The city of Pensacola has negotiated a contract to buy a longstanding eyesore on N. Palafox, Escambia County’s old Medical Center Clinic, and the mayor says they’re using grant money from the Hollis T. Williams project to cover the cost.
According to the contract, the purchase price is $1,275,000 for the four-story building at 1750 N. Palafox and two adjacent parcels of land that are all owned by Real Business Consultants, Inc.
Real Business Consultants bought the building from ECUA in 2016 for $75,000. About a year ago, the company listed it for close to $2 million.
Pensacola Mayor D.C. Reeves said the purchase price is primarily for the land since no value was given to the dilapidated building that has long sat empty and continues to deteriorate.
The contract also includes a 60-day contingency waiver, which gives the city the right to study and inspect the property for environmental hazards and other issues and determine if it’s suitable for purchase.
Under the terms, the city has the right to terminate the agreement for any reason.
If the sale goes through as negotiated, Reeves said the eventual plan is to demolish the 60,000-square foot building after they conduct an environmental inspection, among other inspections.
“It may be there might be more demolition costs than there are acquisition costs,” Reeves said, “but the way I looked at it, it’s still worth it to us either way.”
The contract must still be approved by the Pensacola City Council.
The property sits on about two acres of land between N. Palafox and Guillemard Street.
The back side overlooks Long Hollow Retention Pond, a series of man-made lakes that are adjacent to nearby Interstate-110 that are targeted for improvements under Pensacola’s Hollice T. Williams greenway plan.
The plan covers about 60 acres under I-110 and includes a new stormwater pond, walking paths, playgrounds, sports fields and courts designed to reconnect neighborhoods and communities separated by the interstate.
Reeves said grant money from the Hollice T. Williams project would be used to buy the old clinic property, if it’s approved.
The building had been empty for 12 years, since Hurricane Ivan, when the Emerald Coast Utilities Authority bought the property in early 2016 for $637,000.
ECUA said at the time there were issues with black mold and had the building evaluated by architects and engineers.
In late 2016, ECUA broke up 1750 N. Palafox into several different lots, selling the building to Real Business Consultants, Inc.
There are two pending code enforcement cases against the property where fines are accruing.
According to the contract, if the property owners address the issues they won’t have to pay fines.
This article originally appeared on Pensacola News Journal: Pensacola makes $1.2 million deal to buy old Escambia Clinic on Palafox
Reporting by Mollye Barrows, Pensacola News Journal / Pensacola News Journal
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