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<br />of this is beyond the scope of this report. The responses are also shown <br />in Appendix 6, Pertinent Correspondence. <br /> <br />SOCIM, EFFECTS <br /> <br />Construction of the project would greatly m1n1m1ze the existing <br />hazards in the Holly communi ty associated with flooding, including <br />loss of life, disease, mental anguish, and disruption of normal com- <br />munity activities and transportation routes, The community cohesion <br />and grm.th will remain cons tant, if not incresse, as a result of the <br />project. <br /> <br />ECONomc EFFECTS <br /> <br />Property values both on the protected farmlands and in the town <br />would become more stable with reduction of the flood threat. Land <br />use is not expected to change after construction of the project, with <br />exception of the possihility of farming of some presently unfarmed <br />areas hehind the levee. Regional growth will probably not be altered <br />in the immediate future. The project is not expected to have a signi- <br />ficant effect On employment or the local labor force. Direct econom1C <br />benefits would result from the project and these benefits are discussed <br />in Appendix 3, enti tIed "ECONOMICS OF THE SELECTED PLAL" <br /> <br />OTI1FR EFFECTS <br /> <br />TIle project will cause an average increase in the depth of flooding <br />for the design c1ischarge on the Arkallsas River and Wild Horse Crc'"k of <br />1. 9 and 2. (, fcPt, respectively which will cause an increased arc.'ll of <br />about 590 acres to be flooded, Although the affected ar<'l' is primarily <br />low-valued ar,ricultural property, flowar,e easements woulcl be required. <br />The area of induced flooding is shown on Appendix,l, plnte 16, <br /> <br />ECONOMICS OF TIlE SELECTED PLAN <br /> <br />METHODOLOGY <br /> <br />The tangible economic justification of the proposed improvements <br />can be ascertained by comparing the equivalent average annual charges <br />(initial costs, operation and maintenance, and major replacement costs) <br />with an estimate of the equivalent average annual benefits which <br />probahly would be realized over the selected 50-year period of analysis. <br />The average snnual henefits should equal or exceed the annual cos ts <br />if the Federal Covernment is to contribute toward the project. The <br />value given to benefita and costs at their time of accrual is made <br />comparable by conversion to an equivalent time basia using an appro- <br />priate interest rut", An interest rate of 6-3/8 percent, applicable <br />to puhlic projens, wus UAccl in this report. The riet effect of cun- <br />v,".tinn h~Mfit" 1111,1 costA In thh mllnner l.a to develop equIv<<lent <br />'Ivurlq~(1 111111\l111 Vltt\lr.d. <br /> <br />22 <br />