Panama City CRA board directs staff to pursue sale of 447 Harrison Avenue, retain pedestrian easement

Panama City’s Community Redevelopment Agency board voted Jan. 27 to authorize staff to pursue negotiations to sell 447 Harrison Avenue — known as the Downtown Breezeway — while preserving a permanent pedestrian easement for the public walkway.

The board’s vote follows a request from the Downtown Improvement Board that the CRA stop further renovation spending and instead sell the building in its current state, keeping the pedestrian connection in place. The CRA has already completed a public walkway and some facade improvements; staff provided cost history and construction estimates during the discussion.

The decision matters because staff reported both prior expenditures and future budget impacts: staff said the CRA has spent about $48,103 to date on the breezeway’s cleanup and walkway work, has been invoiced roughly $31,998.75 for design and engineering, and holds a construction estimate of $483,148 for the current 90% plans. Board materials showed a two‑year project budget of $625,000, with $250,000 budgeted in the current fiscal year and $250,000 proposed in fiscal year 2026. The board also discussed that the property was originally acquired via a property swap with an estimated combined value around $500,000 and that the city has invested roughly $80,000 so far in acquisition and improvements.

Downtown Improvement Board Executive Director Maria Williams told the CRA the walkway purpose has been achieved and that private owners could complete any remaining build‑out more quickly than the city, while the city should retain the permanent easement to protect pedestrian access. A staff speaker provided the financial figures cited above. A staff member and legal counsel advised several options for protecting the walkway: (1) sell the property but reserve a recorded easement, (2) include restrictive covenants allowing the city to reacquire the property if the buyer fails to meet obligations, or (3) use a long‑term lease that obligates the lessee to build and maintain public restrooms and preserve the walkway. The board asked staff to obtain an appraisal before negotiating and to draft an RFP or lease template for the board’s review.

Board members debated whether requiring a buyer to complete restrooms or other build‑outs would discourage offers; several members said they preferred selling but reserving the easement and working with the Downtown Improvement Board and local businesses on stipulations. The board approved the motion unanimously.

Next steps: staff will seek an appraisal to inform negotiations, coordinate with the Downtown Improvement Board on desired conditions (for example, whether public restrooms should be required), prepare a draft request for proposals or lease, and return the recommended transaction for final CRA approval at a future meeting.

Votes at a glance: a motion to authorize staff to negotiate sale of 447 Harrison Avenue with a reserved pedestrian easement and to return a draft RFP and appraisal to the board (mover: not specified; second: not specified) passed on a roll call vote, 5‑0 (Board members Halligas, Lucas, Granger, Street and Chairman Rowan voting yes).