Earlier this year, Panama City made a claim for its economic losses only. The city asked for $1.7 million, but through negotiations will receive $1.9 million.
"The city lose some revenue, some the merchant fees and stuff, and this help us recoup that, it's great," said Panama City Mayor Greg Brudnicki.
Accepting the offer from BP means the city will completely release BP from any further responsibility or liability for economic losses as a result of the oil spill.
This money will not have any effect on the funds the city will receive from environmental fines, the Clear Air and Clean Water Act, or from RESTORE Act funds.
After taxes are taken out, the city will receive around $1.5 million.