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Upper Kingstree CDBG drainage grant terminated after appraisal dispute; town to seek federal assistance
Summary
Town officials said the federal/state-funded Upper Kingstree CDBG drainage project was closed after required property appraisals were not in the file; the Town reports about $98,000 in engineering and legal costs were spent and will pursue options with the congressional delegation and federal agencies.
Town officials told the Kingstree Town Council on June 15 that the Upper Kingstree Community Development Block Grant (CDBG) drainage project has been terminated by the funding agency because required property appraisals were not part of the administrative file.
Town Attorney William Jenkinson said the original grant conditions called for appraisals for approximately 30 properties. He told council that four years earlier Town staff and prior administrators decided not to incur the appraisal expense based on an understanding that only easements were required. Jenkinson said the Town secured easements, transmitted them to the Council of Governments (COG), and has not previously been told of a deficiency in the record until the grant administrator recently closed the grant. He described the outcome as unfair and said town officials view the termination as a "serious setback" and a "slap in the face" to residents who expected construction benefits.
Finance Director Merianne Cowley said the Town received a single disbursement of about $10,000 (applied to an administrative invoice from the COG) and has already spent roughly $98,000 on engineering and legal/acquisition costs. Cowley said that when the grant was closed the funding agency required documentation of the town's local match for the $10,000 disbursement but would not provide further construction funding.
Jenkinson and Manager Kippton W. Coker said they have begun conversations with congressional staff and are planning a local roundtable to explore alternatives, including potential repackaging or pursuit of other federal funding streams such as USDA Rural Development or FEMA, and to involve the town's legislative delegation. Council members expressed frustration that the Town invested local funds and time without receiving construction benefits and urged pursuing higher-level intervention to try to restore or replace funding.
The minutes include a Clerk's Scrivener's Affidavit appended as Exhibit A to clarify clerical errors in the agenda and the ordinance numbering; the affidavit confirms that the legislative text adopted by council corresponds to Ordinance 2026-01 (budget) and Ordinance 2026-02 (rezoning).
