On the Waterfront

Submitted by Suanne Z. Thamm
Reporter – News Analyst

March 3, 2016 9:14 a.m.

Despite several stops and starts over the past few years, it appears that the current Fernandina Beach City Commission (FBCC) is holding firm to its commitment to improve the Amelia River front and Front Street area, even if it involves borrowing money. At the March 1, 2016 FBCC meeting, commissioners unanimously voted to move forward on the purchase of what has become commonly known as the Vuturo property, located at 101 North Front Street. Toward this end, the FBCC unanimously approved two resolutions—2016-33 and 2016-34—amending the FY 2015/16 Budget and the Five Year Capital Improvement Plan while also declaring the official intent of the city to reimburse itself from the proceeds of debt for expenses to be incurred with respect to purchasing the property. In other words, the city will pay for the property with money from its reserves, which will later be replenished with funds borrowed for that purpose.

101 North Front Street
101 North Front Street

Purchasing the land in question will allow the city to expand the marina northward into deeper water, thereby saving the city the costs of dredging boat slips and transporting the dredged material to an acceptable site. The historical cost for this operation has run $200-400K every two years.

The FBCC approved incurring additional indebtedness in an amount not to exceed $800K to cover the actual purchase of the property ($685K), loan financing costs ($26K), the two-phase feasibility study ($40K), title insurance, title search, recording fees, transfer taxes and the statutory closing surcharge.

City Manager Dale Martin reported that the city had just received the due diligence report from Applied Technologies Management (ATM). The FBCC had directed that this study be done before closing on the sale of the property. While parts of the report appear to still be in draft form, the general conclusion is positive. The most conspicuous issue remaining to be resolved is whether the Corps of Engineers (COE) will approve moving the marina so close to the existing channel. However, since the COE approved this action previously, the city remains cautiously optimistic that they will do so again.

DSCN6384Commissioner Len Kreger said that while he supported the purchase, he had “monetary concerns” over other projects on the horizon such as opening Alachua Street and solving stormwater problems. He said that the city is talking about increasing the stormwater fee and it is also likely that there will be a millage fee set this year for the new MSTU to fund beach renourishment. “I just wonder,” he said, “we keep adding on but what do we plan to do about money?”

Vice Mayor Robin Lentz also expressed concern because the portion of the feasibility plan that she had been most concerned about had just arrived yesterday. Yet she acknowledged that the city has talked about purchasing the land in question for twenty years. “Sometimes you do have to take a risk,” she said, “but I am just being honest with you. I am not saying no, but I wish we could have about two more weeks to study the issue. I’d like to have a plan before we purchase the property.”

City Manager Dale Martin (l) and City Commissioner Tim Poynter confer.
City Manager Dale Martin (l) and City Commissioner Tim Poynter confer.

Commissioner Tim Poynter said he had never anticipated that the due diligence study was going to address everything, especially in light of the timetable required for a response from the Corps of Engineers. He cited the city’s ongoing dredging expenses that can only stop if the marina is moved to the north of its current location. “Sometimes opportunities come our way,” he said, “and I truly believe that this is a terrific price. It’s going to be one of those things that if the city doesn’t move forward on this, someone else eventually will. Then we’ll still be stuck with the dredging problem, and someone down the road will say ‘I can’t believe that the city had an opportunity to take some of these boats out of a mudflat.’ I can guarantee you that it is only going to get more expensive. We are no longer allowed to spread the dredge material at the airport, so we are going to have to pay to ship it someplace else. … [The contemplated purchase] is actually forward thinking. That’s why I am going to support it, and I think we need to do it now. That doesn’t mean we can’t apply for grants. Once we own the property and have a plan in place, that’s when we can go out and secure money. Two more weeks won’t change my mind one way or the other.”

“I don’t disagree with that,” Kreger said. “I just want to emphasize that there is a lot of exposure out there for the citizens with taxing and bonding. We need to have a better handle on what we are doing. This particular project, we could probably get $100K for it from the Florida Inland Navigation District (FIND). The value will always be there for the property.” Kreger also talked about the need to address flooding issues on Front Street. “We need to look at the whole plan,” he said.

DSCN6383Commissioner Roy Smith agreed with Poynter, reminding commissioners, “This issue has been going on for 20 years now. It’s a heck of a buy on the property. If we don’t buy it, I’m sure somebody will buy it. The owners have told us that. I don’t want to take that gamble. To get away from dredging that marina, spending $300K every two years for nothing, because after a year a lot of those slips aren’t usable … The worst thing that can happen, if the [marina plan] doesn’t work out, then we sell the property. And I’m sure we can get more for it than we paid for it.”

Poynter added another reason. “We are actually buying this for the water,” he said. “If it floods—and I don’t mean to be campy about this—but golly gee, what could be better than more water in a marina?”

City Attorney Tammi Bach informed commissioners that the property is for sale, and it is in foreclosure. She said that the city had two appraisals on the property, with one coming in at $600K and the other at $700K. She said that some legal issues with the adjoining Simmons property were not clear enough for her liking, but that she and City Manager Martin have met with Steve Simmons and his partners, who authorized her to say they are committed to working with the city “to make this project work.” Bach added, “Obviously there is some consideration we will have to give to Mr. Simmons and his partners. I was reminded during this meeting that the city has passed on purchasing this property previously, not just once.” Bach said that the last time she was involved in the potential purchase, the asking price was over $2M.

Bach said that she has asked to extend the closing date on the property purchase, currently scheduled for March 4. “But the answer is no, we can’t,” she said. “So we are going forward with the due diligence with some gaps in it. In full disclosure both your consultant and I are telling you that. But the City Manager and I are also telling you that this is an opportunity that you shouldn’t pass up, and that Mr. Simmons and his partners will work with the city.” Simmons, who was in attendance, appeared to signal his agreement from the audience.

When City Clerk Caroline Best called the vote, all commissioners were in agreement to proceed with purchase of the property.

The FBCC has scheduled a workshop on the Amelia Riverfront for April 12, 2016 from 5-8:00 p.m. at City Hall Commission chambers.

Grant request for pumpout boat

The FBCC handled one additional item related to the city marina by unanimously approving a grant application to the Florida Department of Environmental Protection’s Clean Vessel Act Program for the purchase of a pumpout boat for sewage collection from boats in the mooring field. This grant, if approved, would fund $75K on a 3-1 match of the city’s $25K.

The Fernandina Harbor Marina operates a marine pumpout station on the dock for vessels to properly dispose of raw sewage. But even with two pumpout systems, having several large boats waiting in line to use the system can cause congestion at the docks. As the number of moored boats increases in light of the city’s planned mooring field expansion from 20 to 100 devices, a pumpout boat would allow Marina personnel to go to the moored boats and pump sewage into a holding tank that can then be disposed of properly at the pumpout station. Westrec’s marina manager Joe Springer said that at this time there is no additional need for more staffing to operate the pumpout boat, but that may change as the mooring field builds out.

Suanne Thamm 4Editor’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.

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Dave Lott
Dave Lott(@dave-l)
8 years ago

A wise investment for the City.