Key West officials last week agreed to take ownership of Higgs Beach from the county, which for some reason had always owned the 16-acre parcel in the heart of Key West. The county and city have discussed an ownership change for a decade, but no agreement ever materialized, until now.
Here’s the deal:
Key West gets Higgs Beach, the surrounding park, buildings and recreational amenities from the county, plus about $3.7 million in grants and insurance proceeds for planned repairs and improvements.
The county gets rid of its responsibility for the 16-acre parcel and can position its parks and recreation staff and resources to serve countywide facilities more efficiently and effectively.
It never made much sense for the county to own a large beach and park property in the heart of Key West, but it’s not yet clear who got the better end of the deal.
Some oppose acquisition
Five Key West residents spoke in opposition to the acquisition and two city commissioners — Donie Lee and Sam Kaufman — voted against it at the April 1 city commission meeting.
“This seems to be a way for the county to give away something it doesn’t want to be fiscally responsible for, and that doesn’t make sense to me. We need more clarity,” resident Edie Hembright told the commissioners.
Chris Massicotte, who is running for the District 5 city commission seat, urged the commission to ask the voters in a November referendum if they want the city to acquire Higgs Beach.
“This is not just accepting a beach; it’s taking on a long-term financial responsibility for an asset that already has known needs,” Massicotte said. “There is so much uncertainty in Tallahassee around property taxes and our ability to raise funds. There’s economic uncertainty, global risks that could impact tourism and the local economy. … This is a big decision. People should understand it. … I’m not saying never, but come back with a plan that reflects the scale of the decision that you all are making today.”
City commission candidate Bobi Lori said it would be “unconscionable” to rush the decision “with all that we’re facing from federal and state administrations affecting our local economy.”
Former city commissioner Margaret Romero did not mince words.
“Don’t do it,” she said, outlining potential unknown costs and uncertain revenues. “There’s too many reasons not to do it. It’s a bad idea. For right now, just say no.”
Answering financial questions
City Manager Brian L. Barroso invited Monroe County Administrator Christine Hurley to walk the commission and the public through the funding that accompanies the property transfer.
The city’s financial analysis shows a potential to make about $240,000 from Higgs Beach each year in rent from tenants. Hurley added that the county has typically operated the beach and park in the black.
She said that if the city were to accept the Higgs Beach parcel, the county would transfer about $3 million in funding from insurance proceeds following Hurricane Ian claims and from Tourist Development Council (TDC) grants that cover long-term beach cleaning and maintenance as well as specific improvements. That $3 million would cover seawall repair, playground improvements, upgrades to the historic West Martello building and more.
“Higgs Beach is a valuable asset, but for the county to operate and maintain it is hard on our operation and we know there have always been differences of opinion on what should be there,” Hurley said. “Does the Key West commission want to take that on, or let the county continue to maintain and operate it?”
In the end, the city commission voted 5-2 to take on the responsibility and potential revenue of Higgs Beach, where city officials have already discussed implementing paid parking, which is currently free. Discussions have so far included free parking for residents.
The city will also become the landlord of the three existing tenants at Higgs Beach — Salute restaurant, Key West Gardens at West Martello and Sunset Watersports rentals.
Commissioners debate
After the public’s comments, the commissioners discussed the proposal, and invited Hurley to participate and answer questions.
“I’m sure the city manager, in budget preparations, has directed departments to formulate their budgets with wants versus needs,” Lee said. “I can’t in good conscience support a want versus a need right now. Higgs Beach is not going away. … I understand sometimes you have to take risks to get the reward. That’s great if it’s my money, but this isn’t my money. I think there’s too much uncertainty to take this on right now.”
Kaufman, who is running for mayor against incumbent Dee Dee Henriquez, agreed with Lee.
“This probably will pass,” Kaufman said. “But we’ll remember this day going forward a year or three from now when we wonder why we’re in this position and struggling to pay for Higgs Beach. I can’t support this because, as Margaret said, it’s just not fiscally responsible, not at this time.”
On the other side of the debate, Commissioner Greg Veliz, a former Key West city manager, said he couldn’t understand why the city wouldn’t accept a free parcel of beachfront land.
“I don’t see how anyone could say no,” Veliz said. “We talk about Higgs Beach being a gem, and yet we have no say-so over it. It’ll never make a boatload of money; it’s an asset. It’s something we should own. … And yet we don’t want to take it over because we might be able to share the expense with the rest of the county? I think it’s our responsibility to take it over and to have it. Geographically, it’s a nightmare for (the county). … Right now it makes sense and if we had 16 unclaimed acres in Key West, we would absolutely take it. But here, we’re gonna sit here and quibble over whether we’re making enough money on chair rentals?”
