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

DATE: Thursday, November 17, 1994            TAG: 9411170471
SECTION: LOCAL                    PAGE: B01  EDITION: NORTH CAROLINA 
SOURCE: BY MASON PETERS, STAFF WRITER 
DATELINE: ELIZABETH CITY                     LENGTH: Medium:   75 lines

MARINAS GET SUPPORT IN FIGHTING WATER-TAX LAW DEVELOPMENT PANEL OPPOSES MOVE BY CONSERVATION GROUPS.

Support for Albemarle marina operators and waterfront residents who are fighting efforts to tax state-owned waters under and around their docks, homes, and boat moorings came Wednesday from the Northeast North Carolina Economic Development Commission.

The commission members, meeting at Elizabeth City State University, also heard N.C. Commerce Secretary Dave Phillips praise what he called the ``new regionalism'' that crosses state lines to encourage joint economic progress.

``Efforts by some North Carolina and Virginia officials to resolve the Lake Gaston pipeline issue could be considered part of this new regionalism,'' Phillips said.

Informal talks were held last summer between state Sen. Marc Basnight, D-Dare, and Virginia legislators to seek a ``neighborly'' solution to the squabble over efforts to pipe water from Lake Gaston to Virginia Beach.

After hearing a plea for help from a Manteo marina operator, economic development commission members moved quickly to support a resolution opposing efforts by conservation groups to impose levies on state-owned waters considered held in the ``public trust.''

Under the proposal, waters around privately owned marinas, some yacht moorings and docks at waterfront homes would be subject to separate taxation.

``There is a real threat that waterfront landowners will lose their traditional riparian rights,'' Harry B. Schiffmann, operator of the Salty Dawg Marina in Manteo, told commission members.

``The aim of those sponsoring such taxation is to stop all waterfront development,'' said Schiffmann.

Several local marina operators have said the water-tax law would put them out of business because of unacceptably steep increases in marina service charges.

Schiffmann will head a delegation of Albemarle and Outer Banks marina operators and waterfront home owners who will go to Wilmington today for a North Carolina Marine Trade Exposition and convention. Prominent on the convention agenda will be an open forum on the proposed public trust water fees.

Before hearing Schiffmann at the commission meeting at ECSU, the members attended a meeting of the N.C. Economic Development Board - a separate pump-priming group - at the Pasquotank County Courthouse. The statewide Development Board will hold another meeting today in the Sanderling Inn at Duck.

At the subsequent ECSU meeting, the northeastern development commission members resumed their struggle with the organizational problems that have vexed them since the group was given nearly $2 million by the legislature a year ago and told to start priming the Albemarle's economy.

The commission choked up on a proposed new procedural responsibility flow chart moments after quickly approving a report by Treasurer Sidward M. Boyce, an Elizabeth City banker, that showed the commission had spent $81,616 in the two months ending Oct. 31.

Boyce's accounting covered salaries and office operational costs but listed no specific economic development funding.

Chairman Andrew Allen, a Plymouth businessman, ran into trouble when he distributed copies of the new organizational chart that would create separate ``economic'' and ``tourist'' advisory boards under a new incorporated ``development partnership.''

Mary P. Lilley of Williamston, director of the Martin County Chamber of Commerce, and Charles P. Shaw Jr., a retired Edenton oil company executive, both demanded clarification of the revised table of organization.

Finally, it was decided that an ``executive committee'' would coordinate efforts of the ``economic advisory board'' and the ``tourist advisory board'' with all three answering to the main ``regional economic development commission.''

A new organization chart will have to be prepared for future consideration, the members decided. by CNB