The R.I. Coastal Resources Management Council is trying to take away some of the guesswork on how major storms, such as the four nor’easters that have battered the region this month, will impact local economies.
The agency has begun analyzing the economic costs of storm damage for local communities – before such storms hit.
“It’s important to know the economic implications of storm damage because that’s what most people want to talk about,” said Grover J. Fugate, CRMC executive director.
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The agency expects to complete its research for the state’s 21 coastal communities later this year. It shared preliminary results for Charlestown and Westerly with Providence Business News.
The research shows residential, business, public and undeveloped properties are dangerously exposed to coastal storms, which could have a damaging impact on the long-term financial stability of local governments.
In Charlestown, for instance, the value of property exposed to a Hurricane Carol-like storm today totals $1.1 billion, representing 43.6 percent of the total value of all the town’s property. Add 7 feet of sea-level rise – a level scientists project Rhode Island will reach by 2080 – and the exposed value would increase to $1.4 billion, representing 55 percent of all property.
For Westerly, such a storm today could damage $1.9 billion in property, representing 35.3 percent of all property in the town. By 2080, the exposure grows to $2.4 billion in today’s dollars.
“This tells cities and towns what percentage of their tax base is exposed,” Fugate said. “Some of these communities are going to have to start thinking long term about what they will do to deal with the potential loss of revenue in those areas.”
Indeed, property taxes make up the lion’s share of local revenue, meaning a storm that damages more than 50 percent of a town’s property could be detrimental to its budget. The loss of revenue would likely mean municipalities would have less money to pay for schools, local programs and to pay back bondholders.
Stephen McCandless, GIS coordinator for Charlestown, helped CRMC put together the data for the coastal town. He wasn’t surprised by the results but lauded the work because he said it puts a number on what many people already know intuitively to be true.
“If you buy property along the coast, you need to know you’re in harm’s way,” McCandless said. “We can make the community … more aware. It seems like the right thing to do.”
McCandless expects the town will use the data to help inform future planning decisions and to help property owners understand the impending threat of coastal storms.
“After Hurricane Sandy, we found a lot of people were surprised [by] the damage it caused. We want to avoid that surprise,” he said. “I hope such a storm doesn’t happen again, but the reality is that it will someday.”
