Fed Slashes (and I mean slashes) Interest Rate – .75%

In a bold move today, the Fed cut the interest rate .75% to 3.5 from 4.25. “Analysts said the fact that the Fed did not wait until its meeting next week to cut rates underscored the seriousness of the situation.” Many economist expect another .25 point cut during the meeting next week. This is sending a strong message that countries all over the world are getting. Many other countries and considering a rate cut as well.

Here are the top stories:

Fed Sends Signal with Deep Cut to Interest Rate

2nd UPDATE: Fed Cut Puts Focus On Early 2008 ECB Rate Cut

What the Fed Cut Means For Your Mortgage

Rate Cut signals Economy is in Real Trouble

Fed cut shows depth of concern

Do you support the Airport Relocation?

Tell us if you support the Airport Relocation by voting in the poll on the top right of the site. I support the relocation as do most pcbdaily readers, but if you don’t, I still welcome your opinion, please vote. AND, please comment on why you disagree with the relocation.

In addition, feel free to comment on your opinion here or on the other post for the airport that was posted last week.

Vote Yes on Amendment 1 on January 29th

On the January 29th ballot, we will have the opportunity to vote on Amendment 1, that “offers property tax relief for all Floridians.” The main points are:

Double homestead exemption for almost everyone, from $25k to $50k
Allow portability so that homeowners can transfer their Save Our Homes tax benefits from their old home to a new home.
It will provide an assessment 10% cap on ALL properties (including rental homes, second homes, business properties, etc.)
Includes an exemption on the first $25k from taxes for tangible personal property for business owners.

You can get all the details at www.voteyeson1.com

You can view Representative Jimmy Patronis’ flyer on this here.

Bush calls for $145 billion tax relief plan

Associated Press

“President Bush, acknowledging the risk of recession, embraced about $145 billion worth of tax relief and other incentives Friday to give the economy a “shot in the arm. ” Bush said such a growth package must also include tax incentives for business investment and quick tax relief for individuals. And he said that to be effective, an economic stimulus package would need to roughly represent 1 percent of the gross domestic product — the value of all U.S. goods and services and the best measure of the country’s economic standing.

Continue reading “Bush calls for $145 billion tax relief plan” →

Dr. Peter Yesawich of Ypartnership to present at Gulf Coast

A public presentation by Dr. Peter Yesawich, chairman and CEO of Ypartnership will be held at Gulf Coast Community College on Monday in the East Student Union Building.

The topic of discussion will be emerging travel habits and preferences and their implications for marketing for Panama City Beach. The program is sponsored by the Bay County Tourist Development Council and the Panama City Beach Convention and Visitor’s Bureau and I encourage you to attend. I will be there if I can.

Details:

Monday 1/21/2008 from 3:30 pm – 5:30 pm

Gulf Coast Community College
Continuing Education Center
East Student Union Building, 2nd Floor

For more information, call 850-233-5070.

Support the Panama City Airport Relocation – Write your State Representatives

Last week at the Panama City Beach Chamber’s Friday at the Beach local attorney William Harrison asked that everyone get more involved in voicing support for the airport relocation. Currently the USAC-issued 404 Permit has been temporarily suspended and full speed-construction halted pending a January 23rd court date that I assume will begin an arduous process of who is right and wrong.

Following the event, an email was sent out to the Chamber members with contact information for our Congressman and Senator and other local and state representatives asking us to write them in support of the relocation. I have sent them an email voicing my support and encourage everyone to do the same. And, just for the fun of it, I’ve started a new poll on the top right of the page titled “Do you support the airport relocation”. Please vote!

Senator Mel Martinez

Senator Bill Nelson

Congressman Allen Boyd

Governor Charlie Crist

Representative Jimmy Patronis

I have sent them all an email and hope that you will too.

This week in Pier Park – New Signs up, Grand Opening next month

Pier Park is getting close with the addition of more tenant signs this week. RedBrick Pizza, Kilwin’s Chocolate, Quiznos and Alltel all have their signs up with more signs to be added each week. The main boardwalk street is paved, windows are in most of the buildings and The Boardwalk is on schedule to have the grand opening mid February. I finished shooting the new video today and hopefully will finishing cutting it this week or next.

Fed ready to cut rates again – Is that what we need?

On Thursday, Ben Bernanke indicated that the Fed was prepared to do whatever necessary to ward off a recession, even if it meant cutting interest rates again. Many economists are speculating a .5% cut, but most anticipate a .25% cut.

I went to the Friday at the Beach Chamber event this morning and the guest speaker was Dr. Rick Harper, Director of UWF’s HAAS Center for Business Research and Economic Development. He was saying that a monetary policy is not what we need right now to spur the economy, we need a fiscal policy. He was saying that interest rate cuts are not what we need, but we need targeted tax cuts to lower and middle income groups, the large part of our consumer spenders.

This makes sense to me (although I am not against interest rate cuts). As a modern consumer, interest rate cuts don’t do me any good. If I refinanced a couple years ago to get money to spend on consumer goods, then my property value went down, and my taxes and insurance went up, how could I benefit from lower interest rates? I can’t refinance again, my property probably wouldn’t appraise, and even if it did, I’m still in debt up to my eyeballs from the last time I refinanced for more money because I couldn’t pay that debt down with my salary raise because that is going towards my raised insurance and tax bill.

Harper was saying that we need a targeted tax cut for the lower and middle income families. The lower and middle income families are the majority consumer spenders. If their bill outtake can be lowered, then they will have more free money to buy consumer goods. If they have more money to buy more consumer goods, then more people have jobs, etc., etc.

I wonder how much of a tax cut we would need to see a large-scale economic effect.

As a side note, I do see how interest rate cuts can benefit the small business. I am employed by a small business, and this is important to me. I am, by no means, against interest rate cuts.

Click here to read the article about Bernanke cutting interest rates in Januray 29, 2008.

Click here for Dr. Harper’s PowerPoint Presentation supporting his discussion at the Beach Chamber’s Friday at the Beach.

Panama City doing better than most of Florida

Using Quarter 3 numbers in 2006 and 2007, Panama City is doing better than most of the rest of the State of Florida. The average percent change in sales numbers for the whole state is -29% with the greatest change being in Ocala with a whopping -53% and the smallest change in Sarasota at -5%. Panama City came in third for smallest percentage change between Quarter 3 2006 and Quarter 3 2007 at-7% with second place (Naples) only having 77 sales in Q3 2007 and 83 sales in Q3 2006.

I’m not alone when I say our area saw the effect of the downturn before most other places and I think our area is seeing a turn-around sooner than most other places. I think we are on the backside of this market plunge and while things may get slightly worse between now and who-knows-when, I think we will see some improvement between now and this time next year.

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Notes from the TDC/CVB Board Meeting January 9th, 2008

7 of the 9 board members were present. Yonnie Patronis and Mike Nelson were absent.

Bed Tax Collection Update: Charlene Honnen, the Bay County Tourist Development Tax Specialist, updated the board. The November collections were up 3% from 2006; however, Chairman Phillips cautioned that all indications are that PCB tourism was relatively soft for 2007. Phillips mentioned that occupancy number might actually be down for the year since rates were higher due to higher rates being charged for the new upgraded accommodations.

Frank Brown Park Road: Mayor Oberst requested that the TDC consider committing approximately $34,000 to pay one-third of the cost to continue paving the road from the special event site to the new North Pier Park Dr. The bid is based on county staff completing the work. Oberst reported that the BCC agreed yesterday to pay one-third and the PCB Council was scheduled to consider the same tomorrow. Gary Walsingham inquired as to whether this type of expenditure was permissible using bed tax funds. Legal Counsel Sale responded that it was OK as long as the board made a finding that the expenditure would promote tourism in PCB. Since the TDC budget for 2007-08 does not have sufficient contingency funds, a motion was made that the board recommend to the BCC that the expenditure be approved contingent on sufficient additional funds being available after the audit currently taking place is completed. The motion passed 7-0.

Turtle Lighting Ordinance: Sale reported that staff has requested the Army Corps of Engineers move forward with the 2008 renourishment project based on the boards approval of a lighting ordinance at their last meeting. The USACE is currently awaiting comment from U.S. Fish & Wildlife. Sale cautioned the board that USF&W might revoke two major concessions (approval of non-turtle friendly safety lighting and a unusually long 5 year compliance period) since the board decided to include the grandfather provision previously rejected by USF&W.

Christmas Holiday Marketing: Chairman Phillips recommended that the CVB Marketing Committee consider opportunities for holiday-oriented activities that could increase December tourism. Possibilities discussed by the board included decorations on Front Beach Rd. similar to Lake Defuniak, sleigh rides, shopping programs, and New Year Eve fireworks.

Strategic Planning Program: Dan Rowe announced final details for the Strategic Planning Program later this month. Peter Yesawich will be speaking at Gulf Coast Community College on the 21st from 3:30 to 5:30 concerning trends in the tourism industry. This will be followed by the first workshop on the 22nd from 9:00 to 3:00 at the Edgewater Resort. The CVB has hired Bob Allen as an outside facilitator. Both sessions are open to the public.

Visitor Inquiries: Internet inquiries have been relatively flat recently and Rowe is working with Miles Media to retool the CVB’s internet marketing plans. Rowe is also considering reallocating staff due to a reduction in telephone inquiries.

Sporting Events Funding Policy: Rowe reported that Sports Marketing Director Richard Sanders was currently developing a Sporting Event Policy similar to the Special Events Policy. Compliance with the new policy will be required for any Sporting Event requesting CVB funding assistance.

College Spring Break Update: Rowe announced that the CVB’s co-op web site was running late but would be up by Monday. MTV is also running behind schedule in putting 2008 information on their site. Staff has been in contact with Campus Crusade For Life, which expects 2000-3000 volunteers to be here during college break doing community service. Their projects last year included trash cleanup and planting sea oats.

2007-08 Co-Op Advertising Update: Rowe reported that the December co-op ad fair was very successful. Agency is currently considering revisions for a few placements that the industry partners did not have an interest in.

For all posts on the TDC Meetings, click here.