Pensacola Approves $695,000 Contract to Plan Future of Former Baptist Hospital Campus

PENSACOLA, FL (NewsRadio 92.3) -- Pensacola City Council has approved a $695,000 contract with Bayou District Consulting to help determine the future of the former Baptist Hospital campus following another lengthy round of public opposition.

Council approved the one-year agreement 6-1 Thursday night.

Councilman Charles Bare cast the only opposing vote.

The contract does not select a developer or authorize construction on the former hospital property.

Bayou District Consulting will instead lead community engagement, evaluate potential uses of the site and develop recommendations for the city and Community Redevelopment Agency.

The company emerged as the highest-ranked firm following a new competitive selection process launched earlier this year.

Seven companies submitted proposals, with five advancing to oral presentations before an evaluation committee made up of three city employees and two community representatives.

The agreement revives a relationship that became controversial last year.

A previous proposal involving Bayou District was withdrawn in December 2025 following significant public opposition.

The city subsequently developed a new request for proposals that separates the planning and community-engagement phase from any future selection of a developer.

Thursday night's meeting again drew residents opposed to hiring Bayou District.

The contract's total cost is $695,000.

Of that amount, $300,000 had already been allocated to the Baptist redevelopment project — including $90,000 in donation proceeds and $210,000 in Westside Tax Increment Financing money.

Council also approved reallocating another $395,000 from a Westside TIF façade-grant program to fully fund the contract.

Bare said Hurricane Isaias changed his view of using that additional money for the consulting agreement, arguing that residents in the redevelopment area are dealing with storm recovery needs.

Other council members supported moving ahead with the planning process.

The city says the new process is intended to determine what surrounding neighborhoods want at the former hospital site while also evaluating what redevelopment options are financially and physically feasible.

Any future decision selecting a developer or approving a specific redevelopment project would require additional action.