20052132 Ver 1_USACE Correspondence_20091218

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DEPARTMENT OF THE ARMY
WILMINGTON DISTRICT, CORPS OF ENGINEERS
P.O. BOX 1890
WILMINGTON. NORTH CAROLINA 28402-1890
REPLY TO
ATTENTION OF'. December 16, 2009
Regulatory Division
Action ID No.: SAW 200900425
Ms. Cyndi Karoly
Division of Water Quality
North Carolina Department of Environment
and Natural Resources
1650 Mail Service Center
Raleigh, North Carolina 27699-1650
Dear Ms. Karoly:

This is in reference to our letter of July 29, 2009, in which you were provided a copy of a
Proposed Class I Administrative Penalty for alleged violations of Department of the Army
Permit No. 200610042.
A Final Order has been issued assessing a Class I Administrative Penalty against The
Fund for Sandy Point, LLC, in the. amount of $5,000. A copy is enclosed.
Sincerely,
K cd?
Samuel K. Jolly
Chief, Regulatory Division
Enclosure
i
Permit: USACE Permit No. 200610042
FINAL ADMINISTRATIVE PENALTY ORDER
Under the authority granted by 33 U.S.C. § 1319(g) and 33 CFR Part 326.6, 1,
Colonel Jefferson M. Ryscavage, District Engineer, Wilmington District, issue this order assessing a
Class I Administrative Penalty for violation of the above-referenced permit.
Name/Address of Permittee:
The Fund for Sandy Point, LLC
C/O Mr. Sam Young
1820 Sandy Point Road
Edenton, North Carolina 27932
Permitted Activity:
The excavation of three navigation channels and two boat basins within Department of the Army (DA)
jurisdictional waters to facilitate the development of single and multifamily housing, commercial
businesses and shopping centers, road crossings, marina amenities, waste water treatment facilities, and
municipal emergency departments, on property located at the Sandy Point Development, off NC
Highway 32, adjacent to the Albemarle Sound, near Edenton, in Chowan County, North Carolina,
consistent with the application and plans for USACE Permit No. 200610042.
Condition(s) or Limitation(s) of Permit Reportedly Violated:
The Fund for Sandy Point, LLC, failed to comply with special condition 28. of the subject permit, which
states that, "The Permittee (and any successors and assigns) shall cause to be recorded in the Register of
Deeds for Chowan County the "Restrictive Covenants for Shoreline Preservation," the draft form of
which is attached as Exhibit E, and the "Restrictive Covenants for Wetlands Preservation," the draft form
of which is attached as Exhibit F (`Restrictive Covenants") for the purpose of preserving and protecting
certain riparian areas and wetlands located on the project site in perpetuity. The Restrictive Covenants
shall be recorded at least thirty (30) days before the Permittee commences dredging the first of the three
proposed channels in Albemarle Sound as authorized by this Permit; provided, however, that no lot
within the project shall be sold or conveyed without any restrictive covenants applicable to such lot
having first been recorded. The Permittee shall enforce the terms of the restrictions set forth in the
Restrictive Covenants, and, prior to conveyance of the property, shall take no action on the property
described in the Restrictive Covenants inconsistent with the terns thereof. Conveyance of any portion of
the property prior to the recordation of the aforementioned covenants will require written approval of the
USACE."
Description of the Nature of the Violation(s):
The Fund for Sandy Point, LLC, commenced dredging activities without complying with the permit
condition. The Fund for Sandy Point, LLC, recorded the Restrictive Covenant only after being notified
that they were not in compliance with the issued permit.
i
It is my decision that a Class I Administrative Penalty in the amount of $5,000 shall be assessed against
the permittee. Perrnittee will pay the penalty by cashier's or certified check, payable to FAO, USAED
Wilmington, and delivered to the Office of Counsel, U.S. Army Engineer District, 69 Darlington Avenue,
Wilmington, North Carolina, 28403, within 30 days from the effective date of this letter.
The issuance of this Order constitutes final U.S. Army Corps of Engineers action in this case for
purposes of judicial review.
This order will become effective 30 calendar days following its issuance unless an appeal is taken
pursuant to 33 U.S.C.. § 1319(g)(8) or a hearing is granted. Since no hearing was held prior to the
issuance of this Order, a prior commenter may file a petition for a hearing within the 30-day period.
Issued this ? day of December 2009.
?1. 1"6
,Jefferson M. Ryscavage
Colonel, Corps of Engineers
District Engineer