Following lengthy public comment and staff briefings, the Panama City Commission on Sept. 23 voted to pursue a FEMA funding option that officials said would likely make approximately $5 million available for the downtown Panama City Marina project and related priorities.

Background and the FEMA change

City staff told the commission that FEMA recently approved a revised cost estimate and obligated an additional $8.9 million for PW 2202 (the downtown marina project), increasing the total FEMA obligation for that project to $22,460,000 (up from an earlier total reported in staff materials). City staff and the independent consultant Integrity Group presented three funding options for how to use the increase to reduce the city’s share of reconstruction costs and to preserve funding for the Martin Theater rebuild.

After discussion the commission voted to select option 2, described in staff materials as the approach that preserves funding for the Martin Theater while maximizing funds available for marina work. Commissioner motion to accept option 2 passed 5-0.

CMP term sheet, conduit financing and next steps

City Attorney Nevan Zimmerman and staff briefed the commission on talks with City Marina Partners (CMP). Zimmerman said a draft term sheet describes a comprehensive proposal for both the wet slips and uplands and that conduit financing — debt carried by a private developer or conduit but not the city’s general obligation — is a legally available financing tool. The city’s advisors indicated conduit financing could support roughly 70% of wet-slip costs in the right circumstances; additional details and underwriting remain to be developed by financial advisors and bond counsel.

Commission direction: PFM and public charrettes

The commission also voted 5-0 to hire PFM (Public Financial Management) to perform two analyses: an independent viability study of the 200-wet-slip marina plan and a separate financial analysis of potential uplands development. Commissioners additionally asked staff to plan a series of public charrettes (city-led design workshops) so residents can review conceptual upland alternatives and provide feedback; staff said it would propose dates and a scope for the public-engagement process and return to the commission with a scope and schedule. Commissioners indicated they want public participation and independent verification of cost and revenue assumptions before approving any uplands development or lease agreement that would grant a developer long-term rights to city property.

Public reaction

Public commenters were mixed. Supporters of keeping the marina as a working waterfront urged prioritizing slips, fuel and ship-store functions rather than extensive residential uplands. Some residents and preservation advocates warned against large-scale upland residential or commercial development on the waterfront, saying public access and the working-waterfront character should be preserved. Developers and CMP representatives argued that a combined wet-slips plus selected uplands approach provides the revenue necessary to fund public infrastructure improvements.

Why it matters

The commission’s decision commits the city to continue negotiating financing and project terms and to conduct public engagement while preserving funding for other high-priority recovery projects. The staff-directed PFM review and charrettes will be used to test the assumptions in the CMP term sheet and to inform any future lease or development agreement.

What’s next

Staff will send a written notice to FEMA as needed to formalize withdrawal or reassignment of HMGP (hazard-mitigation) scope items as previously discussed; the city attorney said staff will provide a written record of the decision to FEMA. PFM will be retained to produce a scope of work and budget for the two studies and staff will schedule the charrettes and return with a recommended timeline and cost estimate.