Closed-Door Mediation Set in Fernandina Beach Bioethanol Dispute Between City and RYAM

By Mike Lednovich/Editor

FERNANDINA BEACH, Fla. — A court-ordered mediation between the City of Fernandina Beach and Rayonier Advanced Materials (RYAM) will take place April 13–14 in Jacksonville, but the public will not be allowed to attend — and what is said there will remain confidential under Florida law.

Although the Notice of Mediation is a public court filing, the sessions themselves are governed by Florida Rules of Civil Procedure 1.720 and the Florida Mediation Confidentiality and Privilege Act, which require that mediation proceedings be private. Only the parties, their attorneys and the mediator may participate unless all sides agree otherwise. Statements made during mediation — including settlement offers, legal arguments and concessions — are considered privileged and generally cannot be disclosed publicly or used later in court.

For the public, that means while the date, location and mediator are known, the substance of the negotiations — and whether either side makes concessions — will not be visible unless a settlement is ultimately filed in court.

The mediation will be conducted by Jacksonville mediator George E. “Buddy” Schulz Jr. at the EverBank Building and follows a court-approved pause in the litigation to allow both sides to pursue a potential resolution.

The case centers on RYAM’s proposal to construct a second-generation bioethanol facility at its Gum Street pulp mill, just south of downtown Fernandina Beach.

The company has described the project as a roughly $50 million investment that would convert byproducts from its existing pulp manufacturing process into renewable fuel. RYAM has argued the operation is consistent with its long-standing industrial use of the site and would help sustain hundreds of local jobs.

The Fernandina Beach City Commission denied the project in February 2025, concluding that bioethanol production qualifies as “chemical manufacturing or refining,” a use prohibited under the city’s Comprehensive Plan and Land Development Code.

City officials have reaffirmed that interpretation in subsequent actions, maintaining that approving the plant would violate long-standing land-use restrictions even within industrial zoning.

That decision triggered the current legal dispute.

RYAM challenged the city’s denial in court and later filed a claim seeking $6.6 million in damages, arguing the decision unfairly restricted its property rights and sharply reduced the value of the property tied to the proposed project.

The claim was filed under the Bert J. Harris Jr. Private Property Rights Protection Act, a Florida statute that allows property owners to seek compensation when government action is alleged to place an “inordinate burden” on the use of their land.

City officials have rejected that claim and are defending their interpretation of the Comprehensive Plan.

The proposed facility has generated sustained public opposition, with residents raising concerns about safety, environmental risks and increased industrial activity near nearby neighborhoods and the Amelia River.

Critics have pointed to the potential hazards associated with ethanol production, while supporters have emphasized the economic importance of the mill and the potential for renewable energy production.

The mediation represents a pivotal point in the case. If the parties reach an agreement, the terms could resolve the dispute without further litigation — though only the final outcome, not the negotiations themselves, would become public.

If no agreement is reached, the case will return to court, where a judge will ultimately decide whether the city’s denial was lawful and whether damages are warranted.