By Associated Press - Thursday, January 21, 2021

PANAMA CITY, Fla. (AP) - Officials have shut down a renovation project that set out to transform a Florida Panhandle building into a federal courthouse.

The General Services Administration told officials in Bay County last week that the government has decided not to relocate any federal agencies to Panama City, the News Herald reported.

In the letter, GSA officials said they had reached out to other federal agencies across the state’s Panhandle region about occupying the space in the renovated juvenile courthouse. But no agencies accepted the offer, the newspaper reported.

The agency then terminated the lease on the building following two years of planning to turn the building into a courthouse for the U.S. Federal District Court for the Northern District of Florida.

“The federal government has indicated its intent to assist Bay County in recouping its investment in the building,” County Manager Bob Majka said. “We are confident that an amicable resolution will be reached for all parties involved.”

The GSA asked Bay County officials to send a proposal by Jan. 29 about what it considers fair compensation.

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