Post-Disaster Economic Recovery

The NADO Research Foundation has established this blog as an open forum for stakeholders of regional disaster mitigation and recovery. Posts will generally revolve around the economic impacts related to disaster recovery.

This blog is powered by the Resilient Regions initiative in partnership with the U.S. Economic Development Administration. To learn more about this program, please contact NADO program manger Mike Bellamente at mbellamente@nado.org.

Friday, December 17, 2010

Presentations now Available: "Opportunities for Regional Organizations in a Post-Disaster Environment"


On Thursday, December 16, the NADO Research Foundation hosted a webinar on the role of regional councils and economic development organizations in disaster recovery.

The recorded webinar presentation can be downloaded by visiting our NADO Sharefile site.

To download a PDF version of the speaker slides, please click the name of the corresponding presenter below:

Nationwide, the involvement of regional councils and economic development organizations (EDOs) in disaster recovery has been as diverse as the regions they represent. Some have entire programs dedicated to disaster-related issues, whereas others administer recovery funding only in a limited capacity.

The goal of this webinar was to provide a more formalized framework for regional councils and EDOs on a national level, and to better define their role in post-disaster recovery.

The NADO Research Foundation conducted this web broadcast in cooperation with the U.S. Economic Development Administration under grant agreement #08-79-04379.

Tuesday, December 14, 2010

Join us for a Complimentary Webinar on December 16, 2010




Opportunities for Regional Organizations in a Post-Disaster Environment

Nationwide, the involvement of regional councils and economic development organizations (EDOs) in disaster recovery has been as diverse as the regions they represent. Some have entire programs dedicated to disaster-related issues, whereas others administer recovery funding only in a limited capacity.

The goal of this webinar is to provide a more formalized framework for
regional councils and EDOs on a national level, and to better define their role in post-disaster recovery.

Our Speakers:

· Laurie Johnson, PhD AICP – Principal, Laurie Johnson Consulting

· Josh Barnes – Program Manager, U.S. Economic Development Administration

· Eric Berman – HAZUS Program Manager, Federal Emergency Management Administration



Laurie Johnson, PhD AICP, will present a 3-phase framework for regional councils in post-disaster recovery, leveraging knowledge of their region’s communities and economies, as well as their expertise in planning, data collection and management, GIS, and federal funding management and distribution.

In particular, the 3-phase framework will explore the potential functions of conducting post-disaster economic assessments, providing standards and technical assistance for post-disaster recovery planning and implementation, and establishing data standards and promoting sustained information management and sharing among disaster-impacted communities as they recover.

Laurie’s proposed framework is based upon 20-plus years of studying and working with communities impacted by major disasters, including New Orleans, LA following Hurricane Katrina, Grand Forks, ND after the 1997 Red River flood, and many California communities impacted by the 1989 Loma Prieta and 1994 Northridge earthquakes.

Participants of the broadcast will also be introduced to the National Disaster Recovery framework by Joshua Barnes of the U.S. Economic Development Administration. EDA is leading the effort to develop an Economic Development Recovery Support Function (RSF) as part of the national framework – an effort intended to better formalize the post-disaster economic recovery process.

Also presenting on the call will be Eric Berman of the Federal Emergency Management Agency (FEMA), who will offer a high-level overview about their HAZUS risk assessment methodology.

The
NADO Research Foundation is conducting this web broadcast in cooperation with the U.S. Economic Development Administration under grant agreement #08-79-04379.

Title:

Opportunities for Regional Councils in a Post-Disaster Environment

Date:

Thursday, December 16, 2010

Time:

2:00 PM - 3:30 PM EST

After registering you will receive a confirmation email containing information about joining the Webinar.


Space is limited.
Reserve your Webinar seat now at:
https://www2.gotomeeting.com/register/638153434

Tuesday, October 5, 2010

Tales from the Gulf

Two months ago, a colleague and I were sent to the Gulf of Mexico as part of a larger effort to conduct county-by-county economic assessments under Admiral Thad Allen's Deepwater Horizon recovery initiative.


Ironically, one of the findings during the multi-state assessment was how the State of Louisiana is suffering disproportionately from the deepwater oil drilling moratorium imposed to prevent similar catastrophes; a testament to just how far the roots and employment base of big oil extends in the Gulf.

In the Florida panhandle, a host of other findings surfaced. For one, the spill had a compounding effect on a region that has already seen its share of economic woe. As one resident put it, "to be hit with the collapse of the housing market, then the recession, and now the BP oil spill is just a perfect storm of events that is killing our community."

Commercial and recreational fishing has been devastated (from perception just as much as the oil itself), tourism has nosedived (after initial projections for 2010 looked promising) and small businesses continue to suffer.

Recommendations to county stakeholders during the initiative were many. Below, however, are a few that could pertain to any community prone to disaster-related events:

• Create a formal business recruitment, retention and expansion strategy
• Work with educational institutions (community college, vocational schools, etc) to develop curricula that support the major employers of the region
• Devise methods of diversifying employment base and better capitalize on regional assets
• Develop a brand for your region/community and market the brand in cooperation with your stakeholders
• Create a plan to benchmark municipal energy/utility costs and develop a strategy to reduce those costs through efficiency improvements, retrofits and weatherization programs
• Problems in the community are exponentially compounded by disasters -- know your short-comings to attracting new employers (antiquated infrastructure, poor education system, access to recreation, etc) and work toward improving on them


Now that the well is permanently capped, spill-impacted counties can begin the recovery process in earnest. In addition to filing for lost revenues through the process for private citizens and businesses, there are also several million dollars in competitive grants being offered by the Economic Development Administration and other federal agencies for local governments adversely affected by the spill.

One can only hope that the resilience of these tourism and fishing dependent communities is as strong as their resolve to flourish once again.

Tuesday, July 20, 2010

Lessons Learned from Exxon Valdez

On Tuesday, July 13, the NADO Research Foundation, in partnership with the U.S. Economic Development Administration (EDA), conducted a webcast to benefit spill-impacted communities in the Gulf of Mexico.

The broadcast, Recovering from the BP Gulf Oil Disaster, Lessons Learned from Exxon Valdez, sought to reduce the learning curve of recovery by drawing on the experience of former members of the Exxon Valdez Oil Spill Trustee Council in Alaska. Click here for the presentation slides and click here for the recorded broadcast.


Opening the webinar with remarks about the role of EDA and the federal government in the Gulf, EDA Assistant Secretary John Fernandez noted the importance of the people of the region to remain resilient in what is expected to be a multi-year recovery effort. Assistant Secretary Fernandez continued by saying, "We're going to work with the communities and our partners in the area to coordinate a long-term recovery so we can stabilize the [Gulf Coast] economy and help rebuild it."

Speakers for the event were:

- Dave Cobb, former Mayor of Valdez, AK, former member of the Exxon Valdez Oil Spill Trustee Council and current Business Manager of the Valdez Fisheries

- Molly McCammon, Executive Director of the Alaska Ocean Observing System and former Executive Director of the Exxon Valdez Oil Spill Trustee Council

Among the many salient points made by our speakers, below are a few that resonated about what to expect in the months and years ahead:
  • Dig in for the long haul - with regard to Exxon Valdez, litigation and claims processes lasted as long as fifteen years in some cases -- expect the best from BP, but prepare for the worst
  • Keep good records - in order to receive compensation from BP, or to be eligible for federal assistance, documentation is required to substantiate claims of lost wages and lost business revenues
  • Find your inner entrepreneur - although several industries are likely to be negatively affected by the spill, several economic opportunities will emerge as a result of the spill itself including increased housing demand and the need for support services for personnel involved in the cleanup
  • Every man for themselves - don't wait for assistance from someone else (BP, federal or otherwise). Impacted businesses and citizens should take steps within their power to restore their own livelihood
The latest good news related to the spill is that the latest attempt to cap the well appears to be working. From BP's web site on July12: "The three ram capping stack was installed on the Deep Water Horizon Lower Marine Riser Package at 7 p.m. CDT. The stack completes the installation of the new sealing cap." (source)

For three agonizing months there has been painfully little to celebrate along the shores of the Gulf. Now, a week beyond the latest (and seemingly most successful) attempt at containing the well, residents of the Gulf can finally, if only momentarily, breathe a collective sigh of relief.

And now the recovery begins in earnest...


Thursday, July 1, 2010

The Balancing Act of Recovery

On the heels of a disaster recovery workshop in Galveston,TX, a delayed flight had me revisiting some of the comments made during the event, one of which stood out in particular. The session topic was "Hurdles to Recovery" and although there were many valid points about the need for a streamlined federal funding process and the need for better regional coordination, there was one thought that added great clarity to the discussion: disasters take existing problems in a community and make them a whole lot worse.

When discussing issues like poverty, crime and unemployment, these are trends that tend to have a relatively predictable trajectory unless influenced by an outside force (say a plant closing or a natural disaster). As we've seen already in the BP Gulf oil disaster, spoiled fishing grounds have caused a ripple effect in industries related to tourism and seafood that has sparked a dramatic increase in unemployment and psychological distress. Less than five years removed from Katrina, with some coastal communities already faced with high unemployment and poverty rates, the spill couldn't have come at a worse time.

As strategies for recovery unfold following a disaster, it becomes necessary to balance competing priorities in a way that's fair and equitable. When bridges are crumbling, repairing physical infrastructure tends to trump a community's desire to retrofit government buildings with Energy Star-rated appliances... that's a fact. But what happens when bridges are crumbling, the tax base is eroding under the weight of shuttered businesses and workers are finding themselves without a place to live because they can no longer pay the mortgage? Oftentimes there will be federal or state government financial aid (or BP payouts in the case of the Gulf), but beyond that, disaster-impacted cities and towns are the ones responsible for building back their own communities.

Chances are, most members of a community will stick around for the rebuilding process following a disaster. Whether it is due to pride or merely a sense of family roots that keeps people tethered, the reasons vary. But, much like the City of New York following September 11, when adversity is at its highest (especially in America) communities tend to band together for the sake of building back stronger than they were before. This leads me to believe that, although disaster's may exacerbate issues faced by a community, nothing motivates people more perhaps, than being put in a position to prove their mettle.




Monday, May 24, 2010

For the Gulf Coast, a Long Road Ahead

Few disasters in history have played out as painfully slow as the BP Gulf oil leak, but the real unfortunate reality, 34 days in and counting, is how this disaster remains closer to the beginning of its life cycle than its end.


As accountability and solutions to the problem continue to be fumbled from one ineffective fix to the next, local fishermen and businesses observe helplessly as the damage to their livelihoods begins to unfurl. Similar to Exxon Valdez --previously the largest oil spill in U.S. history, but surprisingly not ranked in the top 30 worldwide-- it will require years if not decades before the economic (let alone environmental and psychological) healing of this event takes shape.

So far, this disaster has a much different appearance than, say, Hurricane Katrina which was characterized more by the rampant and swift devastation that occurred and the widespread loss of life. Keeping in mind the memories of the 11 men who died on Deepwater Horizon, the gusher in the Gulf continues to be more a test on the limits of a fragile aquatic ecosystem and the chain of life dependent upon its survival.

Environmental impacts aside, long-term economic recovery for the region depends on three things:

  1. The extent of damage to coastal areas once the well is finally capped

  2. The willingness of the affected communities and inhabitants to build back again

  3. The ability of responsible parties (BP, Halliburton, Transocean) and the federal government to make these communities financially whole

The Department of Commerce's Economic Development Administration (EDA) appears poised to take the lead on federal recovery assistance. Last week, EDA Assistant Secretary John Fernandez gave testimony to the U.S. Senate Committee for Environment and Public works in which he stated, "While in the short term, EDA regional staff is already providing technical assistance; our focus will remain on promoting long-term economic recovery and we will continue to work closely with the affected communities long after the cleanup is complete."

Other federal agencies are sure to follow suit in their pledge to assist the affected region --which will no doubt be a welcomed sentiment to business owners and residents of the Gulf-- the real test, however, comes when the final crutch is removed, and the wings of the region are once again ready to spread and fly on their own.

Monday, April 26, 2010

Call for Input - Disaster Resilience Guide 2.0

Last week NADO was invited to join the Regional Infrastructure Disaster Resilience (RIDR) Task Force to discuss possible upgrades to a 2006 disaster resilience guide. At first, I had my doubts that the document in question would be too urban-focused to be of value to our stakeholders.

Regional councils and economic development districts, being unique in form and purpose, require a disaster recovery strategy that is broad enough to encompass local governments and the adjoining business community, yet not too wide-angled to be effective in a recovery situation. Plus, with all the toolkits and online resources available today, disaster coordinators can often be daunted into using a guide that doesn't appropriately suit their needs.

To say that I was pleasantly surprised by the 2006 version of the document would be an understatement (turns out it's good enough for the Army Corps of Engineers to use, which is a pretty strong endorsement).

Entitled Regional Disaster Resilience: A Guide for Developing an Action Plan, the guide is a thorough, easily understood laundry list of short-, medium- and long-range action items across a multitude of focus areas (cyber threats, public-private partnerships, risk assessment, etc.).

Although not all the information is wholly suitable for regional councils, it can be easily massaged into a workable plan. Once I have a better understanding of the direction Version 2.0 of the document is taking, I'll be sure to pass it along.

In the mean-time, please read through the guide and submit any thoughts in the comment box below: http://www.tisp.org/index.cfm?cdid=10962&pid=10261

Cheers,
Mike Bellamente
Program Manager - Resilient Region Initiative
NADO Research Foundation
http://twitter.com/ResilientRegion


P.S. The NADO Research Foundation would like to recognize The Infrastructure Security Partnership (TISP) for all their great work in the realm of disaster resiliency: http://www.tisp.org/

Thursday, January 14, 2010

Recommendations for Improved Federal Response

As a result of last month's post-disaster recovery retreat in Cassopolis, Michigan (see Vegas of the North post), the International Economic Development Council, in partnership with NADO and BCLC, has drafted a series of recommendations on how our federal partners (FEMA, HUD, SBA, EDA, etc) could assist communities in taking a more proactive approach to economic recovery following a disaster event.

The formal paper will be available on our website shortly, but in the meantime here are a list of the recommendations proposed:

1. Establish a cognizant federal agency responsible for post-disaster economic recovery and provide appropriate resources.
2. Establish a special fund for economic recovery in the amount of $100 million to be kept on hand at the federally-designated agency for post-disaster economic recovery.
3. Remove the log-jam at the federal level in terms of the application review and use of federal funds as they relate to post-disaster economic recovery.
— Expedite the application process for federal funds
— Improve the consistency of requirements among federal programs
— Update federal criteria/regulations to meet post-disaster realities
4. Provide a trigger mechanism for waiving certain regulations on the use of federal funds in the unique situation of a disaster.
5. Consider adding “disaster recovery” as a fourth national objective to HUD’s CDBG Disaster Recovery Assistance program, OR consider redefining the third national objective so that eligible activities also meet economic recovery needs and can be used for a longer period of time relative to the size and scale of the disaster.
6. Change regulations to enable community organizations to use federal funds, including CDBG funds, for regional marketing and branding purposes.
7. If a community is planning to use federal dollars for a business loan program, ensure that program funds get de-federalized after initial use for maximum flexibility in the long-term financing of economic recovery.
8. Provide greater flexibility in the use of federal funds for increasing local capacity for economic recovery. This includes covering the salaries of local and state public employees, as well as the salaries of contracting nonprofit organizations, which are providing business recovery services and needed technical assistance.
9. Provide greater flexibility in the use of federal funds for funding economic impact assessments from an independent, non-biased source.
10. The federal government should provide more information on the availability of different federal programs both before and after a disaster to help local communities better navigate the federal system.
11. The federal government should develop a central repository of best practices in economic recovery as a reference tool for local communities.
12. Design federal inter-agency agreements (IAA), such as the IAA between HUD and FEMA, so that state and local government are part of those agreements and initial working relationships.
13. Federal agencies should proactively explain the specifics of duplication of benefits (DOB) and should develop better systems to deal with DOB.
14. Increase federal funds for non-traditional loan programs and expand the use of funds to include equity financing and loan loss that can leverage private resources for immediate small business recovery needs.
15. Increase the industrial development bonds (IDB) single-issuance capacity to $50 million and provide a guarantee by the federal government to provide further assistance to small businesses.
16. Consider tax incentives similar to programs in ARRA that benefit small businesses.
17. Consider financial incentives similar to programs in the Gulf Opportunity Zone Act and ARRA whereby businesses are provided federal tax incentives to reinvest in disaster-impacted areas.
18. Consider financial incentives similar to programs in New York after September 11th and in ARRA that help government agencies raise capital to redevelop infrastructure critical to the business community.
19. Consider providing federal funds for wage subsidy and job training programs to provide immediate, medium- and long-term assistance designed to retain and attract workers. There is a precedent of an effective program developed in NYC after September 11th attacks.
20. Consider pre-positioning temporary housing for certain industries that are identified by communities as being core economic recovery and/or growth engines in the wake of a disaster. Also, consider re-inventing FEMA/federal government temporary housing programs for administration by local government with a market-driven site selection process.