New Port Customs House Wrinkle: Feds Will Prevail

By Mike Lednovich

The latest twist in the ongoing controversy regarding the U.S. Customs and Border Protection (CBP) building at the Port of Fernandina is that the feds are free to do whatever they want on the property despite city regulations regarding the land and structure.

Fernandina Beach City Attorney Tammi Bach said in an email to Commissioner Chip Ross that federal authority supersedes all local jurisdiction.

The Ocean Highway and Port Authority (OHPA) and CBP have been in a prolonged dispute over the historic structure and much-needed upgrades or total replacement of the building to meet the operational needs of U.S. Customs. But OHPA has no money to fund any improvements.

After Wednesday’s OHPA meeting in which the U.S. Customs demand was discussed, Ross emailed asking about the city requirements regarding the structure.

“Am I correct that in this case Customs would have to apply for the zoning change and therefore would have to own the property?” Ross asked the City Attorney.

Bach answered “Yes, the Feds preempt City zoning regulations. The Supremacy Clause of the U.S. Constitution.”

Her email provided the following: The federal government is immune to local zoning via the supremacy clause:
“To begin, the federal government is not bound by local zoning ordinances. The supremacy clause of the federal constitution provides that a constitutional exercise of federal power is supreme to the laws passed by the states or their subdivisions. Thus, local zoning ordinances must yield to any valid exercise of federal power.

U.S. Customs and Border Protection currently has a lease agreement ending in April 2024 at the current building at Third and Dade streets. Customs has said repeatedly that the converted single-family house is in dire need of upgrades and is not large enough for the agency to conduct port business. The port recently had to replace an air conditioning unit at the facility.

The U.S. Customs House is also located in the city’s historic district. All structures in this district must meet the stringent standards of design and materials by the city’s Historic District Council. Bach’s email makes it clear U.S. Customs would not have to abide by those standards or city zoning/restrictions.

In August, the CBP office in Jacksonville sent OHPA a letter demanding to know how OHPA plans to fund the construction of a new office. The letter from Jennifer Bradshaw, U.S. Customs and Border Protection’s Area Port Director in Jacksonville, detailed the agency’s dissatisfaction with having been promised a new facility at the port for several years with no signs of progress.

“To efficiently, and successfully perform its mission, CBP requires appropriate, up-to-date inspections space at the Port,” Jennifer Bradshaw, U.S. Customs and Border Protection’s Area Port Director in Jacksonville stated in the letter.

At their meeting Wednesday, former port director David Kaufman said in discussions with CBP, OHPA is considering hiring an architect to draw plans for an office that meets the needs of the agency. He said funding might come from the Florida Ports Council. A meeting with Bradshaw to discuss solutions to the customs house problem was being scheduled for October.

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RichardCain
Noble Member
RichardCain(@richardcain)
7 months ago

If the City would own the building but merely lease it to Customs … would the Supremacy Clause apply?

Mike Lednovich
Trusted Member
Mike Lednovich(@mike-lednovich)
7 months ago
Reply to  RichardCain

It is OHPA land and structure. The parcel is in the Historic District of the City.

RichardCain
Noble Member
RichardCain(@richardcain)
7 months ago
Reply to  Mike Lednovich

Yes, I know. So if it belongs to the City … back to my original question … does the Supremacy Clause apply? The Feds are merely using/leasing the facility … not owning and building it.

Douglas M
Noble Member
Douglas M(@douglasm)
7 months ago
Reply to  RichardCain

I agree with you….it doesn’t make sense that the Supremacy Clause would apply when they are leasing. They are free to obtain and build their own property, IMO. If CBP likes that location they can purchase it and renovate to suit their needs……but they won’t do that. I don’t think they get enough traffic to justify that expense. That is an overly broad interpretation of that clause.

Tammi Kosack
Trusted Member
Tammi Kosack(@tammi-kosack)
7 months ago
Reply to  RichardCain

Richard- the city does not own the land or the building. The Ocean Highway Port Authority owns both.

RichardCain
Noble Member
RichardCain(@richardcain)
7 months ago
Reply to  Tammi Kosack

Thanks. City or OHPA … either way it does not belong to the Feds … so the Supremacy Clause really doesn’t apply.

Bob Reisner
Active Member
Bob Reisner(@bob-reisner)
7 months ago

Repetition on my part: The story isn’t about how to pay for a new Customs facility.

Spending more money on something that has no value to 99% of the citizens of Fernandina Beach is not a good idea. We seem to be losing sight that after decades of operation the Port cannot afford to operate without continuous cash infusions by the City. That the Port needs more money isn’t new. In fact the Port can’t even afford to pay the annual tiny payment to the City.

After decades of operation the Port is continuously unprofitable and not a functioning enterprise. It is not a real business and not of any value to Amelia Island.

We all know this Port needs to close but no one wants to say it out loud.

Our city commissioners need to do their job and find a way to end this financial problem.

More here: https://bobreisner.substack.com/p/there-is-no-budget-problem-at-the

RichardCain
Noble Member
RichardCain(@richardcain)
7 months ago
Reply to  Bob Reisner

Your article here and on substack does not answer my question but I found it very interesting and raising some good points. I wonder if someone has some expertise or knowledge to attempt to refute anything you present. Thanks for your insights.

Rich Polk
Member
Rich Polk(@rich-polk)
7 months ago

Back when I worked for the US DOT we only used the Supremacy Clause as a last resort. Basically, the Supremacy Clause says that the Federal Government has “sovereign immunity” to any State, County or, local rules. The only time we ever used it was when we wanted to install a navigation aid that the local authorities were reluctant to approve. It’s a weak rule that can be disputed by the local authority having jurisdiction. It doesn’t mean much at all if the Federal Govt. doesn’t own the property in question.

Douglas M
Noble Member
Douglas M(@douglasm)
7 months ago
Reply to  Rich Polk

Thank you. Good info.