Panama City reviews three FEMA funding paths for Martin Theater, downtown and St. Andrews marinas

Panama City commissioners spent more than two hours on Aug. 26 reviewing options for roughly $40.6 million in additional FEMA disaster recovery funds tied to several hurricane Michael projects, but made no final decision.

Disaster-recovery consultants from the Integrity Group outlined three broad funding paths for $40.6 million in newly obligated money — including an additional $8.9 million for the St. Andrews marina infrastructure project — and warned each path has tradeoffs for project timing, eligibility for mitigation funds and long-term city debt. Commissioners asked staff and consultants to return with clearer funding plans and partner agreements before taking a vote at a future meeting.

Why it matters: The city is already committed to two major rebuilds — a $32 million reconstruction of the Martin Theater complex and a roughly $12.9 million set of bulkhead repairs at the St. Andrews marina — and the new FEMA adjustments create both an opportunity to reduce city borrowing and a risk of losing some federal money if projects are altered improperly.

Consultants Olivia Schmidt, senior vice president of program services for the Integrity Group, and CEO Gary Yates walked the commission through FEMA program types (including FEMA policy commonly referenced as "428" projects, standard non-428 projects, and hazard mitigation funding sometimes called HMP/HMGP) and how those program rules affect whether…