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Panama City Beach, Florida: A Sunny Balance of Resident and Tourist Needs

By

Suzanne Wentley
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March 13, 2024 4:18PM EST
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Image courtesy of Tracey Miller

It’s one thing to govern a small, coastal town of under 20,000 people. It’s another thing when that town is one of the fastest growing places in the U.S., with a nearly 40 percent population increase since the start of the coronavirus pandemic. Add in the fact that 4.5 million people come to visit every year, and you can quickly understand the unique circumstances in which Mark Sheldon, mayor of Panama City Beach, Florida, governs.

Mayor Sheldon, a dedicated team of staff, and fellow elected officials are working to balance the needs of new residents, tourists, and those who have called the sunny, white-sand beach home since it was formed 53 years ago.

“This is paradise for us, the gem of the Panhandle,” Mayor Sheldon said. “So many people found us during the COVID-19 lockdown when Zoom became a thing. If they could live and work anywhere, why not work in paradise?”

With the U.S. Census now estimating 18,000 residents, the balance of priorities has shifted for this family-friendly tourist destination. Since there is no ad valorem tax for property owners in the city, the mayor and other officials must attract new businesses to keep Panama City Beach attractive to beach lovers from across the southeast.

In December of 2023, Mayor Sheldon announced that the city would become the first Panhandle location for a Topgolf sports entertainment facility and that singer Dolly Parton would open a 1,200-seat “Pirate’s Voyage” dinner theater in 2025.

This news, along with securing important state and federal grants, is helping to fund the new infrastructure work already underway to support the growth and continued popularity of Panama City Beach for tourists and residents alike.

New Hospital on the Island

Mayor Sheldon said a recent cold snap reminded him of the time about eight years ago when the three bridges that connected his island city to the mainland had frozen closed. Back then, there was no hospital on the island.

Today, Tallahassee Memorial Hospital and Florida State University are partnering with the St. Joe Company to build a 300-bed teaching hospital on a 40-acre campus on State Road 79. Not only will this facility provide much-needed medical care on the island, but it also helps create opportunities for professional skill development for higher-paying jobs.

“We don’t want to make our kids feel like they have to leave if they don’t have a good job,” Mayor Sheldon said. “This hospital is a generational change to make a better beach for the future.”

Improved Parks and Recreational Opportunities

Recreation is also an important priority for those who choose to make Panama City Beach home. Mayor Sheldon, whose two children play plenty of travel softball, basketball, and baseball, is proud of the work being done to enhance Frank Brown Park. Construction is underway to add a new skatepark and BMX park, as well as pickleball courts. “I want it to be welcoming to everyone,” he said.

In 2019, Publix Sports Park (formerly Panama City Beach Sports Complex) opened. The $42 million facility doubled its sports fields to host youth and amateur sports tournaments throughout the year, which helps fill the 18,000 rentable units the city has available every day.

The complex has hosted 210+ tourism events and tournaments for a direct spend of $266 million with 350,000 visitors and over 450,000 room nights.  This, along with playing host to thousands of local practices, games, and leagues.

“The park is busy all the time with sports events, and they love to play on turf,” he said. “The customer service at the park — that’s who we are at Panama City Beach. Once families find it, they will buy a place at one point.”

Image courtesy of The City of Panama City Beach

New Roads and Water Treatment Infrastructure

Of course, all those new people can put a strain on the existing city resources. The mayor said he spent time in Tallahassee and Washington advocating for grants, which are now paying to expand Highway 98 from four lanes to six lanes. Up to 80,000 cars pack on that road on a typical beach day.

“The roads become parking lots,” he said. “That’s a real challenge for our residents. Many of them know where to go and not to go during the season, but we don’t have an off-season anymore.”

City officials are focused on other behind-the-scenes infrastructure projects, too. Thanks to a $21 million state grant from the Florida Department of Economic Opportunity’s (DEO) Rebuild Florida General Infrastructure Repair Program, they are expanding a stormwater pipe 1,500 feet into the Gulf of Mexico to reduce near-shore pollution. That benefits tourists, residents, and the environment.

They’re constructing a second wastewater treatment facility, a $100 million investment. Potable water infrastructure needed support, too. City officials are investing $15 million into a system to create a redundant underground water storage facility so they’ll never have to worry about a fire hydrant running dry.

Safety Remains of Paramount Importance

Those fire hydrants, by the way, connect with one of three fire stations in Panama City Beach. The city recently received grants to replace two stations – one damaged by Hurricane Michael in October 2018, and both of which had to be evacuated for the storm.

You’ll also likely see police cars, as well as a street sweeper, patrolling the neighborhoods. Community policing and beautification are essential to the quality of life for everyone, the mayor added.

The city employs 400 professionals, which may seem like a lot until 100,000 tourists pile in for the weekend. To retain government employees, the mayor works with the city manager to complete a competitive pay study every two years. They also offer a gold-standard pension plan and benefits like free health insurance.

As a result, the city is safe and welcoming. That — along with the beautiful beaches —makes Panama City Beach so unique and prepared for the future.

“We are changing the dynamic of who we are and adding economic development projects to enhance Panama City Beach’s stability for the next 50 years,” said Mayor Sheldon. “We welcome everyone here. Spend a day or two, and you’ll see why we choose to live here.”

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