Gastonia must pay back greenway grant to feds

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by Associated Press

Associated Press

Posted on May 12, 2011 at 10:46 AM

GASTONIA, N.C. (AP) -- The federal government hands out billions of dollars for local projects every year, but Gastonia leaders have learned that money comes with strings attached.

The Gaston Gazette reports the city is being required to repay $172,000 in federal money it received for a walking and biking trail.

An audit by the Federal Highway Administration found the city failed to adequately keep records on the project.

City Manager Jim Palenick says Gastonia tried to remedy the situation, but learned last month the federal agency was demanding the entire grant back.

The city has worked out a plan to pay back the grant over three years.

Palenick says Gastonia will think long and hard before accepting any federal grant money in the future.

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