Pier Park Groundbreaking Marks New Era for Panama City Beach and Bay County

A Partnership of The St. Joe Company and the City of Panama City Beach to Create New Family Destination

Pier Park Called Regional Economic Catalyst, a Magnet for Visitors

Press Release: The St. Joe Company
March 14, 2002
PANAMA CITY BEACH, FL -- Local officials, area business leaders and representatives of The St. Joe Company (NYSE:JOE) broke ground yesterday for a new regional retail complex that is expected to trigger new economic growth in Panama City Beach and throughout Bay County.

Pier Park is a public/private venture between St. Joe and the City of Panama City Beach. The project has been designed to augment and revitalize the city's pier district. Completion of the first phase next spring could bring 500 new jobs to Panama City Beach.

Pier Park is sequenced for development over a number of years and designed for more than one million square feet of retail venues and a variety of restaurant and entertainment options for the entire family.

``This is the beginning of a new era for our community,'' Panama City Beach Mayor Lee Sullivan declared. ``Pier Park is a key part of our future, our vision and our dream.''

St. Joe Commercial, the company's commercial real estate development unit, will develop Pier Park. The project also includes the expansion, redevelopment and improvement of the city's Aaron Bessant and Frank Brown Parks.

Sullivan said the development will create a central gathering place for the community of Panama City Beach. He said the expansion of Aaron Bessant Park from 48 acres to 83 acres will enable the city to host a greater range of special events, such as art and music festivals, that will attract more visitors to Panama City Beach. The Partnership Agreement also provides for a St. Joe contribution of 30 acres to the Frank Brown Park.

``The future begins here today,'' said Sullivan. ``Pier Park is going to help make Panama City Beach a better place to live and visit 365 days a year. This project and other improvements, such as the relocated airport, are going to make us a better destination.''

Kevin M. Twomey, president, COO and CFO of St. Joe, called the start of Pier Park a critical turning point. ``The significance of this event extends beyond this community, beyond this city,'' said Twomey. ``Taking a broader view, Pier Park is a very important component of a coordinated region-wide strategy to promote quality economic development in Northwest Florida.''

Twomey said Pier Park reflects St. Joe's commitment to building value throughout Florida's Great Northwest. ``St. Joe's future and the future of this area are locked together,'' he said. ``We will truly succeed only if our projects, taken collectively, fit together and make this part of Florida a better place.

Sullivan lauded St. Joe for sticking with the project despite delays that have pushed Pier Park's projected opening back by more than a year. ``St. Joe showed its dedication by staying the course,'' Sullivan said. ``Other companies might have given up when things got tough, but St. Joe had the commitment to see it through.''

``It's St. Joe Commercial's job to execute the community's vision,'' said Frank Herring, president of St. Joe Commercial. ``We're excited by the challenge. We have a partnership with Panama City Beach and an approved DRI development order for over one million square feet of mixed use space. The Community Development District will soon issue the bonds to fund the project's infrastructure.''

``By next spring, we hope to have completed critical infrastructure components, including Pier Park Drive, West Park Drive, the master drainage systems and the project's initial signage and identification -- and have 140 acres ready for development,'' said Herring. ``Under the current circumstances, development is scheduled to begin on the north side of the project and move toward the beach.''

``At the same time we are preparing the infrastructure, we are aggressively pursuing quality development partners and tenants to provide exciting shopping, dining and entertainment venues,'' Herring said.

Herring introduced Gary Stetson of Quality Centers as one of the key partners for Pier Park's phase one. ``We expect Quality Centers to begin work on 250,000 square feet of retail space on 26 acres this fall. During this early construction phase 125 new jobs will be created to be followed by an estimated 500 new jobs when completed next spring.''

The City of Panama City Beach is located in Bay County in Northwest Florida on the Gulf of Mexico. It is home to some of the most beautiful beaches in the world.

St. Joe Commercial is one of the largest integrated commercial real estate development organizations in Florida developing more than 3.5 million square feet of commercial space since its inception in 1998. Currently the company has more than 1 million square feet of space in development throughout Florida. St. Joe Commercial is the commercial development arm of The St. Joe Company.

The St. Joe Company, a publicly held company based in Jacksonville, is Florida's largest real estate operating company. It is engaged in community, commercial, industrial, hospitality, leisure and resort development, along with residential and commercial real estate services. The company also has significant interests in timber. More information about St. Joe can be found on the web at http://www.joe.com.

Forward-Looking Statements

Certain matters discussed in this press release are ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Some matters involve risk and uncertainty, and there can be no assurance that the results described in such forward-looking statements will be realized. In particular, discussions regarding the size and number of commercial buildings, residential units, development timetables, development approvals and the ability to obtain approvals, anticipated price ranges of developments, the number of units that can be supported upon full build-out of development, the number and price of anticipated land sales, and the absorption rate and expected gain on land sales and statements concerning future operating performance and short- and long-term revenue and earnings growth rates and comparisons to historical projects are forward-looking statements. Such statements are based on current expectations and are subject to certain risks. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, the company's actual performance may differ materially from that indicated or suggested by any forward-looking statement contained herein. Additional risk factors that may cause actual results to differ materially from those expressed in forward-looking statements contained in the press release are described in various documents filed by the company with the U.S. Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 2000.

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Contact: 

     Media Contacts:
     The City of Panama City Beach, Panama City Beach
     Mayor Lee Sullivan, 850/233-5100
     or
     St. Joe Commercial
     Alison Mosley, 407/355-6112
     or
     The St. Joe Company, Jacksonville
     Jerry M. Ray, 904/858-2707
     or
     Investor Contact:
     The St. Joe Company
     Steve Swartz, 904/858-5295