Panama City commissioners debate using roughly $5 million of FEMA funds for marina improvements or Martin Theater contingency

Panama City commissioners and staff spent a lengthy workshop discussion weighing whether to allocate roughly $5 million in FEMA-eligible funds to the downtown Panama City Marina or to add contingency and cover change orders for the Martin Theater complex (the Martin Theater, the Ritz building and the Tennessee House).

The question came into focus after consultants and staff presented three options that reallocate remaining FEMA funding after the larger projects have been funded. Olivia Schmidt of the Integrity Group summarized the options and the available totals, saying the city had about $4.989 million readily available and “potentially to go up to the 5.1” million depending on final scopes and costs.

Why it matters: Commissioners repeatedly said they wanted to avoid surprise local cost increases and legal exposure while also not undermining momentum on two high-profile downtown projects. The Martin Theater project has active contracts and recent change orders; staff and the contractor said much of the procurement and many materials are already committed, while other commissioners urged options to contain further escalation and preserve a viable marina redevelopment package.

Most important facts - Two competing priorities: finish and protect the Martin Theater project from additional cost escalation, or reserve about $5 million for marina uplands infrastructure (utilities, promenade, railing and other site work) to support a private marina partner and upland redevelopment. - Staff and the construction team said a large share of the Martin contracts and materials are already purchased. Jared and other staff estimated the project is largely bought out; staff repeatedly described the next round of potential change orders as a mix of items that are likely FEMA eligible and a small local cost share. Schmidt said most recent estimates show about 90% FEMA reimbursement and roughly 10% local share for the change orders under review. - Commissioners asked for clearer, line‑by‑line estimates before a final vote. Mayor Branch and…