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Pensacola workshop lays out $10.5M "New Palafox" proposal; council presses staff on parking, phasing and business impacts
Summary
City staff presented technical details of the "New Palafox" streetscape and stormwater project — including 1,700 feet of new storm pipes, 46 ADA ramps, 42 new trees and 19 lost on‑street stalls — and outlined a Jan. 5, 2026 start with a May 24 incentive completion date. Councilmembers and downtown business owners pressed for clearer cost/time trade‑offs and alternatives that would reduce business disruption.
City staff and the mayor outlined the "New Palafox" roadway and streetscape plan at a Pensacola City Council workshop, presenting stormwater, accessibility and public‑space improvements while councilmembers pressed for more precise cost and phasing options and downtown business owners urged clearer parking mitigation.
Adrienne Walker, the mayor’s strategic initiatives project officer, told the council the proposal focuses on stormwater and accessibility upgrades with aesthetic additions. "That pipe, the new pipe, will capture 93,000 gallons of stormwater, which equates to about 1 inch of standing water throughout the entire project area," Walker said, adding the work includes 44 new drainage structures, over 1,700 linear feet of pipe, 46 ADA curb ramps, and a net gain of more than 12,000 square feet of pervious surface.
Walker said the project also includes safety and placemaking features: reduced crossing distances (by up to 16 feet), four elevated mid‑block crossings with a rumble pattern, 28 litter receptacles, 18 benches, 24 dedicated bike parking spaces, and a 2,000‑foot segment of the America’s First Settlement Trail. She said the city has not invested significantly in Palafox stormwater infrastructure since 1999.
Staff explained the bid and schedule: bids opened Oct. 10; Site and Utility LLC was identified as the low, responsible bidder for the base (single‑phase) bid; the notice of intent went out Oct. 14 with no protests. Walker said the contract would include an incentivized completion date of May 24, 2026 (a 10% bonus if met) and that liquidated damages of $1,000 per day would begin after July 4 if the main phase were not complete. If council approves the project next week the city would sign the contract and could commence construction Jan. 5, 2026, staff said.
Councilmembers focused on three recurring concerns: design and historic identity, the loss of on‑street parking and the economic impact on small businesses during construction, and whether a smaller scope (mill-and‑overlay or FPL‑only work) could meet urgent stormwater needs with less disruption. Councilmember Breyer pressed staff on the round visual features at intersections, saying the look may not match Pensacola’s historic fabric; Brad Heiner, the city engineer, said the circular elements were chosen with the landscape architect to reduce vehicular speed and are not true roundabouts.
Business impacts and parking dominated public comment. Several downtown owners and representatives urged the council to present three clear alternatives with firm cost and time estimates: (1) road‑only repairs, (2) road plus drainage/ADA work, and (3) the full mayoral streetscape vision. Public speaker Wes Rosier said: "Our concern is our customers coming downtown... The concern is the parking." Staff noted the project will remove 19 on‑street spaces on Palafox (115 total on‑street spaces between Main and Garden today) but add four elsewhere and provide some temporary and free parking strategies during construction.
Councilmembers asked whether incentive funds (roughly $768,000 in the 10% contractor bonus) could be repurposed as rent relief for impacted lessees. Walker said staff has discussed a program with the Downtown Improvement Board (DIB) and finance, but several council members requested a formal legal opinion about which funds may be used in that way and whether bonded CRA funds would be allowable for rent relief.
On phasing, staff said the base contract is single‑phased, but the contractor proposed an "accordion" sequencing to start from both ends and move inward so some blocks could reopen sooner. Staff argued demolition and stormwater work would be required in any scenario and that a single, comprehensive approach could avoid repeated utility cuts and recurring disruptions to businesses.
Staff also addressed cultural‑resource protections: Walker said an archaeologist will be on site during ground disturbance, following the city’s archaeological policies, and that recovered artifacts could be coordinated with local museums and the UWF Historic Trust. On ADA concerns, the city engineer said the specified pavers will be installed to meet ADA standards as part of construction inspections.
The workshop closed with a reminder that the CRA will consider funding reallocations next Monday and the council is scheduled to vote at its regular meeting on the 13th. No formal action was taken at the workshop.
The council will next consider funding and legal counsel guidance, and staff said communications and a dedicated downtown project team will continue outreach to businesses and residents as the city moves toward a vote.
