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Commissioners approve Bluewater Bay change to add medical office space

February 15, 2026 | Okaloosa County, Florida


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Commissioners approve Bluewater Bay change to add medical office space
The Okaloosa County Board of County Commissioners approved a notice of proposed change to the Bluewater Bay Development of Regional Impact (DRI) master plan that reallocates nonresidential square footage on the Magnolia parcel. Growth management staff described the Magnolia Commercial Office parcel (9.7 acres) and said the request would increase medical office allocation to 33,160 square feet — an increase of 18,168 square feet — while decreasing commercial allocation by 17,250 square feet, leaving a net nonresidential difference of 918 square feet and no change to the approved 123 condominium units on the parcel.

Staff told commissioners the traffic analysis found no net impact because medical office typically generates slightly less traffic than the removed commercial office allocation; planning staff also found the request consistent with the comprehensive plan and not a substantial deviation. The planning commission had unanimously recommended approval at its April meeting. No members of the public spoke during the hearing portion for this item, and Commissioner Ponder, whose district includes the site, moved to approve the amendment; Commissioner Kechel seconded, and the board approved the change unanimously (one commissioner briefly stepped away from the dais). The staff report noted the overall allowances for the Bluewater Bay DRI remain unchanged from the 2006 resolution (Resolution No. 06‑114).

The approved amendment exhausts the remaining commercial square footage allocated to the Magnolia parcel and formalizes the reallocation to medical office uses. The board’s action does not change residential unit entitlements for Bluewater Bay.

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