Port Hears First Broker Ideas About Land Sale

OHPA-owned parcels highlighted in red.

During a special meeting of the Ocean Highway and Port Authority (OHPA) Thursday, commissioners were informed that the value of three parcels the port owns near downtown could be as much as $2.75 million. Other estimates they received were less.

Last May, OHPA approved issuing a request for proposal (RFP) from real estate brokers to first place a valuation on the three properties and then handle the sale of the land.

The lots are:

.29 acres on the northeast corner of Third and Dade and zoned R-2 medium density.

.32 acres on the southeast corner of Third and Dade and zoned R-2 medium density.

About one-third of an acre on Third near Escambia and zoned MU-1mixed-use.

OHPA received six broker proposals, but only three of those estimated the potential value of the properties for sale.

Marcus & Millichap of Jacksonville is the agency that gave the highest land value of $2,750,000.

However, Savannah Land of Jacksonville placed the maximum value at about $1,200,000 with a recommended listing of $1,150,000 for the three properties.

Broker Cabana Lane of Fernandina Beach placed the value at $2,280,000. "As we explored the "highest and best use" valuation of the properties, we evaluated some alternative ways that each of the parcels could be broken up and offered. While the 25' lots are an option in R-2 zoning we believe the overall best approach is consolidating the 25' lots into 50' lots on all parcels," Cabana Lane wrote in its assessment to OHPA.

"Finally, besides financial considerations, the approach suggested will be well received by the Historic District Council and the City Planning Department as the alignment of homesites is more conforming to the existing homes on the street, and the included architecture also presents a complete picture."

"Hopefully at our next meeting we'll vote to sell them (the properties) depending on the price we can get for them," said Chairman Danny Fullwood.

Four of the brokers were present at the meeting and said any valuation of the land would be determined by its "best use."

All of the brokers agreed that involving the City of Fernandina Beach and the surrounding neighborhood would be beneficial.

Commissioner Ray Nelson said, "What we heard here today (from brokers) has answered a lot of questions I had and how you would go about evaluating this property. I think having an open discussion with the port neighbors, the local mayor and commissioners might not be a bad idea and let them know what our intentions are moving forward."

Commissioner Justin Taylor said, "We need to think this through and not jump the gun. I think we also need to look at the best interests of the community and not just the money we're bringing in."

Vice Chair Miriam Hill spoke about other uses for the land such as a buffer between the port and the surrounding neighborhood."We shouldn't rush to engage with a particular firm at this point because we're still in the information gathering phase," she said. "I'm of the opinion that we should leave as many options for future boards as possible."

OHPA will hear 5-minute presentations from each of the six brokers at its Aug. 9 meeting and then decide whether the property should be sold.

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 beyond its current geographic footprint into the historic downtown.

The sale of the land is also part of the port’s recently adapted Master Plan.