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The Panama City - Bay County International Airport and Industrial
District (Airport Authority) announced today that it had received a
commitment letter from the FAA for at least $72 million dollars to
fund the relocation of the Panama City - Bay County International
Airport to a site in West Bay to be donated by The St. Joe Company
(NYSE:JOE).
In its commitment letter, the FAA said, "We commit to work with
the Panama City - Bay County International Airport District toward the
successful completion of this project."
The FAA agreed to provide the total amount of Federal investment
requested by the Airport Authority. Because the FAA will be providing
the funds over four years instead of the longer period that had been
anticipated, the Airport Authority will be able to significantly
reduce the financing costs of the project, lowering the overall cost
of relocation.
In addition, the airport will be able to use its annual
entitlement funds, totaling approximately $7 million, for the project
as they become available.
As a result of its extensive analysis of the project the FAA
concluded that, "...both physical and environmental restrictions at
the existing site make it impractical and extremely costly to update
to meet FAA standards. Even if the FAA were to upgrade the existing
site, it would not result in an airfield that fully complied with FAA
standards. These limitations on the existing airfield provide
sufficient justification for a Federal investment in the project."
"We are extremely grateful to the FAA for all their work on this
much needed project, and especially for providing us the total amount
of federal funds we requested," said Airport Authority Chairman Joseph
Tannehill. "Five years of FAA review and analysis left no doubt this
project is absolutely necessary to meet the future aviation demands of
this community and this region."
"We are also grateful to the Florida Department of Transportation
for their visionary leadership and commitment to Bay County and
Northwest Florida," said Tannehill.
"Because of their efforts, Northwest Florida will be a very
important part of Florida's future, and we will be able to share in
the prosperity enjoyed across this great state."
"By relocating to West Bay, we will be able to provide this
community an airport that meets all federal design standards, while
putting us in a position to attract more competitive air service and
meet aviation demand as it grows," said Tannehill. "The new airport
will also provide this region a strong economic development platform."
"Best of all, airport relocation will allow us to protect forever
nearly the entire shoreline of West Bay and a surrounding 40,000
acres. It is an incredible once-in-a-lifetime opportunity to chart our
future and protect our quality of life," said Tannehill.
Earlier this week the Airport Authority accepted a commitment of
an additional $67 million in Florida Department of Transportation
funds (FDOT) for the purpose of relocating the airport. State funding
commitments to date total more than $119 million since the relocation
effort began.
In March 2007, the Airport Authority began negotiating final terms
with the probable high bidder for the existing airport property. The
final contract price is expected to be well in excess of the amount
necessary to make the Airport Authority's financial plan work.
The St. Joe Company is donating the 4,000-acre airport site and
encumbering approximately 10,000 additional acres for environmental
mitigation.
No local tax dollars are being used to relocate the airport.
"Our funding plan is coming together very nicely," said Tannehill.
"We have received the necessary commitments from the state and federal
government. We have solid bid in hand for the sale of our existing
property. St. Joe is donating the land for the airport and for the
necessary mitigation. We are on solid ground with our budget and our
financial plan."
"The funding commitments that we have received from both the state
and federal government further validates the need for this airport,"
said Airport Executive Director Randy Curtis. "We have worked very
closely with the FAA and the Florida Department of Transportation to
address the deficiencies of our existing airport and provide a
facility capable of serving this region for decades to come."
"There are many people to thank for their help," said Tannehill.
"I'd like to extend my personal gratitude -and the gratitude of this
community - to Senator Nelson, Senator Martinez, Congressman Boyd, and
Governor Crist for their leadership and help. There are many more
leaders and agencies at the local, state and federal level who helped
make this happen - and we thank them all."
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