LAKE VERMILION- Some Lake Vermilion property owners could see fewer flood-related restrictions, and possibly lower insurance costs and improved property values, thanks to a newly adopted St. Louis County floodplain ordinance.
The ordinance, officially known as Floodplain Ordinance 69, was approved by the county board this past winter following a recommendation from the St. Louis County Planning Commission. The update was necessary to keep the county in compliance with National Flood Insurance Program (NFIP) standards, a requirement both for issuing local permits in flood-prone areas and for keeping property owners eligible for federally backed flood insurance.
The updated ordinance regulates how and where new construction can occur within mapped flood hazard zones. It aims to ensure that future development doesn’t increase flooding risks elsewhere, and that new buildings are protected from high-water events.
But one change in particular, one most likely to benefit homeowners, relates to Lake Vermilion.
In December 2024, the Department of Natural Resources completed a statistical analysis of the lake’s flood history, which resulted in a 1.5-foot reduction in the Base Flood Elevation (BFE). The BFE is the level that floodwaters are expected to reach during a so-called 100-year flood. It’s a key benchmark used to draw floodplain maps and determine whether a property is considered high-risk.
That lower BFE could bring real-world benefits for many lakeshore owners. Properties that were previously within a designated flood zone might now fall outside of it, depending on elevation.
While the county land use office can’t render an opinion on possible effects for property values or insurance rates, a review of national data and floodplain policies reveals several ways that a lowered BFE could benefit shoreline property owners:
• Cheaper flood insurance – FEMA’s FloodSmart program notes that just one foot of elevation above the BFE can cut premiums by up to 30 percent. So, with the flood level lowered by a foot and a half, some homeowners may see real savings.
• Easier to sell a property – Being mapped out of a high-risk flood zone can make a property more appealing to buyers, especially those working with lenders. The Flood Insurance Guru, a national advisory source, points out that a change in flood designation often improves both buyer interest and financing terms.
• Higher property valuations – A study in the Journal of Risk and Financial Management found that homes in designated flood hazard areas tend to be valued lower than comparable homes outside the zone. With the flood risk reassessed downward, some Vermilion properties could gain ground on the appraisal front.
• More flexibility for building or remodeling – FEMA’s homeowner guidance makes clear that homes outside the flood zone, or situated above the new BFE, often aren’t subject to the same elevation or floodproofing requirements. That could ease the process for new construction or additions along the lake.
County Land Use Manager Donald Rigney was able to confirm a portion of this information for the Timberjay.
“We can confirm that the lowering of the BFE may result in existing structures that were previously in the floodplain to fall outside the floodplain based on elevation,” Rigney said in an email. “The lowering of the BFE may also result in fewer permitting restrictions involving floodplain management for new construction. Shoreline setbacks and other zoning requirements were not affected by the adoption of the floodplain ordinance.”
The potential benefits described above are based on general guidance from FEMA and other sources. Actual impacts can vary depending on your specific property, insurance provider, and local permitting rules. Homeowners are encouraged to check with their insurer, realtor, or contractor to understand how the updated floodplain maps may affect them directly.
More information, including updated flood zone maps and guidance for homeowners and builders, is available through the St. Louis County Planning and Zoning Department’s Land Use Division, https://www.stlouiscountymn.gov/departments-a-z/planning-zoning/land-use.