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                               T H E   C A B I N E T 
                                          
                          S T A T E   O F   F L O R I D A
                                                                  
                                          
                                   Representing:
                                          
                           GOVERNOR'S APPOINTMENTS TO THE
                       NONMANDATORY LAND RECLAMATION COMMITTEE
                           STATE BOARD OF ADMINISTRATION
                              DIVISION OF BOND FINANCE
                              STATE BOARD OF EDUCATION
                              BOARD OF TRUSTEES OF THE
                           INTERNAL IMPROVEMENT TRUST FUND
                                          
                                                                  
                
               
                        The above agencies came to be heard before 
               THE FLORIDA CABINET, Honorable Governor Bush 
               presiding, in the Cabinet Meeting Room, LL-03, 
               The Capitol, Tallahassee, Florida, on Tuesday, 
               October 24, 2000, commencing at approximately 
               9:19 a.m. 
               
               
               
               
                                    Reported by:
                                          
                                 LAURIE L. GILBERT
                          Registered Professional Reporter
                              Certified Court Reporter
                            Certified Realtime Reporter
                             Registered Merit Reporter
                              Notary Public in and for
                           the State of Florida at Large
                                          
                                          
                                          
                                          
                                          
                         ACCURATE STENOTYPE REPORTERS, INC.
                                  100 SALEM COURT
                             TALLAHASSEE, FLORIDA 32301
                                    850/878-2221
               


 

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               APPEARANCES:
               
                        Representing the Florida Cabinet: 
               
                        JEB BUSH
                        Governor
               
                        BOB CRAWFORD
                        Commissioner of Agriculture
               
                        BOB MILLIGAN
                        Comptroller
               
                        KATHERINE HARRIS
                        Secretary of State
               
                        BOB BUTTERWORTH
                        Attorney General
               
                        BILL NELSON
                        Treasurer
               
                        TOM GALLAGHER
                        Commissioner of Education
               
                                      *   *   *
               

   
 

                                                                   3
                                 October 24, 2000
                                    I N D E X
               
               ITEM                  ACTION                PAGE
               
               GOVERNOR'S APPOINTMENTS TO THE
                 NONMANDATORY LAND RECLAMATION COMMITTEE:
               
                              Approved                       5
               
               STATE BOARD OF ADMINISTRATION:
               (Presented by Tom Herndon,
                   Executive Director)
               
                1             Approved                       7
                2             Approved                       8
                3             Approved                       9
                4             Approved                      10
                5             Approved                      11
                6             For Information Only          11
               
               DIVISION OF BOND FINANCE:
               (Presented by J. Timothy "Tim" Tinsley,
                   Manager of Bond Programs)
               
                1             Approved                      12
                2             Approved                      19
               
               STATE BOARD OF EDUCATION:
               (Presented by Wayne V. Pierson,
                   Deputy Commissioner)
               
                1             Approved                      20
                2             Approved                      21
                3             Approved                      22
                4             Approved                      22
               
               


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                                                                   4
                                 October 24, 2000
                                    I N D E X
               
               ITEM                  ACTION                PAGE
               
               BOARD OF TRUSTEES OF THE
                 INTERNAL IMPROVEMENT
                 TRUST FUND:
               (Presented by David B. Struhs,
                   Secretary)
               
                1             Approved                      23
                2             Withdrawn                     23
               Substitute  3  Deferred                      25
                4             Approved                      29
               Substitute  5  Approved                      96
                6             Approved                     102
               Substitute  7  Denied                       103
                8             Denied                       103
                9             Deferred                     103
               Substitute 10  Approved                     106
               Substitute 11  Deferred                     106
               Substitute 12  Withdrawn                    106
               
                        CERTIFICATE OF REPORTER            108 
               
                                      *   *   *
               

    

                        ACCURATE STENOTYPE REPORTERS, INC.
 

                              GOVERNOR'S APPOINTMENTS              5
                                 October 24, 2000
         1                    P R O C E E D I N G S

         2              (The agenda items commenced at 9:29 a.m.) 

         3              GOVERNOR BUSH:  Secretary Struhs.

         4              MR. STRUHS:  Good morning.

         5              Governor, you and the Cabinet this morning 

         6          are being asked to confirm your appointments to 

         7          the Nonmandatory Land Reclamation Committee.

         8              The candidates that you have selected are 

         9          Lisa Backman from Polk County; Angela Miller 

        10          from Hamilton County, and Karen Guffey from 

        11          Polk County.

        12              COMMISSIONER CRAWFORD:  I move the 

        13          appointments.

        14              GOVERNOR BUSH:  Is there a second? 

        15              ATTORNEY GENERAL BUTTERWORTH:  Second.

        16              COMMISSIONER GALLAGHER:  Second.

        17              GOVERNOR BUSH:  All in favor, say aye.

        18              THE CABINET:  Aye.

        19              GOVERNOR BUSH:  All opposed?

        20              Very good.

        21              MR. STRUHS:  Thank you.

        22              GOVERNOR BUSH:  I like the gender balance.

        23              COMMISSIONER CRAWFORD:  Very good -- good 

        24          appointments.

        25              I'm not sure it's balanced.



                        ACCURATE STENOTYPE REPORTERS, INC.
 

                              GOVERNOR'S APPOINTMENTS              6
                                 October 24, 2000
         1              GOVERNOR BUSH:  That is balanced, as far as 

         2          I'm concerned.

         3              COMMISSIONER CRAWFORD:  Okay.  Good.  Now 

         4          we know the percentage.  100 percent. 

         5              (The Governor's Appointments to the 

         6          Nonmandatory Land Reclamation Committee Agenda 

         7          was concluded.)

         8                              *   *   *

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                        ACCURATE STENOTYPE REPORTERS, INC.
 

                           STATE BOARD OF ADMINISTRATION           7
                                 October 24, 2000
         1              (Discussion off the record.)

         2              GOVERNOR BUSH:  The next Cabinet meeting 

         3          will be Tuesday, November 16th.

         4              And then at that time, General Butterworth 

         5          and I will pay off our bets.

         6              ATTORNEY GENERAL BUTTERWORTH:  That's 

         7          right.

         8              COMMISSIONER CRAWFORD:  United Way?

         9              GOVERNOR BUSH:  No.  There's an election 

        10          between now and --

        11              COMMISSIONER CRAWFORD:  Oh, oh.  Oh.  That.

        12              Is an election coming up?

        13              GOVERNOR BUSH:  You guys are living -- 

        14          living calmly.  The rest -- two of us here 

        15          are -- have two jobs right now.

        16              State Board of Administration.

        17              MR. HERNDON:  Good morning, Governor, 

        18          members of the Board.

        19              Item Number 1 is approval of the minutes of 

        20          the meeting held October 10th.

        21              COMPTROLLER MILLIGAN:  Move the minutes.

        22              TREASURER NELSON:  And I second it.

        23              GOVERNOR BUSH:  Moved and seconded.

        24              Without objection, it's approved.

        25              MR. HERNDON:  Item Number 2 is a resolution 



                        ACCURATE STENOTYPE REPORTERS, INC.
 

                           STATE BOARD OF ADMINISTRATION           8
                                 October 24, 2000
         1          of the State Board of Administration approving 

         2          the fiscal sufficiency of an aggregate amount 

         3          not exceeding 125 million dollar, State of 

         4          Florida, Department of Transportation turnpike 

         5          Revenue Bond, Series 2000.

         6              COMPTROLLER MILLIGAN:  Move Item 2.

         7              TREASURER NELSON:  And I second it.

         8              GOVERNOR BUSH:  Moved and seconded.

         9              Without objection, it's approved.

        10              MR. HERNDON:  Item Number 3 is a resolution 

        11          of the State Board of Administration rescinding 

        12          the prior approval of fiscal determination of 

        13          an amount not exceeding eight million 

        14          eight hundred and sixteen thousand five hundred 

        15          dollar tax exempt, and three million 

        16          nine hundred and one thousand dollar taxable 

        17          Florida Housing Finance Corporation Housing 

        18          Revenue Bonds, Series 2000, for the 

        19          Grande Pointe Apartments; and approving the 

        20          fiscal determination of an amount not exceeding 

        21          eight million eight hundred and sixteen 

        22          thousand five hundred dollar tax exempt, and 

        23          four million one hundred and seventy-three 

        24          thousand dollar taxable, Florida Housing 

        25          Finance Corporation, Housing Revenue Bonds, 



                        ACCURATE STENOTYPE REPORTERS, INC.
 

                           STATE BOARD OF ADMINISTRATION           9
                                 October 24, 2000
         1          2000 Series, also for the Grande Pointe 

         2          Apartments.

         3              GOVERNOR BUSH:  Boy, you did that without 

         4          breathing.

         5              That's pretty impressive.

         6              Is there a motion? 

         7              TREASURER NELSON:  I move it.

         8              COMPTROLLER MILLIGAN:  Move it.

         9              GOVERNOR BUSH:  Second?

        10              COMPTROLLER MILLIGAN:  Second.

        11              ATTORNEY GENERAL BUTTERWORTH:  Second.

        12              Oh, I'm sorry.  You asked --

        13              GOVERNOR BUSH:  I know. 

        14              You both moved it.  Can one of you second 

        15          it?

        16              COMPTROLLER MILLIGAN:  I'll second it.

        17              GOVERNOR BUSH:  Thank you, sir.

        18              Moved and seconded.

        19              Without objection, it's approved.

        20              ATTORNEY GENERAL BUTTERWORTH:  I'll remove 

        21          my second.

        22              MR. HERNDON:  Item Number 4 is approval of 

        23          a fiscal determination of an amount not 

        24          exceeding ten million three hundred and 

        25          sixty-five thousand dollar tax exempt, and 



                        ACCURATE STENOTYPE REPORTERS, INC.
 

                           STATE BOARD OF ADMINISTRATION          10
                                 October 24, 2000
         1          four million seven hundred and eighty thousand 

         2          dollar taxable, Florida Housing Finance 

         3          Corporation Housing Revenue Bonds for the 

         4          Westwood Apartments in Lee County, Florida.

         5              COMPTROLLER MILLIGAN:  And I'll move 

         6          Item 4.

         7              TREASURER NELSON:  And I second it.

         8              GOVERNOR BUSH:  Moved and seconded.

         9              Without objection, it's approved.

        10              MR. HERNDON:  Item Number 5 is the 

        11          Investment Policy Statement that we've had 

        12          quite a bit of discussion about previously, as 

        13          you recall, at the Cabinet meeting in 

        14          September 26th in Panama City. 

        15              Since that time, we had a hearing on 

        16          October 13th, during which time we took quite a 

        17          bit of testimony.  We also had several parties 

        18          who filed written comments, all of which have 

        19          been provided to your offices.

        20              At this time, we are not recommending any 

        21          revisions to the Investment Policy Statement, 

        22          and are requesting your approval to file the 

        23          proposed rule for notice.

        24              We will be back before you again in 

        25          December.  We will have an additional public 



                        ACCURATE STENOTYPE REPORTERS, INC.
 

                           STATE BOARD OF ADMINISTRATION          11
                                 October 24, 2000
         1          workshop between now and then.  We also have -- 

         2          excuse me -- a rule hearing. 

         3              We also have a public workshop scheduled 

         4          for next Monday, at which time we'll take 

         5          additional public comment and so forth.

         6              COMPTROLLER MILLIGAN:  I -- I move the 

         7          filing for notice.

         8              TREASURER NELSON:  And second it.

         9              GOVERNOR BUSH:  Moved and seconded.

        10              Without objection, it's approved.

        11              MR. HERNDON:  And Item Number 6 is the 

        12          report by the Executive Director, which is 

        13          submitted for information for the month of 

        14          August, which is the fund activity report.

        15              GOVERNOR BUSH:  Do we need a motion?

        16              Nope.

        17              MR. HERNDON:  Thank you very much.

        18              GOVERNOR BUSH:  Thank you, Tom. 

        19              (The State Board of Administration Agenda 

        20          was concluded.)

        21                              *   *   *

        22          

        23     

        24     

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                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE             12
                                 October 24, 2000
         1              GOVERNOR BUSH:  Division of Bond Finance.

         2              MR. TINSLEY:  Good morning.

         3              Item Number 1 is approval of the minutes of 

         4          the October 10th meeting.

         5              COMPTROLLER MILLIGAN:  Approve the minutes.

         6              COMMISSIONER CRAWFORD:  Second.

         7              GOVERNOR BUSH:  Moved and seconded.

         8              Without objection, it's approved.

         9              MR. TINSLEY:  Item Number 2 is adoption of 

        10          a resolution authorizing the competitive sale 

        11          not exceeding 125 million dollars in turnpike 

        12          revenue bonds.

        13              COMPTROLLER MILLIGAN:  Move approval.

        14              COMMISSIONER CRAWFORD:  Second.

        15              GOVERNOR BUSH:  Can I -- can I get an 

        16          understanding of this?

        17              The -- these bonds were issued by a 

        18          non-State authority.

        19              MR. TINSLEY:  No, sir.  They were issued by 

        20          the Division of Bond Finance back in the 

        21          mid-'80s.

        22              GOVERNOR BUSH:  They were.

        23              MR. TINSLEY:  Yes.

        24              GOVERNOR BUSH:  So there was an 

        25          understanding from the beginning that the State 



                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE             13
                                 October 24, 2000
         1          in these types of --

         2              COMMISSIONER GALLAGHER:  No.

         3              GOVERNOR BUSH:  -- these -- these -- the -- 

         4          the -- the Sawgrass Expressway was going to be 

         5          a State obligation? 

         6              MR. TINSLEY:  Yes, sir.

         7              COMMISSIONER GALLAGHER:  But wait a minute.  

         8          But it's not full faith and credit, the State 

         9          behind these bonds.

        10              MR. TINSLEY:  Oh, they -- yes, sir.  They 

        11          are full faith and credit.  Issued in 1984, 

        12          it's full faith and credit bonds issued by the 

        13          Division of Bond Finance.  And -- and --

        14              GOVERNOR BUSH:  I thought we were bailing 

        15          out Broward County.  Isn't that right? 

        16              I just wanted to have a discussion about 

        17          this about -- is that wrong? 

        18              COMPTROLLER MILLIGAN:  No.  I -- I did some 

        19          checking on it.  And I'm comfortable that we're 

        20          not bailing them out.  In fact, we're helping 

        21          ourselves in terms of revenue flow. 

        22              We would lose considerable revenue if we 

        23          didn't do this.  I don't remember the exact 

        24          numbers, but it's something like 3 million to 

        25          28 million, or something. 



                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE             14
                                 October 24, 2000
         1              Tim?

         2              MR. TINSLEY:  Right. 

         3              The -- there'll be a refunding aspect of 

         4          this, which will -- right now, the numbers show 

         5          about two-and-a-half million dollar savings, 

         6          and it -- 

         7              GOVERNOR BUSH:  I'm comfortable with the 

         8          financial decision as it relates to where we 

         9          are now.  I'm -- I am just -- this is the first 

        10          time I believe that I've been Governor and this 

        11          has come up. 

        12              And I'm curious to know what -- if we are 

        13          not -- were we doing the underwriting of the 

        14          Sawgrass Expressway to begin with? 

        15              MR. TINSLEY:  Yes, sir.  We did.

        16              GOVERNOR BUSH:  And we -- we had the full 

        17          faith and credit to begin with.

        18              MR. TINSLEY:  Yes.

        19              GOVERNOR BUSH:  So when -- when the revenue 

        20          estimates did not reach the estimates, we did 

        21          not have to -- I mean, we were -- we were 

        22          obligated, and we knew we were obligated?

        23              MR. TINSLEY:  That's correct.

        24              GOVERNOR BUSH:  Boy, that's different than 

        25          what I thought. 



                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE             15
                                 October 24, 2000
         1              How -- how about the bridge in Panama City? 

         2          I mean, in -- 

         3              COMPTROLLER MILLIGAN:  That's not --

         4              GOVERNOR BUSH:  -- Pensacola?

         5              GOVERNOR BUSH:  -- Panama City.

         6              That's a different problem.

         7              GOVERNOR BUSH:  Pensacola.

         8              COMMISSIONER GALLAGHER:  Bo's bridge.

         9              COMPTROLLER MILLIGAN:  That is a different 

        10          problem, and -- and that issue came up in the 

        11          discussions also.  And we may see that on the 

        12          horizon. 

        13              But it won't be handled like this, I don't 

        14          believe.

        15              GOVERNOR BUSH:  Were -- was that a full 

        16          faith and credit --

        17              MR. TINSLEY:  No.

        18              GOVERNOR BUSH:  -- obligation? 

        19              COMPTROLLER MILLIGAN:  No, they were not.

        20              GOVERNOR BUSH:  Okay.  So it's different in 

        21          that regard.

        22              MR. TINSLEY:  Not -- those are not bonds of 

        23          the State.

        24              GOVERNOR BUSH:  Okay.  I just want to be 

        25          sure that -- and I know the General is vigilant 



                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE             16
                                 October 24, 2000
         1          on these matters, and I appreciate that. 

         2              I just want to be sure that when we -- 

         3          if -- if we accept risk, that -- that we do the 

         4          underwriting, you know, that we -- that we're 

         5          not just kind of --

         6              COMMISSIONER GALLAGHER:  Let me ask a 

         7          question here.

         8              GOVERNOR BUSH:  Please.

         9              COMMISSIONER GALLAGHER:  When this -- when 

        10          this bond -- when this road was first built, 

        11          there was a Broward County turnpike sort of 

        12          association, right? 

        13              MR. TINSLEY:  Expressway Authority, 

        14          correct.

        15              COMMISSIONER GALLAGHER:  Expressway 

        16          Authority. 

        17              And they issued the original bonds for 

        18          this?

        19              MR. TINSLEY:  No.  We issued the bonds in 

        20          their behalf, the State did.

        21              COMMISSIONER GALLAGHER:  We issued them in 

        22          their behalf --

        23              MR. TINSLEY:  That's correct.

        24              COMMISSIONER GALLAGHER:  -- but without our 

        25          full faith and credit behind them.  It was a 



                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE             17
                                 October 24, 2000
         1          revenue bond based on the revenue of that road.

         2              MR. TINSLEY:  No.  We had -- the revenue of 

         3          the road was pledged, as well as 

         4          Broward County's gas tax.  But the State's full 

         5          faith and credit was behind the bonds.

         6              COMMISSIONER GALLAGHER:  Okay.  I had that 

         7          same impression the Governor did, I guess.  

         8          I --

         9              GOVERNOR BUSH:  Was Broward County in 

        10          the -- in the mix, or were -- we -- the full 

        11          faith and credit was right after the tolls?

        12              MR. TINSLEY:  Full faith and credit comes 

        13          after the tolls, and after Broward County's -- 

        14              COMMISSIONER GALLAGHER:  

        15          Broward County's --

        16              GOVERNOR BUSH:  There we go.  Now we're --

        17              COMMISSIONER GALLAGHER:  That's it.  

        18          They're supposed to be putting their money --

        19              GOVERNOR BUSH:  Okay.

        20              COMMISSIONER GALLAGHER:  -- in it.

        21              GOVERNOR BUSH:  Thank you. 

        22              COMPTROLLER MILLIGAN:  Exactly.

        23              GOVERNOR BUSH:  Now I'm -- that's what I 

        24          remembered.

        25              COMMISSIONER GALLAGHER:  There you go.



                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE             18
                                 October 24, 2000
         1              GOVERNOR BUSH:  So was -- there was a 

         2          general obligation by Broward County, and 

         3          they've come to us in the past, and -- and we 

         4          have -- we've taken them off the hook.

         5              MR. TINSLEY:  That's correct.

         6              COMMISSIONER GALLAGHER:  They did -- they 

         7          are not putting up the money they agreed to put 

         8          up when these bonds were issued.  That's the 

         9          issue that --

        10              COMPTROLLER MILLIGAN:  However, it's to our 

        11          advantage, based on the information I have from 

        12          the Department of Transportation, and from Tim, 

        13          this is to our advantage -- 

        14              MR. TINSLEY:  Yes, sir.

        15              COMPTROLLER MILLIGAN:  -- to execute this 

        16          program.

        17              GOVERNOR BUSH:  Well, the -- the -- the 

        18          dirty deed was done not with this one --

        19              COMPTROLLER MILLIGAN:  Absol--

        20              GOVERNOR BUSH:  -- it was done in --

        21              COMPTROLLER MILLIGAN:  Absolutely.  

        22              GOVERNOR BUSH:  Okay. 

        23              MR. TINSLEY:  Right.

        24              GOVERNOR BUSH:  If that's a technical term 

        25          used in the -- 



                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE             19
                                 October 24, 2000
         1              COMMISSIONER GALLAGHER:  The dirty deed.

         2              GOVERNOR BUSH:  -- bond business.

         3              MR. TINSLEY:  We know what you mean.

         4              GOVERNOR BUSH:  All right. 

         5              Well, there's a motion and a second.

         6              Any more discussion? 

         7              Without objection, it's approved. 

         8              Thank you. 

         9              (The Division of Bond Finance Agenda was 

        10          concluded.)

        11                              *   *   *

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                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION             20
                                 October 24, 2000
         1              GOVERNOR BUSH:  Where are we?

         2              COMMISSIONER GALLAGHER:  State Board.

         3              GOVERNOR BUSH:  State Board of Education.

         4              MR. PIERSON:  Item 1 is minutes of the 

         5          July 25th and September 12th meetings.

         6              COMMISSIONER CRAWFORD:  Motion.

         7              COMMISSIONER GALLAGHER:  Second.

         8              GOVERNOR BUSH:  Moved and seconded.

         9              Without objection, it's approved.

        10              MR. PIERSON:  Item 2 is a Board of Regents 

        11          rule, proposed revised Rule 6C-6.002, Entering 

        12          Freshmen.

        13              COMMISSIONER GALLAGHER:  Motion.

        14              COMMISSIONER CRAWFORD:  Second.

        15              TREASURER NELSON:  Governor --

        16              GOVERNOR BUSH:  Yes.

        17              TREASURER NELSON:  -- I just want to make 

        18          a -- a statement for the record. 

        19              I support the amendments being recommended 

        20          in this rule, which clarifies the types of 

        21          elective courses students must take for 

        22          university admission. 

        23              However, I want to state for the record 

        24          that I'm still opposed to the removal of 

        25          affirmative action from the admissions process. 



                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION             21
                                 October 24, 2000
         1              And that's a -- a decision that we made 

         2          last year, but that's in the context of this 

         3          rule, and I just wanted to clarify that.

         4              ATTORNEY GENERAL BUTTERWORTH:  Governor, I 

         5          join those comments.

         6              GOVERNOR BUSH:  Okay.

         7              COMMISSIONER GALLAGHER:  Well, as -- as 

         8          y'all know, that -- this rule is what's 

         9          required for students to take to get in, has 

        10          absolutely nothing to do with any kind of race 

        11          based or non-race based admissions.

        12              With that, I'll move the rule.

        13              COMMISSIONER CRAWFORD:  Second.

        14              GOVERNOR BUSH:  There's a motion and a 

        15          second.

        16              Any more discussion?

        17              I'm going to take a pass. 

        18              Without objection, other than the two 

        19          comments, the rule is approved.

        20              MR. PIERSON:  Item 3 is a student 

        21          appointment to the Board of Regents: 

        22          Natalie M. Copeland, her term ending 

        23          September 1st, 2001.

        24              COMMISSIONER GALLAGHER:  Motion.

        25              COMMISSIONER CRAWFORD:  Second.



                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION             22
                                 October 24, 2000
         1              GOVERNOR BUSH:  Moved and seconded.

         2              Without objection, it's approved.

         3              MR. PIERSON:  Item 4, student appointment 

         4          to the Postsecondary Education Planning 

         5          Commission:  Cornelia S. James, her term ending 

         6          August 31st, 2001.

         7              COMMISSIONER GALLAGHER:  Motion.

         8              COMMISSIONER CRAWFORD:  Motion.

         9              COMMISSIONER GALLAGHER:  Second.

        10              GOVERNOR BUSH:  Moved and seconded.

        11              Without objection, it's approved.

        12              Thank you. 

        13              (The State Board of Education Agenda was 

        14          concluded.)

        15                              *   *   *

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                        ACCURATE STENOTYPE REPORTERS, INC.
 

                     TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND     23
                                 October 24, 2000
         1              GOVERNOR BUSH:  Board of Trustees.

         2              MR. STRUHS:  Good morning.

         3              GOVERNOR BUSH:  Good morning.

         4              MR. STRUHS:  Item 1 is acceptance of the 

         5          minutes.

         6              COMMISSIONER GALLAGHER:  Motion on minutes.

         7              COMMISSIONER CRAWFORD:  Second.

         8              GOVERNOR BUSH:  Moved and seconded.

         9              Without objection, it's approved.

        10              MR. STRUHS:  Item 2 is withdrawn.

        11              COMMISSIONER GALLAGHER:  Okay.  Motion to 

        12          withdraw.

        13              COMMISSIONER CRAWFORD:  Second.

        14              MR. STRUHS:  Item 3, we're seeking your 

        15          approval for the 2000 CARL Interim Report and 

        16          Priority List.

        17              I'd be happy to summarize that for you, 

        18          if -- if you're interested.

        19              GOVERNOR BUSH:  Could you, please? 

        20              MR. STRUHS:  Sure.

        21              Since the Acquisition and Restoration 

        22          Council, which was formed when the 

        23          Florida Forever was first formed, it has met 

        24          five times. 

        25              During that course of the last several 



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         1          months, they've added one project to the 

         2          CARL list, they have approved amendments to 

         3          13 projects on the CARL list, and they've also 

         4          received a request from two different land 

         5          owners in one of the CARL projects, the 

         6          Belle Meade project, to remove their property 

         7          from the project boundaries.

         8              GOVERNOR BUSH:  Any -- is there a motion? 

         9              COMMISSIONER CRAWFORD:  Motion.

        10              COMMISSIONER GALLAGHER:  Second.

        11              GOVERNOR BUSH:  Moved and seconded.

        12              Any discussion? 

        13              COMPTROLLER MILLIGAN:  Just a quick 

        14          question, Governor.

        15              As I understand it, David, we can -- if 

        16          those properties that are being removed were to 

        17          become available, we could acquire them in some 

        18          form, if we really desire them as part of the 

        19          CARL project? 

        20              MR. STRUHS:  Yes, sir.  There's -- there's 

        21          a number of ways in which they could be 

        22          acquired in the future.  Obviously the land 

        23          owners could change their mind --

        24              COMPTROLLER MILLIGAN:  Sure.

        25              MR. STRUHS:  -- and then -- and be asked to 



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         1          be put back into the -- into the project 

         2          boundary.

         3              The other option, of course, is for us 

         4          to -- in the event that there is a -- a 

         5          particular opportunity to bring it to the 

         6          Cabinet, and use some of our expedited rules to 

         7          move on it in -- in -- in that fashion.

         8              COMPTROLLER MILLIGAN:  Okay.  So we're not 

         9          losing the -- the opportunity if it were to 

        10          become available.

        11              MR. STRUHS:  That's -- that's correct.

        12              COMPTROLLER MILLIGAN:  Okay. 

        13              MR. STRUHS:  These -- these owners are -- 

        14          are simply exercising their -- their -- 

        15              COMPTROLLER MILLIGAN:  Yes.

        16              MR. STRUHS:  -- legal rights under the law.

        17              COMPTROLLER MILLIGAN:  Understand that.

        18              Okay.  Thanks.

        19              GOVERNOR BUSH:  Have we --

        20              MR. STRUHS:  There's a motion and a second.

        21              GOVERNOR BUSH:  There is a motion and a 

        22          second?

        23              Without objection, it's approved.

        24              MR. STRUHS:  Item 4, seeking your 

        25          acceptance of our annual Land Management Review 



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         1          Team findings.

         2              Some good work was done here, ladies and 

         3          gentlemen.  Thirty-one plans have been 

         4          reviewed, covering a quarter of a million 

         5          acres.  I actually reviewed a number of them 

         6          myself, and -- and they're high quality 

         7          products.

         8              If you would like to make a motion, there 

         9          is one speaker on this.  Marianne Gengenbach 

        10          from the Nature Conservancy last minute this 

        11          morning asked if she could step up to the 

        12          microphone and say just a few words about this 

        13          item.

        14              GOVERNOR BUSH:  Sure. 

        15              Is there a motion? 

        16              ATTORNEY GENERAL BUTTERWORTH:  Motion.

        17              COMMISSIONER CRAWFORD:  Second.

        18              COMMISSIONER GALLAGHER:  Second.

        19              GOVERNOR BUSH:  Moved and seconded.

        20              Please. 

        21              MS. GENGENBACH:  Good morning, Governor --

        22              GOVERNOR BUSH:  Good morning.

        23              MS. GENGENBACH:  -- members of the Cabinet. 

        24              Marianne Gengenbach with the 

        25          Nature Conservancy. 



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         1              We realize that your job here today is only 

         2          to accept this report, and that there's no 

         3          other action required at this point.

         4              But the issuance of this report provides 

         5          the opportunity to kind of gain a snapshot of 

         6          what's happening with land management in the 

         7          state of Florida, and, therefore, it's an 

         8          opportunity for comment.

         9              There's an awful lot of good news in this 

        10          report, primarily because there are an awful 

        11          lot of good people out in our State's land 

        12          managing agencies who are working very hard to 

        13          take care of our public lands.

        14              And we have a lot to show for that, 

        15          including the best state park system in the 

        16          nation, as well as a bunch of other very 

        17          wonderful natural areas and recreational 

        18          opportunities.

        19              But I want to point out that there is some 

        20          bad news in this report.  And it's that on 

        21          which I want to comment.

        22              That is exemplified best by the statistic 

        23          that about a quarter of the plans reviewed 

        24          showed areas that were inadequately staffed and 

        25          inadequately equipped.



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         1              Now, we realize that this report is only a 

         2          sampling of plans on a statewide basis, but 

         3          that bears out the claim that's heard time and 

         4          time again that land management is lacking in 

         5          appropriate resources to get the job done.

         6              It's long been a cry of citizens, and their 

         7          elected officials, and a valid one, that it 

         8          isn't enough to simply set aside and protect 

         9          our critical natural areas, that obviously we 

        10          also have to take proper care of them, restore 

        11          them when needed, and ensure appropriate public 

        12          access.

        13              It's also well known that the current 

        14          mechanisms for funding land management are 

        15          anticipating a shortfall in the very near 

        16          future, in fact, as early as next year.

        17              The coming decade, the Florida Forever 

        18          program will bring even greater resource needs 

        19          in order to ensure adequate stewardship of our 

        20          public lands.

        21              Now, as an entity that also manages natural 

        22          areas, the Nature Conservancy understands very 

        23          well the tremendous resource needs that 

        24          adequate land stewardship requires. 

        25              Therefore, as you look in your 



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         1          administration for ways to govern more 

         2          efficiently and effectively, we strongly urge 

         3          you to make and keep proper land management and 

         4          proper funding of land management a priority of 

         5          your administration.

         6              Because we at the State have made a 

         7          commitment to preserve our natural areas and 

         8          their functions.  We can't fail that commitment 

         9          at this point, because our economy and the very 

        10          air we breathe, and the water we drink depend 

        11          on it. 

        12              And so we urge your support of appropriate 

        13          funding for land management.

        14              Thank you.

        15              GOVERNOR BUSH:  Thank you.

        16              Any other discussion?

        17              There's a motion and second for acceptance; 

        18          is that right? 

        19              MR. STRUHS:  Yes, sir.

        20              Item Number 5 is an --

        21              GOVERNOR BUSH:  Without objection, it's 

        22          approved. 

        23              Thank you.  Excuse me.

        24              MR. STRUHS:  Sorry. 

        25              (Secretary Harris exited the room.)



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         1              MR. STRUHS:  Item Number 5 is -- is an 

         2          interesting one.  You will all recall that the 

         3          various land management agencies have some 

         4          discretionary resources made available to them 

         5          through our land acquisition programs in which 

         6          they can pursue inholdings and additions to 

         7          existing resources that they manage.

         8              Item 5 is -- is one of these examples.  And 

         9          we're fortunate to have Dr. Allan Egbert here 

        10          from the Florida Fish and Wildlife Conservation 

        11          Commission to present this item regarding the 

        12          acquisition of Paradise Island in Lake Tohope--  

        13          Lake Toho.

        14              GOVERNOR BUSH:  Yeah.

        15              Good try.

        16              MR. STRUHS:  Tohopekaliga.

        17              Thank you.

        18              COMMISSIONER CRAWFORD:  Tohopekaliga.

        19              Used to represent that area.

        20              GOVERNOR BUSH:  Yeah.

        21              DR. EGBERT:  Thank you, Mr. Secretary.

        22              Governor, members of the Cabinet, thanks 

        23          for this opportunity to talk to you this 

        24          morning.

        25              The reason we're here is because basically 



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         1          Florida lakes are becoming increasingly 

         2          difficult to manage, and it's mainly because of 

         3          social reasons. 

         4              People tend not to like water moved out 

         5          from under their docks, and -- and wherever -- 

         6          wherever that happens, we tend to get in a 

         7          prolonged debate.  And if we don't manage the 

         8          lakes, they deteriorate and decline.

         9              We have -- basically you're familiar with 

        10          the -- the Mackinson Island acquisition, 

        11          of course.  This one here is -- is -- is 

        12          Paradise Island. 

        13              Let me just mention -- I know there are two 

        14          issues at least:  Number one, why the island; 

        15          and, number two, why the expense.

        16              The big difference between Paradise Island 

        17          and Mackinson Island is the vested property -- 

        18          or the vested development rights on 

        19          Paradise Island.  Plus there's a fairly viable, 

        20          and expensive 9-acre parcel of shoreline.

        21              Governor, if it suits you, there are a 

        22          number of people here to speak to this issue.

        23              (Secretary Harris entered the room.)

        24              DR. EGBERT:  I -- I would mention the names 

        25          first, if I could.



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         1              GOVERNOR BUSH:  Sure.

         2              DR. EGBERT:  The first is 

         3          Commissioner Dunnick, who is the Chairman of 

         4          the Osceola County Commission. 

         5              There are four students here from Neptune 

         6          Middle School of Osceola County:  

         7          Samantha Rigsby, Aubrey Morse, Laura Partin, 

         8          and Chris White.

         9              I would like to have you hear just briefly 

        10          from the Division Director of Freshwater 

        11          Fisheries, Mr. Ed Moyer, who is a veteran of 

        12          the Kissimmee Valley.  He knows the issues of 

        13          managing water bodies in the Kissimmee Valley, 

        14          and he would take just some brief time to tell 

        15          you why he thinks this is important.

        16              And then we would conclude with 

        17          Mr. Greg Chelius of TPL.

        18              First would be Commissioner Dunnick of 

        19          Osceola County.

        20              GOVERNOR BUSH:  Welcome, Commissioner.

        21              MR. DUNNICK:  Governor, always good to see 

        22          you.

        23              Cabinet members. 

        24              Governor, I understand why you're -- why -- 

        25          why you have a problem with some of these --



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         1              GOVERNOR BUSH:  Well, wait a --

         2              MR. DUNNICK:  -- issues.

         3              GOVERNOR BUSH:  -- second now.  You don't 

         4          know if I have a problem yet.

         5              MR. DUNNICK:  And -- and I hope after you 

         6          hear what we have -- 

         7              GOVERNOR BUSH:  What's your gripe?

         8              MR. DUNNICK:  -- we have to say today, 

         9          we -- we have a very unique remedy for that --

        10              GOVERNOR BUSH:  Who are you talking to is 

        11          what I want to know.

        12              MR. DUNNICK:  Yeah.  We have -- we have 

        13          made an investment in this chain of lakes of 

        14          over 50 million dollars in the last five years, 

        15          which is an incredible amount of money.

        16              GOVERNOR BUSH:  The County has? 

        17              MR. DUNNICK:  We have done -- we have done 

        18          the largest muck removal project in the country 

        19          on the Lake Kissimmee and Toho chain.

        20              And, you know, these are the headwaters of 

        21          the Kissimmee River which we now have a half 

        22          billion dollar investment on restoring the 

        23          Kissimmee River.  Kissimmee River flows on down 

        24          and supplies the water for our Everglades 

        25          restoration.  And so it all ties in together.



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         1              And so when you look at the values that 

         2          we're talking about by taking this island off 

         3          the private sect to where we at local 

         4          government don't have to deal with a vested PUD 

         5          on what this has, it has a vested PUD. 

         6              There's no way that I can -- there's no way 

         7          that I can take away the property owner's 

         8          rights to develop the 189 units that they're 

         9          vested.

        10              I can -- I can maybe make them do certain 

        11          things, but I can't take away that right, and 

        12          I'm going to have to deal with them down the 

        13          road somewhere.

        14              GOVERNOR BUSH:  Commissioner Gallagher.

        15              COMMISSIONER GALLAGHER:  I have a question.

        16              MR. DUNNICK:  Commissioner, yes, sir.

        17              COMMISSIONER GALLAGHER:  How do they get 

        18          those vested rights?

        19              MR. DUNNICK:  Well, before my time -- BC, 

        20          Before Chuck -- in 1985, through County 

        21          ordinances that they had structured, 

        22          Commissioner, they -- they were able to come in 

        23          and vest their property to what they had to 

        24          approve for that ran with the land.

        25              And we do not have the ability to take away 



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         1          that vestiture.  The only way you can do that, 

         2          Commissioner, as you know, is we have to --

         3              GOVERNOR BUSH:  Well, let me ask you 

         4          something.

         5              MR. DUNNICK:  Yes, sir.

         6              GOVERNOR BUSH:  You can't take away 

         7          development rights, but if someone was going to 

         8          build on an island that doesn't have an access 

         9          to it, what kind of mitigation would you 

        10          require for them to have those rights?

        11              Just because they're vested, doesn't mean 

        12          you don't have the authority to require certain 

        13          things in the interest of the County.

        14              MR. DUNNICK:  Right, Governor. 

        15              We had a -- we had a 12-hour quasi-judicial 

        16          hearing on Mackinson Island, which you all 

        17          might know as Cypress Island which we 

        18          purchased.  It's kind of like a sister island.

        19              GOVERNOR BUSH:  Is that the one we did --

        20              COMMISSIONER GALLAGHER:  Right.

        21              MR. DUNNICK:  Yeah.

        22              And they didn't -- and they didn't follow 

        23          through with the County ordinance and vest what 

        24          they had approved BC, Before Chuck. 

        25              But all those issues you were talking 



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         1          about, Governor, were addressed:  How are you 

         2          going to get people out in an emergency, how 

         3          are you going to -- hov-- they were using 

         4          hovercrafts, they were using helicopters, they 

         5          were using all kind of different boats. 

         6              And they had addressed those two prior -- 

         7          prior Commissions.  And so when they came to 

         8          renew that thing, we had a 12-hour 

         9          quasi-judicial hearing on that thing.  And it 

        10          went down.  We turned it down.

        11              And -- 

        12              GOVERNOR BUSH:  You turned it down, and 

        13          then we bought it? 

        14              MR. DUNNICK:  No.  We turned -- we -- we 

        15          turned down the change that they came to us for 

        16          on the existing PUD they already had approved, 

        17          Governor. 

        18              Okay.  They -- they wanted to change it, 

        19          do --

        20              GOVERNOR BUSH:  Right.

        21              MR. DUNNICK:  -- some different things, and 

        22          we said no.

        23              GOVERNOR BUSH:  All right.

        24              MR. DUNNICK:  Anyway -- so in the event -- 

        25          they ended up basically having a fire sale -- 



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         1          and, you know, that's something maybe we, the 

         2          State and local government, need to -- we need 

         3          to be -- have ourselves a position where we can 

         4          step in and get in the front door like some 

         5          other people, and don't have to pay in the back 

         6          door.

         7              COMMISSIONER GALLAGHER:  We've taken care 

         8          of that.

         9              MR. DUNNICK:  You know, that'd be a great 

        10          thing.

        11              GOVERNOR BUSH:  Well, yeah.

        12              MR. DUNNICK:  And --

        13              COMMISSIONER GALLAGHER:  We've done --

        14              MR. DUNNICK:  -- you know, hindsight's 

        15          always 20/20. 

        16              But we'll get better at that, because I 

        17          know with you in control, we're going to get a 

        18          lot better in that.

        19              But, Governor, I just want to tell you that 

        20          the people in Osceola County have partnered 

        21          with State officials, this Cabinet has 

        22          supported our endeavors.  And we have done some 

        23          great things in cleaning up shorelines and 

        24          habitat that just made so much sense. 

        25              And if you tie this -- uniqueness of this 



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         1          project together, we don't need to have a -- an 

         2          island sitting out there that local 

         3          government's going to have to deal with, 

         4          because I'll guarantee you, we're going to have 

         5          to come back and buy it one day. 

         6              Otherwise, we're probably going to stop the 

         7          restoration projects, because the Corps 

         8          probably will not permit us to draw down the 

         9          lakes. 

        10              If y'all remember the battle we just went 

        11          through with the fish farmers on 

        12          Alligator Lake, that was a heck of a process, 

        13          and we finally got that done. 

        14              And so -- I mean, we're going in the right 

        15          direction.  We don't need to turn back.  And -- 

        16          and I would just suggest that, you know, any 

        17          time we've got the ability to negotiate a price 

        18          at less than the appraisal, you know, we're 

        19          going in the right direction. 

        20              But I can tell you, if this was -- didn't 

        21          have that vested PUD, we'd all be talking about 

        22          a different value.

        23              And I'll answer any questions.

        24              GOVERNOR BUSH:  Thank you, Commissioner.

        25              Let's -- let's get the -- the students 



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         1          coming up.

         2              DR. EGBERT:  From Neptune Middle School, 

         3          first will be Samantha Rigsby.

         4              GOVERNOR BUSH:  Hey, Samantha.  Welcome.

         5              MS. RIGSBY:  Thank you.

         6              Hello.  My name is Samantha Rigsby, and I'm 

         7          thirteen years old.  I was born in 

         8          Osceola County, and I am here because I'm 

         9          concerned about the natural habitats in and 

        10          around Lake Tohopekaliga, especially 

        11          Paradise Island.

        12              Paradise Island is the second largest 

        13          island in Lake Tohopekaliga, and I would like 

        14          you to keep it natural so that we may enjoy its 

        15          beauty.

        16              Development of this island would eventually 

        17          harm the lake.  Developers have already 

        18          destroyed so many of our natural resources that 

        19          there will be nothing left for my children.  It 

        20          makes me sad to think about all the animals 

        21          that will be homeless if this is approved.

        22              Environmental groups are attempting to 

        23          clean up Lake Tohopekaliga, but development of 

        24          Paradise Island will more than likely increase 

        25          pollution in the lake and on the island.



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         1              This is not just a dollar and cents issue.  

         2          To me, there are three issues: 

         3              One, do we want to use up all the habitable 

         4          space; two, in what condition do we want to 

         5          leave this earth; and, three, how will future 

         6          generations remember us?

         7              If you develop Paradise Island, it won't be 

         8          paradise anymore.

         9              GOVERNOR BUSH:  Thank you.  Well said.

        10              DR. EGBERT:  Also from the middle school, 

        11          Aubrey Morse.

        12              GOVERNOR BUSH:  Good morning.

        13              MR. MORSE:  Good morning.

        14              My name is Aubrey Morse, and I was born and 

        15          raised in Osceola County.  I have spent many 

        16          hours relaxing and -- by fishing, swimming, and 

        17          boating on Lake Tohopekaliga.  It is 

        18          world famous for fish and game.  People come 

        19          from all over the world to enjoy the beautiful 

        20          lake and its peaceful islands.

        21              GOVERNOR BUSH:  What do you catch there, 

        22          Aubrey? 

        23              MR. MORSE:  Hmm?

        24              GOVERNOR BUSH:  What do you catch there on 

        25          the lake?  Bass or --



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         1              MR. MORSE:  Bass and --

         2              GOVERNOR BUSH:  Mostly?

         3              MR. MORSE:  -- gar and stuff.

         4              GOVERNOR BUSH:  Okay. 

         5              MR. MORSE:  If private investors build on 

         6          Paradise Island, the peacefulness of the 

         7          natural island will be gone, along with 

         8          memories of a lot of people. 

         9              Not only that, children in the future will 

        10          never be able to have the experience of the 

        11          beautiful island natural, or the 20,000 acre 

        12          lake clean, because the lake will become 

        13          polluted, and different animals and wonderful 

        14          fishing will become destroyed.

        15              The island would just be built up like most 

        16          of Osceola County already is.

        17              I think there's more -- there should be 

        18          more to Osceola County than just development.

        19              Thank you.

        20              GOVERNOR BUSH:  Thank you, Aubrey.

        21              ATTORNEY GENERAL BUTTERWORTH:  That'd be a 

        22          nice hair style for you, Governor.

        23              GOVERNOR BUSH:  Maybe Aubrey could teach me 

        24          how to make my hair look like that.

        25              COMMISSIONER GALLAGHER:  Boy, I'd sure like 



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         1          to see you at the next Cabinet meeting with one 

         2          of those dos.

         3              SECRETARY HARRIS:  Yeah.  That'd be great. 

         4          That'd be great.

         5              DR. EGBERT:  Ms. Laura Partin.

         6              COMMISSIONER CRAWFORD:  That may be part of 

         7          the wager on the election.

         8              SECRETARY HARRIS:  Yeah.  There you go.

         9              COMMISSIONER GALLAGHER:  Put your finger in 

        10          that socket back there, and --

        11              GOVERNOR BUSH:  I'm sorry.  What's your 

        12          name?

        13              MS. PARTIN:  Laura Partin.

        14              GOVERNOR BUSH:  Laura.  Welcome.

        15              MS. PARTIN:  My name is Laura Partin, and 

        16          I'm the fifth generation of one of the founding 

        17          families in Osceola County.

        18              GOVERNOR BUSH:  Wow.

        19              MS. PARTIN:  It's a privilege to grow up in 

        20          a farm and ranch family, and be in a wilderness 

        21          environment.

        22              My father and grandfather have taught me to 

        23          love the land and take care of it.  For 

        24          five generations, we have raised cattle, and 

        25          farmed the land while maintaining its natural 



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         1          beauty.

         2              Paradise Island has been used for cattle 

         3          grazing for years.  My granddaddy and his 

         4          brothers remember moving cattle off the island 

         5          in rainy weather and having many picnics on 

         6          Paradise Island.  If you build a housing 

         7          development on this island, all that will be 

         8          lost.

         9              Just think of all the unique ways we could 

        10          use this island.  Osceola County has the 

        11          fastest growing student population in the 

        12          state.  Wouldn't it be great to be able to 

        13          share the country and natural beauty with all 

        14          these young people.

        15              When we grow up, our children may not be 

        16          able to enjoy the type of environment that I've 

        17          seen my whole life.  I want the sixth and 

        18          seventh generation of Partin children, and all 

        19          the other children, to know that there's more 

        20          than Mickey Mouse in Osceola County.

        21              GOVERNOR BUSH:  Well said, Laura.

        22              TREASURER NELSON:  Governor, I just want to 

        23          say about the Partin family, that they are also 

        24          the founders of one of the nation's premier 

        25          rodeos, the Silver Spurs Rodeo -- 



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         1              GOVERNOR BUSH:  Oh, yeah.

         2              MS. PARTIN:  Yes.

         3              TREASURER NELSON:  -- which, when I was 

         4          Osceola County's congressman, I used to have 

         5          the privilege of riding in.  I would be stuck 

         6          to that saddle like flypaper --

         7              COMMISSIONER GALLAGHER:  You rode --

         8              TREASURER NELSON:  -- afraid of the 

         9          embarrassment in front of 10,000 people.

        10              But the -- the Partins, I remember one of 

        11          your great uncles, Slim Partin --

        12              MS. PARTIN:  Yes.

        13              TREASURER NELSON:  -- used to do the 

        14          quadrille, where they actually do a 

        15          square dance on horses.  It was --

        16              MS. PARTIN:  Well, because I -- I'm 

        17          actually in quadrille still.

        18              GOVERNOR BUSH:  Are you?

        19              TREASURER NELSON:  Oh, terrific.

        20              MS. PARTIN:  Yes.

        21              TREASURER NELSON:  What is great about the 

        22          Silver Spurs is that it spans the generations.  

        23          They'll have the older generation riding in the 

        24          rodeo, along with the younger generation as 

        25          well.



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         1              GOVERNOR BUSH:  That's fantastic.

         2              MS. PARTIN:  Thank you.

         3              DR. EGBERT:  Mr. -- Mr. Chris White.

         4              Chris. 

         5              MR. WHITE:  Good morning.

         6              GOVERNOR BUSH:  Good morning.

         7              MR. WHITE:  My name is Chris White, and I 

         8          am an eighth grader at Neptune Middle School.

         9              Neptune Middle School is nationally 

        10          recognized as a blue ribbon school, and a 

        11          national service learning school.  Students at 

        12          the school own a large partnership with 

        13          Osceola County, and Fish & Game to take care of 

        14          Makinson Island. 

        15              Today Osceola County is surrounded by many 

        16          artificial worlds and amusement parks, such as 

        17          Disney World and Sea World.

        18              Where is there a chance for kids and adults 

        19          to see, feel, touch, and breathe something so 

        20          real?  A chance where people will be able to 

        21          see the other side of life.  These 95 acres of 

        22          land are there to be used in good hands and 

        23          with respect.

        24              Today your vote will go to save a unique 

        25          part of Florida which is rapidly disappearing 



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         1          due to overdevelopment.

         2              If you develop Paradise Island, I assure 

         3          you it will not be paradise anymore.

         4              Thank you.

         5              GOVERNOR BUSH:  Thank you for coming.

         6              COMMISSIONER GALLAGHER:  I'm just glad we 

         7          heard from the Seahawks. 

         8              Isn't that the school's --

         9              Good.

        10              GOVERNOR BUSH:  How'd you know that, 

        11          Gallagher?

        12              COMMISSIONER GALLAGHER:  I'm the 

        13          Commissioner of Education.  Supposed to know -- 

        14              GOVERNOR BUSH:  Do you know every mascot?

        15              That's 2200 scho-- 2,200 schools.

        16              COMMISSIONER GALLAGHER:  I don't claim to 

        17          know them all. 

        18              GOVERNOR BUSH:  All right.

        19              COMMISSIONER GALLAGHER:  I don't want to -- 

        20          I don't want to be in a contest.

        21              DR. EGBERT:  Governor, members of the 

        22          Cabinet, Mr. Ed Moyer is the Director of the 

        23          Division of Freshwater -- Division of 

        24          Freshwater Fisheries in the Commission.  And he 

        25          has a lot of years of experience, and I've 



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         1          asked him just to say very briefly some of the 

         2          impacts and context for this.

         3              MR. MOYER:  Good morning, Governor, and 

         4          members of the Cabinet.  I find it difficult to 

         5          follow up these young people here, because 

         6          they've -- they've done such a nice job talking 

         7          about our natural resources there. 

         8              But I had the unique privilege to serve 

         9          20 years on Kissimmee chain of lakes and be 

        10          involved in lake enhancement projects.

        11              That's a very unique area down there.  The 

        12          fish and wildlife values are outstanding.  We 

        13          have things like snail kites, whooping cranes, 

        14          eagles, and so forth. 

        15              We have people that travel all over the 

        16          United States to come and -- and see what we 

        17          have, they -- the bounty of the wildlife.

        18              And the fisheries, we have folks coming 

        19          from all over the United States.  We have had 

        20          anglers from Japan come over and enjoy the 

        21          largemouth bass fishing.  And it -- it's 

        22          unique.  It means a lot to the local economy.  

        23          It is the headwaters of the Everglades. 

        24              We -- Lake Tohopekaliga in particular 

        25          catches run-off from all the Orlando area, the 



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         1          developed areas north of us.  And there was a 

         2          time in the mid-'80s when we had water quality 

         3          problems that the chlorophyll a or the algae 

         4          levels in that lake were as high as -- as 

         5          Lake Apopka.  But we've managed to hang on. 

         6              We've worked hard to grab a hold of that 

         7          and use lake enhancement techniques that we've 

         8          developed.  And regardless of the -- the growth 

         9          in the watershed, and also the flood control 

        10          project that was put in there, we've been able 

        11          to overcome those issues. 

        12              We've used drawdowns as one of the 

        13          techniques, and that's basically where we 

        14          expose about 40 to 50 percent of the lake 

        15          bottom. 

        16              We have the flood control system in place 

        17          so we can lower the lakes.  And it's usually 

        18          about a six-month program.  But some of the 

        19          ones we've put in place when it didn't rain may 

        20          go as long as a year-and-a-half, and it's a 

        21          very long -- it's been two years. 

        22              But what that does is dry up the organic 

        23          sediments, it allows us to revegetate with 

        24          native aquatics.  And when you reflood, we have 

        25          a blossoming of fish populations and fish food 



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         1          organisms.

         2              We've been working down there since 1971 

         3          was our first project, first one in the state 

         4          of Florida aimed at aquatic habitat in 

         5          particular. 

         6              1979, we carried out a project when the 

         7          approximately 20 million gallons of secondary 

         8          treated effluent was coming into 

         9          Lake Tohopekaliga.  It's like an old fighter, 

        10          kind of gets punched and punched again, and 

        11          comes back up, and we've been able to bring it 

        12          back and -- and have it be a good resource.

        13              1987, we had our first muck removal 

        14          project.  When we took the lake down, we spent 

        15          $450,000 cleaning up the lake bottom.  That 

        16          money came from DEP.  The money also came from 

        17          the tourist development folks down in 

        18          Osceola County. 

        19              They've been a partner in everything we've 

        20          done there.

        21              We have a project set up for 2001-2002 

        22          where we're estimating 5 million dollars.  

        23          We're going to try to put together a 

        24          multiagency effort to clean up that lake again.

        25              Our partners have been Osceola County.  



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         1          You've heard that -- Commissioner Dunnick, the 

         2          Tourist Development Commission, the DEP has 

         3          come forward and helped us with aquatic plant 

         4          management and also dollars. 

         5              South Florida Water Management District has 

         6          put people on the lake to help clean up. 

         7              In 1996, when we did the Lake Kissimmee 

         8          project, we actually had the U.S. Army 

         9          Corps of Engineers come forward with trucks and 

        10          people to help us carry organics out of there. 

        11              We've had great support from local 

        12          constituents, and the Legislature has always 

        13          been with us in the form of -- we've had 

        14          Senator and Representative Bronson be our 

        15          partners.

        16              GOVERNOR BUSH:  Thank you.

        17              DR. EGBERT:  Governor, the last person on 

        18          my list is Mr. Greg Chelius of The Trust for 

        19          Public Land.

        20              And I would mention if -- if you have 

        21          questions, we have -- also here is one of the 

        22          two appraisers, Mr. Frank Catlett.  He -- he's 

        23          not -- doesn't need to say anything, but if you 

        24          have questions, he's available.

        25              GOVERNOR BUSH:  He'd better stand by. 



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         1              MR. CHELIUS:  Good morning, Governor, and 

         2          members of the Cabinet.

         3              If for nothing else, I think this has been 

         4          a great educational opportunity for these four 

         5          young people.  And those really are the folks 

         6          that are going to benefit from the acquisition 

         7          and protection of Lake Toho.

         8              Last year you approved the acquisition of 

         9          Cypress Island.  And during that process, I 

        10          promised I would never be back at this podium 

        11          talking to you about acquiring another island 

        12          in Lake Toho.

        13              GOVERNOR BUSH:  What happened? 

        14              MR. CHELIUS:  But we got involved somewhere 

        15          in the middle of the project.

        16              It was really the first step, of two steps, 

        17          to provide for the long-term management and 

        18          protection of the water quality of the lake.

        19              As you know, in order to protect the water 

        20          quality of the lake, and many lakes like 

        21          Lake Talquin, just outside Tallahassee, you 

        22          must draw down the water, clean up the 

        23          sediments, and allow the bottom to dry up 

        24          naturally as it cleanses itself, refill it, and 

        25          then it will be healthy for a while.



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         1              It's kind of like a goldfish bowl that you 

         2          have to clean periodically, or eventually the 

         3          fish will die.

         4              It's called hypoeutrophic, and a number of 

         5          lakes in Florida have experienced that, and -- 

         6          and certainly they do die.

         7              But because of the drawdowns, we will be 

         8          able to protect the long-term viability of the 

         9          lake.

        10              The reason for the acquisition is, 

        11          of course, to prevent development in the middle 

        12          of the lake so that the daily lives of those 

        13          who may live on these islands would not be 

        14          interrupted. 

        15              And certainly the State, if the decision 

        16          was made to draw down the lake while people 

        17          live there, would not be up for a possible 

        18          lawsuit.

        19              GOVERNOR BUSH:  Why would they have a 

        20          lawsuit? 

        21              MR. CHELIUS:  Well, they would not be able 

        22          to get to and from work --

        23              COMMISSIONER GALLAGHER:  But --

        24              MR. CHELIUS:  -- on a daily basis.

        25              COMMISSIONER GALLAGHER:  But what -- but 



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         1          they know that when they buy it.  So that has 

         2          to be a disclosure to them.  So how do they get 

         3          to sue after they buy something, realizing 

         4          that's the -- that's the problem when they buy 

         5          it? 

         6              MR. CHELIUS:  Well -- 

         7              COMMISSIONER GALLAGHER:  They have to be 

         8          given that disclosure. 

         9              MR. CHELIUS:  It's -- do they -- does the 

        10          State have a right to draw down the lake when 

        11          people who own the lake have the ability to 

        12          sell lots to the public.

        13              COMMISSIONER GALLAGHER:  The public buys a 

        14          lot knowing that they're going to have -- that 

        15          they're going to have the lake brought down. 

        16              How do they have a lawsuit?   

        17              MR. CHELIUS:  Well, I think the lawsuit 

        18          would probably come from the owners of the 

        19          island as it stands now.

        20              COMMISSIONER GALLAGHER:  That -- it's 

        21          been -- they've been owning it, and it's been 

        22          drawn down from -- since they've owned it.

        23              MR. CHELIUS:  But they have the ability to 

        24          sell it to 192 different buyers.

        25              COMMISSIONER GALLAGHER:  As long as those 



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         1          people are willing to live with the lake being 

         2          drawn down.

         3              MR. CHELIUS:  Well, again, I think that 

         4          would be a lawsuit.

         5              GOVERNOR BUSH:  Yeah.  That's --

         6              COMMISSIONER CRAWFORD:  That would be the 

         7          law.

         8              MR. CHELIUS:  And I -- 

         9              GOVERNOR BUSH:  I think you've --

        10              MR. CHELIUS:  -- setting yourself up.

        11              GOVERNOR BUSH:  -- that's also the 

        12          valuation question, which is really the --

        13              COMMISSIONER GALLAGHER:  Yeah.  That's -- 

        14          that's --

        15              GOVERNOR BUSH:  -- whole point.

        16              COMMISSIONER GALLAGHER:  -- why I'm having 

        17          a problem. 

        18              All of a sudden, we're telling these people 

        19          that it doesn't matter that we draw the lake 

        20          down.  You can sue because we draw the lake 

        21          down because you bought a piece of property 

        22          knowing that the lake was brought down.

        23              COMMISSIONER CRAWFORD:  But -- but the 

        24          people that currently own the property don't -- 

        25          didn't buy it before the drawdown.  They -- 



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         1          people -- everybody owned that property when we 

         2          started this whole process.

         3              GOVERNOR BUSH:  Is that right?

         4              COMMISSIONER CRAWFORD:  And I helped start 

         5          it when I was President of the Senate.  And I'm 

         6          glad I did. 

         7              But at the time everybody involved said we 

         8          would -- we'd be very cautious about the 

         9          property rights around -- the owners around 

        10          all -- the lake and the whole Kissimmee chain, 

        11          which we have been. 

        12              But what he's saying is that if you own a 

        13          piece of property and it has value, and -- and 

        14          government takes an action and lowers the value 

        15          of it, you have the potential of a -- of a 

        16          lawsuit.

        17              GOVERNOR BUSH:  But you --

        18              COMMISSIONER GALLAGHER:  Well, let me ask 

        19          you this -- 

        20              GOVERNOR BUSH:  -- but the government --

        21              COMMISSIONER GALLAGHER:  Do the people want 

        22          to have a dead lake?

        23              GOVERNOR BUSH:  -- has taken that action 

        24          prior to this as well.  The point is, when 

        25          does -- when -- you know, this is not -- I 



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         1          don't think this is a taking.

         2              COMMISSIONER CRAWFORD:  Yeah.

         3              GOVERNOR BUSH:  But let's assume for a 

         4          moment that this would be a -- you're -- you're 

         5          making the assumption that it is I think for 

         6          the lawsuit purposes.

         7              That right to draw down existed prior to 

         8          someone getting a permit prior to the 

         9          development rights being established by --

        10              MR. CHELIUS:  Exactly.

        11              GOVERNOR BUSH:  -- going to the --

        12              COMMISSIONER GALLAGHER:  The County.

        13              GOVERNOR BUSH:  -- the County and -- and 

        14          seeking a plat for this island, assuming that 

        15          they went forward.

        16              So if that's the case, it isn't a taking.

        17              MR. CHELIUS:  Well, again, I think they -- 

        18          and I don't know.  I'm not an attorney.  But 

        19          I think they may have a case of a taking.

        20              COMMISSIONER GALLAGHER:  Well --

        21              MR. CHELIUS:  You know, and that's -- it's 

        22          debatable.  But I -- I think -- 

        23              COMMISSIONER CRAWFORD:  It depends on the 

        24          timing.

        25              MR. CHELIUS:  -- you could be opening up 



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         1          yourselves for --

         2              GOVERNOR BUSH:  Well, I'm glad to see The 

         3          Trust for Public Lands is a strong advocate of 

         4          private property rights, because that's -- that 

         5          would be a bold interpretation of our takings 

         6          laws.

         7              MR. CHELIUS:  Well, I think what you have 

         8          here is you have the ability to acquire the 

         9          property at a fair price, and protect the 

        10          long-term ability of the Game Commission to 

        11          manage the lake for water quality, and -- 

        12          you know, that's what you have the ability --

        13              GOVERNOR BUSH:  No, that --

        14              MR. CHELIUS:  -- to do.

        15              GOVERNOR BUSH:  -- part -- I don't know 

        16          about -- maybe.

        17              COMMISSIONER GALLAGHER:  I guess -- I think 

        18          we all --

        19              GOVERNOR BUSH:  I don't think anybody's --

        20              COMMISSIONER GALLAGHER:  -- agree with 

        21          that.

        22              GOVERNOR BUSH:  -- arguing that.

        23              MR. CHELIUS:  Pardon me?

        24              COMMISSIONER GALLAGHER:  I don't see 

        25          anybody disagreeing with that.



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         1              MR. CHELIUS:  Okay. 

         2              How we got involved.

         3              After last year, I said that certainly 

         4          I think the Game Commission and the State could 

         5          acquire Paradise Island.  It was during the 

         6          conversations of buying Cypress Island, if you 

         7          recall, that we kind of discussed, it wouldn't 

         8          make a lot of sense to buy one island if we 

         9          didn't acquire both.

        10              And I think, Governor, you may have been 

        11          the one that actually said that.  You know, 

        12          what happens if we buy one -- we can't buy the 

        13          other one.

        14              So the Game Commission I know immediately 

        15          started evaluating Paradise Island.  It -- it 

        16          obviously ranked high on their -- their list. 

        17              And after that -- that process, then it 

        18          went to the Division of State Lands. 

        19              During that time, we were contacted because 

        20          the owner had told the State that they began 

        21          actively marketing the property to the private 

        22          sector.

        23              And if the State wanted to have the ability 

        24          to acquire the property, we met with the land 

        25          owners, we had an appraisal done, the appraisal 



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         1          was 5.2 million dollars.  And essentially we 

         2          optioned the property, giving the owners a 

         3          certain amount of money to keep it under option 

         4          so the State would have the ability to buy the 

         5          property.

         6              And that's -- that's basically how we got 

         7          involved.

         8              Comparing the value of Cypress Island with 

         9          Paradise Island, Cypress Island, when it was 

        10          evaluated, had a -- a density of one unit per 

        11          5 acres.  Paradise Island has a density of 

        12          two units per 1 acre.  It's a ten-fold 

        13          difference.

        14              The difference in the shore property, 

        15          Cypress Island had a 5-acre parcel, Paradise 

        16          has a 10-acre parcel.

        17              The difference in price per acre is 31,100 

        18          for Cypress Island, $48,400 for Paradise.  And 

        19          the difference in density is ten-fold.

        20              So on the comparative basis, again, 

        21          that's -- that's why the appraisers had a 

        22          difference in -- in value on a per acre basis.

        23              I think the Game Commission talked about 

        24          the water quality issue.  If you take the state 

        25          and divide it in half, and from Orlando down on 



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         1          the east coast, the waters flow south.  And 

         2          certainly Lake Toho is, in fact, the headwaters 

         3          of the Everglades. 

         4              There's -- there's no two ways about that.  

         5          If you can't protect the quality of the water 

         6          in Lake Toho, then it seems -- makes one wonder 

         7          why we would spend billions of dollars of 

         8          protecting the lake -- the waters of the 

         9          Everglades in south Florida.

        10              Finally, one of the things that wasn't 

        11          mentioned is the economic benefit.  A friend of 

        12          mine, who's a bass fisherman, says rarely in 

        13          the nation on a Saturday morning does one of 

        14          the fishing shows not focus on Lake Toho as a 

        15          terrific bass fishing lake. 

        16              And that certainly provides for -- people 

        17          from all over the country travel to fish there, 

        18          because of the water quality and the fishing.  

        19          And those people, of course, use lodging, 

        20          restaurants, sports shops, and boat dealers.  

        21          And it provides millions of dollars to the 

        22          regional economy.

        23              I think spending 8.7 million on the 

        24          long-term conservation of this outstanding 

        25          water body, which provides significant dollars 



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         1          to a strong economic base and protection of the 

         2          Everglades --

         3              (Treasurer Nelson exited the room.)

         4              MR. CHELIUS:  -- seems like a good idea.

         5              In closing, I encourage you to have 

         6          confidence in the agencies and the people who 

         7          work for you in trying to protect what's best 

         8          for Florida, while being smart with the 

         9          taxpayers' dollars, and support the acquisition 

        10          of the protection of Lake Toho.

        11              GOVERNOR BUSH:  Thank you very much.

        12              Can I ask the Commissioner a question?

        13              You didn't really -- I -- I'm going to ask 

        14          the question I asked before. 

        15              Let's -- a hypothetical.

        16              MR. DUNNICK:  Uh-hum. 

        17              GOVERNOR BUSH:  Someone has a -- the owner 

        18          sells the property to a home builder --

        19              MR. DUNNICK:  Okay.

        20              GOVERNOR BUSH:  -- and you've got -- how 

        21          many units can be built on this?

        22              COMMISSIONER GALLAGHER:  A hundred and 

        23          twenty --

        24              MR. DUNNICK:  A hundred and eighty-nine I 

        25          believe.



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         1              COMMISSIONER GALLAGHER:  A hundred and 

         2          eighty-nine unit --

         3              MR. DUNNICK:  What it's vested for.

         4              SECRETARY HARRIS:  A hundred and 

         5          sixty-seven --

         6              COMMISSIONER GALLAGHER:  A hundred and 

         7          sixty-seven units, 25 cluster homes, and 

         8          77 boat slips?

         9              GOVERNOR BUSH:  So they've got the ability 

        10          to -- to --

        11              MR. DUNNICK:  A lot of --

        12              GOVERNOR BUSH:  -- how about pie density 

        13          development on an island.

        14              MR. DUNNICK:  Right.

        15              GOVERNOR BUSH:  That you can't get to, 

        16          unless you take a boat. 

        17              MR. DUNNICK:  Right.

        18              GOVERNOR BUSH:  Can't build a bridge.  

        19          There's a possibility that the lake is going to 

        20          be drained -- not a possibility, a probability, 

        21          already in existence.  They know that as a 

        22          fact. 

        23              What would you do -- what would you require 

        24          of that developer in advance in order to get to 

        25          secure not their vested rights, but their 



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         1          plat -- in order to get their building permits 

         2          and their platted property, to approve it? 

         3              What would you -- what would you require? 

         4              MR. DUNNICK:  Well, Governor --

         5              GOVERNOR BUSH:  Impact fees, what kind of 

         6          mitigation would you require?  What --

         7              MR. DUNNICK:  As far as mitigation, I -- 

         8          what -- what type of mitigation would you be 

         9          looking for?

        10              GOVERNOR BUSH:  Well, I'm just saying, 

        11          you know, in this -- if this -- every county is 

        12          a little bit different on how they go about 

        13          this.

        14              MR. DUNNICK:  Okay.

        15              GOVERNOR BUSH:  In Miami-Dade County, 

        16          someone came up with something like this, they 

        17          would hammer the developer to the point where 

        18          people would really have to think twice about 

        19          doing something --

        20              MR. DUNNICK:  Right.

        21              GOVERNOR BUSH:  -- of this kind of density.

        22              MR. DUNNICK:  Right.

        23              GOVERNOR BUSH:  They would -- they would 

        24          require impact fees and offsite mitigation --

        25              MR. DUNNICK:  Well, Governor -- now, we --



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         1              COMMISSIONER GALLAGHER:  Fire department --

         2              MR. DUNNICK:  -- we -- you know, they're -- 

         3              COMMISSIONER GALLAGHER:  -- police 

         4          coverage.

         5              MR. DUNNICK:  -- going to have base impact 

         6          fees.  They're -- they're going to have --

         7              COMMISSIONER GALLAGHER:  School.

         8              MR. DUNNICK:  -- all that --

         9              GOVERNOR BUSH:  Well, what would it be?

        10              MR. DUNNICK:  They will have that --

        11              GOVERNOR BUSH:  Give me a sense.  Give me a 

        12          sense of what it'd be.

        13              MR. DUNNICK:  Well, the transportation 

        14          impact fees per unit, they're looking at on a 

        15          house, $2,000, they're looking at 2500 for a 

        16          school --

        17              GOVERNOR BUSH:  Well, that's nothing.  In 

        18          other words, you -- you wouldn't treat this 

        19          differently than you would a --

        20              MR. DUNNICK:  They -- they would --

        21              GOVERNOR BUSH:  -- an expansion of 

        22          Celebration.  Well, that's probably not even 

        23          your deal.  I'm sorry.  But --

        24              MR. DUNNICK:  It is. 

        25              GOVERNOR BUSH:  Do you guys get to --



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         1              MR. DUNNICK:  As a matter of fact, Disney 

         2          finally built something in Osceola County --

         3              GOVERNOR BUSH:  There you go.

         4              MR. DUNNICK:  -- we get a little tax money.

         5              But -- but, Governor, I see what you're 

         6          saying. 

         7              But -- but as far as their transportation 

         8          element of how they're going to get people on 

         9          and off the island, they -- they've got these 

        10          hovercrafts at about the size of this room, 

        11          and --

        12              GOVERNOR BUSH:  I don't --

        13              MR. DUNNICK:  -- it's no problem.  They can 

        14          drive them right down the road.  So 

        15          transportation is not going to be an issue.

        16              GOVERNOR BUSH:  You're missing my --

        17              MR. DUNNICK:  -- get on and off the island.

        18              COMMISSIONER GALLAGHER:  How about -- how 

        19          about fire coverage and police coverage and 

        20          those kind of things?

        21              MR. DUNNICK:  I -- I would assume that 

        22          they -- we would make sure that they put their 

        23          own fire and services right on the island.  

        24          They would -- they would have to have their own 

        25          water system, they'd have to have --



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         1              GOVERNOR BUSH:  So we're --

         2              MR. DUNNICK:  -- water supply.  They would 

         3          have to -- 

         4              COMMISSIONER GALLAGHER:  Sewer?

         5              MR. DUNNICK:  -- come straight to the 

         6          county --

         7              COMMISSIONER GALLAGHER:  To -- sewer.

         8              MR. DUNNICK:  -- that they could meet the 

         9          basic needs of a community development.

        10              GOVERNOR BUSH:  Sewage? 

        11              MR. DUNNICK:  Now --

        12              GOVERNOR BUSH:  They have to have their own 

        13          sewage --

        14              MR. DUNNICK:  They -- they would --

        15              GOVERNOR BUSH:  -- controlled system?

        16              MR. DUNNICK:  That would be, of course --

        17              GOVERNOR BUSH:  -- I assume.

        18              MR. DUNNICK:  -- controlled by the State.  

        19          But we would ask -- we would require them -- 

        20          with that kind of density, Governor, they'd be 

        21          required to have a package plant, or the 

        22          ability to tie in to a system, which you can't 

        23          do out in the middle of a lake. 

        24              So they -- yes, they'd have to have a 

        25          package plant out there.  They would have to 



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         1          have a water facility.

         2              GOVERNOR BUSH:  Is there a -- is the 

         3          appraiser here? 

         4              DR. EGBERT:  Yes, sir.

         5              GOVERNOR BUSH:  Can he come forth here and 

         6          do battle for a second?

         7              MR. DUNNICK:  We would -- Governor, we -- 

         8          we would do whatever we could to protect the 

         9          county, because I know we --

        10              GOVERNOR BUSH:  The reason I'm asking 

        11          this is that --

        12              MR. DUNNICK:  -- we're going to have to 

        13          deal with it down the road.

        14              GOVERNOR BUSH:  The reason I'm asking this 

        15          is there's more to the cost of development than 

        16          land.

        17              MR. DUNNICK:  Absolutely.

        18              GOVERNOR BUSH:  And in these extraordinary 

        19          cases, counties do have more discretion -- just 

        20          to say, well, it's vested --

        21              COMMISSIONER GALLAGHER:  It ain't going 

        22          to --

        23              GOVERNOR BUSH:  -- and say, you know, it's 

        24          going to happen -- 

        25              MR. DUNNICK:  Right.



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         1              GOVERNOR BUSH:  I know there are a lot of 

         2          people that own private property in our state 

         3          that would wish it was that way.

         4              MR. DUNNICK:  Sure.

         5              COMMISSIONER GALLAGHER:  That's right.

         6              GOVERNOR BUSH:  But it isn't that way.  

         7          It's isn't that way.

         8              COMMISSIONER GALLAGHER:  Buy it.

         9              GOVERNOR BUSH:  And -- but -- again, my 

        10          only concern is valuation.  And I predicted 

        11          that we would be here last time we gathered on 

        12          this -- on this same lake.  And -- anyway.

        13              MR. CATLETT:  Governor, Cabinet, my name is 

        14          Frank Catlett.  I'm one of the --

        15              GOVERNOR BUSH:  Can I ask you a question? 

        16              MR. CATLETT:  Yes, sir.

        17              GOVERNOR BUSH:  What kind of home prices in 

        18          this theoretical development that we hope never 

        19          gets built, what would it -- what would it take 

        20          in order to have $100,000 per lot --

        21              MR. CATLETT:  The home prices --

        22              GOVERNOR BUSH:  -- grow --

        23              Let me finish.

        24              -- $100,000, undeveloped lots, in a place 

        25          that has huge infrastructure costs, because 



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         1          it's an island, and it'll have unique 

         2          environmental concerns that the County and the 

         3          State would impose even greater commitments to 

         4          infrastructure to protect the lake. 

         5              What kind of price would you have to pay 

         6          for a half acre -- not a half acre, probably a 

         7          3 acre lot development, which ain't that big of 

         8          a piece of property. 

         9              What kind of home sale price would you have 

        10          to have, and -- and is there a market for --

        11              Go ahead.  Answer that first, because 

        12          I'm --

        13              MR. CATLETT:  I'm glad you asked that 

        14          question, because within my report, I did 

        15          address the maximally productive issues related 

        16          to this island. 

        17              I did research the number of island sales, 

        18          of lot sales, and -- within that community.  

        19          Basically you've got almost $50,000 in lot 

        20          development costs in order to effectuate a sale 

        21          on here.

        22              COMMISSIONER GALLAGHER:  Exactly.

        23              MR. CATLETT:  And you're going to have -- 

        24          the average price was going to be around 

        25          $140,000 a lot. 



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         1              So in answer to your question, the home 

         2          prices would probably be in the neighborhood of 

         3          three hundred and fifty to -- to six hundred 

         4          thousand.  That's correct.

         5              GOVERNOR BUSH:  So -- I mean, I was -- I 

         6          was guessing a --

         7              COMMISSIONER GALLAGHER:  And they're not 

         8          going to --

         9              GOVERNOR BUSH:  -- half a million dollars.

        10              COMMISSIONER GALLAGHER:  -- go -- they're 

        11          not going to put those on a half acre.

        12              MR. CATLETT:  No, they're not.  These -- 

        13          these lots are basically 90 or 100 by 185 foot 

        14          lots, that's correct.  As --

        15              GOVERNOR BUSH:  So how are you going to 

        16          have a half a million dollar home on a -- it's 

        17          not zero lot line.  But this isn't -- I mean, 

        18          this looks more like -- I'm trying to think of 

        19          a development around here that everybody'd 

        20          appreciate.  But it's --

        21              MR. CATLETT:  Originally when -- 

        22              COMMISSIONER GALLAGHER:  Seaside.

        23              GOVERNOR BUSH:  More like --

        24              MR. CATLETT:  -- a previous developer had 

        25          this -- he had --



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         1              GOVERNOR BUSH:  Kendell.

         2              MR. CATLETT:  -- twenty-one reservations 

         3          within --

         4              (Treasurer Nelson entered the room.)

         5              MR. CATLETT:  -- a period of three weeks 

         6          when he initially tried to market this before a 

         7          DRI issue came up, and -- and -- and stopped 

         8          the project from going forward. 

         9              But he did have those reservations with 

        10          monies down.  And there was an expressed 

        11          interest --

        12              GOVERNOR BUSH:  These are like quarter 

        13          lots -- quarter acre lots, and you're going to 

        14          sell them -- you believe that there's a market 

        15          in -- in this part of the state for half a 

        16          million dollar homes? 

        17              MR. CATLETT:  Yes.  Because there are a 

        18          number of lots -- or -- or subdivisions within 

        19          Lake Toho where the lot prices have been at 

        20          this $140,000 level for lakefront lots. 

        21              And Harbor --

        22              GOVERNOR BUSH:  Lakefront.

        23              MR. CATLETT:  -- Oaks and Regal Oak Shores, 

        24          and those types of homes are already existing 

        25          on the lake. 



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         1              Having been an appraiser for 25 years, and 

         2          really concentrating in this area for, 

         3          let's say, the last ten years with just in the 

         4          last year or so, 1,000 acres has now been 

         5          taken -- is going to be developed, the former 

         6          Overoaks, the Overstreet Ranch on --

         7              GOVERNOR BUSH:  Oh, yeah.

         8              MR. CATLETT:  -- Pleasant Hill is now 

         9          approved, I believe, for two golf courses and 

        10          890 units down there. 

        11              The Yates property on 17/92, which is about 

        12          400 acres, more or less, is now slated for 

        13          development with multifamily town home 

        14          developments. 

        15              Har--

        16              GOVERNOR BUSH:  Commissioner, what's going 

        17          on with all that stuff up there?

        18              MR. DUNNICK:  Well, Governor, I'm glad you 

        19          asked that question.

        20              GOVERNOR BUSH:  This -- because this -- 

        21          this ain't before you. 

        22              MR. DUNNICK:  No.

        23              GOVERNOR BUSH:  This is in front of you.

        24              MR. DUNNICK:  But -- but the Yates 

        25          property -- they -- here's what's happening, 



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         1          Governor.

         2              The Yates property.  We had a deal to buy 

         3          that land, and the State got into the issue of 

         4          sovereign land, who owns what, how many acres 

         5          is who. 

         6              We just had -- we as the County Commission 

         7          asked the State, how about just quitclaiming 

         8          that once we get a contract on it so that we 

         9          can justify the acreage price.  That was never 

        10          done. 

        11              We couldn't eve-- we couldn't work with the 

        12          State to get it done, Governor, and so now it's 

        13          going to be developed.

        14              We had a beautiful opportunity to take the 

        15          full 500 acres off the -- off the real estate 

        16          market.  It's right there on the edge of 

        17          Kissimmee.  It's right on the way to the 

        18          Green Barn where -- you know, you've been out 

        19          to the green barn before.  That's where the 

        20          other piece is.  And it's right on the lake.

        21              GOVERNOR BUSH:  That's an incredible piece 

        22          of property.

        23              MR. DUNNICK:  Yeah.  And, you know, trying 

        24          to --

        25              GOVERNOR BUSH:  You -- you don't have a 



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         1          right -- don't you have the right -- these are 

         2          un-- these are properties that don't have 

         3          development rights attached to them, do they? 

         4              They come to you to get it --

         5              MR. DUNNICK:  Absolutely.

         6              GOVERNOR BUSH:  So --

         7              MR. DUNNICK:  But we have a comprehensive 

         8          land use plan where you can come in and ask for 

         9          certain things. 

        10              But one thing that we did do, when we 

        11          dealt -- you know Mr. Overstreet, Jenn and 

        12          JoAnn, when we dealt with them, you know, we 

        13          got the densities on there till we -- we left 

        14          half the ranch open.  I mean, to keep the 

        15          habitat and the corridors and stuff like that, 

        16          we kept it open.

        17              We basically put all the houses in a little 

        18          block, and we said, leave the rest alone, and 

        19          we're not touching the lakefront.  So we got 

        20          those concessions, Governor.  And --

        21              GOVERNOR BUSH:  Good.

        22              MR. DUNNICK:  -- and -- you know, and I 

        23          think that's a good thing on our part.

        24              MR. CATLETT:  Additionally, part of the 

        25          Partin ranch has been sold to the Seminoles, 



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         1          and other parts of it are optioned.

         2              So there's a considerable amount of 

         3          development that's coming in and around the 

         4          lake that's basically surrounding this.

         5              This property is much closer to linkages 

         6          for transportation than was Mackinson or 

         7          Cypress, where you had to go down 17/92, 

         8          Pleasant Hill Road, you had about a 12-mile 

         9          trek where you only got about 3 miles to this 

        10          particular property.

        11              Again, we talked about the vesting issue, 

        12          about what can be built on here.  Considerable 

        13          more development can be built on this piece of 

        14          property.

        15              I looked at not only island sales that 

        16          ranged anywhere from 38,000 to $119,000 an 

        17          acre, but then also looked at waterfront sales 

        18          within the Orlando area.  And those sales were 

        19          in the forty to eight thousand dollar an acre 

        20          range. 

        21              My conclusion of value was $55,000.  Also 

        22          did a development approach based upon -- I 

        23          called the previous fellow that had an option 

        24          to develop this property, went over his -- all 

        25          of his development costs with him.  And -- 



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         1          effectively to show that the -- I had a -- an 

         2          indication of well over 6 million dollars from 

         3          a development perspective that it would be 

         4          economically feasible to --

         5              GOVERNOR BUSH:  Why didn't he buy it? 

         6              MR. CATLETT:  He had an option to buy it -- 

         7          or actually he had a -- a contract price was 

         8          four million one twenty-five around 1995, got 

         9          up to four-and-a-half million dollars. 

        10              What had happened was an issue was raised 

        11          about a DRI -- and this is because of a port 

        12          operation where there were going to be 

        13          manatees. 

        14              Well, there's obviously not any manatees in 

        15          Lake Toho.  It was an oversight. 

        16              But he had had his funding already with 

        17          Citibank in New York with foreign investors, 

        18          and they didn't want to wait the two years that 

        19          it took to resolve that issue, so his sources 

        20          of funding had left.

        21              GOVERNOR BUSH:  Okay. 

        22              Any other -- any questions?

        23              COMMISSIONER CRAWFORD:  I guess -- I 

        24          just -- in your opinion, if we didn't buy this 

        25          property, would this -- would this 



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         1          Paradise Island be developed?

         2              MR. CATLETT:  I believe that's true.  I 

         3          have had -- even as an appraiser -- I'm not in 

         4          a brokerage capacity -- I've had people call 

         5          me, because they know that I've appraised this 

         6          particular piece of property, that have 

         7          interest in the property.

         8              It's like having twins, and then all of a 

         9          sudden you separate one at birth, and you don't 

        10          get the other one, you know?  What's going to 

        11          happen to you with the -- the one that you 

        12          don't take? 

        13              And that -- you know, you've got Cypress 

        14          now, and you --

        15              GOVERNOR BUSH:  I'm not sure it's quite 

        16          like that.  But --

        17              MR. CATLETT:  Well --

        18              COMMISSIONER CRAWFORD:  Well, it may -- it 

        19          may make the one that didn't -- you know, 

        20          that's -- that's available, more valuable.

        21              GOVERNOR BUSH:  I guess so.

        22              SECRETARY HARRIS:  Whatever.

        23              COMMISSIONER CRAWFORD:  I wouldn't want -- 

        24          I don't want to go the twin -- that's the deal  

        25          though.



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         1              MR. CATLETT:  Is that it?

         2              GOVERNOR BUSH:  Any other questions?

         3              COMMISSIONER GALLAGHER:  Well, you know, 

         4          I think it's -- it's real important that -- 

         5          that we look at this -- this island, and that 

         6          we do what we can to preserve it.

         7              But I have a real hard time with this value 

         8          on it.  I know what appraised values are, and 

         9          we're supposed to take appraised values, 

        10          et cetera.

        11              But when we bought an island for $35,938 

        12          per upland acre, and the only reason it was 

        13          that was because maybe they didn't -- or -- 

        14          they didn't vest their rights, and this owner 

        15          vested their rights. 

        16              So, therefore, we should pay 55,000, was 

        17          it? 

        18              MR. CATLETT:  Roughly, yes.

        19              COMMISSIONER GALLAGHER:  Per acre?

        20              I'm real uncomfortable with that.  I'm not 

        21          sure what to do about it, but I'm uncomfortable 

        22          with it. 

        23              And my temptation is to -- is to come up 

        24          with an offer that is somewhere between the two 

        25          that -- that I could be more comfortable with.



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         1              And if I was -- I look at buying these 

         2          things as much as I do for the State as if it 

         3          was me.  And I just would feel like I wasn't 

         4          doing the right thing if I paid $55,000 an acre 

         5          for something that I don't believe is -- is 

         6          that easy to develop.

         7              MR. CATLETT:  That may be your prerogative.  

         8          But I don't think it's in keeping with the 

         9          concept of market value.  You know, the willing 

        10          buyer and seller concept, both being 

        11          knowledgeable. 

        12              And -- and that's where I think you're -- 

        13          you're going off into something that's more to 

        14          an -- a liquidation value, something that's 

        15          different from market value, which as 

        16          appraisers, we're to seek out on all these 

        17          appraisals that we do for the State.

        18              GOVERNOR BUSH:  With all due respect, 

        19          I think the Commissioner's point is that it 

        20          would be highly unlikely that a developer that 

        21          wanted to get the best valuation for this land 

        22          would have this kind of density.

        23              And I don't know how many lakes have 

        24          islands on them where you're getting two units 

        25          per -- per acre.  But that's a -- that's a -- 



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         1          that's a suburban kind of development. 

         2              And given the infrastructure costs and the 

         3          mitigation costs that would be likely -- and I 

         4          would hope that the Osceola County Commission 

         5          would require -- that kind of density would --  

         6          would -- I just think it's out of step.  It may 

         7          be that that's what's vested, and so, 

         8          therefore, you're appraising it based on that.  

         9          And by -- in your profession, that's the 

        10          accurate way of doing it. 

        11              But the reality I think is -- is a little 

        12          bit different.  And why is it that every-- it 

        13          just seems -- maybe I'm -- haven't been at 

        14          these meetings when -- when it's worked out the 

        15          other way, that we always are the ones that end 

        16          up paying the price. 

        17              I mean, it is -- this is deja vu all over 

        18          again.  Had this same conversa--

        19              I think you were here, weren't you? 

        20              MR. CATLETT:  Well, I indulge you to --

        21              GOVERNOR BUSH:  You've done a much better 

        22          job, by the way, today than --

        23              MR. CATLETT:  Well, no, it was someone 

        24          else.  And I indulged you for my --

        25              GOVERNOR BUSH:  Well, that guy was -- 



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         1              MR. CATLETT:  -- my son's signature last 

         2          time.

         3              GOVERNOR BUSH:  You've made a much better 

         4          argument about valuation than the last time 

         5          we've gone through this.

         6              But it's -- it's very frustrating.

         7              And -- anyway.  I know I'm in a minority on 

         8          this --

         9              COMMISSIONER CRAWFORD:  Well, I don't -- I 

        10          don't know if -- you're definitely not in a 

        11          minority in that concern, because it is an 

        12          ongoing problem -- 

        13              GOVERNOR BUSH:  Well, it was six to one 

        14          last time I --

        15              COMMISSIONER CRAWFORD:  Well --

        16              GOVERNOR BUSH:  -- brought up the subject.

        17              COMMISSIONER CRAWFORD:  -- about the -- 

        18          about the concern about how much we pay, 

        19          I think we're all concerned about that. 

        20              And there -- there's probably just some 

        21          structural built-in disadvantages that the 

        22          State has that, you know, we're sitting here, 

        23          and we're obviously, you know, they -- people 

        24          know how much money we've got, they know what 

        25          we want to buy, and they know what we want to 



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         1          pay for it. 

         2              And, you know, I don't know how to change 

         3          that without changing, you know, Sunshine and 

         4          all that.

         5              But having said that, I -- I -- that's why 

         6          I hadn't --

         7              GOVERNOR BUSH:  Warren Bankman's in --

         8              COMMISSIONER CRAWFORD:  -- changed it --

         9              GOVERNOR BUSH:  -- the crowd.  Don't -- 

        10          don't say that.

        11              COMMISSIONER CRAWFORD:  I'm not advocating 

        12          the chamber.

        13              But I think what the Governor's saying is 

        14          that if we're -- if we're paying a -- a 

        15          development price for a piece of property, he 

        16          has a lot of expertise about, well, is it 

        17          really -- is it really developable. 

        18              And so is -- is -- is this a price that 

        19          a -- a developer would pay.  And -- and I think 

        20          all of those -- those concerns are -- are very 

        21          valid.

        22              I -- I know some of the owners of this -- 

        23          this property, and it's my understanding, and I 

        24          don't want to put words in anybody's mouth, but 

        25          that -- that we're very willing to sell it 



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         1          at -- at this price, but they're not willing to 

         2          sell it at anything less.

         3              Now, my interpretation of that is that -- 

         4          what's driving that is the fact that it -- this 

         5          is valuable, and it -- and it can be developed, 

         6          and probably will be developed. 

         7              And so there's another price waiting out 

         8          there that the owners probably could get.  

         9          Unlike some property we buy that I think 

        10          we're -- we're the -- the only buyers, this one 

        11          actually I think, there are developers that 

        12          would buy it.

        13              So it -- it -- to me, it adds a little bit 

        14          of comfort to the -- to the -- the price that 

        15          we would be paying for it.

        16              I used to represent this area when I was in 

        17          the State House.  And it's a beautiful area, 

        18          and this lake is one of the most wonderful 

        19          lakes around.  And it is a part of the whole 

        20          chain. 

        21              And I think that -- while I do share the 

        22          Governor's concern about the price, I have 

        23          confidence that -- that -- that this is the 

        24          only price we can get, and if we don't pay it, 

        25          a developer's going to pay it, and we'll have 



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         1          a -- have a -- a development there, and not 

         2          know what we all want.  And -- and that's 

         3          just -- just how I feel about it.

         4              COMMISSIONER GALLAGHER:  Let me just --

         5              GOVERNOR BUSH:  Thank you.

         6              COMMISSIONER GALLAGHER:  -- if -- put it in 

         7          perspective here. 

         8              We have a -- if, in fact, we pay the 

         9          35,938 per upland acre that we paid for 

        10          Cypress, we would be paying three million three 

        11          fifty-one two hundred for this 93.25 acres, as 

        12          opposed to the four million seven forty-five 

        13          one twenty-six that is, I guess, sitting in the 

        14          option.

        15              Somewhere -- in my opinion, somewhere 

        16          between those two numbers is what we ought to 

        17          be offering, and -- and what it's worth.

        18              SECRETARY HARRIS:  Could --

        19              COMMISSIONER GALLAGHER:  -- to the State.

        20              GOVERNOR BUSH:  Katherine.

        21              SECRETARY HARRIS:  Yes. 

        22              I wanted to ask the appraiser again, if you 

        23          wouldn't mind coming back to the microphone. 

        24              Somewhere -- what Commissioner Gallagher is 

        25          saying is somewhere between the two.  The 



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         1          excuse, of course, the previous island was that 

         2          it wasn't zoned for such intense development.

         3              As it's platted, or as it's approved, and 

         4          as you appraised it for 167 homes on 88 acres, 

         5          and in addition to that, 22 small apartments, 

         6          and two marinas, do you remember how many 

         7          lakefront lots actually existed?

         8              MR. CATLETT:  I believe there were -- I'm 

         9          not -- I think 64 of those were -- but I'm -- 

        10          I'd have to look to be honest.

        11              SECRETARY HARRIS:  It's just interesting, 

        12          because to -- to actually come up with the 

        13          prices that you're quoting -- quoting anywhere 

        14          from three to six hundred thousand, you 

        15          certainly can't get that on a third of a lot.  

        16          I just don't really understand. 

        17              I mean, understanding that Mackinson Island 

        18          wasn't zoned for such intense development, I 

        19          think for you to get the highest and best use, 

        20          and the highest values out of these lots, 

        21          you're going to see much less intense 

        22          development on this island, which again I think 

        23          is going to lower the price at -- at -- at the 

        24          end of the day. 

        25              I mean, I -- I think that 



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         1          Commissioner Gallagher's right, somewhere 

         2          between those two prices, because you're not 

         3          going to have that same intensity here if you 

         4          want to get the values that -- that you're 

         5          quoting I think.

         6              MR. CATLETT:  Basically the way the plan 

         7          was designed, that there were 64 lakefront 

         8          lots, there were nine lake view and lagoon 

         9          lots, and then they had a -- an intricate canal 

        10          system, where you had 94.  And all of these 

        11          would have had access to --

        12              COMMISSIONER GALLAGHER:  Yeah.  But 

        13          they're --

        14              MR. CATLETT:  -- the lake -- 

        15              COMMISSIONER GALLAGHER:  -- they're --

        16              SECRETARY HARRIS:  That's --

        17              COMMISSIONER GALLAGHER:  -- going to dredge 

        18          this island? 

        19              SECRETARY HARRIS:  That's infrastructure 

        20          costs, too -- 

        21              COMMISSIONER GALLAGHER:  Yeah.  Right.

        22              SECRETARY HARRIS:  -- and, again, that's on 

        23          top of what --

        24              GOVERNOR BUSH:  Commissioner, you going --

        25              SECRETARY HARRIS:  -- you've already talked 



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         1          about --

         2              GOVERNOR BUSH:  -- to let them do that? 

         3              SECRETARY HARRIS:  -- on top of -- 

         4              COMMISSIONER GALLAGHER:  No way.

         5              SECRETARY HARRIS:  -- package plants, road 

         6          structure -- infrastructure, to have lagoons 

         7          and dredging, and all those kinds of things to 

         8          justify those kind of lot prices, I mean, 

         9          you're looking at lots really high.

        10              MR. CATLETT:  But I think that --

        11              SECRETARY HARRIS:  And that's not been 

        12          approved, has it, lagoons, dredging?

        13              COMMISSIONER GALLAGHER:  You actually 

        14          valued this on -- on -- on the proposal that 

        15          there would be canals? 

        16              MR. CATLETT:  No.  I -- all I did was point 

        17          out a previous development plan within my 

        18          appraisal report. 

        19              Mine was based on the comparison of island 

        20          sales to the subject property.  And using those 

        21          island sales is the basis of my evaluation, not 

        22          the development plan that was in here. 

        23              All I did was point out the economic 

        24          feasibility of development.  That -- but my 

        25          appraisal's not predicated upon them building 



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         1          exactly, because they'll come in -- they could 

         2          change the plan -- the next developer can 

         3          change his plan. 

         4              He may decide to put half or two-thirds as 

         5          many lots, but then have higher priced lots -- 

         6              COMMISSIONER GALLAGHER:  Right.

         7              MR. CATLETT:  -- I don't know.

         8              COMMISSIONER GALLAGHER:  I guarantee you, 

         9          that's where they're --

        10              SECRETARY HARRIS:  I'm --

        11              COMMISSIONER GALLAGHER:  -- headed.

        12              SECRETARY HARRIS:  -- I'm just really 

        13          confused.  I mean, I haven't seen your specific 

        14          appraisal, but to justify this price at -- at 

        15          your appraisal. 

        16              And -- and did -- if you valued it on 

        17          lagoons -- I don't understand how you're coming 

        18          up with that price with this kind of intensity 

        19          of land use, not to mention all the 

        20          infrastructure costs that are going to be 

        21          involved.

        22              MR. CATLETT:  Again, this gets back to 

        23          the -- to the seven island sales that were 

        24          anywhere between 38,000 and $119,000 an acre.  

        25          I'm at the lower end of that --



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         1              GOVERNOR BUSH:  Were they at --

         2              MR. CATLETT:  -- value rating -- 

         3              GOVERNOR BUSH:  -- the same size? 

         4              MR. CATLETT:  Some were larger, some were 

         5          smaller, yeah, depending on the size, yes. 

         6              And that's the basis is looking at those 

         7          island sales, ranking those sales, and how -- 

         8          whether they were superior or inferior. 

         9              Some of these only could be accessed by 

        10          boat, similar to the subject property.

        11              COMMISSIONER GALLAGHER:  Who are the buyers 

        12          of these islands? 

        13              MR. CATLETT:  Some of them were private 

        14          sector sales, and some were government sector 

        15          sales.

        16              GOVERNOR BUSH:  Oh.

        17              COMMISSIONER GALLAGHER:  The government was 

        18          always higher though, wasn't it? 

        19              MR. CATLETT:  No.  Interestingly -- 

        20          interestingly enough, the government was on the 

        21          lower end of the scale.

        22              COMMISSIONER CRAWFORD:  There you go.  

        23          All right.

        24              COMMISSIONER GALLAGHER:  Well, we'll keep 

        25          it that way.



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         1              GOVERNOR BUSH:  It's just in this case, 

         2          it's not -- 

         3              ATTORNEY GENERAL BUTTERWORTH:  Governor, if 

         4          I --

         5              GOVERNOR BUSH:  Yes.  Bob.

         6              ATTORNEY GENERAL BUTTERWORTH:  Is a -- is 

         7          the owner of the property here, or a 

         8          representative of the property? 

         9              MR. CHELIUS:  Bill?  

        10              GOVERNOR BUSH:  Welcome.

        11              MS. PARRY:  Thanks.

        12              GOVERNOR BUSH:  It must be kind of weird 

        13          sitting here listening to us talk about your 

        14          property.

        15              ATTORNEY GENERAL BUTTERWORTH:  Ask a 

        16          question?

        17              GOVERNOR BUSH:  Yes, please.

        18              ATTORNEY GENERAL BUTTERWORTH:  If you'd 

        19          please identify yourself, just for the record, 

        20          sir.

        21              MR. WARD:  Good morning.

        22              I am Bill Ward from Lakeland.  And my 

        23          partner here is Mrs. Margaret Parry from 

        24          Lakeland.

        25              GOVERNOR BUSH:  Welcome.



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         1              ATTORNEY GENERAL BUTTERWORTH:  Do both of 

         2          you own the entire Paradise Island? 

         3              MR. WARD:  Sir?

         4              ATTORNEY GENERAL BUTTERWORTH:  Do you own 

         5          the entire Paradise Island? 

         6              MR. WARD:  No, sir.  We represent a 

         7          partnership.

         8              ATTORNEY GENERAL BUTTERWORTH:  Okay. 

         9              MR. WARD:  Mrs. Parry and I own very close 

        10          to the majority.  We're 47 percent to be exact 

        11          between us.

        12              ATTORNEY GENERAL BUTTERWORTH:  Okay.

        13              MR. WARD:  And I have children involved, so 

        14          that would also make me a majority owner, I do 

        15          believe.

        16              But we do have other partners besides 

        17          children. 

        18              And may I first say, good morning to 

        19          Ms. Katherine, and gentlemen, and Governor.

        20              We're very glad to be here, and to answer 

        21          any questions that you might have of me. 

        22              Let me point out one thing that -- that you 

        23          all brought up in your discussion.  Mr. Dunnick 

        24          may not have realized. 

        25              But in addition to the P-U-D, we also have 



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         1          the land -- I'm not sure of the legal language 

         2          on these things. 

         3              But there is also attached to that the 

         4          initial phase.  And it's already spelled out, 

         5          all of the things that --

         6              GOVERNOR BUSH:  Platted?

         7              MR. WARD:  -- you questioned -- 

         8              GOVERNOR BUSH:  Your property's platted? 

         9              MR. WARD:  -- as to what has a plat.  

        10          Yes, sir.  That has to be done.  And that's all 

        11          listed, and it's public property, and -- public 

        12          knowledge.  And -- and we can adhere to that 

        13          without any problem at all.

        14              ATTORNEY GENERAL BUTTERWORTH:  How many 

        15          owners are there of -- of this property? 

        16              MR. WARD:  Mrs. Parry; myself; I have four 

        17          children, and they each have 5 percent 

        18          ownership; there is a daughter of one of the 

        19          original owners has 17 percent; and a doctor 

        20          who now lives in Hawaii, is an older gentleman, 

        21          and would like to see something out of this 

        22          sooner or later, he has 16 percent. 

        23              That totals the 100 percent.  But --

        24              ATTORNEY GENERAL BUTTERWORTH:  How long 

        25          have you had ownership? 



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         1              MR. WARD:  We have had this property since 

         2          1957.  That's --

         3              ATTORNEY GENERAL BUTTERWORTH:  So just --

         4              MR. WARD:  -- 43 years.  This is not -- 

         5          we're not a new kid on the block.  And -- and 

         6          we have not bought this two years ago, and 

         7          tried to sell it to the government -- 

         8          government. 

         9              So this has come about because of Trust for 

        10          Public Land.  We have had several options, 

        11          several contracts on the property, at much more 

        12          money than what we're going to get from Trust 

        13          for Public Lands. 

        14              And, therefore, we feel that it's 

        15          actually --

        16              GOVERNOR BUSH:  Why would you sell it for 

        17          less? 

        18              MR. WARD:  Sir?

        19              GOVERNOR BUSH:  Why would you sell it for 

        20          less? 

        21              MR. WARD:  Because we have a contract with 

        22          TPL, and we agreed to go with the appraisals. 

        23              We had one appraisal that was 5.2 that we 

        24          had done on our own with Trust for 

        25          Public Lands.  And you all had two appraisals, 



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         1          and I think one of them was five, and one of 

         2          them was five one three, or something like 

         3          that.

         4              COMMISSIONER GALLAGHER:  Right.

         5              MR. WARD:  And so we have a contract with 

         6          the Trust -- Trust for Public Lands, which we 

         7          will live with until someone says it's over 

         8          with.  And then we'll go back to the private 

         9          sector. 

        10              But we feel actually, in spite of taking a 

        11          little less than what I would like, we feel 

        12          that this property belongs to the people in the 

        13          long run. 

        14              If they're going to develop Makinson Island 

        15          or Cypress Island as a park, as part of the 

        16          public domain, we feel that this would tie 

        17          right in with it, and belongs there. 

        18              The question has also been raised about 

        19          traffic back and forth if they draw down the 

        20          lake. 

        21              Most assuredly, Mr. Gallagher, this is a 

        22          litigious society we're in, and I'm afraid that 

        23          whether we had a caveat in there or not saying, 

        24          you're going to have a lake drawdown every 

        25          eight or ten years, I suspect 150 people would 



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         1          probably file a separate lawsuit. 

         2              And how far it would get, I don't know.  

         3          I'm not an attorney --

         4              GOVERNOR BUSH:  They'll probably sue --

         5              MR. WARD:  -- and Mr. Butterworth to --

         6              GOVERNOR BUSH:  -- because they're south of 

         7          the Orlando International Airport runway. 

         8              You know, I mean, that's -- it's just --  

         9              COMMISSIONER GALLAGHER:  And it's noisy.

        10              GOVERNOR BUSH:  The question is whether 

        11          it's a legitimate lawsuit.  And I just --

        12              MR. WARD:  Well, I'm not -- not trying to 

        13          get argumentative, sir.

        14              At any rate --

        15              GOVERNOR BUSH:  I only play a lawyer --

        16              MR. WARD:  -- I'll be glad -- 

        17              GOVERNOR BUSH:  -- for purposes of my --

        18              MR. WARD:  -- to answer any other questions 

        19          that you might have --

        20              GOVERNOR BUSH:  -- acting --

        21              MR. WARD:  -- sir.

        22              GOVERNOR BUSH:  -- job.  So I don't know.

        23              Any other questions? 

        24              ATTORNEY GENERAL BUTTERWORTH:  I move the 

        25          item, Governor.



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         1              GOVERNOR BUSH:  There's a motion.

         2              COMPTROLLER MILLIGAN:  Second.

         3              GOVERNOR BUSH:  Second.

         4              All in favor, say --

         5              Excuse me?  Go ahead.

         6              COMMISSIONER GALLAGHER:  I'll -- I was 

         7          going to have a substitute.  I'm going to -- 

         8          let's see how this one goes first.

         9              GOVERNOR BUSH:  Well, if it passes, then --

        10              All in favor, say aye.

        11              THE CABINET:  Aye.

        12              GOVERNOR BUSH:  All opposed?

        13              No.

        14              It passes.

        15              That's it.

        16              Thank you very much.

        17              MR. DUNNICK:  Thank you.

        18              MR. WARD:  Thank you, sir. 

        19              MS. PARRY:  Could I say one thing?

        20              I'm Margaret Parry. 

        21              And I'd like to say:  I, like you, who are 

        22          very concerned --

        23              GOVERNOR BUSH:  You've got it already.  

        24          You're done.

        25              MS. PARRY:  No, no --



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         1              GOVERNOR BUSH:  You've got your sale.

         2              MS. PARRY:  -- but I'd like to say 

         3          something.

         4              I'm very conservative fiscally.  And I'm -- 

         5          and I understand your concern.  I'm very 

         6          pleased that the people of Florida will be able 

         7          to enjoy this.

         8              GOVERNOR BUSH:  Very good.

         9              MS. PARRY:  It's great that all -- all the 

        10          kids will be able to enjoy it.

        11              GOVERNOR BUSH:  Thank y'all very much for 

        12          coming.

        13              You won.

        14              It was victory.

        15              MR. STRUHS:  Governor and members of the 

        16          Cabinet, the --

        17              GOVERNOR BUSH:  Could I -- just before the 

        18          Commissioner leaves, we have a Growth 

        19          Management Study Commission that is underway. 

        20              And one of the things that I want to make 

        21          sure that we do is that if we're obligated to 

        22          begin -- to -- to start buying land because 

        23          values are growing, it seems to me that the 

        24          counties need to take their responsibility 

        25          seriously as it relates to the --



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         1              COMMISSIONER GALLAGHER:  Densities.

         2              GOVERNOR BUSH:  -- granting of development 

         3          rights and densities. 

         4              And I'm going to keep voting no on this 

         5          until we change how we do things.  Not because 

         6          I don't think that was a valuable piece of 

         7          property.  But we're bailing out counties not 

         8          having the courage to do what's right as it 

         9          relates to growth management.

        10              I appreciate the fact that y'all are -- you 

        11          seem to have the right attitude about this -- 

        12              COMMISSIONER GALLAGHER:  Somebody --

        13              GOVERNOR BUSH:  -- but somehow we're going 

        14          to have to change the -- the thinking about 

        15          this, or you're going to pay the consequences, 

        16          because if -- if -- if -- if the land 

        17          management process needs more money for 

        18          management, which it does, and we're buying 

        19          everything under the sun at very high prices, 

        20          we're not going to have money to manage the 

        21          properties.

        22              And -- as you can tell, I'm a little upset 

        23          about this.

        24              But it's just --

        25              MR. DUNNICK:  And, Governor, you know, you 



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         1          and I sing off the same sheet of music often, 

         2          you know, especially some of the prices that 

         3          have been paid for land that did not meet the 

         4          criteria, it was a buy-out of somebody in 

         5          trouble, or so on and so forth. 

         6              But there again, this is --

         7              GOVERNOR BUSH:  I just think maybe we ought 

         8          to get the counties --

         9              MR. DUNNICK:  This is -- absolutely.

        10              GOVERNOR BUSH:  -- as partners in this.

        11              MR. WARD:  Absolutely.

        12              GOVERNOR BUSH:  And then we'll get the -- 

        13          we'll see the prices drop.  I guarantee you.

        14              MR. DUNNICK:  You know what, I'll 

        15          guarantee, the counties are willing to step up 

        16          to the plate, as Osceola County has done on 

        17          lots of issues that basically were out of our 

        18          control.

        19              GOVERNOR BUSH:  Well, we're going to be 

        20          back at you --

        21              MR. DUNNICK:  Well, Governor, you're right 

        22          on track, and -- and we're ready to reach out 

        23          and be partners with you.

        24              Thank you.

        25              GOVERNOR BUSH:  Thank you.



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         1              MR. DUNNICK:  But you and I --

         2              GOVERNOR BUSH:  Thanks for coming up.

         3              MR. DUNNICK:  -- you and I have been dealt 

         4          a lot of cards that were dealt out 10, 15 years 

         5          ago.  And you and I are doing the best we can.

         6              And, Cabinet, I sure appreciate everything 

         7          you've done.

         8              GOVERNOR BUSH:  Thanks for being here.

         9              MR. DUNNICK:  Thank you.

        10              COMMISSIONER CRAWFORD:  And, Governor, I  

        11          want to congratulate the young students that 

        12          came up today.  They did a great --

        13              GOVERNOR BUSH:  Absolutely.

        14              COMMISSIONER CRAWFORD:  -- job.  So we -- 

        15          we appreciate that.

        16              MR. STRUHS:  On that --

        17              GOVERNOR BUSH:  Thank you for coming.

        18              MR. STRUHS:  -- point --

        19              GOVERNOR BUSH:  In fact, that was the first 

        20          time I think we've had -- since I've been 

        21          Governor -- young people come and talk about -- 

        22          talk about a -- the purchase of the land. 

        23              And your -- your case was very compelling.  

        24          Very articulate, and I was the only guy that 

        25          had the courage to vote no, you notice.



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         1              COMMISSIONER GALLAGHER:  Go Seahawks.

         2              ATTORNEY GENERAL BUTTERWORTH:  The ability 

         3          to get the children of our state?

         4              MR. STRUHS:  Governor, this is an unusual 

         5          request.  But since you've raised the issue, 

         6          the students would like a quick photograph --

         7              GOVERNOR BUSH:  Yeah.  Why not? 

         8              COMMISSIONER CRAWFORD:  Yeah.

         9              GOVERNOR BUSH:  Come on.  We have -- do we 

        10          have a camera? 

        11              MR. STRUHS:  Well, I think their -- their 

        12          chaperone has a camera.

        13              GOVERNOR BUSH:  Okay.

        14              COMMISSIONER CRAWFORD:  Okay.

        15              GOVERNOR BUSH:  That's cool.

        16              (Discussion off the record.)

        17              GOVERNOR BUSH:  Secretary Struhs. 

        18              MR. STRUHS:  Item Number 6, I was seeking  

        19          approval for acceptance of an assignment of an 

        20          option agreement to acquire 53 acres in the 

        21          Perdido Pitcher Plant Prairie CARL Project.

        22              ATTORNEY GENERAL BUTTERWORTH:  Motion.

        23              GOVERNOR BUSH:  Is there a second? 

        24              COMMISSIONER CRAWFORD:  Second.

        25              GOVERNOR BUSH:  Moved and seconded.



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         1              Without objection, it's approved.

         2              MR. STRUHS:  I'll point out that we're 

         3          pleased that the acquisition price on that 

         4          parcel is 9-- 92 percent of the appraised 

         5          value.

         6              ATTORNEY GENERAL BUTTERWORTH:  That'll make  

         7          up for the last one which was overpriced.

         8              COMMISSIONER GALLAGHER:  Yeah, it was -- it 

         9          was --

        10              GOVERNOR BUSH:  Ninety-two percent, too.

        11              COMMISSIONER CRAWFORD:  Okay.

        12              COMMISSIONER GALLAGHER:  -- 92 percent, 

        13          too.  But it -- it was too high.

        14              MR. STRUHS:  Item Number 7 is a value for 

        15          value exchange.  It's an exchange agreement to 

        16          acquire 77.4 acres within the Florida Springs 

        17          Coastal Greenway CARL project from Citrus 

        18          Mining and Timber, in exchange for three 

        19          parcels adjacent to the Cross Florida Barge 

        20          Canal. 

        21              Anna Marie Hartman from our program is 

        22          available if there are any questions on this 

        23          item.

        24              COMMISSIONER GALLAGHER:  Move Item 7.

        25              ATTORNEY GENERAL BUTTERWORTH:  Second.



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                     TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND    103
                                 October 24, 2000
         1              COMMISSIONER CRAWFORD:  Second.

         2              GOVERNOR BUSH:  Moved and seconded.

         3              Without objection, it's approved.

         4              MR. STRUHS:  Item Number 8, we're seeking 

         5          approval of a mediated final judgment and 

         6          settlement of a lawsuit. 

         7              I'd be happy to describe this, and also 

         8          Attorney Bob Scanlan from the 

         9          Attorney General's office is available.

        10              COMMISSIONER GALLAGHER:  Motion on approval 

        11          with interest.

        12              GOVERNOR BUSH:  Moved and seconded.

        13              Without objection, it's approved.

        14              COMMISSIONER GALLAGHER:  Motion to defer 9.

        15              ATTORNEY GENERAL BUTTERWORTH:  Second.

        16              GOVERNOR BUSH:  Motion to defer and a 

        17          second.

        18              Without objection, it's approved.

        19              Item 10.

        20              MR. STRUHS:  Item 10, recommending 

        21          approval, subject to special approval 

        22          conditions and a lease condition payment of 

        23          $5,222. 

        24              You may recall this item was before you 

        25          back on October 10.  The applicant and the 



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                     TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND    104
                                 October 24, 2000
         1          Save the Manatee Club went back and worked out 

         2          some additional terms. 

         3              And Mr. Pat Rose is available here to 

         4          answer any questions.  And, in fact, I think 

         5          wanted to speak very briefly on one issue as it 

         6          relates to enforcement.

         7              Other than that though, the parties have 

         8          reached an agreement.

         9              COMMISSIONER GALLAGHER:  Motion to 

        10          approve -- 

        11              GOVERNOR BUSH:  How about the doctor that 

        12          was the neighbor?  Is he --  

        13              COMMISSIONER GALLAGHER:  -- conditions.

        14              COMPTROLLER MILLIGAN:  Second.

        15              GOVERNOR BUSH:  There's a motion and a 

        16          second.

        17              Welcome. 

        18              MR. ROSE:  Thank you. 

        19              I just wanted to say that -- thank you, 

        20          Governor, for bringing us together in the 

        21          summit this week, and point out that one of the 

        22          issues that we reached good consensus on among 

        23          all the parties was that we need additional 

        24          law enforcement. 

        25              And I'm not speaking in objection to this 



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                                 October 24, 2000
         1          project today, but to let you know, this is a 

         2          very remote area.  It's just -- essentially 

         3          without enforcement at all of these speed zones 

         4          there.  And there have been no citations 

         5          issued, despite the fact, there have been 

         6          repeated violations of the speed zones. 

         7              And so we thank you for being -- moving us 

         8          on the right track.  But we really do have to 

         9          beef up -- the Fish and Wildlife Conservation 

        10          Commission is trying to do a good job.  They 

        11          don't have the resources to do --

        12              GOVERNOR BUSH:  Would this be a -- is this 

        13          in Federal --

        14              MR. ROSE:  This is both State and Federal  

        15          waters.  It needs to be a partnership situation 

        16          on the Barron River where this project is going 

        17          to be located, and others are being located. 

        18              This would be State waters, and important 

        19          to have State law enforcement. 

        20              These boats, however, when they leave 

        21          together with what are already there, are going 

        22          out into Federal waters where we need Federal 

        23          partnering with that as well.

        24              I just wanted to again thank you for moving 

        25          us in the right direction, but let you know, 



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         1          there's serious problems that exist there, and 

         2          they're going to remain serious without some 

         3          more help.

         4              Thank you.

         5              GOVERNOR BUSH:  Very good.

         6              Any discussion?

         7              It's been moved and seconded.

         8              Without objection, it's approved.

         9              What happened to the doctor?  Was he -- the 

        10          guy that came last time. 

        11              Is he okay with it? 

        12              Now that we've approved it?

        13              COMMISSIONER GALLAGHER:  A motion to defer 

        14          to 11-29, Item Number 11.

        15              COMMISSIONER CRAWFORD:  Second.

        16              COMMISSIONER GALLAGHER:  And a motion to 

        17          withdraw Number 12.

        18              GOVERNOR BUSH:  There's a motion to defer, 

        19          and a second.

        20              Without objection, it's approved.

        21              And a --

        22              MR. STRUHS:  Thank you very much.

        23              GOVERNOR BUSH:  -- motion to withdraw.

        24              Thank you.

        25              COMMISSIONER GALLAGHER:  Withdraw 11 -- 12. 



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                                 October 24, 2000
         1              (The Board of Trustees of the Internal 

         2          Improvement Trust Fund Agenda was concluded.)

         3                              *   *   *

         4              (The Cabinet meeting was concluded at 

         5          11:13 a.m.)

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                                                                 108
                                 October 24, 2000
         1                    CERTIFICATE OF REPORTER

         2     

         3     

         4     

         5     STATE OF FLORIDA:

         6     COUNTY OF LEON:

         7              I, LAURIE L. GILBERT, do hereby certify that 

         8     the foregoing proceedings were taken before me at the 

         9     time and place therein designated; that my shorthand 

        10     notes were thereafter translated; and the foregoing 

        11     pages numbered 1 through 107 are a true and correct 

        12     record of the aforesaid proceedings.

        13              I FURTHER CERTIFY that I am not a relative, 

        14     employee, attorney or counsel of any of the parties, 

        15     nor relative or employee of such attorney or counsel, 

        16     or financially interested in the foregoing action.

        17              DATED THIS 3RD day of NOVEMBER, 2000. 

        18     

        19     
               
        20     
                                                                   
        21                   LAURIE L. GILBERT, RPR, CCR, CRR, RMR
                             100 Salem Court
        22                   Tallahassee, Florida 32301
                             850/878-2221
        23     

        24     

        25     



                        ACCURATE STENOTYPE REPORTERS, INC.