Discussion Questions for 2018 Retreat
/1. BEACH NOURISHMENT 1/14/2018
This topic has been discussed for years. The evidence is real and there is no excuse for the County’s reluctance to act . All facts stated here are from tax, LUP data sources or as referenced.
What’s the value of our beaches to our County? The 2007 Tourism survey ranked our beaches as the #1 attraction by far. The beaches generate the majority of the County’s tax revenues while requiring only a tiny fraction of the County’s budget. COBX is only 9% of the land area, but it represents 55% of all property value and generates 65% of all tax revenues. This keeps Currituck County’s tax rate low, leaving more money in the pockets of its citizens while creating additional investment resources for the County. This has been made possible by more than $3.0 Billion in private sector investment. This investment generates about $30 M of total tax revenue for the County ever year.
Is this value in jeopardy? Yes. The USACOE continues to measure an erosion rate of 2 feet per year. In 2003 Hurricane Isabel washed under some Corolla homes. In 2005 the Currituck Chamber of Commerce first noted the weak rental market that persists to the present. Property values dropped 40% from 2005 to 2013 and have not recovered. The beaches are narrower than ever with only a narrow strip of dry sand at high tide. Meanwhile our closest competitors have invested to recover their wide beaches. Mainland taxpayers are going to be in for another big tax increase in 2021 unless Currituck County management takes action.
Does beach nourishment work? Yes. These projects have been successful in over 400 other communities going back 50 years. Ref: National Beach Nourishment Database. Nourishment is viewed as a cost of doing business, protecting a valuable asset. It does not stop erosion, but it re-establishes the wide beach loved by vacationers, protects oceanfront properties and enhances the beach experience for all beach goers. Yes, it will likely have to be redone every 20 to 30 years to preserve the value, but its cost is only a small fraction of tax revenues that would otherwise be lost.
Can we afford it? Based on the recent Dare County projects it is estimated that restoring Corolla’s beaches would cost between $25 and $35 million. This cost is a fraction of the more than $100 million in total Occupancy Tax collections since 2007 and less than one year of property tax, occupancy tax and sales tax contribution from Corolla. Yes, the County can afford it. With rental rates weak, property values down and oceanfront homes at risk you can't afford not to take action now. To enable this to be done again 25 years from now the County should set aside and invest 10% of the Occupancy Tax proceeds each year going forward.
Discussion of next steps– Who is going to take the lead? What should be the timetable and end objectives? What is the best financing strategy to accomplish this quickly? What is the best communication plan to let the private sector know that a future investment in COBX is safe?