A 13-acre Bayou Chico site — including a former Runyan Shipyard long considered an industrial eyesore — is getting a $40 million face-lift.

South Florida developer Colin Farnum and his Destin-based partners are moving ahead with plans to build Gulfview Marina, whose centerpiece will be a building providing dry storage for up to 1,000 boats.

Farnum said site preparation and environmental cleanup are under way.

"This will be a state-of-the-art boating center that will serve our community for years to come," said Farnum. "Our dry storage building will be constructed to withstand 140 mph winds."

Farnum said the project will be built in several stages, the first with 300 boat slips, and more as the marina fills up.

"We completed a market study of the Panhandle and found that the marinas are 95 percent full. During the high season, and especially during hurricane season, you cannot find a spot to park your boat," he said.

In addition to the marina, Farnum said retail space is planned, but how much will be determined by another marketing study.

Farnum's plans are welcome news to city officials, who earlier this year designated the property under the state's Brownfield Redevelopment Act.

That designation provides Farnum and his partners tax credits and incentives depending on the extent the property is environmentally remediated.

The site also is within the city's Enterprise Zone, making it eligible for further job tax credits if employees who live in that zone are hired by the marina.

Kyler Cole, the city's economic development coordinator, said the project "... is a clean industry reusing a contaminated site and (they) can take advantage of all of the incentives."

The Florida Department of Environmental Protection is monitoring the site remediation and asbestos abatement at the old Runyan Shipyard site, said Karen Shea, cleanup section supervisor for the agency.

Under the Brownfield program, the project is entitled to reclaim the cleanup costs that could provide the corporation with tax credits worth up to $500,000.

Permitting and construction of the first phase will take approximately 12 to 18 months, said Farnum.

Developers hope to begin pre-construction sales of deeded boat slots within the next three to four months.

"We hope that our project will spur other redevelopment and revitalization along this important body of water," Farnum said.