Pensacola Beach leaders fear county could jeopardize beach renourishment

In their ongoing effort to resolve Pensacola Beach's complicated leasing system and decades of tax lawsuits, beach leaders fear Escambia County Commissioners could jeopardize millions of dollars set aside to routinely renourish the beach. 

The Santa Rosa Island Authority spent $16 million in 2016 to shore up eroded areas of the beach by dredging more than 50,000 cubic yards of sand from the Gulf of Mexico and pumping it onto an 8-mile stretch of shoreline.

But authority members said during a recent meeting that such funds might no longer be available if Escambia County Commissioners overhaul the leasing system.

"We have taken care of this island for many years and provided the services needed for the residents out here through lease fees," said Dr. Thomas Campanella, a longtime authority member.

A look at the issue: Untangling Pensacola Beach's lease system: Leaders struggle to find fair solution

Without the island authority setting aside a portion of lease fees for renourishment every year, it is likely the money won't be there the next time the need to renourish the beach arises, he said. 

At issue is a plan by Escambia County Commission Chairman Jeff Bergosh that attempts to end decades of lawsuits questioning whether the county can assess property taxes on leased beach land. Bergosh wants to change the terms of beach leases from 99 years to 100 years as they change hands or come up for renewal. 

The state Supreme Court has said a 100-year lease is tantamount to ownership and can be taxed, while a 99-year lease is not. The change would mean almost all beach leases would eventually be eligible for property taxes.

More:Pensacola Beach lease and tax system unfair, county and beach leaders agree

Instead of paying lease fees, which are paid to and controlled by the island authority, beach residents and business owners would exclusively pay property taxes to Escambia County. The tax money would become part of the county's general fund. 

Robert Bender, the presumed Escambia County Commissioner-elect who will represent Pensacola Beach, said Bergosh's proposal is among many complicated beach issues that will need to be resolved soon. 

"There is a big discussion that is taking place and there are a lot of different scenarios and factors in play," he said. "I got into this race knowing that there were some important decisions that would have to be made."

Whatever happens with the leases, Bender said renourishment will have to be a priority in the county budget process because Pensacola Beach is an economic driver for the entire county. 

"Our beaches are a quality of life issue for all of us. We want to make sure Pensacola Beach remains what everyone has become accustomed to it being," he said. 

But fellow County Commissioner Doug Underhill said Campanella and other members of the island authority board are right to worry about the beach renourishment money falling under the county's general fund. 

"If I were a beach equity holder, I would be deeply concerned about that idea," said Underhill, who added that the cash-strapped county needed the money and could use it elsewhere if pressed.

More on Pensacola Beach:

• Pensacola Beach public access question will go to voters in November

• Escambia County commissioners say some beach leaseholders aren't paying their fair share

• Pensacola Beach public access: Escambia County leaders, activists still at odds

Pensacola Beach is unlike other Florida beaches because it was deeded to Escambia County by the federal government in 1947. Under the terms of the deed agreement, the county was prohibited from selling the beach land and was required to use the land in a way that promoted the public interest. 

In the 1950s, the county decided it was in the best interest of the public to develop the beach land as a source of tourism revenue. The island authority was created to begin issuing the 99-year leases.

Once the island was heavily developed in the 1980s, the county turned to the beach as a source of property tax revenue. The move prompted the long and complicated series of lawsuits, which continue today. 

Melissa Nelson Gabriel can be reached at mnelsongab@pnj.com or 850-426-1431.