The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Wednesday, October 2, 1996            TAG: 9610020650
SECTION: LOCAL                   PAGE: B3   EDITION: FINAL 
SOURCE: STAFF REPORT 
DATELINE: VIRGINIA BEACH                    LENGTH:   30 lines

BEACH COUNCIL DECLINES FARMLAND GRANT

The City Council decided to turn down a $100,000 federal grant Tuesday, saying the strings attached were costlier than the money was worth.

On Friday, the U.S. Department of Agriculture announced that Virginia Beach's farmland preservation program was one of 44 projects nationwide, and the only one in the state, to be awarded the grant money.

But Tuesday, city officials said they do not want the money this year because it would force them to make wholesale changes to their Agricultural Reserve Program.

The city's $87 million program, established last year, is intended to slow growth by paying farmers in the city's southern half to agree not to develop their land. The city hopes to buy its first such ``development rights'' in the next few weeks.

City Council member John A. Baum said the federal grant also would have allowed the federal government to take over the development rights if it was dissatisfied with the city's program.

``If they found any problems, they could have federal agents come on your property and see if you were in compliance,'' Baum told the other council members Tuesday. ``I don't think we can afford this $100,000.''

City officials said they hope the federal grant, now in its first year, will become more flexible, allowing the city to accept future offerings.

KEYWORDS: VIRGINIA BEACH CITY COUNCIL GRANT by CNB