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Tax plan a step to preserve marinas

City officials consider a proposal to defer marina property taxes to help some owners avoid selling to condo developers.

By AARON SHAROCKMAN
Published February 3, 2006

CLEARWATER - Calling it a first step, city officials Thursday agreed to be the first city in the state to formally consider offering a tax incentive aimed at preserving commercial marinas.

The incentive is aimed at working marinas or other businesses that provide recreational access to Clearwater's waterfront. It would let the owners of those businesses defer paying their city property taxes.

The hope is to prevent further condominium development from displacing working waterfront businesses. At least three Clearwater boathouses have recently been sold to developers who want to build more profitable condominiums instead.

The plan, created by the Legislature last year and championed by state House Rep. Kim Berfield, a Republican from Clearwater, has been criticized as not going far enough. The taxes will come due if the property is ever sold or if the land changes use.

But city officials decided to move the debate forward Thursday, despite the questions about the legislation.

"This is not a giant step forward to a business owner," said City Council member Bill Jonson, who initiated the discussion. "It would be more of an indication of support for our waterfront community."

Working waterfront owners would not be required to use the deferral. Rather, they would choose whether to apply to the tax collector to take advantage of it. Bill Morris, the city's harbormaster, said only two businesses - Quality Boats on Island Estates and Marine Max on U.S. 19 - currently would potentially qualify for deferral.

He said the local boating community seems uninterested.

"They didn't see this as a real benefit to them," Morris said.

Instead of getting a deferral, he said, they would like to see their taxes reflect the property value of the businesses they are running, not the lucrative potential of the property if they sold it for redevelopment.

Still, Jonson said, it could help businesses in the future.

City Attorney Pam Akin said Clearwater will be the first Florida municipality to draft an ordinance implementing the deferral program. A vote on the ordinance was not scheduled Thursday.

Aaron Sharockman can be reached at 727 445-4160 or asharockman@sptimes.com

Clearwater officials are considering a measure to help the city's commercial marinas and other businesses that provide recreational waterfront access. Here's how it would work:

Qualifying businesses could defer paying city taxes until the total amount of the deferred taxes and other liens against the property, including mortgages, added up to 85 percent of the assessed property value. Interest would accrue on the deferred taxes, which would come due if the use of the land ever changed.

[Last modified February 3, 2006, 01:24:20]