Pensacola City Council on Sept. 11 approved leases to place pallet modular shelters on city property for transitional housing, awarding one site to Reentry Alliance Pensacola (REAP) and another to Ofentive Corporation following public comment and multiple amendments to the lease terms.

The council adopted changes proposed at the meeting that set a monthly cap on occupant charges and added oversight measures. The amendment (section 6(e)) limits occupant fees to the lesser of $375 per month or 25% of the occupant’s gross income; pro‑rata calculations apply for stays shorter than a month. Council also required annual updates from the non‑profit lessees to city staff and council on program performance, and it shortened REAP’s original 15‑year lease term to an initial five‑year term with the possibility of two subsequent five‑year renewals; the council required that any renewal come back to council for approval.

Why it matters: The pallet shelters are intended as transitional housing to help reduce street homelessness; approvals include conditions intended to ensure supportive services and city oversight. Council members and public commenters pressed for stronger accountability and safeguards for people with disabilities and older residents.

Key details of the leases and debate: Several public commenters, including former councilmembers and advocates, urged shorter lease terms, stronger assurance of on‑site supportive services and more oversight. Jewel Canada Wynne asked the council to prefer shorter terms (she recommended five years with an option to renew). Former Councilwoman Sherry Myers urged protections for people with disabilities and said she had previously observed evictions without due process under other local programs.

REAP’s public representative (referred to in the meeting as "Mr. Webb") said the program would provide case management staff and on‑site shared hygiene units; REAP committed to providing the hygiene trailer and to insuring it. City staff said the leases require the lessee to demonstrate on‑site support services and specific partnering agencies before any pallet shelters are delivered.

Council amendments and outcome: Councilmember Patton moved amendments requiring the fee cap and annual reporting; Councilmember Baer moved to change REAP’s lease term to five years with two five‑year renewals subject to council approval. Both amendments passed; the final motions approving the leases as amended passed on roll call (final vote recorded as 7–0).

Ending: Council supported the pallet‑shelter program with added conditions intended to limit charges to occupants, require evidence of supportive services before placement, and provide periodic council review and reporting. The leases require the lessee to return the units to the city if the contract is defaulted.