Section 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.