After hours of impassioned public comment and intense council debate, the Pensacola City Council, as the Community Redevelopment Agency, voted 5-2 yesterday to move forward with the Reimagine Palafox street reconstruction project, setting the stage for the final council vote on Thursday for what Mayor D.C. Reeves called a “once in a generation” transformation of the city’s main corridor.
- The project, which has grown from an initial $3 million concept to a $10.7 million undertaking, will close South Palafox Street to vehicular traffic for approximately 5.5 months beginning Jan. 5, 2026. The scope includes significant stormwater improvements, ADA compliance upgrades, and aesthetic enhancements featuring decorative pavers and circular intersection designs.
The Business Community Divide
Public comment revealed sharp divisions within the business community. Dog House owner Nathan Holler, representing more than 20 business owners, presented a petition opposing the current plan’s scope and timeline.
- “It’s the small business owners who will take the hit, who will bear the weight of the closures in construction, who may not survive long enough to see the finished project,” Holler warned, urging the council to vote no and reconsider alternatives.
Katie Bosso of Indigeaux Denim Bar & Boutique cited a July article about Panama City’s construction impacts where businesses reported 50% revenue drops. “We need the support and help,” Bosso said, requesting the city consider zero-interest loans for affected businesses. “A hundred thousand dollars in marketing doesn’t guarantee people coming downtown.”
Patrick Elebash of Elebash Jewelers voiced concerns about losing 19 prime parking spots and questioned whether the project adequately addresses existing maintenance issues throughout downtown. He noted that one business owner couldn’t attend because her mother was hospitalized after tripping on an uneven sidewalk on Garden Street earlier that day.
Property Owners and Advocates Rally Support
Property owners and cycling advocates painted a different picture. Deborah Dunlap, who owns 30,000 square feet in the Saenger Theater block, recounted surviving two previous Palafox construction projects over 30 years.
- “Each project was challenging for my tenants and for me, but each time Palafox became better,” she said, emphasizing that “Palafox will be open for business” with sidewalks and doors accessible despite vehicular closures.
Commercial real estate broker Michael Carro compared the 5.5-month timeline favorably to other cities, noting that King Street in Charleston took nine years across three phases, Denver’s 16th Street Mall closed for two years, and Panama City’s beautification lasted over three years.
Karen Emmanuel, representing the 300-member West Florida Wheelman Bicycle Club, highlighted how the project’s traffic-calming measures and pedestrian improvements would enhance cyclist safety and help maintain Pensacola’s recognition as a bike-friendly community.
The Funding Controversy
Councilwoman Jennifer Brahier raised concerns about funding sources, questioning the use of Community Redevelopment Area (CRA) bond money from the “hashtag” district for a project extending beyond that area’s boundaries. The $10.7 million project draws $4.4 million from urban core bond funds and $2.7 million from CRA funds, along with $3 million from Florida Power & Light for utility work and $399,000 in parking revenue.
- “This defunds hashtag, defunds the sidewalk line item, defunds a number of things,” Brahier argued, expressing concern that the project leaves the CRA with no remaining funds for other priorities.
Councilman Charles Bare questioned whether the project exceeded CRA’s legal mandate to address blight. “I don’t believe South Palafox is blighted. It’s unsightly due to the actions of a private utility, but we got money for that,” he said, calling elements like the decorative pavers and irrigation systems unnecessary embellishments that could cost over $800,000.
Council Support and Mitigation Measures
Despite the concerns, five council members voted to proceed. Councilwoman Allison Patton described her evolution from requiring a two-phase approach to supporting the single-phase plan after learning more about the stormwater infrastructure improvements and speaking with contractors about realistic timelines.
- Mayor Reeves outlined unprecedented support measures for affected businesses, including making 414 parking spaces free during construction, allocating $100,000 for city marketing (separate from Downtown Improvement Board efforts), and committing to reallocate contractor bonus money for business relief if the May 24 completion deadline isn’t met.
Quint Studer announced during the meeting that he would offer loans to affected Palafox businesses to help with cash flow during construction.
Councilman Jared Moore emphasized the public benefits justify the cost: “It’s not a $10 million project, it’s a seven and a half million dollar project” with additional costs specifically dedicated to supporting small businesses through the construction period.
The project includes 93,000 additional gallons of stormwater storage capacity, which supporters say will address chronic flooding issues that have plagued downtown properties for decades.