Dania Beach Studies the Economic Implications of Adaptation for Coastal Businesses
May 1, 2019
In furtherance of RCAP’s recommendation to integrate resilience and economic development (ER-5), Dania Beach conducted a first-of-its-kind micro-scale economic study to analyze the future implications of adaptation for its coastal business corridor, and provide recommendations for fostering economic resilience. The study modeled the potential impacts of future coastal flooding and the benefits of adaptation on property and asset values, the tax base, and the local business labor pool. Recommendations included pursuing life-cycle cost assessments to optimize timing of adaptation projects and planning for long-term risk to minimize business disruption during construction.
The study also interviewed and surveyed the local business community to identify interdependencies and reactions to changing conditions. Over half of employees reported longer commutes due to flooding. Nearly 70% of respondents reported that their insurance has increased in recent years, and many are concerned about their ability to stay in business if insurance premiums continue to rise. Such changes could make businesses less competitive and result in a loss of market share to industry counterparts to the extent that these industries can shift to other locations. To prevent relocation or destabilization of the local economy, the study recommends providing information related to local adaptation investment opportunities and maintenance of adequate insurance as part of a business continuity plan.