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New Airport- all it's hyped to be?
- Thread starter AAbsolute
- Start date
SHELLY
SoWal Insider
It doesn't matter how sharp he is--the other four on the panel are morons and he has only one vote against their four.
.
Matt J
SWGB
You can still graduate as a D student, even from Harvard. ;-)
Even if that wasn't the case why would a Harvard Law School graduate be selling cars?
Smiling JOe
SoWal Expert
I'd rather have a lawyer who made Ds at Harvard Law, than one who made Bs at University of ________. I'm not sure why he would want to own two really large auto dealerships, but I'd guess it is because they were very profitable. Now, back to the airport...
Shelly I am not saying that I personally prefer a Tamp or Irvine like build-out...actually I do not...however, that is not for me to decide. The airport, JOE's, LUK's and others' involvement has to do with business decisions. It is short sighted to beleive that the PCB airport will be an airport to nowhere...it is just a matter of time, demographics and geography will ultimatly win. we are in a much needed correction now but mkts and real estate in particalur are always changing and this current environment will not last. I guarantee you in 10, 15, 20 yrs PCB and the surrounding area will continue to experience massive developement, will attract a large volume of passengers to justify the airport, and will even attract significat corporate attention. Its been proven time and time again. Obviously no one can know the future for sure, but my interpitation of history backs up these points.
drivingtheview
Beach Lover
SJ's dead on with his summation about the airport and "future" growth opportunities. I've heard many tales spun about this airport as a soon-to-be savior for the reeling real estate market. This is laughable-especially when paired with the current national economy and statewide homeowner insurance crisis (not to mention the foreclosures, etc., etc...). It won't hurt, but such residual impacts will obviously not occur at the first landing, much less the ground breaking!!! (come on, I know many of you heard the spin just a few years back about the huge buzz and appreciation the mere airport approval would bring to local real estate values) . The prospects of future growth and development for Bay county and surrounding areas are real and a well placed investment. I also understand that if you do not like the prospects of future growth or potential environmental impacts of such growth, this is a bad thing. Regardless, it's coming-just not tomorrow. Birmingham Alabama had an opportunity to build the souths' largest "international" airport back in the 1960's and passed on the opportunity . Little ole Atlanta stepped up and said bring it over here. Obviously, growth and development in and around Atlanta has blown the doors off Birmingham (regardless if you love this or hate it). I'm not as familiar with the history of Tampa/St. Pete, but I know that this area exploded in growth only after construction of their "international" airport (not so coincidentally, built on St. Joe owned property). Bay County knows this and so does St. Joe. It is a safe bet that in 20 years or so, we will all be saying that Bay county and the surrounding areas don't resemble what we see here today.
Matt J
SWGB
A few years ago the real estate prices were thru the roof, not necessarily attributed to the pre approval. I whole heartedly agree that this is a long term issue not a poof real estate is thru the roof again issue.
Babyblue
Beach Fanatic
Birmingham Alabama had an opportunity to build the souths' largest "international" airport back in the 1960's and passed on the opportunity . Little ole Atlanta stepped up and said bring it over here. Obviously, growth and development in and around Atlanta has blown the doors off Birmingham (regardless if you love this or hate it). I'm not as familiar with the history..........
So true!
So true!
Thanks for your reply to my question about LUK and their purchase of the PC Airport. I'm trying to get around the idea, because I think Ian Cumming is super smart and I'm trying to figure out why so much carry cost at this time. Wasn't it $75,000,000? The interest carry's got to be 4,500,000 per month. Can the business of the airport cash out at that monthly rate at this time? If it's ultimate plan is development, but that won't commence until after the airport is closed, and the business doesn't generate break even at this point then doesn't that mean the basis is going to be more than the 75,000,000? I understand that he controls air rights near Washington, D.C. and I am not informed enough to understand profiting on that type of arrangement. What am I missing? Is there more here about some future litigation or arrangement than meets the eye?
I'm not sure if the $75M figure is exact but the purchase price was around that amount...LUK's carry isn't $4.5M per month its more likely around $4.5M per year which is 6% annually. LUK has great credit and access to cheap money. I'm not exactly sure when the money changed hands...I would assume it has just because I'm sure the purchase price funds needed to help fund current construction, but i doubt LUK has anything to do with the operation of the airport currently...there investment is soley based on development opportunity in the future. So if they spent $75M and have annual carry of $5M per year and they start development 5 years from now...their new basis is $100M in 800 or so acres of $2.75/SF or $120K per acre....that dog will hunt when you start consider 8 units an acre, condos, retail, etc etc.
again its not a matter of if...its only a matter of when.
Smiling JOe
SoWal Expert
LUK paid only a small portion up front, and the majority of the remainder of the payment will come over time, as they pay a portion of their future sales towards the purchase price.
Regarding real estate prices jumping because of the opening of the new airport, it won't happen in this area, as today's prices are already factoring in the airport. As more property around the airport is developed, prices will likely increase in those areas and work there way outward, over time. There will be no shift in prices over night.
Regarding real estate prices jumping because of the opening of the new airport, it won't happen in this area, as today's prices are already factoring in the airport. As more property around the airport is developed, prices will likely increase in those areas and work there way outward, over time. There will be no shift in prices over night.