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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 Bed Tax comes from the city) of that revenue 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 visitors 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:
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publicly accessible,
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central to the city’s tourism identity,
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the setting for major events such as 4th of July fireworks, Shrimp Festival, Dickens on Centre and Sounds on Centre to name a few.
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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.
That is exactly where the seawall belongs.
John Martin
If the city successfully secures bed tax funding for the seawall, it could:
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Scrap the need for a paid parking program
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reduce or eliminate the need for a bond referendum,
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avoid decades of interest payments,
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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 (see the examples listed of other cities using bed tax funds), the public benefit is substantial, and the financial stakes for residents are significant.
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.
Comments
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Bob121
AMEN !!!!
do it do it do it.
The bed tax should belong to the City if it is generated here.
Tuesday, December 16, 2025 Report this
GDecker
Big multi-million loans are required to build the seawall--loans that will take 20 years to pay-off. Can TDC money be used for debt service? Sure, around $2M would be city's share after tourism expenses (AICVB, marketing), but using that to pay a construction loan might not be allowed, or even a good plan especially if island tourism is falling.
Tuesday, December 16, 2025 Report this
Mark Tomes
Definitely worth exploring. I wonder how much funds using the bed tax would generate? Two other considerations: any seawall should incorporate a large component of living shoreline, otherwise a bare seawall just invites more erosion. Also, what about the property owners near the marina that refuse to sell their properties to the city, yet those properties are needed to complete the marina restoration project? Eminent domain is a last resort, but should be considered as a means to acquire those properties from recalcitrant property owners.
Tuesday, December 16, 2025 Report this
Ameliavol
Mike,
You left out a very important fact that makes time of the essence-the city has a grant of $6M toward the seawall which will expire if not claimed. I donknow the exact timing but am led to believe that it is not that far off, possibly 2026. The TDC has been dragging their feet in helping the city. Is there any reason to believe that they won’t continue to do so? This doesn’t dispense with the need for financing of downtown projects and future maintenance and improvements. If paid parking isn’t implemented, then the only other source is property tax increase for city property owners.
Wednesday, December 17, 2025 Report this
RobertR
TDC collects the "bed" tax but other than one public comment I read last year in that they maintained that their "advertising budget" was $1.1 million, I know nothing of their collected tax vs. "expense" annual report. If they collected $8 mil in 2024(again their published figure not mine), spent $1.1 on advertising and claim $2 mil is available for qualified City projects in 2024 are we to conclude then that $4.9 mil was the remaining balance for 2024 that..... went where? Salaries? Other projects? I think a full disclosure for 2024~~line item of the TDC P & L by whomever is responsible is Step One.
Step Two is for the City Planner to clarify what City projects qualify for TDC funds. Let's not make an ice berg out of a ice cube as to what qualifies and what does not. These TDC funds to me are generated at the expense of the peace and quite loss by City residents. City residents thru their elected officials should be directing their use. They should not be begged for. Just me.
Thursday, December 18, 2025 Report this
Beachstoremike
Spending bed tax revenue on Fernandina Beach tourism infrastructure is a good idea and a good investment. The challenge will be convincing the TDC to allocate revenue away from CVB marketing and toward infrastructure. To that end I believe it is time to assess the return on investment of CVB marketing dollars to the City of Fernandina Beach v. Nassau County.
The visitor demographics for Fernandina Beach are different than visitors to Nassau County Amelia Island and therefore marketing dollars spent on "Amelia Island" may not have the same return for each. Further consideration should also be given to our daily beach visitors. As development continues between I-95 and Amelia Island the demands on the Island from daily beach visitors will increase. And since almost all beach accesses in Fernandina Beach are public and those in Nassau County Amelia Island are not, it stand to reason most of these visitors will use Fernandina Beach facilities. It is also worth noting that our daily visitors are self sufficient and spend little or no money on the Island.
Thursday, December 18, 2025 Report this
brucebaugh
The bed tax is money collected within the city. It's money they should have been using all along. Apply and collect it. It's that simple.
Friday, December 19, 2025 Report this
Mingnmilo
This is a first consideration for 2026 for Fernandina City Commissioners. Why hasn't this money been applied for already? Where are the legal and grant writing personnel for this responsibility for the good of the community and on a bigger scale, for the good of all of Nassau County?
Monday, December 22, 2025 Report this