PENSACOLA, Fla. — Funding for 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 for the city to take ownership of the property, if the city finds the money. It has yet to take ownership.
State representative Alex Andrade is concerned the money the state earmarked to help the city redevelop the property could be used for something else, if the project doesn’t move forward soon.
Andrade says the legislature will start looking at next year’s budget in early March. He says the money needs to be encumbered or contracted out by then or the money could be moved elsewhere.
The Pensacola City Council voted to accept $16 million in private and grant funding for demolition and redevelopment of the former Baptist Hospital on West Moreno Street.
They need $16.5 million before the mayor will commit to owning the property. The city is still short a half million dollars.
Baptist donated the land and has contributed $6 million to the project. The state has also committed $7 million to the goal.
But representative Alex Andrade says the city can’t use that state money until the city commits to ownership. He says the delay could cause the funds to go somewhere else.
“This money, this $7 million is not going to be used this year as most appropriations are spent in the fiscal year that they are awarded,” Andrade said. “They’re [the city] going to have to work to protect the $7 million in the budget to allow it to be used for this project. Or if this project is not going to happen, I’m going to need to go work to reallocate that $7 million to a higher and better use.“
Councilman Charles Bare echoed Andrade’s concerns at the meeting.
“State of Florida and commerce performance and obligation to pay any award funds under this agreement is contingent upon an annual appropriation by the legislature,” Bare said. “So the work is not really done. So we have to continue to get funding for the legislature and make sure we spend this money, otherwise it could go away.”
WEAR News contacted the mayor’s office to ask when the city would take ownership of the property. He was out of town and couldn’t comment.
City administrator Tim Kinsella says if they thought the $7 million from the state was actually at risk, the city would move fast to make sure the money was not lost.
The city could create attainable housing on the property once the project gets moving.
