County accepts FEMA mitigation award and seeks state match for Buffalo River erosion buyout

The Clay County Board of Commissioners accepted a FEMA Hazard Mitigation Grant award of $373,875 and authorized county staff to apply for the Minnesota DNR Flood Hazard Mitigation Grant Program to help reduce the homeowner’s required local match for a buyout on the Buffalo River’s south bank.

Planning staff described a property where progressive sloughing has moved the river bank close to the house and septic system. The total estimated project cost is $498,500. Under the FEMA award (75% federal share), the local match would be approximately 25% — about $124,625 — unless a state flood‑hazard grant reduces the local share. Planning staff said a state program could cover approximately one‑half of the local match (a 12.5% state contribution toward the total), reducing the homeowner’s share to roughly $62,000 if awarded.

The board heard that the FEMA grant requires demolition, well sealing, site restoration and closing costs and that reimbursement will be pay‑as‑you‑go: the county will pay project invoices and be reimbursed by FEMA over time. The county-owned‑lands committee reviewed the project and recommended seeking additional state funding. Staff said the state decision would likely arrive by late fall and that FEMA grants typically allow a multi‑year closeout window (up to four years). The homeowner who spoke said they intend to sell an adjacent lot to a neighbor to reduce the county’s long‑term property obligations and that they support the county applying for state funding.

Board action: the commissioners unanimously approved acceptance of the FEMA Hazard Mitigation Grant Award and authorized county staff to apply for the Minnesota Flood Hazard Mitigation Grant. Staff noted that if awarded, FEMA and state deed restrictions on the bought‑out parcel will govern future property use and that the county would assume long‑term maintenance responsibilities if the property becomes county‑owned.

Why it matters: the buyout aims to remove an at‑risk structure and avert repeated emergency responses and potential public‑safety hazards from active riverbank erosion, while the state match application reduces the homeowner’s required out‑of‑pocket contribution.

Next steps: staff will file the state grant application and, if state funds are awarded, move forward with demolition, property transfer and site restoration under FEMA/state deed‑restriction rules. The county noted small ongoing maintenance costs would remain if the parcel transitions to county ownership, but staff said native vegetation could lower long‑term upkeep expenses.