Pensacola Council to Consider $695,000 Contract for Future of Former Baptist Hospital Campus

PENSACOLA, FL (NewsRadio 92.3) -- Pensacola City Council could take another major step Thursday toward determining the future of the former Baptist Hospital campus.

Council members will consider awarding a $695,000 one-year contract to Bayou District Consulting for development advisory services involving the large Westside property. The contract would not select a developer, approve construction or commit the city to any particular future use of the campus.

Instead, the firm would evaluate redevelopment options, determine what's feasible and conduct community engagement before eventually making recommendations to the city and Community Redevelopment Agency.

It's the second attempt to establish a consulting process for the property. An earlier proposal involving Bayou District Consulting was withdrawn in December 2025 following council discussion and public input.

The city subsequently restarted the process with a new request for proposals designed to increase oversight and community participation.

The revised process includes a five-member evaluation committee, including two community representatives, along with dedicated Community Engagement Lead and Community Benefits Lead positions.

Seven firms submitted proposals. Five advanced to oral presentations, with Bayou District Consulting ultimately receiving the highest score.

Paying for the contract also requires moving additional Westside CRA money.

The city currently has $300,000 allocated for the work. Another $395,000 would be shifted from funding previously designated for Westside façade grants.

Altogether, $605,000 would come from Westside Tax Increment Financing funds and $90,000 from donated proceeds.

City Council is scheduled to consider both the funding change and consulting contract during Thursday's regular meeting.

Any extension beyond the initial one-year contract would require approval from both the CRA and City Council.