The City of Sebastian is investigating waterfront property next to Fisherman’s Landing in Sebastian, located at 1527 and 1528 N. Indian River Drive. However, there are concerns about its $2.9 million asking price. The city council wants an appraisal done on the 1.3 acre property.

A few people look at the property, which could become a future home. The owner is asking $2.9 million for the ownership of two parcels.

The challenge is how the city will pay for the property. One way to pay for it is by using funds from the construction fund, DST funds, and making commercial loans.

However, City Manager Paul Carlisle was concerned about using most of their reserves to fund this one property, not knowing what the economy would look like in the next 2-5 years. Carlisle suggested that if the city makes an offer, it should be contingent on appraised value and funding approval.

Buying the property would preserve the east side of Indian River Drive, preventing someone from building a house on the waterfront. The west side of Indian River Drive is just wasteland.

Preserving the east side of Indian River Drive has been the Town of Sebastian’s goal, which is why they purchased the property where the Harbor Lights Motel is located near the boat launch on Main Street. The city has secured the east side, preventing anyone from building on it.

Sebastian City Council Concerns

Councilman Ed Dodd suggested going ahead as long as it doesn’t hurt finances, but said the city would never pay above the appraised value. But Dodd also doesn’t want to see a single-family home built on the east side next to the working waterfront.

“I’m not prepared to make a $2.9 million offer,” Councilman Ed Dodd said.

Councilman Chris Nunn said it makes sense to preserve the waterfront, but he doesn’t favor depleting the city’s reserves to buy it. Nunn said he felt torn over the property because the east side was valuable to the city and suggested they could sell the west side later to pay off the finances.

The article continues below…

But Councilman Bob McPartlan doesn’t think it’s fiscally responsible.

“No. I mean $2.9 million? We have a stormwater master plan that we spent $700,000 on, and now we have this $2.9 million? It’s a beautiful property, I I agree, but we don’t have the money to pay for that. We have a lot of strangers coming into town,” McPartlan said.

Deputy Mayor Fred Jones agreed with McPartlan and shared his concerns.

“I agree. I don’t think it’s financially responsible right now. My only concern with that property over there is that someone is going to buy it. They’re either going to build a restaurant or a house on that property and it’s going to harm our shoreline. But we don’t have the money right now to do that,” Jones said.

Mayor Jim Hill disagreed with Jones and McPartlan and is concerned about having 2-story condos on the east and west sides of the property.

“So it’s a big decision we’re making here. But with the options available, the city can get a loan without a problem; we have an A+ rating. We can get a $2.9 million loan over 20 years and pay it back over 20 years,” Hill said.

But Hill agreed with some of McPartlan’s concerns that the city has millions of dollars to make on its infrastructure going forward.

“I’m torn about this. We said we should do the exact same thing on Main Street (Harbor Heights Motel). Buy the property and resell the western portion,” Hill said.

The city council has commissioned Carlisle to do the assessment, which will end in about four weeks, to see if the number is lower and more reasonable. If it is too high, the city will move away from it.