PENSACOLA, Fla. — Funding for the demolition and redevelopment of the former Baptist Hospital facility could be in jeopardy.
In January, Pensacola Mayor D.C. Reeves signed a letter of intent stating that the city would take ownership of the land if the city found the funding. I haven’t taken ownership yet.
State Rep. Alex Andrade worries that if the project doesn’t move forward soon, the money allocated by the state to support the city’s real estate redevelopment could be used for other things.
Andrade said Congress will begin considering next year’s budget in early March. He said the company would need to incur the funding or sign a deal by then, or the money could be moved elsewhere.
The Pensacola City Council voted to accept and subsidize $16 million in private funding for the demolition and redevelopment of the former Baptist Hospital on West Moreno Street.
It will take $16.5 million before the mayor commits to owning the land. The city is still short $500,000.
Baptist donated the land and contributed $6 million to the project. The state has also committed $7 million toward this goal.
But Councilman Alex Andrade says the city can’t spend the state money until it commits to ownership. He said delays could cause funds to go elsewhere.
“This money, this $7 million, will not be used this year because most appropriations are used in the fiscal year in which they are awarded,” Andrade said. “They (the city) are going to have to try to keep $7 million in the budget available for this project. Otherwise, if this project doesn’t happen, I’m going to have to go to work. ” to reallocate that $7 million to higher and better uses. ”
City Councilman Charles Baer echoed Andrade’s concerns at the meeting.
“Florida’s performance and its obligation to pay incentives under this agreement are subject to annual appropriations by Congress,” Baer said. “That means the job is not done yet. So we need to continue to get funding from Congress and make sure we spend that money. If we don’t, this budget could disappear. .”
WEAR News contacted the mayor’s office to ask when the city will take ownership of the land. He was out of town and unavailable for comment.
City Administrator Tim Kinsella said if the city believes $7 million from the state is indeed in jeopardy, the city will act quickly to avoid losing that money.
Once the project gets underway, the city could build viable housing on the site.
