§ 54-1109. Contracts for state assistance payments for coastal

rehabilitation.

1. The commissioner may, in the name of the state, enter into
contracts with municipalities or not-for-profit corporations, to provide
state assistance payments toward the cost of coastal rehabilitation
projects which shall include the following provisions:

a. an estimate of the costs of the project as determined by the
commissioner;

b. an agreement by the commissioner to make state assistance payments
toward the cost of the project by periodically reimbursing the
municipality or not-for-profit corporation during the progress of
project development or following completion of the project as may be
agreed upon by the parties, in an amount not to exceed the amounts
established elsewhere in this title; and

c. an agreement by the municipality or not-for-profit corporation:

(i) to proceed expeditiously with and complete the project as approved
by the commissioner;

(ii) to undertake and maintain the coastal rehabilitation project in
accordance with applicable law and rules and regulations;

(iii) to provide for the payment of the municipality's or
not-for-profit corporation's share of the cost of the project;

(iv) to assume the full cost of any additional elements or continued
operation of the project;

(v) to repay within one year of notification by the commissioner, any
state assistance payments made toward the cost of the project or an
equitable portion of such monies declared appropriate by the
commissioner, if the municipality or not-for-profit corporation fails to
complete the project as approved. No repayment, however, shall be
required where the commissioner determines that such failure,
disposition or change of use was immediately necessary to protect public
health and safety;

(vi) to apply for and make reasonable efforts to secure federal
assistance for the project; and

(vii) to not sell, lease, or otherwise dispose of or use lands
rehabilitated under this title for any purpose inconsistent with the
project for a period of seven years from the commissioner's approval of
the project.

2. In connection with each contract, the commissioner shall keep
adequate records of the amount of the payment by the state and of the
amount of federal assistance, if any, received by the municipality or
not-for-profit corporation. Such records shall be retained by the
commissioner and shall establish the basis for recalculation of the
state payment as required herein.