City Seawall: Before a Bond and Paid Parking, Try the Bed Tax

Commentary

At its meeting last Tuesday, the Nassau County Tourist Development Council (TDC) did something important: it opened the door for Fernandina Beach to apply for tourist development tax funding for major riverfront infrastructure projects — if they meet legal requirements.

That point was made plainly by TDC Chair/County Commissioner John Martin, who told TDC members he is “all in favor of any legal expenditure of tourist development tax dollars that can help the city out,” adding that projects must pass legal review and follow the same budgetary process as everything else.

That matters — because Fernandina Beach is facing a costly decision about how to pay for a long-needed seawall to protect its historic downtown waterfront from flooding, erosion, and rising tides.

As it stands now, the city is about to implement paid parking in historic downtown to pay for the seawall. But getting the city's fair share (47% of the $11.2 million in revenue comes from the city) for the project would pay for 70% of the costs.

Coastal marine engineers have warned that continued deterioration of the riverfront bulkheads and unprotected shoreline risks not only property damage, but also public access to the waterfront — the very place where residents and tourists gather for festivals, fireworks, and everyday enjoyment of the Amelia River.

City officials have discussed a bond referendum as one way to fund the seawall. That would mean asking local taxpayers to take on long-term debt, with interest costs layered on top of an already expensive project.

Before the city commits to that path, it should pursue a better option — one that state law already allows.

Florida Statute 125.0104(5)(a)5 expressly permits tourist development tax funds to be used for shoreline protection, erosion control, and the protection of publicly accessible waterfronts, including along rivers. This is not a creative interpretation or a legal stretch; it is a clearly enumerated use of bed tax dollars.

Fernandina’s downtown riverfront is:

• publicly accessible,

• central to the city’s tourism identity,

• the setting for major events such as 4th of July fireworks, Shrimp Festival, Dickens on Centre and Sounds on Centre to name a few.

• and is one of the most visited and photographed locations on Amelia Island.

Protecting that shoreline protects a core tourism asset.

During last week’s meeting, TDC member/City Commissioner Tim Poynter acknowledged a common public misconception — that tourist development tax money can simply be used to “fix infrastructure.” As he put it, “It does not put heads in beds, which is the goal.”

That statement accurately reflects how the TDC often evaluates spending. But it does not tell the whole legal story.

While general infrastructure like sidewalks, lighting, or parking does not qualify for bed tax funding, shoreline protection is treated differently under state law. It does not require proof of incremental hotel nights; it requires that the project fit within the statute’s listed purposes — which a seawall does.

John Martin

Chair Martin underscored that distinction when he explained that infrastructure projects must go through legal review and the normal budget process, saying, “If you’ve got a project, and it meets it … and if it passes legal review, and it makes it through the budget, I’m all for it.”

That is exactly where the seawall belongs.

If the city successfully secures bed tax funding for the seawall, it could:

• Scrap the need of a paid parking program

• reduce or eliminate the need for a bond referendum,

• avoid decades of interest payments,

• align the cost of protecting the waterfront with the tourism economy that depends on it.

As Martin noted, freeing up other city funds gives local officials more flexibility to address priorities without raising taxes or issuing debt.

Applying for bed tax funding does not guarantee approval.

But the legal pathway is clear, the public benefit is substantial, and the financial stakes for residents are significant.

Other cities like Miami Beach, Clearwater and Ft. Lauderdale are using bed tax funds on infrastructure.

The city should formally apply to Nassau County, present the seawall as a shoreline protection project under state law, and allow the proposal to receive the legal and budgetary review the TDC itself has said it welcomes.

The waterfront needs protection. The law allows it. And taxpayers deserve the chance to avoid an unnecessary bond if a lawful alternative exists.

How other cities use bed tax funds for infrastructure Projects:

Fort Walton Beach (Okaloosa County)

Okaloosa County has approved tourist development tax funding for waterfront improvements in Fort Walton Beach that included a reinforced seawall and public boardwalk along the downtown shoreline. The project was justified under the statute’s authorization for beach and shoreline protection and public waterfront access, recognizing the area as a central tourism asset. The funding was part of a broader waterfront revitalization effort aimed at protecting erosion-prone shoreline used heavily by visitors.

Marathon (Monroe County / Florida Keys)

In the Florida Keys, Monroe County’s Tourist Development Council has long operated a capital grant program using bed tax revenue for “brick-and-mortar” projects. The City of Marathon received TDT funding for construction of public park facilities, including restrooms and concessions, which county officials justified as necessary visitor infrastructure supporting tourism use of public waterfront parks.

Cape Coral / Lee County

Lee County has used tourist development tax funds for shoreline and boardwalk projects in several municipalities, including Cape Coral, where public waterfront parks and overlooks were improved or protected. These projects were framed as enhancing visitor access to the Caloosahatchee River and protecting shoreline assets that support tourism, rather than as general municipal infrastructure.

Florida Keys (Multiple Municipalities, Monroe County)

Across the Florida Keys, Monroe County’s TDC regularly allocates bed tax funds for capital improvements described as “destination infrastructure,” including repairs, renovations, and upgrades to publicly accessible waterfront parks and facilities. These awards are made through interlocal agreements and grant programs that emphasize shoreline protection, beach access, and visitor-serving public facilities.