EMERGENCY!
Beach businesses say taxes will kill profitability
BY LISA NEWELL Gulf Breeze News lisa@gulfbreezenews.com

Adding property taxes on top of leases will ruin the commercial businesses' ability to compete, many business owners told representatives at a special meeting.

Santa Rosa Island Authority board member John Peacock and SRIA Executive Director Buck Lee heard concerns from many people who believe that taxes on the improvements to their leasehold property are a foregone conclusion.

Fred Simmons, owner of several businesses on Pensacola Beach, said the fees businesses pay are "astronomical."

June Guerra said having to compete with a restaurant across the bridge is extremely difficult when paying lease fees and ad valorem taxes.

"The price of our product is supposed to cover all our expenses," Guerra said, and that to stay competitive, beach business owners often absorb the cost differential.

Representatives from the hotel industry said their primary competition along the 150-mile Alabama and Florida coast pays less in fees, and that it is hard to attract large groups when they learn of the hidden costs of staying on Pensacola Beach.

Julian MacQueen of Innisfree Resorts said the Hampton Inn on Pensacola Beach paid $200,000 in lease fees while his Hampton Inn near the Pensacola Airport paid only $61,000.

"Why in the world would we build something here when it's half or a third the tax somewhere else?" MacQueen asked.

Joe Endry commented that some areas are trying to attract business by offering incentives and benefits. He said Escambia County is "doing the exact opposite" and "we have to make it attractive to people who are willing to risk capital."

This situation is "an emergency from the commercial side," said developer Robert Rinke. "Residential pays disproportionally low and commercial pays disproportionally high."

Jeff Elbert, president of the Pensacola Beach Chamber of Commerce, encouraged the Island Authority to work as a partner with the chamber to promote the beach during its slow periods.