At Pilotonline.com:

Another 16 homes were taken out of the Hurd’s Cove district because permitting agencies said it would cause too much damage to wetlands, said coastal manager Phill Roehrs.
The city can work on some wetlands, Roehrs said, but federal environmental agencies require the city to replace them somewhere else. Replacing the damaged wetlands in Hurd’s Cove would almost double the cost of the $2.9 million dredging program.