St Joe slashing more jobs here in the Great NW

[Smiling JOe]

Peter Rummell was in town today, talking to the support staff for St Joe. Word has it that in the next 60 days, he is slashing 50 people in the region, including Gulf County. Most of the positions being cut are reported to be associated with the building and Homeowners Assoc. Mgt. :shock: Look for a slight jump in the stock price soon. Gone will be the people in charge of issuing fines to builders for violations, lot owners for not building in time, architectural review people, etc. This could mean some serious stuff. Anyone want to buy the rest of St Joe's share in these NW Florida developments? I hear that it is for sale.

All of this info is grapevine talk, fresh from some insiders. Look for news articles to soon follow. I hear that a newspaper in somewher either in Panama City or over towards Apalachicola had an article this morning regarding at least part of this info.

[flyforfun]

Peter Rummell was in town today, talking to the support staff for St Joe. Word has it that in the next 60 days, he is slashing 50 people in the region, including Gulf County. Most of the positions being cut are reported to be associated with the building and Homeowners Assoc. Mgt. :shock: Look for a slight jump in the stock price soon. Gone will be the people in charge of issuing fines to builders for violations, lot owners for not building in time, architectural review people, etc. This could mean some serious stuff. Anyone want to buy the rest of St Joe's share in these NW Florida developments? I hear that it is for sale.

All of this info is grapevine talk, fresh from some insiders. Look for news articles to soon follow. I hear that a newspaper in somewher either in Panama City or over towards Apalachicola had an article this morning regarding at least part of this info.

Joe, actually what we have been informed is personal who are directly associated with property management are affected. This void will be handled by other management firms that the HOA will have to contract with. Basically what they are doing is shifting more cost of managment to home owners. As a homeowner in WS, we fell pretty confident that we will do a much more efficent job in this area than St. Joe, and I am certain other communities feel the same. What I have been told is that St. Joe still will control through the design review process property build outs and fines.

[Smiling JOe]

Joe, actually what we have been informed is personal who are directly associated with property management are affected. This void will be handled by other management firms that the HOA will have to contract with. Basically what they are doing is shifting more cost of managment to home owners. As a homeowner in WS, we fell pretty confident that we will do a much more efficent job in this area than St. Joe, and I am certain other communities feel the same. What I have been told is that St. Joe still will control through the design review process property build outs and fines.I here that the six guys in charge of this will be reduced to one person's job requirements. That is only talk, but we will see soon.

Here is St Joe's required 8-K, released yesterday link (http://biz.yahoo.com/e/070116/joe8-k.html):


Form 8-K for ST JOE CO 16-Jan-2007
Costs Associated with Exit or Disposal Activities, Financial Statements and Exhibits

Item 2.05 Costs Associated with Exit or Disposal Activities. In August 2006, the Company announced a reorganization of its operational structure and a workforce reduction designed to reduce operating expenses. See the Company's Current Report on Form 8-K filed on August 16, 2006. As the Company implemented its new organizational structure and continued to formulate its long-term plans, management realized that there were additional opportunities for increasing operating efficiencies in the Company's workforce. Accordingly, management decided to make an additional workforce reduction, which was communicated to affected employees on January 15 and 16, 2007. Approximately 5% of the Company's employees were terminated in connection with this plan.
The Company believes that this action will help to further reduce the Company's overhead expenses over the long term. In the near term, the Company expects to take a charge to earnings of approximately $2.5 million as a result of the terminations. Of the total charge, approximately $2.4 million is expected to be incurred in the first quarter of 2007. The charges incurred will be primarily one-time cash termination benefits to employees.
Additional information on the organizational changes described herein is set forth in the Company's press release dated January 16, 2007, a copy of which is filed as Exhibit 99.1 hereto and is incorporated by reference herein.




Item 9.01 Financial Statements and Exhibits. (c) Exhibits
99.1 Press Release dated January 16, 2007

[Miss Kitty]

Dear Homeowner,

On January 16, 2007, the St. Joe Company announced a decision to transition away from the homeowner association property management business. Over the course of the next few months, JOE will be reviewing alternatives for how we make sure this important work continues uninterrupted. Meanwhile, our team will remain on the job to ensure the continued success of our communities. One of the options being considered is third-party management companies who can take over all of the property management functions. Our goal is to complete a transition to a new management structure by May 15, 2007.
These changes do not affect JOE’s development activity, our commitments to owners or the anticipated turnover date of any community. These changes do not have any impact on JOE’s resort operations, including the resort rental management program. These resort activities will continue to be managed and operated by St. Joe.
As we start this process, it is important that we acknowledge the hard work, outstanding contributions and diligent efforts of all of those who over the years have played important roles in JOE’s homeowner association property management operations. We are committed to working with them individually and assisting them as they make their personal transitions.

[John R]

We are committed to working with them individually and assisting them as they make their personal transitions.

um, ok. people in homebuilding were given notice also. end of feb.

[Joe]

St. Joe laid off 50 people here in Tallahassee yesterday. I just spoke with my neighbor 2 doors down and sadly he was one of them.

http://www.tallahassee.com/apps/pbcs.dll/article?AID=2007701170313

[SHELLY]

This is what's known in corporate America as "Downsizing to Profitability."

On the plus side, Florida has tons and tons of jobs available for the those who will be given the boot.

On the "not so plus side" the homeowners will soon find out how much JOE subsidized the operation of their "places."


Additionally, JOE is unloading it's office building holdings. JOE shareholders' conference call scheduled to air on Feb 6th--sounds like they're leaking out info leading up to showtime.

[hi n dry]

This is what's known in corporate America as "Downsizing to Profitability."

......
On the "not so plus side" the homeowners will soon find out how much JOE subsidized the operation of their "places."

....

Does this mean Watersound/Watercolor property prices might get even cheaper as association fees shoot skyward ?

How much lower can a formerly $500k lot go? Do I hear $150k?
:idontno:

[SHELLY]

Does this mean Watersound/Watercolor property prices might get even cheaper as association fees shoot skyward ?



It's hard to say what's going to happen as JOE starts turning over the reins to the townfolk--but I can guarantee, after that happens, the homeowners' association meetings are reeealllly going to get interesting. :cool:


.

[Miss Kitty]

It's hard to say what's going to happen as JOE starts turning over the reins to the townfolk--but I can guarantee, after that happens, the homeowners' association meetings are reeealllly going to get interesting. :cool:


.

:creepy:

[Smiling JOe]

It's hard to say what's going to happen as JOE starts turning over the reins to the townfolk--but I can guarantee, after that happens, the homeowners' association meetings are reeealllly going to get interesting. :cool:


.
...and in the mean time, look forward to seeing more subcontractors and their help drinking Budweiser on the sites. Currently, a builder is fined $500 per beer found being consumed on the jobsite by a builder or subs. With the guys who monitor and assess the fines being removed, you can also forget about the ban of working on the houses under construction on the weekend and after hours.

[hi n dry]

Is this move by St Joe an indicator of a significant lack of confidence in the long-term future of Florida real estate?

[Smiling JOe]

Is this move by St Joe an indicator of a significant lack of confidence in the long-term future of Florida real estate?I think it has more to do with shareholder confidence in JOE's stock price, or lack thereof. I challenge you to look around the world and find better deals than in SoWal when you consider all that this land and beach offers. This area will come back strong -- just need to weed out the day traders.

If you want to take notes from the stock market crash of 2000, look at all the people who bought the DOW when that market burst and are now holding those shares at all time record highs. The people who are buying in at the bottom right now, will find appreciation with time. Time will pass as will news stories of national real estate market bursting and people will no longer be terrified of purchasing a vacation home. I don't think we will ever have the prices of Nantucket, Martha's Vineyard and the California coastline, but I think you will continue to see prices increase here in the mid to long term. You just have to find the better valued properties and purchase selectively.

JOE is making this decision for the wrong reasons, in my opinion. They simply care about share price. JOE is up around 40% from Jun '06.

http://chart.finance.yahoo.com/c/5y/j/joe

I think this chart of JOE stock shows my example well and also be used to demonstrate what has/is happening in the real estate market. People who bought in '05 may be hurting. People who bought in 04, may be okay, people who bought pre-05, may be smiling a bit if they forget about holding on through 05. People who buy in the market bottom which we are currently in, will probably see some upside in the future.

[flyforfun]

It's hard to say what's going to happen as JOE starts turning over the reins to the townfolk--but I can guarantee, after that happens, the homeowners' association meetings are reeealllly going to get interesting. :cool:


.


Shelly, the HOA meetings I have attended have always been interesting. I anticipate a decrease in association costs and much greater efficency in all area's.

[SHELLY]

Shelly, the HOA meetings I have attended have always been interesting. I anticipate a decrease in association costs and much greater efficency in all area's.

Probably might happen during the "honeymoon" stage where the townsfolks attempt to become Mayberry RFD....but I think HOAs who try to cut association costs will find that facilities and services will suffer. It will be difficult for free-lance HOAs to match what the SoWal developers provided for the price. Remember, they had a much greater profit motive to keep the places looking spiffy and they were in a better position to secure labor and materials at lower costs than any do-it-yourself HOA.

[fisher]

Shelly, the HOA meetings I have attended have always been interesting. I anticipate a decrease in association costs and much greater efficency in all area's.

Keep dreaming about this too, FFF.

[fisher]

Does this mean Watersound/Watercolor property prices might get even cheaper as association fees shoot skyward ?

How much lower can a formerly $500k lot go? Do I hear $150k?
:idontno:


Lot prices are already down to 2004 levels. I wouldn't be surprised to see them fall close to original lot and house prices from 2003. That would mean nice lots in the $250k range and cottages in phase I for under $1 million.

[fisher]

Joe, actually what we have been informed is personal who are directly associated with property management are affected. This void will be handled by other management firms that the HOA will have to contract with. Basically what they are doing is shifting more cost of managment to home owners. As a homeowner in WS, we fell pretty confident that we will do a much more efficent job in this area than St. Joe, and I am certain other communities feel the same. What I have been told is that St. Joe still will control through the design review process property build outs and fines.

Actually, what Joe is doing is outsourcing the management of the HOA (accounting, maintenance, etc.). This announcement does not mean that Joe is turning over CONTROL of the HOA's to the homeowners. Joe will continue to be the only vote that counts in HOA matters in Watercolor and Watersound.

[flyforfun]

Actually, what Joe is doing is outsourcing the management of the HOA (accounting, maintenance, etc.). This announcement does not mean that Joe is turning over CONTROL of the HOA's to the homeowners. Joe will continue to be the only vote that counts in HOA matters in Watercolor and Watersound.


Fisher you and Economic Meltdown Shelly fear change. You both see change as negative...never a positive spin on anything. Real estate goes up and down, but the beach will always be there. Neither of you own property in those developments. Our HOA's have been trimming budgets and have made lots of positive changes. Nothing changes in the DRB, and there is 140 homes currently in the process. Once St. Joe sells 50 more units, our HOA will have full control. When you buy into these developments all of this is spelled out, so its not a big deal unless you have never had to take care of yourself and manage a budget.

[goofer44]

...and in the mean time, look forward to seeing more subcontractors and their help drinking Budweiser on the sites. Currently, a builder is fined $500 per beer found being consumed on the jobsite by a builder or subs. With the guys who monitor and assess the fines being removed, you can also forget about the ban of working on the houses under construction on the weekend and after hours.

SJ....I respectively disagree with you on this point. The general contractors I have seen and talked with in WS are all straight shooters and stand-up guys who have a reputation to protect. Most successful general contractors deal with the same subs over and over so there is a simpatico and continuity on the jobsites. Granted, I have not talked with all the GC's and I am certain that some are better than others. But I do know that Ray Jackson, who is building my house is topshelf. I also know that Peter Horn of ARTISAN is also topshelf. The really good GC's run a tight ship and monitor the jobs very closely. They continually work with the most professional subs. All I can say is that I am EXTREMELY satisfied with Ray Jackson and the subs that are working on my project. I have spent considerable time at WSB and will continue to monitor my project. I am amazed at how clean the subs keep my jobsite. I have built 3 custom homes prior to WSB and I can say this project has been the smoothest and most professionally conducted.

[Smiling JOe]

SJ....I respectively disagree with you on this point. The general contractors I have seen and talked with in WS are all straight shooters and stand-up guys who have a reputation to protect. Most successful general contractors deal with the same subs over and over so there is a simpatico and continuity on the jobsites. Granted, I have not talked with all the GC's and I am certain that some are better than others. But I do know that Ray Jackson, who is building my house is topshelf. I also know that Peter Horn of ARTISAN is also topshelf. The really good GC's run a tight ship and monitor the jobs very closely. They continually work with the most professional subs. All I can say is that I am EXTREMELY satisfied with Ray Jackson and the subs that are working on my project. I have spent considerable time at WSB and will continue to monitor my project. I am amazed at how clean the subs keep my jobsite. I have built 3 custom homes prior to WSB and I can say this project has been the smoothest and most professionally conducted.I agree that most contractors do a fairly good job of monitoring their subs, and now that building has slowed, they are able to better monitor. Many of these contractors may have 10-15 homes being built at one time, scattered about Destin and SoWal and they cannot monitor every job site all of the time. I hear you refer of Peter Horn being topshelf, and I don't disagree with that. I do not know him, and his houses that he builds look nicely done. However, talk to my friends who own a house next door to two he was building adjacent to Seaside, and you will discover that the subs, on a daily basis were cooking in a crockpot on my friends front porch, using their electricity and lounging on their porch in their swing and chairs, on a daily basis. I personally witnessed it many times, and the crockpot was left there overnight for throughout the week when my friends were away. I made Artisian aware of the issue, and was told that it wouldn't happen again. The next day and the few weeks after, it was still happening.

This incident does not make Peter Horne a bad builder. It is just a real example of what happens on job sites around here. Most Gen. Contractors are not on there builds on a daily basis, unless they are a very small company. They leave that task to project managers.

[goofer44]

SJ

I told you that the successful gc's used good and SMART subs. Would you expect them to use their own electricity to cook in the crockpot? :D Artisan is building a house diagonally across from my house. When I am back in WSB next month I will stop there for lunch. I don't think the owner would mind. ;-) I am only kidding. Those guys, I hope, don't work for Peter any longer.

[Smiling JOe]

SJ

I told you that the successful gc's used good and SMART subs. Would you expect them to use their own electricity to cook in the crockpot? :D Artisan is building a house diagonally across from my house. When I am back in WSB next month I will stop there for lunch. I don't think the owner would mind. ;-) I am only kidding. Those guys, I hope, don't work for Peter any longer.They are probably enjoying your front porch tonight. :funn: