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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 2 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 ACCURATE STENOTYPE REPORTERS, INC. 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BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND: (Presented by David B. Struhs, Secretary) 1 Approved 23 2 Withdrawn 23 Substitute 3 Deferred 25 4 Approved 29 Substitute 5 Approved 96 6 Approved 102 Substitute 7 Denied 103 8 Denied 103 9 Deferred 103 Substitute 10 Approved 106 Substitute 11 Deferred 106 Substitute 12 Withdrawn 106 CERTIFICATE OF REPORTER 108 * * * ACCURATE STENOTYPE REPORTERS, INC.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 * * * 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 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 25 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 * * * 12 13 14 15 16 17 18 19 20 21 22 23 24 25 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 * * * 16 17 18 19 20 21 22 23 24 25 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 24 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 25 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 26 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 27 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 28 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 29 October 24, 2000 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.) ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 30 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 31 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 32 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 33 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 34 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 35 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 36 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 37 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 38 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 39 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 40 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 41 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 42 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 43 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 44 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 45 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 46 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 47 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 48 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 49 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 50 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 51 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 52 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 53 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 54 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 55 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 56 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 57 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 58 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 59 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 60 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 61 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 62 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 63 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 64 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 65 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 66 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 67 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 68 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 69 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 70 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 71 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 72 October 24, 2000 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, ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 73 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 74 October 24, 2000 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, ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 75 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 76 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 77 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 78 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 79 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 80 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 81 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 82 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 83 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 84 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 85 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 86 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 87 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 88 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 89 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 90 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 91 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 92 October 24, 2000 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? ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 93 October 24, 2000 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, ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 94 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 95 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 96 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 97 October 24, 2000 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 -- ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 98 October 24, 2000 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 99 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 100 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 101 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 102 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. 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 ACCURATE STENOTYPE REPORTERS, INC. 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 ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 105 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, ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 106 October 24, 2000 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. ACCURATE STENOTYPE REPORTERS, INC. TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 107 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.) 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ACCURATE STENOTYPE REPORTERS, INC. 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. |