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FM Diversion and Dam Increases national debt

Red River Diversion Information Guide – What will the Diversion Cost You?

Fargo Moorhead Dam
Red River Diversion Information Guide

DOWNLOAD> Fargo Moorhead Dam and Red River Diversion Information Guide [789k]

Fargo Moorhead Dam and FM Diversion Dam and Reservoir Location
The Fargo-Moorhead Metro Flood Study Group has recommended a

36 – mile channel

with a

54,000 acre dam and reservoir

to protect Fargo and Moorhead from a 500-year flood.

This plan will lead to the destruction of farms, communities and businesses south of the diversion channel, Clay and Cass counties and northern Richland and Wilkin counties.

The fully-funded cost of the project, with contingencies, is currently estimated to be $2 billion dollars.

$1.1 billion of this amount will need to be raised by Fargo and Moorhead.

Sales taxes are projected to raise only $420 million over 20 years and protection provided by the diversion is 10 years away at minimum, or may never happen.

Federal deficits are at record levels and Minnesota has its own deficit problem. All of this casts serious doubt on how much funding is truly available.

What Is the Impact?

Fargo Moorhead Dam and FM Diversion Red River Control Structure

Fargo Moorhead Dam and FM Diversion - People


•  1,100 structures are affected, including 400 residences affected. A majority of these
   homes will be eliminated to hold water in the upstream Dam, located just south of the
   Fargo school district boundary.

•  54,000 Acres dammed up and under water including mature communities. The dam
   shifts ponded water from the current flood plain south to the new reservoir and dam
   area. The result is an expansion of Fargo’s available growth area at the expense
   of those in the newly formed (and currently dry) reservoir area.

Fargo Moorhead Dam and FM Diversion - Economics


•  Financial institutions are reluctant to extend financing for property purchases and
   improvements in and around the proposed reservoir. Property owners in this area
   are uncompensated captives of an artificially destroyed real estate market.

•  Economic impact to schools. 20% enrollment and 25% taxable revenue reduction in
   Kindred. 19% enrollment and 23% taxable revenue in Richland.

Fargo Moorhead Dam and FM Diversion - Farm Community


•  Under U.S. Army Corps guidelines, purchases of farm structures are not based on
   replacement value, but on “market” value. The difference is quite substantial.

•  The Federal crop insurance program provides no coverage for losses caused by
   manmade structures that are designed to hold water.”

Fargo Moorhead Dam and FM Diversion - Environment


•  Extreme project design complexity. Five rivers intersect with the diversion,
   including the Wild Rice, Sheyenne, Maple, Rush and Lower Rush Rivers.

•  This complicates fish passage, migration and mortality while increasing overall
   environmental stress.

•  19 Highway and 4 Railroad bridges require re-building to heights above the
   diversion, including I-29 and Highway 75 in MN.

•  When asked at public meetings, the Army Corps of Engineers cannot identify
   another project in the U.S. with this level of complexity.

The chart below shows the relationship between
contributions and costs of the diversion over a
20 year period – which is the length of time for the sales tax.

What will the Fargo Moorhead Dam and FM Diversion cost you?

Are protected residents ready to pay for this revenue shortfall?

Fargo/Moorhead responsibility: Local Share + Unplanned Costs = $1.52 Billion

Revenue Sources: Fargo Tax + Cass County Tax + MN Share + ND Share = $830 Million

Shortfall: Local Share – Revenue Sources = $690 Million**

** This value does not include costs for current levee work, public relations firm and lobbyist firm in Washington DC

Note: Interest = Bonds estimated at 4%

The only way to pay for this project is to impose massive taxes
on the properties located inside the diversion.

Fargo-Moorhead can be protected without
destroying Red River Basin communities.

A Dam & Reservoir is not needed!

Fargo Moorhead Dam and FM Diversion - HOW

The Red River Basin Commission recent study shows: HOW

• Managing floodwater across the Red River Basin can eliminate upstream and
  downstream impacts of a diversion, and reduce flooding throughout the entire
  Red River Valley, preserving all our communities and economic growth for everyone.[1]

Fargo Moorhead Dam and FM Diversion - WHY

WHY: Do our local leaders insist on destroying communities and businesses
       with a dam when there are other viable options?

WE DON’T KNOW! The sponsors appear to be more interested in a quick fix
  for THEIR problem, instead of a permanent Red River Basin wide solution.

Fargo Moorhead Dam and FM Diversion - WHAT

WHAT: You Can Do!

• Request your local leaders and Congressional Representatives to work together
  TO SAVE EVERYONE in the Red River Valley from floodwaters. It’s an opportunity
  to do what’s right for the states of North Dakota and Minnesota, not what’s
  best for ONLY Fargo!

Fargo Moorhead Dam and FM Diversion - Potential Assessments

Potential Tax Assessment ( 2011 dollars )

All Data is sourced from the U.S. Army Corps of Engineers FEIS Study at their website:

FINDING LONG TERM FLOOD SOLUTIONS TOGETHER Report to State and Federal Officials on a Comprehensive Plan of Flood Strategies for the Basin of the Red River of the North 2009-2011 Draft 8-29-2011. Table D-16

Paid for by Concerned Citizens, Communities and Businesses

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