Jacksonville losing St. Joe Corporate Headquarters

[Lunican]

The St. Joe Company Announces Relocation of Corporate Headquarters to Northwest Florida

Jacksonville, Florida - March 17, 2009 - The St. Joe Company (NYSE: JOE) today announced plans to move its corporate headquarters to its large-scale development project adjacent to the new Northwest Florida Beaches International Airport in Bay County. The new location, surrounded by some of the Company's most valuable land holdings, will enable the Company to build on its real estate and economic development successes in the Northwest Florida region.

St. Joe's new headquarters will be located within Phase I of the Company's West Bay Sector Plan development near the entrance of the new international airport which is scheduled to open in May 2010. The new offices will provide the Company with a location central to its numerous residential communities and commercial properties under development, as well as Company lands slated for new business and development opportunities in the region.

The Company will be consolidating offices from Jacksonville, Tallahassee, Port St. Joe and South Walton County into the new location. Construction of the approximately 50,000 square foot Class A multi-tenant office building is scheduled to begin this summer, with relocation of the Company's headquarters and personnel to be completed by the summer of 2011.

"This move is a very important step in the evolution of The St. Joe Company, and we are excited about expanding our relationships with the people of Northwest Florida," said Britt Greene, President and CEO. "At the same time we are very grateful for our 75-year relationship with the City of Jacksonville. There are many friends and supporters in the area that have played an integral part in the growth and success of the Company throughout the years. We will remain forever thankful for their contributions and support."

"The relocation represents a new phase for our Company where we will be able to closely align our resources in an area that we have been actively involved in developing for the past 12 years," continued Greene. "Furthermore, we expect to capitalize on the many significant business and economic development opportunities that we see emerging as the region continues to evolve into not only one of the nation's top ranked vacation destinations, but one of the nation's newest business and technology corridors."

http://ir.joe.com/releasedetail.cfm?ReleaseID=452641

[Dapperdan]

Doesn't surprise me, I used to work for them before their first downsize. It is a nice building and more architecturally distinct than most DT buildings. We are not loosing alot of people. I think they are down to 1 or 200 workers in that building if that.

[stjr]

Ed Ball is turning in his grave, probably.  They took a Company with phenomenal assets at virtually no costs and (mis) managed to run it into the ground.

The State's citizens and St. Joe would have been better off if the State arranged, over a period of many years, to transfer the land (originally, about 1 million acres and about 60 miles of fantastic, unspoiled ocean front) to the State as conservation/park/recreation land for its just value.  Florida could have had a northern counterpart to the Everglades or its own version of the Smoky Mountains, Yellowstone, the Rockies, or Shenandoah Valley.  And, the State would save a bundle not having to support the inevitable urban sprawl St. Joe still aspires to bring to its remaining lands.

[fsujax]

Yeah I think they have no one left in their corporate office!

[jandar]

So glad I didn't take that offer a few years back to work there.

[stjr]

P.S. Hope the Ed Ball, Alfred I. and Jessie Ball Dupont charitable trusts don't have too much left locked up in St. Joe stock.  

[Overstreet]

Their panhandle developments are way more enviromentally freindly that the rape and pillage they did at Rivertown. Most of their market seems to be over there now.

This might allow Port St Joe to convert to Central Standard time. Back when Ed Ball was around and St Joe had a paper mill in PSJ they had the time line rerouted around the town so PSJ would be on the same time as Jacksonville.

[jason_contentdg]

^ It's strange too, because the northern end of the county is till on CST.

[JaxNative68]

"Northwest Florida's largest private landowner. St. Joe is primarily engaged in real estate development and sales"

telling quote from the article.  it is my understanding that St. Joe has been getting out of the builiding ownership/managment business for the last 5+ years.  when re-evaluating their earnings, back then, they realized they could make more profits in selling off their buildings, land and land development services than actually owning it.  Basically the head cheeses of St. Joe isn't primarily interested in preping the company for long term goals, but more interested in how much money they can personally earn prior to retirement.

[Ocklawaha]

A hex be upon them and their increase...

And who comes here to wish me well?
A sweetly-scented angel fell.
She laid her head upon my disbelief
and bathed me with her ever-smile.


OCKLAWAHA

[billy]

A hex be upon them and their increase...

And who comes here to wish me well?
A sweetly-scented angel fell.
She laid her head upon my disbelief
and bathed me with her ever-smile.

The Bard?


OCKLAWAHA

[stjr]

Basically the head cheeses of St. Joe isn't primarily interested in preping the company for long term goals, but more interested in how much money they can personally earn prior to retirement.

Jax, the reason management can screw the stockholders and the company and still look good is because Ed Ball bought most of St. Joe's holdings during the depression at $1 per acre or less.  That is still what it is on the books for.  So, sell one acre for $25,000 to $100,000 and you look like a "genius".  In reality, at today's market, you could be selling it below what it would cost to replace it.  On that basis, you are an "idiot".   Another reason why financial statements don't always tell you the whole story.  Buyer beware.

[Coolyfett]

Yeah I think they have no one left in their corporate office!

What city are they actually moving to?

[Joe]

They are moving about 5 miles outside of Panama City. You can't see it on Google or Bing yet, but they are building a new airport and commercial park on State Road 388 to the north of Panama City.

Basically, St. Joe's business plan has devolved into the following:
Phase One: Spend $300 million on an airport in the middle of nowhere and guarantee to cover Southwest Airlines' losses for providing service there.
Phase Two: ??
Phase Three: Profit

Ostensibly, the idea is that the new international airport will turn the panhandle into a major tourism hub. Then St. Joe will be able to sell expensive vacation homes and have the market cornered on commercial and industrial office space. Over the extreme long term, you'd have to assume that's a pretty solid plan, but I think the question is whether after spending hundreds of millions of dollars on infrastructure St Joe will be in business long enough to reap the rewards. It might just be the company's creditors who are making big bucks of their real estate 40 years from now.

[fieldafm]

Basically the head cheeses of St. Joe isn't primarily interested in preping the company for long term goals, but more interested in how much money they can personally earn prior to retirement.

Jax, the reason management can screw the stockholders and the company and still look good is because Ed Ball bought most of St. Joe's holdings during the depression at $1 per acre or less.  That is still what it is on the books for.  So, sell one acre for $25,000 to $100,000 and you look like a "genius".  In reality, at today's market, you could be selling it below what it would cost to replace it.  On that basis, you are an "idiot".   Another reason why financial statements don't always tell you the whole story.  Buyer beware.

Wouldnt GAAP require the assets to be booked at current market value?

My gf used to work in that building, it doesnt house a huge St Joe employee presence anymore.  With the bulk of their work devoted to the Panama City project, it makes sense that they move.  PC/Destin is going to see even more growth with the Southwest/airport deal.