Pensacola Mayor D. C. Reeves presented the State of the City address to an audience at the Saenger Theatre Thursday evening.
He began by celebrating Pensacola’s recognition as “the number four safest city in the United States,” thanking the police department for their efforts. The city was also named a “top ten place to retire and a top ten small city,” said Reeves.
The mayor shared his excitement about American Magic starting its 10-year lease at Warehouse 10 in the next year, which will create 150 jobs. The project represents more than just the America’s Cup sailing team’s headquarters. It would also drive economic development initiative and attract international sailing events.
“That is kind of the cool factor, the wow factor that plants the flag as a sailing destination in the world,” said Reeves.
Affordable Housing
Reeves said that increasing housing supply at all levels is crucial to solving the housing problem. He explained that five migrations over two and a half years resulted in the creation of more affordable units. Specific projects mentioned include 90 units at the old Motor Lodge property on Cervantes Street and 12 units at the former Malcolm Yonge site. He stressed the need to overhaul the outdated land development code to create housing solutions.
Baptist Hospital and other restoration projects
Reeves explained how Baptist Hospital’s demolition project plans to increase housing supply, “That’s 200 affordable units that will be done much quicker than anything that the city will be able to do on the other 35 acres. So you should be hearing about those in 2025.”
The mayor stated that repurposing the Baptist Hospital structure is impossible due to extensive mold and asbestos contamination found in an environmental study. The city will have a shortlist of qualified demolition companies within the month. In January, these contractors will submit their bids, providing a clearer picture of the project’s cost. Current estimates suggest around $16 million, but the actual cost could range from $10 million to $25 million. With the property donation agreement set for March, the mayor said the city continues to have a sense of urgency regarding the old Baptist Hospital property, “We will have a very, very consequential next four months as it pertains to this project,” said Reeves.
The city is investing in several additional restoration and improvement projects. About $1 million has been spent to renovate City Hall, which has not been updated since 1985. Additionally, $700,000 is committed to improving the exterior of Cobb Center. Palafox Street is set for a $5 million facelift to enhance its appeal.
“We have transformational projects coming in 2025. Lots of shovels in the dirt,” said Mayor Reeves.
He also spoke about the Hollice T. Williams Stormwater Park project.
“That’s over 18 city blocks,” said the mayor. “We procured $30 million of funding for that. By November of 2025, we should have a full design of that park be ready for construction.”
In the next year, the city of Pensacola will introduce improved curbside recycling. A $250,000 grant from the Recycling Partnership, a national nonprofit, has been secured. The grant will fund education and direct mail to inform residents about proper recycling practices and sign-up procedures. It will also be used to implement AI-camera technology on recycling trucks to detect contamination in recycling bins. The goal is to restart curbside recycling in three to four months.
Paid Parking
The mayor emphasized transparency in the use of parking revenue, with real-time spending data available on parkpensacola.com.
“Nineteen point one percent of the revenue that has collected in the last three months, of those 62,000 transactions, 19% of it came from people who live in the city,” he said. “Eighty one percent of the revenue that we just generated from paid parking came from people who do not pay taxes in the city.”
“We’re accountable to trying to show you what we’re doing with the money.”
The mayor said most of the construction that will take place next year will come from grants and not from residents’ pockets.
Pensacola International Airport
Last month the airport opened 434 new parking spaces, which reached capacity during the busy Thanksgiving weekend, with even the overflow lot filling up. The airport also achieved a record-breaking milestone, surpassing 3 million passengers this year, an 8% increase compared to last year’s Thanksgiving weekend.
To accommodate growing demand, plans are underway for a $120 million expansion, including five new gates, enhanced baggage claim facilities, and a modernized security area. Groundbreaking for the project is scheduled for July, beginning with infrastructure improvements before constructing the new terminal. The expansion aims to support increased non-stop flight options and overall airport capacity.
He ended the State of the City report with appreciation for the city of Pensacola’s employees and a commitment to its residents.
“I’m truly honored to get to work with these 850 people, and I promise you’ll get everything I have to make this a special place,” Reeves said.