Port of Fernandina Officials clash over future use of strategic waterfront property

By Mike Lednovich/Editor

FERNANDINA BEACH - One Ocean Highway and Port Authority (OPHA) commissioner sees a port owned waterfront parcel as an opportunity to diversify and generate new income for the financially struggling special district.

But another commissioner wants to keep the land status quo - leaving the property vacant and available for use by the Port of Fernandina operator Relay Terminals. That position wouldn't benefit OHPA an extra dime.

At issue is .82 acres of riverfront land that sits between the Beacon Fisheries packing plant and the former petroleum/docks facility just south of the port entrance. The land has sat undeveloped since OHPA acquired the parcel in 1989 for $948,000, according to Nassau County records.

The clash over future use of the property took place Thursday during OHPA's June meeting as a result of Vice Chairman Scott Moore seeking a $100,000 U.S. Department of Agriculture Rural Business Development grant to study potential uses of the lot. The grant application required OHPA's approval.

Moore argued the authority can no longer afford to leave potentially valuable assets idle while relying almost entirely on lease revenue from the Port of Fernandina.

"We have this piece of property that's sat fallow for years and years and years," Moore told fellow commissioners. "There's never been the right time."

Scott Moore

He said OHPA's financial struggles in recent years demonstrate the risk of relying on a single revenue source.

"As we've learned, as we've worked through our different budget challenges over the years, putting all our eggs in the Port of Fernandina basket as our only source of revenue is problematic," Moore said.

The proposed study would evaluate what grant documents describe as the property's "highest and best use."

Among the concepts identified for analysis are:

• a commercial fishing dock with seafood packing and storage facilities.

• a transient vessel marina serving Intracoastal Waterway traffic between the Northeast and South Florida.

• a general commercial marine facility with multiple waterfront uses.

According to the draft grant application, OHPA believes the property could support economic diversification, create jobs and generate new revenue while preserving working waterfront uses. The site is zoned Industrial Waterway and is located within Fernandina Beach's Community Redevelopment Area.

The application also points to a recent Northeast Florida Regional Council shrimping industry study and an ongoing state water quality assessment that could eventually support commercial shellfish aquaculture in Nassau County. A modern commercial fishing dock and seafood support facility could help strengthen the local seafood economy and create new employment opportunities, according to the proposal.

But OHPA Chairman Ray Nelson questioned whether the authority should focus its attention and limited resources elsewhere.

Nelson argued the parcel is not truly vacant because it serves as overflow parking and equipment storage for port operations, particularly when multiple ships are in port or during flooding events.

Port operator Relay Terminals President Ted McNair agreed the property has operational value.

"We do rely on it for surge parking," McNair told commissioners. "Especially with flooding."

McNair said the property provides a place to move workers' vehicles and equipment out of harm's way during port operations.

Nelson said that makes the parcel more valuable to the port than it might appear from a casual inspection.

"I don't think it's sitting idly vacant per se because it is still being used," Nelson said. "I've seen vehicles parked in there from time to time."

Nelson also questioned whether OHPA should commit matching funds while the port continues to face infrastructure and maintenance needs.

"We have so many items within that fenced restricted area that need attention," Nelson said, citing equipment, facilities and other port improvements.

Moore countered that the feasibility study itself would not commit OHPA to any redevelopment project and would simply provide information for future decisions.

"This is an attempt to take a piece of property that's separate from the port and turn it into a revenue-generating, potentially, facility that can generate revenue for OHPA," Moore said. "Which will allow us to further engage in business development throughout the county."

Moore also noted that applying for the grant would not obligate the authority to accept any future award or move forward with development. Additional board approvals would be required if funding is received.

Complicating the discussion was the grant deadline. The USDA application is due June 30, leaving little time for further board deliberation. Commissioners Miriam Hill and Justin Taylor were absent.

Commissioner Mike Cole ultimately supported moving forward because the application itself carried little immediate risk.

"If we're not going to spend any money right now, then go for it. Let's see what they say," Cole said.

After nearly 20 minutes of debate, commissioners voted 2-1 to authorize submission of the grant application, with Moore and Cole supporting the measure and Nelson opposed.

If awarded, the grant would fund a 12-month study examining market demand, infrastructure requirements, financial feasibility and economic impacts of potential redevelopment options before OHPA decides whether to pursue any future project on the waterfront parcel.