Panama City commissioners weigh long-term lease for downtown marina amid public-access and financing questions

Commissioner Hughes, Mayor and city staff discussed a proposed long-term ground lease with Capital Marina Partners (CMP) to redevelop the downtown Panama City Marina and the boat ramp, with consultants saying the marina-only finances are tight and commissioners pressing for firm public-access guarantees and a public workshop.

Why it matters: commissioners said the commission previously directed staff to hire PFM for a financial review after CMP proposed a downtown marina lease; the redevelopment would rebuild slips and related upland amenities and could transfer construction and operational risk to a lessee, but commissioners raised questions about financing, length of lease and what uses the lessee could put on the uplands.

PFM consultant Kevin Plenzler told the commission his analysis of CMP project showed a likely internal rate of return "around just under 9%" based on the marina (wet-slip) assumptions, rising to roughly 12% in more favorable scenarios. Plenzler said PFM did not model upland development in its work: "We haven't done an upland analysis. We haven't seen a development program or development plan that would detail what would occur." (Kevin Plenzler, PFM.)

Commissioner Hughes, the lead presenter on the item, summarized options the…