Our immediate past President of PBA, Terry Preston, will take over from Jim Cox as the chair for the Government Affairs Committee. They attend many of the local government meetings and provide input on issues of interest to the PBA membership. This committee has very important work in the next 12 months as we work with other stakeholders on the beach to determine the future of the island and SRIA after lease fees are eliminated. If you would like to be a member of the Government Affairs Committee please send an email to membership@pbadvocates.org. 

As we talk to beach residents and leaseholders, we find that there is still much confusion on the situation with taxation and lease fees on the beach and what our path forward looks like. We hope this article clarifies the issues for you.

Tax Lawsuits

ALL Pensacola Beach leaseholders lost the lawsuit against taxes on IMPROVEMENTS in the Florida Supreme Court and were notified of taxes due in June. Navarre Beach residents lost both lawsuits on the improvements and the land.
 
Based upon the advice of the attorneys after the Supreme Court decision, most of the Pensacola Beach leaseholders chose to ask their attorneys to dismiss the lawsuit on the land taxes as well, and began paying those taxes.  Two entities, Portofino and Beach Club, with their associated leaseholders, have elected to continue the lawsuits on the land taxes.  Any other lawsuits on the land taxes are being continued on a case by case basis.  Over the past ten years, the County has collected $59 million in ad valorem taxes (excluding school taxes) from Pensacola Beach leaseholders.  Very little of this has been used to support beach operations.

Fee Simple Title and Lease Fee Reductions

Fee Simple Title would give current leaseholds title to their property. Fee-simple legislation was introduced to the U.S. House of Representatives and passed in 2014. It has not been introduced in the U.S. Senate as of this date.  PBA sent letters to both Senators before the summer recess requesting that they introduce the bill.  We have not received a response to date. We sent a newsletter to our members asking you to contact your Florida Senators encouraging them to sponsor such a bill.

Escambia County Board of Commissioners claims to be waiting on resolution of the remaining land tax lawsuits before reducing or eliminating lease fees on Pensacola Beach. However they are holding land taxes in escrow to either repay lease fees or collected taxes depending on the outcome of the land lawsuits.  The PBA Board does not feel that the County is escrowing enough dollars for condos - the calculation they use for the land portion of condo taxes (15%) does not reflect the percentages established in 2012 by a Portofino lawsuit.

The Santa Rosa Island Authority is waiting for fee simple legislation before reducing or eliminating lease fees.  They are actively seeking ways to continue operations with the existing organization intact regardless of fee-simple legislation.

The Santa Rosa County County Commissioners are actively looking for legal ways to eliminate lease fees for Navarre Beach leaseholders, but they do not have a large bureaucracy like the SRIA to support with tax dollars. 

Planning for the Future

Escambia County and Pensacola Beach will have to come up with a plan on how to run and manage the island without lease fees. It’s a complicated issue because we have a combination of commercial leases where businesses pay a percentage of their gross revenues in lease fees, residential lease fees that range from $100 per year to $3000 per year and sub-leases where a master leaseholder pays the lease fees and charge a marked up rate to sub-leaseholders (in condos and some neighborhood associations). Adding to the complexity is that many of us feel that SRIA provides oversight and services that have helped to make Pensacola Beach a unique place where businesses and residents co-exist in a resort community. 

Some of the issues that the stakeholders on Pensacola Beach will need to address are:

• Will we keep an active SRIA with a smaller footprint?
• What services will a smaller SRIA provide?
• What services on Pensacola Beach will Escambia County pay for with our tax dollars?
• How soon can all this happen?  
• How would a smaller SRIA be funded?
• How will reduction in lease-fees be passed along to sub-leaseholders?
• If the County prevails in the land tax lawsuits, how will they determine the amount of $ to refund to residential and business leaseholders?

Pensacola Beach Advocates believes that we can and should start funding certain services through the County, and savings should be passed on IMMEDIATELY to leaseholders in reduced lease fees.  We also need to ensure that where a Master Leaseholder is receiving the benefit of reduced lease fees, it passes that savings along to the Sub-lessees.  At PBA's urging, the SRIA sent out a letter to all Master Leaseholders requesting information on the relationship between them and their sub lessees.

Our Government Affairs Committee is already collecting data and examining these issues. We will be working with the business community on Pensacola Beach to make sure all of our needs are heard. If you would like to contribute your time and talent to this important committee, please contact us. Also visit the News & Issues page on our website (www.pbadvocates.org) for more information on all of these taxation issues.

Article Courtesy of Island Times (www.myislandtimes.com) 11/11/2014

It’s time to renew your transponder. There are a few changes to the annual ritual, so please don’t wait until the last minute.

All non-renewed passes will go inactive on December 31. In order to renew, an application can be picked up or downloaded, and filled out as necessary. Then, the application, a form of payment and the vehicle must be brought to the SRIA Office at #1 Via de Luna. The need for the vehicle to be available is so personnel can affix a 2015 windshield sticker to the car. The Bob Sikes Toll Facility is undergoing equipment and software upgrades which may not be complete until May of 2015.

“Due to the updating of the tolling system, we need a way for the toll collectors to see the annual pass has been renewed,” said Cheryl Messier, who handles the Bob Sikes Toll Facility renewal for Escambia County. “Avoid long lines and renew early. Your car has to be present at SRIA.”

There will be a $2 charge for any transponder that is not properly attached to the windshield. “A lot of annual passes are being hand held,” said Messier. “Those will not be renewed unless they are attached.”

There are approximately 40,000 transponders total but only about 15,000 of those will be renewed during this time period. The cost to renew is $50 for personal vehicles and $70 for commercial vehicles. Cash, checks, money orders and credit cards are accepted for payment. Credit cards will incur a small bank fee.

The renewal office is located in the SRIA lobby and is open Monday through Friday from 8:30 a.m. until 5 p.m. The sales office will be closed on all Federal Holidays including Veteran's Day (Nov 11), Thanksgiving (Nov. 27- 28), Christmas (Dec 24-25), New Year’s Eve and New Year’s Day. New transponders will go on sale beginning Monday, January 5. The hours of operation will also be extended during January. 

Applications are available at the Bob Sikes Toll Facility, SRIA office and online at http://sria-fla.com/toll-pass-information.php

PBA Commentary

The Bob Sikes Bridge is owned by Escambia County and all toll revenues go to Escambia County, not to the Santa Rosa Island Authority. The money is used to pay debt for bonds issued by the county to four lane Via de Luna in 2002. According to a Pensacola News Journal article on 4/28/2014, the County currently pays about $1.5 million annually toward this debt, including the $600,000 paid by the SRIA from our lease fees. The remaining $848,000 not covered by the SRIA is funded through toll revenue from the Bob Sikes Bridge. On 4/29/14 the County Commissioners voted to terminate the agreement with the SRIA requiring us to pay $600,000 of that debt. The entire $1.5 million is now being be paid with revenue from the bridge.

According to the Escambia County Comprehensive Annual Report for 2012, the Bob Sykes Bridge toll revenues were $3,454,000. $1.5 million went to pay bond debt and another $961,000 was spent for toll booth operations and maintenance, leaving a net profit of $1 million. Another source of revenue to fund SRIA operations after lease fees?

Voters on Pensacola Beach will choose their elected representative on the Santa Rosa Island Authority during the General Election on November 4th. This is a non-partisan election. Make plans to vote – in person Nov 4th at the Beach Community Church or vote early starting Oct 20 at the Election Supervisor’s office or by absentee. You must be a resident and registered voter to participate in the election of this SRIA position. New voters can still register and vote in this election. Get more information on www.escambiavotes.com.

In the last two years the number of visitors setting up tent blockades on the Gulf side of the beach has increased significantly. Groups will setup large tents with chairs and coolers and beach coolers and leave their things in "their spot" overnight for an entire week.

Not only is this an eyesore but it is an impediment to turtles during their summer nesting season. The mama turtles can get tangled up in the beach gear and not make it to their nesting spot on the shore.

After getting input from the PBA Beachkeepers and an outcry from the people who patrol the beach for turtles and dawn each morning, the the SRIA has implemented a Beach Ambassador program to see if an informal education program could be effective with our visitors, instead of implementing another ordinance that restricts leaving any items on the beach after dark. 

If you own rental property on the beach, please inform your guests not to leave their gear out overnight, to turn off bright lights at night during turtle season and not to leave big holes on the beach. 

Thanks to Kimberly Blair with the PNJ who has done an excellent job of covering this and other important beach issues. You can read the full text of her article on the Ambassador program in the PNJ.com article.

Also if you want to read more about the sea turtles and see some videos of baby loggerhead sea turtles hatching visit the link below.

http://on.pnj.com/1oOHyZN

The article was written by PNJ reporter Kimberly Blair and the videos taken by beach resident, PBA member and turtle patroller DJ Zemenick.

Earlier this year, the Pensacola Beach Advocates conducted a survey of its members on important issues for Pensacola Beach. The survey was mailed to all PBA members and Pensacola Beach leaseholders. It was also accessible via the PBA website. The results reflect the opinions of those who took the time to respond. Included in the respondents were residential and commercial leaseholders, PBA members, beach residents, and non-Beach Escambia County residents.

The majority of respondents feel that the PBA should focus its efforts the passage of fee simple title legislation to eliminate leaseholders’ double taxation and pursue the refund of lease fees from Escambia County that were paid in conjunction with taxes. Additionally, the survey showed that many believe it's important that the PBA help ensure that Pensacola Beach remains a quiet, peaceful and natural location for both residents and tourists. Restructuring the current form of two tier government (Escambia County and Santa Rosa Island Authority), pedestrian safety, and beach improvements should also be part of the PBA agenda. Less than ten percent thought that the PBA should spend time on increasing business and tourism on the beach.

When asked how should the SRIA prioritize the RESTORE funds it receives from the BP Oil Spill, 61% agreed that Gulfside beach re-nourishment and dune walk overs is the number one priority. Followed by (2) updating the storm water drainage on the island, (3) creating pedestrian friendly crossings, (4) upgrading core area with turtle friendly and pedestrian lighting, (5) stabilizing all shoulders on CR 399, (6) resurfacing all roads and parking lots on Pensacola Beach, (7) widening and deepening approach to Little Sabine Bay, (8) improving Gulfside Pavilion including seating and stage facilities, and (9) installing lights at Park West parking lot.

SRIA services are paid for by both residential and commercial lease fees. On a scale of excellent to poor, the SRIA received an average rating for administrative services such as policy, construction, code and fiscal management. Respondents were split among good and average for street and bike path maintenance. This category actually received the highest poor ranking (19%). The SRIA earned a good rating from the majority of respondents for Emergency Management communication; beach appearance and amenities such as landscaping and parks; and the cleanliness of the beach, streets and parking lots. Fifty-four percent of the respondents agreed that the SRIA is doing an excellent job with water safety and 48% awarded an excellence rating to beach events hosted by the SRIA such as Bands on the Beach and the Blue Angels Air Show.

Most everyone interacts with the crosswalks on Via de Luna, either with a car or on foot, and 64% of respondents feel that for everyone's safety the crosswalks need to be illuminated with flashing lights. There was a strong sentiment in the comments section for this question that someone was going to get killed because the crosswalks are dangerous due to lack of lighting, lack of understanding of the law by drivers, and lack of enforcement by the deputies.

Finally, when asked if changes should be made to Ariola Drive to alleviate parking congestion and safety concerns, 36% want no changes, but 64% believe there should be some kind of change -- from painting a white line to demarcate south side parking only (29%), to eliminating all parking on Ariola or making Ariola one way with the Avenidas fully cut through (14% each). Of note were the 7% who offered additional suggestions such as "No parking on Ariola unless issued a guest pass from a resident," "Add more consistently and evening spaced 'No Parking on this side of street' signs," and "Only residents of Ariola Drive should have input on this."

The PBA will continue to ask for beach resident and leaseholders input throughout the year using such vehicles as surveys and social media.

Voters on Pensacola Beach will choose their elected representative on the Santa Rosa Island Authority during the General Election on November 4th. This is a non-partisan election. The Santa Rosa Island Authority is comprised of six members. Five are appointed by an Escambia County Commissioner and one is elected by the voters of Pensacola Beach every two years. The elected position can only be filled by a Pensacola Beach resident. The Santa Rosa Island Authority’s composition was amended from five appointees to include a sixth elected member in 1983 by the State Legislature. Pensacola Beach businessman McGuire Martin won the first election.

Dr. Thomas Campanella is the incumbent and will face Terry Preston in the November 4^th General Election.

Dr. Campanella, a local dentist, has been on the SRIA Board for 12 years and lives in Villa Sabine. Terry Preston, a safety and environmental specialist and leasesholder since 1979 is currently serving as the President of Pensacola Beach Advocates. Look for more information on each of the candidates in upcoming newsletter. 

The Santa Rosa Island Authority’s composition was amended from five appointees to include a sixth elected member in 1983 by the State Legislature. Pensacola Beach businessman McGuire Martin won the first election.

Beach residents did not have any elected representation on the SRIA until 1983. It is important that we all exercise this important right to choose who represents us. Make plans to vote on November 4^th – in person at the Beach Community Church, in person at the Election Supervisor’s office or by absentee. You must be a resident and registered voter to participate in the election of this SRIA position.  Get more information on www.escambiavotes.com.

The Pensacola Beach Advocates will hold our annual meeting on October 20 2014 at the Pensacola Beach community church from 5:00pm to 7:00pm. Elections for the PBA Board of Directors will be held. If you are interested in serving on the PBA Board as an office or as a director, please contact Liz Waters Hewson by email at  elizabethkhewson AT gmail.com. 

Recently PBA President Terry Preston contacted US Senators Bill Nelson and Marco Rubio encouraging them to sponsor a bill in the Senate that would grant leaseholders on Santa Rosa Island with fee simple title. A companion bill was sponsored by Congressman Jeff Miller in February where it did pass the US House. 

At this point the County and the SRIA don't have plans to reduce lease fees to a nominal amount ($1) until all of the pending tax lawsuits are still active. There is still an active lawsuit by the Portofino homeowners.

Please take a few minutes to send an email to our Florida Senators asking them to consider this legislation during their short session after Labor Day. Contact info is at the bottom of this article. You may want to also contact Jeff Miller to thank him for his efforts.

And we thank the current and past PBA board members who worked with the local government leaders to draft this legislation two years ago in preparation that we could lose our appeals in the Supreme Court.

Here is the letter that was sent to both Senators.

As President  of the Pensacola Beach Advocates, I would like to urge you on behalf of our

450 members and the 3800 Pensacola Beach leaseholders, to sponsor a companion  bill in the Senate to H.R2954, the Santa Rosa Island Title Fairness and Land Preservation Act. At our urging and that of our local government officials, Congressman Jeff Miller sponsored this legislation and it passed the House of Representatives on February 6, 2014 and was referred  to the Senate on February 10, 2014.  It has since been referred  to the Senate Energy and Natural Resources Committee, who have taken no action.

Since passage of H.R. 2954, we have been notified by the Florida Supreme Court that taxation of our leasehold improvements will stand, leaving many on our small island with significant tax bills, continuing lease fees, and no ownership of the property that they are being taxed for. This bill would allow our local government to convey fee simple title to the developed leaseholds  on Santa Rosa Island, thus paving the way to end leases and reduce the burden of double taxation on many residents, some of whom are on fixed incomes.

This bill also remedies some issues that are silent in the legislation that originally conveyed Santa Rosa Island to Escambia County. It guarantees that all public lands that are currently held for conservation, recreation  or preservation will continue so in PERPETUITY, thus preventing our beautiful natural island resources from being developed in future years. Please take action to pass companion legislation in this Congress and prove to your constituents that we have a Congress that can take bipartisan action!

Regards,

Terry Preston
President, Pensacola Beach Advocates

Contact Senator Marco Rubio: http://www.rubio.senate.gov/public/index.cfm/contact

Contact Senator Bill Nelson: http://www.billnelson.senate.gov/contact-bill

Contact Congressman Jeff Miller: https://jeffmiller.house.gov/contact/contactform.htm

Escambia County Tax Collector Janet Holley just reported that the tax bills will be mailed to Pensacola Beach residents on June 25. The deadline to pay the taxes - which were previously the topic of a court battle - is July 25. On July 26 the interest owed will jump from 12% to 18%.