Mayor D.C. Reeves’ Reimagine Palafox passed its final approval with a 5-2 vote by the Pensacola City Council last night. Council members Charles Bare and Jennifer Brahier opposed the funding plan and construction contract recommended by the Community Redevelopment Agency.
- Details: That City Council awarded the base bid portion of Bid 25-045, SOUTH PALAFOX PEDESTRIAN IMPROVEMENTS to Site and Utility, LLC of Pensacola, FL, the lowest and most responsible bidder with a base bid of $7,687,942.50, plus a 10% early completion incentive of $768,794.25 (by May 24, 2026), plus a 10% contingency of $768,794.25 for a total of $9,225,531.00.
Funding:
The funding within the 2019 Urban Core Bond Fund and CRA Fund will be reappropriated from the following line items to complete the project:
$4,316,956.00 2019 Urban Core Bond Fund – Hashtag Phase 1 Construction
$123,652.00 2019 Urban Core Bond Fund – Hashtag Phase 1 Engineering Fees
$539.00 2019 Urban Core Bond Fund – Hashtag
$4,441,147.00 SUBTOTAL – 2019 UC BONDS
$1,493,164.00 CRA Fund – Complete Streets (FY2025)
$1,011,500.00 CRA Fund – Complete Streets (FY2026)
$216,087.00 CRA Fund – Acquisition and Redevelopment (FY2026)
$2,720,751.00 SUBTOTAL – CRA FUND
Additionally, the City received $3,046,132 from Florida Power & Light in September 2025. The File #: 25-1379 City Council 11/13/2025 supplemental budget resolution will appropriate these funds for the South Palafox Pedestrian Improvement Project.
South Palafox from Garden Street to Main Street will be closed to vehicular traffic when construction begins on Jan. 5, 2026.
TRANSFORMATIVE DOWNTOWN UPGRADE, BUT WITH POLITICAL RISK
Mayor D.C. Reeves has called the project “the largest investment in our iconic downtown street in the history of the city.” His re-election very well may hinge on the successful completion of the $10.7 million project without creating irreparable harm to the businesses on the street
The New Palafox project, also known as “Reimagine Palafox,” will install 46 ADA-compliant ramps, eight handicapped parking spaces, 52 new trees, and 44 drainage structures capable of processing 93,000 gallons of stormwater.
The improvements address critical accessibility gaps. Currently, narrow sidewalks and outdoor seating make wheelchair navigation nearly impossible on Palafox. The project will widen sidewalks, add four elevated mid-block crossings with rumble strips, and reduce crosswalk distances by up to 16 feet while creating over 12,000 square feet of pervious surface.
Local contractor Site & Utility will employ an innovative “accordion” construction approach, working from both ends toward the center, potentially allowing earlier reopening of certain sections. Storefronts will remain accessible throughout construction, with fencing positioned at awning drip lines to maintain at least six feet of pedestrian space.
Recognizing construction impacts, the city has committed unprecedented business support: up to $768,000 in potential rent relief, $100,000 in marketing support, waived outdoor seating fees, and 414 free parking spaces on surrounding streets. Blue Wahoos co-owner Quint Studer has pledged to help businesses with cash flow concerns.