Panama City conditionally approves sale concept of former nursing‑home site at 1937 Jinx Avenue for $2.8 million

The Panama City Commission on July 8 approved in concept a staff recommendation to sell the former nursing‑home site at 1937 Jinx Avenue to the site's lessee for $2,800,000, with staff instructed to return with a purchase agreement and deed restrictions before closing.

City staff told commissioners the lessee holds a 20‑year lease that began in 2010, with an option for an additional 10‑year renewal that would extend to 2040. The lease specified a monthly payment of $10,000 for the first 20 years and $17,500 per month if the renewal option is exercised. The nursing home was destroyed by Hurricane Michael; the lessee says expected insurance proceeds fall short by about $7 million of the amount staff says is needed to rebuild the facility.

"Staff recommendation is that the commission approve the sale of this site at 1937 Jenks Avenue for the sum of $2,800,000," a staff member said during the discussion. The commission approved the concept 5‑0; staff noted they will prepare a purchase contract and an agreement that will include deed restrictions requiring rebuild obligations and remedies if the facility is not rebuilt.

An appraisal attached to the commission packet placed the site's unimproved value at $810,000, and commissioners noted the proposed sale price is above the appraised unimproved value. Staff also said the anticipated $2.8 million sale proceeds would be used in balancing the fiscal year 2026 budget.

Commissioners asked about consequences if a new nursing home is not rebuilt; staff responded that the purchase and deed‑restriction documents being drafted will address those remedies. The commission took the concept approval to allow staff to complete the legal documents and return for final consideration.