Resolution No. 5303 - Laserfiche WebLink

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Eugene -Springfield Area Natural Hazards Mitigation Plan 6. Appendices mitigation should consider reductions in physical damages and financial losses. A partial list follows: • Building damages avoided • Content damages avoided • Inventory damages avoided • Rental income losses avoided • Relocation and disruption expenses avoided • Proprietor's income losses avoided These parameters can be estimated using observed prices, costs, and engineering data The difficult part is to correctly determine the effectiveness of the hazard mitigation project and the resulting reduction in damages and losses. Equally as difficult is assessing the probability that an event will occur. The damages and losses should only include those that will be borne by the owner. The salvage value of the investment can be important in determining economic feasibility. Salvage value becomes more important as the time horizon of the owner declines. This is important because most businesses depreciate assets over aperiod of time. Additional Costs from Natural Hazards Property owners should also assess changes in a broader set of factors that can change as a result of a large natural disaster. These are usually termed "indirect" effects, but they can have a very direct effect on the economic value of the owner's building or land. They can be positive or negative, and include changes in the following: • Commodity and resource prices • Availability of resource supplies • Commodity and resource demand changes • Building and land values • Capital availability and interest rates • Availability of labor • Economic structure • Infrastructure • Regional exports and imports • Local, state, and national regulations and policies • Insurance availability and rates 6-126 January 2020