Mayor Reeves Addresses Palafox Project Timeline and Business Owner Concerns

At his weekly press conference this morning, Pensacola Mayor D.C. Reeves addressed mounting questions about the Reimagined Palafox project, emphasizing that critical meetings this week will determine the path forward.

Background: Reimagining Palafox is a $10.3-million streetscape transformation focused on improving safety, walkability, and aesthetics across the four blocks between Garden and Main streets. Designs include narrowing car lanes, widening sidewalks, and incorporating enhancements such as mid-block crossings, pervious pavers, and planting 51 new canopy trees for a net positive.

Key Meetings Scheduled

The mayor outlined an intensive schedule of discussions beginning Tuesday with the winning contractor, Site Utility, followed by meetings with property owners on Wednesday and lessees on Thursday.

  • “We haven’t even had our first meeting with Site Utility yet,” Reeves explained. “We have obviously a long list of questions for them in terms of process and procedure.”

As a former small-business owner himself, Reeves expressed sympathy for the anxiety downtown businesses are experiencing over street closures. However, he stressed the importance of gathering complete information before making commitments.

  • “I want to deal in facts,” the mayor said, noting that specific concerns about construction methods and timelines are premature until after conversations with the contractor. “There’s conversations of feelings, and there’s also conversations of fact.”

Project Origins and Options

Reeves reminded the public that the project originated from a necessary repair situation. The city faced a multi-month closure simply to repair utility cuts, with no additional improvements. This led officials to explore whether a more comprehensive upgrade could be achieved during an inevitable closure period.

The debate centers on the difference between a 60-day basic repair project and a five-month comprehensive improvement project that includes safety enhancements, stormwater management, and aesthetic upgrades. The winning bid proposes a single-phase “rip the band-aid” approach rather than a two-phase construction spanning nearly a year.

What’s Been Committed

No contracts have been signed. The award of a bid to Site Utility does not constitute a contract, and the RFP process includes flexibility for adjustments within certain parameters. However, Reeves stated that major value-engineering changes would require a return to the bidding process entirely.

  • The city has already committed to several business support measures identified in previous meetings, including free parking, completion bonuses, and a $100,000 allocation for public relations and communications during construction.

Next Steps

Following this week’s meetings, Mayor Reeves promised to share more detailed information with both business owners and the public. The focus will be on obtaining granular details about construction timelines, phasing, and specific impacts on different blocks.

  • “The lion’s share of my week is on getting us to a determining factor of where this project is going to go,” Reeves said.

Palafox Business Owners’ Concerns

At the Pensacola City Council meeting last Thursday, several downtown business owners described themselves as “legitimately scared” and worried the disruption could be “the nail in the coffin” for struggling post-pandemic businesses. One owner noted that 60% of their annual business occurs during the construction months.

Construction Timeline and Timing: The extended 26-week closure (January-June) falls during critical retail periods, including Spring Break, Easter, and Memorial Day. Owners referenced FPL utility work that took less than three weeks, after which businesses realized it was unsustainable, raising alarm about a six-month closure.

Threat to Local Character: Merchants warned the disruption could lead to “shuttering of longstanding businesses” and their replacement by chains or outside developers, eroding the unique local character that defines Palafox Street.

Parking Crisis: Owners emphasized that parking—not sidewalks or pedestrians—is downtown’s real problem. The project will eliminate approximately 22 prime parking spots on Palafox, with owners calling parking the “pink elephant in the room” that already deters customers. They believe the free parking on the surrounding streets won’t adequately compensate.

Questioned Necessity: Several owners suggested alternatives, particularly using the $3 million allocated by Florida Power to simply repave the road rather than pursuing the full $10.3 million transformation. Some questioned the value of widening sidewalks by only six inches when customers aren’t complaining about sidewalk size.


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Author: Rick Outzen

Rick Outzen is the publisher/owner of Pensacola Inweekly. He has been profiled in The New York Times and featured in several True Crime documentaries. Rick also is the author of the award-winning Walker Holmes thrillers. His latest nonfiction book is “Right Idea, Right Time: The Fight for Pensacola’s Maritime Park.”