Panama City - Bay County International Airport Receives Final Federal Permit Needed for Airport Relocation

Business Wire, August 16, 2007

Airport Relocation Project Enters Construction Phase

PANAMA CITY, Fla. -- The Panama City - Bay County International Airport and Industrial District (Airport Authority) announced today that its airport relocation project is entering the construction phase now that the U.S. Army Corps of Engineers has issued the final necessary federal permit, completing the permitting process. The new airport will be located in western Bay County north of County Road 388 and east of State Road 79 on land being donated by The St. Joe Company (NYSE:JOE).

"With the permitting process now complete, we have entered the construction phase of the project," said Airport Authority Chairman Joe Tannehill. "We intend to move expeditiously to a groundbreaking."

"The receipt of this permit marks yet another major milestone in the decade long effort to bring better air service to Bay County and all of Northwest Florida," said Tannehill. "We have moved a giant step closer to providing this community the opportunity for better air service and more competitive fares; the opportunity to attract new business, industry and jobs to our region; and the opportunity to protect West Bay and preserve tens of thousands of acres for public use and enjoyment."

Under the terms of the Section 404 permit, The St. Joe Company is providing a conservation easement on 9,609 acres for the mitigation of airport construction impacts. The land, located southeast of the airport site, will become part of the West Bay Preservation Area. This easement will become permanent upon the commencement of construction of the airport. St. Joe is also donating 4,000 acres for the new airport site.

All Major State and Federal Permits for Airport Relocation Now in Hand

"We have now completed both the state and federal permitting process, and we have honored our commitment to protect and enhance West Bay as part of the airport relocation process," said Tannehill.

Previously, the Airport Authority had received all necessary permits from the state of Florida, selected a project construction manager and secured financial commitments from the state of Florida and the Federal Aviation Administration (FAA). The Airport Authority has received bids for the first phase of airport construction and will select a contractor shortly. In addition, the Airport Authority is working to complete negotiations for the sale of the existing airport.

Rigorous Process Ensured Net Environmental Benefit

In evaluating the Airport Authority's permit application, the USACE was required to consider 1) what cumulative impacts the project would have on the environment if the permits were approved, and 2) if practicable alternatives that would impact fewer wetlands exist.

In issuing the Section 404 permit, the USACE concurred with the Florida Department of Environmental Protection's (FDEP) analysis. In its analysis, FDEP cited a number of net ecosystem benefits that will result from the project, including:

* The conservation and permanent protection of significant contiguous portions of the West Bay region, including bay shoreline, wetlands, streams, uplands and the overall watershed;

* A wetlands function lift significantly in excess of that needed to compensate for functional losses (impacts);

* A mitigation plan that significantly exceeds both state and federal requirements for all possible current and future impacts; and

* An effort to restore a large contiguous tract of uplands and wetlands to approximate historical conditions more suitable for dependent species native to the area.

Environmental Protection is a Key Benefit of Airport Relocation

"Local environmental groups and the State of Florida opposed expansion of the current airport in the mid-1990s because of the threat it presented to the St. Andrews Bay system," said Tannehill. "They sought to create a 'win-win' plan for the future by protecting the bay and relocating the airport. Their objective became the Airport Authority's objective. And by working together, West Bay, one of the most pristine bays in Florida, will have important permanent protections in place to ensure future generations will be able to enjoy it, as we have."

Dozens of public meetings and many hours of dedicated work by local citizens, local and national environmentalists, the Bay County Commission and the State of Florida produced the West Bay Area Sector Plan, one of the largest land plans of its kind in the United States. During the years of planning, the Florida Audubon, The Nature Conservancy, the Bay Environmental Study Team (BEST), 1000 Friends of Florida and Florida Wildlife Federation and other local environmental leaders and organizations participated in creating a plan and policies for the sector plan that will protect the water quality, habitat and scenic beauty of West Bay forever.

In addition to the sector planning process, the Airport Authority entered into an Ecosystem Management Agreement (EMA) with the FDEP. The EMA includes a comprehensive mitigation plan for the environmental impacts of the relocation and construction the airport.