Okaloosa County Commissioners unanimously approved an interlocal agreement Tuesday with the city of Destin to fund a pedestrian underpass project at the Highway 98 and Stahlman Avenue intersection.

• The agreement would provide $3.6 million in county surtax funding toward the estimated $20 million project if Destin receives a federal Safe Streets and Roads for All grant.

Scott Bitterman, the county’s Public Works director, told commissioners the intersection is “the most capacity constrained intersection in the Destin area” and creates “high exposure for bicycles and pedestrians trying to cross the highway.”

“This intersection can be described in two words, is dangerous and it’s dysfunctional,” said Larry Jones, Destin’s city manager, who spoke at the meeting.

The SS4A grant requires a 20% local match, which the county and city have agreed to split. Under the agreement, the county would fund 90% of the local match at $3.6 million, while Destin would contribute $400,000.

• A recent SS4A assessment specifically highlighted the intersection due to its high risk for pedestrian and bicycle accidents. The intersection was included in the county’s 2018 voter-approved surtax needs list, though a specific improvement wasn’t identified at the time.

Commissioner Drew Palmer called the project “extremely important,” noting that pedestrians sometimes “take their lives in their own hands by running across the road” at the intersection.

Bitterman referenced a similar pedestrian underpass project completed at Inlet Beach in Walton County for about $12 million, saying approximately 95% of people use the underpass rather than crossing at grade level.

“It’s actually quicker to go underneath the road than it is to go at grade,” Bitterman said.

Chairman Paul Mixon raised concerns about potential right-of-way acquisition challenges, noting that businesses are built close to the intersection corners. The board modified the agreement to include the broader “area of US 98 and Stahlman Avenue” rather than limiting the project to the immediate intersection.

The Destin City Council previously approved engaging engineering firm Kimley-Horn for $38,750 to prepare the federal grant application. The grant application deadline is June 26.

The Infrastructure Surtax Advisory Committee recommended the county’s funding allocation at their May 27 meeting. The Destin City Council will vote to approve the interlocal agreement on their end at their June 16 meeting.