'A resurgence': Panama City to soon begin Phase 2 of Harrison Avenue streetscape project

PANAMA CITY — For Jonathan Hayes, it's important for any city to revitalize its downtown, especially one like Panama City that is still recovering from past natural disasters.

Hayes, the city manager of Panama City, said construction will soon begin on Phase 2 of the Harrison Avenue streetscape project. It will continue a wave of improvements to downtown that not only have made the area more walkable and look better, but boosted business at surrounding shops.

"Revitalizing your downtown is important for any community to start that spark in your downtown corridor and let it spill out from there," Hayes said. "I think it's even more important as you're dealing with a city and a county that is still recovering from the catastrophic hurricanes of Michael and Sally."

Category 5 Hurricane Michael hit the Panhandle in October 2018. It was followed by Category 2 Hurricane Sally in September 2020. Both caused widespread damages throughout Panama City and Bay County.

Phase 2 of the streetscape project will mirror Phase 1, which installed new underground utilities, upgraded parking, wider sidewalks, trees and pavers (sometimes called cobblestones) along Harrison Avenue from about the Panama City Marina to Four Points Plaza, near Martin Theatre.

Phase 2 will pick back up at Four Points Plaza and stretch to Sixth Street.

Hayes noted Phase 1 kicked off toward the end of 2021; however, construction did not really begin until the first quarter of 2022. It then wrapped up at the end of 2023. The project took longer than officials originally expected because some adjustments were made to design plans, and there were supply chain delays at that time.

Phase 1 cost about $7.9 million and was primarily funded by surtaxes. As of March 8, officials did not know how much Phase 2 will cost, but they were confident it will be entirely funded by grants. Hayes hopes for Phase 2 construction to break ground some time between Memorial Day and the Fourth of July and take about a year to complete.

"Now that we're done with Phase 1 ... we're just seeing a resurgence of activity, commerce, energy and excitement here in downtown Panama City," Hayes said. "The excitement downtown is palpable as visitors, vendors and businesses come and enjoy the newly designed and constructed Harrison Avenue."

For Gilbert Hamati, owner of Trigo San Francisco Style Deli & Catering, business is booming in downtown thanks to the streetscape project. Located at 119 Harrison Ave., the deli sits in the heart of Phase 1. It has been in the area for more than a dozen years, giving Hamati first-hand look at the recent development.

He noted the improvements have absolutely led to more walk-in customers for his business.

"The traffic down here has been great," Hamati said. "I'm really surprised. I did not expect this, and I'm very happy about it."

Though the deli now is flourishing, that was not always the case. According to Hamati, it experienced an approximately 30% dip in business during the prolonged construction of Phase 1.

Still, he said the short-term pains were well worth the long-term gains.

"It's been a great plus since it's happened, but the problem was it took way too long," Hamati said. "I think the construction company was not pushed hard enough to get the project done, (but) I can't think the city enough for what they've done.

"There were a few hitches here and there that we weren't happy with, but overall, we're very happy with it."

Patrick Chapin, president and CEO of the Bay County Chamber of Commerce, said developments such as the streetscape project are important for communities because they can help lower property taxes. Like Hamati, Chapin was excited for Phase 2.

Moving forward: 'I'm excited': PC City Manager Jonathan Hayes becomes executive director of CRA

The chamber, located at 235 W. Fifth St. in Panama City, works to support local businesses and promote economic development, which are two goals of the project.

"Any time you have commercial growth, it's going to stabilize and help our property taxes," Chapin said. "More commercial and more retail lessens the burden on our ad valorem and real estate taxes."

Along with possibly helping alleviate tax burdens for residents, as well as creating an environment that promotes future success, Chapin believes the Harrison Avenue streetscape project also gives Panama City and its residents something to be proud of.

"I'm two blocks from Harrison, and I (often) walk down there for lunch," he said. "You can just feel the energy and the optimism. You see people stopping and talking to each other. It's important in many ways."

This article originally appeared on The News Herald: Phase 2 of Harrison Avenue streetscape project to soon begin in PC