The rule of thumb for selling a house, and buying one for that matter, has always been "location, location, location."
Who would have thought that applied to real estate agents also?
Well it certainly applies to buyers, sellers, and agents in the Oroville Dam area.
You may recall the Oroville Dam was in danger of failing recently, as torrential rains damaged the dam’s spillway and threatened to collapse the dam itself.
The danger was so great 100,000 people were evacuated. You can get details on the cost of the repair here and what happened after the evacuation by clicking here.
Now we learn that the state of California may not meet the Nov. 1 deadline for temporary repairs to the spillway. That date is important because November marks the beginning of the rainy season in that part of the state.
The Los Angeles Times advises, "In a report submitted to the Federal Energy Regulatory Commission this week, a panel of five independent consulting engineers warned that 'a significant risk would be incurred' if the main spillway was not operational after October, which is the traditional start of California’s rainy season."
Now unless there is a nuclear power plant hidden in the dam that everyone overlooked, I can’t imagine why the Federal Energy Regulatory Commission (FERC) is supervising dam repair.
Be that as it may — this is bad news for the entire real estate market.
It’s bad enough to try and sell a house in an area where 100,000 people ran for their lives earlier in the year, but I predict it will be impossible to sell if the initial repairs aren’t complete before rain hits the area.
And that is the prediction of Robert Bea who is with the University of California's Berkeley Center for Catastrophic Risk Management, "I think that is a challenging timeline."
His view is it will be nearly impossible to meet the deadline.
If there is any chance at all for success, experts say the Department of Water Resources (DWR) "should award grading contracts by March 31, complete design plans by mid-May and approve a construction contract by June 1.
"That would give the company five months to complete the work, the report suggested."
Meanwhile, back at the ranch, a department spokeswoman says the agency is still working on a plan of action. That is very bad news, since action isn’t typically a word associated with the DWR.
The Sacramento Bee found DWR first knew about "minor" cracks in the spillway in 2009.
Those were "repaired" in 2010, but additional cracks were found in 2013.
Those "repairs" failed when water starting hitting the spillway at 50 miles per hour — this spring.
It looks like until the DWR finally gets moving and makes effective, long-term repairs; the real estate market in the Oroville area stands a good chance of being under water in more ways than one.
Michael Reagan, the eldest son of President Reagan, is a Newsmax TV analyst. A syndicated columnist and author, he chairs The Reagan Legacy Foundation. Michael is an in-demand speaker with Premiere speaker’s bureau. Read more reports from Michael Reagan — Go Here Now.
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