Economic Resiliency. Mitigation

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1 Economic Resiliency Natural and man made disasters can have a devastating impact on the economic strength. Resilience is defined by Merriam Webster as An ability to recover from or adjust easily to misfortune or change. For a community economic resiliency is usually referred to in regards to how quickly and completely can a community recover from a natural disaster. A community s economic resiliency can also refer to how well a community recovers from a manmade challenge such as a major employer closing, an unexpected fire that destroys the facilities of a major employer or an economic downturn in the region. There have been increased natural disasters since 2000 and in many communities; no plan exists to prepare the private sector (businesses, trade associations, manufacturers and retailers) for disaster. According to the IRS, between 40% and 60% of businesses affected by disaster may ultimately close. A well constructed recovery strategy will help prevent that from happening in a community. There are four stages of the Disaster Cycle which are Preparation, Response, Recovery, and Mitigation. These stages will be addressed and what actions a community and the region can take to address them. 4 Stages of the Disaster Cycle Preparation Preparation Response Recovery Mitigation Mitigation Response Preparation Recovery Preparation is a continuous cycle of planning, organizing, training, equipping, exercising, evaluating, and taking corrective action in an effort to ensure effective coordination. Preparation steps are taken to ensure that key local employers and supporting resources are ready to jump into action quickly and that local businesses understand their roles and responsibilities in preparing for and responding to disasters. It is essential for local groups that will deal with disasters to know each other before the chaos starts. Building regional dialog between the private sector, economic Economic Resiliency 1

2 development representatives, business support organizations, planners, local officials, community leaders, emergency services and citizens is very important. Preparation also includes such activities as sandbagging, and evacuation. Some major actions that the region should work towards completing for Preparation include: Compile contact information for key stakeholders throughout the region and state. This list will be used to coordinate information gathering. Develop a communication strategy, including website and social media accounts, to provide business information that addresses both preparing for a disaster and critical resources during the recovery period. Develop a list of possible funding sources from federal, state, and local agencies. An agency or organization needs to be responsible for knowing the funding mandates before a disaster happens. EDA has two publications: Federal Disaster Recovery Funding: Minimizing Roadblocks to Maximize Resources and Navigating Federal Disaster Recovery Funding available at Provide workshops to aide businesses in preparing for disaster situations, including developing a business continuity plan, and have sessions led by experts in law, finance, and disaster preparation for local businesses. Use existing programs and networks to facilitate business to business mitigation mentoring. Response The Response period is generally the immediate 72 hours following a disaster. During this time the immediate actions are to save lives and protect property. For a business the top priorities should be to protect employees, the facilities and necessary information. Some major actions that the region should work towards completing for Response include: During the Response period it is vital to have social media sites (Facebook and Twitter) operational to provide current information and resources. Promote the site to businesses as the place to turn for key information post disaster. This could also be a place where displaced businesses can provide updated contact information. Communities should meet with businesses one on one to conduct a damage assessment survey to gauge business impact as soon as possible. Data will help in developing recovery programs and can simplify later grant writing. Economic Resiliency 2

3 Convene CEDS Committee Meeting to update the CEDS with an analysis of the current economic development problems and opportunities. Recovery Recovery involves the development, coordination and implementation of operations, services, infrastructure, facilities, and programs. Immediate recovery is typically measured in weeks or months. Long term recovery is measured in the years following an incident. The goal is new normal and as strong as or better than before the disaster. Community recovery after a disaster includes maintaining a healthy economy and this requires prioritizing elements which are not always as obvious as those aimed at preserving safety and health. Local community leaders need perseverance in seeking assistance from county, state or federal resources. Become knowledgeable about economic issues; the impact to jobs and wages can be a compelling argument when requesting aid. Some major actions that the region should work towards completing for Recovery include: Repairing and reconstructing water, sewer, transportation, utility, and information technology (IT) infrastructure should be top priorities for the community during the recovery phase. Use the communication systems that were set up during the Preparation stage to allow business owners onto their property. Communicate directly with businesses, and let the community or visitors know that businesses are still open. This is especially true for tourism dependent areas or when general access to businesses is affected. Set up a Business Recovery Center for counseling businesses by enlisting Small Business Development Center (SBDC) offices, community colleges and other business support organizations Provide funding and grant assistance. Encourage businesses to re evaluate their business plan and redefine themselves and their markets Schedule interviews with local journalists and media contacts 3, 6, 9 and 12 months after the disaster. During this recovery time elected officials and economic stakeholders should encourage dialogue in the business sector to proactively identify and address economic challenges. Economic Resiliency 3

4 Outside resources like the International Economic Development Council (IEDC) which have current information and can access expertise from across the country should be utilized when needed. Other organizations that could potentially assist communities with pro bono services include the American Institute of Certified Planners (AICP), the American Institute of Architects and American Society of Landscape Architects (ASLA). The community needs to help area businesses and owners feel less isolated by hosting outreach sessions. It s important for businesses to manage the message with their own employees, customers, suppliers and other partners. Regular communication updates should be relayed to these groups about recovery efforts, support opportunities, and progress. Communities need to celebrate the small successes as recovery continues, to keep the progress visible. This could include such successes as a business reopening their doors or paying back a microfinancing loan. Another way communities or organizations can assist the recovery is purchasing gift cards from locally owned businesses, and give them to the residents of the community. This can help drive traffic and purchases back into the businesses once the disaster passed. Mitigation Mitigation breaks the cycle of damage and repair. Mitigation actions are designed to reduce or eliminate a long term risk. The actions can be simple such as elevating a water heater and appliances in a basement that sometimes floods. Mitigation action can take a much larger approach such as a flood plain buyout program to eliminate repetitive loss properties, updating land use ordinances or building codes. Some major actions that the region should work towards completing for Mitigation include: Continue to include economic issues in the 5 County Natural Hazard Mitigations Plan. Identify potential funding sources to mitigate future disaster impacts on the community. Encourage businesses to review and update existing insurance coverage. Analyze where challenges in the communication of needs and resources occurred and define a better system. Identify key infrastructure improvements needed for disaster resiliency. Economic Resiliency 4

5 At any given time a community will be involved in at least one stage of the Disaster Cycle if not multiple stages. There are several efforts in the region that are working towards resiliency in the region. The 5 counties of the Economic Development District are currently working on updating the Natural Hazards Mitigation Plan (NHMP) which will be completed summer This plan is needed for communities to apply to FEMA for Pre Disaster Mitigation grant funds. In the NHMP each participating community has a specific risk assessment, mitigation activities and action items identified for their communities. There is also a set of general goals that were developed for the entire region. There are several communities working on developing projects to apply for funding. In 2013 the Illinois Valley Flood Resiliency Alliance started meeting because of Senator Rezin s efforts. This group is expanding across the region and is working toward reducing flood damage, especially along the Illinois River. The City of Ottawa has a Flood Commission to look at what specific efforts the city can take to reduce community damage caused by flooding. Each of the Counties have Emergency response plans for natural disasters. The North Central Illinois Emergency Management County Contacts are: Bureau County Keenan Campbell kcampbell@bureaucounty il.gov LaSalle County Connie Brooks cbrooks@lasallecounty.org Marshall County Rich Koch Mcema1@yahoo.com Putnam County Bob Cofoid rcofoid@yahoo..com Stark County Jason Musselman ema@starkco.illinois.gov Economic Resiliency 5

6 In order to become a resilient community 5 essential community requirements have been identified, Colten (2010). Community engagement vulnerable populations have to be part of the deliberation and planning stages, both to ensure they are not neglected but also to tap into their knowledge and networks. Resilience is about relationships. Leadership effective and trusted leadership is vital before and after the disaster. Leaders must understand their roles, and relationships; be responsive to constituents, cooperate with counterparts; be responsive to changing circumstances and learn from past experiences. Communication and coordination need effective and redundant communications; informal and formal networks; must be inclusive and reach all segments of population. Ongoing preparations and training long term process, update plans, train new leaders and information sharing. Flexibility plan for the unexpected, be ready for surprises; flexibility is needed at all levels. Colten, C. E. (2010). Building Community Resilience: A Summary of Case Studies in Charleston, Gulfport, and Memphis. Oak Ridge, TN: Community & Regional Resilience Initiative. Sequencing also plays an important role in resiliency. A community should focus on restoring highest priority functions first, those without which other functions cannot operate. The unfortunate part of working to become a resilient community is that benefits from those efforts generally aren t realized until after a disaster occurs. They are difficult to realize because the benefit from resiliency efforts generally are that something doesn t happen or damage doesn t occur which is hard for residents to realize and understand. Such as in when there is a flood buyout program is completed and another flood occurs there is nothing for the media to report because there is no damage because the homes have been removed. Website Resiliency Resources Economic Resiliency 6

7 Economic Resiliency Goal To minimize the damage and to shorten recovery time to the region s economic assets caused by natural and man made disasters. Objective 1: Advise communities and businesses on how to be prepared for disasters and recovery efforts. Objective 2: Understand the emergency response needs of businesses, industries, communities and counties within the region. Objective 3: Understand and prepare for how the loss of a major employer or downturn of the economy can affect the region s economy. Action 1: Action 2: Action 3: Action 4: Action 5: Action 6: Encourage existing and future mitigation and recovery planning efforts, such as natural hazard mitigation plans, emergency response plans, post disaster recovery plans, and identify the economic impact of disasters. Utilize existing information campaigns (i.e. FEMA, IEMA, Red Cross, SBA, Restore Your Economy, ready.gov) to educate people and businesses about the hazards they face, how to protect themselves, and how to recover. Organize workshops to aid local businesses in preparing for disaster situations, including developing a business continuity plan. Hold sessions led by experts in law, finance, and disaster preparation for local businesses. With the assistance of chambers of commerce and other organizations, (i.e. Small Business Development Center at IVCC.) educate businesses about the importance of building relationships with resource partners to assist them with getting back on their feet, rebuild if necessary, and reopen as quickly as possible following a disaster. Encourage communities to adopt business retention and expansion programs (e.g., economic gardening or other enterprise supports) to assist firms with economic recovery post disruption. Seek to development an emergency microloan program or amend existing revolving fund programs to significantly shorten application and dispersement time frames following a disaster. Economic Resiliency 7

8 Action 7: Action 8: Action9: Encourage businesses to review, understand and update existing insurance coverage Build a resilient workforce that through job driven skills strategies and support organizations can better shift between jobs or industries when their core employment is threatened. Develop incubator space and entrepreneurship networks in the region to assist small businesses and entrepreneurs to more quickly recover following a disaster. Economic Resiliency 8

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