DOGE Audit Response
Mayor D.C. Reeves expressed surprise at learning about Florida DOGE’s audit findings through a public press conference rather than receiving the report directly, especially after city staff provided extensive documentation during the investigation.
- “We had a team stop and drop what they were doing, 47 people, 60,000 emails, 50 miles of paperwork that had to be done very, very quickly,” Reeves said during his Tuesday press conference.
The mayor took issue with several items highlighted by DOGE, particularly those related to the Saenger Theatre and the “Welcome to Pensacola” sign.
Saenger Theatre Profitability: Reeves defended the city’s arrangement with the historic theater, clarifying a common misconception about its finances.
“The Saenger. There was already a misperception locally that the city gives it $150,000. The problem is you have to just read the budget in a little more detail and say, ‘Well, yeah, it gives $150,000, but you also have to see what comes in,” Reeves explained. “We’re proud of it. It’s not easy to run a public facility, one that is historic and that ornate, and to be able to run it for profit.”
Welcome Sign Funding: The mayor also reiterated what we reported last week. No city property tax dollars funded the “Welcome to Pensacola” sign. The project was initially funded with $375,000 allocated by FDOT for the replacement of the Five Flags Pavilion, plus an additional $100,000 from FDOT to account for inflation, with final funds coming from previously allocated ARPA funds.
- “There’s not been one dime of city property tax that was put towards this specific project,” Reeves stated.
The city has not received a formal report or timeline from DOGE and remains open to further discussions.
Maritime Park Parcel 4 Development
The Inspired Communities of Florida recently presented plans for a major development on Parcel 4 at Community Maritime Park, potentially worth approximately $250 million. However, the project faces significant challenges, particularly regarding parking. Concepts listed ranged from a Cheesecake Factory to a Trader Joe’s.
Background: The plans included a seven-floor building that would have 190,100 square feet of retail space, 119 residential units, 39,100 square feet of office space, and a 1,300-space parking garage, according to the PNJ.
Parking Complications: The development would eliminate 350 existing parking spaces that would need to be replaced, but the proposed project could require up to 1,600 spaces in total—creating what Reeves called a “$20 plus million dollar elephant in the room.”
- “The meeting I’m interested in is the one coming up, which is going to tell us how we’re going to pay to replace the 350 spaces. What does that public partnership look like?” Reeves said.
Timeline and Expectations: The mayor emphasized that progress on Parcel 4 won’t delay Inspired’s building the Reverb by Hard Rock and the Rhythm Lofts for Parcel 5, where foundational permits have already been pulled.
- “I’m a big kind of do what you say you’re going to do person. So just because there’s some vision for Parcel 4 to me does not allow any foot off the gas on Parcel 5,” Reeves stated.
Reeves indicated the city would use the same approach as with other developments: “We do the same math you do, and I’ve got to go to our citizens and our council and defend why this is a value to the city.”
- The mayor noted that, unlike Parcel 5, which received no tax abatements, the city might consider leveraging the new property tax revenue generated by Parcel 4 to help fund necessary infrastructure. However, he emphasized that the city won’t commit to funding private parking spaces beyond its public obligations.