Panama City planning board denies rezoning request for Bay Oaks parcel near Michigan Avenue

The Panama City Planning Board voted 4-1 on a motion to deny a small-scale land-use amendment and rezoning request for 2414 Michigan Avenue, a parcel owned by Bay Oaks Village MHP Inc.

The board heard the rezoning request — to change the parcel from Public Institutional to Mixed Use-3 (MU-3) — at its public meeting after staff recommended the zoning change to better align the lot with adjacent mixed-use parcels. Planning staff described MU-3 as permitting neighborhood-scale commercial uses and noted the parcel is no longer associated with the former church that previously occupied it.

Applicant Scott Helms, who identified his address as 2414 Michigan Avenue, told the board he planned “either small warehouse, flex space, or town homes” and said he had preliminary drawings for a warehouse. Planning staff clarified MU-3 allows neighborhood-scale commercial uses and that warehousing is typically directed to GC-2 zoning.

Nearby property owners spoke against the change. Robin Morrison, who gave her address as 3900 West 24th Street, said she opposed the amendment because it “mainly adds multifamily apartments and condominium units,” and she worried such development within 300 feet would “lower the value of surrounding properties.” Morrison also said she feared the parcel could later be redeveloped into “dirty rundown housing.” She asked the board to deny the request.

Staff and the applicant answered questions about adjacent zoning and permitted uses; staff said the MU-3 recommendation was based on surrounding MU zoning to the north rather than the presence of an existing automotive building to the south. Board members also noted two emails from nearby property owners had been entered into the record in opposition.

After public comment, a board member moved to deny the rezoning. Roll call showed a 4-1 vote in favor of denial; one member voted no. The board did not adopt any alternative zoning or conditions during the vote. The denial means the parcel will remain under its current Public Institutional designation unless the owner pursues a new application or a future rezoning process.

The action was final at the planning board level; the transcript indicates the item will proceed according to normal permitting channels if the owner pursues other paths. No formal appeal or further plan approval was recorded at the meeting.