Page 17 - Yucaipa Valley Water District

Researchers at Caltech determined that seismic
“Government institutions and social retrofits are cost-effective when expected
annualized loss would be reduced by 50 percent or
processes must develop in parallel, to more at a cost that would equal no more than 10
keep up with the physical demands and percent of the replacement cost of a building. xxxv

assure minimum acceptable standards of These figures show that retrofits make good business

construction and public safety.” sense. In fact, the National Institute of Building
Sciences in its seminal report, Mitigation Saves,
Journal of Public Economics estimates that for every dollar spent on mitigation,
society sees a resilience benefit of four dollars or
more. xxxvi

There are other strong economic factors for building owners to consider when weighing the cost
benefits of a seismic retrofit. These include:

• Liability associated with damage, death and injury
• Loss of income when a building gets red-tagged
• Financial obligations tied to the original mortgage loan
• Demolition costs including abatement of asbestos and lead
• Reconstruction costs and cost overruns

Seismic Retrofits and Economic Development

Many West Coast cities, from Los Angeles to Seattle, have recognized the economic value of preserving
structures with retrofits that will safeguard them during an earthquake.

This has proven to be especially true for earthquake retrofits of unreinforced masonry (URM) buildings,
which add a historic character and charm to communities and can bring social, environmental and
economic benefits to a community. In many instances, the retrofitting of these buildings in downtown
areas has helped to spark additional investment in revitalizing neighborhoods. One need only think
about the Gaslamp Quarter in San Diego, Santa Monica’s Third Street Promenade, and other revitalized
historic downtown neighborhoods to realize that preserving the character of a community can lend
itself to a renaissance of renewal and economic growth. The city of Medford, Oregon is one of the latest
in a long line of communities that is pursuing economic benefits from the retrofitting of its buildings.
The city has recently pursued a funding program to help downtown building owners finance retrofits,
which officials believe would spark a revitalization effort – given that many of the buildings were already
vacant due to a variety of problems, including blight and inhabitability problems.

“If we can bolster our restaurants and nightlife and downtown residences, I think it will just have a
snowball effect and people will come to downtown Medford to find some niche foods,” explained City
Councilman Clay Bearnson. xxxvii

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Yucaipa Valley Water District - March 8, 2018 - Page 17 of 40