ST. JOE 2nd quarter report

[Jim Tucker]

JOE?s real estate markets remain challenging. As a result, during the second quarter JOE implemented the following steps:

? JOE completed the prepayment of its $240 million senior notes, virtually eliminating our debt; ​

? JOE significantly reduced its employee headcount and its annual payroll expense run rate; ​

? JOE sold non-strategic rural lands for a total of $39.0 million; and ​

? JOE successfully implemented its succession plan in May, with Britt Greene assuming the role of CEO and Peter Rummell continuing as chairman.
Concurrently, JOE positioned itself to benefit from the return of a healthier real estate market:
? JOE commenced resort operations at WindMark Beach and launched a national promotion of the resort with its strategic partner, Southern Progress Corporation, publishers of Southern Living and Coastal Living magazines; ​

? The State of Florida appropriated additional funds that can be used to extend the runway length and improve highway access to the new Panama City ? Bay County International Airport; and ​

? Construction of the new airport continues on schedule and on budget.
​

During the fourth quarter of 2007, JOE announced it was marketing certain of its non-strategic rural lands for sale. During the quarter ended June 30, 2008, JOE sold 29,398 acres for a total of $39.0 million as a part of this program.
After the end of the quarter, JOE executed a contract for the sale of 67,365 acres of non-strategic rural conservation land in Liberty, Jefferson, Gulf and Franklin Counties. The sale will be closed in two transactions for a total price of $130.4 million. The first sale of 39,359 acres for $67.3 million is scheduled to be completed in the fourth quarter of this year. The second sale of 28,005 acres is scheduled for the second quarter of 2009 at a price of $63.1 million. These transactions are subject to ongoing due diligence review and customary closing conditions. ​

"We look forward to closing this sale and believe it represents good value for our shareholders," said Greene. "At this time we do not expect to close any other large-tract land sales in 2008."

Resort and primary residential sales generated $7.2 million in revenue in the second quarter. "The spring and summer selling season in our resort markets has not materialized as we had hoped," said Greene. "Although we have seen significant resale activity in WaterColor and WaterSound Beach, the market remains challenged by high inventory and cautious buyers." ​

After the close of the second quarter, JOE and Glimcher Realty Trust entered into a strategic partnership to develop an anchored retail shopping center across from Pier Park along Highway 98 in Panama City Beach. JOE and Glimcher will jointly develop 58 acres that will be marketed to large national retail outlets. The agreement is subject to minimum leasing requirements, financing and other customary conditions.

 

[Jim Tucker]

WestBay Development​

[FONT=Times New Roman,Times New Roman]

Construction continues on the relocation of the Panama City-Bay County International Airport in WestBay. All clearing has been completed on the 1,330-acre Phase I of the airport, including all wetland impacts, as authorized by federal and state permits. Over 1.8 million cubic Page 4
yards of material have been excavated and redistributed over the site. The two-mile main airport entry road is nearing completion and is now carrying construction traffic. Two legal challenges to the relocation of the airport remain pending; however, neither is currently affecting construction.
The local Airport Authority has indicated that the initial phase of the new international airport is scheduled to open in mid-2010.
During the second quarter, the State of Florida appropriated an additional $4.5 million in funding for the construction of additional operational enhancements for the airport. These funds would be available to extend the primary runway length from 8,400 feet to 10,000 feet, subject to customary approvals and permits.
The State of Florida also appropriated $7.5 million to improve airport access by creating an east-west corridor from State Road 77 in Bay County to U.S. Highway 98 in Walton County that would include a realignment of County Road 388. The appropriation is to be used to initiate the necessary project studies. If the project proceeds, the Florida Department of Transportation would use a portion of the right of way purchased from JOE in 2006 for the road project.​

The primary north-south access road for the airport, State Road 79, is now being widened to four lanes from West Bay north to State Road 20, and plans suggest that eventually it will be widened to four lanes to Interstate Highway 10.
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[ClintClint]

You mean St. Joe is not the Patron Saint of the environment???

 

[AAbsolute]

WestBay Development ​

[FONT=Times New Roman,Times New Roman]Two legal challenges to the relocation of the airport remain pending; however, neither is currently affecting construction. [/FONT]

Are there any for profit firms presenting legal challenges to the relocation?


[FONT=Times New Roman,Times New Roman]The State of Florida also appropriated $7.5 million to improve airport access by creating an east-west corridor from State Road 77 in Bay County to U.S. Highway 98 in Walton County that would include a realignment of County Road 388. The appropriation is to be used to initiate the necessary project studies. If the project proceeds, the Florida Department of Transportation would use a portion of the right of way purchased from JOE in 2006 for the road project. [/FONT]

Does a line from 77 to 98 in Walton County mean that the new East West corridor would terminate somewhere between Wild Heron and Watersound?

Any information would be more than appreciated.​

 

[Jim Tucker]

WestBay Development ​

[FONT=Times New Roman,Times New Roman]Two legal challenges to the relocation of the airport remain pending; however, neither is currently affecting construction. [/FONT]​

Are there any for profit firms presenting legal challenges to the relocation?​

[FONT=Times New Roman,Times New Roman]The State of Florida also appropriated $7.5 million to improve airport access by creating an east-west corridor from State Road 77 in Bay County to U.S. Highway 98 in Walton County that would include a realignment of County Road 388. The appropriation is to be used to initiate the necessary project studies. If the project proceeds, the Florida Department of Transportation would use a portion of the right of way purchased from JOE in 2006 for the road project. [/FONT]​

Does a line from 77 to 98 in Walton County mean that the new East West corridor would terminate somewhere between Wild Heron and Watersound?​

Any information would be more than appreciated.​

I believe the plan has the Airport Expressway connecting just west of WaterSound. This would make the airport a quick ride from SoWal.

http://www.nwftca.com/html/home/NFTCA-Adopted-Master-Plan-2007-04-09.pdf

 

[AAbsolute]

You're alright, Thanks

I believe the plan has the Airport Expressway connecting just west of WaterSound. This would make the airport a quick ride from SoWal.

http://www.nwftca.com/html/home/NFTCA-Adopted-Master-Plan-2007-04-09.pdf

 

[Matt J]

You mean St. Joe is not the Patron Saint of the environment???

That's an old argument. Just remember what they could have done with many parcels they have already developed. Most of their current/established developments have vast green areas compared to others. If Joe didn't take the environment into consideration I can guarantee that WaterColor and WaterSound would look vastly different.

 

[Miss Kitty]

That's an old argument. Just remember what they could have done with many parcels they have already developed. Most of their current/established developments have vast green areas compared to others. If Joe didn't take the environment into consideration I can guarantee that WaterColor and WaterSound would look vastly different.

...I have to agree. St. Joey is an easy,convenient whipping boy. Have you not heard of clear cutting? Prominence

 

[ClintClint]

My comment was misinterpreted. I do think St. Joe has been a good corporate neighbor and has developed in a responsible way. They should not be held to any higher standards because they have shown they will try to mitigate the any adverse impact of their developments on the environment while at the same time maximizing the profitibility of their largest asset (land) for their shareholder owners. The increased property tax base helps everyone.