Experts Say THIS Will Bring BIG $ to Okaloosa, But Commissioners Just Pulled it From Their Annual Wishlist

In Brief:

•Okaloosa County Commission removed the $1.5 million funding request for the SS United States artificial reef project from its state legislative wishlist.

•Commissioners debated the economic and public optics of the project, with tourism officials emphasizing its potential multimillion-dollar annual revenue.

•The project is now likely to rely on local tourism development funds after being excluded from state funding requests.

Despite Estimates It Would Bring $$ To Okaloosa – Commissioners Pulled THIS From Their Legislative Wishlist

The SS United States, an erstwhile luxury sailing ship that ferried celebrities across the Atlantic Ocean until the advent of the jet age, became the topic of debate once again at the Okaloosa County Commission as elected officials debated the merits of sinking the ship off Destin.

The commissioners ultimately decided unanimously to remove the $1.5 million funding request from their list to bring to the Okaloosa County Legislative Delegation on December 17. They voted to add it to their priorities list two weeks ago at their November 19th meeting.

Drew Palmer, a new commissioner on the board who represents the eastern portion of Niceville and greater Destin, noted his frustration with the idea that optics played a role in the decision. “I have a really difficult time voting for optics because I do understand [the funding for a project like this] comes from separate pots of money,” Palmer said, “It’s kind of our responsibility to make sure we are making the decisions that are right for the county.”

Paul Mixon, the outgoing chairman of the board of county commissioners, said he would vote with the rest of the commission as he believes a split for on legislative priorities would kill all of the requests in the eyes of state legislators. “I don’t want us to be split on a priority list that we are giving to another government body,” Mixon said, “I’m going to decide with you in that and withdraw my personal feelings on pursuing that funding, knowing that it comes from a second pot, but you’re concerned of the optics, and so I’ll yield to that concern.”

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Why Are They Still Talking About This?

Carolyn Ketchel, who will likely run for re-election in 2026 and need support in the north end of the County – based on the competition that rose to challenge her in 2022, came out against the purchase and sinking of the ship. She reasoned in past meetings that the purchase and scuttling of the ship was a bad look when residents of Okaloosa County were struggling economically.

“I was admonished at the time by a sitting Commissioner. Oh, people understand this. No, they don’t,” Ketchel said.

In December 3’s meeting she seconded the motion to remove the request for funding from the Florida State Legislature to help with the project, which will cost the County a million dollars for the purchase of the ship, and will cost about $10 million for the entire project.

The County wants to ask the State Legislature for $1.5 Million toward the project.

“I am still not in favor of that vote,” Ketchel said, “I recently went to Philadelphia and did not look at the boat. So, I feel strongly about that.”

Commissioner Paul Mixon called for Tourism Development Department Director Jennifer Adams to answer several questions that he had about the project. He supported the program to create an artificial reef with the SS United States in a 4-1 vote. Like a lawyer on cross-examination, Mixon asked questions of Adams that made a case for the project.

With his questions – he added to the record the following:

The money they want from the state already has strings attached to it that require it to be used on tourism investment.
The total cost of the project is about $10 million. $1 million has come from county coffers that can only be used for tourism.
The project to bring the boat to the area offshore Okaloosa County would bring in millions in state grants, associated tourism development dollars and revenues. The County expects to see multiple returns on its investment in a short period of time from the scuttling of the ship.
With the purchase of the ship, the County has received earned (read: free) media coverage from journalists around the world valued at $6 million in the month of November alone.

Adams added that the buzz around the project is now worldwide. “I’ve been to multiple places over the last few months, including London, where we had nothing but discussions about this,” Adams said, “They don’t want to come and visit our beaches. They want to come and do other things – and dive. They’re going to the Maldives to go to beaches and whatnot. So, they want to come here for different reasons.”

Adams argued the Haas institute studied the impact of projects like this and estimated that they would have a $3 million impact on the local economy per year – a three-times return on the project in a single year. “That was decades ago,” Adams said about the study, “so we are estimating it closer to $5-6 million per year now.”

So, where will the money come from?

Since the commission will not formally ask the legislative delegation for money for this project, it is very unlikely the state legislature will give them the money to do it.

That means the money will likely come from the Okaloosa County Tourism Development Department’s (TDD) coffers.

The bulk of the money for the TDD’s budget comes from the bed taxes levied on hoteliers in the tourism development district. Bed taxes are additional taxes levied on hotel stays. The tourism development district now includes the entire County after Okaloosa County voters passed a referendum a couple of years ago.