Fernandina Beach approves $2.1 million purchase of 2nd Street Warehouse parcels for future use

The 2nd Street parcel (left) could be converted for use as a parking lot (right).

By Mike Lednovich/Editor

The Fernandina Beach City Commission voted 4–1 Tuesday to approve the purchase of two downtown parcels on South 2nd Street, embracing what city officials described as a long-term strategy to control key property near City Hall for future civic use.

The acquisition included property at 115 South 2nd Street and an adjacent vacant parcel, for a negotiated price of $2.1 million.  The parcels total approximately 0.45 acres and include a deteriorating 1925 warehouse structure that city staff expect to demolish following required approvals.

City Manager Sarah Campbell told commissioners the property — located directly across from City Hall — has been on the market since early 2024 and represents a rare opportunity for the city to assemble a larger footprint downtown.

Campbell said combining the parcels with adjacent city-owned land would create a larger assemblage of roughly four acres, providing flexibility for future redevelopment, including potential parking or potentially a new city hall.

The city manager emphasized that most of the purchase is be funded through developer-paid impact fees rather than property taxes.

“This is developer funded for growth only. This is not taxpayer money. It's not part of our general fund,” Campbell said.

The city plans to use approximately $1.8 million from its General Government Impact Fee Fund, with the remaining balance — including the demolition of the warehouse and closing costs estimated at about $125,000 — coming from general fund contingencies.

The purchase will remove about $4,200 in annual city property tax revenue from the rolls, though commissioners said the impact would be minimal.

Commissioner Joyce Tuten estimated the loss at “1/20th of 1% of our collected taxes,” adding that future redevelopment could have yielded higher tax revenue but that the tradeoff was justified.

Commissioners Tuten and Tim Poynter framed the acquisition as a strategic investment in the city’s future, particularly as questions persist about the long-term viability of the current City Hall building.

“Most people realize how old and dysfunctional this building is,” Tuten said. “A future commission 10 years from now, 20 years from now needs a new building or they need a serious renovation.”

She added the purchase “secures an option” to keep City Hall in the downtown core, which she described as a critical civic and economic anchor.

Commissioner Poynter echoed that sentiment, arguing that opportunities to acquire centrally located property are rare.

“When we have an opportunity to get a property like this for the city to hold and control, we need control,” Poynter said. “When that property goes away, it's gone forever.”

However, Vice Mayor Darron Ayscue cast the lone dissenting vote, citing philosophical concerns about removing commercially viable land from the tax rolls.

“I think that property… would be better commercially redeveloped on the tax rolls than they would be the city owning them and simply just sitting on them,” Ayscue said.

Mayor James Antun countered that the property has remained vacant in part due to redevelopment challenges, including floodplain constraints.

The purchase follows a February commission workshop where a majority expressed interest in pursuing the property, continuing a pattern noted in past Fernandina Observer reporting of multiple boards and prior commissions exploring acquisition of the site as part of broader downtown and waterfront planning discussions.

City officials said the property’s location within the Community Redevelopment Area and proximity to existing civic uses — including City Hall, the library, and other public facilities— has long made it a target for potential public use.

Next steps include completing an environmental assessment, closing within 30 days, and seeking Historic District Council input before demolition and site preparation begin.

If ultimately repurposed for parking or other civic uses, the property may also require rezoning.

The approval adds to the city’s existing inventory of 224 parcels — just over 2% of all properties in Fernandina Beach — most of which are dedicated to parks, infrastructure, and public facilities rather than commercial use.