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Commission accepts FDOT rails-with-trails planning grant; Beach Drive path design and costs draw public scrutiny

3280804 · May 14, 2025
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Summary

The commission authorized acceptance of a $405,000 FDOT planning grant for a rails-with-trails project and approved a budget amendment; public commenters and commissioners questioned evolving cost estimates and whether FDOT design standards or a road transfer would change the Beach Drive multi-use path design.

Panama City commissioners voted May 13 to accept a $405,000 FDOT planning grant for a "rails with trails" project that includes segments connecting Hathaway Bridge to Michigan Avenue and continuing along key corridors, and approved an accompanying budget amendment using infrastructure surtax funds as the local match.

The grant will fund planning up to 30% design for three phases: Hathaway Bridge to Michigan Avenue; Michigan Avenue to State Road 77/MLK/US-98 West Beach Drive; and Frankford Avenue to the end of the pavement. Staff said the project aims to improve pedestrian and bicycle commuting links to colleges, schools, parks and downtown destinations.

Public comment at the meeting focused on project cost escalation and design transparency. Commenter Hank Pickett, who has tracked the project's budget and design, said he had received a new construction-cost estimate of roughly $7.5 million that did not include design costs and argued the city had already spent between about $1 million and $1.5 million on design efforts; he asked for reconciliation between early grant estimates and more recent figures. Commissioners and staff acknowledged the pre-design opinion of probable construction cost submitted during the grant application process was a preliminary estimate with high contingencies; staff said up-to-date cost estimates and scope adjustments will follow FDOT review and any required redesign if the transfer of the state road is not completed.

Commissioners also asked whether FDOT design standards (and possible stricter requirements) would force changes to the Beach Drive design if the state retains road ownership, and whether lane widths and right-of-way constraints could require plan changes. Staff said the grant and original design work preceded any road-transfer discussions and reaffirmed that the project can proceed with FDOT-issued right-of-way construction permits even if the road is not transferred to the city; staff said they are working with FDOT to reconcile lane-width and right-of-way issues and will update the commission.

The commission approved the grant acceptance and later adopted the budget amendment and related resolution by unanimous votes.