Seaside Park: Fernandina Finally Gets Back Some of Its $5 Million in Annual Bed Tax

By Mike Lednovich/Editor

FERNANDINA BEACH - The City will finally get back a significant portion of the roughly $5 million in tourist development taxes generated annually within the city but controlled by Nassau County.

The City Commission voted 5-0 last Wednesday to approve an agreement with the county for a $4 million overhaul of Seaside Park at Sadler Road and South Fletcher Avenue.

Under the agreement, Nassau County will use tourist development tax revenue — commonly known as bed tax money — to pay 70% of the project’s eligible costs. The city will provide the remaining 30% from its capital funds.

The county’s estimated share is $2.8 million, while the city’s contribution is estimated at $1.2 million.

City Manager Sarah Campbell acknowledged that Fernandina Beach has long complained that it generates millions of dollars in bed taxes without receiving a fair share of the revenue.

“One of the concerns we’ve heard over and over again is that the city is not getting their fair share of tourist development taxes,” Campbell said. “This project brings that transfer of funds to fruition, 70% of the project costs will be coming from Nassau County tourist development tax dollars, and then the city is required to match 30% out of our capital dollars.”

Fernandina Beach hotels, resorts and vacation rentals generate about $5 million annually in bed taxes. However, the county collects and controls the money, and county commissioners have the final say over how it is spent.

The Seaside Park project represents one of the largest direct returns of those tourism dollars to a city-owned property.

Deputy City Manager Jeremiah Glisson said the project is the result of a long-running effort involving the city, Nassau County, the Amelia Island Tourist Development Council and the Amelia Island Convention and Visitors Bureau.

“The goals of this plan was to create a long-term investment strategy for those tourism dollars, define the roles for our seven beach parks, create a cohesive beach experience, improve infrastructure, and balance tourism with environmental protection,” Glisson said.

“And the first project within this plan is Seaside Park,” he added. “Again, this conversation began back in 2021, as there was a demand for using those TDT dollars and putting them back into our beaches.”

The original beach harmonization plan was publicly reviewed in 2022. Nassau County commissioners approved it in September 2022, and the City Commission approved it in June 2023.

The county hired Halff Associates in January 2024 to design and engineer the Seaside Park improvements.

Although the county is providing most of the money, the city will handle bidding, construction and project management.

Deputy City Manager Glenn Akramoff said the county agreed to provide $3 million upfront so the city would not have to carry most of the project’s construction costs while waiting for reimbursement.

Glenn Akramoff

“One of the concerns was cash flow, of course, because we’re building a lot of other things,” Akramoff said. “In the interlocal, you will see that they agreed to front us $3 million before we get started so that we don’t have the cash flow problems.”

Akramoff said the upfront payment will allow the city to move the project ahead and pay the contractor without waiting for the county’s reimbursement process.

“That was a positive that will allow us to expedite and get the contractor paid through the major portion of the project,” he said.

The work will include replacing boardwalks, stairs and shade structures, along with their foundations. New stormwater infrastructure will be installed to address flooding in the parking lot and drainage problems near the beach-driving entrance.

“We definitely have a challenge in the roadway as you enter the beach right there,” Akramoff said. “And then we do have some flooding in the parking lot.”

Parking spaces will be resurfaced with pavers, and the park will receive new sidewalks, pedestrian access, landscaping, trees, signs and lighting.

Akramoff said the new lighting will be low-level and turtle friendly.

“We do get a lot of use in the evening,” he said.

The city also secured the ability to construct the project in phases over two years because Nassau County is planning separate improvements along Sadler Road. Akramoff said the city is not necessarily planning to take the full two years but wanted flexibility in case the projects overlap.

The city expects to advertise the Seaside Park project for bids in September. The winning bid and related contracts will then return to the commission for approval.

Most outside permitting is complete, including environmental permitting. The selected contractor will still be required to obtain city building and electrical permits.

Construction could begin in late November or December. Akramoff said the work may take less than six months, with the city targeting April 1 for completion.

“It is not a long-term project,” Akramoff said. “This is not a, maybe not even a six-month project.”

“Our goal is by April 1,” he added, “so that when our peak season starts, they can fully use the beach.”

The city plans to complete the hardscape improvements and work near the beach-driving entrance first to avoid blocking access to the beach.

Commissioner Joyce Tuten raised concerns about using pervious pavers in an area where blowing and vehicle-tracked sand could clog the spaces that allow water to drain.

Akramoff said the pavers are designed to allow water to pass through the material as well as through spaces between the pavers. He said the city will also have to perform regular maintenance.

“We will also — there is a maintenance process that you need to do regularly, and we’ll keep up with that,” he said.

Tuten also emphasized that all landscaping must use native plants because of the conditions attached to the Florida Communities Trust grant used to acquire Seaside Park.

“I did see the native plant list,” Tuten said. “It is all native.”

She said the city must monitor the landscaping carefully because the grant requires the plantings to be “100% native.”

The agreement next goes to the Nassau County Commission for approval.

The city resolution places the project budget at $4 million. However, the accompanying county agreement says as much as $4.3 million in tourist development tax money could be made available and provides for the initial $3 million transfer to the city. The documents do not explain whether the additional amount is contingency funding.