Vacant lot near Panama City Mall awaits future U.S. 231 project

PANAMA CITY − The Florida Department of Transportation has not yet developed the property it acquired near the Panama City Mall for a future roadway expansion project.

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Located near West 23rd Street and State 77, the property was previously the home to a building that housed Starbucks and the Vitamin Shoppe. The building has since been demolished, leaving the property vacant.

FDOT plans to eventually use the site for a retention pond that will be part of a larger project to widen a stretch of U.S. 231 from four to six lanes. Here’s what we know.

What is the project’s goal?

The project aims to expand the road from four to six lanes from U.S. 98 to State 20. Work is expected to be split into multiple phases, with no set timeline for construction as of Sept. 18.

For now, FDOT’s primary focus is acquiring the rights-of-way needed for the expansion.

Ian Satter, FDOT spokesperson, said the department has budgeted about $25.2 million for right-of-way acquisition in 2027, about $28.6 million in 2028 and about $10 million in both 2029 and 2030.”Right now, the only thing we have in place is funding for right of way acquisition through 2030,” Satter said. “As an agency, we’re looking at ways to try and accelerate our ability to get funding for construction, but the key here is (there) is a lot of right of way that will be needed for this project.

“We want to get it ready to go as quickly as we can,” Satter said. “If there is a possibility that we can acquire funding (for construction) and begin a project earlier, we want to make sure the site is ready to go.”

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What about FDOT’s other local projects?

In addition to the future U.S. 231 expansion, FDOT also is actively working to expand portions of U.S. 98 in the Panama City Beach area from four to six lanes.

Like with the U.S. 231 project, the U.S. 98 project was split into multiple phases. The first phase, which is already completed, spans from Mandy Lane to Nautilus Street. The second phase, which is expected to be completed toward the end of next year, spans from Nautilus Street to Richard Jackson Boulevard. Construction on both of these segments broke ground in 2023.

The third and final segment of the 98 expansion project spans from Richard Jackson Boulevard to the Hathaway Bridge. It began this past summer, and the project is expected to be complete by 2030.

“Progress is moving pretty well out there and ahead of schedule,” Satter said. “We’ve got a four-year timeframe to get this done, but we are constantly working with the contractor to find ways to save time.”

This article originally appeared on The News Herald: Vacant lot near Panama City Mall awaits future U.S. 231 project

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Reporting by Nathan Cobb, Panama City News Herald / The News Herald

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Copyright Reuters or USA Today Network via Reuters Connect

This story was originally published September 21, 2026 at 9:11 AM.