Pensacola Mayor D.C. Reeves said last week that federal officials expect to close a key funding gap in the cleanup of the former American Creosote Works site, a long-contaminated property that has stalled redevelopment efforts on the city’s west side.
“They have confirmed to us that the $8.6 million Delta to finish phase one of ACW is anticipated in fiscal year 2026,” Reeves said at his weekly press conference.
The site, in the Sanders Beach area, once housed a wood-treatment plant that used creosote, a preservative containing hazardous chemicals that contaminated soil and groundwater. Testing has also found contamination in nearby residential yards, prompting the federal government to place the property on the Superfund list in the early 1980s.
Under the Environmental Protection Agency's Superfund program, the federal government controls the cleanup plan, funding and timeline. Local governments can plan for future use, but cannot build public amenities until remediation is complete.
For years, city leaders have envisioned turning the property into a public park or green space. That effort has stalled as cleanup funding and timelines have remained uncertain.
Reeves said the newly anticipated funding would allow the EPA to fully cover the estimated cost of Phase 1, roughly $48 million, addressing contamination on residential parcels and the main site.
That phase is designed to reduce immediate exposure risks and stabilize the property. It includes removing contaminated soil from nearby yards, installing an underground barrier wall and capping contaminated areas on the site.
The update does not resolve the full scope of cleanup, however.
“There’s obviously still a phase two conversation to have,” Reeves said, referring to a second phase involving thermal extraction that remains unfunded.
Reeves said the city has continued to press federal officials to move the project forward.
“We’ve been to DC a couple of times," he said. "I’m going again tomorrow ... to try to work this as hard as we can."
In earlier remarks, Reeves said local officials have limited control over the process but have continued to push for action.
“This is why you go pound the pavement up there," he said Tuesday, "... to be able to get something across the finish line."