The Gazette covers City Hall, now a flood-damaged icon on May's Island in the Cedar River

City Hall readies to review flood-insurance proposals; Linn supervisors are as eager to get huge costs waived by state insurance commissioner

In City Hall, FEMA, Floods, Linn County government on April 20, 2009 at 9:02 am

Local government is going to turn to the Iowa Insurance Division for help in confronting giant insurance costs that are required in exchange for accepting giant payments from the Federal Emergency Management Agency to fix flood-damaged city, county and school buildings.

Linn County Risk Manager Steve Estenson on Monday morning revealed potential annual insurance costs facing Linn County once it repairs and returns to the its courthouse and jail on May’s Island and to a few other county buildings flooded last June.

He put the first estimate of costs at about $600,000 a year, but a final total is not known other than it is not apt to be that high. That is, in part, because the county may not return to the Witwer Building downtown and it intends to move the flood-destroyed Options Building elsewhere. Even so, it will need to pay some flood insurance on the Options Building.

What the Linn supervisors were most interested in, though, was Estenson’s comment that the city, school district and county all are now planning to ask the state insurance commission for a waiver of some of the insurance costs. FEMA regulations permit such waivers, although they are not common.

The Cedar Rapids City Council said two weeks ago it was interested in exploring such a waiver.

The council is a step ahead of the supervisors. It already made a formal request for brokers to handle the city’s flood-insurance matters.

The council will be able to forgo much of the huge insurance costs this year because it will not be returning this year to City Hall, the library and Paramount Theatre, three city buildings flood-damaged in June 2008.

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