The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Friday, September 30, 1994             TAG: 9409300515
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY MASON PETERS, STAFF WRITER 
                                             LENGTH: Medium:   90 lines

ENVIRONMENTALISTS FACE WATER-TAX FIGHT BUSINESS OWNERS RALLY TO PREVENT STATE TAKEOVER.

Coastal marina operators, fishermen and boat yard owners are rallying to repel an environmentalist effort to classify nearly all near-shore recreational waters in North Carolina as state property that must produce new taxes or ``fair value'' rental fees when used by private businesses.

The environmentalists contend that under an ancient legal interpretation, waters around marinas and boat yard docks are ``in the public trust'' and should yield revenue for the state when used by commercial interests.

Many private waterfront operators fear that rigorous enforcement of such a doctrine would put them out of business, and this week General Assembly leaders began naming a special study group to recommend new legislation to govern state-owned submerged lands.

``I don't know how many taxes we already pay up front,'' said Harry Schiffman, proprietor for 17 years of the Salty Dawg Marina in Manteo and a former mayor of that Roanoke Island town.

``This new proposal would establish a hidden penalty aimed at crippling anyone who tries to do business around this state's beautiful waterways.

``Some of us feel strongly that we must stand up against those who argue that there is no place in nature for human beings,'' added Schiffman.

Schiffman is one of 10 citizens with marine interests who were named this week by state Sen. Marc Basnight, D-Dare, to study the environmentalists' proposals. Also appointed by Basnight was Eve Trow, a Colington Harbor official.

Another 10 members will be appointed to the study committee by N.C. House Speaker Daniel T. Blue Jr., D-Wake. The appointees will include a cross-section of coastal community leaders and marine business representatives.

``We don't intend to hurt small business operators at marinas or other waterfront enterprises that are creating jobs and helping our state economy,'' Basnight said Thursday.

``But this is a sensitive issue affecting many waterside communities. The new study committee members have a lot of work to do before we consider their recommendations when the new General Assembly convenes in January.

``I think if a builder or a developer puts in a marina simply to sell more houses or condos, then we should look at it as a possible source of revenue. But I don't think we should hurt small boat builders or marina operators who are no different from those who run other small businesses uptown.''

Plans to combat environmentalist efforts to impose taxes or other fees for use of the water at marinas or boat yards are expected to be stepped up when a North Carolina Marine Exposition opens a three-day meeting in Wilmington Nov. 17.

The exposition will attract hundreds of marine business representatives. Basnight will be a principal speaker at a forum that will consider proposed new water taxes and special waterfront usage permits.

In Chapel Hill, J. David Farren, an attorney with the Southern Environmental Law Center, said his non-profit organization was leading the effort to ``enforce clearly existing statutes.''

Farren's organization went to court with test cases and won rulings that halted three waterfront developments, including one on the Chowan River in Bertie County and one in Edenton.

Subsequently, the N.C. Department of Administration, acting under the direction of the N.C. Council of State earlier this summer, issued three milestone easement permits for marinas that would further establish the right of the state to charge for use of the waters around the docks.

Under state law, the Department of Administration is in charge of all state property, including navigable waters within the state.

Environmentalists argue that marina and other waterfront enterprises should pay for annually renewable easements that would permit them to use the waters for docks and marine railways.

Law books are filled with sometimes fuzzy statutes that attempt to define public trust waters, and, in North Carolina, the environmentalist campaign seeks to classify thousands of watery acres as eligible for such easement fees.

When the Department of Administration issued the three easements earlier this summer, the operators were charged legal costs but no set yearly fee was established for the easements.

Farren's Southern Law Center is pushing for easement charges that would be based on the number of square feet of water under dock or boat yard areas.

``That's something that the study committee will have to discuss before we can consider possible legislation,'' Basnight said. ILLUSTRATION: Color photo by DREW C. WILSON, Staff

``I don't know how many taxes we already pay up front,'' said Harry

Schiffman, proprietor for 17 years of the Salty Dawg Marina in

Manteo. Schiffman is one of 10 citizens named by state Sen. Marc

Basnight, D-Dare, to study an environmentalists' proposals.

by CNB