Pensacola Mayor D.C. Reeves provided an update on the highly anticipated New Palafox Street project during his weekly press conference this morning, revealing that while bids exceeded the city’s budget, the project remains on track for a January start date.
Background: In August 2024, the mayor unveiled the conceptual designs for the New Palafox project, which he called “the largest investment in our iconic downtown street in the city’s history.” At the time, the estimated cost was $5 million, with $3 million coming from FPL, but that was before engineers reviewed the drawings. The initial timeline had construction beginning in the Spring/Summer of 2025. See thenewpalafox.com.
Budget Challenges and Timeline
Bids for the new Palafox Street project were opened last Friday afternoon, with submissions exceeding the city’s $9 million budget. The funding package includes approximately $3 million from Florida Power & Light, CRA bond money from 2017 and 2019, and potential parking revenue. Mayor Reeves emphasized that the procurement process is ongoing, with the engineer of record still reviewing the bids to determine the best path forward.
- Mayor Reeves remains committed to breaking ground during the first week of January. “It’s absolutely paramount that this starts the first week of January,” he stated, explaining that January and February are historically the slowest months for downtown businesses. He wants to minimize economic impact on Palafox’s small business community.
Shifting Hashtag Project Priorities
The announcement has raised questions about the city’s original Hashtag project, which envisioned creating a grid pattern with two east-west streets (Main and Cedar) and two north-south streets (Jefferson and Palafox). Mayor Reeves defended his decision to prioritize Palafox over the previously planned Main Street component.
The Mayor explained that construction costs for the Main Street phase were “astronomically higher” than anticipated due to complications with historic buildings and concerns about underground infrastructure. Meanwhile, ongoing developments, including the Sun Trail design and hotel construction along east-west corridors, have created additional considerations.
- “Palafox is hashtag,” Reeves asserted, noting that no requirement exists to complete the streets in any particular order. He emphasized that the FPL funding obligates the city to conduct Palafox paving regardless, making it practical to invest additional resources in the city’s “iconic downtown street.”
Reeves promised more detailed financial information and a clearer direction by next week, once the procurement process concludes.
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