by SC Reporter Emilie Alfino
City Council at its May 7, 2024, meeting approved a loan of $28 million from the Florida Department of Emergency Management (FDEM) for the Hurricane Ian and Nicole Repair and Recovery Program.
In 2023, the State of Florida appropriated $350 million to create a Hurricane Ian and Nicole Grant Recovery Program that is administered by FDEM. The program was put into place to assist local governments, independent special districts, and school boards affected by Hurricanes Ian and/or Nicole in their recovery projects through the Federal Emergency Management Agency (FEMA) Public Assistance (PA) program.
The City of Sanibel was approved to receive a zero percent, $28 million loan from this program, which is designed to provide necessary cash flow for the recovery projects that are currently in the approval process for FEMA and the State. Once the agreement is executed, the State will advance the City $28 million in funding related to this loan. There is no defined repayment date for this loan. As the projects on the award letter work through the PA program, reimbursement requests will be made to FEMA and State representatives for work completed in accordance with the usual FEMA processes. The City will receive these reimbursements and replace the funding in the $28 million program until all obligated projects are completed.
As the final $28 million in reimbursements are received, the State will withhold the funds until the loan is fully satisfied. The funds from this loan will be accounted for in the Hurricane Ian Fund, the Sewer Fund, and the Beach Parking Fund, as appropriate.
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