St. Joe Company
Encyclopedia
The St. Joe Company is a land development
company formerly headquartered in Jacksonville
, Florida
, United States. It is Florida
's second largest private landowner, owning about 585000 acres (2,367.4 km²) in the state at the end of 2009.
Testamentary Trust
by du Pont's brother-in-law Edward Ball. Prior to its establishment, the trust had already begun land purchases, making its first one in 1923. During the land booms in South Florida, the company acquired still-cheap land in the Florida Panhandle
. In 1933, du Pont's purchased the Apalachicola Northern Railroad, laying the foundations for what would be the St. Joe Company. Apalachicola Northern had extended its network from Chattahoochee
to Port St. Joe, Florida
in 1910, hoping to take advantage of increased shipping trade through the Panama Canal
. However, when the Great Depression
hit, business dropped off significantly. Du Pont purchased the struggling railroad and made plans to use the infrastructure to build a paper mill
, leading to the foundation of the St. Joe Company. Du Pont drew up elaborate plans for the development of his mill town as "The Model City of the South", but died before it could be completed. His brother-in-law, Ed Ball, took control of the St. Joe Company in 1935 but never acted on the master city plan.
Construction began in 1936 and from 1938 to 1996, the company operated a paper mill
at Port St. Joe, as St. Joe Paper Company. Land purchases continued throughout the 1940s and 1950s, often for "mere dollars an acre" and St. Joe eventually owned more than one million acres (4,000 km²). The company invigorated the local economy following the Depression, employing thousands at its paper mill, but wreaked havoc on the environment. The mill released sulfurous exhaust from sulfate pulping and dioxins, an unintended toxin generated by the chlorine bleaching process used to make white pulp. By the 1950s, the company was drawing 35 million gallons of water a day from the Floridan Aquifer
, seriously depleting the water table. St Joe Paper also clear-cut millions of acres of old growth forest
, engaging in silviculture
to replant the areas with slash pine
. The practice decimated the native longleaf pine
stands, reducing the species to "2 percent of its former range." Because of this, the United States Department of the Interior
designated parts of the region a Critically Endangered Ecosystem.
The paper mill was most profitable in the 1960s with products being directly marketed to company-owned box plants. However, an extended period of down time (9-months) due to market conditions in 1996 signaled the beginning of the end for the mill. After nearly sixty years, St. Joe decided to get out of the paper business. The mill was sold in 1996 to Florida Coast Paper for $390 million and was able to operate and produced paper until the decline of the container board market. The mill closed August 16, 1998 and did not reopen. The mill was gone by 2003.
After the dismantling of the paper mill, the St. Joe Company was back in town in 2008 to unveil a $344 million plan for the former mill site that was similar to Alfred du Pont's idealized Southern town – an integrated city with upscale residential districts, entertainment venues, a thriving port and a diverse economy. The company made a deal with the State of Florida to re-route US 98 inland to permit development of beachfront property.
and Hendry Counties in the Everglades
. St. Joe received negative publicity for their south Florida sugar cane business from labor unions and environmental groups, including by Cesar Chavez
of the United Farm Workers
. Additionally, pressures over environmental damage led the company to strike a deal with the federal government and state of Florida to sell its sugar business as part of an Everglades restoration project
; Florida paid $133.5 million in 1999 to St. Joe Co. for the 50960 acres (206.2 km²) Talisman Sugar Plantation. As part of the deal, the company continued using the land for an additional five years, during which it contracted the land to Florida Crystals and other sugar growers. In order to utilize some portions of the Talisman property which were not contiguous, land swaps with other sugar growers were necessary.
Some of St. Joe's most profitable deals came from selling conservation land to the state. A total of some 90,000 acres (360 km²) were purchased by the state for $182 million. The works out to an average of over $2,000 per acre—not a bad return on land that, according to the company website, was often purchased for "mere dollars an acre".
in 1960, which allowed the railroad to finally emerge from bankruptcy. On October 9, 2000, JOE spun off to its shareholders the 54% equity interest in FECI through the distribution of FECI Class B common shares.
, was hired in 1997 to lead their real estate business and became Chairman and CEO.
St. Joe built a 140000 sq ft (13,006.4 m²) corporate headquarters on the St. Johns River
in downtown Jacksonville in 2003. At the groundbreaking, Rummell said, "This is an important milestone for us. We don't get a lot of revenue from the city of Jacksonville, but it's important to who we are and what we are."
From their Jacksonville corporate headquarters, the company operates through four segments:
Since the national downturn in the real estate market in the mid-2000s, the company's sales suffered, with earnings dropping off by 60 percent in 2006. As a result, the company cut its workforce, exited the homebuilding market and sold its office holdings which included the corporate headquarters built in 2003. Britt Greene was promoted to President and COO in October, 2007.
In the late 1900s, St. Joe began to sell timber land in rural areas after deciding to focus on community and commercial development. Rummell departed in August, 2008 and was replaced by Hugh Durden as Chairman of the Board. Durden was also Chairman of the Alfred I. duPont Testamentary Trust
since 2005.
In December 2009, the company acknowledged selling two large developments at a loss, which they characterized as "non-strategic". The transactions were intended to take advantage of federal tax rules on losses from the sale of assets.
On March 18, 2010 the company announced plans to relocate their corporate headquarters to a site near the Northwest Florida Beaches International Airport when their current lease expires in 2011. Most of the company’s land is located in the panhandle and their success depends on development there.
in the hope that a larger airport would attract wealthier home buyers. St. Joe owns about 78000 acres (315.7 km²) of land in the area surrounding the new airport site, and has announced plans to build 5,800 homes and 4300000 square feet (399,483.1 m²) of commercial space. The company has also offered to donate about 40,000 acres (160 km²) for preservation. The project attracted quite a bit of opposition, including taxpayer and environmental groups who pointed out that the current airport was operating at only half its capacity—with 12 outbound flights a day— and the new facility would primarily benefit one developer, at taxpayer expense. The new airport was approved and construction began in 2009 on 4000 acres (16.2 km²) donated by St. Joe.
The Northwest Florida Beaches International Airport
opened on May 23, 2010 northwest of Panama City.
will replace them.
Land development
Land development refers to altering the landscape in any number of ways such as:* changing landforms from a natural or semi-natural state for a purpose such as agriculture or housing...
company formerly headquartered in Jacksonville
Jacksonville, Florida
Jacksonville is the largest city in the U.S. state of Florida in terms of both population and land area, and the largest city by area in the contiguous United States. It is the county seat of Duval County, with which the city government consolidated in 1968...
, Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
, United States. It is Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
's second largest private landowner, owning about 585000 acres (2,367.4 km²) in the state at the end of 2009.
Beginning
The company was originally founded in 1936 as part of the Alfred I. du PontAlfred I. du Pont
Alfred Irénée du Pont was an American industrialist, financier and philanthropist. A member of the influential Du Pont family, Alfred du Pont first rose to prominence through his work in his family's Delaware-based gunpowder manufacturing plant, E. I...
Testamentary Trust
Alfred I. duPont Testamentary Trust
The Alfred I. duPont Testamentary Trust is a non-profit organization created by philanthropist Alfred I. du Pont in 1935, devoted to supporting the Trust's sole charitable beneficiary, the Nemours Foundation. As of December 31, 2008, the trust’s value was $3.25 billion and employed nearly 3,500...
by du Pont's brother-in-law Edward Ball. Prior to its establishment, the trust had already begun land purchases, making its first one in 1923. During the land booms in South Florida, the company acquired still-cheap land in the Florida Panhandle
Florida Panhandle
The Florida Panhandle, an informal, unofficial term for the northwestern part of Florida, is a strip of land roughly 200 miles long and 50 to 100 miles wide , lying between Alabama on the north and the west, Georgia also on the north, and the Gulf of Mexico to the south. Its eastern boundary is...
. In 1933, du Pont's purchased the Apalachicola Northern Railroad, laying the foundations for what would be the St. Joe Company. Apalachicola Northern had extended its network from Chattahoochee
Chattahoochee, Florida
Chattahoochee is a city in Gadsden County, Florida, United States. The population was 3,287 at the 2000 census. According to the U.S Census estimates of 2005, the city had a population of 3,720. It is part of the Tallahassee, Florida Metropolitan Statistical Area.-Geography:Chattahoochee is...
to Port St. Joe, Florida
Port St. Joe, Florida
Port St. Joe is a city located at the intersection of U.S. Highway 98 and State Road 71 in Gulf County, Florida, United States. As of 2007, the population estimated by the U.S. Census Bureau is 3,579. The population was 3,644 as of the 2000 census. Port St. Joe became the county seat of Gulf County...
in 1910, hoping to take advantage of increased shipping trade through the Panama Canal
Panama Canal
The Panama Canal is a ship canal in Panama that joins the Atlantic Ocean and the Pacific Ocean and is a key conduit for international maritime trade. Built from 1904 to 1914, the canal has seen annual traffic rise from about 1,000 ships early on to 14,702 vessels measuring a total of 309.6...
. However, when the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
hit, business dropped off significantly. Du Pont purchased the struggling railroad and made plans to use the infrastructure to build a paper mill
Paper mill
A paper mill is a factory devoted to making paper from vegetable fibres such as wood pulp, old rags and other ingredients using a Fourdrinier machine or other type of paper machine.- History :...
, leading to the foundation of the St. Joe Company. Du Pont drew up elaborate plans for the development of his mill town as "The Model City of the South", but died before it could be completed. His brother-in-law, Ed Ball, took control of the St. Joe Company in 1935 but never acted on the master city plan.
Construction began in 1936 and from 1938 to 1996, the company operated a paper mill
Paper mill
A paper mill is a factory devoted to making paper from vegetable fibres such as wood pulp, old rags and other ingredients using a Fourdrinier machine or other type of paper machine.- History :...
at Port St. Joe, as St. Joe Paper Company. Land purchases continued throughout the 1940s and 1950s, often for "mere dollars an acre" and St. Joe eventually owned more than one million acres (4,000 km²). The company invigorated the local economy following the Depression, employing thousands at its paper mill, but wreaked havoc on the environment. The mill released sulfurous exhaust from sulfate pulping and dioxins, an unintended toxin generated by the chlorine bleaching process used to make white pulp. By the 1950s, the company was drawing 35 million gallons of water a day from the Floridan Aquifer
Floridan Aquifer
The Floridan Aquifer is a portion of the principal artesian aquifer that extends into Florida and is composed of carbonate rock and located beneath the coastal regions of the Southeastern United States and is one of the world's most productive aquifers. It is under all of Florida as well as ...
, seriously depleting the water table. St Joe Paper also clear-cut millions of acres of old growth forest
Old growth forest
An old-growth forest is a forest that has attained great age , and thereby exhibits unique ecological features. An old growth forest has also usually reached a climax community...
, engaging in silviculture
Silviculture
Silviculture is the practice of controlling the establishment, growth, composition, health, and quality of forests to meet diverse needs and values. The name comes from the Latin silvi- + culture...
to replant the areas with slash pine
Slash Pine
Pinus elliottii, commonly known as the Slash Pine, is a pine native to the southeastern United States, from southern South Carolina west to southeastern Louisiana, and south to the Florida Keys....
. The practice decimated the native longleaf pine
Longleaf Pine
Pinus palustris, commonly known as the Longleaf Pine, is a pine native to the southeastern United States, found along the coastal plain from eastern Texas to southeast Virginia extending into northern and central Florida....
stands, reducing the species to "2 percent of its former range." Because of this, the United States Department of the Interior
United States Department of the Interior
The United States Department of the Interior is the United States federal executive department of the U.S. government responsible for the management and conservation of most federal land and natural resources, and the administration of programs relating to Native Americans, Alaska Natives, Native...
designated parts of the region a Critically Endangered Ecosystem.
The paper mill was most profitable in the 1960s with products being directly marketed to company-owned box plants. However, an extended period of down time (9-months) due to market conditions in 1996 signaled the beginning of the end for the mill. After nearly sixty years, St. Joe decided to get out of the paper business. The mill was sold in 1996 to Florida Coast Paper for $390 million and was able to operate and produced paper until the decline of the container board market. The mill closed August 16, 1998 and did not reopen. The mill was gone by 2003.
After the dismantling of the paper mill, the St. Joe Company was back in town in 2008 to unveil a $344 million plan for the former mill site that was similar to Alfred du Pont's idealized Southern town – an integrated city with upscale residential districts, entertainment venues, a thriving port and a diverse economy. The company made a deal with the State of Florida to re-route US 98 inland to permit development of beachfront property.
Talisman Sugar Corporation
St. Joe acquired the Talisman Sugar Company in 1972, which included almost 50000 acres (202.3 km²) in Palm BeachPalm Beach County, Florida
Palm Beach County is the largest county in the state of Florida in total area, and third in population. As of 2010, the county's estimated population was 1,320,134, making it the twenty-eighth most populous in the United States...
and Hendry Counties in the Everglades
Everglades
The Everglades are subtropical wetlands in the southern portion of the U.S. state of Florida, comprising the southern half of a large watershed. The system begins near Orlando with the Kissimmee River, which discharges into the vast but shallow Lake Okeechobee...
. St. Joe received negative publicity for their south Florida sugar cane business from labor unions and environmental groups, including by Cesar Chavez
César Chávez
César Estrada Chávez was an American farm worker, labor leader, and civil rights activist who, with Dolores Huerta, co-founded the National Farm Workers Association, which later became the United Farm Workers ....
of the United Farm Workers
United Farm Workers
The United Farm Workers of America is a labor union created from the merging of two groups, the Agricultural Workers Organizing Committee led by Filipino organizer Larry Itliong, and the National Farm Workers Association led by César Chávez...
. Additionally, pressures over environmental damage led the company to strike a deal with the federal government and state of Florida to sell its sugar business as part of an Everglades restoration project
Restoration of the Everglades
The restoration of the Everglades is an ongoing effort to remedy damage inflicted on the environment of southern Florida during the 20th century. It is the most expensive and comprehensive environmental repair attempt in history. The degradation of the Everglades became an issue in the United...
; Florida paid $133.5 million in 1999 to St. Joe Co. for the 50960 acres (206.2 km²) Talisman Sugar Plantation. As part of the deal, the company continued using the land for an additional five years, during which it contracted the land to Florida Crystals and other sugar growers. In order to utilize some portions of the Talisman property which were not contiguous, land swaps with other sugar growers were necessary.
Some of St. Joe's most profitable deals came from selling conservation land to the state. A total of some 90,000 acres (360 km²) were purchased by the state for $182 million. The works out to an average of over $2,000 per acre—not a bad return on land that, according to the company website, was often purchased for "mere dollars an acre".
Florida East Coast Industries
Ball acquired a controlling interest in Florida East Coast Railroad for the Alfred I. duPont Testamentary TrustAlfred I. duPont Testamentary Trust
The Alfred I. duPont Testamentary Trust is a non-profit organization created by philanthropist Alfred I. du Pont in 1935, devoted to supporting the Trust's sole charitable beneficiary, the Nemours Foundation. As of December 31, 2008, the trust’s value was $3.25 billion and employed nearly 3,500...
in 1960, which allowed the railroad to finally emerge from bankruptcy. On October 9, 2000, JOE spun off to its shareholders the 54% equity interest in FECI through the distribution of FECI Class B common shares.
Post Ball era
Following Ball's death in 1981, the company began to sell off its industrial operations and focus on land development. As a developer, St. Joe has distinguished itself as catering to more "well-heeled" clientele, but has also established a reputation as more environmentally friendly than the company under Ball. Pete Rummell, formerly chairman of Walt Disney ImagineeringWalt Disney Imagineering
Walt Disney Imagineering is the design and development arm of the Walt Disney Company, responsible for the creation and construction of Disney theme parks worldwide...
, was hired in 1997 to lead their real estate business and became Chairman and CEO.
St. Joe built a 140000 sq ft (13,006.4 m²) corporate headquarters on the St. Johns River
St. Johns River
The St. Johns River is the longest river in the U.S. state of Florida and its most significant for commercial and recreational use. At long, it winds through or borders twelve counties, three of which are the state's largest. The drop in elevation from the headwaters to the mouth is less than ;...
in downtown Jacksonville in 2003. At the groundbreaking, Rummell said, "This is an important milestone for us. We don't get a lot of revenue from the city of Jacksonville, but it's important to who we are and what we are."
From their Jacksonville corporate headquarters, the company operates through four segments:
- Residential Real Estate develops large-scale, mixed-use resort, seasonal and primary residential communities, as well as selling housing units and home sites to retail customers and builders.
- Commercial Real Estate develops and sells commercial properties, including retail properties, multifamily parcels, office parks and commerce parks. St. Joe also owns a portfolio of office properties located in the southeast US.
- Rural Land Sales markets parcels for various rural residential and recreational uses in northwest Florida. It sells parcels of undeveloped land and developed home sites within rural settings.
- Forestry grows, harvests and sells timber and wood fiber. Its products primarily include pine pulpwood, timber and cypress products.
Since the national downturn in the real estate market in the mid-2000s, the company's sales suffered, with earnings dropping off by 60 percent in 2006. As a result, the company cut its workforce, exited the homebuilding market and sold its office holdings which included the corporate headquarters built in 2003. Britt Greene was promoted to President and COO in October, 2007.
In the late 1900s, St. Joe began to sell timber land in rural areas after deciding to focus on community and commercial development. Rummell departed in August, 2008 and was replaced by Hugh Durden as Chairman of the Board. Durden was also Chairman of the Alfred I. duPont Testamentary Trust
Alfred I. duPont Testamentary Trust
The Alfred I. duPont Testamentary Trust is a non-profit organization created by philanthropist Alfred I. du Pont in 1935, devoted to supporting the Trust's sole charitable beneficiary, the Nemours Foundation. As of December 31, 2008, the trust’s value was $3.25 billion and employed nearly 3,500...
since 2005.
In December 2009, the company acknowledged selling two large developments at a loss, which they characterized as "non-strategic". The transactions were intended to take advantage of federal tax rules on losses from the sale of assets.
On March 18, 2010 the company announced plans to relocate their corporate headquarters to a site near the Northwest Florida Beaches International Airport when their current lease expires in 2011. Most of the company’s land is located in the panhandle and their success depends on development there.
Bay County
The company began marketing the panhandle region as "Florida's Great Northwest" and was the major force behind plans to relocate and dramatically expand Panama City-Bay County International AirportPanama City-Bay County International Airport
Panama City-Bay County International Airport is a former public use airport located three nautical miles northwest of the central business district of Panama City, in Bay County, Florida, United States. It was owned and operated by the Panama City-Bay County Airport and Industrial District...
in the hope that a larger airport would attract wealthier home buyers. St. Joe owns about 78000 acres (315.7 km²) of land in the area surrounding the new airport site, and has announced plans to build 5,800 homes and 4300000 square feet (399,483.1 m²) of commercial space. The company has also offered to donate about 40,000 acres (160 km²) for preservation. The project attracted quite a bit of opposition, including taxpayer and environmental groups who pointed out that the current airport was operating at only half its capacity—with 12 outbound flights a day— and the new facility would primarily benefit one developer, at taxpayer expense. The new airport was approved and construction began in 2009 on 4000 acres (16.2 km²) donated by St. Joe.
The Northwest Florida Beaches International Airport
Northwest Florida Beaches International Airport
-External links:*...
opened on May 23, 2010 northwest of Panama City.
Shakeup
At the end of February, 2011, St. Joe announced that Britt Greene had resigned as CEO and President of the company. The company's largest shareholder, Fairholme, disagreed with management's asset development plans and sought to replace certain board members. Greene and three other members will announce their resignation from the board within a few days. Two members from Fairholme and former Florida Governor Charlie CristCharlie Crist
Charles Joseph "Charlie" Crist, Jr. is an American politician who was the 44th Governor of Florida. Prior to his election as governor, Crist previously served as Florida State Senator, Education Commissioner, and Attorney General...
will replace them.