The Federal Emergency Management Agency has denied an appeal for a grant to move Fanestil Meats to a new location, Lyon County Commissioners learned Thursday. The county has 60 days to file a second appeal with the agency.
The denial complicates a process that has experienced a number of setbacks.
In October of 2009, Fanestil’s and Lyon County applied for a grant from FEMA’s Hazard Mitigation Grant Program to move the business out of the floodplain next to the Cottonwood River and build a new plant at a different location. The new plant would allow for the possibility of expansion and would free Fanestil’s from the river’s periodic flooding. The plant’s original site was to be transformed into green space.
The $1.6 million FEMA grant originally was issued to Lyon County for the project two years ago. After delays in locating new property and working out incentive agreements with the city that included a 10-year tax abatement, the state applied for an extension this June. On July 6, FEMA notified the state that the extension was denied and the project was terminated.
As a result, Fanestil’s had to return about $1.2 million of grant money that had already been disbursed, and the appeal process began.
According to FEMA, the grant originally was terminated because of technical issues regarding the title to the floodplain property and the time frame for demolition.
In the appeal, the county said the title to the property was never transferred and that the state improperly asserted that the county had purchased the property on Aug. 13, 2010. Since grant money was disbursed on that date, according to FEMA, the company had one year to vacate and demolish the facility. The extension request filed by the state subsequently was denied.
According to a memorandum received by county commissioners from FEMA Thursday, “the information and documentation submitted by the State and Subgrantee did not provide a reasonable justification for the project violations ...”
After learning of FEMA’s denial of the appeal, commissioners said they would consider their options before commenting on the issue. Now they must decide whether to file a second appeal.
Fanestil’s owner Dan Smoots said he hopes county leaders will move forward with the appeal process.