In February 1986, a major flood caused much destruction for the town of Henderson. Jo almost died but was rescued by Hogan (David Forsyth) and Patty (Jacqueline Schultz). Jo then helped others get back on their feet following the flood. The Caldwell House survived, but many residents died or were missing, and buildings were destroyed. Robert Olsen (Nicholas Hormann) made an offer to Jo after he resigned his position at the Liberty House. Jo decided not to run the Caldwell House anymore and to start a new bed-and-breakfast called "Liberty House".