State awards Dutchtown grant for buyout

With the state's approval of a community development block grant, the flood-prone village of Dutchtown is one step closer to a long-awaited federal buyout.

The Missouri Department of Economic Development on Monday announced it had awarded $208,663 in community development block grant funds to help the village buy properties damaged by heavy flooding in 2011.

The Federal Emergency Management Agency has approved $797,758 toward the buyout, but under FEMA rules, the city must put up 25 percent of the project's estimated $1.2 million cost, said Doyle Parmer, who has helped coordinate the community's efforts to secure grants.

Parmer -- better known as "Dutchtown Doyle" -- said the block-grant money will count toward Dutchtown's match, but the village must put up $58,000 just to start the expensive and time-consuming buyout process.

"They've raised money with intersections and hot dogs and hamburgers and sodas and collected taxes and spent them wisely," he said.

Before the village can start buying properties and razing flood-damaged structures, it must select an appraiser, Parmer said.

That bidding process alone could take three months, he said.

Once the government makes an offer on a property, the owner has 90 days to decide whether to accept it, Parmer said.

The village also must let bids for demolition contractors, he said.

Once demolition starts, it should progress quickly, Parmer said.

"Once the process starts, [our] expectation is it'd be completed within 24 months," he said.

FEMA approved Dutchtown's application Nov. 23; Parmer said the village has 30 months from that date to complete the project.

Approval does not mean the government will write Dutchtown a check up front, Parmer said.

Instead, the community will be reimbursed as properties are purchased and razed, he said.

"The federal government's not just going to give you money. They'll reimburse you if you follow their process," Parmer said.

Last month, the Southeast Missouri Regional Planning Commission agreed to enter into a contract with Dutchtown to help the village administer the federal and state grants.

Parmer said the buyout, which could include up to 13 properties, is far from a panacea.

"It sounds like it's all gravy and it's all great, and it's not," he said.

Water damage has reduced property values in Dutchtown, meaning landowners likely will receive only 50 to 75 cents on the dollar for their properties, he said, and once appraisers establish a building's value, the amount is non-negotiable.

Still, Parmer said, it's better than continually fighting floods.

"You're looking at a guy that's going to take 50 cents on the dollar and run," he said. "I'm just going to put that 50 cents somewhere else."

epriddy@semissourian.com

388-3642

Pertinent address:

Dutchtown, MO