Commission approves sale of 1937 Jinx property to local lessee with option to repurchase

The Panama City Commission voted unanimously on Aug. 12 to approve a purchase agreement selling city-owned property at 1937 Jinx to the current lessee, 1937 Jinx LLC, for $2,800,000.

City attorneys told commissioners the buyer plans to invest substantial private funds — staff described a roughly $7 million reconstruction estimate in addition to insurance proceeds already received — to replace the preexisting nursing-home use. The purchase contract requires the buyer to construct a nursing facility of approximately the prior 120-bed scale within a five-year period; if the buyer cannot build at that site they must instead construct a nursing home at an alternate Panama City site, per the agreement.

The staff report and the contract addenda clarify timing and payment mechanics: the buyer will apply insurance proceeds to construction, title insurance expenses were allocated in the draft contract, and calendar days govern several timing windows. The city retains, but is not required to exercise, a repurchase option if the buyer fails to meet agreed milestones; the draft addendum would allow the city to buy back the property at the buyer’s purchase price (subject to a 5% increase spelled out in the contract language) though commissioners debated the effect of that term.

City Attorney’s office staff and the buyer’s representative signed the agreement by the time of the meeting. Commissioners directed staff to close and execute the closing documents and to return any required final paperwork before the end of the fiscal year. The motion passed on a 5-0 roll call.

Supporters framed the transaction as a way to incentivize private investment to rebuild a long-standing care facility that needs substantial repair; staff said the contract was drafted so the buyer bears reconstruction cost and risk, while the city keeps an option to reacquire the site if commitments are not met.