8.2 Holmquist Add FloodingAGENDA SECTION:
NO. 8
ITEM
NO. 2
CITY OF SALINA
REQUEST FOR COMMI SS ION ACTION OATE
5/6/1985
Adm i n i s tra t i on OR I G I NAT I NG DEPARTMENT:
City Clerk
D. L. Harrison
BY:
TIME
4:00 P.M.
APPROVED FOR
AGENDA:
BY:
Request from Paul Adrian, of the Salina Board of Realtors, who wants to address
the City Commission on the Wilson and Company Flood Control Program and the
Federal Emergency Management Agency report.
COMMISSION ACTION
MOTION BY
SECOND BY
TO:
FOR CITY COMMISSION MEETING 5-6-85
FIRST OF ALL, 'YOUR HONOR, MAY I TAKE THIS OPPORTUNITY TO
EXPRESS TO YOU AND YOUR FELLOW COMMISSIONERS THE DEEP APPRECI-
ATION OF THE SALINA BOARD OF REALTORS® AND ITS BOARD OF
DIRECTORS FOR THE COURTESY YOU HAVE EXTENDED TO US IN ALLOWING
ME TO PRESENT TO YOU TODAY THE FOLLOWING STATEMENT:
AS WE REVIEW AND STUDY THE FEMA PROGRAM, AS PROPOSED TO
BE ENACTED BY AN ORDINANCE, WE HAVE COME UP WITH TWO OR THREE
BASIC CONCERNS AND THEN AN ADDITIONAL TWO OR THREE ENDORSEMENTS
THAT WE WOULD LIKE TO PASS ON TO YOU TODAY.
LET ME BEGIN THEN, FIRST OF ALL, WITH OUR CONCERNS. THE
FEMA PROGRAM AS IT IS NOW CONSTRUCTED AND PROPOSED IS, WE THINK,
AN ATTACK ON PERSONAL PROPERTY RIGHTS OF CITIZENS IN THE CITY
OF SALINA. A CURSORY EXAMINATION OF THE FLOOD MAP AS PRESENTED
TO THE CITY AND THE PUBLIC WOULD IMMEDIATELY SHOW THAT THERE
ARE APPROXIMATELY 500 TO 1,000 PROPERTY OWNERS IN THE CITY OF
SALINA, WHO, UNDER THIS PROGRAM AND/OR PERHAPS BY AN ACT OF
GOD, WILL HAVE THEIR PROPERTY VALUE REDUCED FROM ITS CURRENT
FAIR MARKET VALUE TO AS LOW AS POSSIBLY ZERO.
JUST LAST WEEK, OUR MAYOR SIGNED A PROCLAMATION PROCLAIMING
LAST WEEK PRIVATE PROPERTY WEEK IN THE CITY OF SALINA. WE THINK
ALL OF US HERE TODAY REALIZE THAT ONE OF THE MOST IMPORTANT
BUILDING BLOCKS OF A FREE AND DEMOCRATIC SOCIETY SUCH AS OURS
IS THE CONSTITUTIONALLY GUARANTEED RIGHT TO OWN, BARTER, BUY,
SELL AND FREELY EXCHANGE PRIVATE PROPERTY. ONE OF THE PROBLEMS
REALTORS® ON THE SALINA BOARD OF REALTORS®' COMMITTEE ON FLOOD
CONTROL AND/OR THE MAYOR'S "TASK FORCE COMMITTEE," ... ONE OF
THE THINGS THESE REALTORS® KEPT RUNNING INTO, AS THEY DISCUSSED
THE PROGRAM WITH~FEMA AND GOVERNMENTAL OFFICIALS, WAS THIS
EMBARRASSING QUESTION, "SINCE THE PLAN, AS PRESENTED TO THE
CITY OF SALINA, HAS BEEN IN THE MAKING FOR 5 oR MORE YEARS,
WHY IS IT THAT AT THE LAST MINUTE YOU ARE RAISING ALL OF THESE
OBJECTIONS?"
THIS SITUATION IS LIFTED OUT NOT TO POINT AN ACCUSATORY
FINGER AT ANYONE, BECAUSE IF WE ARE GOING TO GET INTO THE
PROCESS OF LAYING BLAME, I THINK THERE IS ENOUGH TO GO AROUND,
INCLUDING THE SALINA BOARD OF REALTORS®. BUT IT IS LIFTED UP
TO POINT OUT THAT THE ENTIRE FEMA PROGRAM HAS NOT HAD AN OPEN,
ABOVE-BOARD, HONEST, GIVE-AND-TAKE DEBATE IN WHICH ALL CITIZENS
WERE MADE COMPLETELY AWARE OF ITS IMPLICATIONS. WE SINCERELY
DOUBT THAT 10% OF THE 500 TO 1,000 REAL ESTATE OWNERS -- WHO
ARE AFFECTED IN THIS DEVALUATION BY FEMA -- HAVE ANY IDEA OF
EXACTLY WHAT IT WILL MEAN. IF THEY REALLY UNDERSTOOD, WE WOULD
VENTURE A GUESS THAT THERE WOULD BE A LONG LINE OF CLIENTS AND
ATTORNEYS AT OUR COURTHOUSE DOORS TODAY, SEEKING INJUNCTIVE
RELIEF.
THIS IS A RATHER HARSH STATEMENT, BUT LET ME EXPLAIN TO
YOU EXACTLY WHAT IS HAPPENING. THROUGH NO FAULT OF THEIR OWN,
PEOPLE IN SALINA, KANSAS, HAVE ACCEPTED AT FACE VALUE THE
VALIDITY OF A CITY HALL BUILDING PERMIT WHICH ALLOWED SOMEONE
TO BUILD A STRUCTURE IN A GIVEN POINT WITHIN THE CITY LIMITS.
THEY HAVE EVALUATED THAT STRUCTURE, DETERMINED WHETHER IT WOULD
FIT THEIR NEEDS AND PURPOSE~ AND HAVE PAID MARKET VALUE FOR IT.
IF THIS PROGRAM IS ADOPTED, THOSE SAME PEOPLE ARE GOING TO WAKE
UP TO THE FACT THAT THEIR PROPERTY'S REAL VALUE HAS DEPRECIATED
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TREMENDOUSLY. PEOPLE DO NOT UNDERSTAND WHAT FEMA MEANS WHEN
IT KEEPS REFERRING TO "THE 50% RULE." THEY DO NOT UNDERSTAND
THAT IT IS REALLY A 25-30% RULE. THERE IS NO QUESTION AS TO
WHAT CAN AND WILL HAPPEN.
EXAMPLE: HERE IS A FAMILY THAT OWNS A $60,000 HOUSE. THAT'S
FAIR MARKET VALUE ON TODAY'S MARKET. AFTER YOU ADOPT THE FEMA
PLAN, THE FAMILY EXPERIENCES A FIRE LOSS. AND LET'S ASSUME
THE FIRE DEPARTMENT EXTINGUISHES THE FIRE. IT CALCULATES THE
DAMAGE TO THE STRUCTURE FROM BOTH FIRE AND WATER, TO BE $20,000.
NO PROBLEM, $20,000, THAT'S LESS THAN 50%. THE FAMILY GOES
RIGHT DOWN TO CITY HALL TO GET A PERMIT TO REBUILD. CAN HE
REBUILD THE STRUCTURE? NOT SO! NOT UNDER THE FEMA PROGRAM.
FROM FAIR MARKET VALUE OF $60,000, WE HAVE TO SUBTRACT THE
VALUE OF THE LOT AND ALL OF ITS APPURTENANCES. LET'S SAY THAT
THE LOT, THE STREET, THE SEWER AND THE WATER ARE WORTH APPROX-
IMATELY $20,000. YOU SUBTRACT $20,000 FROM $60,000 AND YOU
COME UP WITH A NET VALUE OF $40,000. NOW THERE IS ONE OTHER
LITTLE FACTOR IN THERE, THE MAN HAPPENED TO HAVE A DETACHED
GARAGE ON THE LOT, NOT AFFECTED BY THE FIRE. SO YOU SUBTRACT
$5,000 MORE FROM THE STRUCTURAL VALUE BECAUSE THE GARAGE
WASN'T INVOLVED IN THE FIRE. YOU NOW HAVE A REMAINING VALUE
OF $35,000, AND HE HAD A $20,000 LOSS. WHEN THE PERMIT IS
REQUESTED, HE IS ADVISED, "OH NO, YOU CANNOT REBUILD THAT
STRUCTURE BECAUSE YOU HAVE HAD MORE THAN A 50% LOSS."
WHERE DOES THIS MAN STAND? LET'S EXAMINE HIM ONE STEP
FURTHER. BEFORE THE FIRE, HE HAPPENED TO HAVE A $40,000
MORTGAGE. HE GETS HIS $20,000 CHECK FROM THE INSURANCE
COMPANY AND THE MORTGAGE COMPANY SAYS, "AH-HA, WE ARE ON THE
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CHECK WITH YOU BECUASE WE HOLD A FIRST MORTGAGE LIEN ON THIS
PROPERTY. GIVE US THAT $20,000." WHICH HE DOES-- ~THEN THEY
SAY, "NOW, YOUR MORTGAGE HAS BEEN REDUCED TO $20,000, PAY UP."
THE MAN SAYS, "BUT I DON'T OWN ANYTHING, ALL I HAVE IS A VACANT
LOT." THE MORTGAGE COMPANY SAYS, "WELL, WE'LL ACCEPT A DEED
FOR THE OTHER $20,000." HE GIVES THEM THE DEED. SO WHERE IS
HE? HE'S OUT IN THE MIDDLE OF THE STREET. HE THOUGHT HE HAD
A $20,000 EQUITY YESTERDAY MORNING WHEN HE WOKE UP. TODAY HE
FINDS THAT HE OWNS NOTHING. HE HAS LOST HIS ENTIRE PROPERTY.
THIS, GENTLEMEN, IS EXACTLY WHAT CAN OCCUR IN THE CITY OF
SALINA STARTING THE DAY AFTER YOUR ORDINANCE TO ADOPT THE FEMA
PROGRAM IS PUBLISHED AND BSiCOMES FINAL. AND THAT'S NOT THE
END OF IT. EVERY PROPERTY OWNER WITHIN THAT FLOOD AREA, AS
DESIGNATED BY OUR MAP, IS IN EXACTLY THE SAME POSITION THAT
THIS FICTIONAL CHARACTER WAS. WE THINK THE FEMA PROGRAM,
BECAUSE OF "THE 50% RULE," IS, IN EFFECT, CONDEMNATION OF
PRIVATE PROPERTY WITHOUT DUE RECOURSE AND WITHOUT COMPENSATION.
TWO OF THE FUNDAMENTAL REQUIREMENTS FOR THE LAW OF EMINENT
DOMAIN TO BE EXERCISED.
YOU SEE, GENTLEMEN, WE ARE NOT TALKING ABOUT A SHANTY
TOWN THAT SPRANG UP ILLEGALLY AND JUST KIND OF GREW AND
HAPPENED TO BECOME A PART OF OUR CITY BY ACCIDENT -- WE ARE
TALKING ABOUT REAL PROPERTY, REAL HOMES IN SOUTH SALINA, IN
DOWNTOWN SALINA, IN ALL OF NORTH SALINA, IN THE BUSINESSMEN'S
ASSOCIATION DISTRICT OF NORTH SALINA -- ALL OF THIS PROPERTY
IS IN THE SAME CATEGORY AND SUBJECT TO THE SAME HAZARDS AND
THE SAME DEVALUATION. OUR ONLY CONCERN, OUR ONLY REASON, OUR
ONLY PURPOSE IN RAISING THIS CONCERN BEFORE YOU TODAY IS THAT
WE ARE CONVINCED THAT LESS THAN 10% OF THE PEOPLE INVOLVED IN
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THIS HUGE DEVALUATION PROCESS HAVE THE SLIGHTEST IDEA HOW IT
AFFECTS THEIR PRQPERTY. .'
WE STRONGLY URGE YOU, THE MEMBERS OF OUR CITY COMMISSION,
WHO ARE GOING TO BE RESPONSIBLE FOR WRITING THE ORDINANCE, TO
USE YOUR COLLECTIVE-INTELLIGENCE TO WORD IT IN SUCH A WAY AS
TO MAKE IT PALATABLE AND TO ELIMINATE, IF POSSIBLE, THE
CONFISCATORY PORTION OF THE ORDINANCE. AS I SAID, THESE AREN'T
SHANTY TOWN OWNERS, THESE ARE PEOPLE WHO HAVE TRUSTED OUR CITY,
THEY HAVE TRUSTED OUR ZONING ORDINANCES, THEY HAVE TRUSTED THE
REALTORS®, THEY HAVE TRUSTED THEIR NEIGHBORS, AND SUDDENLY
THEY FIND THEY ARE A DISCRIMINATORY CLASS. JUST THINK OF THE
INEQUITY THAT EXISTS. THERE ARE PLACES IN TOWN WHERE IF YOU
LIVE ON THE EAST SIDE OF THE STREET, WHAT I DESCRIBED TO YOU
IN THE EXAMPLE IS WHAT'S GOING TO HAPPEN TO YOU. BUT IF YOU
LIFE ON THE WEST SIDE OF THE STREET, YOUR MARKET VALUE IS GOING
TO REMAIN THE SAME, OR POSSIBLY EVEN GO UP.
THOSE OF US THAT LIVE IN KANSAS, ARE EXTREMELY FORTUNATE
TODAY BECUASE WE HAVE THE NUMBER 3 MOST IMPORTANT AND POWERFUL
MAN IN THE UNITED STATES IN WASHINGTON, D.C., AND I'M REFERRING
TO ROBERT DOLE. AND I'M SURE THAT ROBERT DOLE AND NANCY
KASSEBAUM AND PAT ROBERTS WOULD EXTEND TO YOU, IF YOU REQUEST
IT, THE SAME COURTEOUS COOPERATION THAT THEY HAVE EXTENDED TO
OUR STATE AND NATIONAL REPRESENTATIVES. QUINN PEATLING, WHO
SERVES ON OUR LOCAL AND STATE LEGISLATIVE COMMITTEE, JUST
RETURNED FROM A NATIONAL LAND USE MEETING IN D.C., WHERE SHE
MET WITH THE FEMA PEOPLE. MR. DOLE WAS MOST HELPFUL. I AM
SURE THEY WILL EXTEND TO YOU THE SAME COURTESY THAT ALICE
DENNING HAS FOUND THEY EXTENDED TO HER AS SHE REPRESENTED US
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IN THIS MATTER IN VARIOUS PLACES. JOE MENDICINA, OUR ZONE 5
CHAIRMAN, IS VERY ANXIOUS TO EXTEND TO YOU THE FULL COOPERATION
OF THE KANSAS ASSOCIATION OF REALTORS® AND THE NATIONAL
ASSOCIATION OF REALTORS®. WE DO, GENTLEMEN, HAVE AVENUES OF
ACCESS AND WE WANT TO BE HELPFUL.
REMEMBER THAT ANY REGULATION THAT WAS CONCEIVED BY MAN
AND PUBLISHED IN THE FEDERAL REGISTER AND THEREBY HAS THE
EFFECT AND FORCE OF LAW, CAN ALSO BE CHANGED WITH EXACTLY THE
SAME PROCEDURE IF WE UNITE OUR FORCES AND PLACE THE EMPHASIS
AND CONCERN AT THE POINT OF GETTING THINGS CHANGED. NOTHING
IN A DEMOCRACY IS CAST IN CEMENT. EVERYTHING HAS TO BE AT THE
WILL OF THE GOVERNED. AND, YES, WE KNOW THAT THE APPEAL
DEADLINE IS MAY 22, BUT EVEN THOUGH IT IS, THERE ARE AVENUES
THAT CAN BE PURSUED AND EXPLORED AND EXPANDED STILL AVAILABLE
TO US. I KNOW THAT ALICE DENNING, DEAN BOONE, GWEN PEATLING,
JOE MENDICINA, AND ANYONE ELSE ON THE BOARD WHO IS KNOWLEDGEABLE
AND UP-TO-DATE ON THESE AFFAIRS WILL BE GLAD TO HELP YOU SEEK
OUT THE POINTS OF PRESSURE THAT SHOULD BE APPLIED.
I JUST SIMPLY CANNOT FIND STRONG ENOUGH WORDS TO USE
WHEN I AM TALKING ABOUT THE CONFISCATORY NATURE OF THESE
REGULATIONS. I THIN~ AGAIN, THAT USING YOUR COLLECTIVE WISDOM
CAN MAKE THIS FEMA PROGRAM PALATABLE. ONE METHOD THAT COMES TO
MIND IMMEDIATELY IS, IF "THE 50% RULE" WERE TO APPLY ONLY IN
THE EVENT OF FLOOD LOSS, I DON'T THINK ANYBODY WOULD FIND
FAULT WITH IT. BUT THE FACT THAT DAMAGE CAN OCCUR BY AN ACT
OF GOD OVER WHICH MAN HAS ABSOLUTELY NO CONTROL, OTHER THAN
FLOOD, AND HIS PROPERTY CAN BE DEVALUATED TO ZERO, THIS, WE
THINK, IS UNJUST. THIS, WE THINK, IS UNCONSTITUTIONAL. THIS,
WE THINK, IS ABSOLUNTELY UNCONSCIONABLE.
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NOW, LET ME COME QUICKLY TO SEVERAL RECOMMENDATIONS
WE WANT TO MAKE TO YOU WITH FULL ENDORSEMENT AND SUPPORT.
NUMBER ONE, WE SUPPORT THE USAGE OF PART OR ALL OF THE
WILSON FLOOD CONTROL PROPOSALS THAT WILL BE MADE TO YOU
TUESDAY. WE THINK THAT BY INITIATING THEM AND PURSUING
THEM AND COMPLETING THEM, WE WILL ELIMINATE MUCH OF THE
FLOODWAY IN SOUTH SALINA, WHICH, IN TURN, WILL ELIMINATE
MUCH OF THE FLOOD PROGRAM IN NORTH SALINA. WE HEARTILY
ENDORSE IT AND WE URGE YOU TO TAKE IMMEDIATE AND SWIFT ACTION
ON ANY PORTION OF IT THAT YOU FEEL WILL HELP THE POOR HOME
OWNER CAUGHT IN THIS DELEMMA. AS POINTED OUT BY GEORGE SYBRANT1
THESE EFFORTS SHOULD BE COORDINATED WITH THE CORPS SO THAT
FEMA WILL GIVE US CREDIT FOR THE CORRECTIONS.
OUR SECOND RECOMMENDATION IS THAT YOU WORK AS EXPEDITIOUSLY
AS HUMANLY POSSIBLE TO COMPLY WITH THE CORPS' DEMAND THAT WE
DO SOMETHING WITH THE A. J. HOLMQUIST ADDITION AND THE PROBLEM
THAT IT CREATES FOR OUR DIKE SYSTEM. WE HOPE THAT YOUR REPLY
ON OR BEFORE THE 20TH DAY OF MAY WILL BE EXACT, WILL BE CONCRETE
AND TO THE POINT WITH SPECIFIC COMPLETION DATES, THEREBY,
ELIMINATING THE CORPS' THREAT TO DECERTIFY OUR ENTIRE DIKE
SYSTEM, WHICH COULD PUT 90% OF THE CITY OF SALINA IN THE 100-YR
FLOOD PLAIN.
WE ARE FULLY AWARE, GENTLEMEN, THAT BOTH OF THESE RECOM-
MENDATIONS ARE GOING TO COST MONEY AND, REGARDLESS OF WHERE
YOU FIND THE MONEY, WHETHER IT IS BY REVENUE BONDS, GENERAL
OBLIGATION BONDS, BENEFIT DISTRICTS OR SALES TAX REVENUE,
THE AMOUNT OF MONEY THAT YOU WILL SPEND ALLEVIATING THE PAIN
OF THE FEMA FLOOD PROGRAM WILL BE WELL WORTHWHILE.
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GENTLEMEN, IN SUMMARIZATION, LET ME CLOSE BY SAYING THAT
THE DEVALUATION OF PROPERTY IN THE CITY OF SALINA THAT DID
OCCUR AS A RESULT OF.THE GREAT DEPRESSION OF THE EARLY 1930's,
WILL BE DWARFED AND MADE MINUSCULE IN COMPARISON TO THE
DEVALUATION THAT IS GOING TO TAKE PLACE IN THE CITY OF SALINA
THE DAY AFTER YOU PASS THE CITY ORDINANCE THAT ENCOMPASSES AND
EMBRACES THE FEMA PROGRAM AS IT NOW EXISTS. YOU WILL ERODE
YOUR TAX BASE BY MANY, MANY MILLIONS OF DOLLARS. YOU WILL
STIFLE ECONOMIC GROWTH WITHIN THE CITY. YOU WILL CREATE A
DRAG ON THE ECONOMY OF OUR CITY. YOU WILL STIFLE INCOMING
NEW BUSINESS. YOU WILL CAST A SHADOW OVER ALL THE cITY THAT
WILL TAKE YEARS AND YEARS TO OUTLIVE. WE MUST, WE SHOULD AND,
WITH YOUR HELP, WE WILL FIND A WAY OUT OF THIS DILEMMA.
I KEEP REMEMBERING THAT A WORLD OF PASSIVE NONINTERVENTIONIST
PEOPLE GAVE A PAPER HANGER THE OPPORTUNITY TO TRY TO CHANGE THE
WORLD. MAY THE GOOD LORD NOT LET US BE AMONG THEM IN OUR FUTURE.
George Sybrant, Attorney at Law, 200 N. Summit Street, Arkansas
City, Kansas 67005, who spoke to the Board of REALTORS® in a
public meeting on 3-13-85 regarding FEMA.