March 12, 2003

MEMORANDUM

TO: Local Officials in the Coastal Area

FROM: Kathy B. Vinson, Planning & Public Access Manager

SUBJECT: Local Planning and Management Grant Funds (FY 2003-2004)

I am pleased to announce that the Division of Coastal Management (DCM) anticipates funding will be available for local Land Use Plan (LUP) development for Fiscal Year 2003-2004. Although the state budget situation is uncertain, we anticipate that approximately $400,000 will be available during the upcoming fiscal year for Land Use Plans. Funding for implementation projects, such as local land use ordinances, stormwater management plans and capital facilities plans will not be available during FY 2003-2004.

DCM has targeted your local government to receive funding to begin the update of your Land Use Plan during FY 2003-2004, as shown on the enclosed 5-year funding schedule. I therefore invite your local government to apply for grant funds from our Local Planning and Management Grant Program.

The enclosed guidelines for Local Planning and Management Grants (15A NCAC 7L) provide guidance on funding for the different LUP options. The guidelines have different local matching requirements for each type of plan.

Land Use Plan options available to local governments include Workbook, Core and Advanced Core Land Use Plans. (*See Land Use Planning Guidelines 15A NCAC 7B for a description of these types of plans.) Municipalities may choose to develop individual plans or fall under the county plan, which can include separate policies applicable only to the municipality.

Due to funding limitations this year, for new projects we can only fund Core Land Use Plans or provide assistance for developing Workbook Land Use Plans. Funding is unavailable for new Advanced Core Land Use Plans. (If a targeted community chooses to begin work on an Advanced Core LUP during FY 2003-2004, it should budget extra local funds for the additional costs.)

Local governments targeted by DCM to begin the update of their Land Use Plans during FY 2003-2004 will be contacted by their DCM District Planner to initiate the scoping process. The scoping process is a new requirement contained in the funding guidelines for LUP projects. The scoping meeting with the DCM District Planner must occur prior to submitting a grant application for Land Use Plan development. The purpose of the scoping process is to determine the extent of local planning needs and the type of Land Use Plan to be produced and funded. Please note that any community which requests funding for a different type of plan than that recommended by the DCM District Planner must provide clear justification with the funding request.

If your local government is interested in applying for funds, please fill out the enclosed FY 2003-2004 application form. Two copies of your completed FY 2003-2004 application must be received by the DCM District Planner serving your region no later than April 11, 2003. Also, please note that the application form has changed from previous years. Applications submitted on the wrong form will be returned to the local government.

The new guidelines also provide for LUPs to be developed over a two-year funding cycle. This will allow local governments to budget the local matching share over two fiscal years. However, the application should be for the entire amount needed for the plan, which will be adjusted into 2 one-year contracts.

Funding Chart Example: To assist local governments in completing the funding application, DCM has prepared a chart of estimated funding needs for Core Land Use Plans. The enclosed chart provides our estimates of the costs for preparing Core Land Use Plans for different types of governments, including state grant and local government match amounts. If you have questions or need further assistance, please contact your District Planner.

Workbook Plans: Municipalities who, after scoping, choose to develop a Workbook Land Use Plan are not required to submit a funding application, Rather, they should submit a letter to the DCM District Planner stating their intent to develop a Workbook plan.

Regional Project Requests: DCM encourages local governments to work together on joint Land Use Plans. For regional LUPs, one local government must serve as “project sponsor” and administer the grant funds on behalf of the other cooperating local governments. If you are interested in applying for funds for a regional Land Use Plan, please contact your DCM District Planner for more information. The planner will provide you with a regional application form (which is different than the enclosed application) to describe your proposal.* Applications for regional planning projects are also due on or before April 11, 2003.

DCM will notify applicants for local and regional projects as to the status of their application in early May. Hopefully this will provide sufficient time for local budget preparation.

If you have any questions about the grant program or the application procedures, please call your District Planner.

*2002 CAMA Land Use Planning (15A NCAC 7B) and Local Planning and Management Grants (15A NCAC 7L) are included on the DCM website at http://www.nccoastalmanagement.net. The grant application form, regional application form and all of the documents from this mail-out are also on the website. You may also obtain these documents from your District Planner.