Fisher Island Barge info
Fisher Island has agreed to pay the Port of Miami $1.135 million for unpaid security fees related to dock space it leases for a daily barge service that carries food and construction materials across the bay.
But the ritzy enclave off Miami Beach says the ongoing cost, which equates to $1,000 annually per household, is too high -- and it will seek alternatives.
''When the average resident of Fisher Island pays $34,000 a year in property taxes, it is very difficult to explain to them that despite the fact that they are a donor community using almost no county services, that they must pay an additional $1,000 a year to the county for a barge landing,'' said Mark James, president of the Fisher Island Community Association.
Fisher Island, second, third -- or fourth -- home to the rich and famous, has used barges to cart construction and household supplies since 1987.
Its latest 10-year lease with the port dates back to 1998, with a cost of about $1.50 per square foot, for 31,000 square feet of space on a portion of Dodge Island -- or $46,500 a year.
The 15-minute barge crossing is a ''lifeline,'' James said. As many as four barges run the two-mile or so stretch continuously from 6 a.m. to 6 p.m each day. They are in addition to ferry service from Terminal Island, used by residents, guests and most household staffers.
''Without this barge system we are essentially cut off from the mainland,'' he said. ``It is essential for our survival.''
Besides the waterfront landing, Fisher Island's lease requires it to pay the port for security fees and any rental rate adjustments, said Port of Miami Director Bill Johnson.
But when Fisher Island started asking for an extension shortly after Johnson arrived, two years in advance of the lease's expiration, he looked into the payments. And he realized the island had not been paying its full share.
''We were never billed,'' James said, ``until the fall of 2006 when Bill Johnson took over the port and discovered that we had not been billed.''
The settlement represents a reduction from the $1.3 million in security fees the island actually owes, Johnson said. The port is also forgiving $426,000 related to two rate adjustments, because it was the port's mistake not to charge.
''Unfortunately it was not properly administered,'' Johnson said. ``Shame on us. It will be, going forward.''
The community of 691 condominiums and six single-family homes, which spends about $21.5 million a year in property taxes, will pay the back payments, plus interest, over three years. Rent is now $4.50 per square foot and going up, as Johnson seeks to reflect current market rates.
''It's a very fair and reasonable settlement,'' Johnson said, ``and we are very appreciative for their understanding and support.''
While rent will rise, he said security costs will actually drop, as the port hires more security employees and reduces its overtime expenses.
Still, James said the island is looking for alternatives because the fees are unaffordable in the long term.
''We're looking at a number of options, and the cost would be remarkably lower,'' he said, declining to elaborate.
If Fisher Island opts out, the port would use the space for maritime use, likely for cargo operations, Johnson said.
''It's not like we're going to cry any tears with them leaving,'' he said. ``In the interim, we're being good partners with them to accommodate their operation.''
But the ritzy enclave off Miami Beach says the ongoing cost, which equates to $1,000 annually per household, is too high -- and it will seek alternatives.
''When the average resident of Fisher Island pays $34,000 a year in property taxes, it is very difficult to explain to them that despite the fact that they are a donor community using almost no county services, that they must pay an additional $1,000 a year to the county for a barge landing,'' said Mark James, president of the Fisher Island Community Association.
Fisher Island, second, third -- or fourth -- home to the rich and famous, has used barges to cart construction and household supplies since 1987.
Its latest 10-year lease with the port dates back to 1998, with a cost of about $1.50 per square foot, for 31,000 square feet of space on a portion of Dodge Island -- or $46,500 a year.
The 15-minute barge crossing is a ''lifeline,'' James said. As many as four barges run the two-mile or so stretch continuously from 6 a.m. to 6 p.m each day. They are in addition to ferry service from Terminal Island, used by residents, guests and most household staffers.
''Without this barge system we are essentially cut off from the mainland,'' he said. ``It is essential for our survival.''
Besides the waterfront landing, Fisher Island's lease requires it to pay the port for security fees and any rental rate adjustments, said Port of Miami Director Bill Johnson.
But when Fisher Island started asking for an extension shortly after Johnson arrived, two years in advance of the lease's expiration, he looked into the payments. And he realized the island had not been paying its full share.
''We were never billed,'' James said, ``until the fall of 2006 when Bill Johnson took over the port and discovered that we had not been billed.''
The settlement represents a reduction from the $1.3 million in security fees the island actually owes, Johnson said. The port is also forgiving $426,000 related to two rate adjustments, because it was the port's mistake not to charge.
''Unfortunately it was not properly administered,'' Johnson said. ``Shame on us. It will be, going forward.''
The community of 691 condominiums and six single-family homes, which spends about $21.5 million a year in property taxes, will pay the back payments, plus interest, over three years. Rent is now $4.50 per square foot and going up, as Johnson seeks to reflect current market rates.
''It's a very fair and reasonable settlement,'' Johnson said, ``and we are very appreciative for their understanding and support.''
While rent will rise, he said security costs will actually drop, as the port hires more security employees and reduces its overtime expenses.
Still, James said the island is looking for alternatives because the fees are unaffordable in the long term.
''We're looking at a number of options, and the cost would be remarkably lower,'' he said, declining to elaborate.
If Fisher Island opts out, the port would use the space for maritime use, likely for cargo operations, Johnson said.
''It's not like we're going to cry any tears with them leaving,'' he said. ``In the interim, we're being good partners with them to accommodate their operation.''
posted by Donnie Pingaro at 8:26 AM
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