Nags Head seeks to rebuild beaches amid funding shortage

NAGS HEAD, N.C.

Determined to nourish 10 miles of eroding Nags Head beaches but facing a potential funding shortage, town officials are preparing to consider alternative revenue sources for the controversial $36 million project.

Mayor Bob Oakes has called a special meeting for 7 p.m. Monday to discuss the possibilities - which, according to Town Manager Cliff Ogburn, may include raising taxes in some way.

The public is invited to attend.

The Nags Head's beach nourishment project would deposit 4.6 million cubic yards of sand on beaches south of Blackman Street. The project would advance the shoreline between 50 and 130 feet, depending on the location, and last for about 10 years, according to estimates.

The town had planned to finance the project with $28 million from county taxes and $10 million from a five-year tax levied to property owners in the assessment area. To move forward, the town needs the consent of a majority of property owners representing at least 66 percent of the area's total property value.

Officials had hoped to begin the beach project this coming spring.

A majority of property owners have signed on. But, as of Dec. 13, the town is stuck with consent representing only 55 percent of the area's property value.

"I think the board realizes that if there's any hope of nourishing the beach in April of 2011 that they've got to act pretty quickly," Ogburn said. "They want to have this discussion to give themselves enough time."

A permit from the U.S. Army Corps of Engineers secured by the town in November allows Nags Head to use a hopper dredge between April and September. The permit is only good through 2013.

Ogburn said he expects the board to discuss using Nags Head's portion of the county's occupancy tax revenue to fund the difference. In the past five years, the town has received an average of $1.7 million in occupancy-tax revenue.

Currently, that revenue goes toward the town's operating budget.

That means if commissioners do divert the money for beach nourishment, they may need to raise taxes elsewhere or cut services, Ogburn said.

"I think we have to prepare ourselves," he said. "If we don't reach the threshold for the special assessment, then what?"

Erin James, (252) 441-1711, erin.james@pilotonline.com