Fernandina Beach, RYAM Bioethanol Mediation Ends in Impasse; Litigation to Resume

By Mike Lednovich/Editor

FERNANDINA BEACH — Court-ordered mediation between the City of Fernandina Beach and Rayonier Advanced Materials (RYAM) over the company’s proposed bioethanol plant has ended without a settlement, sending the high-stakes legal fight back to court.

A mediator’s report filed Wednesday in Nassau County Circuit Court shows the parties failed to reach an agreement following mediation sessions held April 13 and May 20. The report formally declared an impasse in the long-running dispute over RYAM’s effort to construct a second-generation bioethanol facility at its Gum Street pulp mill.

“NO AGREEMENT was reached,” mediator George E. Schulz Jr. wrote in the court filing submitted May 20.

In a statement issued Thursday, the City of Fernandina Beach confirmed the mediation had concluded unsuccessfully and said legal proceedings in both state and federal court will now resume.

“Because the cases are currently held in abeyance, the parties will submit a new case management proposal to the court, the abatements will be lifted, and litigation proceedings will resume,” the city said. “The City remains committed to addressing these matters through the judicial process.”

The city added it could not comment further because the litigation remains pending and mediation communications are confidential.

The legal dispute stems from the city’s February 2025 rejection of RYAM’s proposed bioethanol plant, a project company officials argued would sustain more than 300 manufacturing jobs, reduce emissions and position the Fernandina Beach mill for long-term viability. Critics, however, raised concerns about fire risks, ethanol storage, truck traffic and the plant’s proximity to neighborhoods and downtown Fernandina Beach.

The City Commission voted to deny the project after city staff determined the proposal — which included fermentation and distillation processes to produce approximately 7.5 million gallons of second-generation bioethanol annually — was not a permitted use under the city’s industrial zoning code. RYAM has consistently argued the project fits within existing industrial operations at the mill and should have been approved.

Following the denial, RYAM filed litigation in Nassau County Circuit Court challenging the city’s decision and later filed a separate federal lawsuit. The company also sought $6.6 million in damages, alleging the city’s actions diminished the value of its property and harmed its business interests.

The mediation sessions represented the first serious effort to resolve the dispute outside the courtroom. When mediation was announced in April, proceedings were expected to remain confidential under Florida mediation rules, though both sides agreed the outcome itself could be disclosed.

With no settlement reached, the case now returns to litigation.