More than century after a devastating flood hit New Castle, Pennsylvania, the city is still feeling the impact of the 1913 flood. Businesses are forced to pay for flood insurance of around $10,000 a year, a deterrent to potential business owners downtown.

The City of New Castle is looking to help residents and property owners who are in the city’s floodplain designation.

During a meeting earlier this year, city council agreed to have Administrator Chris Frye and the city’s engineering firm, RAR Engineering, begin the process to apply to the Federal Emergency Management Agency to be a part of its Community Rating System.

City Solicitor Ted Saad said if approved, business and property owners in the city’s floodplain, that have insurance through the National Flood Insurance Program, would receive a discount in coverage.

While this discount could range from five to 45 percent, the average discount for municipalities is between five to 15 percent.

Saad noted it is a long process for the city to be approved for the CRS if the city qualifies.

“Any business that operates in the flood zone, their insurance rates are higher,” Frye said.

Frye said that currently there are 68 residential, 18 commercial and four small business properties that are in the floodplain with a NFIP policy. Others have private flood insurance.

Frye said only those with NFIP policies would qualify for the insurance cost reduction under the CRS.

The city was placed in a floodplain zone in large part due to the 1913 flood of New Castle.

Three straight days of rain from March 24-26, 1913, caused the Neshannock Creek and the Shenango River to overflow and flood downtown New Castle, causing four to five feet of water, four bridges to be washed away and two deaths, according to the March 28, 1913, edition of the New Castle News. The flood caused over $3 million in damages, which by today’s standards would be over $70 million.

Now, 110 years later, New Castle is still feeling the impact of that storm, as Frye feels the forced extra cost of flood insurance serves as a deterrent to potential business owners downtown.

He said businesses, on average, have to pay $10,000 to $15,000 a year in flood insurance, with banks often hesitant to give out a loan or mortgage to businesses who are in a floodplain.

“It can be a detriment,” Frye said. “It’s very costly.”

For example, Maria McKee, the CEO of the Lawrence County YMCA, said the agency pays approximately $22,000 a year in flood insurance.

The Pennsylvania Emergency Management Agency, which helps administer the NFIP in Pennsylvania, states on its website that additional premiums on insurance can be implemented.

The premiums can be based on the location, age, occupancy and type of building.

Both Pat Amabile and Angie Urban agree with Frye in stating floodplain insurance is a deterrent for potential businesses.

Amabile is the president of the Downtown Business Association of New Castle, while Urban is the executive director of both New Visions for Lawrence County and the New Castle Citywide Development Corporation.

Amabile said the extra floodplain insurance can be a turnoff for new businesses, considering all of the startup costs they have right out of the gate.

Urban, who was president of the CDC board before becoming its executive director, said CDC officials have had conversations with current and potential business owners.

She said for the businesses who didn’t want to move in downtown, the floodplain insurance is one of the most significant factors.

“We’ve heard that was a burden. It’s pricey for some,” Urban said. “We have heard that is an issue.”

Both Amabile and Urban noted there are other deterrents that are preventing businesses from moving downtown, with one of the biggest being available parking spaces.

Amabile said building owners need to let businesses utilize their empty buildings, while the city can incentivize new businesses by offering tax breaks for their first few years of operation.

“We have to do better at marketing,” Amabile said.

“Those are the kinds of ideas we need to work on. We’d welcome more businesses.”

Urban said steps have been taken in recent years to attract new businesses and customers, such as eliminating the business mercantile tax and parking meters, but believes the CDC and the city can do more to encourage downtown business growth, which she hopes to accomplish in the future.

nvercilla@ncnewsonline.com