As information and numbers from the impacts of the flood come in, I thought I’d update my previous post with some links to articles about the impacts:
- Access – Many areas no longer have any functional road access – how does this affect property value in the short and long term (7 News – “The town of Estes Park is once again open and welcoming visitors”) (Denver Post – CDOT to release initial estimates later this week)
- Apartment Rents – many who have lost or damaged homes will need temporary housing during reconstruction, much of which will come from apartment stock. Unfortunately, vacancies are already near historic lows and rents have been continually increasing.
- Contractors and Equipment – construction labor was already in short supply, equipment vendors (heavy equipment, dumpsters (Denver Post “Waste Connections…has sent out several hundred roll-off trash containers…), portalets, generators) will be strained to keep up with demand.
- Eminent Domain – rebuilding (CDOT Actively repairing roadways) may require State and Local officials to acquire new rights of way or easements for construction and access.
- Economy – the floods represent a significant disruption to the the local and, to a degree, regional economies. The disruption will lead to significant losses, (DBJ – Property Losses Estimated at $2 billion) but the recovery period could result in a small “stimulus”, as private, federal money and insurance money flow in to help rebuild. However, most losses will not be covered by insurance. Demand for goods and services and labor will likely increase temporarily (9 News – Supplies at home Depot flying off shelves). (9 News – Contractors head to flooded areas)
- FEMA – (Denver Post – “Almost 400 FEMA workers are on the ground in Colorado”) (DBJ – FEMA snapped up 61,899 square feet of office space)
- Flood Hazard Areas – the scope of water movement will likely create new flood ways and flood hazard areas (FEMA grounds drones mapping flood areas).
- Home Inventory – early estimates indicate the number of homes lost at 1,500+ and over 17,000 homes damaged (Reuters – $900 million in residential losses in first snapshot of the extent of the damage). That is a significant amount of housing stock which will need to be replaced – in an already-tight market.
- Insurance – What is covered and what is not. (Weather.com – Colorado residents face huge costs) Insurance rates in local areas may increase in response to the multiple events Colorado has suffered recently – this will affect commercial property owners as well as residential.
- Oil and Gas – the impact on oil and gas development across Northeaster Colorado remains to be seen. (Reuters – Historic flooding….continued to disrupt oil and gas operations)
- Pollution – What is the impact of the raw sewage, hydrocarbons (7 News – release of thousands of gallons of crude oil into the South Platte River), – as well as the immense amount of storm debris which will need to hauled out (Denver Post – “The order of magnitude here is unreal”)
- Structural Engineering – does the concept of a 100 year or 500 year flood – which has been shattered in many areas, change the structural requirements for roads, bridges and buildings (Denver Post Foums Discussion – Big Thompson Engineering)?
- Taxes – Property Tax and income tax considerations (you may amend your 2012 tax return and claim the casualty loss deduction)
- Time – winter is coming. The windows for large- scale construction projects in mountain areas is shutting quickly.
- Values – how does this type of event get recognized and incorporated into property values and what is the long term impact.
- Water Rights – New topic (Greeley Tribune – River has moved away fro some diversion structures)
This is surely too short a list….