City officials told residents the Florida Department of Transportation (FDOT) has indicated it will not transfer certain stretches of Business 98 — including Beck Avenue and parts of Beach Drive — to Panama City. The decision changes how the city can build a sidewalk/promenade and requires additional FDOT permitting.

Jonathan (City Manager) said the city had sought a transfer of the road to gain local control over features such as narrowing lanes and creating a social district. He explained that FDOT initially gave verbal approval and a map, but later communicated concerns and declined the transfer. As a result, the city must now seek right-of-way construction permits and coordinate modifications with FDOT. Jonathan said he expects further meetings with the FDOT district secretary to resolve outstanding issues.

Project elements: staff said the appropriation for the broader project included an $8 million state allocation for a connector sidewalk from St. Andrews to downtown. Design engineers were asked to modify plans to meet FDOT requirements, but the city will not pursue lane transfers until FDOT clarifies what it will allow. Jonathan said the city remains committed to environmental components — adding about 110–120 native trees, installing bay-saver devices at outfalls to reduce runoff pollution and widened planting of native grasses — even if the sidewalk must be narrower inside state right-of-way.

Residents and staff also discussed traffic and truck routing: officials said the city wants to coordinate a safer truck route into downtown to reduce damage to curbs and improve safety without harming existing commercial operations.

Ending: City staff said they will pursue meetings with FDOT leadership, adjust engineering plans as required by the state permit process and continue to press for lower speeds, environmental stormwater devices and incremental pedestrian improvements consistent with FDOT constraints.