Commission approves sale of 1937 Jinx to local lessee; buyer commits to rebuild nursing home

The Panama City Commission on Aug. 12 approved a purchase agreement for city-owned property at 1937 Jinx, accepting a $2,800,000 offer from the current lessee (listed in meeting materials as 61937 Jinx LLC) and authorizing the mayor to execute closing documents.

City attorneys told the commission the buyer — the property’s existing lessee — has committed to construct a nursing home on the site within the contract timeline, and that the purchaser would apply insurance proceeds already received to rebuilding. The purchaser told staff it expects to invest roughly $7 million beyond insurance proceeds to rebuild, and the contract includes an addendum obligating the buyer to build a nursing facility of approximately the prior capacity (about 120 beds) within the agreed timeline.

Under the addendum the city will pay for title insurance at closing and the purchase contract includes an option (not an obligation) for the city to repurchase the property if the buyer fails to construct the nursing home within the specified time. That repurchase option is keyed to the purchase price and includes a 5% adjustment in the city’s favor if exercised. City staff said the repurchase clause is intended to remove a later dispute about market value and to preserve the option to ensure a nursing home is built on the site.

City attorney presentation described other key contract terms: the buyer will file insurance benefits and apply them to reconstruction; the buyer will have specified deadlines (including a five‑year build requirement) to complete a replacement nursing facility; and if the city elects to exercise the repurchase option the buyer will assign any permits and architectural work to the city.

Commissioner Hughes, who reviewed the contract terms, voiced concern about language that would allow payment to the seller if a buyer failed to perform, and asked staff to make sure the repurchase structure does not create a perverse incentive. City attorneys said staff revised the contract language to clarify business days, shorten some inspections deadlines so transactions could fit the fiscal year, and to specify title and closing cost allocations. With those changes the commission approved the sale by roll call, 5-0.

What this means: The lessee is authorized to close on the purchase, with the buyer agreeing to rebuild a nursing facility on the site and to use insurance proceeds toward that purpose. Staff will complete closing documents and carry out title and deed work; if the buyer fails to perform the city retains a repurchase option. No construction contract or building permit for the facility was approved at the meeting; those matters will go through normal permitting and procurement channels.

Action at a glance: Sale of 1937 Jinx — approved, vote 5-0. Staff to finalize closing and provide any further documentation required by the commission.