Panama City Beach has abandoned a years-in-the-making project meant to curb flooding and improve water quality after the expected price tag ballooned, underscoring how hard coastal communities can struggle to finance climate-resilience work.
The city had anticipated a $22 million job, but bids arrived at $61 million, a jump that effectively took the plan off the table.
Here's what to know
According to The News Herald, Panama City Beach has dropped plans for a controversial offshore stormwater outfall near Lullwater Lake.
Mayor Stuart Tettemer said the city secured a $21 million state grant in 2021 to support the work, but the financial picture no longer works.
"It was budgeted for $22 million and funded by a grant," Tettemer said. "We put out for bid, and it came back at $61 million. ... Inflation just got to us in the meantime, and so it's not a current city project."
About $3 million of the grant went toward engineering, and the city expects to return most of what remains to the state. The funding came through the Florida Department of Economic Opportunity's Rebuild Florida General Infrastructure Repair Program for communities affected by Hurricane Michael in October 2018.
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Past reports said the proposal called for merging the outfalls at Lullwater Lake and Calypso Resort and Tower, sending stormwater through underground piping, and releasing it about 1,500 feet into the Gulf of America.
More background
Improving water quality was one of the project's goals, along with reducing flooding around Lullwater Lake.
Similar systems in Myrtle Beach, South Carolina, have helped address flooding and water quality, and the city received EPA recognition in 2017 for environmental improvements linked to its offshore outfalls.
What's being done?
Rather than trying to assemble a much larger funding package, Tettemer said the city will stop pursuing the outfall. Most of the unused grant money will be returned.
It also means Panama City Beach will go without this particular flood-mitigation and water-quality solution, even after years of discussion and millions already spent on planning.
"I think practically, it's dead," Tettemer said. "At the moment, we are not advocating for any additional funds for it. We are not pursuing it as a major project. It is functionally dead."
Where can I learn more?
Other communities are also grappling with the rising cost and complexity of flood-protection work. They include reporting on scaled-back storm barriers, city flood-control upgrades, and public funding for resilience projects.
• At the Jersey Shore, officials slashed a storm protection plan to avoid a $16 billion cost.
• In Florida, Gene Kennedy outlined crucial flood prevention methods as hurricane season ramps up.
• Gov. Ron DeSantis restored very important funding for Florida land and Everglades conservation.
• New York City officials partnered with tech firms on solutions to battle disastrous flooding.
• Massachusetts allocated nearly $4 million to local projects meant to reduce flood risks.
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