The Billion-Dollar Levee Question | Jackson Free Press | Jackson, MS

The Billion-Dollar Levee Question

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Downtown Jackson Partners President Ben Allen said Jackson has advantages over the suburbs, despite the city's challenges.

Archive of JFP Lakes/Levee Coverage

Downtown Jackson Partners President Ben Allen came out last week as an avid opponent of a levee expansion for Jackson, declaring that local taxpayers will not pay for it.

"This local share would have to be raised with taxes in Hinds and Rankin counties. A voter referendum would be needed for an increase in property taxes (to fund the levees), a legislatively approved sales-tax increase vote, or some other citizen-approved tax increase, and 60 percent of the voters in both counties would be necessary for approval," Allen wrote on the Downtown Jackson Partners Web site last week. "From Puckett to Pisgah, Edwards to Flora, Jackson to Pearl and on," (the tax increase would need) 60 percent approval. ... This will never happen."

Allen is a long-time fan of a Two Lakes plan proposed years ago by Jackson oil man John McGowan, arguing that the lakes plan (which has changed multiple times) is more friendly to development than the levee plan. Local voters, he said, will need incentives to finance any flood-control plan—and levees don't have the development components needed to convince residents to pay for flood control.

A Billion-Dollar Lakes Plan?

In 1979, heavy rainfall north of the city created a swell of rainwater that filled the Pearl River, sending a glut of water to Hinds and Rankin counties. The resulting flooding sauntered around the inadequate levee system and caught the city completely off guard, inundating sections of the downtown area and northern portions of the city, as well as spots in Flowood—doing more than $200 million worth of damage.

The federal government, through the U.S. Army Corps of Engineers, is offering a maximum match of $133 million for the expansion of the incomplete levee system currently girding portions of Hinds and Rankin counties. The only levee plan available so far dates back to 1996 when the emphasis shifted to Two Lakes.

"This (levee plan) could mean a 10- to 15-mill increase for all property owners (estimated 12 to 18 percent)," wrote Allen, whose property borders the river's flood zone and stands to increase in value from a lake development like that proposed by McGowan.

The lake plan is as cost-prohibitive as the levee plan, however, although Two Lakes supporters will not say that out loud. McGowan projects a $400 million price tag for his plan; assuming the federal government coughs up its $133 million earmark for the lake plan—despite the Corps' refusal to endorse any lake plan due to Environmental Protection Agency regulations.

The resulting deficit, after an additional $50 million gift from the state in the form of in-lieu payments and fiscal incentives, appears to be $235 million that taxpayers would need to cover—if the plan could somehow get around federal law.

Just like for a Corps-approved levee plan, property owners would have to finance the cost of Two Lakes through a general obligation bond and property tax hikes. However, a theoretical 5 percent TIF bond on the $235 million shortfall of the McGowan plan adds up to more than $100 million in interest over the 15-year life of the loan, equaling to a 5.8 mill increase to home-owners.

These numbers only reflect the property-tax increases necessary to handle estimated interest on a TIF loan for the lake project. Property owners might expect to pay about $22 million annually to pay down the principal, a nearly 13 mill increase (roughly $1,300 on a $100,000 home), in addition to expensive litigation costs that would result from environmental lawsuits.

The Corps warns that the McGowan plan costs would easily pass $1 billion because McGowan's plan does not include key environmental mitigation required 
by federal law, such as erosion walls to keep any islands within the lake from washing away.

A Dated Levee Plan

Allen argues on the DJP blog that the levee plan is an outdated relic of the 1990s. Two Lakes supporters, however, did not want other plans studied—they only wanted a comparison between the levee plan the Corps developed in the early 1990s and their preferred plan.

In fact, former U.S. Rep. Chip Pickering—a Republican Two Lakes supporters relied on to get Washington support for their plan—specifically instructed the Corps to study only the Two Lakes plan and the 1996 levee plan.

"There has been no new flood control thinking tolerated for over a decade," environmental engineer Pleasant McNeel, head of the Pearl River Basin Coalition, said Tuesday, adding that the results of the 2007 charrette featuring a Two Lakes-skeptical Andre Duany has not been released to the public.

This comparison against an outdated 1996 levee plan, currently the rage among Two Lakes backers, likely made McGowan's plan look better, even with its drawbacks and high costs.

"It is likely true that the Corps levee plan has its share of flaws. The levee plan was conceived in the early 1990s, and with all the emphasis placed on studying the Two Lakes plan, has remained static since 1996," McNeel said.

Allen echoes McGowan's warning that the old plan does not include additional local charges with which the city of Jackson will have to contend. The Corps, he says, estimates the total cost of the levees to be about $206 million, but does not include the price of installing $90 million worth of backwater pumps to empty two Jackson creeks over the levee floodgates in the event of a heavy local rainstorm.

The Corps will install the floodgates to prevent the rising river from sending downtown creeks over their banks, but pumps may prove necessary in the event of local rains corresponding with a heavy wash of floodwater from up north similar to the 1970 spring flood. Without the pumps, local rainwater filling the creeks during a 1979-style flood would beat hopelessly against the closed floodgates and have nowhere to go except over creek banks.

The Corps told members of the Rankin-Hinds Pearl Flood and Drainage Control District Levee Board last year that it found the likelihood of corresponding local rains in the event of a 1979 flood extremely unlikely. The city, for example, saw very little rain during the worst of the 1979 flood, the Corps said. Nevertheless, it rated the original levee plan's effectiveness at 79 percent due to the possibility.

Allen, who did not return calls for this story, said the city will have to eventually finance the pumps, however, and would have to cover a total share of about $162 million for the project. He says that the old levee plan would spell trouble for some Jackson businesses.

"A 100-yard swath on each side of all of the levees will be scorched earth, forever, to assist water flow in the flooded area. Adding this to the width of the levees will equate into a 300-yard-wide scorched earth area throughout the entire levee system," Allen wrote on the DJP blog, adding, "[T]here will be no development within the confines of the proposed Pearl River levees, unless one wishes to invest with cash. No bank will loan money in an area prone to flooding."

Allen also pointed out that none of the target area includes Rankin County.

Jackson insurance agent Hank Aiken said his business sits inside Allen's "scorched earth" section, along with Penn's Fish House and other businesses.

"I would be on the wrong side of the levees, so the city would be forced to buy me out, or eminent domain me out and bulldoze my office building, and probably pay me a fraction of what it's worth," Aiken said.

Aiken said his building, which has been in existence since 1978 and took three feet of water in the 1979 flood, would be in a much better position under the McGowan plan: "If McGowan's plan was in place, I would have lakefront property here, but if we get levees, I'd have to move. You can see why I'm a fan of the lake plan."

Under McGowan's plan, recalcitrant property owners would have to give up their property under eminent domain as well.

McNeel said that the city needs to get away from thinking that the only options are McGowan's Two Lakes plan or the 1996 version of the levee plan.

"What needs to be done now is what should have been done in 1996: engage the Corps and the public to ensure a comprehensive design that meets the needs of the Metro Area. I am sure there are incremental improvements that can be made to the plan along the way, and there is a unique opportunity to take advantage of the recreation resources available along the Pearl."

Not Just About Jackson

Local mayors comprise the majority of the levee board, and all fear backing a plan carrying a mill increase of more than 3 percent, making both the lake and levee plans tough choices. The board voted last month to endorse the levee plan over the lake plan, with two votes against the endorsements from Jackson businessmen Socrates Garrett and Leland Speed. Jackson Mayor Harvey Johnson Jr. voted with majority members of the board.

The Corps already rejected a lakes plan, due to environmental factors surrounding the inundation of wetland territory that houses endangered species of fish and turtles. The Corps also rejected a modest one-lake plan that advocates say had less of an impact on the local wildlife.

But residents outside Jackson are prepped to battle any lake plan, including Monticello Mayor Dave Nichols.

"I'm not trying to make enemies. I'm only looking out for my city," Nichols said. "The study says this: The way the reservoir is currently operated, with Two Lakes, Monticello and Marion County could receive up to two more inches of water in an Easter flood like the 1979 event. That's two more inches that we don't need. The reservoir operators aren't changing the way they operate, so I have to stand against this. If the reservoir folks turn around and say they'll operate the way McGowan wants them to, then I'll be all for it."

McGowan's plan relies on the Pearl River Valley Water Supply District altering its operating model for the Spillway dam from a structure intended to provide drinking water to a structure for providing flood control. The district holds a contract to deliver the necessary water over the dam for processing at the Curtis water treatment plant, and the Savannah Street waste water-treatment plant in Jackson. The contract does not include altering the volume of flow to protect the territory south of the dam from flooding.

Benny French, general manager of the Pearl River Valley Water Supply District, said the district had to work within tight rules, adding that the original design of the Spillway did not include flood control.

Rep. Bill Denny, R-Jackson, said he doubted the Legislature would get behind state financing of a levee plan, recalling a failed attempt to expand the Jackson levees in the 1990s. He said the levees plan is likely doomed because city residents may not agree to accept the property tax hike.

If local residents don't accept the plan, their priority may be running against the national attitude toward levees that has strengthened since Hurricane Katrina inundated New Orleans' weak levees in 2005. A study for the non-partisan, grassroots organization Levees.org by geographer Ezra Boyd concludes that levees more than pay for themselves when their cost is compared to the investment they defend. The report concludes that even though counties containing levees account for only 28 percent of the nation's counties, they contain 55 percent of the nation's population and more than 156 million people.

"People tend to build their homes near water," said Levees.org founder Sandy Rosenthal of New Orleans. "Rivers and lakes can supply a large municipal water supply, so people gravitate to these areas. Income is higher and poverty is lower where levees exist, so levees more than make up for their cost, considering the amount of money often invested in the communities they protect."

Denny said as much last year, complaining that his 1995 push for a bill completing the levees in the highly populated Jackson area was overrun by legislators living in sparsely populated areas.

"I said time and time again to opponents trying to kill my effort that 'you and your cow pastures are ignoring one of the most densely populated parts of the state,' and it just didn't seem to matter to them," Denny said.

Rosenthal argues that people tend to appreciate their levees because a huge portion of the population stands to gain from it. Even the people of New Orleans knew the value of levees prior to Katrina, despite Corps spokespeople there claiming immediately after the 2005 Hurricane Katrina devastation that they did not strengthen levees because of a lack of local match funding and public support.

"The idea that the levees in New Orleans failed because local residents didn't support the Corps' effort to upgrade the levees is just a story that Corps spokespersons told after the levees failed. No one checked the Corps' account to find out if there was any truth to it. There's nothing to back up that story," Rosenthal said. "The Corps never retracted their stories, even though they have been refuted by water resources planning and policy experts Douglas Woolley and Leonard Shabman."

Two years ago District Judge Stanwood Duval ruled out any accountability from the local population after finding the U.S. Army Corps of Engineers and the federal government responsible for the flooding destruction in New Orleans during Katrina—because the Corps there did not move to strengthen the levees. But Duval had to dismiss the case due to the financial liability protection afforded the Corps by the Flood Control Act of 1928. Duval ruled against the Corps again last year, deciding that "... the Corps' lassitude and failure to fulfill its duties resulted in a catastrophic loss of human life and property in unprecedented proportions... ."

As New Orleans continues to struggle with Katrina's remnants and resulting accountability issues, Jackson is gearing up for its own Katrina, Aiken says: "Something still needs to be done, but all we're getting is a lot of talk—years and years of talk."

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