In a highly anticipated move, The Fed cut interest rates Tuesday by a quarter point. The only problem was that the anticipation was for a half point and the market was let down as evidenced by the Dow’s plunge of 300 points.
It is down from 4.5 to 4.25%. The Fed hopes to ward off a recession and give the economy a boost in light of the housing slump and industry mortgage troubles.
Bernanke left the door open for another rate cut during Q1 2008 if need be.
Since the rate cut in October, “credit has become harder to obtain, Wall Street has convulsed again and the housing slump has intensified,” according to the Associate Press. The rate, now at 4.5% is expected to be cut again this week in an effort to pump more money into the economy, curb the growing housing slump, and ward off an economic depression. If this happens, it would be expected that commercial banks would lower their prime lending rate, now at 7.5%.
Entire article click here: Fed Seems Poised to Lower Interest Rates
One of the comments on The Huffington Post stated ” The Fed has determined to print and lend more paper money in an effort to delay the impending economic bubble burst. Since the interest rate spread between what banks and institutional lenders pay the Fed and what they charge their borrowers is so great, there really is no need to lower the rate. The announcement of a Fed rate reduction is simply to advise Wall Street that rather than allow market forces to work, our Govt. will just keep issuing more money to be distributed through the economy. The effect of this policy will cause a free fall in the dollar and runaway inflation. ” I don’t know that I disagree.
As much as I would like to agree that dropping insurance rates would turn around the market that we are in, I just don’t think that will work.
What are your thoughts?
Every year Panama City Beach hosts a Christmas Tree Lighting ceremony at Frank Brown Park. Music, fun and Santa is always guarateed. It is always perfect to roll in the holiday season. It reminds my family and I that Christmas is here; even though the warm weather doesn’t. I love Florida!
This past week I was sent a document presentation of our area and the future planned growth that we will see in the coming years. It was put together by Accrue Planning. I couldn’t find anything about them on the web, but I decided to post it anyway. There is some good information, but there is also other information that I’m not sure how accurate it is. When I say I couldn’t find any information on the web, I should have been more specific in that I couldn’t find a website.
The document cites that there are no inventory, franchise, or state-level property taxes in our area and that our area remains to be attractive for businesses. Discussed in the 78,000 acre, master-planned West Bay Sector Plan by St. Joe and the new airport. Also discussed is the possibility of FedEx and UPS relocating their international operations centers here. Please correct me if I’m wrong, but I don’t think that has been confirmed.
The Gulf Coast Parkway will stretch from 231 to 98, just west of Mexico Beach and will improve hurricane evacuation, open up more development opportunities and reduce traffic through Tyndall Air Force Base. The Gulf Coast Parkway is also expected to open up travel corridors from the East Bay area to the new Airport.
Currently, Highway 79 is undergoing a transformation to a four-lane highway up to I-10 and there are plans to widen highway 77 up to I-10 as well. Actually, this could have already happened or begun already. My travels do not take me up that road.
Also in the document in information about Disney and Universal Studios coming to our area. I know nothing of the validity of this information, but they are claiming that 55,000 acres known as “Moody Pastures” is under contract and that Disney has spent money on the site. Also discussed is the possibility of Universal coming to the East Bay area.
Once gain, I feel it necessary to note that I was unable to find information on the publisher of this document and I do not endorse the validity of the information it contains.
Here is the link to the document: Northwest Florida Future Development
Notes from the TDC Bed Tax Committee Meeting on Wednesday 12/5/2007.
4 of the 7 committee members were present. Absent were Mike Nelson, Andy Phillips, and Russ Smith.
State of Panama City Beach: President Dan Rowe made a short presentation on the state of our tourism industry. This included the changing destination, the airport relocation, the changing customer base and other challenges facing the industry. He believes that both new and existing resources must be used to both retain and enhance occupancy and rate integrity during this dynamic time.
Tie-In between the Bed Tax Discussion and the Strategic Plan Framework: President Rowe discussed the Strategic Plan Retreat that is scheduled for January. The plan is designed to answer: 1. Where we want to go as a destination in the next 3-5 years? and 2. How do we get there?. Rowe suggested that the committee defer further discussion about a possible bed tax increase until the strategic plan was complete. He suggested that the committee instead concentrate on bed tax compliance and reporting in the near term. Rowe suggested that the board encourage the accommodations industry to work with Smith Travel Research so that more accurate rate and occupancy data would be available. He explained that Smith protects the confidentiality of all reported data and would only report composite data. The committee also discussed the problems with the current rate and occupancy data being compiled by the HAAS Center due to the small number of participating parties. The President advised that Smith could make a presentation to the industry about their services to help alleviate concerns about providing proprietary occupancy and rate data.
2005 Bed Tax Collectors Survey: Rowe suggested that the committee delay distributing the 2005 Bed Tax Collectors Survey at least until after the Strategic Plan Framework is complete. No objections were voiced to Rowe’s suggestion.
Meeting notes are courtesy of Bryan J. Durta. Thanks Bryan.
A Federal Judge in New York issued an order on Thursday to temporarily block construction of the new Panama City Airport until a formal hearing can be held on December 18th. The Friends of PFN, the Defenders of Wildlife, and the Natural Resources Defense Council sued the FAA last year to turn over the Record of Decision the FAA issued for the construction of the new airport in West Bay.
It is expected on December 18th that they will quickly rule on whether a permanent stay will be enacted. The News Herald was kind enough to host the motion for stay document, it can be found here.
Other information on the airport relocation can be found here.
I want to encourage discussion. When I first started pcbdaily.com more than a year ago, the airport relocation was all over the news. I had tons of people opposing the relocation post comments, and I don’t remember one valid point.
One example was the opposing argument that we don’t need a new airport, the one we have is at half capacity, so much so that new airlines won’t even come. Our airport is at half capacity, that is a fact. BUT, you have to realize, most people don’t fly out of here. I don’t know one person (and I know many that travel) that flies out of here voluntarily except on the rare occasion it is cheaper to fly out of here than drive to Ft. Walton or Tallahassee. Almost at any given time, it is double to fly out of PFN than it is from VPS. Am I going to drive 90 minutes to save 200 bucks? You bet I am, and so is everyone else. And, new airlines won’t even think about coming here because the runway does not currently meet FAA standards for a safe landable runway.
Opposition: what about the 4,000 acres of land that is going to be cleared, paved, built upon, developed, etc.? You mean the St. Joe-owned land that had been used to FARM pine trees for the production of paper and was harvested every 10 to 20 years for decades. The land that eventually could be homes, office buildings, etc.? What about the 14,000 acres donated specifically for conservation including almost all of the waterfront shoreline of the West Bay area (I don’t need to say, the most valuable). What about the waters in the bay system and the estuary that would be damaged if the current runway was extended out into the bay to make the current runway up-to-standards? After all, the environmentalists had a problem with this too years ago. What are we supposed to do? We can’t bring the existing airport up to code and can’t build a new one?
Tell me, opposition, what do you suggest?
Pier Park is getting very close to completion. I love the bright colors and the architectural accents. Margarittaville is really starting to take shape, you can now see the sunset outside dining deck (on the second floor). Also, there is considerable construction taking place at the back of the property towards Back Beach Road. More pictures to come soon.
Notes from the November 27, 2007 Combined Board Meeting of the Bay County TDC and the PCB CVB
Eight of the nine board members were present with Buddy Wilkes absent.
The board voted unanimously to approve the 9/30/07 financial statements.
2008 Spring Break Program Update: President Dan Rowe advised the board that commitments totaling $84,500 have been received from co-op participants. No lottery was required as the available packages exceeded those requested by local businesses. He also explained that additional co-op opportunities remain available, but that the CVB would not be actively marketing them. However, he encouraged the current participants and the Marketing Committee to seek additional participants. Rowe also reported that the agreement with MTV had not yet been signed, but that he expected it to be soon.
Sea Turtle Draft Lighting Ordinance Update: The President reported that the community workshop would probably take place during the 3rd week of December. [Subsequent to the meeting, the TDC announced that the community workshop has been scheduled for December 19th, 2007 at 9:00 AM at the PCB City Hall.] Rowe also reported that staff would be meeting with the U.S. Fish and Wildlife Department to gauge their response to the draft ordinance.
FSU Flying High Circus Update: Rowe advised that everything was proceeding well with the circus scheduled for next summer. He also reported that a press conference was scheduled for December 5th concerning the event.
Indian Summer Festival Update: The President reported that staff had terminated the contract with Sound Associates as directed by the board. He also explained that he planned on discussing the 2008 festival with the Marketing Committee at their next meeting.
December Marketing Committee Meeting: President Rowe advised that the December Marketing Committee meeting has been rescheduled for December 12th at 9:00 AM.
Sports Marketing Activities Update: Director of Sports Marketing Richard Sanders made an extensive report to the board concerning his department’s current activities. He reported that future bookings are very strong, but advised that the board should be mindful about competing destinations that are engaging in expansion plans that may be attractive to event organizers. He also advised that planning for the facility expansion feasibility study was proceeding on schedule. He expected the study to commence after the holidays and that the report can be expected about 90 days after commencement. Chairman Phillips reported that Director Sanders will be inducted into the National Softball Association Hall of Fame at their 2008 annual meeting.
Strategic Plan Framework: The President reported that he is planning a board workshop during late January 2008. The purpose will be to develop a 3-5 year strategic plan for the CVB. He also advised that he expected to hire an outside facilitator to assist with the workshop.
CVB/TDC Media Policy: Rowe advised that he as in the process of developing a draft Media Policy in conjunction with the CVB’s agency, Y Partnership. The purpose of the policy will be to formally answer the question of how the CVB/TDC should speak as a body to the media.
President Rowe also reported that he would be meeting with Y Partnership on November 29th at their Orlando offices. He planned to meet with both their public relations department and their advertising department to better understand their work on the CVB’s account.
Rowe also reported that the search process for the current staff vacancies would begin within the next couple of weeks.
Meeting notes courtesy of Bryan J Durta. Thanks Bryan.
In a report release by the National Association of Realtors (www.realtor.org) today it is reported that total existing home sales, including single family homes, town-homes and condominiums dropped by 1.2% in October compared to September 2007 bringing the annual pace down 20.7% from the annual projected pace in September 2006. As set in October 2007, the annual projected sales pace for all home types nationally is 4.97 million total units sold.
The national median home price for all home types in October was $207,800, down 5.1% from October 2006 ($218,900 then). Although this is on an overall national level, real estate markets are very localized with regards to trends. NAR President Richard Gaylord said, “Keep in mind that home prices are up in 93 out of 150 metro areas, and there is a lot of confusion in the market from reports about national data. Broadly speaking, home prices in most areas are up modestly or fairly stable. . . areas with population or job growth are seeing the strongest home price gains.”
Total housing inventory rose to 1.9% in October to 4.45 million which represents a 10.8 month supply based on the annual projection of 4.97 million units sold. Existing condo sales dropped 9.1% from September to October and is 20.2% below the annual pace set in October 2006. The median condo price was up however to $223,500, 4.9% higher than October 2006.
Existing home sales in the South were unchanged in October with an annual rate of 2.03 million, however this is 19.4% down from October 2006. The median home price was down 6.7% from last year to $171,400.
As an interesting side note, the annual projected sales pace of the South is 41% of the entire nations annual projected sales of all home types; this is almost double that of the next highest region’s projected annual sales pace (the Midwest at 1.18 million).
In working on a market study locally, a buddy of mine came across some information on the Panama City Beach Chamber web site (www.pcbeach.org). According to this information, Panama City Beach is expected to have an additional 8,500 residental units open in the next 5 years with an additional 15,000+ to be announced at a later date. 5,800 opened this year including The Shores of Panama, The Towne of Seahaven, Nautilus Cove, Grand Residences by Marriott, and Aqua just to name a few. There were some that I know are on hold for now and of course market conditions will determine what comes online in the future, but still I thought this was very interesting information. There are currently almost 21,000 condos, hotel rooms, and townhouses in Panama City Beach.
Some of the big ones include Breakfast Point at 3,100 total units expected to be open in 2012, Grand Panama with 795 total units, Laketown Wharf with 735 units open this year, Miracles (on the old Miracle Strip Park site) with 700 units open in 2012, and Solimar Resort and Spa with 812 units open in 2010.
PCBDaily 