# Panama City, Florida

Application for a 

# Small Community Air Service Development Program Grant Docket DOT-OST-2014-0113 By the **Panama City-Bay County Airport and Industrial District** For the **Northwest Florida Beaches International Airport**
DUNS# 096597869 Congressional District: FL-2APPLICATION UNDER SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM DOCKET DOT-OST-2014-0133

SUMMARY INFORMATION 1
All applicants must submit this Summary Information schedule, as the application coversheet, a completed standard form SF 424 and the full application proposal on www.grants.gov . For your preparation convenience, this Summary Information schedule is located at http://www.dot.gov/policy/aviation-policy/sm all-community-rural -air-service/SCASDP
A. P ROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL
NUMBERING SYSTEM (DUNS) NUMBER , INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER (EIN) OR TAX ID . Legal Sponsor Name: Name of Signatory Party for Legal Sponsor: DUNS Number: EIN/Tax ID:

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING : 1.____________________________________________________ 2.____________________________________________________ 3.____________________________________________________ 4.____________________________________________________

C. P ROVIDE THE FULL AIRPORT NAME AND 3-L ETTER IATA A IRPORT C ODE FOR THE
APPLICANT ( S ) AIRPORT ( S ) (O NLY PROVIDE CODES FOR THE AIRPORT ( S ) THAT ARE ACTUALLY
SEEKING SERVICE ). 1. 2. 3. 4.

1 Note that the Summary Information does not count against the 20-page limit of the SCASDP application. Enter Y or N 

### Panama City - Bay County Airport and Industrial District Mr. Parker W. McClellan, Jr., Executive Director 

### 096597869 59-6002804

Panama City, Florida

Northwest Florida Beaches Int'l. Airport (ECP)D OES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY
THE F EDERAL A VIATION A DMINISTRATION UNDER 14 CFR P ART 139? (I F “N O ”, P LEASE
EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A CERTIFICATE OR WHETHER AN
APPLICATION UNDER P ART 139 IS PENDING .) Yes No (explain)

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______________________________________________________________________________ D. L IST THE 2- DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING
ORGANIZATION , AND IF A CONSORTIUM , TO EACH PARTICIPATING COMMUNITY . 1. 2. 3. 4.

E. A PPLICANT I NFORMATION : (C HECK A LL T HAT A PPLY ) Not a Consortium Intersta te Consortium Intrastate Consortium Community currently receives subsidized Essential Air Service Community (or Consortium member) previously received a Small Community Air Service Development Program Grant If previous recipient: Provide year of grant(s):_______________________________; and, the text of the grant agreemen t section(s) setting forth th e scope of the grant project :

_________________________________________________________________________

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_________________________________________________________________________

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_________________________________________________________________________ F. P UBLIC /P RIVATE P ARTNERSHIPS : (L IST O RGANIZATION NAMES ) PUBLIC PRIVATE 1. 1. 2. 2. 3. 3. 4. 4. 5. 5.



### ✔

✔ 

### FL-02

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### 2007

- Secure scheduled airline service to Charlotte, North Carolina; Houston, Texas; and/or Dallas Ft. Worth, Texas; - Provide station operating cost support for the new service; and - Provide marketing and advertising support for the new service. - Secure scheduled airline service to Charlotte, North Carolina; Houston, Texas; and/or Dallas Ft. Worth, Texas; - Provide station operating cost support for the new service; and - Provide marketing and advertising support for the new service.

Panama City-Bay County Airport and Industrial District Panama City Beach CVB/Bay County TDC 

### The St. Joe Company Panama City Beach Chamber of Commerce 

### Bay County Chamber of CommerceG. P ROJECT P ROPOSAL : 1. G RANT G OALS : ( CHECK ALL THAT APPLY )

Launch New Carrier Secure Additional Service Upgrade Aircraft First Service New Route Service Restoration Regional Service Sur face Transportation Professional Services 2 Other (explain below)

2. F INANCIAL T OOLS T O B E U SED : ( CHECK ALL THAT APPLY )

Marketing (including Advertising): promotion of the air service to the public Start-up Cost Offset: offsetting expenses to assist an air service provider in setting up a new station and starting new service (for example, ticket counter reconfiguration) Revenue Guarantee: an agreement with an air service provider setting forth a minimum guaranteed profit margin, a portion of whic h is eligible for reimbursement by the community Recruitment of Air Carrier: air service development activities to recruit new air service, including expenses for airport marketers to m eet with air service providers to make the case for new air service Fee Waivers: waiver of airport fees, such as landing fees, to encourage new air service; counted as in-kind contributions only Ground Handling Fee: reimbursement of expenses for pa ssenger, cabin, and ramp (below wing) services provided by third party ground handlers Travel Bank: travel pledges, or deposited monetary funds, from participating parties for the purchase of air travel on an air carrier, w ith defined procedures for the subsequent use of the pledges or the deposited funds; counted as in-kind contributions only

2 “Professional Services” involve a community contracting with a firm to produce a product such as a marketing plan, study, air carrier proposal, etc. 

### ✔ ✔ ✔

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✔Other (explain below)

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H. E XISTING L ANDING A IDS AT L OCAL A IRPORT : Full ILS Outer/Middl e Marker Published Instrument Approach Localizer Other (specify)

I. P ROJECT C OST : D O NOT ENTER TEXT IN SHADED AREA L INE D ESCRIPTION S UB T OTAL T OTAL A MOUNT 1 Federal amount requested 2 State cash financial contribution Local cash financial contribution 3a Airport cash funds 3b Non-airport cash funds 3 Total local cash funds ( 3a + 3b ) 4 TOTAL CASH FUNDING ( 1+2+3 ) In-Kind contribution 5a Airport In-Kind contribution** 5b Other In-Kind contribution** 5 TOTAL IN-KIND CONTRIBUTION ( 5a + 5b ) 6 TOTAL PROJECT COST ( 4+5 )

J. IN-KIND CONTRIBUTIONS** For funds in lines 5a (Airport In-Kind contributio n) and 5b (Other In-Kind contribution), please describe the source(s) of fund(s) and the value ($) of each. ✔ ✔ 

### ✔ ✔ ✔ GPS based RNAV

Enter Y or N

$400,000 $0

$0 $350,000 $350,000 $750,000

$962,700 $100,000 $1,062,700 $1,812,700

5(a) - Airport rents/fees rebate $962,700. Source is airport general fund. 5(b) - Panama City Beach Chamber of Commerce and Bay County Chamber of Commerce - $50,000 from each entity.K. I S T HIS A PPLICATION S UBJECT T O R EVIEW B Y AN A FFECTED S TATE U NDER E XECUTIVE O RDER 12372 P ROCESS ? a. This application was made available to the State under the Executive Order 12372 Process for review on (date) _____________. b. Program is subject to E.O. 12372, but has not been selected by the State for review. c. Program is not covered by E.O. 12372.

L. I S T HE L EAD A PPLICANT OR A NY C O -A PPLICANTS D ELINQUENT O N A NY F EDERAL D EBT ? (I F “Y ES ”, P ROVIDE E XPLANATION ) No Yes (explain)

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______________________________________________________________________________ APPLICATION CHECKLIST
I NCLUDED ? I TEM For Immediate Action Determine Eligibility New Grants.gov users must register with www.grants.gov

. Existing Grants.gov users must verify existing www.grants.gov account has not expired and the Authorized Organization Representative (AOR) is current. For Submission by 5:00 PM EDT on July 31, 2014 Communities with active SCASDP grants: notify DOT/X50 of intent to terminate existing grant in order to be eligible for selection in FY2014 Complete Application for Federal Domestic Assistance (SF424) via www.grants.gov Summary Information schedule complete and used as cover sheet (see Appendix B ) Application of up to 20 one-sided pages (excluding any letters from the community or an air carrier show ing support for the application ) , to include:

x A description of the community’s air service needs or deficiencies.

x A strategic plan for meeting those needs under the Small Community Program.

x A detailed description of the funding necessary for implementation of the community's project.

x An explanation of how the proposed project differs from any previous projects for which the community received SCASDP funds (if applicable).

x Designation of a legal sponsor responsible for administering the program.

x A motion for confidential treatment (if applicable) – see Appendix D below. ✔

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Enter Y or N N/A N/A

N/A N/A Yes Yes
Yes Yes Yes

Yes
Yes

Noi Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113


## Table of Contents

1. Executive Summary .................................................................................................. 1 1.1 Introduction and Background ..................................................................................... 1 1.2 Previous SCADSP Grant Awards .............................................................................. 2
2. Overview of ECP Market ......................................................................................... 3 2.1 Catchment Area ......................................................................................................... 3 2.2 Economic Base and Tourism ..................................................................................... 4 2.2.1 Economic Ba se ......................................................................................................... 4 2.2.2 Tourism .................................................................................................................... 5 2.3 Historical Air Service Trends..................................................................................... 6 2.3.1 Airline Base and Dest inations Served ....................................................................... 6 2.3.2 Traffic and Fares ....................................................................................................... 7 2.4 Current Deficiencies and Proposed New Service ....................................................... 8 2.4.1 Air Service Development Efforts a nd Current Needs/De ficiencies ........................... 8 2.4.2 Proposed New JetB lue Service ................................................................................. 8
3. Strategic Plan for Air Service ................................................................................ 10 3.1 Strategic Goals an d Objectives ................................................................................ 10 3.2 Public-Private Partnership ........................................................................................ 11 3.3 Strategic Use of Funds, Implemen tation Timeline and Monitoring ......................... 12 3.4 Funding Plan and Grant Request .............................................................................. 14 3.5 Legal Sponsor .......................................................................................................... 15

Appendix A: Additional Support Letters Appendix B: New York City Media Articles Rega rding Northwest Florida Beaches International Airport Catchment Area Tourism1 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113



## 1. Executive Summary

1.1 Introduction and Background The Panama City – Bay County Airport and Industri al District (“District”) requests a grant of $400,000 from the U.S. DOT’s Small Community Air Service Development Program to help provide marketing support for a new daily JetB lue Airways service between Northwest Florida Beaches International Airport in Panama City, Florida (“Airport” or “ECP”) and John F. Kennedy International Airport in New York City, New York (“JFK”). The grant wi ll be supplemented with $350,000 in local cash contributions from orga nizations focused on inbound marketing and $1,062,700 of in-kind contributions, including support from organizations focused on outbound marketing and airport cost rebates for the new service. The new JetBlue service envisioned in this grant ap plication would help to address two significant air service deficiencies at the Airport as identif ied by the District. It would provide new nonstop service in the top unserved O&D market from th e Catchment Area (see definition in Section 2.1 below) – New York City. A new JetBlue ECP-JFK service would also broade n the carrier base at the Airport and provide downward fare pressure in key markets to the Northeast portion of the United States, significantly stim ulating air travel volumes betw een the Northeast and the entire Florida Panhandle Region. The proposal also meets five of the six priority selection criteria set out in the Notice of Order Soliciting Community Proposals:

 “The community or consortium will provide a por tion of the cost of th e activity from local sources other than airport revenue sources.” A broad range of local private entities are contributing $350,000 in cash plus $100,000 of in-k ind support. This constitutes a 112.5% match of the grant request amount of $400,000.

 “The community or consortium has established or will establish a public -private partnership to facilitate air carrier service to the public.” A partnership has been formed in support of the new JetBlue ECP-JFK service between the Airport (public) and the following private entities: Panama City Beach Convention and Visitors Bureau/Bay County Tourist Development Council, The St. Joe Company, th e Panama City Beach Chamber of Commerce and the Bay County Chamber of Commerce. Each entity will play an active role in the marketing campaign (either inbound or outbou nd) designed to support the new JetBlue service.2 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113

 “ The assistance will provide material benefits to a broad segment of the traveling public, including businesses, education institutions and other enterprises, whose access to the national air transportation system is limited.” The assistance would facilitate the only nonstop, low-cost carrier service to New York City and the Northeast portion of the United States from the entire Florida Panhandle Re gion. This service would help economically support a wide range of tourism-dependent busin esses in the Catchment Area and the Region as a whole by providing a new source of relatively affluent travelers. In turn, local residents and businesses from as far away as Pensacola and Tallahassee would gain new, nonstop lowfare access to New York City and the Northeast.

 “The assistance will be used in a timely manner.” We have coordinate d this proposal with JetBlue and new service (and the assistance envisioned by this grant) could be implemented as early as Spring 2015, with the funds being used within a two-year time frame as requested by the U.S. DOT.

 “Multiple communities cooperate to submit a regional or multistate application to consolidate air service into one regional airport.” Although this proposal does not consolidate all air service into one regional airport, it envisi ons a unique service from the airport most centrally located in the Florida Panhandle Region that residents and businesses in the entire Region can benefit from and should support. It w ould have the practical effect of making the Airport the de facto regional gate way to the Northeast at the present time.

1.2 Previous SCADSP Grant Awards In 2007, the Panama City – Bay County Airport an d Industrial District was awarded a grant of $575,000 to help offset (as described in the 2 007 application), ”a reve nue guarantee, marketing assistance and start-up cost relief for three daily regional jet fl ights to new destination hubs in the Southeastern U.S. (Charlotte ) or to the Southwestern U.S. (Dallas and Houston).” The current proposed project repr esents a new project and does not violate the “Same Project” limitation as described in the No tice of Order Soliciting Commun ity Proposals. The goals and objectives of the current application, securing new daily service to a low-cost carrier destination hub in the Northeast United States via mainline ai rcraft are substantially different from the goals and objectives described in the 2007 application. Additionally, the means by which the goals and objectives are to be achieved are somewhat different, as th e current application does not contemplate the use of a revenu e guarantee as the 2007 application did. Fi nally, the current application will support service from the new Northwest Florida Beaches International Airport which opened for commercial flights in May 2010, rather than now closed Panama City – Bay County International Ai rport as proposed in the 2007 application.3 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113



## 2. Overview of ECP Market

2.1 Catchment Area

The Northwest Florida Beaches International Ai rport is located in Bay County, Florida, approximately 18 miles northwest of Panama City, Fl orida. The Airport is one of four airports providing commercial service in the Florida Panha ndle Region and is the airport most centrally located in the middle of the Region (see map belo w). This favorable geographic positioning for serving the entire Region was a significant reason why Southwest Airlines chose the Airport as its initial gateway for the Region, commencing service to the Region in conjunct ion with the Airport’s opening.
The Northwest Florida Beaches Inte rnational Airport primary catchme nt area (depicted in blue in the map below, referred to as “Catchment Area ”) is a six-county area with an approximate population of 484,000 in 2013. The primary catchment area also overlaps with significant portions of the Northwest Florida Regi onal Airport (“VPS”) catchmen t area. A broader secondary catchment area includes nine addi tional counties in Florida (inclu ding the counties where the major population centers of Pensacola and Tallahassee ar e located – each within two hours driving time from the Airport), five counties in southeast Alabama and two coun ties in southwest Georgia. The primary and secondary catchment ar eas together have a population of over 1.5 million. Given the catchment areas described above, a new JetBlue service (the only non stop, low-cost carrier service to New York City and the Northeast portion of the United States from the Region) could reasonably be expected to bring material benefits to a wide range of travelers in not just the local community, but the Region as a whole.4 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113

2.2 Economic Base and Tourism

2.2.1 Economic Base Economic indicators statis tically correlated to ai r travel demand can be used as a broad proxy for the potential ability of the Catchment Area populati on to utilize new air serv ice (e.g., a new JetBlue ECP-JFK flight). The Catchment Ar ea has had, and is in most cases forecast to continue to have, significantly better performance than the United States as a whole using economic indicators such as annual population growth, un employment rate, Gross Regional Product growth and total personal income growth (see table below).

Economic Indicators Correlated to Air Travel Demand

ECONOMIC INDICATOR ECP CATCHMENT FLORIDA U.S. 2003-2013 Annual Population Growth 1.1% 1.4% 0.9% 2013-2020(f) Annual Population Growth 1.2% 1.4% 1.0% June 2014 Unemployment Rate (not seas. adj.) 4.9% 6.2% 6.3%
2003-2013 Annual GRP Growth 1.9% 1.4% 1.4% 2013(est.)-2020(f) Annual GRP Growth 2.4% 2.6% 2.2%
2003-2013 Annual Total Pers. Income Growth 1.4% 0.8% 1.0% 2013(est.)-2020(f) Annual Total Pers. Inc ome Growth 1.1% 1.2% 1.3%

Sources: Woods & Poole Economics, Inc., CEDDS 201 4 data and U.S. Bureau of Labor Statistics.
The Catchment Area’s economic base remains closely ti ed to the military and tourism. Despite this somewhat limited scope, a recent local revenue bond ratings report noted that the Catchment Area’s economy had been “resilient through the [recent] ec onomic downturn,” in part due to the stabilizing influence of these sectors. The Catchment Area is part of the largest military base footprint in the United States. Naval Support Activity Panama C ity and Tyndall Air Force Base (employing nearly 10,000 people), along with nearby Eglin Air Force Ba se, are a catalyst for the development of a strong cluster of research acti vity, defense contractors and av iation and aerospace related companies and suppliers. A new JetBlue ECP-JFK service, for exam ple, would prove attractive to a defense contractor such as Raytheon which ha s a significant business presence in both the Catchment Area and the Northeast (where the comp any is headquartered). Additionally, large locally-headquartered employers such as Eastern Shipbuilding Gr oup, a vessel construction and repair operation, have signi ficant business contacts with the New York City area and th e Northeast.5 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113

2.2.2 Tourism Growth in tourism-related revenues can be used as a broad proxy fo r the relative at tractiveness of the Catchment Area to potential inbound passengers who would utilize new air service. While inbound passengers may also be traveling to the ar ea for business, tourist tr affic has historically made up a significant portion of the Catchment Area’s inbound air passenger volume. As shown below, the value of tourist development tax receipts in Bay County (the coun ty that the Airport is located in) has grown much more rapidly from 2004-2013 than in any of the other top Florida counties that are the most popular destinations for i nbound tourists.

Source: Florida Department of Revenue. Value of 1% of Tourist Development Tax.
The Catchment Area’s renowned beaches currently attract over 14 million tourists a year and generate approximately $3 billion in visitor spending that is vital to the local economy (St Andrews State Park in Bay County and St. Joseph Peninsul a State Park in Gulf County have each been ranked as the “Best Beach in the United Stat es” in recent years in beach expert Stephen Leatherman’s annual rankings). In the Panama City area alone, approximately 22,000 jobs are dependent on tourism.6 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113
Despite rapid overall tourism growth in recent years, the Catchment Area’s tourist base is still predominately drive-oriented and Southern in origin. According to recent statistics from the Panama City Beach Convention and Visitors Bureau , approximately 12 percent of visitors to the area arrive by air. Visitors to the Catchment Area arriving by air typically spend more than tourists arriving by car and spend more ni ghts at their destination. A new JetBlue ECP-JFK service has the potential to provide significant local economic benefits by attracting relatively more affluent tourists from New York City and the Northeast to the Catchment Area and Florida Panhandle Region as a whole. Ac cording to March 2014 data from the Bureau of Economic Analysis of the U.S. Department of Co mmerce, residents of the Mideast (e.g., New York City) and New England (e.g. Boston) regions ha ve the highest per capita disposable personal incomes of any region of the United States.

2.3 Historical Ai r Service Trends

2.3.1 Airline Base and Destinations Served Since its May 2010 opening, Northwest Florida Be aches International Airp ort has been primarily served by two scheduled air carriers, Delta and Sout hwest, and their affiliat es (not counting Part 135 operators such as Southern Airways Express) . Delta service from Atlanta and Memphis was transferred from Panama – City Bay County International Airport in May 2010 and was joined by new Southwest service to four destinations – Baltimore/Washington, Houston, Nashville and Orlando. Subsequent changes to service after May 2010 were as follows:

 Delta discontinued Memphis servi ce in January 2012 as part of the pull down of the carrier’s hub there. Southern Airways Express currently operates limited service to Memphis.

 In June 2012, Southwest added summer seasonal service to St. Louis – the months of which were expanded in subsequent years due to the popularity of the servi ce (e.g., in 2014 service runs from March through August).

 In January 2013, Southwest discon tinued service to Orlando. Th is was consistent with the carrier’s decision to pull down service in multiple intra-Florida (e.g., TPA-JAX) and other short-haul markets (e.g., MDW-IND) throughout the United States due to high fuel costs.

 In March 2014, Southwest announced that Dalla s-Love Field – Panama City service would begin sometime in 2015, with the exact date still to be determined.7 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113
The results of these changes are re flected in the map below showing the current network of services from the Airport and potential future destinations.

2.3.2 Traffic and Fares The chart below shows enplanements at the Airp ort on a rolling four qu arter basis since the Airport’s opening. Enplanements peaked at 456,000 in in Q3 2012 and have steadily declined since then (in the most recent period ending Q1 20 14, enplanements were 390,000) primarily due to frequency adjustments by Southwest on multiple routes and the cancelation of the Orlando service. From Q3 2012 to Q1 2014, enplanements declined by 15 percent.
ECP Enplanements - Rolling Four Quarters

Note: Figures are presented as a rolling four quarters total. Source: US DOT T100 Database, July 2014. 350,000 370,000 390,000 410,000 430,000 450,000 470,000

2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1Enplaned Passengers8 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113
Over a similar period (using US DOT O&D Passenger Survey data), on a rolling four quarter basis, one-way average O&D fares (before taxes and other fees) at the Airport have steadily increased from a low of $178 in Q2 2011 to a high of $199 in Q1 2014, an increase of 12 percent. In comparison, a similarly situated airport (summer seasonal peak, beach destination, similar visitor demographic) Myrtle Beach Interna tional Airport, with service by mu ltiple low-cost carriers (e.g., Spirit, Allegiant), experienced a slight decrease in one-way average O&D fares over the same period ($123 in Q2 2011 vs. $122 in Q1 2014).
2.4 Current Deficiencies and Proposed New Service

2.4.1 Air Service Development Efforts and Current Needs/Deficiencies The Panama City – Bay County Airpor t and Industrial District has be en engaged over the past three years in the assessing gaps in the portfolio of air services offered at Northwest Florida Beaches International Airport and actively m eeting with airlines in an effort to address these gaps. The District has had numerous meetings with route planners for both legacy and low-cost carriers both at air service development events (the District recently attended the ACI-NA JumpStart conference in June 2014 and will be attending the 20 th World Route Development Forum in September 2014) and through direct dialogue. The Di strict has also hosted airline rout e planners for on-site visits in an effort to improve their knowledge base about the Catchment Area. As part of the air service development process, the following key needs/deficiencies have been identified:

 Top O&D markets, by number of passengers, in the Northeast (New York City) and Midwest (Chicago) are currently unserved on a nonstop basis.

 Narrow base of airlines at Airport, lacking a true low-cost carrier to discipline rising fare levels at Airport.

 Need to attract new legacy carrier serv ice to major hub to compete with Delta.

 Replace lost intra-Florida service to Orlando and recruit service to new intra-Florida destinations such as Tampa (last served at old airport).

 Restore frequency by Southwest in existing mark ets and recruit new service to markets with similar characteristics as St. Louis (e.g., Memphis).

2.4.2 Proposed New JetBlue Service The District has been in discus sions with JetBlue since early 2012 about a nonstop daily, yearround service between Northwest Fl orida Beaches International Airport and the carrier’s hub at John F. Kennedy International Air port in New York City. The Je tBlue route planning team has9 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113

conducted a site visit to the Catchment Area and thei r forecast analysis has progressed to the point where, as shown by the attached le tter of support from JetBlue, th ey strongly support the District’s SCASDP application. The Airport has informed JetBlue that the Airp ort has the appropriate facilities (e.g., terminal, runway, etc.) to immediately and safely accommodate JetBlue’s ECP-JFK service whenever the carrie r chooses to start service as well as any additional services that JetBlue may announce. The first need/deficiency noted in Section 2.4.1 th at the JetBlue ECP-JFK se rvice would address is that it would add nonst op service in the top unserved O&D ma rket from the Catchment Area. As shown in the table below, New York City is the fifth-largest O&D market from the Catchment Area and the largest without nonstop se rvice. In 2013, approximately 66 passengers per day each way (“PDEW”) traveled between the Catchment Area and New York City. With a new nonstop routing and the low-fare, high-quality service JetBlue provi des, one could expect si gnificant stimulation of this local market once JetBlue begins service, dr iving the PDEW number higher. Additionally, the unique nature of this serv ice is likely to entice passengers to drive from/to Pensacola, Tallahassee and other points in the Airport’s broader secondar y catchment area, further increasing local market passenger numbers (PNS and TLH combined genera ted 142 PDEW to New York City in 2013). A route forecast would further take into account potential passengers connecting between the Catchment Area and the eight points behind JFK cu rrently served by JetBlue (combined 62 PDEW in 2013). The largest of these is Boston, whic h generated approximatel y 29 PDEW in 2013 (it may be useful for JetBlue to market the ECP-JFK route as a same plane 1-stop se rvice to Boston with a single flight number). Our analysis sugges ts that there will clearly be enough passenger demand to support the new daily service that JetBlue envisions.
Top 5 Catchment Area (ECP and VPS Combined) O&D Markets
(Passengers are Per Day, Each Way, Full Year 2013)

RANK MARKET TOTAL O&D PASSENGERS ECP SERVICE VPS SERVICE NON-STOP SERVICE 1 Washington D.C. 1/ 198 Southwest (BWI) US Airways (DCA) YES 2 Nashville 132 Southwest NONE YES 3 Dallas 2/ 132 Southwest (DAL in 2015) American (DFW) YES 4 Houston 3/ 89 Southwest (HOU) United (IAH) YES 5 New York 4/ 66 NONE NONE NO

Notes: 1/ Includes Baltimore/Washington International Airport (BWI), Wa shington Dulles International Ai rport (IAD), and Washington Rea gan National Airport (DCA). 2/ Includes Dallas-Ft. Worth Airport (DFW) and Dallas Love Field (DAL). 3/ Includes Houston Intercontinenta l (IAH) and Houston Hobby (HOU). 4/ Includes John F. Kennedy (JFK), LaGu ardia (LGA), Newark, NJ (EWR), Long Is land MacArthur (ISP), and Stewart (SWF). Source: US DOT Origin & Destination Survey of Airline Passenger Traffic, Domestic, July 2014.10 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113

A JetBlue ECP-JFK service would also broaden the carrier base at the Airport and provide downward fare pressure in key markets to the No rtheast, significantly stimulating air travel volumes between the Northeast and the Florida Panha ndle. Delta’s service at the Airport can be classified as a legacy carrier service to a major hub (Atlanta), and Southwest’s business model has evolved to have hybrid characteri stics of both a legacy and low-cost carrier. However, the public benefits from having true low-cost carrier service at an airport, have been well documented. In a 2013 MIT study entitled “Evolving Trends of U.S. Do mestic Airfares: The Impacts of Competition, Consolidation and Low-Cost Carriers,” the authors found that: JetBlue is now the airline whose presence is associated with the largest decrease in average fares. As such, we would not be su rprised to see airports , particularly small community airports or secondary airports in large multi-air port regions, work particularly hard to attract JetBlue service. Gaining service from an airline like JetBlue not only attracts customers through a decrea se in average fare, but also through an increase in connectivity and the number of destinations that can be reached through both non-stop and connecting service. Finally, the timing is right for a JetBlue ECP-JFK service to be successful. Awareness of the Florida Panhandle Region in New York City has increased significantly in recent years, in part due to advertising performed subseq uent to the 2010 BP oil spill, and through various marketing initiatives by organizations such as the Bay County Tourist Development Council. As shown in Appendix B, there have also been numerous recent articles in the New York Post and New York Times extolling the virtues of a leisure trip to the Catchment Area. With the proper initial marketing support, as envisioned in Section 3 of this application, a new air service linking the fastest growing tourist region in Florida (Flori da Panhandle) with the top metropolitan area for inbound visitors to Florida (New York City) should prove to be profitable and self-sufficient in the long-term.


## 3. Strategic Plan for Air Service
3.1 Strategic Goal s and Objectives The community’s overall strategi c objective is to establish a sustainable, nonstop air linkage between the Florida Panhandle Region and New York City and the Northeast portion of the United States. Recruiting nonstop daily, year-round ECP-JFK service by JetB lue will help to accomplish this objective. Specific project goals include the following:11 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113

 Implement a comprehensive advertising and pr omotion plan for the new JetBlue ECP-JFK service and any additional services the airline may initiate from ECP.

 Increase public awareness of the Catchmen t Area/Florida Panhandle Region for potential inbound visitors as well as awar eness of ECP as the only Air port in the Region with nonstop service to New York City/N ortheast among local reside nts, through marketing and promotional campaigns in support of the JetBlue services.

 Rebate of rents and fees at Airport for tw o years for JetBlue to reduce start-up costs associated with the new ECP-JFK service.
3.2 Public-Private Partnership

The District has assemble d a strong public-private partnership t eam that has pledged to contribute significant amounts of non-airport prov ided local funding in support of the JetBlue ECP-JFK service. These team members include:

 Panama City Beach Convention and Visitors Bureau/Bay County Tourist Development Council – The Bay County Tourist Developmen t Council (TDC) contracts marketing and promotional activities with the Panama City Beach Convention & Visitors Bureau. A fifth cent bed tax collection was established by th e TDC in 2009 for the purpose of supporting low-cost air carriers providing service to Bay County. The TDC has cooperated extensively with Southwest Airlines on successful inbound destination marketing campaigns supporting Southwest’s service at the Airport. The TD C will contribute $250,000 in cash and play a lead role in cooperating with JetBlue and the Airport to ensu re development of a similarly successful inbound destination marketing campaign in New York City and other key markets in the Northeast.

 The St. Joe Company – The St. Joe Company is a Florida-based real estate developer and manager. The Company owns land concentrat ed primarily in Northwest Florida, and has significant residential and land-us e entitlements in hand or in process. The Company also owns various commercial, resort and club pr operties. The Company will support the inbound destination marketing campaign as the Company is interested in generating more traffic and investment from New York and the Northeast. The St. Joe Company will contribute $100,000 in cash.

 Panama City Beach Chamber of Commerce a nd Bay County Chamber of Commerce – Each of these organizations represents the busine ss base of Bay County, and work to promote industrial, economic and tourism growth in the area. They also have clos e ties with the local military installations. Due to these close ties with the area’s business community, both12 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113
Chambers will play a lead role in developing with JetBlue and the Airport a local marketing campaign to generate outbound travel on the ne w JetBlue flight from the Catchment Area and Florida Panhandle Region. Each organizat ion will contribute $50,000 of in-kind support towards this effort.
3.3 Strategic Use of Fu nds, Implementation Time line and Monitoring The majority of funding for this project will be spent on developing and implementing marketing and promotional campaigns for the new JetBlue EC P-JFK service. Additional funding (in-kind) will include a rebate of terminal rents and landing fees by the Ai rport for the new service for two years. Given that the typical point of origin split on ECP services favors inbound travelers, particular emphasis will initially be placed on developi ng an effective inbound destination marketing campaign for the new service in the New York City and broader Northeast (e.g., Boston) region. A significant amount of money has been allocated fo r this campaign given that the Northeast media markets are quite expensive to penetrate effectivel y and will require a robust investment of funds. Specific steps that will be ta ken will include the following:

 The key entities leading the effort, including th e Panama City Beach Convention and Visitors Bureau/Bay County Tourist Development Council, The St. Joe Company and the Airport, will have a kickoff meeting with JetBlue immediately after plans for the new service are finalized to coordinate joint marketing effort s with JetBlue’s own marketing plan and media strategy for the new service.

 In conjunction with JetBlue, a theme for th e marketing campaign will be chosen along with the channels the campaign will be conducte d through, how target audiences will be segmented, the role each entity will play in th e co-branding effort and how their efforts will be focused. For example, for a campaign supporting Southwest’s new seasonal nonstop service to St. Louis, the Panama City Beach Convention and Visitors Bureau/Bay County Tourist Development Council, in conjunction with Southwest, developed a campaign that utilized a cardinal – a bird synonymous with the St. Louis Ca rdinals professional baseball team – which created a natural connection and affinity with the St. Louis market. A media plan was developed that utilized print, outdoor, digital and radi o. A key component was an email blast (shown on the next page), which was sent to more than 245,000 St. Louis Post Dispatch subscribers and featured Panama City Beach in the top portion – promoting the new flight – and eight destination partners in th e body of the email, promoting their individual offerings.13 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113

 After the individual elements of the marketing campaign are implemented by each entity, metrics will be developed and monitored to track penetration of the advertising and conversion of the target audience to customers travelling on JetBlue’s ECP-JFK flight. Every two months over the two-ye ar period of marketing suppor t for the project, meetings will be held between the participating entities and the airport to track performance, make necessary adjustments an d re-allocate budget.14 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113
A similar process will be followed for developi ng the local Catchment Ar ea/Florida Panhandle Region-directed marketing efforts by the two Cham bers of Commerce, the Airport and JetBlue. However, somewhat less funding will initially be dedicated to wards these efforts (although the funding allocation between marketi ng targeted at inbound and outb ound traveler segments can be adjusted as monitoring of the flight ’s point of sale split dictates). It is envisioned that targeted speaking engagements by Chamber/Airport/JetBlue executives, an inaugural event timed to coordinate with arrival/departure of the first f light to maximize local media coverage, and ticket giveaways could be key parts of the local marketing efforts. Particular emphasis will be placed, events will be targeted, and theming will be deve loped around the fact that the unique benefits of the new service (only nonstop ai r link between the Florida Panhandle Region and New York City/Northeast) are not limited to the Catchment Ar ea but can be appreciate d by the entire Florida Panhandle region. The District offers an air service incentive progra m to help support new air services at Northwest Florida Beaches International Airport. Program in centives include a rebate of terminal rents and landing fees for a two-year period. This program will be offered to JetBlue for the new ECP-JFK service.
3.4 Funding Plan and Grant Request The Panama City-Bay County Airport and Industr ial District requests a grant of $400,000 to support the implementation of the project described in this proposal. This funding will be matched by $350,000 in local cash contributions, all from non-airport sources. Th e Panama City Beach Convention and Visitors Bureau/Bay County T ourist Development Counc il will contribute $250,000 cash and The St. Joe Company will contri bute $100,000 cash. In addition to the cash contributions, the local community will contribute $100,000 of in-k ind contributions ($50,000 each from both the Panama City Beach Chamber of Commerce and the Bay County Chamber of Commerce). The District will also provide $962, 700 in cost offsets to JetBlue over a two-year period. Full project cost and funding sources ar e shown on the next page along with details on the cost offsets provided to JetBlue by the District.15 Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113

Project Cost and Funding Sources

LINE DESCRIPTION SUBTOTAL TOTAL AMOUNT 1 Federal amount requested $400,000 2 State cash financial contribution - Local cash financial contribution

3a: Airport cash funds - 3b: Non-airport cash funds $350,000 3 Total local cash funds ( 3a+3b ) $350,000 4 TOTAL CASH FUNDING ( 1+2+3 ) $750,000 In-Kind contribution

5a: Airport In-Kind contribution $962,700 5b: Other In Kind contribution $100,000 5 TOTAL IN-KIND CCONTRIBUTION ( 5a+5b ) $1,062,700 6 TOTAL PROJECT COST ( 4+5 ) $1,812,700
Source: Panama City – Bay County Airport and Industrial District.
Airport In-Kind Contributions - Airport Cost Rebates

AIRPORT COST YEAR 1 YEAR 2 TOTAL Terminal Rent $216,125 $216,125 $432,250 Landing Fee $265,225 $265,225 $530,450 Total Rebated Charges/Fees $962,700
Source: Panama City – Bay County Airport and Industrial District.
3.5 Legal Sponsor The Panama City – Bay County Airport and Industria l District will serve as the legal sponsor for this project and will be responsible for execu ting and administering the SCASDP grant. The District is a public authority responsible for the ownership and operation of the Northwest Florida Beaches International Airport. The contact information for the signatory party for the legal sponsor is as follows: Panama CityBay County Airport and Industrial District, Parker W. McClellan, Jr., A.A.E, Executive Director, 6300 West Bay Parkway, Suite A, Panama City, FL 32409.Application for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113



## Appendix A Additional Support LettersJuly 29, 2014

Ms. Brooke Chapman, Associate Director Small Community Air Service Development Office of Aviation of Analysis U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590 Dear Ms. Chapman:
On behalf of the Panama City Beach Convention & Visitors Bureau (CVB) and t he entire Northwest Florida tourism industry, I am pleased to support the initiative to bring daily, year

- round service from John F. Kennedy International Airport (JFK) to Northwest Florida Beaches International Airport (ECP) on JetBlue Airlines

. A ttracting ne w, affordable air service will not only benefit Panama City Beach, but the entire region’s future economic prosperity.
We believe the Department of Transportation's Small Community Air Service Development Program Grant is a critical component to expand air service into our region. As you may be aware, the CVB played a critical role in helping to land Southwest Airlines at ECP when the airport opened on May 22, 2010. We look forward to partner ing with the Department of Transportation, and our regional stakeholders, in making this opportunity a reality. To this end, we pledge $250,000 in marketing support to this expanded service.
I request that the highest consi deration be given to the ECP ' s application for this grant in an effort to improve our local air service. It is crucial that all communities have access to a national air transportation system with competitive options that fosters economic growth and enhances the ability of our citizens to efficiently travel around the country. Thank you for your consideration. Sincerely yours,

Dan Rowe President/ CEOApplication for a Small Community Air Service Development Program Grant, Docket DOT-OST-2014-0113



## Appendix B New York City Media Articles Regarding Northwest Florida Beache s International Airport Catchment Area TourismFebruary 28, 2013

By INGRID K. WILLIAMS As Jimmy Buffett once as tutely observed, changes in latitudes necessitat e changes in attitudes. Keep that in mind when visiti ng Panama City Beach on the Fl orida Panhandle, where the clear waters of the Gulf of Mexico lap a seemingly infinite ribb on of white-sand beaches. In this self-styled “Spring Break Capital of the Worl d” — a moniker validate d by the hundreds of thousands of students who descen d on the town every March and Ap ril — you’ll find a predictably high density of tattoo parlors and mini-golf courses. But hidden amid this lowbrow mix are welcome additions incl uding a farmers’ market and the area’s first craft beer pub. And in 2010, the new Northwest Florida Beaches International Airport opened just no rth of the city, making the trip south even easier. So trade in expectations of starched tablec loths and fine-art museums, and embrace the carefree notions that swirl with silly pineapple daiquiris and every facet of the relaxing life aquatic here on Florid a’s laid-back Emerald Coast.
FRIDAY 3 p.m. 1. Hooked From the Pier One lovely location from which to make your initial assessment of the stunning shore is the Russell-Fields Pier ( pcbgov.com/visitors_citypier.htm ), jutting 1,500 feet into the emerald blue waters of the Gulf of Me xico. Take a stroll to the end of the pier to marvel at the miles of sugary white sand stretching in either direction as far as the eye can s ee. Or rent a rod at the pier’s bait-and-tackle shop, Half Hitch Tackle ( halfhitch.com ), and cast a line to see what’s biting. After you’ve caught your fill of pompan o, whiting and Spanish mackerel, retire to H ook’d Pier Bar & Grill (16201 Front Beach Road; hookedpierbar.com ) at the base of the pier for a cold beer and a snack of honey-and-lime fried plantains ($5.95). On this ca sual spot’s sunny wooden deck, with views of the sloping sand and rolling waves, you’re sure to find a sympathe tic ear for unspooling your tales about the big one that got away. 6 p.m. 2. Bayou Bites Panama City Beach’s long main drag, Front Beac h Road, is lined with a disproportionate number of stores peddling airbrushed T-shirts, cheap bi kinis and gaudy souvenirs. But nestled among this neon riot of déclassé consumeri sm is the occasional refreshing exception, like Dee’s Hangout (10440 Front Beach; deeshangout.com ), a homey restaurant speciali zing in Cajun cuisine. The 36 Hours in Panama City Beach, Fla. - NYTimes.com http://www.nytim es.com/2013/03/03/tr avel/36-hours-in-p anama-city-bea...

1 of 5 7/28/2014 12:49 PMno-frills atmosphere won’t transpor t you to the bayou, but the dail y specials scrawled on the rear chalkboard might. Recently, a Ca jun platter special incl uded a sampling of fried catfish, chicken gumbo, shrimp étouffée, coleslaw and hushpupp ies ($12.95). The regular menu lists winning dishes like Cajun-spiced jambalay a with shrimp and sausage ($12.99) . Try a bottle of pale ale from the Grayton Beer Company, a Panh andle microbrewery th at opened in 2011 le ss than 30 miles west of Panama City Beach. 9 p.m. 3. Tiptop Taps During spring break, Panama City Beach plays host to thumping mega-clubs with capacities greater than small towns, wet T-sh irt contests, foam parties and en ough fluorescent glow sticks to signal warnings to the Coast Gu ard. These concentrated revelry zo nes are not hard to find, but those who prefer civilized drinki ng to debauched dancing should visit the new Fishale Taphouse and Grill (7715 Front Beach; fishales.com ), a craft beer bar that opened last year. Many rare Dixie brews cycle through the bar’s 60-s ome taps, so you’re bound to fi nd something intriguing. Sample the Pensacola Sawgrass ($4.75), a refreshing pale wheat ale from just down the Florida Panhandle, or try the Southern Pecan Nut Brown Ale ($ 5.50) from the Mississippi craft brewery Lazy Magnolia. Then retire with yo ur pint to an armchair in front of the cozy fireplace.
SATURDAY
8 a.m. 4. Trails and Trees Start the day with a brisk walk, jog or bike ri de through Conservation Park (100 Conservation Drive; pcbgov.com/conservation-park.htm ), a nature preserve that opened in October 2011 only two miles from the beach. With 24 miles of trails winding through 2,900 acres of parkland, there’s a path to suit every fitness level. Regardless of whether you embark on a re laxing half-mile loop or a scenic 11-mile trek, you’re bound to cross w ooden boardwalks traversi ng the park’s wetland sections, where woodpeckers tap at tall trees and alligators lurk between cypress knees. Sprinkled along the trails and tracts of pa lmettos and slash pines are unobtr usive signs identifying the local flora and fauna; pause to read th e informative descriptions and sa vor the peaceful sound of leaves rustling in the breeze.
10:30 a.m. 5. Sunken Treasures To honor the town’s considerable naval presence an d history, dive into the Man in the Sea Museum (17314 Panama City Beach Parkway; maninthesea.org ; $5). The warehous elike museum was created by the Institute of Diving, a nonprofit or ganization established by divers from the United States Navy’s Sealab program. It ’s an impressive repository of historical maritime items ranging 36 Hours in Panama City Beach, Fla. - NYTimes.com http://www.nytim es.com/2013/03/03/tr avel/36-hours-in-p anama-city-bea...

2 of 5 7/28/2014 12:49 PMfrom antiquated diving masks to an entire unde rwater living facility: the United States Navy Sealab-1, which now call s the parking lot home . Inside the museum, there are exhibitions illustrating primitive diving techniques, an old submarine and manneq uins displaying the commercial diving gear of yore.
Noon 6. Muffulettas and More The Big Easy is 300 miles away, but inside the pink house of David’s Ne w Orleans Style Sno-Balls (13913-A Panama City Beach Parkway; davidssnoballs.com ), you’ll find Crescent City specialties like meat-layered muffulettas and “Café du Monde beignets” buried under a snowdrift of powdered sugar. If your stomach is growli ng, dig into a messy roast beef po ’boy (six inches, $6.25). But in warm weather, most patrons arrive in pursuit of a stuffed “sno-ball,” a cupful of flav ored shaved ice atop a twirl of soft serve ice cr eam. Can’t decide among the 40-p lus flavors? Go with strawberry daiquiri (10 oz., $3.75). Or to completely overload on sugar, order the Key lime “sno-ball” pie with crumbled graham crackers ($3.95). 2 p.m. 7. Beach Bliss
Walk off lunch on the nature trails at St. Andrews State Park (4 607 State Park Lane; floridastateparks.org/standrews ) on the easternmost edge of town . The park has a mile and a half of beaches that stretch along th e gulf and the Grand Lagoon, as well as wooded paths where you might spy white-tailed deer grazin g or herons taking flight. But if the thought of encountering an alligator is too frightening, skip strolling near Gator Lake and go st raight to the beach. In contrast to the busier beaches to the west that are backed by high-rise con dos, the park’s sandy shores are hugged by undulating grassy dune s. The waters offshore here ar e popular with surfers and SUPers (stand-up paddle boarders, that is ), while snorkelers dw ell among the local ma rine life along the rock jetty. Whatever your sport — swimming, surfin g, sunbathing — this is the secluded spot to do it. 6 p.m. 8. Sunset Serenade When the sun sags low in the sky, it’s time for a sundowner on the beach. To feel like you’re in a Kenny Chesney song — “the sun an d the sand and a drink in my ha nd” — head to Schooners (5121 Gulf Drive; schooners.com ), a bar and restaurant near the park that has direct a ccess to the beach from its deck. But the views are equally spectacula r from the pier bar of Pineapple Willy’s (9875 South Thomas Drive; pwillys.com ), a restaurant and bar offering up live music and irresistibly sweet frozen drinks. Embrace th e spot’s goofiness with the ep onymous cocktail (rum, pineapple juice and cream of coconut) as the glowing orange orb dips into the gulf. 36 Hours in Panama City Beach, Fla. - NYTimes.com http://www.nytim es.com/2013/03/03/tr avel/36-hours-in-p anama-city-bea...

3 of 5 7/28/2014 12:49 PM9 p.m. 9. Gulf Grub Locals are quick to engage in spirited debate about where to find the best oysters in town. Many claim allegiance to Hunt’s Oyster Bar ( huntsoysterbar.com ) across the bridge in Panama City proper. But by the beach, Dusty’s Oyster Bar (164 50 Front Beach; 850-233-0035) is the favorite, as evidenced by its jammed parking lot. There’s nothing fancy about this roadside seafood shack — draft beers are served in plastic cups, nearly every inch of the walls and ceiling is stapled with dollar bills — but, like any great dive, that’s part of the appeal. And then there are the fresh bivalves. Start with a do zen of the three-cheese baked oyster s ($8.99), and follow with Dusty’s Seafood Adventure ($22.99), a moun tain of fried shrimp, scallops , clams, crab claws, oysters, grouper, fries and a stuffed crab. When you’ve sucked the meat off the last crab claw, order another round of beers and see if your appetite doesn’t lead you back to another half-dozen oysters.
SUNDAY
11 a.m. 10. Expanding Markets The line forms early for the fres hly made doughnuts at Thomas Do nut & Snack Shop (19208 Front Beach; thomasdonutandsnackshop.com ), and for good reason: the re d velvet cake doughnuts are delectable ($1.05). But resist the temptation to order in tr iplicate because you might find something even tastier, like homemade toffee or fluffy biscuits, across town at the Grand Lagoon Waterfront Farmers’ Market (Pirate’ s Cove Marina, 3901 Thomas Drive; waterfrontmarkets.org ). At this year-round market, opened last April at Pirate’s Cove Marina, expect live music and rotating stalls from l ocal vendors selling everything from fresh produce and fruit preserves to artwork made from seashells. 1:30 p.m. 11. Island Life After the market, hop on the Shell Island Shuttle (4607 State Park Lane; shellislandshuttle.com ; $16.95), a ferry departing from St. Andrews State Park for Shel l Island, an uninhabited sevenmile-long barrier island separating the gulf from St. Andrews Bay. On the sh ort ride, scan the clear waters for the high concentration of bottlenose dolphins that swim in the area. Then spend the afternoon exploring the island’s em pty beaches, searching for the pe rfect shell, snorkeling in the turquoise waters and lounging in the silky whit e sand on this peaceful patch of panhandle paradise. 36 Hours in Panama City Beach, Fla. - NYTimes.com http://www.nytim es.com/2013/03/03/tr avel/36-hours-in-p anama-city-bea...

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