Mediator says parties reached framework to resolve Fernandina Beach–port payment dispute

A mediation session between the City of Fernandina Beach and the Ocean Highway Port Authority ended with the parties agreeing on a framework to resolve a decades‑old dispute over annual payments that the port authority owes the city.

City attorney Tammy Bach said the city’s position is that a contract from the 1990s established a contractual floor of $50,000 per year and that the city is entitled to those annual payments, which stopped beginning in 2019. "The city's position is that the $50,000 is fair and is justifiable and was made over 30 years ago," Bach said during the mediation.

The port authority’s representatives disputed aspects of that account during the session and urged negotiations focused on quantifying the city services tied to port activity rather than litigating historical documents. One port representative told the mediator the record contains disputed facts and said "there's no actual contract" in the sense of a meeting of the minds, urging the parties to determine which services the city provides and how to price them going forward.

Mediator Gary Earley, serving as a neutral facilitator, summarized the discussion and stated he believed the parties had agreed on the broad elements of a settlement. Earley said the terms discussed included a near‑term dollar figure, an inflation escalator for future years, and handling of arrearages. "So I believe we've had a successful resolution," Earley said as he asked whether the parties had consensus to send the terms to their full commissions for ratification.

City representatives described a prior offer of roughly $36,000 that was made last fall as contingent on adding an escalation clause tied to an inflation index such as CPI; that clause was presented as essential by city speakers to protect future city revenues. Port representatives said their board was concerned that an escalator could push future payments above what their budget could sustain and noted their remittances depend on operator revenues and tonnage handled at the port.

Participants also debated technical figures used in historical calculations. The mediation record included references to a 10‑cent‑per‑ton formula from earlier agreements and widely differing recent tonnage figures offered during the discussion: one participant cited annual throughput for 2023 at 256,490 tons while others described far smaller ballpark figures. The parties agreed these operational details and the arithmetic of arrearages would be included in follow‑up work by counsel and staff.

At the meeting's close, Earley said he would capture the terms discussed and the parties agreed to present the settlement package to each governing body for final approval. No formal vote or final, binding agreement was taken during the mediation; the proposed settlement and any specific payment schedule or arrearage forgiveness will require action by each board.

The mediation was convened under the parties’ agreement and the city and port said they would return to their respective commissions with the proposed terms for formal consideration.