|Fixing the beach lease renewal process will help stem the subsidies from Escambia County Taxpayers for expensive properties on Pensacola Beach...|
As we explained in Part I, the SRIA renegotiated two large condominium leases in 2016 that will result in $92 Million in unrealized income for Escambia County taxpayers over the term of those leases.
Congratulations to the individual owners of these condominiums for being on the positive side of such a favorable deal! Good on ya!
But Escambia County and the SRIA are the losers here, because this creates a situation where millions and millions of dollars have been left on the table. And taxpayers of Escambia County are and will be the losers.
Right behind these two 2016 condo complex renewals will come many more. If we don't modernize the fees and standardize this process, just imagine how much revenue will be left "on the table" when these condos come in for renewal-----if we leave the rates unsustainably low as was the case with Beach Club and Emerald Isle??
That's why the disastrous method utilized currently to "renegotiate" these leases must be standardized and fixed on today's market rates. Otherwise, Escambia County taxpayers will continue to absorb the subsidies that are being given to beach property owners via overly generous lease renewals.
How, you ask, does this affect Escambia County taxpayers?
Many of the services provided on Pensacola Beach are subsidized by Escambia County. The less the SRIA takes in via leases, the more the county will have to pay (subsidize). It is inversely proportional.
Here are some current examples:
|Above: A comparison of taxes paid by beach properties compared to mainland properties|
Public Works and roads crews for Pensacola Beach $2.5 Million Dollar subsidy from Escambia County Taxpayers
Via De Luna resurfacing? $1.3 Million yearly paid for from County Funds.
Sheriff's Law Enforcement Services? Subsidized more than $50,000.00 per year by Escambia taxpayers.
So we have to fix the lease renewal process going forward, we must. This is the only way to insure everyone is paying a proportional amount for the services received.
This is an important issue I will stay-on until it is fixed.