Submitted by Suanne Z. Thamm
Reporter – News Analyst
On November 14, 2013, the second floor conference room at Fernandina Beach City Hall was the setting for the first post-election meeting of the CRA Advisory Board. Members briefly discussed the resounding defeat in the November 5 election of the referendum to remove a 2% arbitrary size restriction on CRAs within the city, attributing the defeat in part to lack of visible improvement in the existing CRA during the 8 years following its creation. Committee members devoted most of their discussion to identifying strategies to overcome the perception among potential developers that the Fernandina Beach City Commission (FBCC) obstructs, rather than facilitates, development within the riverfront Community Redevelopment Area (CRA).
CRAAB member Lou Goldman cited the absence of a CRA manager as a significant disadvantage to development. He said that the city should be diligently soliciting a developer for the area. Deputy City Manager Marshall McCrary replied that there is no money in the city’s budget for such a position. Community Development Department (CDD) Director Adrienne Burke added that while city staff can help a potential developer understand city codes and development requirements, it would not be proper for them to act as advocate for any developer. A visibly frustrated Mike Zaffaroni, CRAAB Chair, said, “We are just sitting back waiting for something to happen. If we are sitting on our hands, the likelihood of [development] happening is much, much less. We need to show the initiative, not be passive.” Zaffaroni suggested the possibility of a CRAAB member serving as a developer advocate.
Steve Rieck, Executive Director of the Nassau Economic Development Board, requested and received permission to address the CRAAB on recent developments regarding the former Standard Marine and Tringali properties located in the CRA. He reported that Synovus Bank currently owns the property following foreclosure proceedings. At this point Synovus is not interested in subdividing the property. There have been 21 serious inquiries into purchasing the property, but to date no one has met the bank’s minimum asking price.
Synovus has announced that the final day for accepting bids on the property is Friday, November 15, 2013. Should no acceptable bid be received, their announced intention is to bundle these properties with other properties that it owns in other jurisdictions to sell in a single transaction. If this happens, the Fernandina property may or may not be subdivided or developed in the near term.
When asked why selling the local property has become so difficult, Rieck replied, “Front Street improvement is the game changer.” He said that until Front Street flooding problems can be addressed, “All bets are off.” He added that potential developers have also expressed the need for a quiet zone, which would involve city investment of approximately $500K to bring railroad crossings up to speed on Ash and Centre Streets. Unless developers can work out some arrangement with city officials to address infrastructure needs, there will probably be no deal.
He said that the city missed an opportunity to address these concerns when money was available (the so-called Forward Fernandina $1.1M loan) but not used. He expressed concerns raised by potential developers that it is too tough to develop in Fernandina Beach, that there is no clear, consistent message coming from the City Commission. Even if a developer did purchase the property, it would probably take 2-3 years to get income from it under good circumstances, while still having to pay taxes on the property.
Zaffaroni said the message to developers from the city seems to be, “If you want to invest your money, we’ll think about it.” He contrasted the city’s posture with that of the county, suggesting that there seems to be a feeling among many city residents that population needs to be capped and development halted, while Nassau County sends a message that it is open for business. Such a posture, he suggested, sends a message to young entrepreneurs that Fernandina Beach prefers retirement living to development that would bring more jobs and money to the community.
Rieck said that the city needs to have someone who can cut the elements of a development deal and bring it forward to the FBCC for approval. Rieck said that he is dealing with multiple potential development sites in the city and the county and can’t devote full time to the Fernandina Beach CRA. He cited as an example the former Florida Rock plant, located in the county on South 8th Street. That property is now owned by Vulcan Materials, which purchased it at the height of the real estate market. Vulcan has resisted efforts to clean up the site or apply for a brownfields grant until a buyer can be brought forward.
The CRAAB will meet with the FBCC sometime in January 2014 to address the future direction of the CRA and the committee’s role. Member Goldman suggested that the city consider expanding the existing CRA up to the 2% limit imposed by the city charter. He also expressed his willingness to serve as CRA advocate. CDD Director Burke said that the CRAAB would probably want to clarify with the FBCC their willingness to support any project brought forward by a CRA advocate.
One member was heard to remark, “Let’s at least act like we want [the CRA] to work. Or get rid of it.”
There is currently one vacancy on the CRAAB. Potential applicants, who must be city residents, should express interest to Interim City Clerk Kim Briley, [email protected] or 904-310-3115.
Editor’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.
November 15, 2013 1:27 p.m.