Pensacola now owns the former Baptist Hospital campus, a 41‑acre site at E and Moreno streets that city leaders describe as one of the most consequential redevelopment opportunities in decades. The transfer of title from Baptist Health Care to the city closed Monday, Sept. 29, after a two‑year effort to assemble money for environmental abatement and demolition and to negotiate terms of a donation.
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Mayor D.C. Reeves framed the handoff as a turning point for the Westside neighborhood that grew up around the hospital.
“This is a testament to what we can achieve when the city, our local partners, and the state legislature align on a vision to do what is right for our citizens," Reeves said. "We take on these big projects so we can move uncertainty to action.”
Baptist Health Care, which operated on the landlocked site for more than 70 years before moving to a new campus near Brent Lane and Interstate 110 in 2023, cast the transfer as an extension of its mission.
“The donation of our Legacy Campus to the City of Pensacola reflects Baptist Health Care’s enduring commitment to the community we’ve proudly served for more than seven decades,” said Mark Faulkner, CEO and president of Baptist Health Care. “We’re excited to see this property reimagined in a way that continues to benefit our entire region, and we’re appreciative of the city’s visionary leadership in shaping a vibrant future for this historic site. This collaboration among the city, the state of Florida, and the county will be a model for other communities to follow.”
District 7 City Council member Delarian Wiggins, who represents the neighborhood, said the project should honor the site’s legacy while making room for new uses.
“As we take down these walls, we are not erasing history. We’re laying the foundation for hope,” Wiggins said. “What once served as a place of healing will rise again as a place of living, reminding us that every ending carries within it the promise of a new beginning.”
What changes now
With the title in hand, the city can move from paperwork to site work. The next phase involves comprehensive demolition and environmental remediation to address toxic materials that add to the project’s complexity and cost. The campus consists of the familiar main hospital and several medical towers spread across multiple blocks. Most of those structures are slated to be removed in phases; which buildings, if any, might be retained for public or nonprofit use remains a policy question the city will take up as planning advances.
City officials say they expect contractors to mobilize before the year’s end and that the sequence of demolition will stretch for several years as environmental testing dictates which structures come down when. The city said demolition is anticipated to begin at the end of this year and conclude in summer 2027, with the detailed schedule still being finalized.
A primer on how the city will pay for it
Demolishing a mid‑century hospital campus is expensive. The city reports assembling roughly $13.9 million to cover the demolition contract itself, with additional owner costs bringing the total estimated need higher. The package includes a state grant, a direct contribution from Baptist, proceeds from a Baptist land sale to an affordable‑housing developer, and a contribution from the city’s Community Redevelopment Agency.
RELATED: The new Baptist Hospital is ready to start a new healthcare chapter in Pensacola
A Community Redevelopment Agency, or CRA, is a tool Florida cities use to reinvest in defined areas. When property values rise inside the district, a portion of the tax revenue growth — known as “tax increment” — is set aside for projects within the district. That differs from a “special assessment,” which is a direct charge levied on properties to fund specific improvements. If Pensacola taps its Westside CRA to close funding gaps for the hospital site, that could delay other Westside projects, a trade‑off city officials acknowledge.
Escambia County has discussed contributing funds with conditions tied to reserving two campus buildings for community use. County commissioners have also specified that their dollars could not be spent on demolition. City leaders say they are weighing the offer along with other options to cover remaining owner costs, such as the sale of certain properties.
What could replace the hospital
Officials say the redevelopment is expected to focus on mixed‑income housing — with an emphasis on affordability — along with neighborhood‑serving uses such as parks, community spaces, and services. The city has also flagged potential roles for educational or workforce‑training space as planning advances. Separate from the core demolition package, the city holds grant funding for stormwater and commercial site work on parts of the property.
To shape the specifics, the administration plans a round of listening sessions with nearby residents and stakeholders, including the military community, to identify priorities such as food access, health access, parks, and safe streets. Those meetings are expected to be scheduled in the coming weeks.
Why this matters
The site covers a super‑block that has long defined the surrounding neighborhood. Clearing obsolete structures, addressing environmental issues, and adding new housing and services have the potential to change how people live and move in an older part of the city that has seen disinvestment.
Supporters argue the redevelopment could add attainable homes, attract private investment, remove a large blighted complex, and create public amenities. Skeptics and neighborhood advocates are watching other issues: whether affordability targets are deep and durable; whether demolishing rather than reusing some buildings is justified by cost and environmental data; and whether diverting CRA funds to the hospital site would slow other Westside priorities.
What’s next
Early work will focus on utility shut‑offs, environmental testing, and securing the site. The city plans to bring forward a public engagement schedule and a proposed framework for master planning and developer selection. Key decisions still ahead include whether to ground‑lease or sell development parcels, how to structure affordability requirements, what community benefits to require of private partners, and which — if any — existing buildings to retain.
