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September 15, 2006
County sinks money into ship By Alyson Crean acrean@keynoter.com Posted-Friday, September 15, 2006 7:18 PM EDT Administrator says $2 million worth the cost Monroe County Administrator Tom Willi once admonished the County Commission for relying too heavily on revenue from the county's infrastructure tax. Now he's counting on it to provide an extra $2 million in the 2007 budget to sink a boat. Wreck-diving advocates have been working for years to sink the USS Gen. Hoyt S. Vandenberg at a cost of $5.7 million, according to Joe Weatherby, founder of Artificial Reefs of the Keys. The Monroe County Tourist Development Council has already earmarked $1 million for the project. The payoff in return for spending the public money, however, is not so easy to define. Grace Johns, project director for an economic study conducted by the National Oceanic and Atmospheric Administration, says the sinking of the 510-foot Spiegel Grove in May 2002 has benefited the Upper Keys. “A $2 million investment has a payback period of seven years and generates $315,000 a year in income for residents' pocketbooks,” she said. Those numbers, she told the County Commission during a Wednesday budget hearing, are extrapolated from the Spiegel Grove and applied to the potential for the 520-foot Vandenberg. “We should have sunk 35 ships if it was truly going to generate that kind of revenue,” Commissioner George Neugent said. “It's not that we don't think it's a worthwhile project,” Commissioner Dixie Spehar said, “but where are we going to find the money?” Weatherby's group originally wanted the county to provide $4 million for the sinking. However, he said some Key West city commissioners have personally offered to help him secure $2 million of that. “Because of the reduction in the request,” Willi said Thursday, “we will recommend funding that $2 million out of infrastructure funds. “We have to realize how fortunate we are to have that revenue stream,” Willi continued. “Most counties cannot collect this extra tax. Sixty percent of it comes from tourists.” Some Upper Keys residents, citing the success of the 2002 sinking of the Spiegel Grove, favor the expenditure. Dive operator Spencer Slate says he had to buy a second boat because of the demand to dive the wreck. “Try to get a parking spot any weekend on that [wreck],” he said. Rob Blesser, a member of the Key Largo Chamber of Commerce board of directors, says private donations made the Spiegel Grove happen. The overall cost to sink the Spiegel Grove was $1.35 million. The chamber has approximately $140,000 left in loans to pay it off. Weatherby said he has raised $30,000 in private money for the Vandenberg sinking. Costs include cleaning the ship of contaminants and transporting it to the Keys.

September 15, 2006

County sinks money into ship

By Alyson Crean acrean@keynoter.com Posted-Friday, September 15, 2006 7:18 PM EDT

Administrator says $2 million worth the cost

Monroe County Administrator Tom Willi once admonished the County Commission for relying too heavily on revenue from the county's infrastructure tax.

Now he's counting on it to provide an extra $2 million in the 2007 budget to sink a boat.

Wreck-diving advocates have been working for years to sink the USS Gen. Hoyt S. Vandenberg at a cost of $5.7 million, according to Joe Weatherby, founder of Artificial Reefs of the Keys. The Monroe County Tourist Development Council has already earmarked $1 million for the project.

The payoff in return for spending the public money, however, is not so easy to define.

Grace Johns, project director for an economic study conducted by the National Oceanic and Atmospheric Administration, says the sinking of the 510-foot Spiegel Grove in May 2002 has benefited the Upper Keys.

“A $2 million investment has a payback period of seven years and generates $315,000 a year in income for residents' pocketbooks,” she said. Those numbers, she told the County Commission during a Wednesday budget hearing, are extrapolated from the Spiegel Grove and applied to the potential for the 520-foot Vandenberg.

“We should have sunk 35 ships if it was truly going to generate that kind of revenue,” Commissioner George Neugent said.

“It's not that we don't think it's a worthwhile project,” Commissioner Dixie Spehar said, “but where are we going to find the money?”

Weatherby's group originally wanted the county to provide $4 million for the sinking. However, he said some Key West city commissioners have personally offered to help him secure $2 million of that.

“Because of the reduction in the request,” Willi said Thursday, “we will recommend funding that $2 million out of infrastructure funds.

“We have to realize how fortunate we are to have that revenue stream,” Willi continued. “Most counties cannot collect this extra tax. Sixty percent of it comes from tourists.”

Some Upper Keys residents, citing the success of the 2002 sinking of the Spiegel Grove, favor the expenditure. Dive operator Spencer Slate says he had to buy a second boat because of the demand to dive the wreck.

“Try to get a parking spot any weekend on that [wreck],” he said.

Rob Blesser, a member of the Key Largo Chamber of Commerce board of directors, says private donations made the Spiegel Grove happen.

The overall cost to sink the Spiegel Grove was $1.35 million. The chamber has approximately $140,000 left in loans to pay it off.

Weatherby said he has raised $30,000 in private money for the Vandenberg sinking.

Costs include cleaning the ship of contaminants and transporting it to the Keys.