Panama City Tops in Existing Condo Sales

Panama City’s real estate market continues to show signs of strength even if Florida’s real estate market remains somewhat sluggish. According to third quarter 2007 sales data released by the Florida Association of Realtors, Panama City leads the state in existing condo sales and showed a minimal decline in existing single family home sales compared to the same time period last year.

Sales of existing condos increased 38% in Panama City, making it the top existing condo sales market in the state. Fort Walton Beach ranks second with an increase of 26 percent; Sarasota ranks third with a 15 percent increase in sales for the third quarter.

Panama City Ranks Third in Existing Home Sales

In sales of existing single-family homes, Panama City showed a relatively small decrease compared to activity statewide. Panama City’s existing home sales was down eight percent. Statewide, existing home sales suffered a much bigger decline of 29 percent. Panama City is third behind Marco Island, which just barely outranked Panama City with a seven percent decrease. Sarasota is the strongest market for existing home sales with decline of only five percent.

Bay County Association of Realtors President Scott Bowman attributes the strong performance of the Panama City market to public awareness and education campaigns carried out in Panama City, Sarasota and Marco Island.

A Postive Forecast

The forecast for Panama City’s real estate market remains positive. Recent coverage by major news organizations, including CNN, featured forecasts for Panama City including a possible 72 percent increase in home prices and a 12 percent jump in population. The population increase will be accompanied by a projected 30 percent increase in per capita income over the next five years.

Groundbreaking Ceremony for New Panama City Airport
Panama City Airport officials broke ground recently at the new location of the Panama City-Bay County Airport. About 1000 people gathered to watch the ceremonies including a number of government officials, Airport Authority members, and representatives from the St Joe Company and the Audubon of Florida. State Representatives Mari Coley (R-Marianna) and Jimmy Patronis (R-Panama City) served as co-masters of ceremonies for the event. Governor Charlie Crist was scheduled to be at the ceremony, but was unable to attend at the last minute. He sent an audio taped a message, which was played during the event.

The ceremony marked the end of a 10-year process of design and planning. It also put in motion the West Bay Sector Plan, which is a plan for development of the 34,000 acres that run along the new airport site. Area leaders are hopeful this new development will help the real estate market in the area bounce back after two years of a downward trend.

An Economic Rebound
Airport Authority chairman Joe Tannehill expressed some emotion as he as talked about the start of the $330 million project. The airport will be the first to be constructed since 9-11 and may just become a model for how airports will be built in the future, balancing economic development with the need to preserve natural habitats. In his taped message, Governor Crist described the airport as “America’s first truly green airport.”

Balancing Development with Preservation
As a part of the relocation plan, more than 40,000 acres of St. Joe land in the West Bay sector will be protected and preserved. This will create a major conservation sector in West Florida and provide the area an opportunity to participate in the growing ecotourism trend. At the ceremony, Audubon Director Eric Draper said, “There is a great story being written today, a story of balance” between the environment and economic development.”

In an agreement made earlier this year between the Audubon of Florida and the St. Joe Company, the Audubon of Florida will oversee a new Audubon Center of West Bay and will manage the conservation area. The St. Joe Company will develop another 34,000 acres around the airport into commercial, office and light industrial space. New recreational facilities and more than 5000 new homes are also planned for the area.

Work on the site will begin immediately and will take about 30 months to complete the airport’s first phase. The airport is set to open in early 2010.

New Airport, New Name?
Recently, local businessman Charles Hilton called for the renaming
of the airport to reflect the areas beyond Bay County that the airport will serve, including Washington, Holmes, Jackson and Walton counties. This may be somewhat difficult to do, since changing the name may mean changing the 3-letter code (currently PFN) used to identify the airport in national and international aviation databases. But an FAA spokesperson said that the 3-letter code does not necessarily have to be changed to reflect the new name. He notes the change of Newark’s airport to Newark Liberty International Airport after 9-11. The name of the airport was changed but the 3-letter code remained the same. The Airport Authority has yet to take Hilton’s suggestion under consideration.

Sources:
Regional name for airport sought, November 4, 2007, The News Herald, FL - Nov 3, 2007
Airport groundbreaking marks development boon, The News Herald, FL - Nov 1, 2007

The Florida Trail

The Florida Trail runs 1,400 miles from one side of Florida to the next. The trail crisscrosses mostly public land, but the Federal Government has purchased parts of the trail from private landowners where the trail is comes to an end. Among the purchases is the acquisition of 320 acres purchased in a nearly $2 million deal with the St. Joe Company. This purchase allowed for the continuation of the trail through a small section of Bay County.

The Beginning

The Florida State Trail is the vision of wildlife photographer and real estate broker James Kern. Kern developed the idea after visiting the Appalachian Trail for a backpacking trip. Moved by the Appalachian Trail’s beauty, Kern founded the Florida Trail Association in the 1960s and began recruiting others who shared his dream of a hiking trail that stretches across Florida.

The first trail “blaze” was established in 1966 in the Ocala National Forest. In 1983 Congress designated the trail as a “National Scenic Trail,” one of only eight in the country.

Today, volunteers are responsible for management and upkeep of the trail. Michelle Mitchell, the only federal employee who oversees the project, manages the work of the volunteers, who pick up trash and debris, cut back the underbrush and make sure the trail markers are visible. Annually, volunteers donate between 65,000 to 75,000 hours to maintaining the trail.

Who Uses the Trail?

Officials are not sure who uses the trail exactly. The University of Florida and the U.S. Forest Service are currently working on a 5-year study to determine who visits the trail and how it is used. Twice a year, researchers station electronic monitors at specific segments of the trail and pass out surveys to visitors. Results so far show that between 300,000 – 400,000 people per year use the trail and most are repeat visitors over the age of 40.

Homeowner Concerns

Use to the trial has created some concern from homeowners whose properties run along the route. Some see the trail as an enhancement to their property. Dan Sowell, assistant chief deputy of the Bay County Property Appraiser’s office says proximity to the trail will “…enhance property values…” (source: News Herald, “Investing in Nature,” October 7, 2007). Other homeowners have expressed concerned about keeping the trail clean. Their primary concern is the prevention of the dumping of old appliances, boats and other large items.

The Trail In our Backyard – Investing in Nature

The government purchased 320 acres from the St. Joe Company at a cost $1.8 million in order to complete the trail and continue it eastward. Some say that price is high especially since the purchase of the acres only added one mile to the actual trail. But St. Joe would only agree to sell 320 acres to the government at the fair market value determined by the government. The government has paid more to acquire land and less depending on where the land sits in a handful of acquisitions around the state.

Today in Bay and Washington counties, open parts of the trial run 20-miles along Econfina Creek. The trail also runs through the northeastern corner of Bay county, crosses into Washington county and then dips into the upper West Bay, and finally winding through Pine Log State Forest.

With 1100 miles of “blazes” the trail is not only a great way to hike Florida, but it is also a way to preserve Florida’s natural beauty. Florida’s rapid development means loss of open areas. The trail has become another way to preserve and protect Florida’s natural habitats and preserve land.

For more about the Florida Trail, visit the Florida Trail Association’s website at http://www.floridatrail.org/.

New Additions at Frank Brown Park

There are more opportunities for outdoor recreation now at Frank Brown Park thanks to a $50 million renovation and expansion project completed this spring. The project added new biking and jogging trails and a new $6 million aquatic center to the popular venue. The aquatic center includes a 50-meter, Olympic-size outdoor pool, a splash pool with play features, concessions and classrooms.

Another new feature at Frank Brown Park is the start of construction of a trailhead that will be the beginning of 20-miles of trails that will run across the island of Panama City Beach. Named Gayle's Trails after Mayor Gayle Oberst of Panama City Beach who is a major supporter of the project, the trails will provide a natural preserve in an urban area.

After 3 years of planning by the City of Panama City Beach, construction of the project's first phase began in June near Children's Pond at the rear of Frank Brown Park. When construction is completed, the trail will travel south to the Gulf, run through Aaron Bessant Park, turn east to St. Andrews State Park and then go west to Camp Helen State Park in Walton County or north to Pine Log Forest.

Along the trails, there will be activity areas including designated areas for horseback riding, outdoor classrooms, picnic areas, canoeing and swimming areas in the bay, bird watching spots, swimming in the gulf through Aaron Bessant Park, and Arnold High School related recreation. The nature park will host playgrounds; education opportunities for public school and Gulf Coast Community College Environmental Center projects; picnic areas; and biking, riding and equestrian trails.



Construction of each phase of the trail will be completed as funds become available. State grant funds are being used to pay for the first phase of construction. Many areas that are designed for paving will not be until funds are secured.

The City of Panama City Beach is working with other Panhandle counties to create a Northwest Florida Coastal Trail System. The vision for the trail system is to create a continuous trail that will run through Gulf, Franklin, Bay, Walton, Okaloosa, and Escambia counties. The City of Lynn Haven and Bay County have been involved with discussions and planning and are interested in the creation of the trail system.

For more information about the park and future planning, visit the Frank Brown Park website at http://www.playballinparadise.com/.

Panama City Named the Best Place to Retire in America

Panama City has been named as the best place to retire in Florida by editors of the Florida Retirement Buzz blog (http://www.floridaretirementbuzz.com/). The editors based their findings on a recent study by Moody’s Business 2.0 magazine and Economy.com that identifies the US housing markets that will experience the strongest growth in the next five years. Panama City is number one, with the strongest projected growth of any city in the country.

Three Florida Cities in the Top Five

The Business 2.0/Economy.com study reviewed current forecasting data and identified the cities that will see the highest appreciation through 2011. Florida is home to three of the top 5 cities on the list. Joining Panama City in the top five is Vero Beach at number 2 and Lakeland, Florida at number 4.

According to the study, growth in the Panama City area will be a direct result of the relocation of the Panama City - Bay County Airport to West Bay. The new airport will host larger jets, bringing more people to the area and potentially more homebuyers. Demand from more homebuyers will result in a strong housing market, with projected growth of about 72% over the next 5 years.

Panama City's Economy "Waiting to Break Out"

Experts expect the growth to be similar to Fort Myers’ boom in the 80s when the Southwest Florida International Airport opened and the area experienced a major housing market surge as a result. According to Moody’s Economy.com’s chief regional economist Steven Cochrane, Panama City’s economy is “waiting to break out” (http://money.cnn.com/popups/2006/biz2/newrules_bestinvest/index.html). Property prices remain low compared to the rest of Florida and prices have recovered to a normal level, after reaching a high last year. The area is primed for growth.

The study projects the median home prices in 2011 will be $383,00, up from $223,000 in 2006. The area’s population is projected to grow to 187,000 people over the next 5 years. Per capita income is projected to grow to be $40,200, up from 2006’s per capita income of $31,000.

Excellent Opportunity to Find a Good Buy

Since home prices remain low in Panama City, there is a fantastic opportunity to find a great buy now. The editors at the Florida Retirement Buzz blog recommend retirees or people planning for retirement consider the area for its lower housing prices, projected growth of the area, and even for the weather. Prices for retirement condos are reported to be down more than $100,000 with some going for as little as $300,000. For retirees who say they will miss the “seasons,” Panama City experiences some frost and colorful foliage. Plus, with the new airport, family members and friends from up North should experience no problems coming for a visit!

Final Permit Approved for Airport Relocation
The US Army Corps of Engineers (USACE) has granted the final permit for the relocation of Bay County International
Airport to its new location in West Bay. With this final approval, the project enters the construction phase and is set for groundbreaking this fall.

The creation of the West Bay Preservation area was groundbreaking in itself. The St. Joe Company donated the land creating an easement of nearly 10,000 acres. This area will become at permanent part of the preservation zone when construction begins.

Unprecedented Environmental Protection

Many governmental and environmental agencies worked to create the final plan for relocation of the airport. The Airport Authority, Bay County officials, the St. Joe Company plus community members engaged in a process called "optional sector planning" to determine the best way to preserve the habitat and ecosystem in the area targeted for the airport relocation. A number of public meetings were held, data was gathered and analyzed and plans were created outlining what the area would look like in the future.

The result of the process called for the protection of an entire watershed area, an unprecedented environmental plan for protection of an ecosystem. Included in the 78,800 acres set aside for the relocation, is the creation of the West Bay Preservation Area, which makes up 41,000 of those acres. According to Airport Authority chief Eric Tannehill, the plan will protect West Bay, effectively preserving it for future generations.

In approving the Section 404 permit, the USACE agreed with Florida Department of Environmental protection findings that the move of the airport would positively benefit the ecosystem in the area. Among the benefits of the plan are the conservation and permanent protection of the West Bay region and the restoration of the uplands and wetlands to conditions that allow native species to live and thrive in the area.

State and Local Officials React

Upon announcing the final permit approval, the Airport Authority issued a news release, which included reactions from federal, state and local officials:

Governor Charlie Crist: "The project provides an important opportunity for the region to compete for better and more competitive air service, as well as to attract new businesses and jobs to grow and diversify the local economy."

"The Panama City-Bay County International Airport and Industrial District Project has the potential of becoming a strong economic development platform for Bay County and the Panhandle as long as it continues to be coupled with a real commitment to protecting the natural attributes that make the area so special."

U.S. Senator Mel Martinez: "With the issuance of the final permit needed from the U.S. Army Corps of Engineers, the effort to relocate the Panama City - Bay County International Airport enters the construction phase, which is good news for everyone living in or traveling to Northwest Florida.

Former Governor and U.S. Senator Bob Graham: "Opportunities like the West Bay Sector plan are rare in Florida - what makes this opportunity even more rare is the ability to protect a substantial portion of a nearly self-contained watershed, a watershed that is almost entirely owned by a single landowner. As Governor this was the type of planning that I had hoped that the Growth Management Act would inspire. Perhaps this will serve as an example to Florida's other large landowners - for Florida's sake I hope so."

State Senator Don Gaetz: "Today we are in an overpriced, underserved market for competitive air travel. Our region, with all its promise, is now reduced to a remote stop on a branch line. That isn't just an inconvenience - it holds down our economy and inhibits our quality of life.

"The new airport will open a skyway between Northwest Florida and the world. We will become a point of origin and a destination for international as well as regional flights. Certainly, our tourism and second home industry will benefit. Even more important, the nation-wide and international reach of the airport will help us compete for new businesses bringing higher paying jobs.

State Representative Jimmy Patronis: "This airport, combined with implementation of the West Bay Sector Plan, is vitally important to the future of Northwest Florida. First and foremost, it offers the opportunity to attract better, more competitive air service.

"Airport relocation also initiates the creation of the West Bay Preservation Area. This 41,000-acre conservation area will provide unprecedented environmental protection to the entire West Bay watershed. In the process, we will be creating and preserving one of the most beautiful outdoor recreation areas in the world. It is truly a unique opportunity.

Panama City Beach – A Top Ten Beach

Residents know that Panama City Beach is one of the best beaches
in America and a top vacation spot in the country and the world. Our shimmering white beaches, fun attractions and nightlife have been honored again!

The latest distinction comes from the editors of Gillette’s Venus Breeze website. Panama City Beach has been named as one of the “Top Ten Beaches” in America, ranking number two after Holden Beach in North Carolina.

Our 27 miles of beaches offer visitors and residents many opportunities to engage in their favorite water sports. But that’s not all. The editors also mention other attractions just off the beach, including St. Andrews State park and uninhabited Shell Island. Visitors can take a pontoon boat, sightsee and hike the costal dunes for a little adventure. Plus, you might spot one of the many bottlenose dolphins that inhabit the area.

Another local attraction featured is the Gulf World Marine Park. Editors of the site call it a “must visit” and we know why. Sea creatures and other wildlife can be seen in abundance and a visit to the park would not be complete without a swim with the dolphins through the park’s Dolphin Encounter program.

Panama City’s nightlife gets a mention as well. Mega club “Club La Vela, ” a spring break favorite, calls itself the “Largest Nightclub in the USA” and is noted for its theme rooms and ability to host up to 6000 guests. Next to Club La Vela is the Spinnaker Beach Club & Paradise Grill, which features an outdoor pool, live music and plenty of opportunity to let kickback, relax and enjoy your time off.

For more Panama City Beach highlights mentioned, check out Gillette’s Venus Breeze site here.

Florida Property Tax Rollback

Legislators recently completed a special session to deliver the largest tax cut in Florida history. The plan passed by lawmakers is a two-part proposal.

The first part of the plan includes a freeze on tax rates. The Legislature voted to freeze property tax rates at last year's level. Property owners will benefit from the rollback with an average savings of $174 for homeowners, and an average savings $1000 for commercial property owners. Under this component, cities and counties will also be required to cut taxes to either 3,5,7 or 9 percent, with the larger reductions required for counties and cities where property taxes have increased the most in recent years.

Florida voters will have the opportunity to vote on the second part of the plan. Lawmakers proposed a constitution amendment to create a "Super Homestead" exemption giving property owners the option to switch from the current Save Our Homes exemption to the new one. Save Our Homes is the Florida homestead exemption passed in 1992 that limits residential property tax increases to no more than 3% per year. Under the new "Super Homestead" exemption the first $200,000 of a home's value would be 75% exempt. The next $300,000 would receive and additional 15% exemption. A home valued at $500,000 would receive the maximum exemption of $195,000.

Homeowners will have a one-time only option to choose to remain under the "Save Our Homes" exemption or switch to the new "Super Homestead" exemption. Once their decision is made, they will not be able to change it.

Small business owners will also get a break under the new proposal. The first $25,000 in assessable Tangible Personal Property will be exempt.

Neighbor vs. Neighbor
Under the current Save Our Homes exemption, some residents are stuck paying higher property taxes than their neighbors. This is because they purchased their homes later than their neighbors and at a higher tax rate. The new proposal is designed to create a fairer system of calculating property taxes and to even out the property tax burden.

Stuck in my house!
Some homeowners have found that they are "trapped" in their homes because of the Save Our Homes exemption. They are unable to sell their house and move to a bigger or smaller home because if they do, they will lose their tax protection. The tax bill on their new residences would be so much more than they are currently paying that homeowners are deciding to stay put. Under the new proposal, if you purchase a new home, you will be eligible for the "Super Homestead" exemption and a savings on your property taxes at your new residence.

Benefit: A Healthy Real Estate Market?
Another possible benefit to the new proposal is the Florida real estate market could get a real boost. Due to their fear of paying higher property taxes, many homeowners have opted to stay in their homes. The end result means fewer homes are up for sale. The limited supply of available homes creates higher prices. Higher prices mean less people are able to actually afford a new home. Homebuyers will not lose tax protection when they sell their homes under the new proposal and may be more willing to trade up to a new house.

They Could Have Done More
As usual our politicians have completely ignored or missed the point! The tax issue has never really been about capped homestead property. Yes it would have been beneficial to the retired property owners to have some kind of "Portability" with their tax bills, when purchasing a new home. Let's face facts though and realize that most retired people pretty much stay put until they have to sell and then move in with the kids or to assisted living, etc.

The tax problem/tax revolt deals with the 40-45 percent of the retired, second home, and investment owners. Florida has done virtually nothing to offset the tax burden for them! Rolling taxes back to the highest assessed year and no caps is a joke. The average tax savings will be about $195. It's as if our government has completely forgotten about these people or are sending a message that "if you want stay in Florida or invest in Florida, suck it up and get used to it!" What if you are retired, are living in Florida and have purchased some income producing rentals? Now like day to night your taxes and insurance has quadrupled, you're so upside down you have no choice, but to sell out in a declining market, tuck your tail and try to stay retired!

It remains to be seen the real effect our government's short-sightedness will have on the tax payers of this state, but I sure wish I was selling real estate in states just north and west of Florida!

It's up to YOU...maybe?
Florida voters will have the opportunity to vote on the "Super Homestead" in the presidential primary on January 29, 2008. If 60% of the voters approve, the bill will become law. But the proposal may not make it to the ballot if a lawsuit filed by Weston Mayor Eric Hersh is successful. The lawsuit calls for a repeal of the tax cut and for the amendment to be scrapped. In a recent order, the Florida Supreme Court directed the case be given "expedited consideration" and transferred it to the Leon county circuit court. If the courts side with Hersh, Florida voters will be out of luck and the Save Our Homes exemption will remain.

I urge anyone who has an interest in Florida's future to contact their local and state representatives and let them know how strongly we wanted a fix and not a band-aid solution.

Panama City Airport Update

Construction Management Firm Selected

The FAA recently committed at least $72 million dollars for the relocation of the Panama City - Bay County International Airport to its planned West Bay location. The funds will be dispersed over four years, which is a shorter time period than previously expected. According to the Airport Authority, the quicker disbursement schedule will result in lower financing costs and will ultimately result in a lower total cost to relocate the airport.

Also the FAA has approved use of the airport's entitlement funding of about $7.2 million per year for the project. These funds, combined with the recent commitment of $67 million from the Florida Dept. of Transportation and the expected $61 million that the Airport Authority says it will raise from the sale of the land where the current airport sits, will cover the relocation costs, according to the board. The board says that no local tax dollars will be used for this project.

Management Firm Selected - Hiring of Construction Firm delayed

The Airport Authority has also selected the construction firm Kellogg Brown and Root Infrastructure Inc. (KBR) to manage the construction of the new airport. KBR will oversee budgeting, scheduling and other administrative tasks. The company will not be responsible for the actual hiring of construction firms. The airport board will make that selection.

Recently, the board announced that the bidding process, and final selection of a construction firm from six potential companies, has been delayed. The delay comes after the companies had numerous questions about the project and required answers to the questions before submitting their bids. For each question received from a company, the board is required to distribute a copy of the question with an answer to all companies bidding for the project. The bids should be submitted by the end of this month. It is unclear whether or not the bidding process will be delayed again.

Got a Permit for that?

But no construction will take place without the final environmental permit from the U.S. Army Corps of Engineers. These are expected to arrive sometime in the next few weeks. Officials say the new airport is still planned to open at the end of 2009.

Since the mid-1990s, Florida's property-tax system has penalized businesses, landlords and newcomers by shifting a higher tax burden to non-homesteaded property owners. Property taxes have become burdensome for many Floridians and are affecting how people look at home ownership.

Former House Speaker Allan Bense was chosen to lead a panel that will look at a broad range of issues related to state taxes and make recommendations for proposed constitutional amendments.

Governor Charlie Crist wants the Legislature to put property tax relief on the ballot at a special election this year. The commission consists of 11 appointments by Crist and 18 by legislative leaders.

There could not have been a better time for this commission to come forward. It is important for widespread public testimony before the panel's May 4, 2008, deadline to place proposed amendments on tax and budget matters on the November
2008 ballot.

Visit and email your opinions to

• Florida House of Representatives
• and the Florida Senate

The following are some of the issues presented to Governor's Tax Reform Committee from 2006. View full report:

• Assess business property based on current use only, instead of ”highest and best use” value.
• Cap tax revenue growth for individual local governments.
• Cap tax growth for individual properties.
• Full or partial replacement of the property tax with other forms of taxation.
• Assess properties using a moving average value of several years’assessments
  instead of using just the current year’s value.
• Simplify the “Truth in Millage” notice to be more easily understood by taxpayers.
• Increase the homestead exemption.
• Save Our Homes Portability.
• Phase-out of the Save Our Homes tax preference.
• Partial-year assessment of improvements to real property.
• Agricultural use classification improvements.
• Protecting homestead-related tax benefits when property is taken through the use of governmental powers of eminent domain.
• Protecting homestead-related tax benefits during frequent relocations required by military service.

To cut through the clutter, here is a Miami Herald property tax primer, with answers to some of the most commonly asked questions. The accompanying chart compares the four proposals moving through the Legislature.

A. Supporters of overhauling the system -- Gov. Charlie Crist among them:

Property taxes have risen faster than people's ability to pay. For example, property taxes rose 100 percent for the average Floridian in the past six years, while personal income rose 44 percent. The real-estate boom filled local government coffers with extra cash, more than they need to meet reasonable expenses. The Save Our Homes tax cap has created inequities that allow for neighbors with similar homes to pay vastly different tax rates.

Q. What is Save Our Homes?
A. A constitutional amendment passed by Florida voters that took effect in 1995. It basically says that local governments can assess a residence at market value when it is sold, but after that, the assessed value of the home, for tax purposes, can only rise a maximum of 3 percent each year, even if the market value of your home rises much more. Local governments are allowed to reassess at full value again when a home is sold.

Q. What's wrong with that?
A. It benefits some homeowners, but hurts others. Let's say you bought a $100,000 home 15 years ago. Your property taxes have increased slowly since then because of the Save Our Homes cap. But your neighbor next door bought an identical house three years ago -- and it cost him $400,000. He is paying much more in property taxes, because local government
reassessed the property at market value when he bought it.

Also, Save Our Homes affects only residential properties that have homestead exemptions. It doesn't cover other real estate, such as rental property, second homes or commercial property.

Many homeowners say they are afraid to move because they will lose
the tax savings they now enjoy from their current home.

Many older couples say the provision has locked them into their current homes, when they would like to move to a smaller house.

Younger couples say the inequities make it harder for them to buy a first home.

Q. How are property-tax rates determined?
A. There is no set rate governments must charge. Counties and cities decide the amount of money they need to collect to pay for their needs each year. Then they set the tax rate, also known as the millage rate, to bring in the money.

Q. What is millage?
A. One mill is equal to $1 for every $1,000 in assessed value. For example, if you have a home valued at $200,000 for tax purposes, and the county's millage rate is one mill, you pay $200 in property tax. If the rate is eight mills -- a little closer to reality -- then you would pay $1,600. Of course, you actually pay a little less because of your homestead exemption.

Q. What is a homestead exemption?
A. The Florida Constitution entitles every person who owns a permanent primary residence in Florida to a reduction of $25,000 off the taxable value of their home. So if your home has an assessed value of $200,000 and you have a homestead exemption, you actually pay taxes on $175,000.

Q. My house is valued at $200,000 and my millage rate is eight. But my taxes are a lot higher than $1,600. Why?
A. Because the county is not the only agency taxing you. Your municipality, school district, water and sewer district and, in some areas, special taxing districts, are also allowed to charge property taxes. Each sets its own millage rate, and you pay according to the assessed value of your property.

Q. My county has lowered the millage
rate. Why are my taxes still going up?
A. Because property values throughout much of Florida rose dramatically over the past few years, property taxes also rose even if millage rates remained stable or went down. State economists say that the median house price in Florida increased 90 percent from July 2001 to July 2006.

While most counties reduced their millage rates during those years, soaring
property values allowed them to collect more tax revenue than the year before.

Q. How much money will the tax reform proposals save me?
A. It all depends on which plan ultimately passes. Homeowners would save the most under either of the House Republicans' two plans. One reduces taxes across the state $3.9 billion by eliminating all property taxes on primary homes, requiring counties to roll back their taxes based on the 2003-04 budget year, and raising sales taxes 2 ½ cents. The other does not eliminate property taxes but saves taxpayers $5.8 billion by requiring counties to roll back their taxes based on the 2000-01 budget year.

House Democrats propose giving a $3.8 billion tax break by sharply increasing tax exemptions on homeowners and businesses and making up the money lost with a one-cent increase in the sales tax.

The plan that saves homeowners the least is the governor's, which doubles the homestead exemption to $50,000. Expect a compromise somewhere in between.

Q. Why are counties and cities opposed to the House Republican plan?
A. They don't oppose changing the property tax structure, but they say the cuts required would be too deep and would require eliminating services.

Q. How likely is it that we would do away with property taxes?
A. Hard to say. Even if the Legislature were to pass the proposal, it would take a constitutional amendment approved by voters to eliminate property taxes.

The governor is noncommittal on the idea. Early indications are that most of the Senate does not want to raise the sales tax and prefers a combination of rollbacks and changes to the tax system.

Q. Why does it take a constitutional amendment?
A. The state Constitution establishes the tax structure, so any change to it must be approved by voters. If the plan includes an increase in the sales tax, the Constitution requires that it must be approved by 66 percent of voters in order to pass.

Q. School districts rely on property taxes. What impact would the House sales tax plan have on schools?
A. Property taxes would continue to be collected from businesses and owners of second homes to pay for schools, but going forward those collections would be limited by an index based on inflation and population growth. This will put more pressure on the state to find new sources of money to improve schools.

Q. I have seen figures that show commercial property owners benefit the most under some plans. Why?
A. Individual owners of commercial property are not getting a bigger break, but there is so much commercial property in the state and its value is so high that the total amount of savings statewide would be much larger than to homeowners.

Q. What impact does the House Republican plan have on snowbirds and owners of second homes?
A. Property taxes would still be collected, but they would be scaled back, to an undetermined amount, and capped at the rate of inflation in the future.

Q. Will local governments increase other taxes and fees to make up for the lost tax revenues?
A. Probably. They could increase non-property tax revenues such as impact fees and other special assessments.

Q. What does the governor think about all this?
A. The governor said he wants property taxes to come down and proposed his own plan, but has said he is not bound by his own idea and is open to others'.

Q. Why doesn't the Senate have a plan?
A. Senate leaders are expected to come forward this week with some ideas. Among those they are considering: expanding the homestead exemption, raising the cap on the Save Our Homes assessment but allowing homeowners to carry their savings with them when they move, and changing the way property is assessed.

Q. What about the proposal to make the Save Our Homes savings portable to another home?
A. Legislators are struggling to find a way to make it possible for people to take the tax savings from Save Our Homes with them when they move. Some legal experts say allowing portability is unconstitutional and could jeopardize the constitutional footing of the current Save Our Homes cap. The only idea that appears to be likely is to allow people to keep their Save Our Homes savings when they move within a county.

Pier Park

Forecasted to become the new "Downtown Panama City Beach;" with its collection of upscale culinary experiences and espresso bars to chic retail shops and couture boutiques—all set against a backdrop of vibrant special events overlooking the Emerald Coast, introduce yourself to PIER PARK.

Breaking ground in March 2002 and located on 93 acres that covers land from Front Beach Road (at the City Pier) to the heavily-traveled Highway 98 is Pier Park, Glimpses of Pier Park’s 21st-century design, a departure from the Panama City Beach of old, the new model marks a fundamental change of direction in this city’s development and growth. A Simon Property Group development, Pier Park will serve as the premier shopping destination for the Panama City Beach market and the entire Emerald Coast.

Target is now open for business and some retailers will open their stores at Pier Park in 2007. The Grand Opening of the project is scheduled for spring 2008.

Pier Park on the Horizon

• "Street Scapes" retail concept featuring restaurants and several hotels (Back Porch Seafood House and Reggae J's Island Grill -both feature fresh Gulf seafood and direct views of the Gulf of Mexico. Ron Jon's Surf Shop, Panera Bread, Old Navy, Johnny Rockets, Longhorn Steakhouse and Starbucks are other restaurants and retailers to look out for.
• 900,000 sq. ft., open-air lifestyle center is ideally situated between Front and Back Beach Roads, right in the heart of Panama City Beach, to serve the growing residential community, exploding condo market, and over six million tourists that visit each year.
• About 30 acres featuring soccer fields, festival site, and nature trails will be on the north side of Back Beach Road (Hwy. 98).
• The Grand 16 Theatre with 16 screen-3,200-seat multiplex movie theatre will be the largest in the Panama City Beach, Panama City, Destin and Ft. Walton area. The Pier Park Grand Theatre will include stadium seating, digital sound, high back rocker seats on 18-inch risers, three concession areas, a specialty café and a game room. The theatre is scheduled to open in May 2007.
• Panera Bread’s 5,000-square-foot restaurant will open in April. It will face Back Beach Road and seat 175 people.