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Fernandina Beach commission approves $2.2 million option to buy downtown parcel using impact fees
Summary
The commission approved acquisition of two parcels across from City Hall (listed at $2.2M) using developer‑funded impact fees and contingencies; staff said the offer is under appraisal and environmental review and that demolition and rezoning would follow if approved.
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The Fernandina Beach City Commission voted to approve a resolution to acquire two parcels across from City Hall, including a building currently listed at $2.2 million, using a combination of developer‑funded impact fees and current‑year contingencies.
Ms. Campbell presented the purchase plan for 115 South 2nd Street and an adjacent vacant triangular parcel, saying the proposed assemblage would total about 1.24 acres and lie within the community redevelopment area. She told commissioners the city's offer is below the completed appraisal and that a Phase I environmental study has been ordered. Funding would come primarily from the impact fee administrative balance (staff cited about $1.8 million available), with remaining costs — demolition and closing expenses — covered by contingencies in the current year budget.
Campbell said the parcels are currently zoned MU‑1 and that the city would take the property to the Historic District Council for courtesy review and later issue bids for demolition and site preparation. Staff indicated a rezoning could be recommended if the site is used for parking.
Commissioners debated the merits of acquiring the property versus commercial redevelopment. One commissioner said the parcel's location and floodplain constraints make private redevelopment unlikely; another expressed a philosophical preference for commercial redevelopment on the tax rolls. The motion to approve the purchase passed 4–1.
Staff outlined next steps: earnest‑money deposit, completion of the environmental phase, closing within 30 days if all due diligence is satisfactory, HDC consultation, and issuing a demolition bid and site preparation contract. The packet materials noted that the parcel currently generates about $4,200 a year in city taxes and that future taxes could increase if redeveloped.
The resolution was adopted; commissioners asked staff to continue public explanations about funding sources and timelines so residents understand the use of impact fees and the potential long‑term implications for downtown planning.
