CRA discusses using Defense Infrastructure grant to acquire land for military‑family housing

Anna Kate, a city staff member, told the CRA the city was awarded a Defense Infrastructure grant to acquire property between NAS Pensacola and downtown to develop affordable housing for military families. The grant requires a 30% local match; the CRA previously approved a $182,000 match, bringing the project's funding requirement to roughly $790,000. The grant deadline for expenditure is June 30, 2027.

Staff identified a two‑parcel site at 639 West Gregory Street (a combined area slightly over one acre) as a potential acquisition target. The parcels are appraised at $730,000 (January appraisal) and currently sit in an urban‑core zone allowing the proposed use; state‑led monitoring of prior underground storage tanks is ongoing but staff characterized that site as "not as scary as the ACW site."

If the board signals interest, staff proposed initiating purchase conversations with the owner this spring and returning to the CRA with an acquisition and disposal plan; the grant also imposes a five‑year commitment period that begins after closing. Anna Kate said the program only requires the city to build at least one unit to meet grant obligations, leaving flexibility on how the remaining development is solicited (townhomes, multifamily, or townhomes). Board members discussed market value, negotiation strategy, and whether the CRA would be responsible for construction or would rely on developers to build units meeting the grant’s terms.