The current Bay County airport has major deficiencies, including a too short runway and hemmed-in urban location. Blueprints for the new airport call for an 8,400- foot primary runway, one-third larger than the current one, and a 100,000-sq.-ft. terminal that's twice as large.

By March, a stretch of undeveloped land amid thousands of acres of woodlands could become a construction hub. The Federal Aviation Administration's approval of a new Panama City-Bay County International Airport in September was the last significant milestone toward launching the $312-million project, says airport Executive Director Randy Curtis.

Supporters say improved air service and more competitive fares at the new airport, about 20 miles from downtown Panama City, will be a boon for tourism and the economy. The airport has a target completion date of 2009.

Environmental groups criticized the plan. The Natural Resources Defense Council says the airport isn't needed and development will destroy thousands of acres of wetlands and eliminate wildlife habitat. Council attorney Melanie Shepherdson says no decision had been made on a lawsuit or other challenge.

St. Joe Co., which owns 773,000 acres in the Panhandle, is donating 4,000 acres for the airport, which will become the centerpiece of a 75,000-acre, long-term land-use plan, the largest in the state's history, says spokesman Jerry Ray. Development plans could include up to 4.4 million square feet of commercial and industrial space and 5,800 homes. St. Joe also has agreed to set aside about 10,000 acres to mitigate wetlands losses.

Still needed, says Curtis, is an Army Corps of Engineers dredge-and-fill permit, expected by year-end. The airport's cost will be covered by federal, state and airport funds.