Panama City commission authorizes bids for 50 wet slips, votes 3-2 to use recovery line as interim funding

The Panama City Commission on Dec. 1 voted 3–2 to authorize city staff to issue bid documents for construction of the first 50 wet slips at the downtown marina, using the city's $150 million Hurricane Michael recovery line as the source of interim funding.

The motion, approved by Commissioners Street and Lucas and Mayor Branch, directs staff to prepare procurement documents while continuing to pursue FEMA reimbursement, other grants and potential public-private partners. Commissioners Hughes and Granger voted against the bid authorization, citing concerns about long-term debt and clarity on repayment sources.

Why it matters: The downtown marina has been largely inactive since Hurricane Michael in 2018. Residents and business owners told the commission they want the marina restored as a public amenity, while others warned that upland commercial development could reduce public access and increase costs for residents. The commission's decision clears the path to solicit competitive bids for construction while the city works to firm up financing and completes community charrettes to determine upland uses.

City Marina Partners (CMP) presented Term Sheet 6 during the meeting. CMP's representative, William Harrison, told the commission the company could begin work on the wet slips once the city issues a development order and noted that marinas typically require upland revenue to cover operating losses. "Wet slips cannot stand on their own. They're going to be a loss," Harrison said, explaining that the project model pairing wet-slip construction with upland infrastructure and development is intended to reduce the city's long-term subsidy.

Harrison described approximately $10 million in upland infrastructure needs, saying the commission had indicated roughly $5 million of that could come from FEMA-eligible reimbursement and that CMP would be responsible for the remaining $5 million in his term sheet proposal. CMP said the city would procure major construction items to reduce sales-tax exposure and that the arrangement would include an exit ramp if public charrettes resulted in no upland development.

Public comments were strongly mixed. Sandy Marlisa, who reviewed the city's PFM financial memo, warned that the PFM analysis explicitly ties downtown marina upside to upland commercial development: "The upward financial potential for the Downtown Marina beyond the current projections may be limited if the Downtown Marina uplands are not further developed," she said, urging the commission not to selectively apply the PFM findings.

Other speakers urged the city to prioritize public access and modest marina-focused amenities rather than large investor-driven upland projects. Bob Zillow II and other longtime residents framed the marina as a heritage asset that should serve local fishermen and families rather than being transformed into a high-rise development.

Commission debate centered on funding trade-offs and timing. Some commissioners favored using the $150 million recovery line to expedite the first 50 slips, arguing the city already budgets the interest expense and can pursue reimbursement. Opponents warned that borrowing without a defined payback plan risks future rate increases or tax pressure.

Votes and formal actions at a glance: - Approval of Nov. 10 meeting minutes: passed, 5–0. - Motion to accept Term Sheet 6 (subject to charrettes and long-term agreement): failed, 2–3. - Motion to issue bid documents for the first 50 wet slips using the $150,000,000 Hurricane Michael recovery line as the source of interim funding: passed, 3–2 (Commissioners Street and Lucas and Mayor Branch in favor; Commissioners Hughes and Granger opposed).

What comes next: City staff told the commission they expect to have full design drawings and bid specifications in mid-December and aim to advertise bids in January, with a possible commission recommendation on bids in March. Staff will also continue work on charrettes to determine upland uses and pursue FEMA and other funding options for reimbursement.

Quotes: "Wet slips cannot stand on their own. They're going to be a loss," William Harrison said, explaining the financial rationale for pairing slips with upland revenue. "The upward financial potential ... may be limited if the Downtown Marina uplands are not further developed," Sandy Marlisa said, urging the commission to treat the PFM report as a comprehensive justification. "We need to start putting back the four amenities," Jennifer Vigil, president and CEO of Destination Panama City, said of the city's tourism infrastructure.

The commission asked staff for a December 16 report on bid timing, permitting requirements and the potential impacts of the action on CMP and the city's agreements with Saint Joe. The meeting adjourned after brief housekeeping and scheduling remarks from staff.