Florida Scales Back Sugar Land Deal for Everglades

The land acquisition is intended to deliver cleaner water to the Everglades during dry times, allow greater water storage during wet years, and prevent tons of the agricultural nutrient phosphorus from entering the Everglades, where it disrupts the ecosystem.

Governor Crist says his new approach incorporates today's fiscal realities by saving $800 million at closing, providing ready access to strategically located acreage for restoration projects and preserving thousands of jobs.

"By taking this fiscally conservative approach, we can secure this once-in-a-lifetime opportunity to restore and revive the Everglades despite continued economic challenges," said the governor. "The proposal represents a balance for both the environment and the economy by allowing us to acquire hundreds of square miles of prime property in affordable steps."

"The Governor's bold vision for our property remains the same as announced in June. We're just being realistic in light of the economy. The acquisition will be made in two steps rather than one," said Robert Coker, U.S. Sugar Corporation's senior vice president for public affairs. "Even so, this historic acquisition still provides great benefits for the environment and a fair value for our company."

An aerial view of U.S. Sugar lands south of Lake Okeechobee (Photo courtesy U.S. Sugar Corp.)

The proposal announced Wednesday is scaled way back from that initial level.

Under the new proposal, the district would initially invest $530 million for 72,500 acres of property south of Lake Okeechobee.

About 32,000 acres of that land, now in citrus production, would be available to the district within a year after closing. U.S. Sugar would lease back the other 40,500 acres of sugar cane land for $150 per acre per year for at least seven years.

The district would have an option to purchase the remaining 107,500 acres of U.S. Sugar property for restoration within the first 10 years after closing.

"With property values and tax revenues falling, this became a matter of what the district realistically could afford," Coker said. "Obviously, neither party gets everything they wanted at closing, but over the next 10 years the state can still acquire a large portion of historic Everglades and U.S. Sugar property can still provide the legacy footprint for significant restoration," he said.

Since December 2008, Florida's revenue projections have dropped, with economic forecasts indicating continued financial uncertainty over the coming months.

"Because of the state's strong commitment to this monumental vision for restoration, we are optimistic that this acquisition can be achieved under terms that are better matched to South Florida's current fiscal climate," said Michael Sole, who heads the Florida Department of Environmental Protection.

"With the governor's support, the parties have explored alternatives that allow for the acquisition of strategic and desirable lands but under a schedule that reduces the taxpayers' investment today; makes revenue available sooner for the realization of restoration projects and preserves jobs," he said.

The details of the revised acquisition terms are still under discussion. The final proposed terms will be reviewed and considered by the South Florida Water Management District Governing Board at its public meetings. The final terms also are subject to approval by the U.S. Sugar Corporation Board of Directors.

The vision behind the U.S. Sugar deal is to re-establish a natural flow-way from Lake Okeechobee through the River of Grass to Florida Bay. Such a flow-way would saving the the St. Lucie and Caloosahatchee estuaries from destructive discharges, eliminate hundreds of tons of phosphorous fertilizer pollution and recharge groundwater systems.

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