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Feds Want Gulf Shores to Pay Back $9.8 MIllion

By Associated Press

Gulf Shores, AL – Officials in Gulf Shores have been told that government auditors want the city to return nearly $9.8 million used for cleanup after Hurricane Ivan in 2004.

The Office of Inspector General for the U.S. Department of Homeland Security has scrutinized city records for more than a year. On Thursday, Gulf Shores received official notice that the government's auditors have recommended that the Federal Emergency Management Agency seek repayment of $9.73 million paid to the city for debris cleanup after Ivan plus $65,526 in interest earned on part of the money.

City Administrator Steve Garman says Gulf Shores will send a group to Clanton in late April to meet with FEMA officials.

At issue is how Gulf Shores collected, cleaned and replaced the sand that Ivan's surge forced from the beach and into streets, driveways and yards.

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