JOE restructures - 750 positions affected

[SHELLY]

...had a visit with an employee and she was reeling from changes in management, real estate sales, and department heads.

How so?

.

 

[Miss Kitty]

...Molly and I are jumping off the f balcony!!!! ;-)

 

[goofer]

Brit Greene will succeed Rummell. He is President and Chief Operating Officer of St. Joe.

 

[Santiago]

Everyone keeps saying that Joe turning over management of WaterColor is a huge event. The reality is that a new management company was brought in almost a year ago to handle property management, and the HOA is about to be turned over to the property owners pursuant to the HOA documents that were put in place over seven years ago (this happens in all planned communities once a certain percentage of ownership is held by persons other than the developer). Joe will continue to own the hotel, which will be managed by a third party hotel company. Am I missing something, or this not much of an impact on the day to day operations of WaterColor? As for the impact on the real estate in WaterColor, Joe's assets (with the exception of about four houses in Phases I, II and III and some more houses and lots in Phase IV) that will be dumped primarily are in other developments.

I think that you are dead on. Joe's decision to partner with companies who are frankly better at management than Joe is a good thing. As evidenced by their constant changing of policies, they are really average at managing resort properties. It is sad to see so many employees who we've become friends with be caught up in it.

 

[George]

When these types of things happen, many good people lose jobs, and that is the sad part about what is happening. From the business perspective, however, I do not view any of these changes as surprising or negative in any way. WaterColor and WaterSound already have completed amenities and infrastructure, so the real issue relates to who will manage and maintain those going forward. I can almost guarantee you that the company that takes over managing the beach club and inn at WaterColor will be a company with a very prominent reputation as a first-class operator of resort properties. St. Joe never had experience running hotels or resorts prior to WaterColor. Thus, the new partners that are brought in likely will do a better job of managing the properties and maintaining the amenities and service levels. The real estate market is down now, we all know that and many prior message threads have been devoted to that subject. But these recent changes by Joe relate more to the management and operation of communities (particularly at WaterColor, where Joe had already sold off its spec homes and lots -- with the exception of Phase IV). Joe's strong suit never has been to manage and operate resort communities and there are companies that do nothing but those tasks that are better suited to perform those tasks.

I also would guess that many of the Joe employees at WaterColor who are in sales will land on their feet with other realty companies in the area. The employees at the inn, beach club, golf, etc. probably will land on their feet with the new companies that take over these operations.

In short, I think all of the negativity surrounding the real estate market is translating over into how Joe's recent announcment is being viewed.

 

[beclareesq]

I don't read this as a firesale "dump". I see that there is recognition that they, Joe, don't like the risk associated with the cradle to grave r/e development. It sounds like they want to go from developer to landlord if you will. By partnering with those historically successful in the business it should allow them to predict better and avoid so much risk.

Somebody on a prior post suggested bulk sales to a wholesaler. I don't know about that. Who would want to be in that spot. Those sales would be recorded and then set the market. My guess is that Joe just get's alot more aggressive in the developments where the big capital expense is behind them and in those where much more is needed look to partner. I see it as a very good time to try and get in to Watercolor.

 

[flyforfun]

When these types of things happen, many good people lose jobs, and that is the sad part about what is happening. From the business perspective, however, I do not view any of these changes as surprising or negative in any way. WaterColor and WaterSound already have completed amenities and infrastructure, so the real issue relates to who will manage and maintain those going forward. I can almost guarantee you that the company that takes over managing the beach club and inn at WaterColor will be a company with a very prominent reputation as a first-class operator of resort properties. St. Joe never had experience running hotels or resorts prior to WaterColor. Thus, the new partners that are brought in likely will do a better job of managing the properties and maintaining the amenities and service levels. The real estate market is down now, we all know that and many prior message threads have been devoted to that subject. But these recent changes by Joe relate more to the management and operation of communities (particularly at WaterColor, where Joe had already sold off its spec homes and lots -- with the exception of Phase IV). Joe's strong suit never has been to manage and operate resort communities and there are companies that do nothing but those tasks that are better suited to perform those tasks.

I also would guess that many of the Joe employees at WaterColor who are in sales will land on their feet with other realty companies in the area. The employees at the inn, beach club, golf, etc. probably will land on their feet with the new companies that take over these operations.

In short, I think all of the negativity surrounding the real estate market is translating over into how Joe's recent announcment is being viewed.

George, you are 100% correct! This will all taste like lemonaid by this time next year!:roll:

 

[Busta Hustle]

anyone want to post some info from the watercolor homeowner's meetings from last weekend? anybody? buehler?

 

[goofer]

I was at the meeting even though I am a Watersound owner. It was the first opportunity to get a slant on things after the JOE announcement. It was hardly mentioned in the context of lay offs etc. There was some discussion of Noble House and Troon but all in all the meeting was a non-event. Very benign and civil. The greatest concern and source of complaints had to do with renters at Water Color and lack of parking , bikes in the streets, crowded beach club , over crowding in the rental houses because some houses had 15-20 people when by law only 2 people per bedroom are allowed, and noise from renters.

 

[Miss Kitty]

What goofer said. Now that Joe is gone, the unhappies are bashing the owners that rent. :roll: