Infrastructure Past, Present, and Future Casebook/Metro Flood Diversion (MN/ND)

This page is a case study on the Metro Flood Diversion Project in Fargo, North Dakota and Moorhead, Minnesota, created by Abigail Dodson, Ameera Ali, and Shareef Ibrahim. It is part of the GOVT 490-003 (Synthesis Seminar for Policy & Government) / CEIE 499-002 (Special Topics in Civil Engineering) class offered at George Mason University taught by Jonathan Gifford.

Summary

The 1997 Red River Flood in the Fargo-Moorhead metropolitan area caused extensive damage, displacing thousands and damaging schools, businesses, government offices, and homes. In response, the Metro Flood Diversion Project was initiated as a pivotal infrastructure initiative to mitigate flooding risks in the region, spanning from Fargo, North Dakota, to Moorhead, Minnesota. Its primary goal was to address the historical flooding issues caused by the overflow of the Red River during snow melt or heavy rainfall. The Metro Flood Diversion Project comprises essential components, including a diversion channel, control structures, levees, embankments, environmental considerations, and community engagement and funding. A central feature of the project is the diversion channel, designed to redirect excess water from the Red River during flood events, thus bypassing the metropolitan area. This project represents a collaborative effort between two states to protect the Fargo-Moorhead region from the devastating effects of flooding and enhance the resilience of local communities against future weather catastrophes. This project marks the first Public-Private Partnership (P3) venture undertaken by the U.S. Army Corps of Engineers, representing a nationwide initiative for the split-delivery model. It is North America's leading P3 water management endeavor, setting a precedent for collaborative infrastructure development. The project also represents a groundbreaking green finance initiative for climate change adaptation in the United States, exemplifying innovative approaches to environmental resilience.

Map of Location

Metro Flood Diversion Project Map

Timeline of Events

Sorlie Bridge Flooding - Red River Flood of 1997

1997: Major flooding occurred after Blizzard Hannah. The Red River rose to a high of 44.83 feet and caused over $6.4 billion of damage (after inflation) to Grand Forks, North Dakota and East Grand Forks, Minnesota . 

1998 - 2007: The Fargo and Moorhead communities recover from the effects of the Red River Flood. The local governments use buy-out programs to manage properties in high flood areas. Businesses like the Alerus Center and the Ralph Engelstad Arena reopen. A commercial office complex center is built.

2008: The U.S. Army Corps of Engineers conducts a feasibility study for a flood diversion project.

2009: The Red River floods.

2010: The U.S. Army Corps of Engineers publishes the Draft Feasibility Report and Environmental Impact Statement. Two diversion projects were proposed from this study: One in North Dakota and one in Minnesota.

2011: The Red River floods.

2014: The Metro Flood Diversion Project was authorized for construction by the Water Resources Reform and Development Act.

2016:

• The Minnesota Department of Natural resources denies the permit required for a flood diversion project in the state.
• The Metro Flood Diversion Authority (MFDA) is formed.
• The Joint Powers Agreement between North Dakota and Minnesota is created.

2022: The Metro Flood Diversion Project was started.

Red River after Grand Forks levee was overtopped in 1997.

2027: Expected completion of the Project.

Key Actors, Institutions, and Agreements

United States Army Corps of Engineers

U.S. Army Corps of Engineers

The U.S. Army Corps of Engineers spearheads a unique Public-Private Partnership (P3) model, collaborating with the private sector to efficiently address the Midwest's flood risks. This partnership brings expertise and funding and ensures the construction of levees, flood walls, and essential infrastructure.

Public Private Partnership

A Public-Private Partnership (PPP) is a collaborative effort between government entities and private sector organizations to develop, finance, and manage public infrastructure or services. In the metro flood diversion project context, PPPs played a significant role in leveraging private sector expertise, resources, and innovation to address the region's flood risks effectively. By partnering with private entities, the project gained access to additional funding sources, accelerated project timelines, and enhanced technical capabilities. PPPs also facilitate sharing of risks and responsibilities between the public and private sectors, ensuring greater accountability and efficiency in project delivery. Moreover, PPPs enabled the metro flood diversion project to harness innovative financing mechanisms and management strategies, ultimately enhancing the project's resilience and sustainability in mitigating flood hazards for the Fargo-Moorhead community.

Metro Flood Diversion Authority (MFDA)

the Metro Flood Diversion Authority (MFDA), formed in 2016, selected the Red River Valley Alliance to design, build, finance, operate, and maintain a 30-mile-long diversion channel crucial for managing floodwaters around the two cities. The MFDA is tasked with ensuring safe and timely construction, land acquisition, and environmental permit compliance, while the Corps oversees the Southern Embankment and Associated Infrastructure construction.

Red River Valley Alliance

The Red River Valley Alliance includes members with responsibilities associated with the Diversion Project.

Guarantors

Responsible for the project's design, construction, financing, operation, and maintenance for 30 years post-construction:

• Acconia S.A.
• Shikun & Binui Ltd.
• North American Energy Partners Inc.

Leaders

• Acconia S.A.
• Shikun & Binui Ltd.
• North American Energy Partners Inc.
• Red River Constructors

Expertise Contributors

• Red River Valley Alliance Design
• Hatch Associates Consultants Inc., and COWI North America Inc.

Subcontractors

• Amec Foster Wheeler
• Wenck Associates Inc.

Joint Powers Agreement

The Joint Powers Agreement (JPA) in the metro flood diversion project allows North Dakota and Minnesota to work together in the Fargo-Moorhead area to reach a common goal: reduce flooding and protect communities. This agreement helps both states work together smoothly by setting clear rules for decision-making and resource sharing. It also simplifies handling legal and regulatory matters across state lines, saving time and effort. By working together, North Dakota and Minnesota can address shared challenges more effectively, ensuring better community protection against flooding. The Joint Powers Agreement further solidifies stakeholder collaboration, aiming to deliver permanent, reliable flood protection by 2027.

Metro Flood Diversion Project Details

The Metro Flood Diversion Project has two main parts: a 30-mile-long channel to redirect surplus storm water flow around the metropolitan area and temporarily store it on vacant land (acquired by flowage easements) and the in-town levee project to modify 13 levees and 27 storm water lift stations. In addition, a 20-mile-long embankment, 19 highway bridges, three railroad bridges, three gated structures, and two aqueduct structures are being constructed.

Rendering of the metro flood diversion channel.

Stormwater Diversion Channel

The Red River Valley Alliance is responsible for delivering the stormwater diversion channel for this project. The channel is 30 miles long and includes diversion outlets and aqueducts along the Sheyenne and Maple Rivers. In addition, there will be fourteen drainage inlets, three railroad crossings, two pairs of interstate crossings, and twelve county road crossings.

Southern Embankment

The U.S. Army Corps of Engineers is responsible for delivering the Southern Embankment portion of this project. The Southern Embankment is 22 miles long and has three gated control structures: the Diversion Inlet Structure, the Wild Rice River Structure, and the Red River Structure. Each structure will have a radial arm that allows gates to raise and lower for water control during the project. This portion of the Metro Flood Diversion Project also includes the I-29 Bridge crossing, 4-mile grade raise, and county and township road crossings.

Mitigation Projects

The Metro Flood Diversion Authority and the U.S. Army Corps of Engineers will collaborate with local governments to accomplish various mitigation projects, with the USACE not directly involved in their delivery. The upstream mitigation efforts will focus on safeguarding or relocating property structures and cemeteries, which will be acquired through flowage easements facilitated by the MFDA. Additionally, levees will be constructed in Oxbow-Hickson-Bakke and Christine, North Dakota, and Wolverton, Minnesota. Drain 27 in Oxbow, North Dakota, will be enhanced to protect a wetland area, while stream restoration will be carried out on the Lower Otter Trail River.

Cost, Financing Sources, and Funding

The Metro Flood Diversion Project incurred a total expenditure of $3.2 billion, with allocations as follows: $989 million for the construction of the channel under the Public-Private Partnership, $703 million allocated to the southern embankment project overseen by the U.S. Army Corps of Engineers, $502 million designated for Lands and Impacted Property Mitigation, $266 million directed towards in-town levees, $250 million attributed to non-construction costs, and $44 million set for other mitigation construction endeavors.

Various avenues of financing were utilized to support this extensive project. Notably, $273 million in Private Activity Bonds, including Tax-exempt Green Bonds, were secured through institutions such as Morgan Stanley, Citigroup, Mikko Securities Indonesia, and Sumitomo Mitsui Banking Corporation. MetLife Investment Management contributed $197 million through Private Placement funds, while the Water Infrastructure Finance Innovation Act loans facilitated $643 million in Revolving Credit. The Infrastructure Investment and Jobs Act provided an additional $437 million. Furthermore, communities demonstrated their commitment by voting to augment long-term sales taxes, ensuring sustained funding through a multi-generational Public-Private Partnership (P3) payment structure.

Funding for the project came from federal, state, and local P3 channels. A substantial portion, amounting to $1 billion, was procured through voter-approved sales taxes extended until 2084, adhering to the P3 model. The State of Minnesota contributed $86 million, while the State of North Dakota allocated $870 million. At the federal level, a Project Partnership Agreement (PPA) signed in 2016 secured $750 million towards the endeavor.Technical Issues

Technical Issues

Land Acquisition

Land acquisition is critical to securing the space required to implement flood mitigation measures such as levees, channels, and infrastructure. The process consists of acquiring pieces of property from owners within the project area through negotiation, purchase agreements, and, when necessary, eminent domain. Land acquisition is undertaken to ensure adequate space for construction of flood protection and water flow management structures, which reduce flood risks and safeguard communities in the Fargo-Moorhead region. The MFDA uses the following steps to acquire land for the project:

1. A U.S. Army Corps of Engineers design engineer flags land that is must be acquired for the project and notifies the MFDA director of lands and compliance and lands program manager.
2. The MFDA Finance Committee reviews the property rights request and the project budget.
3. Once approved, the MFDA Finance Committee issues a Land Acquisition Directive to The Cass County Joint Water Resource District (CCJWRD) in North Dakota or the Moorhead Clay County Joint Powers Authority (MCCJPA) in Minnesota.
4. Land agents contact the land owners to develop a contract. The contract could be for either a flowage easement or a total property acquisition.

Flowage Easements

Landowners receive payment from the MFDA for the right to periodically store floodwater on the landowner's property. The entities associated with the Metro Flood Diversion Authority (MFDA) will be responsible for acquiring flowage easements. The Cass County Joint Water Resource District (CCJWRD) will oversee the acquisition process in North Dakota. In Minnesota, the acquisition of easements will be managed by either the City of Moorhead, Clay County, or the Moorhead-Clay County Joint Powers Authority (MCCJPA).

Property Acquisitions

Project engineers identify land parcels that the Fargo-Moorhead area will impact, and appraisals are scheduled for each parcel based on construction timelines. Appraisals are reported to Cass County Joint Water Resource District (CCJWRD) in North Dakota or the Moorhead-Clay County Joint Powers Authority (MCCJPA) in Minnesota. Based on the appraisal, an offer to purchase is made and serves as a basis for negotiations between land agents and landowners. After an agreement, a closing date is set where updated property rights are established, and the landowner is paid.

Crop Damage Programs

The MFDA offers comprehensive crop coverage insurance, ensuring that landowners will be protected in the event of flooding caused by the MFDA's activities. Under this coverage, landowners can claim compensation equivalent to the producer's yield multiplied by the crop insurance price. It is important to note that if a landowner receives payment from a federal crop insurance policy for a crop loss claim, it will be accounted for before the MFDA's supplemental crop loss program provides additional compensation. Even if federal crop insurance ceases, the MFDA remains bound by its obligations outlined in the Settlement Agreement, guaranteeing continued support to affected landowners.

Environmental Considerations

The Metro Flood Diversion Project is supported by environmental policies that minimize its ecological footprint and ensure sustainable development. These policies contain a variety of measures designed to protect and enhance biodiversity, water quality, and natural habitats within the project area. Environmental impact assessments evaluate potential effects on wildlife, wetlands, and other sensitive ecosystems, guiding the project's design and implementation to mitigate adverse impacts. Additionally, the project incorporates green infrastructure elements such as vegetative buffers, wetland and stream restoration, and erosion control measures to protect the floodplains and improve overall environmental resilience. The project adheres to strict regulatory requirements and mitigation protocols, ensuring compliance with federal, state, and local environmental laws and standards. By prioritizing environmental stewardship and conservation, the Metro Flood Diversion Project aims to balance flood risk reduction and ecological sustainability, safeguarding human communities and the natural environment for future generations.

Narrative of the Case

Following the 1997 Red River Flood in the Fargo-Moorhead region, it became evident that decisive action was necessary to mitigate the threat of future flood events. As data analysts and scientists linked the floods to global climate change, it undersCorpsd the potential recurrence of similar catastrophic events. While addressing atmospheric impacts to curb climate change remains a priority, the States of North Dakota and Minnesota face limitations in altering natural processes such as snowfall, melting, and subsequent flooding during the spring thaw. The topography of the region also poses challenges, limiting extensive modifications. In response to these constraints, the Metro Flood Diversion Project emerges as a proactive solution to effectively manage flood risks and protect the Fargo-Moorhead area from recurring threats.

The necessity of the Metro Flood Diversion Project had widespread community support, notably as residents of the Fargo-Moorhead area voted to increase taxes until 2084 to contribute to its funding. This endorsement reflected the community's recognition of the project's critical importance in mitigating the devastating impacts of events like the 1997 flood, which imposed significant financial losses on the region and increased insurance rates. This grassroots initiative propelled the issue to higher levels of government, fostering collaboration between local, state, and federal entities. The U.S. Army Corps of Engineers played a vital role at the state and federal levels, leveraging its expertise and resources to support the project's development and implementation. Through this multi-tiered collaboration, the Metro Flood Diversion Project emerged as a unified response to the pressing need for comprehensive flood protection, underscoring the effectiveness of intergovernmental cooperation in addressing complex regional challenges.

Lessons Learned / Key Takeaways

The 1997 Red River flood emphasized the significance of infrastructure resilience and the collaboration between state and federal government entities, local governments, and private engineering firms. Rainfall patterns in the midwest continued to increase after 1997; flooding in the midwest was inevitable due to the flat terrain and the northward flow to Canada. In addition, proper satellite data and rain gauges needed to be in place to predict and monitor rainfall intensity and distribution accurately. This combination of factors led to community stakeholders and the government utilizing various flood mitigation techniques to mitigate the effects of future flood events as best as possible.

The project progress was initially slow but gained momentum after the establishment of the Metro Flood Diversion Authority (MFDA). The MFDA brought together representatives from Fargo, Moorhead, and surrounding municipalities to coordinate efforts for flood mitigation and resilience. This unified approach ensured that diverse stakeholders worked together towards common goals, streamlining decision-making processes and enhancing overall project effectiveness. By establishing the MFDA, stakeholders from different political and administrative entities could align their efforts, resources, and priorities to address shared flood risks comprehensively.

Discussion Questions

1.) How does the metro flood diversion project reflect broader trends in urban planning and infrastructure development, particularly in the context of climate change adaptation and mitigation strategies?

2.) What is the role of government agencies and stakeholders in planning and executing the metro flood diversion project?

3.) What are the potential controversies surrounding the metro flood diversion project? Discuss concerns about property rights, environmental justice, and alternative flood mitigation approaches.

4.) What are the potential ethical concerns related to the metro flood diversion project, and why are they of concern? Are there competing societal interests in resource allocation and decision-making processes?

5.) North Dakota and Minnesota have been able to work together on this project to reach a common goal. Do you think Maryland and Virginia could ever do the same pertaining to bridges connecting the two states over the Potomac River?