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Bay Parkway Phase II

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Moving forward with Phase 2 of Bay Parkway


Bay Parkway Phase 2 is a 2.71-mile section that will connect the existing Bay Parkway at Pier Park Drive to Nautilus Street and Panama City Beach Parkway.

The project includes construction of the roadway, stormwater ponds and drainage systems, sidewalks, force main, reclaimed water and a multi-use path. The project begins at the end of Phase 1 of Bay Parkway and travels east 1.56 miles and then travels south for 1.15 miles to connect to Nautilus Street at Colony Club near the new fire station. Improvements will also be made on the existing Nautilus Street section to Panama City Beach Parkway.

Bay Parkway, which is being completed in phases, is a local bypass project designed to alleviate congestion on Panama City Beach Parkway. The first two phases focus on bypassing Pier Park.

Phase 1, completed in 2017, extends from State Road 79 north of the Municipal Complex to Pier Park Drive north of Frank Brown Park.

The Parkway is being constructed as part of a public-private partnership with Panama City Beach, Bay County, the Florida Department of Transportation (FDOT) and the St. Joe Company.

Bay County have each committed $3.5 million to the approximately $8.5 million project. The City has an agreement with the County and FDOT that secures $4 million in grant funds from FDOT, to go toward construction which will begin this spring. The City of Panama City Beach will fund the remaining portion for construction. The utility improvements will be paid out of the Panama City Beach Utility Department’s Budget. The construction of Segment 2 is an 14-month contract.

Bay Parkway is being constructed to FDOT standards with the belief that in the future the state will fund an additional two lanes for Bay Parkway, giving motorists a new 4-lane bypass.

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