Florida Keys News
Saturday, July 28, 2012
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Budget talks spotlight cruise ship issue
Proponents renew their push for channel-widening study

The arguments were not new, but the sense of urgency was more intense.

Numbers discussed at Key West's budget workshop meetings earlier this week showed a drop in the city's projected revenue from cruise ship passenger counts, fueling a renewed effort to explore widening the island's ship channel.

How relevant the passenger projections are to the city's future, or how that should affect future dealings with the industry, is still a matter of contention between members of the business community and among city commissioners.

Projections based on scheduled port calls for cruise ships show the total passenger count decreasing from 837,493 this year to 711,791 through the beginning of next year, a drop of about 16 percent. That translates into an expected drop in city income of $418,000.

During discussions with Port Director Jim Fitton and Assistant City Manager Mark Finigan, commissioners asked sometimes pointed questions. One commissioner, Mark Rossi, said he had a clear answer. From his perspective, the loss represents half the shortfall the city is seeking to plug with a potential tax hike and increase in parking rates. And it presents a message to him that the city must find a better way to accommodate the ships. And the first step toward that is looking into whether the Key West channel can be widened to accommodate bigger ships.

But there are no indications that Rossi's fellows are any more persuaded toward that course of action than when they voted down attempts to get that done last year. But Rossi is pushing hard.

"What happens when 100,000 passengers disappear?" he asked. "You can't replace 100,000 people. How are you going to do it?"

The projections are not engraved in stone. As he answered questions for commissioners, Fitton noted that changes in weather and other issues can result in ships bound for other ports redirecting and ending up at Key West. But for now, he acknowledged, the schedule is what it is.

The financial measures presented to commissioners dealt strictly with disembarkation fees, the money the ship operators pay the city, based on their head counts, every time a ship berths at one of the city's three cruise ship docks.

That money goes into the city's general fund, ostensibly to pay for police and fire protection and wear and tear on roads. There is no statute that specifically regulates how that money is used, according to Rossi. Directly or indirectly, through the general fund, it ends up being part of the package that pays for many different kinds of city services.

Commissioners discussed various causes for the projected drop in passengers. Fewer ships arriving in Key West, rather than fewer passengers taking cruises, emerged as the likely scenario. Rossi maintains emphatically that the math is simple. More ships mean more passengers, he said, and that means more fees and more money spent ashore.

The industry appears to be doing well. Based on third-quarter 2011 results and fourth-quarter estimates, the industry forecasts record passenger counts.

The annual occupancy for ships exceeded 103 percent in 2011, according to the Florida-Caribbean Cruise Association's annual report. That same report estimates average spending at a Caribbean port-of-call at $97.26, with average spending by crew members estimated to be $89.24.

That, according to Rossi and other cruise ship proponents, is a reflection of the hidden benefits of the cruise industry on the local economy.

Bolstered by the bad projections for the city, Rossi and other cruise proponents plan to once again market their push for a study. An informational meeting sponsored by the Key West Chamber of Commerce is scheduled for 6 p.m. Aug. 23 at the Westin Hotel. The public is invited.

Chamber Executive Vice President Virginia Panico agrees with Rossi that the changes in numbers at the ports are a harbinger of the future.

"Indirectly, it affects everybody in the community -- the sales tax alone," Panico said.

Some commissioners found Rossi's use of the budget hearing as a bully pulpit for the cruise issue disconcerting. One suggested that Rossi's connecting of dots between the projected passenger drop and the city's potential need to tax more was "inappropriate."

Commissioner Tony Yaniz said that while the numbers presented no doubt showed a drop, he didn't necessarily see it as that serious an issue.

"It is 5 percent of our total income," he said, expressing concern over how heavy cruise passenger numbers can make Key West less appealing to tourists who fly or drive here. "I am in the vacation business; I talk to people. I have to believe there are people who have taken Key West off of their plate because of the cruise ship fiasco. Three cruise ships in town makes for four, five, maybe 6,000 people, all in a concentrated area."

If Key West's channel cannot handle cruise ships of the future, Yaniz said, then it means there is time to amend strategies.

"If I am selling tomatoes, and you tell me in eight or 10 years nobody is going to eat tomatoes, that gives me that much more time to learn to grow potatoes," Yaniz said. "I'm not going to spend my time figuring how I can grow more tomatoes."

Cruise proponents say all they seek for now is the city's blessing for the channel-widening study. Rossi said he has enough of a commitment for its multimillion-dollar cost from private industry so that the city would not have to spend a cent.

But because the study would be done by the Corps of Engineers, he said, the city would actually have to make the request.

Yaniz said that was an exercise in futility, although, with proof of such assurances, he said he could support the request.

"Does anybody really believe the Army Corps of Engineers is going to say you guys can rip out a half-million tons of bottom and dump it into another part of the ocean?" Yaniz said. "And if they did, who is going to pay to dredge the channel? So if the cruise ships are threatening we will have no cruise ships 10 years from now, I would say we might have more tourists precisely because there are no cruise ships. It is a crack addiction. If we do what they want, what will be the expense to our reef, to our fishing industry? I would want a long-term environmental and economic impact study."

jdesantis@keysnews.com

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WHO???



Rossi and "other cruise proponents" - use their names just like you do Rossi. Whose hiding behind him?

Stop and think first: The

Stop and think first: The economy hasn't gotten any better; a lot of people are thinking should they splurge for their vacation or stay home and save their money for that "just in case", that is the question. the economy isn't getting any better, right now the nation is on a plateau and edging to fall again unless a miracle happens where the United States rises above the slump. Key West has to be creative to invent other "celebration" revenue to make up the lack of cruise ship(s) port of call for the off season: May, June, July, August, September. Ask us residence to come up with creative ways to generate income and focus on the visitors who fly and drive down instead and as not to solely rely on the cruise ships completely. I don't think the residence would want an 11% tax hike on their property. Does anyone else have any other ideas to get the revenue up from the lost income of the cruise ships. Rossi is pushing the issue for the study of the "can we widen the channel" issue once again. I thought that was buried last year and forgotten, but no, the beast has reared it's ugly head once more. If this is survivors, I would want to vote Rossi and his crone's' off the island.

Ideas.

The problem is, there are only so many flights in and out of KW, and only so many affordable hotels in KW. Until we have a larger airport with more reasonable flight costs and more reasonable hotel rates, the land based tourism will not increase because many can't afford it. And driving down is something that is only done once by folks who live further away than Florida. The traffic slow downs on the over congested 2-lane road are even starting to annoy tourists. Again, only making US1 a 4-lane road will fix that. What the city of KW should do is find a way to attract the few ships that remain in the area during the summer. For example, try to sell KW to the Majesty of the Seas on their 3 night weekend cruise instead of going to Nassau.

Argue with Yaniz

You are a short time gainer

Yaniz rocks

For vp

Voter Referendum.

Virginia Panico amd all thoughs (9) garbage referendums her and her elite committee came up with, should be VOTED DOWN. If there was ever a need for a voter referendum it is the question of Widening the channel, THAT should be put to the vote of the residents of this community, this directly effects our quality of life. Commissioners do the right thing, you still have the time to put it on the November ballot. Call a special meeting or put it on your next agenda. Do it for your constituents.

Yaniz has a point.

After my first several visits to Key West when there were always 2-3 ships were in port, I just figured that was the way it was: masses of people wandering aimlessly, blocking traffic and crossing against the light because they think this is a Disney park instead of a real, working, functional city, etc. Then last month, I visited and the place was beautiful. A decent number of people, but not the fiasco of my previous trips. The difference? It was my first time visiting with no ships. The "five dolla" guys were fairly quiet...we could walk into stores and actually make purchases instead of being blocked in all aisles by browsers, and take our time to actually see & enjoy our surroundings instead of constantly having to navigate groups of people whose apparent aim is to stand around blocking streets deciding what to do. I am not saying all cruise passengers are problems, but if you figure 20% of any population in the world fights with common sense, that is still a thousand+ people dumped onto the streets who just don't get it. But, by the time I left, the ships were back and it was back to being a mess again. For all my future trips, I will plan around the cruise schedule. Now that fewer are scheduled, I have more options of when to be back. I'm pretty sure I'm not alone.

INSANITY

The most important development in the budget hearings came when Commissioner Tony Yaniz forced Port Director Jim Fitton (who should have been sent packing with former City Manager Jim Scholl) to admit that cruise ship revenues represent a mere five percent of the city's annual revenue. DeSantis deserves an Olympic gold medal for twisting that into a pro-cruise ship story. Betcha he never pays for a beer at Rick's.

As far as Panico, Rossi and their glowing presentation of the cruise ship's impact on our tourist industry, here's what was said by a visitor in Fodor's: "... much has been lost to those eager for a buck. Duval Street looks like a miniature Las Vegas lined with garish signs for T-shirt shops and tour company offices. Cruise ships dwarf the town's skyline and fill the streets with day-trippers gawking at the hippies with dogs in their bike baskets, gay couples walking down the street holding hands, and the oddball lot of locals, some of whom bark louder than the dogs." http://www.fodors.com/world/north-america/usa/florida/the-florida-keys/k...

Rossi is using the same tactic that Scholl did, suggesting that "we're only talking about a study here." Well, the study is the camel's nose under the tent. The Corps of Engineers doesn't undertake anything they don't expect to see through to sad fruition. A vote for this "study" is a vote for channel widening-- and the destruction of our delicate water eco-system.

This discussion ended when we-- the citizens-- finally forced Jim Scholl out of office. And we hope that the new city manager thinks long and hard before even considering backing this much-hated proposal ever again.

Which brings up The Citizen editorial of 7/28/12, which is the biggest bunch of crap I've read in the paper in 20 years. It is an irresponsible attempt to build up Jim Scholl's bona fides for his next job, painting him as competent, "smiling-faced" and an asset to the city. Nothing could be further from the truth. Scholl was reprimanded repeatedly by city commissioners for pursuing his own personal agenda, including the channel-widening affair. He was caught with his political tit in the wringer more than once. He ignored the commission's direct orders to move forward with plans for an Angela St. city hall site. The list goes on and on. Thank goodness, Scholl doesn't.

Every citizen must vehemently fight this new attempt at channel-widening near this small island. It is not wanted or needed. It will only destroy the little that we have left to offer tourists. Please notify your city commissioner where you stand and show up at any and all commission meetings regarding the issue. Be heard!

I can see both signs...

but I lean towards Mr. Yaniz's theory. I mean let's be honest people, the "tomatoes" are even starting to stink. Key West can't really accommodate more people in its downtown concentrated areas. Perhaps instead of widening the channel a better and less expensive idea may be to add another port to bring traffic to another part of the city, thereby spreading businesses and reducing the congestion. A new port in Stock Island, or disembarkation "dumping" of smaller more luxurious ships say in area of old Bight or Sigsbee might just create economic development in those areas. In other words new retail, new shops, more tax revenues without the burden. Build a mall somewhere else, it can't be worse than a bunch of t-shirt and bong shops. Maybe new Downtown Stock Island Port would be a wonderful addition.

It is such a shame that no one ran against Rossi

We do need a voting option of "no confidence/ none of the above". Rossi sold out years ago ; and only really cares about his own financial gain. A prime example is his brewery viewpoint; perhaps he feels only His business should sell Budwieser.

that tropical storm that

that tropical storm that rolled through here about six weeks ago left about a 1/4 inch of silt on the deeper parts of the reef after it all settled down. it's now smothering and killing off those corals, i've seen it myself first hand. so if you think widening the channel will not do damege to the reef you are insane. furthermore... if rossi and his buddies really want more revenue from passenger disembarkation fees, then they should simply double those fees. personally i'd like to see all the cruise ships go away as they do nothing to bring tourist dollars to local businesses other than the t- shirt shops and bars like mark rossi's complex on duval street. that's why he's pushing for this. for rossi widening the channel has nothing to do with more revenue for the city, but rather more profits for himself. this guy has got to get booted off the commission... i say recall his a$$ already.

Yaniz makes a lot of sense...

Key West started getting tacky about the time cruise ship passengers passed the 500,000 mark. The island becomes MORE desirable when it is not overrun with cruise passengers. Key West is not Coney Island, even if that is what Virginia Panico is used to and would like to recreate here.

Head Shops

It isn't the cruise ships that make KW a tacky Coney Island atmosphere. It's the tasteless, disgusting t-shirt shops along Duval St that display vulgar, crude material in their front windows. That's the first thing that should be fixed by the city. Otherwise, we are just advertising ourselves as a city without taste.

Tacky tshirt shops

proliferate because they have customers. Cruise ship passengers = customers.

Here we go again...

Doesn;t anybody see that this is a one man crusade by Mr. Rossi??? Talk about conflicts of interest! Now he found outside money to fund the study?? How convenient.... its simply unbelievable.
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