EP 1165-2-1
30 Jul 99
b. Additional Cash Contribution. When the fair market value of
the LERRD contributions for recreation is less than 50 percent of the
separable recreation costs, the difference must be provided by
non-Federal sponsors as a cash contribution during construction. When
the fair market value of the LERRD contributions exceeds 50 percent of
the separable recreation costs, the non-Federal share is limited to 50
percent (the Corps becomes responsible for the increment of LERRD
which exceeds 50 percent of separable recreation costs).
6-10. Hurricane and Storm Damage Reduction (Section 103(c)(5) of WRDA
1986). Section 103(c)(5) designates cost sharing for the purpose of
hurricane and storm damage reduction (HSDR). This introduced a new
way of viewing shore protection projects which, prior to WRDA 1986,
were viewed as either being for beach erosion control or for
hurricane, tidal, and lake flood protection. Pursuant to Section
103(d), the costs of constructing measures for "beach erosion control"
are now assigned to one of the basic purposes designated in Sections
103(a), (b) or (c). Normally this will be either HSDR or recreation.
The following policies are applicable to HSDR shore protection
projects.
a. Investment Costs. The non-Federal share of the costs
assigned to HSDR (project or separable element) is 35 percent, to be
paid during the construction period. Non-Federal sponsors must also
provide all related LERRD requirements, the value of which (see
paragraph 6-10.c, following) is counted as part of the 35 percent
non-Federal share.
b. Additional Cash Contribution. When the value of the LERRD
contributions for HSDR is less than 35 percent of the project costs
assigned to HSDR, the difference must be provided by non-Federal
sponsors as a cash contribution during construction. When the value
of the LERRD contributions exceeds 35 percent of the assigned costs,
the non-Federal share is limited to 35 percent (the Corps becomes
responsible for the increment of LERRD which exceeds 35 percent of
HSDR costs).
c. Valuation of LERRD. Non-Federal sponsors must provide all
of the LERRD for shore protection projects, including borrow areas, at
non-Federally-owned shores. The value of these items is included in
the total project cost, and non-Federal sponsors receive equivalent
credit against the non-Federal cost share. There are special
considerations with respect to valuing the real estate interests
involved.
(1) Lands, Easements, and Rights-of Way (LER) for Project
Features.
Private land holdings (LER) subject to shore erosion and
required for project purposes must be appraised considering special
benefits in accordance with relevant statutes and Department of
Justice regulations implemented by ER 405-1-12. Generally, in the
absence of the protective project features the shore would erode away
and be lost. However, the non-Federal sponsor should receive credit
for land values, if any, resulting from this special benefits
analysis, in addition to administrative and/or other costs associated
with the acquisition or condemnation of the requisite elements. The
market value of the entire tract at the time of acquisition, excluding
any enhancement or diminution from the project, is compared to the
market value of the remainder property, including any benefits or
diminution in value from the project. Public land holdings (LER)
subject to shore erosion and required for project purposes must also
be appraised considering special benefits, but any land values
6-11
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