Business 2.0 came out with an article that states that Panama City is the number one place to own based on projected growth in the next 5 years. A link to the article can be found here.
The projection for Panama City seems a little ambitious, however, if any area will do that I would say it would be ours. With all the new developments such as the airport, and Pier Park coming online within that time, this area will experience great growth.
Thursday, October 26, 2006
Wednesday, October 18, 2006
Higher Construction Cost on New Airport
The cost of construction for the new Bay County Airport has risen $13 million to $331 million. The rise in materials cost is the major contributing factor. Still, all things considered, this doesn't seem too bad considering the Grand Lagoon Bridge construction cost went up 49%, this is only 4%. Why is that number so different anyway? Are the materials used that different? Or is there other factors that I’m not aware of?
A link to the airport article can be found by clicking here. The article about the Grand Lagoon Bridge can be found here.
Some think we should reflect the increase in cost in the asking price for the old airport site. That's just the thing, there was no asking price. The board had an idea on what they would need to make the relocation happen, however, the process was to include bids in order to bring the highest price the market would yield. In addition, the bidding process on this particular transaction did not allow competing bids an awareness of what the competition was offering. This allows the natural process of professionals offering what they think the property is worth given the current market conditions.
At this point, if the board goes back to the bidders and states that their offers are not enough to cover rising construction costs, they risk losing some if not all competent bidders all together. One has to remember, the bidders placed a bid based on what they believed the property to be worth, which in turn was based on their market analysis and future viable plans for the property. If they are asked to pay more, they may say, "No thanks, I've got another opportunity somewhere else that is better at this point."
Obviously, the money has to come from somewhere, and no Cathy, in my infinite wisdom, I don't have any suggestions. All I'm saying is that we have to be careful or the buyers may walk.
A link to the airport article can be found by clicking here. The article about the Grand Lagoon Bridge can be found here.
Some think we should reflect the increase in cost in the asking price for the old airport site. That's just the thing, there was no asking price. The board had an idea on what they would need to make the relocation happen, however, the process was to include bids in order to bring the highest price the market would yield. In addition, the bidding process on this particular transaction did not allow competing bids an awareness of what the competition was offering. This allows the natural process of professionals offering what they think the property is worth given the current market conditions.
At this point, if the board goes back to the bidders and states that their offers are not enough to cover rising construction costs, they risk losing some if not all competent bidders all together. One has to remember, the bidders placed a bid based on what they believed the property to be worth, which in turn was based on their market analysis and future viable plans for the property. If they are asked to pay more, they may say, "No thanks, I've got another opportunity somewhere else that is better at this point."
Obviously, the money has to come from somewhere, and no Cathy, in my infinite wisdom, I don't have any suggestions. All I'm saying is that we have to be careful or the buyers may walk.
Monday, October 16, 2006
New Bay County Airport = Lower Fairs?
Some of our readers don't think the new airport will bring lower fairs, however the authorities involved seem to disagree.
We live in an age where we will make a little sacrifice of time to save a few hundred bucks. Why not spend 2 hours and $40 on gas to save $200 on air fare. If we have competitive fares at the new airport, people will travel here to save money. This is inevitable, we as humans are too cheap not to.
A link to the whole article can be found here.
"A poll conducted last month by the Tallahassee Area Chamber of Commerce concluded that 38 percent of the 625 adults questioned would be very likely to travel here to use the new airport if it offers cheaper fares or a direct flight to a destination. Another 20 percent surveyed on the same question said they would be 'somewhat likely' to make the trip for cheaper fares or more direct routes. 'That’s the point of building the airport,' said Airport Authority Chairman Joe Tannehill and Vice Chairman Bill Cramer. 'That’s the bottom line of why we’re moving,' Tannehill said, 'to be more competitive.' The Panama City-Bay County International Airport loses some 10,000 passengers per month to other area airports with cheaper rates, Tannehill said."
We live in an age where we will make a little sacrifice of time to save a few hundred bucks. Why not spend 2 hours and $40 on gas to save $200 on air fare. If we have competitive fares at the new airport, people will travel here to save money. This is inevitable, we as humans are too cheap not to.
A link to the whole article can be found here.
Panama City Affordable Housing
It's no secret the real estate values in the Bay County area have grown tremendously in the past few years. This is great for many, but for some it means they've got to move to afford rent, or rent because they can't afford to buy. Affordable housing has always been an issue because the term "affordable" typically denotes less profit. In Bay County, it appears as though the local separate city authorities are teaming up to try and make affordable housing work here. A link to the article can be found here.
Friday, October 13, 2006
Pier Park, Panama City Beach
I was going to add this into the last post, but it's just too good not to have a post of its own. I was doing some digging and found an e-brochure for Pier Park. It's pretty good and can be found by clicking here. Please be warned, it is a large file, so be patient!
Pier Park Pier, Mexico Beach Millage, Port Pellets, and LaVela Tax
Last year's hurricane activity brought destruction to much, including our piers, specifically Dan Russell Pier - Pier Park Pier. The pier is 1,466 ft long; however the last section has been closed for almost a year. Repairs need to be made and upland infrastructure upgrades are being discussed. Click here to read more about it.
Speaking of Pier Park, what's going on there? Target is almost completed; in fact I think it opens this weekend or next. There certainly is a lot of dirt moving there, and the 16 theatre movie cinema has broken ground due to open by May 07. You can read the press release here.
Mexico beach lowered its millage, but not as low as originally planned. The article is here.
The area is growing and so is our port. After hurricane Katrina last year, our port's activity doubled. A Swedish Bio-energy company has agreed to use the port to export a minimum of 300,000 tons of compressed wood pellets from our port. The pellets will be made of wood waste such as pulpwood, chips and sawmill residue. They will then be used to create energy in Europe. We should take note. When other countries are using our waste to create energy, we need to pay attention. The article can be found here. Another article regarding the pellet plant can be found here.
There is discussion in the area on the fairness of the Bay County property appraiser's office. Read about what Club LaVela has to do with this here.
Speaking of Pier Park, what's going on there? Target is almost completed; in fact I think it opens this weekend or next. There certainly is a lot of dirt moving there, and the 16 theatre movie cinema has broken ground due to open by May 07. You can read the press release here.
Mexico beach lowered its millage, but not as low as originally planned. The article is here.
The area is growing and so is our port. After hurricane Katrina last year, our port's activity doubled. A Swedish Bio-energy company has agreed to use the port to export a minimum of 300,000 tons of compressed wood pellets from our port. The pellets will be made of wood waste such as pulpwood, chips and sawmill residue. They will then be used to create energy in Europe. We should take note. When other countries are using our waste to create energy, we need to pay attention. The article can be found here. Another article regarding the pellet plant can be found here.
There is discussion in the area on the fairness of the Bay County property appraiser's office. Read about what Club LaVela has to do with this here.
Tuesday, October 10, 2006
Bay County Airport - Different Points of View (Cont.)
Along with any huge decision comes an immense number of pros and cons. There are always very compelling arguments to both sides of the story.
A reader sent me an email with some interesting input and included an article that was in the paper October 3rd. The article speaks into why the author believes air fare will not decrease when the new airport is built. Interesting.
A link to the article can be found here. In addition, Cathy had quite a bit of knowledgeable input on the subject as well.
I apologize if I gave the impression that I am an authority on this subject. All I know is what I read and learn from others. Also, I think it should be said that I have no affiliation with the airport, the relocation board, or St. Joe.
By the way, there are direct flights out of VPS. I have family that fly direct from TX many times a year. And guess what, it's cheap AND fast.
A reader sent me an email with some interesting input and included an article that was in the paper October 3rd. The article speaks into why the author believes air fare will not decrease when the new airport is built. Interesting.
A link to the article can be found here. In addition, Cathy had quite a bit of knowledgeable input on the subject as well.
"Obviously, you did not see the article in the News Herald By Pete Dial who is very familiar with airport operations. He states a new airport probably will not reduce airline prices but just the opposite. I believe that he knows much more than you do and that you by your own admission are not a frequent flyer. I, my husband and both of my adult children are and I can tell you that I am deadly opposed to the new airport. The need is not here yet. It is a proven fact. Look at the declining numbers of flights and passengers over the last five years. Figures don not lie, don't tell me it is because of everyone going somewhere else because the prices are cheaper and that once we have the new airport all this will change. I don't believe for a minute prices will be cheaper. Do you have any guarantees of that? Do you really believe there will be direct flights to somewhere from the new airport. There are no direct flights from VPS or PNS now either. Why would we have them here with a new airport. If there was a need for direct flights from here we would have them now. They use the puddle jumpers now because that is all they need to accommodate the air traffic here. They stopped late night flights coming in here because there was not a need. Our present airport is under utilized right now. I see no airlines beating the doors down to come here now because the need does not exist. What will make that change. Higher fees with a new airport is only going to discourage airlines not encourage airlines. . ."A link to the rest of the email can be found here.
I apologize if I gave the impression that I am an authority on this subject. All I know is what I read and learn from others. Also, I think it should be said that I have no affiliation with the airport, the relocation board, or St. Joe.
By the way, there are direct flights out of VPS. I have family that fly direct from TX many times a year. And guess what, it's cheap AND fast.
Bay County Boat Mooring Plan
With the shortage of boat storage increasing every year and the process of creating new storage possibilities becoming more difficult, mooring issues in public waterways becomes a larger problem. The county commission is discussing a resolution, a link to the article can be found here.
Grand Lagood Bridge - Wishful Thinking?
The bridge at Grand Lagoon has needed expansion for quite some time. Currently the opening is 107 feet and is slated to be expanded to 207 feet. In addition there will be two lanes of traffic each way with walkways and bike paths on either side.
Here's the problem: Estimated construction costs have risen from $12.4 million to $18.5 million because of increases in construction costs. It is interesting that the consulting firm for the county on this project seems to be way off on their numbers.
A link to the article can be found here.
Here's the problem: Estimated construction costs have risen from $12.4 million to $18.5 million because of increases in construction costs. It is interesting that the consulting firm for the county on this project seems to be way off on their numbers.
A link to the article can be found here.
Sunday, October 08, 2006
Bay County Airport - Different Points of View
Today I received an email asking me to post two articles found on the airport that discuss a point of view that he agreed with. Before you read it, I'll just say that it is a doom and gloom, shouting conspiracy kinda' article.
Let me just go ahead and say, if you hadn't guessed already, that I am very much for the new airport and the growth that it will bring this area. The articles mention that St. Joe has tremendous influence on the relocation and has motives that align with making their pocket books thick. Of course that is one of their intentions. Think about it. The purpose of being in business is to make money. If you have some complex of "rich people", "the man", or "the corporation", get over it. The American way is to have an idea, capitalize on it and get rich; some people got it, some people don't.
Additionally, St. Joe can build all the homes that they want, but if they don't have anyone to purchase them, the whole airport idea is flushed down the toilet. I could be wrong, but I'm sure St. Joe has done their homework on whether there will be a market for whatever they are planning to develop in the West Bay area.
Another thing the articles state is that the traffic at the Panama City Airport has decreased in the past few years. Of course it has. The only time I fly out of here is when someone else is paying my fare; it costs twice as much to fly out of here than Ft. Walton or Pensacola. If that's what I do, I'm sure many others do it as well. I'm not even a frequent traveler. Not to mention the small puddle jumpers that will only take you to Atlanta or Memphis. I'm getting motion sickness just thinking about them.
Also, you have to remember that Bay County residents will not be the only patrons to this new airport. People will drive from Destin, Ft. Walton, Dothan, Tallahassee and more to fly out of there.
I'm not as educated as some on this topic, these are just my opinions based on the knowledge that I have. I respect other people’s opinions and am grateful that we live in a nation that we can debate such issues. It is my opinion that the airport will bring great growth and progress to this area. I’m opening a can of worms, but what do you think?
The link to the article can be found here.
Let me just go ahead and say, if you hadn't guessed already, that I am very much for the new airport and the growth that it will bring this area. The articles mention that St. Joe has tremendous influence on the relocation and has motives that align with making their pocket books thick. Of course that is one of their intentions. Think about it. The purpose of being in business is to make money. If you have some complex of "rich people", "the man", or "the corporation", get over it. The American way is to have an idea, capitalize on it and get rich; some people got it, some people don't.
Additionally, St. Joe can build all the homes that they want, but if they don't have anyone to purchase them, the whole airport idea is flushed down the toilet. I could be wrong, but I'm sure St. Joe has done their homework on whether there will be a market for whatever they are planning to develop in the West Bay area.
Another thing the articles state is that the traffic at the Panama City Airport has decreased in the past few years. Of course it has. The only time I fly out of here is when someone else is paying my fare; it costs twice as much to fly out of here than Ft. Walton or Pensacola. If that's what I do, I'm sure many others do it as well. I'm not even a frequent traveler. Not to mention the small puddle jumpers that will only take you to Atlanta or Memphis. I'm getting motion sickness just thinking about them.
Also, you have to remember that Bay County residents will not be the only patrons to this new airport. People will drive from Destin, Ft. Walton, Dothan, Tallahassee and more to fly out of there.
I'm not as educated as some on this topic, these are just my opinions based on the knowledge that I have. I respect other people’s opinions and am grateful that we live in a nation that we can debate such issues. It is my opinion that the airport will bring great growth and progress to this area. I’m opening a can of worms, but what do you think?
The link to the article can be found here.
Thursday, October 05, 2006
Out with the old, in with the new - Bay County Airport that is.
I wanted to be one of the first to post this online, even though I don't have much news yet.
As most of you know, 4 bids went in for the sale of the existing airport site on Monday September 25. Those bids ranged anywhere from $30 million to $61 million. Some included a full range of possible development plans and others stated nothing other than that they will "provide adequate parks and recreational areas as determined by their experienced and knowledgeable land planner."
I would think that you would want to be a little more specific, but hey, what do I know?
I haven't read anywhere that they'd accepted any offers, just that they were releasing the bid specifics to the public. As there is not much news on this just yet, I'll be updating the blog first thing in the morning.
By the way, to get a glimpse at the highlights of the 4 bids, click here.
- Edited 10/06/06
The News Herald wrote an article on the release of information on the bids, they don't provide much information, however, a link to the article can be found here.
As most of you know, 4 bids went in for the sale of the existing airport site on Monday September 25. Those bids ranged anywhere from $30 million to $61 million. Some included a full range of possible development plans and others stated nothing other than that they will "provide adequate parks and recreational areas as determined by their experienced and knowledgeable land planner."
I would think that you would want to be a little more specific, but hey, what do I know?
I haven't read anywhere that they'd accepted any offers, just that they were releasing the bid specifics to the public. As there is not much news on this just yet, I'll be updating the blog first thing in the morning.
By the way, to get a glimpse at the highlights of the 4 bids, click here.
- Edited 10/06/06
The News Herald wrote an article on the release of information on the bids, they don't provide much information, however, a link to the article can be found here.
- Edited 10/07/06
I was doing some digging and found an interesting website. Check it out at Aero-News.net. Also, click here to see what they've got to say about our airport.
Wednesday, October 04, 2006
Panama City Beach Statistics
I was doing some digging and found some interesting stats on pcbeach.org.
- 27 miles of world famous white sandy beaches along the Gulf of Mexico
- 6 million tourists
- Direct tourist expenditures of $537 million
- $1.5 billion economic impact from tourism
- $163 million in accommodation sales
- $413 million in goods and services
- Over 14,000 local jobs
- 612,602 households within a 100 mile radius of Panama City Beach
- 14 miles to Panama City and 41 miles to Destin
Visitor Profile
- Overnight leisure travel is 77% of all traveler spending in Panama City Beach
- Panama City Beach travel parties include 3.11 persons; families account for the largestnumber of travelers
- The average length of stay is 4.1 nights
- 82% of isitors to the area arrive via automobile
- 74% of Panama City Beach visitors have visited the destination more than once
Awards for Panama City Beach
- #4 Most Popular Vacation Rental Destination - Hotels.com - 2004
- Top Beach - American Coastal Coalition - 2002
- #3 Golf Town un the US - Golf Digest Magazine - 2002
- Clean Beach Award - The Clean Beaches Council - 2002
- #3 Beach in America - The Surfrider Foundation - 2000
- Top Five "Best Beaches" - Southern Living - 2000
- #1 Beach - Dr. Beach (Stephen Letherman) - 1995
Top Markets for Panama City Beach Tourism
- Top Ten States: Georgia, Tennessee, Florida, Alabama, Ohio, Kentucky, Texas, Indiana,Illinois, Michigan
- Top Five Cities: Atlanta, Birmingham, Nashville, Knoxville, Louisville
- Top Market Segments: Leisure traveler, sports market, special events winter residents, and meetings and conventions
Monday, October 02, 2006
Bubble Trouble?
Frantic speculators and doom and gloom Realtors are looking for new jobs for fear that the real estate bubble is popping. The market right now is going through a natural cyclical correction, and perhaps "bubble" isn't the correct term to define our real estate market. The definition of a market "bubble" consists of values dropping literally over night. The current changes in the real estate market are not reflecting this behavior.
Kendra Todd was the first female winner of Trumps' "Apprentice" and has some interesting input with regards to the real estate bubble. The article can be found here.
Kendra Todd was the first female winner of Trumps' "Apprentice" and has some interesting input with regards to the real estate bubble. The article can be found here.
Fowler's Wild Kingdom coming here?
October 2, 2006
In the news recently have been reports of Jim Fowler bringing an animal preserve to the Florida Panhandle area, specifically Washington County. A link to the article can be found here.
Also, there have been rumors of a Busch Gardens in Defuniak Springs and something Disney north on Highway 79. It makes sense to put large attractions such as these close to this area. The feeder markets could range from Pensacola to Jacksonville and all of southern Alabama and Georgia. The local tourism market in this area would thrive and we would have someone to put in all those condos that are nearing completion.
In the news recently have been reports of Jim Fowler bringing an animal preserve to the Florida Panhandle area, specifically Washington County. A link to the article can be found here.
Also, there have been rumors of a Busch Gardens in Defuniak Springs and something Disney north on Highway 79. It makes sense to put large attractions such as these close to this area. The feeder markets could range from Pensacola to Jacksonville and all of southern Alabama and Georgia. The local tourism market in this area would thrive and we would have someone to put in all those condos that are nearing completion.
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