NORTHWEST: Refocusing

PENSACOLA / ESCAMBIA COUNTY

How tough will ’08 get? Pensacola retail sales peaked in late 2005 and have been declining since. Layoffs are occurring in construction and support businesses. Property taxes are the biggest concern, says David Peaden, executive director of the Home Builders Association of West Florida. "Nobody’s building second homes."

Pensacola Bay Area Chamber of Commerce’s proposal to create a 9.2-acre technology campus on city- and county-owned property in downtown Pensacola could enter its engineering phase this spring. The chamber’s refocus on recruiting technology-based jobs and smaller entrepreneurial companies is beginning to pay dividends, says Bank of Pensacola President and CEO Thomas B. Carter. "Large companies are reluctant to move in hard times."

LEADER

» County Commissioner Gene Valentino introduced and won passage for a county ordinance providing financial incentives for new and expanding businesses, of up to $5,000 per new job.

PANAMA CITY / BAY COUNTY

Despite the effect of the declining real estate market on construction, engineering and architectural businesses in Bay County, overall employment was up 1.7% last year— surpassing the state’s 1.1% average growth rate. "We need a fresh influx of workers; it’s a tough labor market," says Ted Clem, executive director of the Bay County Economic Development Alliance. Two bright spots: A strengthened defense industry in Panama City and beach retail expansion.

Bay County will be the region’s hot spot for the next 10 years, predicts UWF economist Rick Harper — powered by construction of the new Panama City-Bay County International Airport at West Bay and adjacent development by St. Joe Co.

St. Joe has begun marketing West Bay, the 75,000-acre project anchored by the new airport, which is now under construction. The first phase includes 4.4 million square feet of industrial, office and retail space, plus 5,842 residential units, 490 hotel rooms and two marinas, says Senior Vice President Jerry Ray.

LEADERS

» This year isn’t expected to be a banner year for tourism, says Dan Rowe, new CEO of the Panama City Beach Convention and Visitors Bureau. "But with Panama City one of the world’s best beaches, we feel visitation will remain strong. We’ll be actively marketing." The spring grand opening of Simon Property’s Pier Park will be a tourism plus. "Shopping is a top activity when people vacation."

» United Way of Northwest Florida, serving six counties, is expecting to meet its goal, "which speaks volumes for givers," says regional resource development director Ron Sharpe. "We know the challenges we have. Federal grant opportunities are decreasing, say some agencies, and (future) local contributions, due to the tax amendment, could decline as well."

FORT WALTON BEACH / OKALOOSA COUNTY

Business leaders in Okaloosa, Walton, Bay and Gulf counties are joining together for a new branding initiative called Coastal Vision 3000. Organized by Buddy Runnels, chairman of the Sterling Cos. and Cornerstone Development of Destin, the effort focuses on increasing national awareness of the region as a tourism and business destination.

Business leaders are gearing up for a 5,000-personnel surge in military population, expected at Eglin Air Force Base by 2015, the result of Base Realignment and Closure decisions; 80% will need off-base housing.

The ’08 economy likely won’t be upbeat, says David Goetsch, vice president of Okaloosa Walton College. Construction and real estate are down, and tourism layoffs have been higher than usual for the off-season. "A problem is the Panhandle’s economic drivers are along the coast, and they’re affected by the high insurance costs," Goetsch says.

LEADER

» "We’re trying to grow high-wage jobs to help strengthen the economy. We’re doing some targeting for skilled personnel in soft Florida markets," says Larry Sassano, president of the Economic Development Council of Okaloosa County. "Our No. 1 need is identifying, retaining and recruiting talent; we have a demand for engineering jobs, in line with growing industries — aerospace, energy and environment, research and engineering."

APALACHICOLA / FRANKLIN COUNTY

Apalachicola was listed among the 2008 Dozen Distinctive Destinations by the National Trust for Historic Preservation. That, plus recent travel articles by Southern Living and the Associated Press, have sparked a flood of calls to Apalachicola Bay Chamber of Commerce, prompting Executive Director Anita Grove to forecast "another good year."

Franklin County’s housing market isn’t as rosy. According to county planner Alan Pierce, residential building permits dropped to 37 last year, from 79 in 2006 and 150 in 2005. Many construction workers who previously migrated from the seafood industry, says Pierce, are now migrating back to seafood, an industry also enduring calamitous pressures.

Tags: Northwest