The Okaloosa County Board of County Commissioners approved a contract Tuesday for the demolition of a portion of the old Fort Walton Beach Hospital, which has sat vacant for several years, with one commissioner suggesting the site could eventually be used for affordable housing.

• The $157,770 contract was awarded to Jobe’s Dirt Works, LLC as part of the consent agenda at the March 18 commission meeting. The company was selected after the county received six bids for the project, with Jobe’s determined to be the lowest and most responsive bidder.

Located at 215 Hospital Drive NE in Fort Walton Beach, the facility will be demolished following asbestos abatement work completed by Cross Environmental Services in May 2024. That abatement allowed the county’s Facilities Maintenance department to move forward with contracting the demolition.

During the “Commissioners Minute” portion of the meeting, Commissioner Carolyn Ketchel proposed that the county consider using the property for affordable housing once the demolition is complete.

• “I know we’re all desperately looking for available land to place affordable housing on,” Ketchel said. “It would be my hope that we would consider expanding that property a little bit. There’s some other old buildings there. I would like us to consider possibly putting some affordable housing on that property.”

Ketchel noted the site’s central location and proximity to the Health Department would benefit Fort Walton Beach and the entire South End area. She referenced a senior apartment complex built in Sylvania Heights as an example of what might work at the location.

County Administrator John Hofstad responded that additional work remains at the site, as some offices will still be occupied after the current demolition phase. Hofstad assured the commission that his office would coordinate with them on the best use of the property going forward.

The approved demolition work includes removing existing structures, weatherproofing the remaining building occupied by Elder Services by constructing a brick wall to seal the structure, and clearing, removing and leveling the disturbed area.