015.pdf). Calculations were made using the document referenced in the quantitative assessment. Using the calculations found on page 13, the totals (based on 100 units) were first summed and then divided by 100 to give a per unit value. The per unit value was then multiplied by 150 followed by a net present value calculation over 30 years (the project lifespan) using a 7% discount rate.

 

 

$4,173,970 2

 

1.9 Lifecycle Cost: Uncertainty value of 3 is used because O&M costs are unknown. Cost of construction found in MN RoR Sources and Uses.pdf.

 

1.9 Resilience Value: Uncertainty value of 1 is used because information is from an industry standard calculator.

Social Value: Micro-manufacturing offers a way for indigenous and other marginalized communities to improve their housing stock with their own resources.

 

1.9 Economic Revitalization: The uncertainty value was determined to be 2 for this part of the project.  There are two reasons for this: The study used for the calculations was done by the National Association of Home Builders who may have a vested interest in promoting the numbers, and in addition, these numbers are national averages rather than being regionally specific.

Time constraints allowed for only limited-accuracy IMPLAN analysis.

 

Lincoln Park Revitalization Fund (1.10)

 

1.10 Activity Description: As the lowest-income neighborhood in the MID-URN, Lincoln Park has faced decades of disinvestment and decline. With a new vision of becoming a Crafter-district and old and new businesses poised to invest in the building stock, the opportunity exists to create living-wage neighborhood employment opportunities and reduce blight. Under this activity, the Entrepreneur Fund and Duluth LISC will spur private investment by businesses who can’t meet traditional bank collateral requirements due to the existing building values in the neighborhood. A revitalization fund will eliminate structural barriers to investment in the neighborhood and support early adopters in this emerging district through a low-interest loan fund and additional leveraged resources. Funded businesses will participate in business district revitalization and neighborhood jobs partnership. Schedule: Underwriting standards (Q1), business recruitment (Q1-6), loan closings (Q2-8), construction (Q2-12).

 

1.10 Overview of Benefit Cost Analysis

 

1.10 Lincoln Park Revitalization Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle   $3,750,000    
Economic Revitalization       $3,906,421
Net Present Value (7%) $156,421      
BCR 1.04      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Costs 22     ($3,750,000) 1
Economic Revitalization
Economic impact of investment 22 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $3,906,421 2

 

1.10 Lifecycle Cost: Uncertainty value of 1 is used because the total represents the funds which will be invested. Cost of construction found in MN RoR Sources and Uses.pdf.

 

1.10 Economic Revitalization: The uncertainty value for this was set at 2 because the time constraints allowed for only limited-accuracy IMPLAN analysis.

 

Small Business EE/Solar (1.11)

 

1.11 Activity Description: The June 2012 flood and other Minnesota disasters have illustrated the need for development of resilient power solutions, transition to distributed local energy, and increased energy affordability to support financial stability for commercial enterprises. This activity will develop 1.5 MW of solar associated with critical infrastructure, neighborhood redevelopment, and housing development associated with NDRC. A resilient solar plus storage project will be located at the City of Duluth’s gas and water facility, with additional solar installations on reservoirs aiding in water pumping. A solar community garden focused on advancing low-income equity models will be built at the Cross City Trail entrance into Lincoln Park. A partnership will be created with the Fond du Lac Tribal and Community College to advance job and training opportunities. The project will include a second component that assists small businesses with energy efficiency and resilience improvements through adaptation of the EPA and White House recognized residential Duluth Energy Efficiency Program for businesses.

Schedule: Business Energy Efficiency Program (BEEP) design and initial solar projects selected (Q1-2), solar and energy efficiency installations (Q3-12.)

 

1.11 Overview of Benefit Cost Analysis

 

1.11 Small Business EE/Solar Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 30 years ($9,824,737)    
Resilience 30 years   $505,119 $4,237,524
Environmental 30 years   $29,572 $366,960
Economic Revitalization       $9,803,951
Net Present Value (7%) $4,583,698      
BCR 1.46      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 23   Costs have been aggregated for the purposes of this analysis. ($9,824,737) 3
Resilience Value
Reduced energy costs 23 Energy saved through replacing conventional lighting with energy efficient lighting and other increases to energy efficiency. Present value calculated using a 10-year lifecycle for LED lighting and 30 years for other efficiency improvements.

 

$2,821,876 1
  23 Cost reduction achieved by replacing conventional power generation with solar Determined using PVWatts; present value calculated using a 30-year lifecycle. $1,415,648 1
Environmental Value
Not monetized 23        
Economic Revitalization
Economic impact of construction 23 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $9,803,951 2

 

1.11 Lifecycle Cost: Uncertainty value of 3 is used because O&M costs are unknown. Cost of construction found in MN RoR Sources and Uses.pdf.

 

1.11 Resilience Value: Uncertainty value of 1 is used for solar calculations because information is from an industry standard calculator.

 

1.11 Environmental Value: Solar power generation and improved efficiency will lead to reduced emissions of greenhouse gases and other pollutants. This benefit could not be monetized due to incomplete information about the fuel mix used by local conventional power plants.

 

1.11 Economic Revitalization: The uncertainty value for this was set at 2 because the time constraints allowed for only limited-accuracy IMPLAN analysis.

 

District Energy (1.12)

 

1.12 Activity Description 

This project converts a one-mile section of the City’s existing 83-year old steam heating system from steam to closed-loop hot water distribution and makes individual building heating system improvements as required to realize the full efficiency advantages of district hot water.  One-hundred year-old water and sewer mains located under the district energy system will also be replaced.  The NDRC-funded portion of the project will:

 

  1. Accomplish building modifications as required to connect buildings which are currently using steam (or natural gas) to the district energy system.

 

  1. Install a redundant steam distribution transmission main along Superior Street to serve the city’s two hospital campuses. As the two hospitals will have a requirement for steam for the foreseeable future, this new transmission main will provide a modern, updated, efficient steam supply while the steam system sections unaffected by the Superior Street project serve as redundant thermal energy supply paths.

 

1.12 Overview of Benefit Cost Analysis

1.12 District Energy Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 30 ($41,272,946) $411,895 – $1,737,500 $8,338,245
Resilience 30 0 $0 – $468,180 $237,999
Environmental 30 0 $0 0
Social 30 0 $269,705 – $389,345 $9,311,174
Economic Revitalization 30 0 $323,450 – ???? $33,970,275
Net Present Value (7%) $10,584,747      
BCR 1.25      

 

Costs & Benefits Sorted by Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect      

   

Uncertainty

1= very certain

5=very uncertain

Lifecycle Cost
Cost #1 25-28 Replace steam distribution system with hot water distribution system, add redundant steam line to supply hospitals, convert building heating systems to allow connection to the district energy system. Based on EGE’s experience in installing a similar system in St Paul, MN.  This project will be funded with local and state funds, not NDR grant funds.   ($41,272,946) 2
Benefit #1LC

 

25-28 Reduction in district heating distribution system maintenance costs.  Calculated using historical steam and hot water distribution system maintenance costs.  $52,000/yr after year4 1
Benefit #2LC

 

25-28 Reduction in district heating plant fuel costs. Reduction in current actual fuel costs due to improved distribution system efficiencies.  $198,146/yr 1
Benefit #3LC 25-28 Reduction in district heating system water costs. Reduction in current actual water costs based on installation of closed loop hot water system on Superior Street. $131,745/yr 1
Benefit #4LC 25-28 Reduction in district heating plant electric costs. Reduction in current actual electric costs due to reduced thermal energy production requirements.  $13,704/yr 1
Benefit #5LC 25-28 Reduction in miscellaneous district energy system production costs. Reduction in current actual chemical, ash disposal, fuel oil and natural gas electric costs due to reduced thermal energy production requirements.  $12,500/yr 1
Benefit #6LC 25-28 Capital cost avoidance – Like for Like replacement of steam distribution system during Superior St project if system is not replaced with hot water system.  Extrapolation of actual cost data for replacement of similar steam system in 2014.  $1,737,500/yr  (years 1-3) 2
Benefit #7LC 25-28 Capital cost avoidance – no requirement to install (or replace) on-premises building heating system boilers. On-premises boilers have a useful lifecycle of 20 years.  Assumes buildings not currently connected to Superior St district energy system will avoid the capital cost of replacing boilers once during the analysis period by connecting to efficient hot water district energy system.  $125,000 / yr (years in years 5 – 18 3
Resilience Value
Benefit #1RV

 

 

25-28 Avoided cost of temporary boiler rental to serve hospitals during future disaster.  Quantitative assessment of health and safety risks to hospital patients as a result of the disruption of steam service is difficult.  The approach taken here quantifies the cost of mobilizing and operating temporary boilers at each hospital campus. Based on actual price quotes obtained by EGE.   $468,100 (year 10 of analysis period) 2
Environmental Value
See Social Value

Benefit #1

25-28        
Social Value
Benefit #1SV 25-28 EPA and other federal agencies use the social cost of carbon (SC-CO2) to estimate the climate benefits of rulemakings. SC-CO2 is an estimate of the economic value of CO2 reductions. $66,480 -$353,935 / yr 2
Benefit #2SV 25-28 Energy cost savings resulting from building heating system modifications made available for program budgets. 13% efficiency improvement in 10 buildings serving vulnerable populations. $35,410/yr 2
Economic Revitalization
Benefit #1ER 25-28 Economic benefit of project to community (including job creation) Derived using IMPLAN

 

$33,970,275 2
Benefit #2ER 25-28 Energy cost savings resulting from building heating system modifications. 13% efficiency improvement in 43  buildings used for commercial (for- profit) enterprises $323,450/yr 2

 

1.12 Lifecycle Cost- Cost of construction found in MN RoR Sources and Uses.pdf.

Cost #1:    The total project cost                                                                               $41,272,946

Assumptions and calculation methodology:

(1)    $25,301,450  Replace existing district heating steam distribution system along one mile of Superior                                               Street with a closed-loop hot water distribution system.  Includes the required hot-                                               water production modifications at the district heating plant.  Cost estimates based on                                                     similar work accomplished in St Paul, Minnesota by Ever-Green Energy, Inc (Ever-Green                                                    Energy manages and operates the City of Duluth –owned district energy system).

(2)    $3,125,000   Install redundant steam transmission main to serve hospital campuses.   Cost Estimates                                                            based on similar steam main replacement work accomplished in Duluth.

(3)    $2,846,496   Modify building heating systems to connect to district heating system and improve                                                 building energy efficiency.  Cost estimates based on a survey of building’s existing                                                heating systems and standard industry cost estimating tools.

See: Duluth Steam Master Plan

 

Benefit #1LC:   Cost Avoidance – Steam Distribution System Maintenance                     $52,000 / yr

Assumptions and calculation methodology:

(1)  Steam distribution system maintenance costs are significantly higher than hot water distribution costs                            due higher operating pressure, the requirement to mechanically remove condensate from steam lines                               and the corrosion that this condensate causes in steam lines.

(2)  The maintenance cost difference between the new hot water system and the new steam distribution                               system (which would have to be installed if the hot water system is not) has been determined to be                           approximately $10 per foot per year (primarily due to the requirement to routinely replace steam traps                           to remove condensate).

(2)  The Superior Street section of the steam distribution system to be replaced with hot water is                                       approximately 5,200 ft in length.

 

Benefit #2LC:  Reduced district heating plant fuel costs                                                      $198,146 / yr  

Assumptions and calculation methodology:

(1)  Baseline plant annual fuel input of 998,719 million Btu (mmBtu) established from actual plant data.

(2)  Actual October 2015 fuel (coal) price used as cost baseline ($45.95/ton = $2.48/mmBtu)

(3)  July 2014 – June 2015 steam consumption used for Superior Street buildings’ consumption baselines.

(4)  Superior Street buildings account for 28% of total system steam consumption.

(5)  A heating plant fuel input reduction of 8% calculated as a result of Superior Street project.

 

Benefit #3LC:  Reduced district heating system water costs                                                             $131,744 / yr  

Assumptions and calculation methodology:

(1)  Baseline plant annual water consumption of 89.8 million gallons (120,045 ccf) established from actual                          plant data.

(2)  Actual October 2015 water rate used as cost baseline ($5.08 /ccf)

(3)  July 2014 – June 2015 steam consumption used for Superior Street buildings’ consumption baselines.

(4)  Replacement of once-through steam distribution with closed loop hot water distribution along Superior                      St results in annual water savings of 19.4 million gallons (25,934 ccf)

 

Benefit #4LC:  Reduced district heating plant electricity costs                                                          $13,704 / yr  

Assumptions and calculation methodology:

(1)  Baseline plant electricity consumption per unit of thermal energy produced (5.02 kWh per mmBtu)                                      established from actual plant data)

(2)  Actual October 2015 electricity rate used as cost baseline ($0.0812 /kWh)

(3)  July 2014 – June 2015 steam consumption used for Superior Street buildings’ consumption baselines.

(4)  Replacement of once-through steam distribution with closed loop hot water distribution along Superior                      St results in a fuel input reduction of 8% and a corresponding electric power reduction of 6 percent                           (primarily due to reduced coal pulverizer and Induced draft fan motor power requirements)

 

Benefit #5LC:  Reduced district heating plant miscellaneous production costs                              $16,300 / yr  

Assumptions and calculation methodology:

(1)  Miscellaneous production costs include expenses for chemical additives, fuel oil (used for boiler start-                           up), natural gas, and ash disposal.

(2)  Actual 2014 expenses used as cost baseline ($203,761)

(3)  July 2014 – June 2015 steam consumption used for Superior Street buildings’ consumption baselines.

(4)  Replacement of steam distribution system with hot water system reduces fuel input requirements by                       8%; miscellaneous production expenses are proportional to fuel input.

 

Benefit #6LC:    Cost Avoidance – Capital cost for replacement of Superior St                

                            steam system if not replaced with hot water system                                             $5,212,500

Assumptions and calculation methodology:

(1)  The 83-year old steam line and associated vaults (manholes) along the 11-block Superior Street utility                           project will require replacement with a similar system if not replaced with a closed loop hot water                            system (the utility project requires store-front to store-front excavation across the entire width of                                Superior street, the existing steam system and vaults will not survive this unearthing).

 

(2)  Sections of similar Duluth Energy System steam distribution pipes and manholes have been replaced in                                in 2013 through 2015.  Actual cost data from these projects were used to estimate the cost of replacing                         the 11 blocks of steam pipe and 16 vaults along Superior Street.

 

Benefit #7LC:  Cost Avoidance – Building boiler replacements                                                         $125,000 / yr (14 years)

Assumptions and calculation methodology:

(1)  Fourteen significant buildings along the Superior Street project route are currently not connected to the                          district energy system.  The boilers, heat pumps or air handlers in these buildings range in age from 1 to                           25 years.

(2)  A conservative service life expectancy of 25 years is assumed for these systems.

See:   ASHRAE Equipment Life Expectancy

(3)  An average replacement cost of $125,000 per major building is assumed for heating system          equipment and installation.

(4)  Replacement of one system per major building, one per year during years 5 through and 18 of   the analysis period.

 

  • Resilience Value

Benefit #1RV:  Cost Avoidance – Temporary boiler rental and operation to

                           serve hospital campuses in event of steam system single

                           point of failure (if redundant steam transmission line is

                           not installed)                                                                                             $   $468,180

Assumptions and calculation methodology:

(1)   One disaster causing steam system failure occurs in year 10 of analysis period which disrupts steam                                   delivery to each of Duluth’s two hospital campuses.

(2)   Average January 2015 steam demand of 13,405 pounds per hour (pph) and 11,426 pph used to                           estimate demand during steam outage at Essentia and St Luke’s campuses, respectively.

(3)   One mobile boiler mobilized and operated at each hospital campus for 30 days.

(4)   Boiler rental costs based on actual quotes obtained ($36,000 / month).

(5)   Boiler fuel (#2 Fuel Oil) quantity derived from boiler technical specifications (125 gallons per hour)

(4)   Local October 2015 Fuel Oil price = $2.13 / gallon

 

1.12 Environmental Value

(see Social Value Benefit #1SV)

 

  • Social Value

Benefit #1SV:  Cost Avoidance – Social Cost of Carbon Emissions (SC-CO2)                       $66,480 – $353,935 / yr

Assumptions and calculation methodology:

  • Hot Water system efficiencies reduce fuel (sub-bituminous coal) input requirements by 8% or 79,903 mmBtu or 4,342 (short) tons of coal annually.
  • The CO2e emission factor used at Duluth Energy Systems for air emission reporting to EPA and MPCA is 1.148 metric tons CO2e per short ton coal consumed; the annual CO2e emission reduction is 4,985 metric tons/year. CO2 emission reduction begin in 2018 (1,661 Mtons) after the first section of the steam distribution system is completed and reach the full reduction of 4,985 Mtons in 2010.
  • The EPA method for calculating the social cost of carbon (SC-CO2) http://www3.epa.gov/climatechange/EPAactivities/economics/scc.html was used for this BCA.
  • The revised July 2015 SC-CO2 rates at a 3% discount rate were used for this analysis. This represents the second lowest of the four rates published in the reference.

 

Benefit #2SV:  Reduced thermal energy costs in buildings housing services for

                           vulnerable populations                                                                                   $35,410 / yr

Assumptions and calculation methodology:

(1)   In 2014 -2015 steam consumption charges in Superior St buildings serving vulnerable populations                                   (including subsidized and supportive housing) totaled $591, 517.

(2)   Conversion from steam heat to hot water heat in these buildings will yield an average efficiency                           improvement of 13%.

 

  • Economic Revitalization

Benefit #1ER: Economic benefit of project to community (including job creation)

Assumptions and calculation methodology:

(1)  IMPLAN  (MN_IMPLAN.xlsx)

 

Benefit #2ER:  Reduced thermal energy costs in buildings housing for-profit

                           enterprises                                                                                                       $323,450/ yr

Assumptions and calculation methodology:

(1)   In 2014 -2015 steam consumption charges in Superior St buildings housing for profit enterprises                                     totaled $2,488,078

(2)   Conversion from steam heat to hot water heat in these buildings will yield an average efficiency                           improvement of 13%.

 

  1. Project 2 – St. Louis River Corridor Resilience

Project Description

The St. Louis River Corridor Resilience project addresses the unmet needs due to riverine and and flash flooding from the qualified disaster. It also identifies the underlying structural issues affecting neighborhoods in the western part of the MID-URN. Specifically, the St. Louis River Corridor Resilience Project repairs flood damaged community and green space, establishes effective stormwater drainage issues that can restrict ingress and egress to a neighborhood, and supports local investment toward quality of life improvements in neighborhoods that are reaching a milestone in the next 5 years with Superfund clean-up completion and  potential delisting of the St. Louis River as the Great Lake’s largest Area of Concern.

Overview of Benefit-Cost Analysis

 

Activity NPV (7% Discount) Benefits Cost BCR
2.1 Mission Creek $2,888,408 $1,443,163 2.00
2.2 Gary-Morgan Park $5,386,631 $5,250,000 1.02
2.3. Kingsbury-Fairmount $5,187,858 $3,545,753 1.46
2.4 Trails & Bridges $4,430,349 $5,282,753 .83
2.5  Memorial-Irving $10,084,430 $12,252,303 .82
2.6  Community Safe Rooms $1,386,959 $1,011,610 1.37

 

Project 2- St. Louis River Corridor Resilience Total $29,364,635  

$28,785,582

 

1.02

 

Project 2 Activities

 

Mission Creek (2.1)

 

2.1 Activity Description: The project is part of a larger plan to reduce flooding risks to the Fond du Lac neighborhood.  The project is to re-establish a natural stream channel /floodplain channel above TH23 and below West 9th Street. The neighborhood experienced heavy damage as part of the 2012 flood.  The stream section directly above this section is being designed for restoration by the SWCD/DNR, and the MnDOT highway bridge at TH23 (at the downstream limit of this proposed activity), is being rebuilt to achieve higher capacity and debris passage during high flow events.  This activity will coordinate with NN 1.1 Buyouts to remove homes that were impacted during the flood on the eastern side of the creek so that an easterly remeander, and a westerly slope stabilization, can occur. The restoration of Mission Creek will create a natural stream channel with sinuosity and a floodplain that will have capacity to pass high flows, resulting in a durable stream system that is resilient to flooding.  With homes removed from the proposed floodplain, the risk to life and property is greatly diminished.  This concept is common to reestablish a stream corridor free of structures and rebuilding capacity for flow. This investment will help protect new bridge work as well as restore natural fisheries habitat in a trout stream. The project site is unique and alternatives to stream channel restoration must fall within the MN DNR guidelines for trout fisheries.  No other alternatives were looked at as they would not be approved by the DNR. EAW, permitting, survey, soil sample (Q1-2), finalize construction plans and procurement (Q2-3), construction and project closeout (Q3-6), because of short construction seasons and additional restrictions on work due to potential impacts to trout, a secondary completion date of Q10 has also been established. As part of this activity is resiliently addressing remaining damage in the Fond du Lac Park located on the banks of Mission Creek. Fond du Lac Park lost its community center during the June 2012 flood and suffered considerable damage to playground and picnic areas, and athletic fields. This activity would replace the community center with a pavilion, and relocate the athletic field away from the floodplain, creating long-term resilience by restoring flood prone areas to natural habitat that can help reduce flooding downstream. NPDS stormwater, fill, & building permits (Q1-2), construction and habitat restoration (Q7-primary,Q10-secondary).

 

2.1 Overview of Benefit Cost Analysis

 

2.1 Mission Creek Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 100 years ($1,443,163)    
Environmental 100 years   $111,372 $1,589,199
Economic Revitalization 3 years     $1,299,209
Net Present Value (7%) $1,445,245      
BCR 2.00      
Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 30   Costs have been aggregated for the purposes of this analysis. ($1,443,163) 1
Environmental Value
Environmental services from 17.55 acres of constructed/ improved wetlands 30 Including aesthetic information, air quality, biological control, energy and raw materials, food, habitat and nursery, moderation of extreme events, recreation and tourism components From Earth Economics , “The Value of Nature’s Benefits in the St. Louis Watershed” (EEStLouisRiver.pdf) $1,589,199

 

1
Economic Revitalization
Economic impact of construction 30 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $1,299,209 2

 

 

Lifecycle Cost: The uncertainty value was set at 1 because this is a build-it-and-done project. The restoration of the wetlands would require no ongoing O&M and no indirect costs associated with this project. Cost of construction found in MN RoR Sources and Uses.pdf.

 

Environmental Value: The uncertainty value was set at 1 because data used is from a June 2015 Earth Economics report valuing the St. Louis River Watershed of which Mission Creek is a part.

 

Economic Revitalization: The uncertainty value for this was set at 2 because the time constraints allowed for only limited-accuracy IMPLAN analysis.

 

2.2 Gary – Morgan Park (2.2)

 

2.2 Activity Description: Surrounding the US Steel Superfund site are Gary New Duluth and Morgan Park, two neighborhoods affected by the qualifying disaster. This activity addresses stormwater drainage issues. The Gary New Duluth neighborhood suffers from poor drainage that exacerbated flood damage during the June 2012 flood. The tight cohesive soils, poor drainage, and flat topography also contribute to annual flooding of streets and yards during annual snow melt. This results in lower neighborhood property values, unbuildable platted parcels, and reduced potential for economic development opportunities. When properties can be protected from localized flooding due to soil saturation, the existing housing stock can be protected from potential water damage and health concerns. The objectives of this activity are to provide a drainage system for the Gary New Duluth neighborhood located on the east side of Commonwealth Ave that will allow effective and efficient storm water runoff and snow melt capture and conveyance.  This system will provide safer streets and sidewalks for residents and business owners, and allow property owners to properly manage storm water and snow melt runoff from their private parcels resulting in reduced insurance claims for wet basements and property damage from excessive standing water and/or slow draining areas following storm events or spring snow melt. Procurement of engineering design services (Q1), field survey, cleaning and inspection of storm sewer, hydrologic/hydraulic modeling (Q1-3), construction plans and prioritization, construction bidding (Q3-4), construction (Q5-8).

 

The neighborhood of Morgan Park in the western part of the MID-URN has access at only two points.  Both roadways into the neighborhood must pass below a railroad bridge.  This road alignment creates a “sag” condition at the bridges and has caused flooding at a depth too deep for vehicle travel.  The northern neighborhood entrance has a stream adjacent to the roadway that limits the options for flood resilient improvements.  The southern entrance at Idaho Street, does not have a stream but rather a large storm sewer system that coincides with the street.  This site has options to reduce the risk of flooding. By providing up gradient extended detention of stormwater runoff, the risk of flooding the southern entry to the Morgan Park neighborhood is greatly reduced.  The extended detention will reduce the peak flow rates within this section of the storm sewer system, allowing the existing capacity of the system to handle large rain events and greatly minimize the risk of flooding and potentially cutting off access to the neighborhood again during emergency response. Providing extended detention also allows for redevelopment of the remediated brownfields at Atlas Industrial Park. Procurement of design and engineering firm (Q1), topographic survey, wetland delineation/mitigation/permitting as needed, hydrologic/hydraulic modeling, construction bidding (Q2-4), construction (Q-9).

 

2.2 Overview of Benefit Cost Analysis

2.2 Gary-Morgan Park Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 100 years ($5,250,000)    
Resilience 100 years   $45,800 $653,531
Environmental 100 years   $28,874 $412,014
Economic Revitalization 3 years     $4,321,086
Net Present Value (7%) $136,631      
BCR 1.02      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 32   Costs have been aggregated for the purposes of this analysis. ($5,250,000) 2
Resilience Value
Flood damage prevention 32 Structural damage and lost economic activity HAZUS modeling done by University of Minnesota-Duluth Geospatial Analysis Center, using stock national data (HAZUSGary.pdf) $653,531 2
Environmental Value
Environmental services from 4.55 acres of constructed/ improved wetlands 32 Including aesthetic information, air quality, biological control, energy and raw materials, Food, habitat and nursery, moderation of extreme events, recreation and tourism components From Earth Economics , “The Value of Nature’s Benefits in the St. Louis Watershed” (EEStLouisRiver.pdf)

 

Using Earth Economics average values from urban wetland types the benefit per acre is $6346 per year. This number was arrived at by adding together the herbaceous, shrub, and woody wetland types (high and low values for each) and averaging the values for a single year.

 

$412,014

 

1
Economic Revitalization
Economic impact of construction 32 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $4,321,086 2

 

 

2.2 Lifecycle Cost: The uncertainty value was set at 2 because there are two parts to this. The wetlands is a build-it-and-done project. The restoration of the wetlands would require no ongoing O&M and no indirect costs associated with this part of the project. The second part of the project, the drainage system will have O&M costs and these are unknown. Cost of construction found in MN RoR Sources and Uses.pdf.

 

2.2 Resilience Value: The uncertainty value for this was set at 2 because stock national data (HAZUS) was used and this does not completely match City data. However the HAZUS modelling method using stock national data is widely used to compare potential economic loss across different regions and is endorsed by FEMA.

 

2.2 Environmental Value: The uncertainty value was set at 1 because data used is from a June 2015 Earth Economics report covering this region.

 

2.2 Economic Revitalization: The uncertainty value for this was set at 2 because the time constraints allowed for only limited-accuracy IMPLAN analysis.

 

Kingsbury Creek – Fairmount (2.3)

 

2.3 Activity Description:  Kingsbury and Keene Creeks both incurred $775,000 in unreimbursed flood damage that requires restoration of natural channels and riparian zones and reinforcement/replacement of historic stone foot bridges. These activities will provide this repair in a manner that adds attenuation of flows to reduce downstream damage, restores natural habitat, and adds trail and park amenities. NPDS stormwater, fill, & building permits (Q1-2), construction and habitat restoration(Q7-primary,Q10-secondary). Cost of construction found in MN RoR Sources and Uses.pdf.

 

2.3 Overview of Benefit Cost Analysis

 

2.3 Kingsbury Creek Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 100 years ($3,545,753)    
Environmental 100 years   $116,576.02 $1,663,452

 

Economic Revitalization 3 years     $3,524,406
Net Present Value (7%) $1,642,105      
BCR 1.46      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 33   Costs have been aggregated for the purposes of this analysis. ($3,545,753) 1
Environmental Value
Environmental services from  18.37 acres of constructed/ improved wetlands 33 Including aesthetic information, air quality, biological control, energy and raw materials, Food, habitat and nursery, moderation of extreme events, recreation and tourism components From Earth Economics , “The Value of Nature’s Benefits in the St. Louis Watershed”

 

Using Earth Economics average values from urban wetland types the benefit per acre is $6346 per year. This number was arrived at by adding together the herbaceous, shrub, and woody wetland types (high and low values for each) and averaging the values for a single year.

 

$1,663,452

 

1
Economic Revitalization
Economic impact of construction 34 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $3,524,406 2

 

2.3 Lifecycle Cost: The uncertainty value was set at 1 because this is a build-it-and-done project. The restoration of the wetlands would require no ongoing O&M and no indirect costs associated with this project.

2.3 Environmental Value: The uncertainty value was set at 1 because data used is from a June 2015 Earth Economics report valuing the St. Louis River Watershed of which Kingsbury Creek is a part.

 

2.3 Economic Revitalization: The uncertainty value for this was set at 2 because the time constraints allowed for limited-accuracy IMPLAN analysis.

 

Trails & Bridges (2.4)

 

2.4 Activity Description: The Cross City trail and the RR Rail Trail known as the DWP experienced over $5 million of unreimbursed trail damage as well as bridge damage over Knowlton, Sargent, and Stewart Creeks.  One flood-damaged trail bridge (former RR trestle) is over 130 years old needs to be demolished and replaced with a modern bridge that does not require piers located in the creek bed. This activity will not only repair flood damage, but will allow connection between LMI neighborhoods in the western portion of the MID-URN. NPDS stormwater, fill, & building permits (Q1-2), construction and habitat restoration (Q7-primary,Q10-secondary).

 

2.4 Overview of Benefit Cost Analysis

2.4 Trails & Bridges Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle Uncertain ($5,282,753)    
Social Not monetized      
Economic Revitalization 3 years     $4,430,349
Net Present Value (7%) ($852,404)      
BCR .83      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 34   Costs have been aggregated for the purposes of this analysis. ($5,282,753) 3
Social  Value
Not monetized 34        
Economic Revitalization
Economic impact of construction 34 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $4,430,349 2

 

 

2.4 Lifecycle Cost: Uncertainty value of 3 is used because O&M costs are unknown. Cost of construction found in MN RoR Sources and Uses.pdf.

 

2.4 Social Value: Public parks and trails offer broadly-accessible recreational and social activities.

 

2.4 Economic Revitalization: The uncertainty value for this was set at 2 because the time constraints allowed for limited accuracy IMPLAN analysis.

 

Memorial & Irving (2.5)

 

2.5 Activity Description: Under NDRC the City will relocated a flood damaged and subsequently demolished community center out of the floodplain. The new site will be central to three CDBG-eligible neighborhoods that lack community centers. The community center design will evolve to provide comprehensive services including meeting space for neighbors, fitness and wellness activities, out-of-school-time programming, and parent education. Memorial adjoins Laura MacArthur Elementary School, serving a diverse and low income population (Free & Reduced Lunch rate of 77%) The park is central to the west Duluth business district which facilitates easy access to additional services, is on a bus line, and close to freeway access.  West Duluth is populated by many small, community-owned businesses that currently support the vulnerable populations through mentoring, internships, and the like. Community meetings and design phase (Q1-3), plans and permitting (Q4), construction (Q5-10)

 

2.5 Overview of Benefit Cost Analysis

2.5 Memorial & Irving Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 30 years ($12,252,303)    
Social Not monetized      
Economic Revitalization 3 years     $10,084,430
Net Present Value (7%) ($2,167,873)      
BCR .82      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 35   Costs have been aggregated for the purposes of this analysis. ($12,252,303) 3
Social  Value
Not monetized 35        
Economic Revitalization
Economic impact of construction 35 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $10,084,430 2

 

2.5 Lifecycle Cost: Uncertainty value of 3 is used because O&M costs are unknown. Cost of construction found in MN RoR Sources and Uses.pdf.

 

2.5 Social Value: The social benefits of a community center are numerous and difficult to quantify. Replacing the community center which the Irving neighborhood lost to the 2012 flood will restore space for after-school youth programs, meetings, recreation, and other uses, and foster social cohesion.

 

2.5 Economic Revitalization: The uncertainty value for this was set at 2 because the time constraints allowed for limited accuracy IMPLAN analysis.

 

Community Safe Rooms (2.6)

 

2.6 Activity Description: Located in the MID-URN area are three manufactured/mobile home parks that were variously affected by flooding. Each facility is currently out of compliance due to lack of community safe rooms. This activity would build safe rooms in partnership with property owners. The safe rooms will serve as community gathering space and serve as a node for community-based wifi. This approach will build greater safety during disasters, social cohesion, and access for information in extremely low-income housing areas. Design, permitting, procurement (Q1-2), construction (Q4-7).

 

2.6 Overview of Benefit Cost Analysis

2.6 Community Safe Rooms Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle 30 years ($139,326)    
Resilience 1 year     $400,000
Economic Revitalization       $114,675
Net Present Value (7%) ($375,349)      
BCR 2.69      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Construction and related costs 36   Costs have been aggregated for the purposes of this analysis. ($139,326) 3
Resilience Value
Displacement of Households 36   As this site is out of compliance, if a safe room is not built, it could result in the loss of license and displacement of 80 households. At a minimum displacement/moving cost of $5,000 per household. $400,000 2
Economic Revitalization
Economic impact of construction 36 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $114,675 2

 

2.6 Lifecycle Cost: Uncertainty value of 3 is used because O&M costs are unknown. Cost of construction found in MN RoR Sources and Uses.pdf.

 

2.6 Resilience Value: In addition to avoiding displacement, as noted in the activity description, the safe rooms will serve as community gathering space and serve as a node for community-based wifi. This approach will build greater safety during disasters, social cohesion, and access for information in extremely low-income housing areas.

 

2.6 Economic Revitalization: The uncertainty value for this was set at 2 because the time constraints allowed for limited accuracy IMPLAN analysis.

 

  1. Project 3 – Resilient Housing Solutions in the MID-URN

4.1 Project Description

          The final project addresses housing solutions that are needed throughout the entire MID-URN area including buyouts of homes that remain in harm’s way and completing resilient repair/rehabilitation of homes affected by the June 2012 disaster. Due to the loss of the asset and insufficient data, buyouts are difficult to monetize. Better estimations can be made once flood plain re-mapping is complete.

    • Overview of Benefit-Cost Analysis

 

Activity NPV (7% Discount) Benefits Cost BCR
3.1 Buyouts $1,729,821 $4,050,000 .42
3.2 Resilient Housing Rehab  $13,646,863 $12,450,000 1.09
Project 3- Housing Solutions in the MID-URN Total $15,376,684  

$16,500,000

 

.93

 

  • Activities

 

Buyouts (3.1)

3.1  Activity Description: The activity will include the voluntary acquisition and demolition of homes and businesses that are located in the floodway and flood fringe of the St. Louis River, as well as, properties located throughout neighborhoods that were damaged during the 2012 flood or that are in areas that could be flooded in future events. Properties will be acquired by the city; all structures will be permanently removed. The priority area for buyouts is the Fond du Lac neighborhood in Duluth which suffers from frequent flooding due to its location on the St. Louis River. The secondary target for buyouts include homes scattered throughout the MID-URN that are affected by flooding from vertical waterways or were built on historic stormwater infrastructure where the cost of buyout is less than the project cost associated with repair/replacing infrastructure with the home still present. Neighborhood meetings and property identification (Q1-2), environmental reviews, purchase agreements (Q2-5), pre-demolition hazardous materials assessments, contractor procurement (Q4-6), demolition & site remediation (Q5-8).

 

3.1 Overview of Benefit Cost Analysis

 

3.1 Buyouts Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle   ($4,050,000)    
Resilience Not monetized      
Environmental Not monetized      
Economic Revitalization       $1,729,821
Net Present Value (7%) ($2,320,179)      
BCR .42      
Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Land acquisition, demolition, and related costs 38   Costs have been aggregated for the purposes of this analysis. ($4,050,000) 2
Resilience Value
Removal of structures from floodplain 38        
Environmental Value
Environmental services from new land uses 38        
Economic Revitalization
Economic impact of investment 38 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $1,729,821 2

 

 

3.1 Lifecycle Cost: Uncertainty value of 2 is used because exact costs of acquisition and demolition will depend on which property owners agree to a buyout. Cost of activity found in MN RoR Sources and Uses.pdf.

 

3.1 Resilience Value: The purpose of the activity is to remove structures from flood-prone areas, but specifics will depend on participation.

 

3.1 Environmental Value: Future land uses after demolition may offer valuable ecological services that cannot be estimated at the time of analysis. An additional use of the land may be for urban agriculture which could provide employment opportunities for LMI individuals.

 

3.1 Economic Revitalization: The uncertainty value for this was set at 2 because the time constraints allowed for limited accuracy IMPLAN analysis.

 

Housing Rehabilitation (3.2)

 

3.2 Activity Description:  In order to complete recovery at the household level, additional resources are needed. The Residential Resilient Recovery and Rehabilitation Fund will provide homeowners and small landlords with a one-stop shop experience and bundling of financial resources to complete recovery needs and build resilience. The fund will provide different tools based upon resilience needs and household income with grants and forgivable, deferred, and amortizing loans. Each property will be assessed for recovery and resilience needs, a scope of work will be developed to include Healthy Homes criteria, increased energy efficiency, and bulk water management best practices. The fund will be administered by the Housing Resource Connection, a multi-agency partnership that seeks to serve residents by connecting them to the right resources to accomplish their housing rehabilitation. After surveying flood affected properties, it has been shown that unmet needs extend throughout the MID-URN. In addition to offering cross-MID-URN services, fund partners will create a special target area for historic rehabilitation in the Morgan Park neighborhood an investment that will be supported through stormwater management that protects the neighborhood from being cut off during the next event (activity 3.3). The State will use this approach in the MID-URN to inform future disaster recovery programming. Marketing and process development (Q1), home inspections, scope development, procurement, loan closings, construction (Q2-12).

 

3.2 Overview of Benefit Cost Analysis:

 

3.2 Housing Rehabilitation Time Period Total Cost Value Annual Benefit Value Present Value Benefits (7%)
Lifecycle   ($12,450,000)    
Economic Revitalization     $139,440 $13,646,863
Net Present Value (7%) $1,196,863      
BCR 1.09      

 

Cost & Benefits Category Page # in Factor Narrative or BCA Qualitative Description of Effect and Rationale Quantitative Assessment (basis and/or methodology for calculating monetized effect including data sources) Monetized effect (if applicable) Uncertainty
Lifecycle Cost
Costs 39   Costs have been aggregated for the purposes of this analysis. {$12,450,000) 2
Economic Revitalization
Economic impact of investment 39 Jobs, Employee compensation, Proprietor income, Other property income, Tax collection Total value of economic benefits from IMPLAN analysis carried out by Economic Analysis Unit, Minnesota Dept. of Employment and Economic Development  (MN_IMPLAN.xlsx). $11,916,547 2
Increased tax revenue (long-term) 39 Increased property tax collection due to improvement in home values NAHB 2015 (NAHB2015.pdf) est. $11,200/year from each $1 million invested in renovations $1,730,316

 

4

 

3.2 Lifecycle Cost: Uncertainty value of 2 is used because participation in the program cannot be precisely predicted. Cost of construction found in MN RoR Sources and Uses.pdf.

 

3.2  Economic Revitalization: The uncertainty value for this was set at 2 because the time constraints allowed for limited accuracy IMPLAN analysis.

In uncertainty value for increased tax revenue (long-term) was set at 4 because the NAHB report’s estimate of tax base improvements assumes average housing stock; this activity, however, will be focused on properties of with unrepaired flood damage and thus have the potential for greater than usual increases in appraised value of the homes repaired.

The Benefit Cost Analysis can be downloaded here.

Archived- Phase II Application for Public Comment

Read the Phase II Minnesota application to the National Disaster Resilience Competition below. To obtain print copies of the application, call Patrick Armon at 800-657-3858,(651) 259-7455 or TTY 800-282-5909.

Written public comments on the application should be submitted to:

NDRC Application
Attn: Patrick Armon
Minnesota Department of Employment and Economic Development
First National Bank Building
332 Minnesota Street, Suite E200
St. Paul, MN 55101-1351

Written comments may also be submitted by fax to (651) 296-1290 or by email to patrick.armon@state.mn.us. To ensure consideration of your comments type “NRDC Application” in the subject line of your email.

Comments on the application will be accepted until the close of business on October 16, 2015.

Ripples of Resilience (RoR) is Minnesota’s strategy for achieving long-term, comprehensive resilience across the state where lessons learned through a deep level of integration and strategy refinement will be applied to Minnesota communities. The two main components of RoR include: 1) a Comprehensive Community Resiliency Formula applied across five layers of resiliency (housing, economy, resources, energy, and health) that assesses existing vulnerabilities, stressors, and recovery needs, implements prescriptive solutions, develops long-term positive community outcomes, and maximize co-benefits, and 2) a proactive decision-making process that prioritizes a solution, or develops a synergistic combination of solutions, based on its ability to create ripples of positive impact across populations, sectors, geographies, and time. RoR has been developed to address multiple needs in the State of Minnesota.

The RoR approach is predicated on creating transformational change in the Minnesota target area while establishing a clear pathway for advancing state and regional resiliency. The MID-URN characteristics exhibited in the MN target area are described in Exhibit B–Threshold. This documents the impact of flooding and severe storm damage that occurred in June of 2012 in northeastern Minnesota and northwestern Wisconsin (DR-4069), as 8-12” of rain fell in a 24-hour period on already saturated soils at the tip of Lake Superior, as well as the remaining damage in LMI neighborhoods of Duluth, MN (target area).

Although during 2011-2013, Minnesota had 6 presidentially declared disasters, 52% of FEMA Public Assistance funds granted to Minnesota during that time period occurred as a result of this one disaster (DR-4069). FEMA Individual Assistance was not declared for any MN disaster during 2011-2013, however, the Minnesota Housing and Finance Agency (MHFA) offered disaster assistance loans to households that did not qualify for SBA disaster loans or had an unmet needs after SBA loans were closed. Of the MN QuickStart loans made in response to the qualifying disaster, 31% were for households in the MID-URN area per data provided by MHFA. In addition, although fifteen counties were included in the declaration, 83% of SBA business loans were made in St. Louis County, where the MID-URN is located (sub-county data that aligns with the MID-URN is not available).

The considerable damage that occurred due to floods and severe storms as part of DR-4069, plus the impact on the low-income neighborhoods in Duluth and remaining unmet needs led Minnesota to define the MID-URN area as census tracts located along the St. Louis River and Lake Superior as show in Attachment E – Optional Maps, Drawings, and Renderings.  The target area meets Most Impacted criteria in three ways as illustrated by the following documentation (available in Exhibit B-Threshold): 127 homes damaged (109 severely), $3.030,875 in FEMA category C-G infrastructure damage, and environmental degradation of trails, stream beds, and slumping critical slopes affecting housing and businesses illustrated by a NOAA report. Most Distressed criteria is met through the 51.68% of residents that have incomes below 80% of AMI, 4,033 renter households below 50% AMI with severe housing problems, and existing environmental distress that includes hundreds of brownfield sites, and the nation’s largest contaminated sediment Superfund site. The target area is located in the Great Lakes largest Area of Concern as defined in the Great Lakes Water Quality Agreement of 1987.

The MN target area has unmet recovery needs that cannot be met with current funding allocations in each three threshold criteria areas including housing damage, infrastructure, and environmental damage. Provided documentation shows over 20 homes that continue to need repair, $1.37 million in unfunded permanent public infrastructure including a community center and trails/culverts, and $1.46 million in environmental repair work. Documentation of these unmet needs can be found in Exhibit B – Threshold Criteria.

According to the Spatial Hazard Events and Losses Database for the United States (1960-2009), losses from disasters in Minnesota have been mainly due to flooding (40%), severe storms (31%), and wind (12%). Losses due to tornadoes (9%), winter weather (8%), wildfire (0%), and drought & heat (0%) each were also noted. This historical data reflect past risks and for the most part reflects areas of anticipated future risk due to climate change. The Synthesis of the Third National Climate Assessment for the Great Lakes Region completed by Minnesota’s project partner the Great Lakes Integrated Sciences + Assessments (GLISA) states ongoing climate risks will include:

  1. Extreme rainfall events and flooding that may lead to land cover changes (erosion), declining water quality, and negative impacts on transportation, agriculture, human health, and infrastructure.
  2. Initial increase in agricultural production due to longer growing seasons and increased carbon dioxide that are eventually reduced due to long term climate stresses including drought.
  3. Replacement of iconic northwoods species of trees with southern varieties.
  4. Increased heatwave intensity and frequency, increased humidity, degraded air quality, reduced water quality, and change in vector borne disease patterns increasing public health risks.

In addition, the report discusses the high energy-intensity nature of the Great Lakes region where the per capita carbon emissions are 20% higher than the national average mainly due to the dependence on coal as an energy source for electrical production and district thermal systems. For residents, the On the Brink (2013) Home Energy Affordability report shows the county where the MID-URN is located, St. Louis County, has 6,156 households with incomes less than 50% of the Federal Poverty level. This group of households has a home energy burden of 38.8% with an average annual household shortfall of $2,153 to pay for energy. The affordable energy burden is considered 6% of gross household income. All households in Minnesota that are at 200% of the Federal Poverty level or under have an average burden of 32%. Although a warming climate may indicate greater energy affordability in Minnesota, there are competing factors including experiences like the 2013-2014 polar vortex resulting from record Arctic ice melt that resulted in the coldest winter recorded in over 120 years in the target area (75 days below zero).
According to the Hazards and Vulnerability Research Institute associated with the University of South Carolina that has developed the Social Vulnerability Index, the Minnesota MID-URN area is especially vulnerable to environmental hazards. Below is a map of social vulnerability with flood-affected properties overlayed (St. Louis River corridor is on the bottom of the map). Neighborhoods within the MID-URN are considered high or medium-high on the SoVI®.

Despite the challenges of disaster recovery and concerns about ongoing climate impacts, the people of Minnesota love where they live because of the amazing natural resources. Even after 75 days below zero last year, the target community, Duluth, was named the “Best City Outdoors” by Outdoor Magazine. It has taken a resilient people to overcome challenges like the whole of 2012,where the relatively small target area experienced almost every one of the anticipated natural threats identified in the State of Minnesota Hazard Mitigation Plan (2014) including: extreme cold ( -42ᵒF in January 19), a blizzard with more than $1 million in damages (February 29), hail storm (May 28), riverine flash floods (June 19-20, DR-4069), tornado (August 9), a lightening fatality (August 12), and drought (October 4- USDA). The only natural threats that Minnesota is especially vulnerable to that were not experienced in Duluth in 2012 are wildfire and extreme heat, however, potential NDR strategies implemented in Duluth may reduce wildfire potential in the northern Minnesota forests and significantly reduce carbon emissions.

One of the consequences of being affected by severe flooding and drought during the same year is an exacerbation (and sometimes delay) of flood related damage. When clay-based soils first became super saturated by the flood, and then underwent a period of severe drought many foundations that appeared to be initially undamaged by the flood began to break-up. Other foundations became more vulnerable and showed damage the following spring after the first post-flood freeze-thaw cycle. Unfortunately, this delayed damage that can be attributed to the initial flood appeared only after SBA deadlines had passed, leaving many previously dry homes with cracked and leaky basements lowering home values and endangering human health.

Finding solutions in the target area can create ripples for other areas of Minnesota that experience similar situations to the target area issues including shortage of affordable housing, high levels of energy poverty, USDA-defined food deserts, large areas of legacy contamination, concentrated poverty, and health disparities where lifespans average 10 years less than neighboring higher-income zip codes.

By identifying five layers of resiliency (housing, economy, resources, energy, health) and assembling a cross-sector multi-jurisdictional team (defined in Exhibit E – Soundness of Approach), Minnesota is  hoping to leverage technical assistance, funding, and strategies that can address multiple needs in the target area while facilitating broader impact. Examples of this needs-based approach is potential creation of affordable housing in the target area to replace flood-damaged units, thus alleviating housing shortage problems in the target area which facilitates ongoing regional economic development by ensuring adequate housing for workers. By incorporating strong University research partners, this new housing stock can demonstrate cold-climate construction techniques for eventual replication in the northern United States as an energy efficiency and climate mitigation strategy.

Minnesota selected a target area that demonstrates 3 most-impacted, 3 most-distressed, and 3 unmet needs criteria as well as other social, environmental, and economic challenges. The target area was not just selected because of its need, but also because of the spirit of its people and the local capacity to experiment and innovate. Although the target area represents many challenges, it also represents many opportunities to model solutions for the state and region. NDR funds would be utilized to create direct impact through improvements in housing, the economy, water quality, energy security, and community health, while developing a pathway toward statewide resilience.

Phase II Application- DRAFT FOR PUBLIC COMMENT

In Dakota Sioux, Minnesota means ‘sky-tinted water.’ Known as the ‘Land of 10,000 Lakes’, Minnesota ties its identity to water as it embraces a half million acres of pristine Boundary Waters flowing north to the Arctic Ocean, the headwaters of the Mississippi River flowing to the Gulf of Mexico, and the gateway to the Great Lakes flowing to the Atlantic Ocean. With 10% of the world’s accessible freshwater contained in Lake Superior, the mighty Mississippi wending through the state, and a cultural identity centered on water resources, Big Water has traditionally referred to these important environmental and economic assets. Unfortunately in Minnesota, Big Water is gaining a new definition as the frequency and severity of storms increase due to climate change.

During 2011-2013, Minnesota has had six presidentially declared disasters (DR #s 1982, 1990, 4009, 4069, 4113) due to severe storms, flooding, and tornados. These disasters have caused hundreds of millions of dollars in damage and have affected 70 of MN’s 87 counties, containing 90% of the state’s population. The Big Water: Ripples of Resilience application focuses on a most-impacted, most-distressed area of Minnesota with unmet recovery needs (MID-URN) that is located on the tip of Lake Superior. The City of Duluth suffered over $100 million in damages from a June 2012 severe storm and flood (DR-4069). Although much recovery work has been accomplished, there remains unrepaired damage to homes, infrastructure, and the environment. The State of Minnesota will use the MID-URN area to model resilient recovery, complete necessary repairs, and implement a framework for communities for building long-term resilience in the areas of housing, the economy, resource management, energy transition, and health.

The Big Water: Ripples of Resilience application has three projects that synergistically combine to form a holistic recovery in the MID-URN and advance State resiliency goals. The projects and their anticipated outcomes are:

  1. Neighborhoood Needs: Remove, Repair, Reuse, & Revitalize– Remove 25 at-risk homes, resiliently repair 250 homes, adaptively reuse 4 historic structures (133 mixed-income units), and demonstrate resilient housing models with micro-manufacturing to replace lost housing from the June 2012 floods. Revitalize low-income neighborhood commercial corridors through a Small Business Resilience Revitalization fund and development of 2 new housing projects (50-unit supportive housing project & 150 mixed-use development).
  2. Connecting Communities: Nature, Nurture, & Net- Repair and remediate 72 acres of park and 55 miles of trails connecting LMI neighborhoods, serve 18,000 LMI residents through relocated and expanded community gathering facilities.
  3. Infrastructure Investments: Retain, Redirect, & Renew[able]- Implement green infrastructure strategies including extended detention wetlands & reestablishment of natural floodplains. Develop resilient power demonstration projects and modify the flood-affected district heat distribution system to provide long-term resilience, greater efficiency, and opportunity for conversion to locally derived biomass instead of coal.

Each project furthers Minnesota’s goal of maximizing social, economic, and environmental resilience through smart recovery and flood reduction strategies to inform approaches for the entire state.

Minnesota experienced six presidentially declared disasters in 2011-2012 (DR-1982, 1990, 4009, 4069, 4113, 4131) ranging from an unseasonal winter storm in April of 2013 to severe storms, flooding, straight line winds, and tornadoes in 2011, 2012, and 2013. The total of obligated FEMA assistance dollars for these six disasters is over $100 million (Table 1). All threshold documentation can be found in the dropbox folder: https://www.dropbox.com/sh/fqbd9gf21n2gnw2/AABVj-YGxY25l7pICSGj-kfHa?dl=0 .

The Minnesota target area represents flooding and severe storm damage that occurred in June of 2012 in northeastern Minnesota and northwestern Wisconsin, as 8-12” of rain fell in a 24 hour period on already saturated soils at the tip of Lake Superior (qualifying disaster DR-4069). Over 43% of FEMA dollars obligated to Minnesota due to the six declarations, and 52% of the FEMA public assistance funds, occurred as a result of this one disaster. Especially hard hit was the City of Duluth, where despite a media focus on a polar bear that was washed from enclosures at the Duluth Zoo and two escaped seals, the most significant impact was on vulnerable households in low-income neighborhoods along the St. Louis River and on the 820’ high Duluth hillside overlooking Lake Superior.

Table 1 – Presidentially Declared Disasters Affecting Minnesota in 2011, 2012, & 2013
DR Date P.A. Emergency Obligated Disaster Declaration Type
4131 7/25/13 8,985,258 4,596,713 13,728,793 severe storms, winds, flooding
4113 5/3/13 4,865,626 3,218,156 8,168,120 severe winter storms
4069 7/6/12 38,252,495 5,206,104 44,144,662 severe storms and flooding
4009 7/28/11 8,606,891 2,746,282 11,706,412 severe storms, flooding, tornadoes
1990 6/7/11 1,870,686 2,458,366 4,473,642 severe storms and tornadoes
1982 5/10/11 11,161,360 9,128,830 20,633,792 severe storms and flooding
$73,742,316 $27,354,451 $102,855,422

The target area identified as most impacted and distressed is in a sub-county area of St. Louis County, MN, as a result of the Minnesota Severe Storms and Flooding (DR-4069). This MID-URN defined area includes St. Louis River Corridor neighborhoods and the Hillside neighborhood of Duluth variably described as census tracts 51-(3,4,9,10,11,12,13,14, 16,17,18,19,20,22,23,24,26,29,30,33,34,36,37,38,101,102,156,157,158). This area exhibits Most Impacted and Most Distressed Characteristics which affect the ability of the area to recover without further assistance.

The following threshold documentation is identified in the NDRC-MID-URN Summary Checklist:

Most Impacted Characteristics-

Housing Damage Due to Eligible Disaster- A concentration of housing damage occurred in this area due to the eligible disaster with over 100 homes damaged and over 20 homes seriously damaged. State of Minnesota QuickStart loans are used to document this damage. QuickStart is a state disaster loan program available to households that are unable to adequately repair flood-damaged properties with proceeds from insurance, SBA loans, or FEMA Individual Assistance (when available). The Minnesota Housing Finance Agency administered this program for DR-4069.

HousingDamage.xlsx contains a listing of 127 homes in the target area receiving QuickStart assistance. A map of damaged properties can be found in DamagedQSMap.pdf. Additional homes in the target area were damaged but were either repaired through private funds, insurance, buyouts, and SBA loans, or have yet to be repaired. Each QuickStart loan required documentation that the damage was due to the disaster and verification of repair costs.

Infrastructure-Damage Damage from the eligible disaster (DR-4069) to permanent infrastructure in a sub-county area estimated at $2 million or greater is documented in InfrastructureDamage.xlsx.  The summary provides FEMA project worksheets for $3,030,875.31 related to bridges, roadway embankments, culverts, grinder pumps, walls, and storm sewers. Each project is located in the target MID-URN area. To date, grants have been awarded to the City of Duluth totaling over $41 million for infrastructure repair and environmental remediation (FoodProjectStatus2-15.pdf).

Environmental Degradation- Because of the topography of the Duluth hillside with its 883’ drop to Lake Superior and the St. Louis River, flash flooding occurred along streams damaging the stream channels, stream banks, and vegetative cover, as well as causing critical slopes to slump. A report written by the Eastern Research Group, Inc. for NOAA’s Coastal Services Center documents impact on Chester Creek’s stream channel and indicates how environmental degradation from DR-4069 puts housing, infrastructure, and economic drivers at risk from future events. Specific information can be found on pages 4-6 and 4-7 of the Economic Assessment of Green Infrastructure Strategies for Climate Change Adaptation: Pilot Studies in the Great Lakes Region (EnvironmentalDegradationNOAA.pdf).

Most Distressed Characteristics- 

Disaster Impacted Low- and Moderate-Income Households– The target area reflects census tracts in which 51.68% of residents are less than 80% of the area median income (33,904/65,599). The data is from the 2006 to 2010 ACS LMI Table from HUD, summarized in LMIHouseholds.xlsx.

Loss/shortage of Affordable Rental Housing- The disaster-impacted target area has a minimum of 100 renters with income less than 50 percent of median in the target area with severe housing issues. In fact, according to the Comprehensive Housing Affordability Strategy (CHAS) 2007-2011, the target area has 4,033 renter households below 50% AMI that experience at least one of the four severe housing problems including lack of a kitchen, lack of plumbing, more than one person per room, or cost burden greater than 50%. This data is pre-disaster information. A 2014 community housing study has shown a shortage of 1,275 affordable rental units. CHAS data and housing study link are found in AffrdRentalHousingIssues.xlsx.

Disaster Impacted an Area With Prior Documentated Environmental Distress- The target area represents an area of considerable legacy contamination which has resulted in it being named as the largest Great Lakes Area of Concern (AOC). The target area also includes the largest contaminated sediment Superfund site in the United States which is on the EPA’s National Priorities List (EPA ID# MND039045430 ) for cleanup that will begin during the NDRC funding period. The state-maintained Brownfield site list has 138 active and 378 inactive Superfund, CERCLIS, Voluntary Investigation & Cleanup, Landfill, Contaminated Soil Treatment Facility, Leak Site, Air Permit, Petroleum Brownfield, Solid Waste, State Assessment, and Tank sites. A summary of these sites along with thousands of other environmental permits in the target area is summarized in BrownfieldsMN.xlsx.

Unmet Recovery Needs Threshold

Housing- The target area continues to have over 20 houses that have not been adequately repaired. Data has been gathered by City of Duluth Emergency Management and Community Development offices, with additional compilation from disaster case management and local housing organizations involved in administering State of Minnesota QuickStart disaster loans. A survey has been conducted of these structures including 1) documentation provided that the damage was caused from the disaster, and 2) that resources from insurance/SBA/Quick Start have been inadequate to complete repairs. Addresses for the homes surveyed are provided in UnmetHousing.docx with a map of properties provided above.

Infrastructure-   Damage to permanent infrastructure in which a funding shortfall exists includes the loss of the Irving Park Community Building which sustained damage exceeding its value and would have remained in a 100-year flood plain if not razed for rebuilding outside the flood plain. The replacement cost of $481,699.96 and engineering report is included in UnmetInfrastructure-Irving.pdf. Insurance and FEMA funding was unavailable for this project so a gap exists for the entire replacement cost. DR-4069 did not receive any CDBG-DR funding.

In addition to the Irving Project, there is a gap of funding for trail projects and culverts of $887,343.05 in the target area due to the unanticipated costs of rebuilding and delay in discovering the extent of damage. An engineering estimate documenting this damage along with sources and uses can be found in UnmetInfrastructure-Trails.pdf.

Environmental Degradation: The environmental degradation in Duluth was vast and varied. Documentation is provided that demonstrates environmental damage from the qualifying disaster (DR-4069) that has not yet been addressed and cannot be addressed with existing resources in the sub-county target area. Unmet environmental repairs include stabilizing a hillside that has slumped and puts housing at risk of damage from a future storm event. To resiliently stabilize the slope, an engineer has provided an estimate between $300,000 and $400,000. A certification memo after March 2014 and the original engineering report for this remaining environmental degradation can be found in UnmetEnvirDegrad-Proco.pdf.

Additionally, $1,055,000 of stream repair work remains in the MID-URN target area. The qualifying disaster (DR-4069) created incredibly high flows that resulted in significant damage to stream banks, changed stream channels, and impaired the flows threatening adjacent infrastructure. Unrepaired damage without funding sources has been documented for five trout streams that flow through the MID-URN including Chester Creek, Keene Creek, Miller Creek, Mission Creek, and Sargent Creek. A certification memo after March 2014 and report to the Minnesota Recovers Taskforce can be found in UnmetEnvriDegrad-Streams.pdf.

The severity of the qualifying disaster coupled with legacy deindustrialization issues of contamination on poverty demonstrate the MN MID-URN area is in need of NDRC funding.

Ripples of Resilience (RoR) is Minnesota’s strategy for achieving long-term, comprehensive resilience across the state where lessons learned through a deep level of integration and strategy refinement will be applied to Minnesota communities. The two main components of RoR include: 1) a Comprehensive Community Resiliency Formula applied across five layers of resiliency (housing, economy, resources, energy, and health) that assesses existing vulnerabilities, stressors, and recovery needs, implements prescriptive solutions, develops long-term positive community outcomes, and maximize co-benefits, and 2) a proactive decision-making process that prioritizes a solution, or develops a synergistic combination of solutions, based on its ability to create ripples of positive impact across populations, sectors, geographies, and time. RoR has been developed to address multiple needs in the State of Minnesota.

The RoR approach is predicated on creating transformational change in the Minnesota target area while establishing a clear pathway for advancing state and regional resiliency. The MID-URN characteristics exhibited in the MN target area are described in Exhibit B–Threshold. This documents the impact of flooding and severe storm damage that occurred in June of 2012 in northeastern Minnesota and northwestern Wisconsin (DR-4069), as 8-12” of rain fell in a 24-hour period on already saturated soils at the tip of Lake Superior, as well as the remaining damage in LMI neighborhoods of Duluth, MN (target area).

Although during 2011-2013, Minnesota had 6 presidentially declared disasters, 52% of FEMA Public Assistance funds granted to Minnesota during that time period occurred as a result of this one disaster (DR-4069). FEMA Individual Assistance was not declared for any MN disaster during 2011-2013, however, the Minnesota Housing and Finance Agency (MHFA) offered disaster assistance loans to households that did not qualify for SBA disaster loans or had an unmet needs after SBA loans were closed. Of the MN QuickStart loans made in response to the qualifying disaster, 31% were for households in the MID-URN area per data provided by MHFA. In addition, although fifteen counties were included in the declaration, 83% of SBA business loans were made in St. Louis County, where the MID-URN is located (sub-county data that aligns with the MID-URN is not available).

The considerable damage that occurred due to floods and severe storms as part of DR-4069, plus the impact on the low-income neighborhoods in Duluth and remaining unmet needs led Minnesota to define the MID-URN area as census tracts located along the St. Louis River and Lake Superior as show in Attachment E – Optional Maps, Drawings, and Renderings.  The target area meets Most Impacted criteria in three ways as illustrated by the following documentation (available in Exhibit B-Threshold): 127 homes damaged (109 severely), $3.030,875 in FEMA category C-G infrastructure damage, and environmental degradation of trails, stream beds, and slumping critical slopes affecting housing and businesses illustrated by a NOAA report. Most Distressed criteria is met through the 51.68% of residents that have incomes below 80% of AMI, 4,033 renter households below 50% AMI with severe housing problems, and existing environmental distress that includes hundreds of brownfield sites, and the nation’s largest contaminated sediment Superfund site. The target area is located in the Great Lakes largest Area of Concern as defined in the Great Lakes Water Quality Agreement of 1987.

The MN target area has unmet recovery needs that cannot be met with current funding allocations in each three threshold criteria areas including housing damage, infrastructure, and environmental damage. Provided documentation shows over 20 homes that continue to need repair, $1.37 million in unfunded permanent public infrastructure including a community center and trails/culverts, and $1.46 million in environmental repair work. Documentation of these unmet needs can be found in Exhibit B – Threshold Criteria.

According to the Spatial Hazard Events and Losses Database for the United States (1960-2009), losses from disasters in Minnesota have been mainly due to flooding (40%), severe storms (31%), and wind (12%). Losses due to tornadoes (9%), winter weather (8%), wildfire (0%), and drought & heat (0%) each were also noted. This historical data reflect past risks and for the most part reflects areas of anticipated future risk due to climate change. The Synthesis of the Third National Climate Assessment for the Great Lakes Region completed by Minnesota’s project partner the Great Lakes Integrated Sciences + Assessments (GLISA) states ongoing climate risks will include:

  1. Extreme rainfall events and flooding that may lead to land cover changes (erosion), declining water quality, and negative impacts on transportation, agriculture, human health, and infrastructure.
  2. Initial increase in agricultural production due to longer growing seasons and increased carbon dioxide that are eventually reduced due to long term climate stresses including drought.
  3. Replacement of iconic northwoods species of trees with southern varieties.
  4. Increased heatwave intensity and frequency, increased humidity, degraded air quality, reduced water quality, and change in vector borne disease patterns increasing public health risks.

In addition, the report discusses the high energy-intensity nature of the Great Lakes region where the per capita carbon emissions are 20% higher than the national average mainly due to the dependence on coal as an energy source for electrical production and district thermal systems. For residents, the On the Brink (2013) Home Energy Affordability report shows the county where the MID-URN is located, St. Louis County, has 6,156 households with incomes less than 50% of the Federal Poverty level. This group of households has a home energy burden of 38.8% with an average annual household shortfall of $2,153 to pay for energy. The affordable energy burden is considered 6% of gross household income. All households in Minnesota that are at 200% of the Federal Poverty level or under have an average burden of 32%. Although a warming climate may indicate greater energy affordability in Minnesota, there are competing factors including experiences like the 2013-2014 polar vortex resulting from record Arctic ice melt that resulted in the coldest winter recorded in over 120 years in the target area (75 days below zero).
According to the Hazards and Vulnerability Research Institute associated with the University of South Carolina that has developed the Social Vulnerability Index, the Minnesota MID-URN area is especially vulnerable to environmental hazards. Below is a map of social vulnerability with flood-affected properties overlayed (St. Louis River corridor is on the bottom of the map). Neighborhoods within the MID-URN are considered high or medium-high on the SoVI®.

Despite the challenges of disaster recovery and concerns about ongoing climate impacts, the people of Minnesota love where they live because of the amazing natural resources. Even after 75 days below zero last year, the target community, Duluth, was named the “Best City Outdoors” by Outdoor Magazine. It has taken a resilient people to overcome challenges like the whole of 2012,where the relatively small target area experienced almost every one of the anticipated natural threats identified in the State of Minnesota Hazard Mitigation Plan (2014) including: extreme cold ( -42ᵒF in January 19), a blizzard with more than $1 million in damages (February 29), hail storm (May 28), riverine flash floods (June 19-20, DR-4069), tornado (August 9), a lightening fatality (August 12), and drought (October 4- USDA). The only natural threats that Minnesota is especially vulnerable to that were not experienced in Duluth in 2012 are wildfire and extreme heat, however, potential NDR strategies implemented in Duluth may reduce wildfire potential in the northern Minnesota forests and significantly reduce carbon emissions.

One of the consequences of being affected by severe flooding and drought during the same year is an exacerbation (and sometimes delay) of flood related damage. When clay-based soils first became super saturated by the flood, and then underwent a period of severe drought many foundations that appeared to be initially undamaged by the flood began to break-up. Other foundations became more vulnerable and showed damage the following spring after the first post-flood freeze-thaw cycle. Unfortunately, this delayed damage that can be attributed to the initial flood appeared only after SBA deadlines had passed, leaving many previously dry homes with cracked and leaky basements lowering home values and endangering human health.

Finding solutions in the target area can create ripples for other areas of Minnesota that experience similar situations to the target area issues including shortage of affordable housing, high levels of energy poverty, USDA-defined food deserts, large areas of legacy contamination, concentrated poverty, and health disparities where lifespans average 10 years less than neighboring higher-income zip codes.

By identifying five layers of resiliency (housing, economy, resources, energy, health) and assembling a cross-sector multi-jurisdictional team (defined in Exhibit E – Soundness of Approach), Minnesota is  hoping to leverage technical assistance, funding, and strategies that can address multiple needs in the target area while facilitating broader impact. Examples of this needs-based approach is potential creation of affordable housing in the target area to replace flood-damaged units, thus alleviating housing shortage problems in the target area which facilitates ongoing regional economic development by ensuring adequate housing for workers. By incorporating strong University research partners, this new housing stock can demonstrate cold-climate construction techniques for eventual replication in the northern United States as an energy efficiency and climate mitigation strategy.

Minnesota selected a target area that demonstrates 3 most-impacted, 3 most-distressed, and 3 unmet needs criteria as well as other social, environmental, and economic challenges. The target area was not just selected because of its need, but also because of the spirit of its people and the local capacity to experiment and innovate. Although the target area represents many challenges, it also represents many opportunities to model solutions for the state and region. NDR funds would be utilized to create direct impact through improvements in housing, the economy, water quality, energy security, and community health, while developing a pathway toward statewide resilience.

General Management- The Minnesota management structure is broken into general administration, project management, and evaluation categories. The Minnesota Department of Employment and Economic Development is the applicant with the City of Duluth as the subrecipient. Duluth LISC and Ecolibrium3 serve as general management partners assisting in the coordination between community organizations and leading community engagement activities. To provide ongoing counsel, integration with state and regional efforts and advance best practices from RoR, a Resiliency Committee has been formed with representatives from local, state and federal organizations/agencies with specific effort to include representatives of vulnerable populations and technical experts. The Minnesota Environmental Quality Board, Minnesota Pollution Control Agency, and Duluth Superior Area Community Foundation will lead project evaluation over the course of the grant. The overall organizational chart is included as Capacity – Figure 1. Capacity information on each general management partner was included in BigWaterMNROR-ExC-Capacity.pdf. (https://www.dropbox.com/s/r5ufqjeowtr1q11/BigWaterMNRoR-ExC-Capacity.pdf?dl=0).

MN Department of Employment and Economic Development project lead is Patrick Armon who has 16 years of experience managing CDBG grants.  Included in this experience are 4 years of experience managing $75 million with the DRGR (Disaster Recovery Grant Reporting System), 3 years managing $950,000 of 2008 storm recovery funds for mostly-Southern Minnesota, and 3 years of experience managing $5.5 million of American Recovery and Reinvestment Act (ARRA) funds. Lead finance staff is Jeff Lynch, Accounting Officer- Principal, who has worked in that role from 1997 flood recovery to the present.  Specific DEED-involved, recent disaster recovery activities have taken place in Wadena, MN as they recovered from a major tornado, and Northwest Minnesota’s efforts to mitigate and recover from frequent flooding of the Red River Valley.  Activities related to the recovery programs have included property buy-outs, public facilities, housing conversion, as well as commercial and housing rehabilitation. Project Lead: Patrick Armon  References: 1) Lee Meier,  Northwest Minnesota Multi-County HRA, 205 Garfield Ave, Mentor, MN 56736, lee@nwmnhra.org, 218.637.2431 for flood mitigation in Northwest Minnesota and 2) Michele Smith, 920 Second Ave S, Suite 1300, Minneapolis, MN 55402, michele.k.smith@hud.gov, Community Development and Planning, HUD/Minneapolis, phone 612.370.3019 x2107.

City of Duluth- After the flood in June 2012, the City of Duluth worked with the Minnesota Department of Natural Resources and the Department of Homeland Security and Emergency Management and received a total of $3.5 million to acquire homes that were substantially damaged in the flood and demolish the structures.  To date the city has purchased 21 properties and is finalizing the purchases of two more for a total of 23 properties.  These funds and most work was administered by city staff including, homeowner interfacing, property purchases, and contractor procurement.  The city used contractors to complete hazardous material abatement and demolition work.  City departments involved included, finance, attorney, planning and construction services, and property and facilities management. The City will play the same role in the anticipated buyout of 25 additional properties with NDRC funds (NN 1.1). Project Lead:  Keith Hamre  Reference: Pat Lynch, DNR, Box 32, 500 Lafayette Rd, St. Paul, MN 55155-1032, pat.lynch@state.mn.us, 651.259.5691

Duluth LISC has coordinated and implemented the At Home in Duluth Neighborhood Revitalization plans, administered HUD Section 4 capacity building program funds, provided predevelopment funds for new development, administered Duluth At Work and federal Financial Opportunity Center funds, and assisted in bringing Housing Tax credit and New markets Tax Credit funds to the community. Duluth LISC has been in operation for 17 years resulting in over $76.2 million in LISC funds invested in Duluth’s neighorhoods, homes, service providers and businesses. Duluth LISC will provide revitalization coordination with neighborhood businesses (NN 1.6), acquisition funds (NN 1.9), and community engagement leadership. Duluth LISC is a program of the nation’s largest community development intermediary. Project Lead: Pam Kramer  Reference: Rick Ball, 3229 Minnesota Avenue, Duluth, MN 55802, rball@duluthhousing.org, 218.348.1953.

Ecolibrium3 has lead application preparation for NDRC and has established several successful programs to increase resilience in the State of Minnesota including the Duluth Energy Efficiency Program which completed 326 home retrofits during a 3-year EPA Climate Showcase Communities project and is currently advancing solar development through a DOE Solar Market Pathways grant. Ecolibrium3 will serve as a general management partner, coordinating with partners and serving as community liaison. Ecolibrium3 will also participate in (NN 1.2) as a member of the Housing Resource Connection, will coordinate resilient home development (NN 1.8), and lead the solar and business energy efficiency program (II 3.10), partnering with other NDRC projects. Project Lead: Jodi Slick  Reference: Andrea Denny, 1200 Pennsylvania Ave NW, Washington, DC 20004, US EPA, denny.andrea@epa.gov

Arrowhead Economic Opportunities Agency (AEOA) is the northeast Minnesota Community Action Program agency delivering transit, Head Start, housing, senior, job training, and weatherization services through 350 full- and part-time employees to seven counties. AEOA is one of five partners in the Housing Resource Connection (HRC) providing one-stop housing rehabilitation services in the City of Duluth. AEOA will provide energy services to households participating in the Residential Resilient Recovery & Rehabilitation (4R) program (NN 1.2) with HRC partners Ecolibrium3, Duluth HRA, 1Roof Community Housing, and the City of Duluth. AEOA served as a program administrator for post-disaster QuickStart loans from the MN Housing Finance Agency and administers the Weatherization Assistance Program. Project Lead: David Johnson  Reference: Marilou Cheple, MN Department of Commerce, 85 7th Place E, Suite 500, St. Paul, MN 55101, marilou.cheple@state.mn.us, 651.297.4673 

Duluth Housing & Redevelopment Authority (HRA) is the public housing agency for Duluth. The HRA will serve as main rehabilitation lead for the 4R (NN 1.2) program including managing loan funds, conducting inspections, developing scopes of work, and applying Healthy Homes criteria to projects. The HRA will also conduct relocation activities for any affected parties (NN 1.1, NN 1.4, NN 1.9), provide lots in a HOPE VI redevelopment for demonstrating resilient housing (NN 1.8), and acquisition services for (NN 1.9). The HRA operates numerous housing rehab programs:  Single family rehab; Multi-unit rehab; and MURL and NSP home ownership programs.  The HRA manages funding from the City of Duluth, the State of Minnesota (MHFA and GMHF), and the Federal Department of Housing and Urban Development.  The HRA assists approximately 150 households per year, has coordinated 61 resident relocations and 4 business relocations in the past 6 years, redeveloped 117 units, has acted as a catalyst for significant mixed-income development through HOPE VI, and has assisted in avoiding the foreclosure on 154 units of low-income housing at the Gateway Tower building. Project Lead: Jill Knutson-Kaske, MPH, Executive Director Reference: Keith Hamre,Director, Department of Planning and Construction Services, 411 W. 1st St., Room 208, Duluth, MN 55802; khamre@duluthmn.gov; 218-730-5297.

American Indian Community Housing Organization (AICHO) has completed an $8 million historic energy efficient renovation of a former YWCA into 29 units of affordable housing and an American Indian Center. Renovation included state and federal tax credits, 1602 funds, and multiple federal, state, tribal, and foundation sources. The project is fully leased with formerly homeless individuals and families. Within the last 3 years, AICHO has purchased the attached building and converted it into commercial offices, day care center, rooftop garden, and coffee shop. They will serve as developer and owner of mixed-use building in Lincoln Park, creating 10 units of housing for low-income households and revitalized commercial space (NN 1.3). Project Lead: Michelle LeBeau  Reference: Rick Smith, MN Housing, 400 Sibley St., Suite 300, St. Paul, MN 55101, Rick.Smith@state.mn.gov, 763.229.9440

Boisclair Corporation will serve as developer and owner for the Historic Armory Adaptive Reuse project (NN 1.10) which includes historic preservation of the Duluth Armory for commercial space and new construction of a 48 unit (40/60) housing project built to LEED and MN Green Communities standards. Since 1974, Boisclair has been on the forefront of real estate development and construction in the areas of multi-family housing, commercial, office and retail space. Their projects include the first demonstration of Section 8 leased subsidized housing (1974) to the internationally recognized mixed-used Riverplace development in Minneapolis ($120 Million). Boisclair is a 100% woman owned S corporation. Project Lead: Lori Boisclair Reference:  Scott Fedie, Associated Bank, National Association Commercial Real Estate Division, 45 S. 7th St, Suite 2900, Minneapolis, MN 55402, scott.fedie@associatedbank.com, 612.359.4432

Sherman Associates will add 25 low-income and 25 market rate units to replace lost housing through the adaptive reuse of the Nettleton School (NN 1.7). They will serve as developers and owners of the completed project. In 2015 they completed a similar project, Rayette Lofts, in St. Paul, MN with 88 units that blended historic brick with modern finishes. This $25 million project included federal and state historic tax credits, Met Council TBRA and TOD funds, a first mortgage and owner equity. Project Lead: Paul Keenan

1Roof Community Housing led the development of Steve O’Neil Apartments (2014) consisting of 44 units of permanent supportive housing and 6 units of emergency shelter for homeless families with dependent children. As co-developer, 1Roof negotiated the purchase of 7 parcels (6 owners), led the development team and fundraising, pre-development work including Phase 1 and 2 reviews and environmental clean-up, and managed construction and closeout. This project just received the first Energy Star certification for a new construction multifamily high rise in Minnesota. 1Roof will lead redevelopment of the Esmond building (NN 1.4) and serve a co-developer on the 4th Street property (NN 1.9). As a NeighborWorks agency and partners in the HRC (see AEOA), they will administer the amortizing loan portion of (NN 1.2). Rehab Lead: Cliff Knettel  Redevelopment Lead: Jeff Corey  Reference: Warren Hanson, Greater Minnesota Housing Fund, 332 Minnesota St, #1201, St. Paul, MN 55101, whanson@gmhf.com, 651.221.1997 x107

Center City Housing will develop and build 50 units of supportive affordable housing for three of the most fragile and vulnerable sectors in Minnesota- people who are presently homeless, those at high risk of becoming homeless and those living in unsafe substandard housing (NN 1.5). The modest 1-bedroom apartments will be in a handicapped accessible building with 24/7 staff  and supportive services utilizing “housing first” principals. Center City Housing co-developed the Steve O’Neil Apartments (see 1Roof), owns the building and operates the supportive components. Project Lead: Rick Klun  Reference: Warren Hanson, Greater Minnesota Housing Fund, 332 Minnesota St, #1201, St. Paul, MN 55101, whanson@gmhf.com, 651.221.1997 x107

University of Minnesota Cold Climate Housing Program (UMCCHP) specializes in Research and demonstration of high performance residential construction in partnership with the Department of Energy Building America research program. UMCCHP designed, tested and measured homes that are energy efficient, healthy, durable, and affordable and have partnered with non-profit housing organizations to field test designs while offering affordable alternatives. A major project has been developing a home building (single family and multifamily) frame/structure that is stronger and less costly than convention stud framing appropriate to all regions in the US.UMCCHP will partner with Ecolibrium3, NRRI, and the HRA on 10 resilient demonstration housing (NN 1.8) units as design and evaluation lead. Project Lead: Pat Huelman  Reference: Dave Bohac, Center for Energy and Environment, 212 Third Avenue North, Suite 560, Minneapolis, MN 55401, dbohac@mncee.org, 612.802.1697

Northeast Entrepreneur Fund The Entrepreneur Fund has worked with clients who have undergone distress from natural disasters and worked with them to get their business back on track. Natural disasters include: 2007 – Ham Lake Fire on the Gunflint Trail 2012 – Floods in Duluth 2015 – Tornados in Brainerd Lakes area. Our most recent example was with Syvantis Technologies in Brainerd. Syvantis is a national technology and accounting service firm in Brainerd, MN. After the 2015 tornado, the Entrepreneur Fund quickly deployed a small loan to provide working capital to clear the property, pay staff, get servers back on track, and resume regular business operations. The result was that all staff were able to maintain employment and the business was able to operate with minimal disruption less than 1 week following the disaster. Beyond reacting to disasters, the Entrepreneur Fund provides small businesses to be proactive in improving resiliency in the following ways: 1. Creating a disaster plan. Our consulting services and Be Strategic: Grow Your Business program provides a concise and simple training to store data on servers, take pictures of assets, store critical data off-sight, and have lines of communication set up in the event of a disaster. 2. Growing markets outside of the region. A key to business strength is diversity in income streams outside of our region. The northeast region of Minnesota is fraught with deeply cyclical economies – mining, paper industries, tourism (weather related), and others. The Entrepreneur Fund provides programs (Economic Gardening, Be Strategic: Grow Your Business) to identify and pursue outside markets. In the case of Syvantis, if her customers were based in Brainerd they would have been down for business even longer if all of their customers were recovering from the damage as well. The Entrepreneur Fund will lead neighborhood resilience and revitalization efforts as the primary lender and service provider for the Revitalization Fund target at revitalizing the lowest income neighborhood in the MID-URN (NN 1.6). Project Lead: Mike Lattery  Reference: Janell Riley, Syvantis Technologies, 13760 Bluestem Court, Suite,150, Baxter, MN 56425, Janelle.riley@syvantis.com, 218.822.5701

Community Action Duluth Stream Corps is a transitional jobs program for under and unemployed individuals. Stream Corps completed trail restoration projects in Duluth parks after the 2012 flood, built rain gardens and has completed a 3 year project planting trees to reduce erosion along Duluth Streams. Their work includes a 4 year track record with numerous partners including City of Duluth, individual landowners, and the Duluth Public Schools. Through 2014, they have 18,000+ trees planted, 33 rain gardens, bioswales and rain barrels installed, 8 acres of invasive species removed, 175 landowners involved, 22 miles of stream shore enhanced/restored, 2 acres native grasses and wildflowers planted, 14 people employed and trained through Great Lakes Restoration Initiative funding exceeding $680,000. Successfully managed the funding and exceeded outcomes. In addition, CAD launched a Financial Opportunity Center in 2011 utilizing a Federal Social Innovations Grant from Duluth LISC to provide a bundled service model to increase financial stability of low income people. FOC outcomes through 2014 include: 214 people obtained employment ($10.67 average wage), 240 people increased Credit Score (average of 52 points), 196 people increased net Income (average of $505/month), 194 people increased net worth (average of $7,338), 246 people enrolled in work supports (total of $287,092). The Stream Corps will provide environmental services similar to above as part of projects (NN 1.2, CC 2.1, 2.4-2.6, 2.8, II 3.1, 3.3-3.9) and offer wrap around financial services to participants. Project Lead: Angie Miller  Reference: Brian Frederickson, MPCA, 525 Lake Avenue South, Suite 400, Duluth, MN 55802, brian.frederickson@state.mn.us, 218.723.4663 

Minnesota Pollution Control Agency played the role of first responder during, and in the aftermath of, the qualifying disaster including identifying potential hazards, working with waste-water plant operators, employing and overseeing clean up contractors, sampling water quality and providing public information. Once the emergency receded in intensity, agency staff helped document impacts to streams, bridges and infrastructure. Agency staff continue to be involved in the rehabilitation of the St. Louis River and area streams. The agency is involved in a multiple stakeholder project on Knowlton Creek and worked on documenting impacts to Kingsbury and Mission Creek. As part of an overall project focused on the condition of watersheds in the urban area, the agency also funded a bed sampling site on Mission Creek and installed six new stream flow gauge sites, four of which are in the project area. These stream flow gauge sites will provide data to calibrate a sophisticated watershed model that can be used to predict flood peaks and stream response to a range of precipitation conditions expected with a changing climate. The agency and its staff are involved in a range of projects that run the gamut from site remediation and construction to soft solutions involving policy development, behavior change and environmental education and civic engagement. One example of a construction project managed by the agency is the rehabilitation of a mile long section of the lower Flute Reed River in Cook County, Minnesota. This project was funded by a $540,000 Great Lakes Restoration Initiative grant. It was recognized by EPA as a model for community collaboration. The MPCA will lead a collaborative permitting process for stream and wetland projects included in the NDRC application (II 3.1-3.9). As coordinators of the MN’s Climate Adaptation Team, the MPCA will also participate in ongoing project evaluation and best practice distribution. Evaluation Lead: Paul Moss Stream Project Lead: Bryan Frederickson  Reference: Alex Schusler, Great Lakes Restoration Initiative, U.S. EPA, Region 5, Water Division Schusler, Alex@epa.gov, 312.886.1977City of Duluth- Engineering will lead several stormwater management projects including the development of green infrastructure (II 3.1-3.9) and bridge installations to reestablish floodplains. After the June 2012 flood City of Duluth Engineering completed 100s of projects with funding from FEMA, MnDOT State Aid Transportation, and the Board of water and Soil Resources including repairomg/replacing flood damaged infrastructure – utilities, roadway and bridges, and providing stream/slope stabilization. The projects generated from the flood required many similar activities to NDRC propose projects including damage identification, assessment, documentation, prioritization of work and assignment of design/correction. Engineering completed projects where work was done in-house and/or managed contracts including procurement processes involving Request for Proposals/bids, council approval, contractual obligations, proper documentation for construction activities, safety, pay requests, close outs. The NDRC projects will follow this model with the addition of a Minority Opportunities Officer assisting with affirmative marketing to WBE/MBE. Project Lead: Jim Benning  Reference: John McDonald, District 1 State Aid Engineer, 1123 Mesaba Ave, Duluth, MN 55811, John.p.mcdonald@state.mn.us, 218.725.2705

Ever-Green Energy provides operations, project development, and management services to the Energy Park Utility Company (EPUC), which is owned by the Saint Paul Port Authority. EPUC is the energy utility that serves the 218-acre Energy Park community in Saint Paul, MN. The system was initially constructed using two-pipes to deliver either heating or cooling to the buildings. Although useful and cost-effective during initial service, this severely limited the services to the buildings and made the system less reliable and more vulnerable to weather events. In order to resolve these limitations, modernize the system, and improve energy efficiency, the system was upgraded to a four-pipe distribution system in 2013 by Ever-Green. This upgrade included central plant conversion, distribution changes, and customer building conversions. Ever-Green will complete a similar system conversion on the flood-affected downtown district heating system in Duluth (II 3.12), serving as the system manager. Project Lead: Jim Green  Reference: Louis Jambois, St. Paul Port Authority, 380 St. Peter St., St. Paul, MN 55102, lfj@sppa.com, 651.204.6233

RREAL managed a multi-year, federally-funded statewide ARRA project called Sustainable Energy Resources for Consumers where they managed a cross-disciplinary, multi-stakeholder low-income, regional clean energy project. In addition to installation work, RREAL led the training of contractors from 9 community action agencies across the state in the site assessment, design, procurement, installation, and client education for 250 residential solar energy systems. This project was completed in partnership with the MN Department of Commerce’s Division of Energy Resources. RREAL will coordinate development of solar projects in partnership with Ecolibrium3 and the City of Duluth (II 3.10). Project Lead: Jason Edens  Reference: Cheryal Lee Hills, Region 5 Development Commission, 200 1st St NW #2, Staples, MN 56479, chills@regionfive.org, 218.894.3233 x1

Minnesota’s approach to comprehensive disaster recovery included identification of risks and vulnerabilities, ongoing stressors, state and local community development objectives, and our Phase 1 Minnesota Formula for Comprehensive Community Resilience. Our Phase 1 framing indicated that to build a resilient community we must co-develop strategies along five layers including housing, the economy, resource management, energy, and health. It also indicated a thought process for analyzing what would be the strongest approaches.

Our Phase 2 project selection approach included the following steps which were iterated recursively by a wide group of stakeholders. The process included:

  1. Identification of unmet needs and existing vulnerabilities and stressors– Although our Phase 1 application identified this for the MID-URN, as we moved into Phase 2 we realized that this conversation needed to expand outward to a larger geography and broader stakeholder group. At the same time, our outreach also became more granular to be especially responsive to vulnerable populations and flood-affected individuals and businesses. Meeting people where they are, including hearing the anger, frustration, and fears related to incomplete recovery, post-disaster social/financial situations, and disappointment with current opportunities to advance their resilience, was a powerful tool in helping shape priorities for the application, as well as for informing approaches to future disaster response and recovery in the state. Additional perspective and data learned through these sessions, and further research with partner organizations, are included in Exhibit D- Need.

We also realized that often “one doesn’t know what one doesn’t know.” To avoid missing key factors or approaches, we hosted sessions with regional, national, and international participants which included rapid iteration work done as part of DredgeFest Great Lakes (government agencies, designers, theorists, academics, industry experts, students, public) and a week-long national Urban Land Institute Resilience panel to help us think through strategies for resilience in the MID-URN’s lowest-income neighborhood. Our multi-stakeholder Resilience Steering Committee also assisted in providing local, state, and national context to each of our resilience layers during a half-day design session.

  1. Identification of potential solutions- We began development of potential solutions to unmet needs and ongoing risks and stressors in a variety of ways. At the beginning of April we created a Request for Information and a Request for Knowledge process. The RFI/RFK process sought to educate a wide audience on the impacts of disasters in Minnesota and our ongoing climate risks, inform individuals and organizations about the opportunity provided through the National Disaster Resilience Competition to build community resilience, and solicit potential solutions and/or projects. We received over 100 potential project submissions from as far away as New York and New Orleans, with many coming from community organizations active in the MID-URN. Those responding to the RFI were asked to develop potential activities or projects that could be included in a Phase 2 application that addressed unmet needs or community development objectives. The RFK created an opportunity for local residents, to national technical experts, to submit their ideas for building resilience without having to have a particular project or associated implementation capacity. This again allowed for us to identify what we didn’t know. An example included information from a Minnesota Pollution Control Agency staff member that wanted to make sure that no matter what we considered for potential solutions, we included a focus on “antecedent soil moisture conditions.” Upon review of the submissions, a member of the Resilience Steering Committee commented, “That makes perfect sense, but it wouldn’t have hit my top 100 of things to pay attention to even though every time I talk about the disaster (qualifying) I tell people it wouldn’t have been so bad if the 12” of rain hadn’t fallen on already saturated soils.”

The RFI/RFK process served as a starting point for identifying potential solutions. The Resilience Steering committee then discussed the merits of various approaches and anticipated project outcomes. The RFI process identified potential project partners with appropriate capacity to complete work, outcomes that were in alignment with needs expressed in our Phase 1 application, and opportunities to create model programs or projects. Where gaps were identified, partners and projects were sought out.

  1. Determination of outcomes and maximization of co-benefits- Our initial process included looking at potential outcomes and co-benefits from two different perspectives. The first was looking from the unmet needs and vulnerabilities perspective with a MID-URN focus, determining what outcomes would advance resilience, and then selecting strategies that met those outcomes. The second was to start with the proposed strategies, analyze them for their potential to create resilience, and then “add up” the potential outcomes and co-benefits. Different methods were used during the evolution of the projects and with different audiences. In the end, the overall portfolio of activities developed from a hybrid approach. Definition was given to the areas of greatest need, the scope and scale of those needs, and the hoped for outcomes. Approaches were then selected based on the ability to influence multiple layers of resilience, impact on vulnerable populations, and transformative potential toward resilience. These were then tempered by availability of partners, capacity, and technical feasibility. In some cases, partners were intentionally sought out to create desired co-benefits or activity scopes were expanded to multiply resilience benefits or create projects with greater applicability state-wide.
  2. Developing the “Ripples of Resilience”- Our final step was to analyze each activity, each larger project, and the entire approach for potential “Ripples.” This too proceeded on multiple levels. At the most basic it was examining how each individual activity could be a best practice or model adoptable elsewhere. At a more complex level, it involved determining what policies or larger state/regional approaches were needed to successfully achieve NDRC outcomes, and in turn influence resilience at a larger scale. During these conversations the idea of “rippling in” also developed. This was reversing the image we had used regarding the larger impact of our projects by recognizing the same set of concentric circles can mean the gathering of best practices from a larger geography and/or multiple sectors and successfully adapting them for maximum impact at a community or project-level. As the Minnesota team iterated through these steps with an increasing number of people, it became clear that there were definitely places where inspiration could meet hard practicalities and we could affect “bouncing forward” instead of just “bouncing back.”

From the beginning with our multi-layered resilience framing, we’ve recognized that resilience is a very complex problem. In our Phase 1 framing, we posited that exploring this complexity at a small scale would result in a more holistic solution where outcomes synergistically build resilience. We also believed that the approach itself could inform how the state and region advance resilience. Perhaps naively, we expected that moving on to a project-level conversation would make it easier to discuss this complexity as it would be grounded in tangible projects. We have not found that to be the case. Instead we have found that the easiest narrative and actions would indeed produce positive outcomes, but pale in comparison to a more complex, more diverse, more difficult interweaving of activities across the five layers of resilience, across sectors and geographies, across populations, and across time.

We think resilience is complex work if done correctly. Our activities follow the principle of resilience by not just repairing damage, but trying to understand and fix why the damage occurred. We’ve asked not only how to make our physical and metaphorical house more resilient, but how we can accomplish resilience for our household too. Although each activity starts solidly in the realm of economic, environmental, or social resilience, each activity was designed to find the most beneficial overlap of resilience outcomes.

The NDRC process allowed us to “shine the light” on unmet recovery needs and ongoing vulnerabilities that if not addressed put our state and its residents at continuing risk. The Minnesota project recognizes that residents with stable housing and financial resources are able to recover faster from disasters, that we need a more thoughtful approach to infrastructure in Minnesota, and that there is great value for resilience in deliberately building social cohesion in our communities.

The three interwoven components of the State of Minnesota projects address:

  1. Neighborhood Needs: Remove, Repair, Reuse, & Revitalize– This component focuses on unmet recovery needs related to housing. Four strategies were developed to address housing needs including: 1) buyouts of properties that remain at-risk for damage from future events, 2) a resilient rehabilitation program to help homeowners and small rental properties complete repairs, address the causes of their initial damage, and build future climate resilience, 3) adaptive reuse of structures to address housing quality and availability issues, and 4) neighborhood revitalization activities including small business support and mixed-use new construction to create greater economic opportunities for residents in LMI neighborhoods. In each housing activity is designed to also advance economic stability of occupants through affordability components, address water management and ongoing hazards, address energy efficiency, and resident health. Specifically, this project will:
  • Remove 25 at-risk homes, resiliently repair 250 homes, adaptively reuse 4 historic structures (133 mixed-income units), and demonstrate resilient housing models with micro-manufacturing to replace lost housing from the June 2012 floods.
  • Revitalize low-income neighborhood commercial corridors through a Small Business Resilience Revitalization fund and development of 2 new housing projects (50-unit supportive housing project & 150 mixed-use development).
  1. Connecting Communities: Nature, Nurture, and Net- The final component starts from unrepaired damage to community green space and gathering facilities. It focuses on 1) repairing parks and trails damage in a way that creates greater opportunity to commune with nature for the physical and mental health of our residents, 2) rebuilding community space lost during the flood in a way that is more responsive to neighborhood needs, and 3) develops community-based wifi nodes in the rebuilt community space to allow expanded access to low-income residents.
  • Repair and remediate 72 acres of park and 55 miles of trails connecting LMI neighborhoods
  • Serve 18,000 LMI residents through relocated and expanded community gathering facilities
  1. Infrastructure Investments: Retain, Redirect, & Renew[able]- This component addresses unmet recovery needs to community infrastructure with a more holistic resilient approach. The two areas of focus include: 1) how water flows through our communities and the relative role of green and gray infrastructure in the larger system, and 2) adequacy and resilience of Minnesota energy systems in a changing climate.
  • Implement green infrastructure strategies including extended detention wetlands & reestablishment of natural floodplains.
  • Develop resilient power demonstration projects and modify the flood-affected district heat distribution system to provide long-term resilience, greater efficiency, and opportunity for conversion to locally derived biomass instead of coal.

Through these components, Minnesota will develop its main resilience value of maximizing social, economic, and environmental resilience in the MID-URN through smart recovery and flood reduction strategies, and inform resiliency approaches for the entire state. We will also accomplish the following:

  1. Reduced exposure to potential economic shocks through stabilizing housing and energy costs, & development of economic opportunities for under-represented populations and small businesses (economic value)
  • Provide healthy, affordable , energy efficient housing to 600 households through adaptive reuse, rehabilitation, and new construction.
  • Integrate transitional and career-pathway job development, and entrepreneurial  opportunities for LMI and minority populations into NDRC activities that extend beyond the grant timeline
  1. Reduce contribution to, and impacts from, anticipated climate change (environmental value)
  • Improve water quality in 15 trout streams while attenuating flooding in downstream neighborhoods
  • Develop 2.5 MW of renewable energy for critical systems and social infrastructure, and reduce carbon by 10,000 tons of carbon per year (includes efficiency measures)
  1. Increase access to quality green space and community amenities adjacent to low- and moderate-income neighborhoods and develop greater connection between neighborhoods (social value)
  • Repair and remediate 72 acres of park and 55 miles of trails connecting LMI neighborhoods
  • Serve 18,000 LMI residents through relocated and expanded community gathering facilities

Although much of our narrative will be broken into these three components, this is for ease of communication and does not represent an ability to silo each area as they are all interdependent. For example, projects “above the bluff” on Miller Creek that include remeandering the creek, expanding back to a more natural floodplain by replacing box culverts with bridges, and partnering with private property owners to detain water will be discussed as infrastructure activities. These are important measures to reducing flows downstream in Duluth’s lowest income neighborhood, Lincoln Park. Employing water management strategies upstream will protect investments in housing repair and rehabilitation, in parks and trails work, and in the commercial corridor.

1.               Neighborhood Needs

To address unmet housing and economy needs, there are ten proposed activities:

1.1     Buyouts (Q1-8)- The project will include the voluntary acquisition and demolition of homes and businesses that are located in the floodway and flood fringe of the St. Louis River, as well as, properties located throughout neighborhoods that were damaged during the 2012 flood or that are in areas that could be flooded in future events. Properties will be acquired by the city; all structures will be permanently removed. The priority area for buyouts is the Fond du Lac neighborhood in Duluth which suffers from frequent flooding due to its location on the St. Louis River. The secondary target for buyouts include homes scattered throughout the MID-URN that are affected by flooding from vertical waterways or were built on historic stormwater infrastructure where the cost of buyout is less than the project cost associated with repair/replacing infrastructure with the home still present. Neighborhood meetings and property identification(Q1-2), environmental reviews, purchase agreements (Q2-5), pre-demolition hazardous materials assessments, contractor procurement (Q4-6), demolition & site remediation(Q5-8).

1.2     Residential Resilient Recovery & Rehabilitation Fund (Q1-12)- In order to complete recovery at the household level, additional resources are needed. The Residential Resilient Recovery and Rehabilitation Fund will provide homeowners and small landlords with a one-stop shop experience and bundling of financial resources to complete recovery needs and build resilience. The fund will provide different tools based upon resilience needs and household income with grants and forgiveable, deferred, and amortizing loans. Each property will be assessed for recovery and resilience needs, a scope of work will be developed to include Healthy Homes criteria, increased energy efficiency, and bulk water management best practices. The fund will be administered by the Housing Resource Connection, a multi-agency partnership that seeks to serve residents by connecting them to the right resources to accomplish their housing rehabilitation. After surveying flood affected properties, it has been shown that unmet needs extend throughout the MID-URN. In addition to offering cross-MID-URN services, fund partners will create a special target area for historic rehabilitation in the Morgan Park neighborhood an investment that will be supported through stormwater management that protects the neighborhood from being cut off during the next event (activity 3.3). The State will use this approach in the MID-URN to inform future disaster recovery programming. Marketing and process development (Q1), home inspections, scope development, procurement, loan closings, construction (Q2-12).

1.3     American Indian Housing & Commercial Redevelopment (Q1-8)- Redevelopment of 2301 W. Superior Street in the Lincoln Park neighborhood into a mixed-use development including an eco-laundry, coffee shop, and gallery. Currently the building is blighted with no housing occupancy. This activity would provide additional subsidized units for low-income individuals, create job training and employment opportunities, and create a new source of income for the non-profit partner which will then be re-invested back into the community. Creating a gallery/retail center for Native artists will also create a venue for community members to sell their work and become more self-sufficient. Funding would also be used to install site-based water management at AICHO’s flood-affected transitional housing project. This project will proceed in two phases: 1) commercial space revitalization and business development (Q1-4), and 2) housing redevelopment (Q3-8).

1.4    Esmond Housing & Commercial Redevelopment (Q1-Q12)- The former Seaway Hotel, now referred to as the Esmond, incurred significant damage from water during the 2012 rain event/flood. The building houses 65 extremely low income and vulnerable adults (many in efficiency units) and was not in good condition prior to the flood with all systems (interior and exterior) needing updating. The building was owned by an entity that managed it in a way that deteriorated the building and jeopardized the safety (in terms of both health and crime) of residents.  At the time of the flood, the building was at risk of being closed due to lack of code compliance for repairs.  The flood brought the crisis that had been building for many years to a head because the exterior deterioration of the building in terms of water management failed and water began pouring into the interior, causing immediate damage and then mold and air quality issues.  Realizing that the vulnerable, low income people in the building were at risk of displacement, community organizations stepped up to improve the situation. The proposed activity would be to redevelop the blighted property after creating new supportive housing for current tenants (1.5). The redevelopment would include 25 1-bedroom apartments affordable to Duluth’s LMI workforce. This was a critical site determined by the Urban Land Institute visit for anchoring revitalization of the Lincoln Park Commercial Corridor. The redevelop will also include rehabilitating commercial space on the first floor. Due to the connection with other housing development, this project will proceed in two-phases: 1) commercial space revitalization (Q1-8), and 2) housing rehabilitation (Q7-12).

1.5     Supportive Housing New Development (Q1-7)- The 2012 flood pointed out the precariousness of housing situations for many in Minnesota. In addition to the residents living in structures like the former Seaway Hotel, individuals experiencing homelessness at the time of a disaster were the most vulnerable and silent part of our society. Homelessness in Minnesota, while being proactively addressed, continues to grow at a faster pace than local affordable housing efforts can keep up with, given our extremely harsh climate and unforgiving geography/geology. This sector of Minnesota’s citizenry is always at high risk of devastation and even death when disasters occur. Center City Housing Corp. will develop and build 50 units of affordable housing for single adults in Duluth. The housing proposed will serve three of the most fragile and vulnerable populations – people who are presently homeless, those who and are at high risk of becoming homeless and those living in unsafe substandard housing. This activity will develop and build 50 modest 1-bedroom apartments in a single handicapped accessible building that will have a 24/7 staff presence and supportive services utilizing “housing first” principals. Property acquisition (Q1), brownfields remediation and permitting (Q2), and construction (Q3-7).

1.6     Lincoln Park Commercial Revitalization (Q1-12)- As the lowest-income neighborhood in the MID-URN, Lincoln Park has faced decades of disinvestment and decline. With a new vision of becoming a Crafter-district and old and new businesses poised to invest in the building stock, the opportunity exists to create living-wage neighborhood employment opportunities and reduce blight. Under this activity, the Entrepreneur Fund and Duluth LISC will spur private investment by businesses who can’t meet traditional bank collateral requirements due to the existing building values in the neighborhood. A revitalization fund will eliminate structural barriers to investment in the neighborhood and support early adopters in this emerging district through a low-interest loan fund and additional leveraged resources. Funded businesses will participate in business district revitalization and neighborhood jobs partnership. Underwriting standards (Q1), business recruitment (Q1-6), loan closings (Q2-8), construction (Q2-12).

1.7     Nettleton School Adaptive Reuse (Q1-6)- The Nettleton School Adaptive Reuse Project will help meet the demand for additional mixed-income housing units in downtown Duluth. In June of 2012, the Hillside Neighborhood of Duluth experienced significant flooding. Due to its location and terrain, the neighborhood was greatly impacted by flood waters which caused mudslides, severe water penetration and damage to many structures throughout the community including the loss of housing units. The project will add 24 units of affordable housing for households at or below 60% AMI, and add 26 units of market rate housing to a predominantly low and very-low income neighborhood by adaptively reusing a school on the upper part of the hill. The increase in housing diversity will benefit the local community, improve overall neighborhood stability, and increase downtown Duluth viability. Permitting, procurement, environmental review (Q1-2), construction and lease-up (Q3-6).

1.8     Resilient Demonstration Housing with Micro-Manufacturing (Q1-12)- Of all the Minnesota cities, Duluth was hardest hit during the rust belt decline of the 80’s and 90’s. This resulted in little new construction over the span of thirty years. Other places in Minnesota have seen greater levels of new construction during this time period. As a state, we must address our old housing stock, but we must also model resilient new construction. This project will develop new housing units at Duluth’s HOPE VI Harbor Highlands development. In partnership with the University of Minnesota and the Natural Resources Research Institute, homes engineered for resilience in all climates will be constructed. An important component to this activity is the development of centralized engineering and designed manufacturing processes that can be then be distributed to micro-factories. A ripple to this approach is co-developing economic opportunities in communities that lack housing by supporting local home manufacturing and job creation. The resulting product can reduce development costs and long-term operations and maintenance of homes. Design and engineering approval, micro-factory installation (Q1-3), first 5 demonstration homes (Q4-7), design evaluation, additional design and engineering approval (Q8), construction second set of demonstration homes (Q9-12).

1.9     Mixed-use Redevelopment (Q1-Q12)- The City of Duluth has completed a Health District Revitalization plan that calls for acquisition and adaptive reuse of properties along E. 4th Street and 6th Ave E. This activity will acquire flood-affected properties for eventual reuse or redevelopment into mixed-use, mixed-income opportunities. The program developed for neighborhood revitalization would target the creation of 150 new or rehabbed housing units and rejuvenation of 10,000 square feet of commercial space. All construction would follow MN Green Communities Standards. Property acquisition, developer procurement (Q1), Phase 1 environmental review, plans, permitting and relocation (Q2-4), construction (Q5-12).

1.10    Historic Armory Adaptive Reuse (Q1-9)- The Duluth Armory is on the U.S Department of Interior’s National Register of Historic Places and is part of the Smithsonian’s virtual tour of places to see in the U.S. It functioned as a triage center and disaster recovery center for the 1918 Cloquet fire which was the worst disaster in Minnesota’s history. Unfortunately, after years of neglect and subsequent damage from the June 2012 floods, it has been condemned. With NDRC funding to address flood damage and support affordable housing development, the Armory will be repositioned into office, retail, art and culture center to include an art gallery housed with goods from local artists and tenants in the building, a celebrity tribute museum and a restaurant and music venue hub. It will also house the Armory Arts & Music Center, a nonprofit providing musical lessons and support to neighborhood LMI children. The contiguous site located within the Armory site plan will be home to 48 new construction apartment units.  40% of the units will be set-aside utilizing the Low Income Housing Tax Credit Program at 60% of Area median Income. Initial flood remediation has been completed and a structural review has shown the building to be in good shape, however the heating system remains unrepaired. Permitting, environmental review, development financing (Q1-3), Construction (Q4-9).

Connecting Communities

Low-income areas across the country, including the MID-URN neighborhoods in Duluth, suffer not only from the disproportionate presence of environmental contamination but also from the disproportionate absence of quality public green space. The MID-URN area contains over 2,500 brownfield sites due to past industrial development along the St. Louis River Corridor and lacks appropriate river access and high quality public green space for residents. Millions of dollars of unrepaired damage remains from the qualifying disaster (DR-4069) that cannot be addressed with existing resources in the sub-county target area. As stated by Duluth Mayor Don Ness, “There’s no question that if not for Lake Superior, Duluth would be defined as a river city. Duluth should be defined by both the world’s greatest lake AND the world’s greatest fresh water estuary. By doing so, we open up many possibilities along the River.”

During the 2012 flood event, Irving and Fond du Lac Parks lost their community centers, athletic fields, playgrounds and picnic areas. The cold water steams running through these parks and other Duluth parks, experienced significant to extreme bank erosion and riparian degradation. In order to build social cohesion in the MID-URN, especially along the River Corridor, Duluth has worked to define a new vision. The Minnesota project will help meet the goals of the St. Louis River Corridor Vision by supporting environmental restoration, enriching neighborhood quality of life, attracting new homebuyers, establishing new visitor destinations, and stimulating appropriate development by addressing unmet disaster needs. Stimulating neighborhood revitalization by repairing and enhancing nature in the river corridor is a main strategy for resilient recovery and will positively influence the social determinants of health for neighborhood residents.

Activities include:

2.1-      Fond du Lac Park (Q1-7)- Fond du Lac Park lost its community center during the June 2012 flood and suffered considerable damage to playground and picnic areas, and athletic fields. This activity would replace the community center with a pavilion, and relocate the athletic field away from the floodplain, creating long-term resilience by restoring flood prone areas to natural habitat that can help reduce flooding downstream. NPDS stormwater, fill, & building permits (Q1-2), construction and habitat restoration(Q7-primary,Q10-secondary).

2.2- Community Safe Rooms (Q-1-7)-  Located in the MID-URN area are three manufactured/mobile home parks that were variously affected by flooding. Each facility is currently out of compliance due to lack of community safe rooms. This activity would build safe rooms in partnership with property owners. The safe rooms will serve as community gathering space and serve as a node for community-based wifi. This approach will build greater safety during disasters, social cohesion, and access for information in extremely low-income housing areas. Design, permitting, procurement (Q1-2), construction (Q4-7).

2.3-     Fairmount Park (Q1-2)- Fairmont Park/Lake Superior Zoo is at the center of a large multi-neighborhood, CDBG-eligible area at the heart of the HUD Disaster Resilience target area. This area has fewer parks that are lower quality than other areas of the city. The Zoo suffered considerable financial loss and loss of animal life during the June 2012 disaster. A remaining unmet need is the demolition of the Polar Shores exhibit that was a total loss. Permitting, hazardous assessment, demolition (Q1-2).

2.4-     Cross-City & DWP Trails (Q1-Q8*)- The Cross City trail and the RR Rail Trail known as the DWP experienced over $5 million of unreimbursed trail damage as well as bridge damage over Knowlton, Sargent, and Stewart Creeks.  One flood-damaged trail bridge (former RR trestle) is over 130 years old needs to be demolished and replaced with a modern bridge that does not require piers located in the creek bed. This activity will not only repair flood damage, but will allow connection between LMI neighborhoods in the western portion of the MID-URN. NPDS stormwater, fill, & building permits (Q1-2), construction and habitat restoration(Q7-primary,Q10-secondary).

2.5-6-  Kingsbury Creek (2.5) & Keene Creek & Park (2.6) (Q1-Q7*)- Kingsbury and Keene Creeks both incurred $775,000 in unreimbursed flood damage that requires restoration of natural channels and riparian zones and reinforcement/replacement of historic stone foot bridges. These activities will provide this repair in a manner that adds attenuation of flows to reduce downstream damage, restores natural habitat, and adds trail and park amenities. NPDS stormwater, fill, & building permits (Q1-2), construction and habitat restoration(Q7-primary,Q10-secondary).

2.7-       Irving Fields (Q1-Q8)- This project includes restoring athletic fields, parkland and limited facilities in a park that was inundated with flood waters. The Irving Park athletic fields are a key resource for regional youth football leagues drawing hundreds of youth annually for FSA Football games. The community center that was destroyed during the flood will be relocated from Irving Park to a more centralized location (CC 2.8). In addition to the field work, stream channel and riparian zone restoration will occur. Permitting, design (Q1-2), construction and stream restoration (Q3-6).

2.8-      Memorial Park Community Center (Q1-Q10)- Under NDRC the City will relocated a flood damaged and subsequently demolished community center out of the floodplain. The new site will be central to three CDBG-eligible neighborhoods that lack a community centers. The community center design will evolve to provide comprehensive services including meeting space for neighbors, fitness and wellness activities, out-of-school-time programming, and parent education. Memorial adjoins Laura MacArther Elementary School, serving a diverse and low income population (Free & Reduced Lunch rate of 77%) The park is central to the west Duluth business district which facilitates easy access to additional services, is on a bus line, and close to freeway access.  West Duluth is populated by many small, community-owned businesses that currently support the vulnerable populations through mentoring, internships, and the like. Community meetings and design phase (Q1-3), plans and permitting (Q4), construction (Q5-10).

2.9-      Lincoln Park (Q1-8*) – Lincoln Park (the park, not the neighborhood) experienced approximately $1.6 M of damage to trails and grounds that was not funded by FEMA.  The Miller Creek has been channelized through the park, and otherwise altered over the years. The flood blew out many of the channel walls and scoured the adjacent trails and parkland. This activity will repair the remaining damage while improving park quality through neighborhood participation in a master planning process. Due to historic bridges and stream walls, EAW and SHPO review is needed.  *A secondary target date has been established due to work being located in a trout stream. Community meetings and design phase (Q1-3), plans and permitting (Q4), construction (Q5-10*).

Infrastructure Investments

3.1-      Mission Creek Stabilization (Q1-Q6)- The project is part of a larger plan to reduce flooding risks to the Fond Du Lac neighborhood.  The project is to re-establish a natural stream channel /floodplain channel above TH23 and below West 9th Street. The neighborhood experienced heavy damage as part of the 2012 flood.  The stream section directly above this section is being designed for restoration by the SWCD/DNR, and the MnDOT highway bridge at TH23 (at the downstream limit of this proposed activity), is being rebuilt to achieve higher capacity and debris passage during high flow events.  This activity will coordinate with NN 1.1 Buyouts to remove homes that were impacted during the flood on the eastern side of the creek so that an easterly remeander, and a westerly slope stabilization, can occur. The restoration of Mission Creek will create a natural stream channel with sinuosity and a floodplain that will have capacity to pass high flows, resulting in a durable stream system that is resilient to flooding.  With homes removed from the proposed floodplain, the risk to life and property is greatly diminished.  This concept is common to reestablish a stream corridor free of structures and rebuilding capacity for flow. This investment will help protect new bridge work as well as restore natural fisheries habitat in a trout stream. The project site is unique and alternatives to stream channel restoration must fall within the MN DNR guidelines for trout fisheries.  No other alternatives were looked at as they would not be approved by the DNR. EAW, permitting, survey, soil sample (Q1-2), finalize construction plans and procurement (Q2-3), construction and project closeout (Q3-6), because of short construction seasons and additional restrictions on work due to potential impacts to trout, a secondary completion date of Q10 has also been established.

3.2-     Gary New Duluth (Q1-8) – The Gary New Duluth neighborhood suffers from poor drainage that exacerbated flood damage during the June 2012 flood. The tight cohesive soils, poor drainage, and flat topography also contribute to annual flooding of streets and yards during annual snow melt. This results in lower neighborhood property values, unbuildable platted parcels, and reduced potential for economic development opportunities. When properties can be protected from localized flooding due to soil saturation, the existing housing stock can be protected from potential water damage and health concerns. The objectives of this activity are to provide a drainage system for the Gary New Duluth neighborhood located on the east side of Commonwealth Ave that will allow effective and efficient storm water runoff and snow melt capture and conveyance.  This system will provide safer streets and sidewalks for residents and business owners, and allow property owners to properly manage storm water and snow melt runoff from their private parcels resulting in reduced insurance claims for wet basements and property damage from excessive standing water and/or slow draining areas following storm events or spring snow melt. Procurement of engineering design services (Q1), field survey, cleaning and inspection of storm sewer, hydrologic/hydraulic modeling (Q1-3), construction plans and prioritization, construction bidding (Q3-4), construction (Q5-8).

3.3-      Morgan Park and Atlas Industrial Park (Q1-Q9)- The neighborhood of Morgan Park in the western part of the MID-URN has access at only two points.  Both roadways into the neighborhood must pass below a railroad bridge.  This road alignment creates a “sag” condition at the bridges and has caused flooding at a depth too deep for vehicle travel.  The northern neighborhood entrance has a stream adjacent to the roadway that limits the options for flood resilient improvements.  The southern entrance at Idaho Street, does not have a stream but rather a large storm sewer system that coincides with the street.  This site has options to reduce the risk of flooding. By providing up gradient extended detention of stormwater runoff, the risk of flooding the southern entry to the Morgan Park neighborhood is greatly reduced.  The extended detention will reduce the peak flow rates within this section of the storm sewer system, allowing the existing capacity of the system to handle large rain events and greatly minimize the risk of flooding and potentially cutting off access to the neighborhood again during emergency response. Providing extended detention also allows for redevelopment of the remediated brownfields at Atlas Industrial Park. Procurement of design and engineering firm (Q1), topographic survey, wetland delineation/mitigation/permitting as needed, hydrologic/hydraulic modeling, construction bidding (Q2-4), construction (Q-9).

3.4-      Miller Creek Remeander- This activity is part of a larger plan to reduce flooding risks to the Miller Hill Mall regional retail corridor and the downstream Lincoln Park.  The project will provide attenuation of flood flows above the “bluff” by remeandering the stream within the stream/floodplain channel above the Kohls Store.  The remeandering of the stream will provide a reconnection to the floodplain, providing storage or detention of high flow events, and reducing peak runoff rates down-gradient.  This will help reduce flooding to roadways and property and provide flood control for the stream and adjacent areas at the Miller Hill regional economic center and along the hillside as the creek flows towards its mouth at the St. Louis River. The reduction of risk to flooding will reduce economic losses to retail establishments and provide uninterrupted employment for the many LMI individuals that work in the retail corridor. By completing this and other Miller Creek projects (3.5-6), Minnesota will provide for expansion and economic growth opportunities by decreasing flood hazard boundaries and associated flood development restrictions. Permitting for wetland impacts and stream restoration, HEC-RAS model to adjust floodplain mapping, complete EAW (Q1-2), complete design and award construction bids (Q3-4), construction (Q5-6), because of short construction seasons and additional restrictions on work due to potential impacts to trout, a secondary completion date of Q10 has also been established.

3.5-      Miller Creek Bridges (Q1-12)- Although the four existing double box culverts did not suffer damage in 2012 flood, the stream alignment, bridge configuration and loss of flood plain through years of development, has reduced the flow capacity of this section of Miller Creek.  During the 2012 flood, extensive flooding occurred in the immediate area.  Frequent flooding has occurred on the adjacent roadways / private property resulting in traffic disruptions, loss of business and life/safety issues, and consistent inundation in areas of city/county/state infrastructure and private property. Damage did occur to multiple commercial establishments and although their repairs are complete, unless the cause of the flooding is addressed, they remain at risk for future damage, loss of business, and out-of-work conditions for LMI employees. This section of the creek is in the center of a large regional retail commercial corridor.  Past development has realigned the original stream channel and has reduced its floodplain.  The project will increase the capacity of the existing box culverts by replacing them will clear span bridges that will have a larger cross sectional flow area, which will allow stream flows to pass below the bridge and not overtop onto the adjacent roadways and into businesses. In conjunction with the installation of 4 new bridges, the restoration/recreation of the floodplain through this section of the creek will provide increase flow capacity of the stream using natural stream characteristics. Permitting for wetland impacts and stream restoration, HEC-RAS model to adjust floodplain mapping, complete EAW (Q1-3), complete design and award construction bids (Q4-6), construction (Q6-12), although this project could proceed faster, the schedule reflects contingency period based upon seasonal access and restrictions on trout streams.

3.6-       Public/Private Retention (Q-12)-  The objective of this activity is to reduce the runoff rates of the surround large private land owner that exist along the Miller Creek.  The existing land use in the area is large box stores that were built before the flood plain mapping was created for the City of Duluth and the current public waters protection now afforded to trout streams.  The installation of large below grade stormwater runoff detention structures (various methods) will capture runoff, and attenuate flows so that discharge is reduced rate, thereby minimizing the risk of flooding to the adjacent stream and down gradient areas.  As project locations are studied thoroughly, the addition of green infrastructure at the surface will become apparent and will be added to improve stormwater and aesthetics of the properties.  The projects will require partnership with the property owners to allow permanent easements on their property for the underground structures and take on some of the financial costs of construction and/or O&M. Procure design services, finalize public/private partnership agreements (Q1-2), complete 1st round of construction plans/bidding (Q3), construct 1st round detention, recruit second round of private partners (Q4-6), construction (Q7-12).

3.7-      Brewery Creek Detention (Q1-12)- Brewery creek originates north of Blackman Avenue and west of Central Entrance.  This is just short of a mile from its original headwaters in what was once called Grassy Lake.  The majority of Brewery Creek, below Skyline Parkway, is buried. Almost all (estimated 90-95%)of the 914 acres in the Brewery Creek watershed exists above Skyline Parkway where few wetlands exist to buffer the storm water runoff that is generated during a rain event. The Brewery Creek watershed located in the central part of the City is a combination of open channel and piped conditions on top of the hill, and mostly buried in storm tunnels going down the hill to Lake Superior. The age of the storm tunnels are from the late 1800s to the 1930s, and were built by the City and private developers, with a variety of materials and cross sectional shapes. The flood damaged a portion of the tunnels, and also stressed the system as a whole. The Brewery Creek storm tunnels are aligned through the Health District and Hillside neighborhood of Duluth, a lower income neighborhood, with lower home values and a high percentage of rental properties.  Because of its location under a number of buildings and under a number of high traffic streets, continued function the storm tunnel is an imperative to this neighborhood and the City as a whole.  The protection of the structures above and adjacent to the tunnels is a life-safety concern.  Providing stormwater runoff storage, extended detention on top of the hill, will reduce the stress on the limited flow capacity of the storm tunnel, will reduce the risk of a tunnel failure and uncontrolled flooding in the Hillside neighborhood. Addressing flow issues will also allow for redevelopment of a cornerstone parcel into mixed-use development, reconnecting the neighborhood and servicing anchor institutions (NN 1.9). Procure design services, finalize public/private partnership agreements (Q1-2), complete 1st round of construction plans/bidding (Q3), construct 1st round detention, recruit second round of private partners (Q4-6), construction (Q7-12).

3.8-       Chester Creek Detention (Q1-12)- The Chester Creek Watershed experienced significant damage from the 2012 flood to a number of road crossing culvert and the Chester Creek City Park.  Slope stability issues and stream channel degradation and aggradation occurred.   NOAA funded a green infrastructure study on the Chester Creek watershed, and showed how investment in green infrastructure would reduce the risks and costs associated with flooding.  This project is to provide extended detention in the watershed above the bluff line in Duluth at numerous locations. The projects will provide rate control attenuation or flood control.  Basic hydrologic and hydraulic studies show the benefits on the capacity of a storm sewer or drainage system (creek) to handle the flows associated with a large rain event.  For this concept to work, runoff attenuation needs to occur at many locations within the watershed and not a singular location.  The projects will reduce flow rates during large rain events thus protecting downstream properties per the NOAA study. Procure design services, finalize public/private partnership agreements (Q1-2), complete 1st round of construction plans/bidding (Q3), construct 1st round detention, recruit second round of private partners (Q4-6), construction (Q7-12).

3.9-      Chester Creek Remeander (Q1-6*)- The project is part of a larger plan to reduce flooding risks to the Chester Creek watershed and the down gradient neighborhoods of Duluth. The project will provide attenuation of flood flows above the “bluff” by remeandering the stream within the stream/floodplain channel above Madison Ave. The remeandering of the stream will provide a reconnection to the floodplain, providing storage or detention of high flow events, and reducing peak runoff rates down-gradient.  This will help reduce flooding to roadways and property and provide flood control for the stream and reduce channel erosion and stream bank failures.  It will further protect Chester Creek Park and adjacent areas along the hillside as the creek flows towards its mouth into Lake Superior. No other alternatives were looked at as they would not be approved by the DNR. EAW, permitting, survey, soil sample (Q1-2), finalize construction plans and procurement (Q2-3), construction and project closeout (Q3-6), *because of short construction seasons and additional restrictions on work due to potential impacts to trout, a secondary completion date of Q10 has also been established.

3.10-        Resilient Power and Small Business Energy Efficiency (Q1-12)- The June 2012 flood and other Minnesota disasters have illustrated the need for development of resilient power solutions, transition to distributed local energy, and increased energy affordability to support financial stability for commercial enterprises. This activity will develop 1.5 MW of solar associated with critical infrastructure, neighborhood redevelopment, and housing development associated with NDRC. A resilient solar plus storage project will be located at the City of Duluth’s gas and water facility, with additional solar installations on reservoirs aiding in water pumping. A solar community garden focused on advancing low-income equity models will be built at the Cross City Trail entrance into Lincoln Park. A partnership will be created with the Fond du Lac Tribal and Community College to advance job and training opportunities. The project will include a second component that assists small businesses with energy efficiency and resilience improvements through adaptation of the EPA and White House recognized residential Duluth Energy Efficiency Program for businesses. Business Energy Efficiency Program (BEEP) design and initial solar projects selected (Q1-2), solar and energy efficiency installations (Q3-12.)

3.11-       District Heat Transition (Q1-12)- Because the current steam system is of the “direct buried” design (that is, steam pipes are installed in earthen trenches which are then backfilled with soil, rather than installed in tunnels), steam pipes in the 2012 flood impacted areas were exposed to groundwater as the soil became saturated. Most of the system’s steam pipes were insulated with asbestos, buried and put into service in the 1930s and 1940s before the technology for sealing high temperature insulation systems was refined. During the 2012 flood, groundwater leaked through degradations in whatever moisture barrier existed, saturating the insulation and then boiled and flashed to steam as it contacted the hot steel steam pipe. This damage was obvious inside manholes and steam vaults where the steam pipes were accessible for inspection, and this insulation damage was repaired post-flood. Damage to direct-buried steam pipes was of course less obvious, but is known to exist. An aerial infrared survey of the system was completed in 2014 and “hot spots,” indicating significant insulation damage, were revealed throughout the system. In calendar year 2014, over 20 percent (106 million Btus or 31,000 kilowatt-hours) of the energy leaving the central heating plant was lost in the distribution system due to these inefficiencies. Replacement of these pipelines with modern, thermally insulated hot water pipe with an integral leak detection system would increase efficiency and fuel costs savings, permitting the beginning of a transition from coal to regionally derived biomass. In addition, moving to a looped hot water system will reduce the need to continually treat and pump water from Lake Superior (currently 90 million gallons a year, heated from 40 degrees to 365 degrees). The $41 million in funding for the combined roadway and utility project has been identified. NDRC funds would be used to modify and connect Superior Street buildings, which provide services to some of Duluth’s most vulnerable populations, to the new looped system, and to provide redundant energy to regional medical facilities in downtown Duluth. Phase 1 design work and building modifications (Q1-4), Phase 2 design work and building modifications (Q5-8), Phase 3 design work and building modifications, redundant line to hospitals (Q9-12).

Reduction of Harm- The portfolio of activities will reduce harm to residents over a long time period. Restoring natural flow on streams has an indefinite time period of protection (just subject to natural processes). Other green infrastructure measures can be expected to provide benefits for many decades. When the time horizon is extended to 50 years, the costs remain constant but the benefits continue to grow until they exceed costs (Eastern Research Group). Green infrastructure can capture water to reduce flash flooding during rain events reducing building damages and reducing pollution and sediment loading (NOAA Coastal Services Center). Providing access to green space is increasingly recognized as an environmental justice issue (Wolch et al). High quality parks improve health through increased activity. A meta-analysis of research shows a correlation between parks and physical activity and parks and better mental health (Trust for Public Land). Close proximity to green spaces was associated with less depression, anxiety, and other health problems and the relationship was strongest for children and people with low incomes (Maas). The strongest associations occurred with 1 kilometer of the subject’s home, suggesting that green space should be easily accessible (Maas) as demonstrated by the Minnesota proposal.

As provided under this proposal, designated locations should be established in each community to provide critical services such as shelter, food, water, electricity and communications (Clay Nesler). Community and recreation centers provide a variety of programs, services, and resources and strengthen citizenship and social cohesion (Glover, 2003; Maton, 2002). Establishing community centers may help reduce disparities in access to services and recreation and is a suggested strategy to strengthen social ties and reduce isolation among community members (Ottmann 2006, Glover 2004, London 2006, Lauer 2007). Community technology centers, community centers that emphasize technology access, are associated with positive youth development and strong peer-to-peer relationships, especially among minority youth in low income families (London 2006). In a Boston-based study, neighborhoods with a low density of community centers and recreation facilities were shown to have lower median incomes and larger minority populations than neighborhoods with a higher density of facilities (Hannon 2006).

Budget- All project costs have been evaluated to ensure that projected sources are sufficient for the scope of work proposed. Detailed sources and uses statements are available in Attachment B – Leverage Documentation.  Procurement process used during the grant period will ensure cost reasonableness. The Minnesota application requests $79,692,910, will be leveraged (using NDRC documentation criteria) by $127,984,250 and match by and additional $86,908,100 (not meeting NDRC criteria).

Consistency with Plans-

The Minnesota NDRC project is consistent with the following plans:

  • State of Minnesota Consolidated Plan
  • City of Duluth Consolidated Plan
  • State Hazard Mitigation Plan
  • Regional Transportation Plan
  • St Louis River AOC Remedial Action Plan-US Environmental Protection Agency
  • Lower St. Louis Habitat Plan – St. Louis River Alliance
  • MN Parks and Trails 25-year Legacy Plan – MN DNR
  • Golden-winged Warble conservation (listing petition) – US Fish

There are three types of funding reflected in the activities sources and uses statements for Big Water Minnesota: Ripples of Resilience. The first is the amount of CDBG-NDR funds requested as part of the NDRC application. The second is direct leverage which meets the NDRC-NOFA criteria including being 1) firmly committed, 2) having required documentation, 3) were committed after September 17, 2014, and 4) are being made available to the State to use for activities directly related to the undertaking of project activities directly related to the Big Water Minnesota: Ripples of Resilience application to NDRC.  The third type of funding in the sources and uses statements include dollars to complete activities that do not qualify as leverage under the NOFA definition, but will provide direct assistance to completing the activity. In addition to the sources reflected in the project budgets, supporting leverage is listed below. Supporting leverage are commitments that the State of Minnesota and our partners have available to carry out activities that directly support the overall proposal, but are not part of the sources and uses of the CDBG-NDR-assisted project. Supporting leverage assists in building resilience in the MID-URN and the larger region. All leverage documentation can be found in Attachment B – Leverage Documentation.

Minnesota recognizes that impacts of climate change are already being felt throughout the state and has been actively engaged in establishing policy, creating financial incentives, and comprehensively exploring options for reducing emissions, adapting to climate change, and building resiliency within the state.

Since the qualifying disaster in June of 2012, state agencies began an important progression of work to first define adaptation strategies (Interagency Climate Adaptation Team’s Adapting to Climate Change in Minnesota 2013) to communicating climate impacts and action strategies that residents and businesses can take through the Minnesota and Climate Change: Our Tomorrow Starts Today (2014). In November of 2014, a set of statewide stakeholder meetings (Climate Solutions and Economic Opportunities) facilitated by the Center for Climate Strategies (CSS) began.  The CSEO process includes conducting an analysis on the potential to reduce greenhouse gases, projected societal costs and savings, and projected indirect effects on the economy to determine Minnesota-specific strategies that build resilience.

Actions improving permanent resilience in Minnesota that have been taken since the qualifying disaster in June 2012 include:

  • Modification to the Renewable Portfolio Standard (2013)­ In 2013, Minnesota modified its Renewable Portfolio Standard to add a 1.5% by 2020 carve out for solar by 2020 for Investor-Owned Utilities. Adoption of this legislation multiples the 2013 installed capacity of 13 MW by a factor of 35 to reach 450 MW by 2020. The legislation also created mandates for solar garden programs, first in the nation value-of-solar tariffs, and an expansion of net metering from 40 kW systems to 1 MW expanding the financial viability of projects.
  • Adoption of Minnesota Model Building Codes (2015)- Minnesota updated the model building code from a base of the 2006 ICC to 2012 ICC and completed a durability study report for the Construction Code Advisory Council. Implementation of the residential energy code component begins on February 21, 2015 and creates a 30 year savings of $9,873 for homes constructed under the new code (5.7 year payback). Impact information was compiled as part of a US DOE study.
  • Grant Funds for Community Resilience (2014)- The Pollution Control Agency has established grant awards for community resiliency. Funding has included awards to specifically educate and conduct outreach to increase resiliency among the state’s most vulnerable and underserved populations including low-income, rural, and communities of color, regional resiliency convenings on climate adaptation ideation and innovation, and establishment of a local framework for city-level resiliency planning.
  • MN Department of Health: Climate Change Vulnerability Assessment (2014) and Health Impact Assessment (MID-URN neighborhoods 2014-2015)- The Department of Health has studied and reported on the climate vulnerabilities faced by Minnesotans including extreme heat, air pollution, vector-borne disease, flooding and flash flooding, drought. Utilizing the information developed, a pilot project is being conducted in two MID-URN neighborhoods to complete Health Impact Assessments as part of land-use planning which will be completed by the City of Duluth in May of 2015.
  • Watershed Restoration and Protection Strategy for Duluth (2014-2015)– MPCA, MN Sea Grant, UMD-NRRI, and US Geological Survey are completing a WRAP for urban streams flowing through MID-URN areas of Duluth.

.

State of Minnesota Consultation Summary
Agency Name or Stakeholder Group Agency Type – Target Population (if applicable) Type of Outreach Materials Provided &

(Initial Method of Notification)

 
Grantor’s Alliance Group of regional philanthropic organizations. Meeting Background on Phase 1 application and anticipated project selection process.
River Corridor Coalition Coalition of neighborhood representatives from MID-URN river corridor neighborhoods Monthly series of meetings Background on Phase 1 application, project brainstorming, and project selection process.
Sustainable Twin Ports 07/09/15

Partners, potential partners and stakeholders

Open meeting One-on-one outreach with partners and stakeholders about NDRC. Updates on where we are in the process and sharing timeline. Opportunity for participants to ask questions and get clarification about the grant.
Food Hub Stakeholders 07/23/15

Partners, potential partners, and stakeholders

Open meeting Food hub definitions materials and discussion about needs to address Duluth food deserts, producers, job creation, and related projects already in the pipeline.
Interagency Climate Adaptation Team Minnesota state agency cross-disciplinary team Conference call Update on Phase I application and request for participation in the RFI/RFK process.
Fond du Lac Band of the Lake Superior Chippewa Planning division Meeting Update on Phase I and project selection process for Phase II, discussion of Phase II partnerships
FEMA Phase I Discovery FEMA Stakeholder meeting St. Louis Phase I discovery process draft and discussion.
Morgan Park Community Club MID-URN community club Monthly meetings Updates on applications
MN Housing Finance Agency State finance agency Meeting Technical assistance session on single family rehab
Fond du Lac Tribal and Community College Tribal college Presentation Presentation of entrepreneurial activities and approaches to advance employment
Great Lakes Integrated Sciences and Assessment Center Regional NOAA climate sciences centers Phone call Update on process and project selection, discussion of impacts and opportunities to model city-scale adaptation planning for Great Lakes Region
McKnight Foundation Foundation Meeting Discussion of state/regional energy work and NDRC approaches
RFI/RFK public information session Organizations, citizens, government departments Public meeting, series of 1 on 1 consultations Public meeting followed by a week of 1- on- 1 consultations with any interested parties on NDRC objectives, climate impacts, co-benefits
Portland University Urban Sustainability Accelerator Program University Series of meetings Work to determine neighborhood connections and design options on district heat transition
Habitat for Humanity Housing Agency Meeting NDRC update and RFI process, partnership discussion
Minnesota Power and ComfortSystems Utilities serving MID-URN
Energy Action Plan 2025 Statewide stakeholder group to inform Legislative Energy Commission on recommendations Series of meetings Discussion of mitigation and adaptation strategies, notification of NDRC process
Public Meeting Citizen meeting to discuss park and trail priorities in the MID-URN Public meeting Highlight of Phase 1 application and framing, survey of residents on priorities
Freshwater Future Nonprofit Great Lakes organization from Michigan Telephone conference Discussion of opportunities and challenges in addressing climate impacts in Great Lake region
Isaak Walton League Environmental group in northeastern Minnesota Presentation Presentation of NDRC, Phase 1 framing, project selection process, working objectives of application
NOAA Federal agency Meeting Discussion of Phase 1 framing and tie in to NOAA goals and regional work
Farm Beginnings/ Lake Superior Farmers Association Agricultural organization Meeting Discussion of resilience in regional farm population, challenges to regional food system due to climate change
Conflict Resolution Center Nonprofit working to build community mediation strategies/program Meeting Discussion of community engagement and process for working with minority and underrepresented populations in the state
Door-to-door canvass Morgan Park neighborhood (MID-URN) Door-to-door canvass Canvass of low-income neighborhood in the MID-URN, targeted energy assessments to determine energy efficiency and historic preservation needs in housing stock
Solar Market Pathways – DOE DOE program to advance solar installation Conference discussion Discussion on resilient solar and application to Minnesota projects, connected to Clean Energy Group
Affordable Comfort Institute National energy efficiency association Conference presentation Presentation on qualifying disaster, response, and anticipated resilience actions
MID-URN businesses Small businesses Meetings Background on NDRC, Phase 1 framing, RFI/RFK process, and discussion of resilience needs
MNIPL Interfaith group Meetings Ongoing discussion on energy, equity, and solar
Irving Community Irving Community Club Public Meeting Meeting to discuss design options to replace flood-destroyed community center and park
MPCA State pollution control agency Meeting Presentation on RELi system to examine potential application of standards for Minnesota Projects, presentation by Georgetown Climate Center on state building codes
St. Paul Port Authority Port Authority Meeting Discussion of financing tools and partnership on delivering PACE in the MID-URN community
Public MID-URN community Public Hearing Public hearing on CDBG priorities in the MID-URN community
Metropolitan Council Represents 168 St. Paul/Minneapolis metropolitan communities Conference Presentation on NDRC, Minnesota approach, potential regional connections outside of the MID-URN
MID-URN businesses Small businesses Tour MID-URN businesses and MN NDRC application team members traveled to Northeast Minneapolis to meet with BID, cooperative representatives, and tour economic revitalization work
University of Minnesota, Energy Transition Lab State research department of university, law school Series of meetings Discussion of NDRC goals and potential components of a BCA, research projects defined for solar, commercial efficiency, rental properties
Arrowhead Regional Development Council Metropolitan Interstate Commission Meeting Discussion of priorities, projects, and alignment with regional plans
Western Lake Superior Sanitary District Regional wastewater treatment, hazardous materials, and composting site Meeting Discussion of priorities, projects, and alignment with regional plans
REAMP 8 state network of organizations and foundations working to reduce carbon by 80% by 2050 Meeting Discussion of NDRC and potential opportunities to advance carbon mitigation as a component of resilience projects
Northland Foundation Regional initiative foundation Meeting Discussion of NDRC and potential partnerships
Urban Land Institute 35,000 member international organization of planners/designers National Resilience Panel (week-long), public meetings, public presentation Briefing book, background information on Miller Creek watershed, panel recommendations at www.bigwatermn.com

 

Workforce Development Council Multi agency group working on jobs and training programs in northeastern Minnesota Meeting Discussion of NDRC and potential partnerships
US Green Building Council – Northland Chapter Sustainable building Meeting, keynote at conference Presentation of Minnesota NDRC approach and applicability to USGBC work
Climate Coalition Northern Minnesota coalition of state agency staff and local organizations Meeting including state climatologist Changing climate presentation, NDRC background and invitation to 60+ attendees to participate in ongoing project discussion
At-Home in Duluth 25 NGO’s working in MID-URN Series of meeting Ongoing conversations, discussion of projects, priorities, and partnerships
Northland Voices 30 minute television news program distributed in northern Minnesota and Wisconsin 30 Minute news discussion Update on process, request for information from viewers, notification of flood-affected parities meeting and website for ongoing meetings
MN EQB State agency commissioners and citizen representatives Public meeting Presentation on NDRC and integrated approach between agencies and local unit of government
MN Department of Health State health agency Meeting Discussion of ongoing health/mental health concerns from 2011-13 disasters, focused on qualifying disaster
Lincoln Park and Children and Families Coalition Neighborhood organization Meeting Discussion of ongoing risks and stressors in the MID-URN
Blue Cross Blue Shield Center for Prevention Healthcare Insurance Provider- Funder Meeting Discussion of wellness work in MID-URN to follow up on Phase 1 framing
Public February 23-March 9, 2015

Comments accepted online, in writing, via phone, and/or TTY

Public Comment Period Phase I application posted for comment and available upon request. Citizens also directed to www.BigWaterMN.com for additional NDRC and resilience information. (posting in St. Paul Pioneer Press to meet State requirements and Duluth News Tribune to meet local requirements, notice on MN DEED homepage, email invitations)
Government agencies, designers, theorists, academics, corporate practioners, industry experts, students, and the public. DredgeFest Great Lakes is a symposiumfield expedition, and speculative design workshop about the human manipulation of sediments. 3-day symposium held in Minneapolis with a field day to the MID-URN area. Local to international designers participated in action-filled workshops to look at sediment manipulation. The culmination of the symposium was a trip to the MID-URN area where 50+ participants toured by bus and boat the St. Louis River and estuary, and the Duluth-Superior harbor to see current and proposed projects and understand the impacts from the June 2012 flood. After a presentation on Minnesota’s NDRC Ripples of Resilience framing, attendees were asked to participate applying their knowledge and skills in a rapid iteration exercise on what resilience means in each layer identified by the Minnesota team.
State Energy Office Utility Conservation Improvement program, DOE Combined Heat and Power Stakeholder Group, Distributed Solar Program Meeting Discussion of MN energy resilience approaches and goals. Exploration of policies and programs that can be demonstrated or adapted to and from the  MID-URN. Discussion of leverage opportunities.
State Energy Action Plan 2025 Stakeholder Group Cross-sector stakeholder group including citizens, utilities, state agencies, NGO’s, technical experts, PUC Meetings Information on actions taken to date and group identification of areas that have greatest potential to reduce carbon and increase state resiliency in the building, electrical generation, commercial/industrial, efficiency, and transportation sectors. Presentation of Phase I framing and energy as a pillar or resilience. Invitation for individual or organizational follow-up.
State Energy Stakeholders Legislative Energy Commission directed group of stakeholders including governmental agencies, private industry, local government, environmental groups Survey Broad focus areas of energy technologies/strategies were determined for advancing state’s goal of reaching 80% carbon reduction by 2050. Stakeholders prioritized 1) advanced electric distribution grid, 2) thermal energy, 3) energy and climate planning action, 4) bioeconomy (energy and materials from biological resources), and 5) Industrial energy efficiency, combine heat and power
Healthcare Providers/Public Health Integrated Behavior Health Convening by Minnesota Department of Health and Northland Regional Flood Recovery Full day convening focused on integrated health care, building behavioral health capacity, April 20, 2015 Presentation from post disaster health work focused on mental health issues including the “Finding Hope, Healing, and Wellness, Flood Resiliency Project” report, survey results from disaster affected households, and interactive work to identify actions at the local level that can improve access to mental healthcare, tools that can help create systemic operational changes that facilitate integrated behavioral healthcare, operational strategies of providers that can enhance patient resilience, and methods of assessing patients’ medical, social, and mental health responses to nearby disasters that enhance community resilience.
Disaster Affected Households Minnesota Department of Health lead survey 1600 surveys sent to households in the DR-4069 area. 224 received from St. Louis, Carlton, Pine, and Aitkin Counties Survey developed to identify how many households still have unfinished construction projects, what the debt load or financial strain on the respondent, perceived stress and health during recovery, and how many respondents have moisture and mold issues remaining in their homes. Results indicated that 54% of St. Louis County residents (location of MID-URN) still have homes not returned to pre-flood conditions. 75% of respondents indicated financial insecurity due to recovery debt. 72% indicated periodic or frequent stress from the flood but only 4% received any stress management assistance. 14% indicate that mold/moisture is difficult or impossible to manage/clean and remains. Only 6% said their outside space was fully recovered and would prevent damage in another flood.
Environmental and social justice organizations and vulnerable populations Minnesota Pollution Control Agency, host Community feedback meeting in the MID-URN Public meeting to discuss environmental justice framework for the State of Minnesota held in the MID-URN. Goal of meeting was to ensure that environmental justice becomes embedded in state work including NDRC. Presentation included identification of areas where lower income individuals and persons of color may be experiencing more harm, approach on increasing work on monitoring and evaluating risks to health, community-oriented communications including translations, harder look a pollution sources, targeting assistance and grants to reduce smaller sources. MID-URN area was identified as area of “potential concern.”  Participants provided comment.
Rotary #25 & EcoRotary 163 business and community members from northeastern Minnesota Presentation and Q&A Presentation of NDRC, ripples of resilience framing, anticipated future impacts of climate change and unmet needs. Discussion of anticipated Phase II projects.

The National Disaster Resilience Competition requires preparation and submission of a benefit cost analysis (BCA) for each “covered” project. A “covered” project is defined as a project with a budget of $50 million or greater in which $10 million or more of CDBG-NDR funds are sought. A “covered” project may also be a project that covers more than one county.

The State of Minnesota’s application requires a BCA to be performed for two of the three projects included in the application due to the size and scope:

Project Description NDRC Request
Neighborhood Needs Remove at-risk homes, resiliently repair 250 homes, adaptively reuse 4 structures (133 mixed-income units, micro-manufacture demonstration, 150 mixed-used development, commercial revitalization fund $26,425,000
Infrastructure Implementation of green infrastructure strategies including extended detention wetlands, reestablishment of natural floodplains, development of resilient energy systems $41,168,000

 

Costs are defined as the overall costs of an investment including operations and maintenance over the lifetime of the investment. For the purpose of this BCA, costs also include any costs associated with long-term commitments made to advance resilience.

Benefits are defined according the resilience, economic, social, and environmental benefits that are provided by the investment.  These can include avoided damages and additional benefits provided by the investment and policy/program. Annual Benefits represent an annualization based upon likelihood of an event. For example, if we make an investment in reducing flows from a stream that protects $1,000,000 worth of property in a 100-year flood plain, but the probability of that damage is once-in-one-hundred years, than the annual benefit is $1,000,000 x .01 (annual probability) = $10,000 per year.

BCA’s ultimately compare the overall costs of an investment including operations and maintenance over the lifetime of the investment to the values that it produces. This results in a Benefit Cost Ratio (BCR). A BCR over one (>1) indicates that the investment will produce greater benefits over its lifetime than the costs. To insure an apples-to-apples comparison, a discount rate is applied to adjust for the changing value of money over time. This allows a comparison of future benefits to the current cost of a project resulting in a Net Present Value.

HUD recognizes that not all benefits are able to be quantitatively identified. The State of Minnesota is continuing to develop monetization and qualitative models of benefits for selected projects for the October 27th submission to the National Disaster Resilience Competition. Initial analysis indicates all activities meet a BCR > 1 condition.

Activity BCR >1
Neighborhood Needs YES
1.1 Buyouts Yes
1.2 Resilient Rehab Yes
1.3 AICHO Yes
1.4 Esmond Yes
1.5  Supportive Yes
1.6 Commercial Revitalization Yes
1.7 Nettleton Yes
1.8 Micro-manufacturing Yes
1.9 Mixed Use Development Yes
1.10 Armory Redevelopment Yes
Infrastructure Investments YES
3.1 Mission Creek Yes
3.2 Gary New Duluth Yes
3.3 Morgan Park-Atlas Cement Yes
3.4 Miller Remeander Yes
3.5 Miller Bridges Yes
3.6 Miller Retention Yes
3.7  Brewery Creek Yes
3.8  Chester Detention Yes
3.9  Chester Remeander Yes
3.10 Solar and BEEP Yes
3.11 Duluth Steam Yes