The Destin City Council approved a proposal Monday for engineering firm Kimley-Horn to prepare an application for federal funding for a pedestrian underpass near the Stahlman Avenue intersection.

• During the council meeting, City Manager Larry Jones presented the proposal for Kimley-Horn to apply for the Department of Transportation’s Safe Streets and Roads for All (SS4A) grant. The deadline for application is June 26.

“This undergrounding or an underpass at Stahlman Intersection would be an ideal candidate for these SS4A grants,” Jones said.

Councilman Dewey Destin made the motion to approve the proposal. The council voted to engage Kimley-Horn for $38,750 to prepare the grant application.

The project could potentially fund both design and construction phases for the underpass. According to city documents, the total project cost—including design, construction, and inspection—is estimated at $10 to $15 million.

• Okaloosa County has expressed support for the project and is willing to utilize county surtax funds to help meet the required 20% local match for the grant, according to the city.

The proposed U.S. 98 pedestrian underpass would be similar to the $5.6 million lighted Inlet Beach underpass that was completed in 2024.

City staff indicated that eliminating north-south pedestrian crossings at the Stahlman/Highway 98 intersection would improve both safety and traffic flow, while the underpass would maintain pedestrian connectivity.