Commission approves Martin Theater change orders; project increases for FEMA‑eligible work

Panama City commissioners on July 22 approved a series of change orders for the Martin Theater renovation that cumulatively increase the original contract sum by $252,775.13 for items staff says are eligible for FEMA reimbursement. The project contract with Burke Construction for the Martin Theater complex had an original stipulated sum of $32,985,802. City staff presented a summary of changes: individually small additive and deductive items that together produced a net increase of $252,775.13 for the federally‑funded portion of the project. Staff said the change orders cover items discovered during demolition and reconstruction, including deeper foundation piles, elevator specifications and fire curtain replacement, and that the work is expected to be reimbursable by FEMA and donor funding. Commissioner Street registered a ‘no’ vote, citing concerns that several items in the change orders appeared to reverse prior value‑engineering reductions and that further documentation (geotechnical reports and detailed value‑engineering rationale) should be provided. Other commissioners said change orders are common in retrofit projects where unknown conditions appear once work begins, and cited the project’s federal funding structure and a tax‑savings arrangement (owner‑direct purchases) that will be reconciled at final closeout. City staff and the contractor representative explained several technical reasons for cost increases: deeper helical piles where torquing targets were not met, replacement of a fire curtain with evidence of previous heat damage, and tariff/price escalations for specialized equipment such as elevators. Staff said most change-order costs are FEMA‑eligible and will be paired with donor funds and tax‑savings credits applied at final reconciliation. The motion to approve the change orders passed 4-1. The city manager and staff will continue to provide requested documentation to commissioners about the engineering and value‑engineering conclusions and will reconcile tax‑savings credits during final project closeout.