Fernandina Beach City Commission annexes The Palms into the city; Owners threaten legal action

Submitted by Suanne Z. Thamm

Attorney Harrison Poole
Attorney Harrison Poole

 Reporter-News Analyst

At the June 4, 2013 Fernandina Beach City Commission (FBCC) meeting, Attorney Harrison Poole, representing the condominium owners of The Palms on Nectarine Street, once more articulated his arguments for not annexing this property into the city of Fernandina Beach.  Once more the Fernandina Beach City Commission rejected his arguments and voted to approve unanimously on second and final reading ordinances 2013-04, 2013-05 and 2013-06, which annexed the 8.52 acres of land occupied by the condominium complex into the city, changed the land use from county to the appropriate city category, and assigned city zoning to the newly annexed property.

City Attorney Tammi Bach

Property owners and representatives of The Palms Condominium Owners Association announced that they would pursue legal action to reverse this ruling.  City Attorney Tammi Bach reminded city commissioners that should the plaintiffs prevail in court, the city will be liable for their attorney’s fees.  In response to a question from Vice Mayor Charlie Corbett she added that should the city prevail, the losing party will not be required to pay the city’s legal fees.

Poole laid out arguments to support the position of the 80 property owners, who unanimously oppose the annexation.  He maintained that it is an involuntary annexation, as opposed to the city’s claim that it is being done voluntarily according to a properly executed annexation agreement.  He claimed that even if the developers had properly executed the annexation agreement, the agreement had never been officially recorded so current condo owners had never been put on notice.  He also claimed that the statute of limitations for annexation under the alleged agreement has run out.

Commissioner Pat GassCommissioner Pat Gass asked, “Could this development have been constructed without city water and sewer?”  Poole replied that it could not.  City Attorney Bach added, “[The City] provides such service in exchange for executing an annexation agreement.”  The annexation agreement provides that when the parcel becomes contiguous to the city, it will be annexed into the city.  Poole maintained, however, that the parcel became contiguous on June 6, 2006, at which time the city made no move to annex it into the city.  The statute of limitations on such actions is 5 years.

City Manager Joe Gerrity, in responding to Poole’s inference that upon annexation, impact fees would be due, said, “No impact fees are due upon annexation.  Can we cut to the chase?  What is [the concern]?  The taxes?”

City Manager Joe Gerrity
City Manager Joe Gerrity

Poole replied that the city’s building requirements raised another set of concerns.  Bach and commissioners reminded Poole and the audience that both the city and Nassau County follow the Florida Building Code.  Gerrity jumped in to defend the city’s Building Department, stating that in his first year on the job he “has heard nothing but good” about the department.  Later he added that he had received comments praising the city over the county in this area.

Barbara Ehrenberg, a condo owner and member of the condo owners association board, said that current owners have high hopes for the future.  They are planning to do a lot of work on the property that the developers neglected.  She cited the cost of city permits.  She said that owners would not choose more regulation and higher costs levied by the city.

Larry Blaustein, condo association treasurer, said that the association has not found one owner in favor of annexation.  He claimed that it will cost owners $100-300 more annually to live in the city, once the utility surcharge is subtracted from the increased taxes.   Plus, he added, “We don’t want the hassle of dealing with the city.”

Vice Mayor Charlie Corbett
Vice Mayor Charlie Corbett

Vice Mayor Charlie Corbett said, “What you’re saying is that ‘We don’t want to pay our fairshare of taxes.’”  Blaustein disagreed.  “We are not trying to get a free lunch,”  he said.

After Mayor Sarah Pelican closed the public hearing, City Manager Gerrity presented information on the tax impact that would result from annexation.  Citing 4 specific examples of units taken from the Nassau County Property Appraiser’s website, he showed that in 3 of the 4 cases involving homesteaded properties, out of pocket expenses for condo owners would decrease.  In the one case where the condo was not homesteaded, the expense would rise about $135.  He said that he did not have the resources to calculate changes for each of the condo units, but that it seemed to him that owners’ opposition “is not a financial thing.”  He also cited lowered fees for fire hydrants within the complex that would reduce condo fees.

Commissioner Gass moved to approve the annexation and Commissioner Arlene Filkoff seconded her motion, which passed on a 5-0 vote.  A court reporter made a record of the discussions on these ordinances on behalf of the condo owners and their attorney for use in any future legal proceedings.

Suanne-2Editor’s Note:  Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city.  We are grateful for Suanne’s many contributions to the Fernandina Observer.

June 5, 2013 3:04 p.m.