Reporter-News Analyst
This is the second part of a 3-part series on the Fernandina Beach strategic plan known as Forward Fernandina. The first part, published on February 13, provided information on the background and genesis of the plan.
So where are we today?
The initial $1.883M required for Phase I of Forward Fernandina has been borrowed and is sitting in city accounts to fund the first phase of the projects identified under the Forward Fernandina plan. Loan origination fees have been paid; franchise fees have gone to 60 cents per $100 of power used; the city is paying roughly $40K in interest on the loan. Zev Cohen has done preliminary engineering and permitting work for infrastructure improvements on Front Street.
The city has voted to spend $600K as part of a tripartite agreement with Nassau County and the Friends of the Library to rehabilitate and expand the city building housing the library collections and functions on North 4th Street. The city has also agreed to spend $125K of the amount to match money put up by the Tourism Development Council (TDC) to restore the Centre Street train depot. [The Amelia Island Fernandina Restoration Foundation is also contributing $50K to the total project.] Approximately $1M of the loan has not been specifically committed or spent to date.
Failure to honor commitments made to Nassau County, the Friends of the Library, the Tourism Development Council and the Restoration Foundation is bad faith at this point and would have serious repercussions for any future joint endeavors. Likewise, returning borrowed money when there are so many needs downtown seems penny-wise and pound-foolish. Franchise fees, a non-tax revenue stream, is being used to repay the low interest loan. Would those same commissioners who talk about “giving the money back” also roll back franchise fees? Or would they simply pump up the general fund with those revenues, thereby violating the public trust, since the increases were based upon specific capital improvements?
The commission originally developed the Forward Fernandina plan to accomplish two primary objectives: broaden the tax base and encourage economic development in the historic downtown business district. While the city definitely has additional needs, would fulfilling those needs with loan proceeds further these two goals? One possibility mentioned has been reprogramming the money to fund a new Humane Society animal shelter. Since the Humane Society has not yet raised its share of the match, such consideration seems premature. Also, while no one can argue that a new shelter is in the interests of the community, would it really promote economic development or broaden the tax base? Adding bathrooms to the MLK Recreation Center has also been mentioned as a necessary capital improvement. Does it make sense to spend upwards of $50K to add bathrooms to an underutilized city facility? Replacing sewers in Old Town has also been identified as another possible use for the loan proceeds. But is it necessary to use this funding source for that project rather than merely adjusting priorities within the current Utility Department budget?
If the city returns all or some of the Forward Fernandina loan, it will have wasted more than the loan origination fee and interest paid to date. It will have wasted the work done and paid for with respect to Front Street infrastructure engineering and permitting. It will have wasted staff efforts and those of citizens who, at least since the 1990’s, have volunteered their time and talents serving on myriad city committees to identify goals and projects to improve city life for residents, businesses and visitors. In short, it will have once more set the stage for Groundhog Day and the usual circular firing squads that cause much turmoil but produce little of lasting significance.
Lessons learned
Can we draw any lessons from the Forward Fernandina debacle to help future commissions avoid similar pitfalls? Perhaps. These are some of the lessons that we should keep in mind before launching any big project:
But not all the lessons learned reveal points of pride for our city. For example:
Hindsight is always 20-20. Forward Fernandina could have been handled differently and possibly with better results. Should we sacrifice the entire plan because it wasn’t done perfectly? Or should we do what we can with what we have and live on to work better and smarter on future efforts of this type? It will be up to the current Fernandina Beach City Commission to decide the future of Forward Fernandina.
Next installment: Part III: The ball is in YOUR court.
Editor's Note: Suanne 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 impacting our city. We are grateful for Suanne's many contributions to the Fernandina Observer.
February 14, 2013 5:00 a.m.