FLOOD BUYOUT PLAN OUTLINED

State and city officials outlined Cape Girardeau's flood buyout program during a meeting Thursday night with affected residents.

More than 100 residents of the flood-prone Smelterville, Red Star and Highway 177 areas attended the meeting at Red Star Baptist Church to find out if and how they fit into the project.

Cape Girardeau has $1.2 million in state and federal funds with which to move residents out of the flood plain. Of that money, $742,000 has been set aside to purchase and demolish structures and $450,000 for relocation of residents.

Although there are approximately 150 homes in the affected areas, funding only will allow for the purchase of 50 homes and vacant lots.

"The way I see it, we will make 50 people happy and 100 people mad," said Ken J. Eftink, development services coordinator for the city.

After establishing a structure's first-floor elevation and comparing it to the 100-year flood level for that neighborhood, a list of 99 properties in order of priority was compiled. Houses with the lowest elevations are ranked highest on the list.

The city will make offers to owners according to their ranking on the list and will continue down the list until the buyout funds are exhausted.

Bud Katt, assistant director for the State Emergency Management Administration, said the hope is to expedite the buyouts as quickly as possible and have purchases completed before flood season arrives. That concern leaves no time for bartering.

"Some people falsely believe that the longer they hold out the more money they will get for their property," Katt said. "They don't understand the process."

Once an offer for the property is made, the owner has two weeks to make a decision. If the owner has not accepted after that period, he or she is passed over.

"Our goal is to get money to people who would like to move as quickly as possible," Eftink said.

Katt said the city and state also have a responsibility to buy as many properties as funds will allow and ensure that tax money is well spent.

"One thing that is important to understand is since we're spending tax dollars ... we have to demonstrate to anyone who challenges us that these projects are cost-beneficial to taxpayers," Katt said.

For every dollar spent, he said, it has to be proved that over a given period of time benefits greater than a dollar will be realized by avoiding future flood-related costs.

Owners who reside in eligible homes will have two buyout options and may choose that which benefits them most.

The first option is a straight buyout, which is appraised pre-flood value minus any previous assistance, loans or insurance claims already received. The second is land value plus relocation payment.

Under the latter option, the owner will receive the post-flood value of the property plus relocation money of up to $22,500, minus any previous benefits. The amount of relocation funds an owner is eligible for will be determined by the grant administrator.

Owners who rent the property are only entitled to the straight buyout.

Renters are eligible for a maximum of $5,250 in relocation money over a period of 42 months.

"If you are going to pay higher rent, we'll help you pay the higher rent," Eftink said. Recipients can also use the money for a down payment to purchase a home.

For owner-occupants, the Salvation Army is also offering some financial assistance in purchasing a new home.

Since January 1994, more than 3,500 pieces of property damaged during the 1993 and 1995 floods have been purchased in Missouri.