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Third Appeal Summary
PA ID# 047-66520; Town of Tabor City
DSR ID# 26942; Replacement of the Lake Tabor Dam
PURPOSE: Respond to third appeal submitted by the Town of Tabor City concerning the denial of funding for the replacement of the Lake Tabor Dam.
DISCUSSION: Heavy rainfall from Hurricane Fran undermined and destroyed the Lake Tabor Dam. At the site inspection, the FEMA inspector learned that the facility was owned by a group of private stockholders and leased to the Town of Tabor City (subgrantee). The FEMA inspector determined that, because replacement of the facility was not the legal responsibility of the subgrantee, the subgrantee was not eligible for Federal assistance. Accordingly, DSR 29642 was prepared for $0. The subgrantee appealed this determination on the basis that the lease passed legal responsibility for maintenance and repairs to the facility to the subgrantee. The Regional Director determined that repairs to the damaged facility were the legal responsibility of the stockholders. Accordingly, the appeal was denied. The Regional Director's determination was upheld during second appeal. The State forwarded the subgrantee's third appeal with a letter dated February 3, 1998. The subgrantee reiterates that they are responsible for maintenance and repair of the facility as documented by their lease and history of providing employees and equipment for past maintenance and repair activities. I have determined that the lease does not pass legal responsibility for maintenance and repair to the subgrantee. Furthermore, replacement of the facility exceeds the authority passed to the subgrantee through the lease. Pursuant to 44 CFR 206.223(a)(3), the appeal is denied.
RECOMMENDED ACTION: Sign the letter informing the GAR of the decision to deny the third appeal.