Panama City commissioners weigh marina lease, uplands and phased approach to reopen downtown marina

Panama City commissioners spent a lengthy workshop discussing a draft downtown marina lease with Capital Marina Partners and a PFM financial review that found marina operations could produce returns “just under 9%” under current assumptions.

The discussion focused on whether to limit a partnership to rebuilding wet slips, a ship store and fuel terminal, or to include the uplands (the waterfront land between Government Street and the water) in a ground lease. Commissioner Jonathan Hughes, who led the presentation, said the choice will determine whether the city prioritizes immediate public access improvements or seeks larger long-term revenue from upland development.

The PFM consultant, Kevin Plensler, said PFM reviewed CMP’s marina financial model and built a sensitivity analysis. “From a net operating income standpoint, we bridled it out to approximately 12 to 13 years,” Plensler said, and estimated an internal rate of return “just under 9%,” moving up to about 12% under more favorable rental or occupancy assumptions. Plensler and other presenters said PFM did not analyze upland development economics; their review focused on marina (wet slips) operations.

Commissioners and staff described existing constraints and project pieces already in place:…