Mayor D.C. Reeves is asking the Pensacola City Council to approve a land donation agreement that would transfer city-owned property at 801 West Avery Street to Community Health Northwest Florida Foundation, Inc.—the nonprofit arm of Community Health Northwest Florida, which operates federally qualified health centers serving patients regardless of their ability to pay. Read CHNWF.
The agreement, drafted by Phelps Dunbar, LLP, conveys the property at no cost to the foundation, but it comes with significant strings attached designed to protect the public interest. For more background, read “Healthcare Coming to Former Baptist Campus.”
What the Foundation Must Do
Under the terms of the agreement, the foundation must renovate the property for use as a medical or dental clinic, spending no less than $850,000 on improvements. Renovation must begin within one year of closing and be completed within a year after that—giving the foundation roughly two years to have the facility open and operating.
- Once open, the clinic must operate at least 40 hours per week and offer services to patients of all ages, regardless of their ability to pay. The definition of “medical services” in the agreement is broad, covering primary care, urgent care, mental health counseling, pharmacy services, laboratory testing, radiology and preventive screenings. Dental services include everything from routine cleanings to orthodontics and emergency care.
Dig Deeper: The use restriction runs for 15 years and will be recorded in Escambia County public records as a Declaration of Restrictive Covenants, meaning it binds the land itself, not just the current owner.
Protections Built Into the Deal
If the foundation fails to meet its renovation deadlines and doesn’t cure the breach within 45 days of written notice, the city can demand the property back. The foundation would then have 90 days to reconvey the property.
- The city also retains a purchase option for the full 15-year restriction period. If the foundation ever wants to sell or transfer the property to a third party, the city gets first right of refusal for 120 days. The purchase price scales with time—50% of documented renovation costs if exercised within the first five years, 75% between years five and ten, and 100% after year ten.
Similarly, if the foundation violates the use restrictions and the city seeks to reclaim the property, the foundation is entitled to a payout based on the same sliding scale—protecting the foundation’s renovation investment even in a default scenario.
The mayor is also given flexibility to extend renovation deadlines—up to one year on the commencement deadline and six months on the completion deadline—without requiring City Council action.
The Bigger Picture
The West Avery Street corridor has long been identified as an underserved area of Pensacola, especially since Baptist Hospital left the neighborhood in September 2023. Community Health Northwest Florida already operates multiple clinic locations across Escambia County, and this expansion would bring healthcare access deeper into the urban core.
- The Pensacola City Council is expected to take up the recommendation at its April 9 meeting.