The City of Pensacola sent shockwaves through local government circles last Friday when it formally demanded $2,448,905 from the Escambia Children’s Trust, asserting its claim that tax increment financing (TIF) revenues generated within the city’s Community Redevelopment Areas (CRAs) belong to the municipality, not the Trust.
Mayor’s Perspective: Legal Position, Not Strategic Attack
At his presser this morning, Mayor D.C. Reeves was quick to clarify that the demand letter represents a legal positioning rather than an aggressive move against the Children’s Trust.
“We are just taking the logistical step to say, ‘Hey, from a legal standpoint, we do believe that this is where we stand legally.’”
The mayor emphasized that the city isn’t married to the exact $2.4 million figure, which includes fines and interest. Instead, he views this as establishing a legal foundation for a memorandum of understanding. “That will not preclude us from coming up with some type of arrangement, whether that be a sole source request, whether that be just a request for future dollars that are tied to childcare.”
- Mayor Reeves connected this legal maneuver to the city’s broader childcare initiative, suggesting that the funds could be redirected toward addressing childcare access across Pensacola. He argued that if the money returns to the CRA, it would be restricted to CRA-specific projects, but as Trust dollars, it could support citywide childcare initiatives.
Trust Director: Part of Collaborative Process
Children’s Trust Executive Director Lindsey Cannon took a measured approach to the demand, framing it as part of an expected collaborative process rather than a hostile action. She explained, “The intention all along has been to do something collaborative and find the right project that the Trust can fund.”
- Cannon revealed that the Trust had already earmarked approximately $560,000 based on earlier discussions about TIF increments, but the actual demand significantly exceeded that amount. She positioned the formal demand letter as a necessary legal step, noting:“If you’re going to request TIF funds, you’ve got to send a formal letter and then we have the ability to just pay it, or we have the ability per law to ask for an exemption and a waiver and an interlocal agreement.”
The Trust plans to address the demand at their board meeting next week. Cannon indicated they will likely request an exemption and pursue an interlocal agreement—the same process they’re using with Escambia County for a similar situation.
The Bigger Picture
Both leaders emphasized their shared commitment to addressing childcare needs in the community, particularly for the zero-to-five population. Cannon noted this demographic represents a major investment area for Children’s Service Councils statewide, with proven dividends in high school graduation rates.
The demand letter appears to be setting the stage for broader negotiations about how to best serve children in Pensacola, with both sides optimistic about reaching a collaborative solution that serves the community’s needs while respecting legal requirements.
