Water board approves Everglades restoration
WEST PALM BEACH (AP) – Regional water officials on Tuesday further committed the state of Florida to a $1.34 billion buyout of U.S. Sugar Corp. for an ambitious plan to restore the Everglades.
The South Florida Water Management District agonized over the proposal, negotiated last summer by Republican Gov. Charlie Crist’s administration and set in its lap with a Tuesday expiration date. U.S. Sugar officials had indicated that if the board made any changes to their proposal, the state would lose its long-sought ability to clean up the land.
In the end, the water district approved a deal to buy nearly 300 square miles, more than the state needs and at a price much higher than it can afford.
“This is not a perfect deal, but rarely do you ever find a perfect deal,” said Eric Buermann, chairman of the water board.
It is not automatically binding because an extra financial escape clause for the state was added, but U.S. Sugar signaled Tuesday it saw the amendment as a minor adjustment.
The deal is subject to financing, and the water board has until September to line up bond funding. Even its most ardent supporters acknowledged that would be difficult, given the current economic and credit crisis.
The bond process is already being challenged by U.S. Sugar competitors as a sweetheart deal amounting to corporate welfare. The contract requires the state to lease much of the land immediately back to the company for seven years at $50 an acre – well below market price.