Airport Authority to Begin Contract Negotiations for Current Site: High Bidder Chosen

By Valerie Lovett, The News Herald, Panama City, Fla.

Mar. 28–PANAMA CITY — Though the Airport Authority’s executive board agreed Tuesday to begin contract negotiations with the highest bidder on the 715-acre airport site, two other companies vying to buy the land are not entirely out of the picture. Pittsburgh-based PCA Development offered $75 million, with $61 million up front and the remaining $14 million to be paid over more than two dozen years as a percentage of profits from sales of some properties within the development. PCA’s plans call for a village-style, mixeduse town center with an entertainment district and about 48 acres of lakes and 39 acres of open spaces and parks. “On the face it’s clear that PCA is the high bidder, but our first order of business is to determine their ability to perform and to examine other issues raised by their proposal, particularly concerning the $14 million,” said board Vice Chairman Bill Cramer. Cramer spearheaded a second round of bidding after the board determined last fall that more money was necessary to mitigate cost increases to the airport relocation project. The board agreed to pursue negotiations with the other two bidders to ensure their proposals would be “ripe for consideration” if talks with PCA fall through. Utah-based Community Airport Redevelopment, or CAR, bid $60 million with no financing requirement and $10 million of the offer available upon signing a contract. The terms of PCA’s contract are very contingent, said CAR attorney Lisa Walters. “From my standpoint, they didn’t really pick anybody,” Walter said. “I think the door is open, and that was a clear message.” Local railroad magnate Earl Durden’s RMC Investors did not increase its $56.5 million bid. The Airport Authority plans to relocate the Panama City-Bay County International Airport to a 4,000-acre, St. Joe Co.-donated site at West Bay. Vaughn Blaxter, speaking for PCA, said any time line for development of the current property depends on the West Bay relocation, though it would take about eight to 10 years to complete. He said the development’s density had not increased with the bid. The $331 million relocation project is to be funded in thirds by state grants, federal grants and the sale of the current airport property, coupled with bonds floated by the authority. Cramer said a contract on the land sale should be completed in about 60 days. By then, construction bids on the first phase of the new airport should present a clearer picture of the project’s cost. “By then, we will have a better idea of whether or not we should go ahead with this,” board Chairman Joe Tannehill said. “We do have a real-world reality that there’s going to be a minimal amount of money that has to be raised in order to do this.” Originally, the Airport Authority estimated a $54 million price tag on the current airport property would be necessary to make the project work, though that number is no longer accurate, Tannehill said. “I’m not sure that $61 million or $75 million is either,” he said.

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Copyright (c) 2007, The News Herald, Panama City, Fla.

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