The Fort Walton Beach City Council unanimously approved an interlocal agreement with Okaloosa County Tuesday night to jointly fund the design phase of the “Around the Mound” traffic project, with each entity committing $675,000 in matching funds.
- The agreement enables the city to apply for a competitive Transportation Regional Incentive Program (TRIP) grant that would cover half of the $2.7 million design costs, Growth Management Director Christopher Frassetti told council members.
“This could substantially speed up the process,” Frassetti said. “Currently it’s not funded in the five-year program with FDOT for design.”
Councilman Travis Smith said the project could advance by 18 to 24 months if the grant is approved. “This is a once in a lifetime deal that we got right here,” Smith said. “According to both [FDOT and TPO], it’s very unheard of to advance a project.”
The project aims to increase capacity on US 98 and address existing and future traffic issues through downtown Fort Walton Beach. A Project Development & Environmental study is currently underway, with a preferred route alternative expected to be selected in November 2025.
Councilwoman Gloria DeBerry noted both local military base commanders support the project. “They’ll do whatever they can to help us eliminate or reduce the traffic flow, especially on Hurlburt,” she said.
If the grant is approved, design work could begin in 2026. The city and county also plan to pursue additional funding through Safe Streets and Roads for All grants that could potentially cover their required matches.
