The Port of Fernandina took the first step Wednesday in potentially selling three parcels of non-industrial land outside of the port's footprint, but how the district should use any proceeds of well over $1 million from the sale was highly debated.
The Ocean Highway Port Authority (OHPA) approved issuing a request for proposal (RFP) from real estate brokers to first place an evaluation on the three properties and then handle the sale of the land.
Port Director David Kaufman identified the lots as:
.29 acres on the northeast corner of 3rd and Dade and zoned R-2 medium density.
.32 acres on the southeast corner of 3rd and Dade and zoned R-2 medium density.
About one-third of an acre on 3rd near Escambia and zone MU-1, mixed use.
There are a combined total of 15 buildable lots on the three properties.
"We aren't residential property developers so we need someone that has that skill," Kaufman said.
The property cannot be used by the port because of an inter local agreement with the City of Fernandina Beach that precludes the port from expanding from its current geographic footprint into the Historic Downtown. The sale of the land is also part of the port's recently adapted Master Plan.
When asked about the potential value of the land, Kaufman said he could not provide an accurate valuation but it is "in excess of over $1 million."
The potential proceeds from selling the land became part of the discussion of the port's financial problems caused by more than $250,000 of legal fees as a result of two ongoing lawsuits by the Nassau County Property Appraiser and the City of Fernandina Beach. Currently, the port has $140,000 in legal fees that are unpaid and are double the amount budgeted.
Accountant Pierre LaPorte told OHPA commissioners that they were at "the cliff's edge" and the mounting legal fees were unsustainable. LaPorte said as a result of the legal expenses, OHPA could face having to eliminate the port director position.
"We don’t want to sell land to pay legal fees. That would be a horrible decision I would think," LaPorte said. "I don’t see any near term revenue opportunities. The legal spending has been an issue for a year and a half at least....we're running out of money."
Commissioner Ray Nelson disagreed and said the legal debt needed to be resolved.
"Some people would say it’s not good to sell property and use that money for expenses. I say it is because we have an obligation to pay for what we get. If we can't afford it, we don’t need it. Let’s do what’s necessary," Nelson said. "It’s hard to
sit here and say we have to make some tough decisions, but it’s the right thing to do. You couldn’t run your household budget the way we’re running this one, we’d all be homeless.”
Commissioner Miriam Hill said OHPA had "kicked the can a bit (in addressing) our lack of revenue."
Hill requested that the port director and accountant present a plan for potential revenue opportunities at the next OHPA meeting.
"Given our current financial situation, it's troubling where we are," said Commissioner Justin Taylor. "If you're in trouble like we are, you make cuts where necessary and look at revenue opportunities where we can."
Finding new revenue opportunities is a task not limited to the port director according to Chairman Danny Fullwood.
"It's also up to us to come up with other revenue opportunities. We're responsible for that too," Fullwood said.
Nelson said OHPA was at the point where "let's make the decisions and let's move forward."
How would the money be used? The seller determines that. It’s not a news worthy topic. It’s more important to know the building/zoning codes of the properties .
Nobody should be blaming the existence of lawsuits for OHPA’s financial / attorney’s fees mess. There’s always been lawsuits. The problem is a Jacksonville law firm that’s been treating OHPA like an ATM for a couple of years now. If, for example, attorney Jeb Branham had not been elevated to the judiciary, the legal fees would be a small fraction of what they’ve become.