County Commissioners voted 4 to 1 in favor of the concept offered by developer Bob Blackerby. Commissioner George Gainer opposed the plan.
Blackerby plans to build a new city hall and help build a new public library on land near Johnson Bayou. The land presently houses the old Bay Line Train Depot.
In return, the city will give Blackerby land at the downtown city marina, where he plans to build a condominium project.
In other action, Bay County Commissioners voted unanimously in support of a resolution opposing development on Shell Island.
Commissioners were unanimous in voicing concerns over some of the properties included in Panama City's Millville redevelopment plan, or CRA. They said they don't feel the Cove Gardens Apartment complex, which was turned over by the Air Force to a private developer, qualifies as a blighted area.