The economic times, they are a-changin’

Submitted by Suanne Z. Thamm

Reporter - News Analyst

NCEDB Executive Director Steve Rieck addresses commissioners on future challenges and opportunities.

Nassau County Economic Development Board (NCEDB) Executive Director Steve Rieck paid a visit to the Fernandina Beach City Commission (FBCC) to update commissioners and the public on the state of both the city and Nassau County with respect to challenges and opportunities presented by changing demographic and economic situations.  The information he presented at the February 18, 2014 FBCC meeting reflected the growth differential between the city and the county between now and 2025, along with the aging of the population, shrinking of school age population, shortage of moderate income housing, the increasing gap between rich and poor.  He painted a stark picture of a city diminishing in wealth and with increasing social burdens, but suggested that opportunities for economic development exist in five key areas of the city:  the central business district; 8^th Street/14^th Street corridors; Main Beach; Sadler/Fletcher corridor; and the Fernandina Beach Municipal Airport.

Rieck’s Presentation

Nassau County’s population will grow 18 times faster than that of Fernandina Beach between now and 2025.  While the county looks to add close to 21,000 new residents during that period, the city will add barely more than a thousand.  The city’s share of county population will decrease from 16% in 2012 to 13% in 2025.  While the city’s growth rate is leveling off, the 65+ age group is the fastest growing, an increase of almost 400% since 1970.  The under 4 years and 5-19 year-old age groups have both decreased as a percentage of the city’s population, going from 20% in 1970 to 17% in 2010.

These figures present a picture of changing needs for the delivery of social services and education.  For the county as a whole, 30.6% of residents are over 55, while in the city 39.9% are in that age cohort.  Almost 25% of county residents are school aged, while only 10% of city residents are in that category.    The percent of working aged county residents is 37%, while the city lags behind by 5%.

Although 25% of Fernandina Beach households report annual income greater than $100,000 (2% more than the county), median household income is $6,000 less ($53,000) than Nassau County.  Perhaps even more disturbing is the fact that there is a greater concentration of poverty in Fernandina Beach than in Nassau County.  In the city, 13.2% of families live below the poverty level, while in the county that percentage is only 7.2%.

In addition to demographic change, the city is also experiencing changes in tax structure when compared to the county.  The city’s share of taxable property fell from 25% in 2008 to 23% in 2013, and continued to decline into 2013, while Nassau County saw its comparable figure increase by 10.5%.  Fernandina represents 55.6% of the total taxable value for industrial property (representing the importance of the two mills) and 49.8% of the total taxable value for personal property.

Rieck drew several stark conclusions from his data:

• Fernandina’s population will stabilize at about 12,000 residents over the next 10-15 years and will continue to get older.
• There is a growing divide between Fernandina’s wealthy and poor.
• It is getting harder for middle class workers to find affordable housing on Amelia Island.
• Without the presence of Fernandina’s two mills, the city would have to rely almost exclusively on residential property taxes to provide services to citizens.
• BUT … For every $1 generated by residential property taxes, the government spends $1.38 in services.
• On the other hand, commercial, industrial and retail property taxes save taxpayers money in the long run.  A dollar generated by business taxes only results in the need for 48 cents-worth of services.

Rieck did hold out hope for the city.  In speaking to the future, he cited part of the city’s 2030 Comprehensive plan that:

• Strengthens new growth and redevelopment opportunities within the community while balancing the needs of its citizens, its unique character, and its cultural, historical, and environmental resources.
• Provides for an articulated and shared vision of where the City wants to go and what things residents and businesses value.

Rieck identified five areas of the city that can play a major role in economic development, which would lessen tax burdens for residents and strengthen the economic health of the city:

1. Central business district (historic downtown, including the Community Redevelopment Area, or CRA)
2. 8^th Street/14^th Street Corridors
3. Main Beach
4. Sadler/Fletcher Corridor
5. Fernandina Beach Municipal Airport (both inside and outside the fence)

In concluding his presentation, Rieck suggested ways that the commissioners might help.  The individual commissioners could become personally involved in one or more Job Opportunity Area working groups.  The FBCC could also consider revising and adopting policies that are consistent, fair, and that will make Fernandina Beach more attractive to business.  And finally he suggested that the commissioners can provide leadership in dealing with tough issues like infrastructure repair and city services.

He quoted from an opinion piece submitted to the News Leader last year by Aaron Bell, a businessman who relocated his business from Buffalo, NY to Nassau County:

“Nassau County needs good jobs. We need working people and families. We are not all retired folk—at least, not yet. I feel it is easy to lose sight of the need to help young people such as myself to work, own homes, raise their children and give back to the community. Most parents hope that their children can find a job locally and stay in the community where they grew up.”

Commissioner comments and discussion

Commissioner Pat Gass asked about the need for affordable housing.  Rieck said that possibilities existed between the 8^th and 14^th Street corridors.  Vice Mayor Sarah Pelican commented that County Property Appraiser Mike Hickox had recently conducted a reappraisal of city property that has resulted in more realistic appraisals.  Rieck said that the reappraisal was a useful exercise.  Because the city does not have an abundance of open, undeveloped land, the city’s challenge is to make the highest and best use of available areas to bring in younger, working aged people to support the economy.

Commissioner Charlie Corbett asked for more clarification about the Main Beach and Airport target zones.  Rieck said that there is commercial property around Main Beach that can be developed, and that he can work with both businesses and residents to see what can be added.  With respect to the Airport, Rieck highlighted opportunities at the Airport itself (“inside the fence”) and surrounding opportunities in land zoned industrial and other property.  He added that the National Business Aircraft Association will hold its annual convention in Orlando this fall, presenting an opportunity to promote the city airport.

Pelican questioned whether with the projected county population growth, Nassau County would lose its ranking as a small rural county.  Rieck explained that since Nassau borders Baker County, an extremely small county, that will not happen under existing law.

Mayor Ed Boner

Mayor Ed Boner raised a question as to whether the NCEDB could help the city with economic incentives in the CRA along the Amelia Riverfront.  Rieck replied that judging from the comments of CRA Advisory Board members made at the numerous meetings he has attended, the board is anxious to get things happening along the waterfront.  He suggested that adding more downtown areas to the CRA might be helpful and that he looked forward to working with Commissioner Gass, the commissioner-liaison to the CRA Advisory Board.  He also said he would help in getting a Developer Advocate for the CRA.

Commissioner Johnny Miller told Rieck that the FBCC was interested in identifying a flagship property within the CRA that could be developed quickly to show citizens and developers what could be done in that area.  Miller turned toward the other commissioners and asked, “If we could move on say, for example, the Standard Marine property next week, are we ready to go with it?  Would we be ready to get the infrastructure in place?  Could we support that?” Pelican responded, “The infrastructure is in place on 2^nd Street.”  Gas added, “Yes, sewer and water.”  Miller responded, “So we definitely should go with it.”

Standard Marine property at 2nd and Alachua Streets

Rieck thanked the FBCC for allowing him to make his presentation.

Editor's Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne's many contributions to the Fernandina Observer.

February 21, 2004 8:49 a.m.