Bay County Set to Boom – Interview with Dr. Ed Wright

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"The nature of our area will change forever, and in a great way."

Dr. Ed Wright, former Dean of FSU-PC and current stand-in director of the Bay County Economic Development Alliance was gracious enough to start our series of Leader Profile interviews that will showcase the local talent that our area possesses.  Dr. Wright shares with us his former role as Dean, his current role as EDA Director, and what we may see in the future of Bay County.

Koertge:  You are the former dean of FSU-PC,  how long were you the dean?
Wright
:  Almost seven years.

Koertge: Did you move to Panama City for that specifically?
Wright
: I did.  I was serving as the Dean of Humanities and Social Sciences at Colorado State University when The Florida State University position was advertised.  My wife and I had long connections with Panama City, had come here to the beach many times, plus my wife had family just outside New Orleans, so it was close.  In addition, I had done a lot of work with Gulf Coast Community College.  I was happy where I was, very successful and doing well, but when I told my wife about the position, she said four words to me – ‘get your typewriter out.’  This was the only time I applied for a job in several years and low and behold, we ended up coming.

Koertge:  So, tell us about the timing of your move.
Wright
:  It was just the right time for me, and it was time for real growth at FSU-PC.  FSU had been fairly unresponsive prior to my coming to the needs of the community and the community was getting a little restless about it.  That was communicated to me pretty quickly.  When the dean before me, Larry Bland, who was the founding dean – great guy, had been here for years –  retired, they put together a commission of city and university people to talk about the future of the campus.  This group came up with a plan or rather an inventory of needs.  Part of my role in the beginning was to respond to that inventory of needs.  Of the many things we did, we brought in daytime programs, as well as other educational programs to help broaden our teaching capability.   However, one of the most important programs we brought on was the engineering program. The initiative was to create a real full time or day time campus.

After about 6 years in the seat, we decided it was time to retire.  It was time to spend time with family and my mother, and also we timed it because the new buildings coming along. We figured with the new buildings and a great enthusiasm and buoying up of support –  what a great time for a new Dean to be here and benefit from that very important time.  And, now they are online, and what a great thing that is.  I walked through them the other day, and they are very nicely done.

Koertge: If you could name one, what would you say was the highlight of your career at FSU-PC?
Wright: One highlight of my career is crystal clear to me, and it is a story that I’ve told hundreds of times.  This story captures the mission of a regional campus, it captures Panama City, and it captures what FSU Panama City has become.  The first graduate of the Electrical Engineering program was a young woman.  The commencement was always the highlight for many of us because you get to see all these people that have worked so hard come to the conclusion of their educational career with high hope for what the future will bring them.  Many of them, for a long time were non-traditional students achieving their goals and making a difference in their life and in their future.   So, here’s a gal who was a single mom with three kids, living at home with her parents, working as much as she could – the day she walked across that stage, her life changed forever.  Now she’s working a great job, has been there for years, and has been able to offer her kids a life they never could have had before.  And, importantly, the life of the community changed forever because her role in It will be different, her contribution to It will be different.  That’s really what this is all about.

Koertge: What is the Bay County Economic Development Alliance?
Wright:  the EDA is a public/private partnership consisting of county municipalities in partnership with private companies such as St. Joe, Gulf Power and various others that contribute or have an interest in the economic development of our area.  The whole purpose of the EDA is to attract new businesses and employment opportunities and help existing industries to expand and bring new business. The board is a volunteer board led by Lisa Walters, a partner in Burke and Blue. She’s a great gal, works so hard.

Koertge:  What roles does the Economic Development Alliance play in the community?
Wright
:  The whole purpose of the EDA is to develop proposals, to target businesses that could benefit from it, provide industry related information to businesses, participate in marketing events (sometimes jointly with the Great Northwest), working with companies that may want to relocate here to perform site location studies among other things, and to structure and develop packages of incentives that are provided based on certain qualifications of the businesses.  The EDA’s job is to market the region and work with those that would like to develop as potential employers in our area.  Nextel and Oceaneering coming to Bay County are some examples of past EDA efforts.

Koertge:  What is your role as the temporary director of the EDA?
Wright:  Well, first, try to keep the place running (laugh).  I came down the week before Ted [Clem] left and received lots of briefings about the current goings-on in our program.  2008 closed out with 11 active projects in the works and I’m also involved in facilitating the building of new relationships.  I’ve worked with three inquires in the two weeks I’ve been here from companies interested in our area or in the Southeast that may develop into fruitful relationships – we are in the business of developing proposals catering to these types of solicitations.

In addition, equally important, and maybe even more important, rather, is the search for a new executive director.  We’ve got to develop a process to bring about that search and to find the right kind of person for this position.

Koertge:  People, locals and tourist alike, tend to overlook Port Panama City, what do you see on the horizon as far as economic development with regards to the port?
Wright:  Certainly, I think, Wayne Stubbs has done a terrific job as the director of the Port; he has certainly expanded their capability.  They have some land constraint issues, but that is alleviated by their having an industrial area right up 231 that is directly connected by rail that is actually being developed – that’s a really important site for future development.  I think that we’ll see some activity that will make that land more interesting to a potential business that may come here in the near future.

There is a lot of potential, and we are going to try and accelerate that process so some of the ground work is complete for that future potential business.  Then of course, there is the distance from the Yucatan.  You know, this port is closer to the Yucatan than Miami, because from the Yucatan, you have to go around Cuba to get to Miami.  Not to mention the progress with the new Panama Canal and the possible future activity that could open our area up to with the capability to accommodate much larger ships.

Koertge:  Can you speak into those things unique to our area that are setting the stage for Bay County to explode?
Wright:  The industrial park around the airport and the developable property within the fence, about 400 to 500 acres, in terms of aviation related business is a huge advantage that our area will have.  In the future, we will have tremendous opportunity that may be difficult to foresee at this time.  For example, with the airbus A380 project, if the timeline of the new airport were more further along, we would have very likely been the site instead of Mobile.  So, there are lots of things that could happen that are related to access to an airstrip or runway that this site certainly affords.

And of course, the whole commerce park outside the fence has the potential for logistics and cargo-related types of businesses, and its a great opportunity for businesses to build what they want as opposed to trying to retrofit something that is already there.  Something else that is sometimes overlooked is the growing number of defense contractors that support the Navy base, Air Force research lab, and the Civil Engineering center at Tyndall.  We’ll see that number grow.

The Navy base has become, really, a hub for a lot of different technologies.  In fact, one of the things I tried to do after I retired but was still doing some work here was to get the new airport to be a test bed for new technologies.  It is a great place and opportunity because you can bring a new system in, plug it in and see how it works.

Finally, where in the southeast can you land a large cargo aircraft with relative ease, and with ease, I don’t mean in regards to the length of the runway, but in regards to the amount of airspace.  This airport will have lots of available airspace, timewise, with regards to cargo operations.  Now, nothing is happening in this specific arena, so I don’t want to mislead anybody, but I’ve always believed that we have the opportunity when the economic base is sufficient to talk about a regional cargo kind of location.  We will have lots of space to develop the kinds of distribution centers that you would need and plenty of space in terms of airspace and times that you can have access to the airspace.

And I still believe that if Airbus will manage to become profitable in their manufacture of their huge cargo carrier, the A380, then FedEx and UPS may pick up a dozen a piece.  Where are you going to fly that huge plane into?  Currently there is only one airport in Florida that can handle a plane of that size in terms of runway length and turning radius capabilities – Miami.  As I understand, our airport should be able to handle something like this, however, they may have to do some modifications to accommodate turn radiuses and taxiway requirements, but again, we’re dealing with a clean slate.  These are some of the kinds of things that we will have to offer.

Koertge:  What sort of regional impact does the new airport potentially have?
Wright:  Oh, its huge.  And we haven’t even begun to talk about the impact it will have on The Beach, if you will, the destination of Pensacola to “the bend”.  And the way it potentially changes this tourism market in terns of access, if we get a low cost carrier.  We’ll get people coming out of larger cities that have never heard of our area before and the potential to bring international travelers.  This will change the nature of this destination forever, in a great way.

Top Stories for 2008 on PCBDAILY.COM

2008 has been a monumental year for us at pcbdaily.  We’ve seen super awesome growth, expanded our content base tremendously and have reached out to more people than we had ever expected.

Looking back, the top stories covered good times and bad, with some of the bad times being good for others and some of the good times being bad for some.

4 of the top 10 articles talked about new additions to our area, namely Pier Park and the new Panama City Bay County International Airport (I know, we need a new name, and that will be addressed in 2009).

Walking around the mall, it is sometimes hard to imagine that this time last year, Pier Park’s roads were not even paved yet.  Colorful buildings had been erect for some time, but the mall as a whole was still just under 2 months from opening.  Looking back, it amazes me how quick somethings get done.

The new airport has hit milestones aplenty during 2008.  Just a little over a year ago, the airport groundbreaking ceremony took place.  When 2008 rolled in, the airport was caught in a legal battle with the NRDC and the Fiends of PFN.

In what was expected to draw out for months, the case was totally thrown out on January 25th, clearing the Airport Authority for construction immediately. The case was in many instances described as frivolous, and was not taken seriously by the judge.  Opponents touted the failure of an affirmative vote in a non-binding referendum vote, but were never able to validate the fairness of the actual vote in regards to it being represented to all those affected.

For the new airport, 2008 brought the site from a stumpy, patchy 4,000 acre site to a cleared, grubbed site that is almost completely brought to grade with terminal parking installed, foundation work for the terminal complete, an asphalt-paved runway with some concrete and funding for a full 10,000 foot runway.

As the economy has plunged during 2008, so have real estate prices.  Now, this has been a topic of hot debate on pcbdaily.  I’ve oft been blasted by the Realtor community for spreading “bad news” and not “helping” the market by taking part in the media frenzy of negativity.  However, the reality is, those that are complaining should be putting that energy into finding buyers because now is a great time to buy real estate.

Plunging prices mean good deals for all buyers.  I understand the hesitation and skepticism, but things will not always be this way, and in 10 years, us agents will be doing our homework on baypa.net thinking to ourselves that we should have bought as much as possible back in 2008 and 2009 when prices were so cheap.  3 of the top 10 articles of 2008 were specifically about condo auctions in Panama City Beach.  The Palazzo condo auction story took the cake, trailed by the Ocean Reef Auction and the cancelled Marina Landing auction.  The Seahaven auction actually made it in the top 15 and is only a few weeks old.

The other 3 articles of the top 10 articles of 2008 on pcbdaily have to do with problems at local condos and the condo market as a whole.  Laketown Wharf has been a sore topic for many with the developer being a self-proclaimed Trump with a Drawl – Jerry Wallace.

A largely vacant, 750 condo, elephantine monolith, Laketown Wharf actually had great aspirations, with some possibility of success had it come unto creation mid 2004.  With huge swimming pools, a Balagio-style fountain/light show, a 650-seat live performance theatre, 5 restaurants and 1,000’s of square feet of retail space, it was planned to be almost a small town.

With less than 70 closings, it has been largely regarded as a complete and utter failure, but Laketown Wharf yet has a bright future with Corus stepping in.  2009 should bring something good for that development, hopefully.

Anyway, enough – enjoy the articles and looking back on 2008!

10.) Marina Landing Auction – CANCELED

9.) New Airport is on Schedule – Construction Update

8.) 35 Condos Sold at Ocean Reef Auction

7.) Pier Park – Margaritaville Grand Opening in Panama City Beach (video)

6.) Construction Update – New Panama City Bay County International Airport

5.) 50 Palazzo Condos Sold at Auction on Panama City Beach

4.) Problems at Nautilus Cove Condominiums?

3). Panama City Beach Condo Market Analysis After The Palazzo Auction

2.) Pier Park Grand Opening was a Smash Hit

1.) Laketown Wharf Busts, Leaves Developer Crying

Foreign Trade Zone Status at New Airport

Panama City, FL (Nov. 10, 2008) – The Panama City – Bay County International Airport Authority has directed Airport Executive Director Randy Curtis to evaluate the options for establishing a Foreign trade zone at the new international airport currently under construction in West Bay.

“The airport board believes it is important to establish a Foreign Trade Zone at the new airport in order to maximize its economic development potential,” said Airport Authority chairman Joe Tannehill.  “Having a foreign trade status at the new airport will put us in another category altogether and be an important differentiator in competing for new jobs and business expansions.”

The action taken by the Airport Authority is in consideration of extensive statistics documenting the importance of foreign trade to the Florida economy. It noted that establishing a Foreign Trade Zone at the new Panama City – Bay County airport would make the new facility one of 10 airports in Florida.

Airport board members agreed that Foreign Trade Zone in West Bay would benefit the community and the region by facilitating and expediting international trade, providing special customs procedures as a public service to help firms conduct business, encouraging and facilitating exports, attracting offshore activity, assisting state/local economic development efforts and creating employment opportunities.

The action taken directs Airport Executive Director Randy Curtis to begin immediately preliminary work to create a Foreign Trade Zone at the new international airport in WestBay.

Specifically, the board asked Curtis to develop options for the airport board to consider concerning the size and boundaries of the trade zone, including a discussion of the costs and benefits associated with each option presented.  Further, the board asked Curtis to investigate public/private partnerships to stimulate intermodal infrastructure development.

Florida Trade Facts:

The U.S. is the world’s largest trading nation, exporting nearly $1.3 trillion in goods and services and more than one-fifth of the growth in U.S. GDP depends on exports. (1)

Manufacturing exports support an estimated 5.2 million jobs, including 1 in 5 manufacturing jobs, and jobs supported by goods exports pay 13-18% higher than the average wage. (2)

More than 30,000 companies export from Florida locations, including more than 28,000 small and medium-sized businesses. (3)

Florida’s export shipments of merchandise in 2007 totaled $45 billion, up 80 percent from $25 billion in 2003, ranking sixth among the states in terms of total exports in 2007, and exporting to 222 foreign destinations. (4)

1 – Office of the United States Trade Representative, 2005 data (latest available).
2 – Office of the United States Trade Representative, 2002 data (latest available).
3-  International Trade Administration and Bureau of the Census, Foreign Trade Division (2006 data).
4 – Revised Origin of Movement State Export Series, Bureau of the Census, Foreign Trade Division (2007 data).

Contact:
The Panama City Bay County International Airport
Randy Curtis, Executive Director, 850-763-6751 ext. 203

New Airport Runway Deeper, but Not Longer – yet.

In a somewhat boring meeting that was exciting at the same time, the Airport Authority unanimously accepted the lowest bid for the terminal, with the stipulation that they needed to come back $4 to $6 million less than where they were at.  If that confuses you, let me clarify, because it was confusing to me at first.

The bid for construction was awarded to Walbridge, who was the low bidder at $68 million.  The Airport Authority had determined a budget of $54 million for the terminal based on preliminary studies and had confirmed this as recently as May of this year.  Former Panama City Mayor Gerry Clemons pointedly asked what changed between May and now to cause an increase of $14 million and after not being answered once, he asked again.  Again David Hanson of Walbridge danced around and avoided the question.  The gracious Joe Tannehill eloquently stated “we are where we are”, indicating he was ready to move on from that particular merry-go-round.  Mr. Tannehill asked Hanson and a representative from HNTB, the architecture firm, whether they had been in communication and working together to come up with the best solution to cut costs without effecting the overall usability, quality, and public appearance of the new airport terminal.  The answer was a quick no, only not said in so few words.  Again, Mr. Tannehill so eloquently stated that if they didn’t come together, they would be both looking for work as the airport job wouldn’t be a job their firms would have any longer. The two firms assured the board that they would have a presentation in a week specifying the approach that would lower the costs an additional $4 to $6 million and they would have a suitable, acceptable contract for the bid on or before October 7th.  Wow, say that out loud – what a mouthful.

Mr. Jeff Dealy, in his construction update, announced that currently, test strips were being laid down for the runway.

The Board unanimously approved increasing the runway depth to 15 inches with the top layer consisting of concrete.  It was discussed lightly the need to go ahead and construct the entire 10,000 feet of the runway, which is an extension of the initial 8,400 feet.  This was not voted on as they are still awaiting permitting from the FAA for the extension, and they didn’t want to “get ahead of the FAA”.  This will be formally decided upon the meeting after the permitting is approved.  Centerline lighting on the runway was also approved.

During the public participation portion of the meeting John Caylor, candidate for County Clerk and zaney “investigative reporter” tried to get in some hoopla about how the public showed they did not want the airport through vote and proceeded to talk about how St. Joe was a bunch of crooks.  John, throwing the vote on a Democratic ballot and seeing a 22% voter turnout with 54% of overall turnout voting against the airport is hardly overwhelming.  After a quite boistrous performance, he was told to leave by the Airport Cheif of Police.

High Fuel Prices + Major Airlines + Weak Economy = Catastrophe

I came across this paper talking about the effects of record high fuel prices could have on the US Airline industry.

The title actually reads: Record-high Fuel Prices +Major U.S. Airlines + Weakened U.S. Economy = A Catastrophe. I shortened it to save space.

The paper talks about an top energy analyst at Goldman Sachs is predicting that we’ll see oil at $200 a barrel within 24 months. With the price of oil twice what it was just a year ago and 4 times as much as it was in 2000, the price of oil rising is certain to have significant effects on the United States Airline industry.

In 2000, the cost of fuel was around 15% of the average airline total operating cost. Today, it is around 40% of the average airline total operating cost. This is greater than the cost of labor or the cost of plane leases.

Click the more link for a link to the entire paper.

Continue reading “High Fuel Prices + Major Airlines + Weak Economy = Catastrophe”

Coastal Vision 3000 Presentation on The Beach at New Airport Site

Coastal Vision 3000 takes off with Milestone Presentation at Panama City – Bay County International Airport Site

PANAMA CITY – Nearly 100 Northwest Florida business and community leaders came together today as officials with Coastal Vision 3000, a non-profit organization focused on marketing the region, and the Panama City – Bay County International Airport discussed future economic and growth opportunities for the area. The open-forum gathering, which was held under a tented meeting space at the site of the future airport, currently the only airport under construction in the country, was lead by Davage “Buddy” Runnels, chairman of Coastal Vision 3000 and chairman of the Destin-based The Sterling Companies.

Continue reading “Coastal Vision 3000 Presentation on The Beach at New Airport Site”

Crist OKs State Funding Allocation for the Panama City Airport

On Wednesday, Governor Charlie Crist signed a $66 billion budget that included $12 million for the construction of the new Panama City Bay County International Airport and the road that connects it from Highway 388.

The Panhandle Citizens Coalition had written a letter to Crist explaining why he should veto the funding for the new airport citing, as reported by the News Herald, that the airport was voted against in a non-binding referendum and that it has been under litigation.

Continue reading “Crist OKs State Funding Allocation for the Panama City Airport”

Toll Road Voted NO in Washington County

In a 3-2 vote against the proposed toll route from Montgomery to Bay County, Washington County, Florida commissioners expressed their concern for the new toll road slated to come through their community. Supporters of the toll road claimed that they had contacted all but 1 of the 27 property owners affected by the new road and that all had given indication that they would be willing to work with the development in order to prevent eminent domain.

Commissioner Jerry Sapp and Commissioner Joel Pate voted for the new toll road.

Continue reading “Toll Road Voted NO in Washington County”

Toll From Montgomery to Panama City to be public road

In the Moulton Advertiser it was reported that the toll road to travel between Montgomery and Panama City may revert to public ownership once the toll fees pay off the cost to construct. The road would be constructed and operated by a non-profit organization.

As reported, Luthor Strange, a Birmingham lawyer is pushing the project in hopes of seeing it come to fruition. He represents Focus 2000 of the Wiregrass, an organization that is made up of potential investors and local officials and businessmen in SE Alabama.

Strange beleives that there is a way to construct the highway by using public and private resources, although there is no federal or state funding available for this project.

Continue reading “Toll From Montgomery to Panama City to be public road”

St. Joe Quarterly Numbers Up from Last Year

The Q1 2008 Earnings Call Transcript was posted on the 6th.

Reported was an increase in net income up to $32.1 million from $19.7 million first quarter 2007. This increase was mostly attributed to strong rural land sales.

Significant progress in four areas was noted:

  1. Construction has begun on the new Panama City – Bay County International Airport following favorable jurisdictional decisions
  2. The completion of a successful equity offering that virtually eliminated all debt (the sale of 17 million common shares of stock – apprx $580 million)
  3. 57,000+ acres of non-strategic rural lands were sold for more than $91 million
  4. A new CEO will be appointed next week, Britt Greene

Peter Rummell was quoted, “we’re taking important steps to be properly positioned when [the markets improve]. . . we have become a leaner, more nimble company.”

“At the construction site of the new Panama City Airport, at West Bay, the first quarter saw the combination of a decade of hard work. Each day the airport authority continues, construction brings us one day closer to a new airport capable of tracking better our service and stronger economic development for the region.

Continue reading “St. Joe Quarterly Numbers Up from Last Year”