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Utility undergrounding Phase 1 reaches 25% construction; planning underway for additional phases
Summary
Contractor has installed conduit and equipment placement is substantially complete on the north side of Highway 98; city staff and consultants outlined timing, permitting and potential funding sources for future phases.
Construction crews have completed significant work on Phase 1 of Destin’s utility undergrounding project on Highway 98, city staff and project manager Stephanie Lindsay reported at the March 3 council meeting.
Phase 1 progress: "As of January 29, the project's total construction was at 25 percent complete," Lindsay said, adding that conduit on the north side of Highway 98 between Beach Drive and the bridge is installed and equipment placement was approximately 95% complete. She also said the contractor resumed work after a late‑January pause once communications carriers supplied materials and DOT permits.
Why it matters: The multi-phase program will relocate electrical and communications lines underground and install new street lighting, a work intended to reduce storm vulnerability and improve the corridor’s resiliency and aesthetics. The timing of lane closures and DOT coordination will affect traffic during the peak tourist season; the project team estimates work on the Phase 1 section should finish late this summer.
Funding and next phases: City staff told council there is roughly $800,000 in electric franchise fees currently available for design of the next phase of undergrounding, and about $500,000 per year may be available thereafter. The city manager said market financing could generate about $8 million now — roughly half the cost to fund a new phase — and the city intends to pursue state resiliency grants and other external funding to accelerate work.
Council questions and next steps: Council members pressed the project team to coordinate work schedules to avoid heavy tourist periods and to confirm whether nighttime work would be permitted; Lindsay said night work is possible if requested. Staff also said design and estimate timeframes for future phases would be approximately one year.
Ending: Council directed staff to continue coordination with FPL, DOT and communications carriers and to present cost estimates and phasing options for Council consideration as engineering designs advance.
