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County backs interlocal with Destin for US 98 pedestrian underpass; project seeks SS4A grant and surtax match

3759631 · June 11, 2025
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Summary

Okaloosa County approved an interlocal agreement with the City of Destin June 10 to support a proposed pedestrian underpass at the US 98 and Stallman Avenue corridor, positioning the city to apply for U.S. Department of Transportation SS4A grant funding and leveraging county surtax funds as a local match.

The Okaloosa County Board of Commissioners unanimously approved an interlocal agreement June 10 with the City of Destin to back a proposed pedestrian underpass at the intersection of U.S. 98 and Stallman Avenue.

Scott Bitterman of the county Public Works Department said the intersection is “the most capacity constrained intersection in the Destin area” with high pedestrian demand and vehicular delay. He told commissioners the underpass concept would reduce vehicle delay and significantly improve safety for pedestrians and bicyclists.

Larry Jones, Destin city manager, urged support and said the interlocal would ensure the city’s grant consultant can count on the county’s matching funds should the city secure a U.S. Department of Transportation Safe Streets and Roads for All (SS4A) grant. “This interlocal agreement puts us in a position that our consultant... can go forward with the assurance that the matching fund on this $20,000,000 grant will be in place at the appropriate time,” Jones said.

Cost and challenges: Staff noted the project estimate in the application package is roughly $20 million and that an earlier underpass in Walton County cost about $12 million before pandemic-driven cost escalation. Bitterman warned that right-of-way acquisitions at the intersection could be difficult because nearby commercial buildings, fuel tanks and other structures are close to the curb.

Board action and amendment: Commissioners approved the interlocal unanimously and accepted a commissioner amendment to allow flexibility on the exact project location along U.S. 98 near Stallman Avenue so design alternatives can be explored east or west of the intersection.

Next steps: The city will lead the SS4A grant application and county staff will coordinate right-of-way and design issues, with the interlocal positioned to provide matching surtax funds if the grant is awarded.