The current estimate for construction of the Town of Martin Redevelopment Project is $92.0 million dollars.
In accordance with the Water Resources Development Act of 1986, the planning, engineering and construction costs of all Federal water resources projects, including the Town of Martin, are required to be shared between the Federal Government and a non-Federal sponsor. Being the responsible agency for the project, Federal project funding comes through the annual appropriations provided by Congress to the US Army Corps of Engineers. Congressman Harold Rogers has been a strong supporter of the Town of Martin project and has provided annual funding for the project since its inception.
For flood protection projects such as the Town of Martin, the standard rate for cost sharing project costs is 65% Federal and 35% non-Federal. However, in accordance with Section 103 of Public Law 99-662, a flood protection project may be evaluated to determine whether the non-Federal sponsor has the financial capability to assume their share of the project costs. Subsequent to this economic analysis, it was determined that the Town of Martin project would qualify for the minimum 5 percent non-Federal contribution. Under this modified cost sharing rate, the non-Federal sponsor would be responsible for approximately $4.6 million dollars of the total cost with the Federal Government contributing $87.4 million dollars.
The non-Federal sponsor for the project is the Floyd County Fiscal Court, and the Commonwealth of Kentucky has assumed the role of a financial contributor to the project to assist the Floyd County Fiscal Court. The Commonwealth of Kentucky has committed to providing 95% of the non-Federal share of project costs or approximately $4.4 million dollars, leaving a balance of approximately $200,000 to be contributed by the Floyd County Fiscal Court over a multi-year construction period.