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PLATTSMOUTH, Neb. — The $45 million riverfront Castaway Pointe development that has struggled to stay afloat appears to be dead in the water.
It wasn't summerlong flooding that did in the 30-acre riverfront project adjacent to the Schilling Wildlife Management Area about 20 miles south of Omaha. The site survived the Missouri River's surge with no significant structural damage.
No, before the flooding, investors have now learned, a 2010 analysis by the Army Corps of Engineers had concluded that the development sits in a floodplain — and local ordinances do not allow any new construction.
"It's incredibly tough because this was to be the shining star for the Plattsmouth area," said Jeff Rensch, one of the project's investors. "We were hoping to make something really special — a place that would rival getaway destinations like Lake Okoboji in Iowa or the Lake of the Ozarks, but a lot closer to home."
In 2007, the developers requested from the Federal Emergency Management Agency a change in a 100-year-old flood map for the area in order for construction to begin. John Cambridge, an HDR engineer retained by the City of Plattsmouth, told the mayor and city council that he could "recommend that this is reasonably safe from flooding based on the FEMA rules and regulations."
Plattsmouth officials endorsed the recommendation to make a change in the map, and it was approved by FEMA. However, Bob Franke, a senior civil engineer with FEMA, said that when the map change was made, the document noted that a final mapping of the area by the Corps of Engineers was still a year or two away.
"As far as I know, we were never made aware of the possibility that the flood map could change," Rensch said. "It wasn't something that we were told."
Amanda Bicknell, a spokeswoman for FEMA, said notice of the proposed "base flood elevation change" for Plattsmouth was published in the Federal Register on Nov. 25, 2009, as well as in the Plattsmouth Journal on two occasions that December. Local officials said investors didn't attend meetings about the Missouri River mapping.
As envisioned by investors, Castaway Pointe was to feature 11 luxury homes that would sell for between $450,000 and $650,000; more than 40 log cabin cottages; 20 cabins or villas; and more than 100 condominiums. The cabins, villas and condos were expected to sell for between $125,000 and $225,000.
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The development today consists of Brad and Tammy Sorensen's $650,000 estate home, three dockside cottages that are on the market for $185,000 to $200,000 apiece and a single villa, priced at $225,000. All five structures can remain, but no further home building will be permitted.
"The good news is all the homes were safely built approximately three feet above the water level of the 500-year flood," Rensch said.
He said the change in the flood map was discovered when the developers tried to request permits for additional construction at the end of last year. That change will cost the group "millions of dollars," said Rensch, an Omaha Realtor who expected to sell Castaway Pointe's lots and homes.
The initial plans for Castaway Pointe were unveiled in 2006 by Omahan Larry Richling and called for a luxury-style development along the Missouri River along with a large marina. Richling left the project three years ago and it remained in the hands of his partners Bob Brau of Omaha, Mark Morehead of Plattsmouth and Rensch.
Castaway Pointe LLC is talking to the Corps of Engineers, the City of Plattsmouth and the State of Nebraska about the needs for what remains of the development, such as rebuilding an access road and a boat ramp owned by the city, both damaged by flooding.
Rensch said any decisions made about how to proceed will take some time.
"From a business standpoint, it's a huge challenge," he said. "It could be two or three years before everything is sorted out."
A few things are decided. A privately owned 40-slip marina near the city boat ramp is expected to reopen in June and will be available to the public.
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But a 65-foot riverboat, the River City Star, that was purchased for $375,000 remains grounded on the shore of the marina. When the riverboat was moved to the site, developers had hoped to renovate it into an anchored but floating restaurant. Rensch said his investment group has not listed the boat for sale but that is now a possibility.
Plattsmouth City Administrator Erv Portis said officials recognize that Castaway Pointe developers "are between a rock and hard place" and are willing to work with them.
"We will certainly support Castaway's intention to get the three cottages ready for occupancy and will work with Castaway to consider other options," Portis said.
The Sorensens, who live in the estate home at 411 Dock Road, say they love their house and its location near the river. The floodwaters blocked access to their home and forced them to stay in a motel for about three months, but the home wasn't damaged.
"We feel very lucky to have been able to get in here when we did," Brad Sorensen said. "We watch the eagles come to fish in the winter and the boats and barges on the river in the summer. We couldn't be happier with our decision."
Sorensen, who owns Sorensen Auto Plex in Shenandoah, Iowa, will take on operation of the marina. Some silt will need to be dredged out and new electrical lines will need to be connected to the boat slips, but he predicts the marina could reopen in June.
"Fixing the boat ramp is our biggest issue. The city boat ramp was totally destroyed," Sorensen said. "The paved road is gone, and that will make putting large boats in the river difficult. My prediction is we'll be off to a slow start but we will open."
Portis said once the city knows the cost for repairs to the boat ramp, the city council can consider the next steps.
"I predict we will rebuild it," Portis said.
Contact the writer:
402-444-1272, kevin.cole@owh.com
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