Everglades deal shrinks by $800 million

Florida is cutting $800 million from the deal to acquire land for Everglades restoration from the United States Sugar Corp.

Under the new proposal, announced by Gov. Charlie Crist last week, the South Florida Water Management District would initially invest about $530 million for 72,500 acres of property south of Lake Okeechobee. Approximately 32,000 acres of that land, currently in citrus production, would be available to the district within a year after closing. U.S. Sugar would lease back the other approximately 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 within the first 10 years after closing.

"By taking this fiscally conservative approach, we can secure this once-in-alifetime opportunity to restore and revive the Everglades despite continued economic challenges," said Gov. Crist. "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 new deal is subject to financing and approval by both the SFWMD governing board and U.S. Sugar's board of directors.

Highlights of the proposed acquisition terms include:

• Reducing the immediate public investment by 60 percent, or $800 million, in

addition to reducing annual debt service payments by an estimated $65 million.

• Tripling the land lease rate to $150 an acre per year to generate a minimum of $40 million in revenue and avoid at least $11 million in land management costs.

• Potentially freeing up revenue over the coming years for "shovel-ready" restoration projects that could create jobs and deliver environmental benefits to the Everglades Protection Area and Florida's coastal estuaries.

• Sustaining regional agriculture.

• Keeping 1,700 direct jobs intact and protecting 10,000 indirect jobs for at least another decade with the continued operation of the U.S. Sugar's mill and refinery.

Environmental groups hailed the new deal.

"Restoring Florida's Everglades depends on acquiring the land needed to clean and protect water flowing through the ecosystem," said Manley Fuller, president of the Florida Wildlife Federation. "The purchase of this land is a milestone for all who cherish the Everglades and its unique habitat for endangered species."

Gov. Crist announced in June that SFWMD would begin negotiations with U.S. Sugar to acquire vast tracts of land south of Lake Okeechobee for Everglades restoration. The district's governing board voted to accept a proposal to acquire more than 180,000 acres of agricultural land for $1.34 billion.

But the economic downturn required changes to the deal.

"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 Florida Department of Environmental Protection Secretary Michael Sole. "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."

The details of the revised acquisition terms are still under discussion. The final proposed terms will be reviewed and considered by SFWMD at public meetings.

For more information about the acquisition, visit www.sfwmd.gov/riverofgrass.