Sources

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Porcupine Road

• Former manager Kreitzer let Constantine work on the road without consulting FEMA (as required by the grant regulations). | Source

• FEMA Determination memo

• FEMA Non-Compliance memo

Lutak Dock

• Federal rules require that grantees not incur significant costs or otherwise commit to a particular design before federal review is complete | Source

• The construction phase cannot be entered into until the environmental review is complete. | Source

• On November 17, 2023, Kreitzer received a letter from Turnagain which reported that $10 million of steel had been purchased (without the required approval from MARAD) under the Phase 2 contract. | Source

• Kreitzer left for vacation without notifying elected officials of the steel purchase. | Source

• She assured MARAD on December 12 that "no funds have been expended under the Phase 2 contract, as the permitting has not been accomplished." | Source

• Kreitzer withheld her knowledge of the $10 million steel purchase for over a month while elected officials were trying to figure out whether any funds had been expended under Phase 2. | Source 1 | Source 2 | Source 3

• The contract between Turnagain and the Borough requires the contractor to comply with all laws. | Source

• But Turnagain's premature steel purchase violated federal laws and grant requirements. | Source 1 | Source 2 | Source 2 | Source 3 | Source 4

• December 2023 — MARAD began a two month investigation into the steel purchase. | Source

• February 16, 2024 — Turnagain sent the Borough a letter saying it could find another use for the steel. | Source

• February 23 — MARAD determined that the steel Turnagain had purchased violated federal requirements and therefore could not be paid for with federal grant funds. | Source

• Turnagain is now demanding payment for the $10 million steel purchase. | Source

• Turnagain has also said that its Guaranteed Maximum Price is no longer valid. | Source

• The Borough is pursuing mediation with Turnagain over the Lutak Dock project. | Source

• The Borough is pursuing a second appeal to FEMA for the Porcupine Road project. | Source