EDA Newsletter April 2009

Volume 2; Issue 4 

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In this Issue:

● The Economic Frontline of Soldiers Grove, Wisconsin

● Franklin, Virginia: Infrastructure to Incubation

● East Grand Forks, Minnesota: Invisible Flood Wall Spurs Investments and 

Opportunities

● EDA and Disaster Recovery

Building Disaster Resistant Regional Economies: 

The Economic Frontline of Soldiers Grove, Wisconsin

Natural and manmade disasters can take a devastating toll on communities and entire regions. 

Soldiers Grove, Wis., a small Midwestern village on the banks of the Kickapoo River, suffered a 

series of devastating floods over many decades. As a result of the floods, the city finally took 

steps to relocate the entire business district to avoid future flood problems. Through this effort, 

residents seized the opportunity to re-envision the village to become more economically, 

environmentally, and socially resilient. Soldiers Grove pioneered a new approach to disaster 

recovery. They created a new town center with buildings that were energy-efficient and solarheated, and in doing so, became the nation's first solar village.

Situated in the upper portion of the Mississippi River watershed, Soldiers Grove experienced its 

first major flood in 1907. Severe damage to the community, and major ongoing flooding in 

subsequent years threatened the community's long-term viability. For three decades, Soldiers 

Grove waited for a dam to be built, while being hit by four additional floods. Damage caused to 

downtown businesses sped the economic decline of the community. In 1974, the state of 

Wisconsin required Soldiers Grove to pass an ordinance that prohibited new construction in the 

business district igniting even more concern. Soldiers Grove also experienced other setbacks 

such as outmigration and reduced access to the business district.

With the town on the brink of collapse, local leaders were proactive in their response to take 

back their community, and decided to re-relocate the business district to elevated ground rather 

than attempt to control the river. Shortly after they began work on the relocation in 1978, a 

record flood occurred and severely damaged the village. Because the village had already begun 

to invest its own funds in relocation and was deeply immersed in the planning process, it was 

better able to secure federal funding. They received a little over $4 million in federal assistance 

from the U.S. Department of Housing and Urban Development (HUD), the U.S. Economic 

Development Administration and the U.S. Department of Interior. The balance of funding was 

provided through local, state and private allocations. Village leaders worked with specialists at 

the University of Wisconsin to conduct a feasibility study and along with a $900,000 investment 

from HUD, the relocation officially began in 1979. The four-year project included a careful 

planning process and strong community involvement.

The relocation of Soldiers Grove's business district solved several community problems, 

effectively demonstrating the concept of a "multipurpose recovery." Energy efficiency 

ordinances saved energy dollars they were losing to costly fossil fuels. The town center was 

relocated next to the state highway which had bypassed the town in the 1950s hurting 

businesses. An additional reservoir and municipal well were built outside the floodplain reducing 

the risk of contamination from ongoing floods. Sewer and water services were extended into 

new areas to sustain future population growth and expansion. Additionally, the old floodplain 

was developed into a municipal park. As a result, Soldiers Grove became a self-sufficient, 

resilient and economically stable community.

An innovative element of Soldiers Grove's relocation plan was the decision to make all of the 

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APA's Tools-of-the-Trade Part 

Three: Strategy 2 — Business 

Development Programs

While business retention and attraction 

are often at the frontline of economic 

development strategies, regions and 

communities should not overlook their 

own home-grown resources and 

capabilities to innovate. With a focus on 

local strategies, APA's Tools-of-the-Trade 

(Website) explores the value of 

community business development 

programs, entrepreneurship incentives 

and business incubators.

Federal Funding Opportunity 

Notice Available for EDA's 

American Recovery Program

EDA is now soliciting applications under 

its $150 million American Recovery Act 

Program. EDA is soliciting applications 

from eligible applicants in all U.S. states 

to fund projects that will advance 

economic growth in communities and 

regions experiencing chronic high 

unemployment and low per capita income.

EDA's goal is to create an environment 

that fosters innovation, promotes 

entrepreneurship and attracts increased 

private capital investment. The deadline 

for receipt of applications under the 

Recovery Act Program is June 30, 2010. 

All other information and requirements 

for the EDA American Recovery Act 

Program may be found in the March 10, 

2009, Federal Register notice (74 FR 

10232) and the companion federal 

funding opportunity announcement on 

EDA's Website.

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EDA Newsletter April 2009

buildings energy efficient and solar-heated. This relocated and redesigned central business 

district was the first of its kind in the nation. As a result, Soldiers Grove passed stringent energy 

performance standards, requiring that all new buildings gain at least half of their heating energy 

from the sun, and that businesses should position their buildings to maximize wind and solar 

impacts. The design and integration of renewable energy was imperative to maintain the 

community's economic stability. For example, lower energy costs meant more income for 

business owners, which prompted more job creation.

While the challenges that Soldiers Grove faced occurred almost four decades ago, there are 

several relevant lessons-learned that today's economic development practitioners should 

recognize to prepare for an emergency and subsequent recovery efforts, which include:

● Designating a community liaison to serve as a relocation coordinator, guiding the 

redevelopment and process stages of the revitalization efforts. Community support 

was a key element in Soldiers Grove's planning process;

● Creating quality of life, sustainability and economic development inventories to 

accurately assess the needs and desires of residents and business owners; 

● Ensuring that communities understand conventional energy use and how much 

money is leaving the community to pay for energy costs;

● Assessing available relocation sites to determine the most viable alternative energy 

options; and

● Seeking creative funding streams that address immediate construction concerns as 

well as long-range economic development strategies.

Today, Soldiers Grove underscores the successful marriage of disaster recovery and innovative 

economic development planning. The components of their innovative relocation project continue 

to be looked at as a valuable model for today's disaster affected communities. In the face of 

natural disaster, economic opportunity can be seized and leveraged through strategic crisis 

recovery and vision.

For more information on hazard mitigation planning and disaster recovery, please visit...

● American Planning Association, Hazards Planning Research Center (Website)

● U.S. Department of Homeland Security, Federal Emergency Management Agency 

(Website)

● ICLEI Local Governments for Sustainability, Building Resilient Communities 

(Website)

Franklin, Virginia: Infrastructure to Incubation 

"You Can't Drown a Great Town"

In September 1999, the city and community surrounding Franklin, Va. (Southampton County), 

suffered severe economic and physical damage from Hurricane Floyd. In downtown Franklin 

alone, 149 businesses sustained damage — an estimated $13 million in business losses. Many 

businesses were forced to close and the city lost about $2.5 million in tax revenue. In the 

Franklin/Southampton County area, an estimated $35 million in business, residential and public 

property building losses were sustained, and approximately $17 million in agricultural crop 

losses occurred.

The loss across business and industry forced Franklin to address several realities around the 

rebuilding of its community. As such, city leaders identified three core areas necessary to 

rebuild and create a disaster-resistant community of the future. As such, city leaders created a 

plan to address:

1. Permanent, flood resistant space for businesses. This includes identifying space 

where existing, flood-impacted businesses could survive and grow, and to allow for the 

start-up of new business facilities to help redress the loss of businesses and their jobs; 

2. Infrastructure improvement. Repairs and updates to infrastructure were necessary to 

make the community more flood resistant; and 

3. Secure Public Services. The damaged and outmoded government buildings in the 

downtown area, such as the Public Safety Building and the City Hall Complex, had to be 

improved and made flood proof through demolition, repair and improvement. This was 

necessary to return public services to a downtown location.

In 2001, EDA awarded Franklin $2 million to address:

Federal Funding Opportunity 

Available for EDA's University 

Center Economic Development 

Program

EDA is now soliciting applications for the 

FY 2009 University Center Economic 

Development Program competition, to 

take place in EDA's Atlanta and Seattle 

regional offices. A notice was published in 

the Federal Register (74 FR 7856). EDA is 

soliciting applications from accredited 

institutions of higher education and from 

consortia of accredited institutions of 

higher education in the geographic areas 

served by its Atlanta and Seattle regional 

offices.

The deadline for receipt of applications is 

April 21, 2009, at 5:00 p.m. Eastern Time 

for EDA's Atlanta regional office and 5:00 

p.m. Pacific Time for EDA's Seattle 

regional office. All other information and 

requirements for the FY 2009 University 

Center Economic Development Program 

competition may be found in the February 

20, 2009, Federal Register notice (74 FR 

7856) and the companion federal funding 

opportunity announcement on EDA's Web 

site at Website.

Brownfields 2009 Call for Session 

Proposals Closing Soon

Time is running out to submit your 

session proposal for Brownfields 2009 

(New Orleans, November 16-18)! Submit

your session proposal by the deadline of 

May 1, 2009.

Cosponsored by the U.S. Environmental 

Protection Agency and ICMA, the 

conference attracts more than six 

thousand registrants and hundreds of 

exhibitors. With more than 150 

educational sessions, the conference 

offers knowledge building, networking, 

and business development opportunities 

for beginners and experienced 

professionals. 

The conference organizers are particularly 

interested in new ideas related to 

economic redevelopment, innovative 

reuse strategies, green jobs, real estate 

and investment, environmental 

management and cleanup, technological 

solutions, community development, 

environmental justice, sustainable 

communities, leadership and 

management, financing and more. Don't 

delay. Submit your ideas now at the 

Website. For more information please 

contact Sean Tolliver or see the 

conference website.

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EDA Newsletter April 2009

● Renovation of an approximately 40,000 square-foot warehouse for use as the 

Franklin Business Incubator; 

● Demolition of the city hall complex with site improvements, including the elevation 

of the site for flood mitigation purposes. The site was eventually used for the new 

city hall complex; 

● Renovation of the public safety building to provide flood resistant, up-to-date space 

for police, fire and other public services; and

● Downtown infrastructure improvements, including the installation/construction/

rehabilitation of curbs/gutters, storm sewer piping, sidewalks, sewer lines, storm 

water retention improvements, roadway upgrades and all associated work.

These improvements allowed the city and the area to return to normal while helping to retain its 

existing small business community and to incubate new businesses. In fact, the Franklin 

Business Incubator, which opened its doors in May 2005 with eight tenants employing 12 

people, has continually grown in size and scope. As of February 2009, the site had a 100 

percent occupancy rate from a broad base of businesses sectors, ranging from information 

technology and engineering to graphic design, medical services transportation and others. Sixtytwo percent of FBI's business tenants are also small, women and minority owned businesses.

Additionally, the incubator has had several companies graduate to take up larger space in 

Franklin and the surrounding communities in Southampton County. With the growth of 

occupancy at the Incubator, the city of Franklin has seen economic benefits beyond job creation 

which includes: rent and taxes paid to the city; an increase in the average salary for incubator 

tenants and property values around the incubator that have increased by almost 75 percent. At 

the same time, the facility has become a symbolic focal point for the community's efforts to 

help local entrepreneurs start and grow businesses. The incubator sends an important message 

to local residents: If you want to start a business, Franklin will provide the resources necessary 

to succeed.

East Grand Forks, Minnesota: Invisible Flood Wall Spurs Investments 

and Opportunities

In the spring of 1997, East Grand Forks, Minn., suffered a flood of the Red River that damaged 

all but eight homes in the community. With water levels at 54-feet, the city was submerged and 

damage was estimated at $500 million.

In September 1998, construction began on an Invisible Flood Control Wall (IFCW) (it was 

completed in March 1999) that provided 980 linear feet of floodwall protection for the 

community. The IFCW is a removable wall that is only erected during the threat of the flood, 

which allows residents and businesses to benefit from the riverfront aesthetics and assets 

during non flood periods. The invisible flood wall was the first of its kind in the U.S. and was 

funded by an EDA grant. Since its construction, this type of wall has been embraced by 

communities across the country.

The benefits of the IFCW went beyond flood protection. The economic rebirth of the riverfront in 

East Grand Forks has been attributed to the protection provided by the IFCW.Retailers, such as 

a Cabala's (sporting goods store) and restaurants such as Applebee's, Whitey's Café, etc., set 

their sights on the scenic river area. Additionally the Riverwalk Center is a unique shopping 

facility filled with a variety of locally owned specialty stores.

East Grand Forks also renovated a 2200-acre lot that was once home to over 500 houses and 

buildings that were demolished after the flood. Currently, this area is now the Red River State 

Recreation Area, which features 72 campsites including 48 electric sites that have full hookups 

(sewer and water). The new recreation site also includes trails for walking and biking, areas for 

picnicking and rivers for fishing and boating.

Since the erection of the wall, the community has seen over $20 million in private investment. 

The construction of the IFCW protected the commercial properties of the community and 

created and retained over 500 jobs. Additionally, the community benefited from increased tax 

revenues that supported local government, schools and public services.

EDA and Disaster Recovery:

COMING SOON!

April 25-29, 2009

APA's 101st National Planning 

Conference; Minneapolis, MN [Website]

May 3-5, 2009

Southeast Workforce and Economic 

Development Conference; Atlanta, GA 

[Website]

May 3-5, 2009

National Conference on Corporate 

Community Investment (BCLC), Chicago, 

IL [Website]

May 5-7, 2009

CDFA's Annual Development Finance 

Summit, Pittsburgh, PA 

[Website]

June 1-4, 2009

2009 IEDC Technology-Led Economic 

Development Conference and IASP World 

Conference on Science and Technology 

Parks; The Research Triangle Park, NC 

[Website]

June 1-3, 2009

NARC 43nd Annual Conference and 

Exhibition, Denver, CO [Website]

June 2-5, 2009

Council for Community and Economic 

Research (C2ER) 49th Annual 

Conference, Kansas City, MO [Website]

August 29-September 01, 2009

NADO's 2009 Annual Training Conference, 

Chicago, IL [Website]

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As a reminder, EDA received $500 million in two supplemental appropriations in 2008 (one for 

$100 million, one for $400 million) to support long-term post-disaster economic recovery. EDA 

disaster recovery efforts assist communities in shifting their focus when appropriate from the 

short-term emergency response to the long-term economic impacts of the disaster, and 

enabling the development of an economic recovery program that reflects local priorities.

The Federal Funding Opportunity Notices for funding under these EDA supplemental 

appropriations are available at http://www.eda.gov/InvestmentsGrants/FFON.xml

Please contact your EDA Regional Office with questions on these funding opportunities. EDA 

Regional Office contact information can be found at: http://www.eda.gov/AboutEDA/Regions.xml

As background, EDA is the primary Department of Commerce bureau to assist with postdisaster economic recovery. While it does not have "first responder" duties or capabilities, EDA 

has a long and successful history of supporting long-term recovery following natural disasters. 

EDA played an effective role in previous disasters such as the Midwest Floods of 1993 and 1997, 

the 1994 California Northridge Earthquake, Hurricane Floyd in 2000, the Florida hurricanes of 

2004 and the 2005 Gulf Coast hurricanes.

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