Cabinet
Affairs |
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2 T H E C A B I N E T
3 S T A T E O F F L O R I D A
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Representing:
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STATE BOARD OF ADMINISTRATION
6 DIVISION OF BOND FINANCE
DEPARTMENT OF REVENUE
7 STATE BOARD OF EDUCATION
ADMINISTRATION COMMISSION
8 FLORIDA LAND AND WATER
ADJUDICATORY COMMISSION
9 TRUSTEES OF THE INTERNAL
IMPROVEMENT TRUST FUND
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11 The above agencies came to be heard before
THE FLORIDA CABINET, Honorable Governor Chiles
12 presiding, in the Cabinet Meeting Room, LL-03,
The Capitol, Tallahassee, Florida, on Tuesday,
13 July 23, 1996, commencing at approximately 9:55 a.m.
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16 Reported by:
17 LAURIE L. GILBERT
Registered Professional Reporter
18 Certified Court Reporter
Notary Public in and for
19 the State of Florida at Large
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23 ACCURATE STENOTYPE REPORTERS, INC.
100 SALEM COURT
24 TALLAHASSEE, FLORIDA 32301
904/878-2221
25 1-800/934-9090
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1 APPEARANCES:
2 Representing the Florida Cabinet:
3 LAWTON CHILES
Governor
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BOB CRAWFORD
5 Commissioner of Agriculture
6 BOB MILLIGAN
Comptroller
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SANDRA B. MORTHAM
8 Secretary of State
9 BOB BUTTERWORTH
Attorney General
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BILL NELSON
11 Treasurer
12 FRANK T. BROGAN
Commissioner of Education
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ACCURATE STENOTYPE REPORTERS, INC.
July 23, 1996
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1 I N D E X
2 ITEM ACTION PAGE
3 STATE BOARD OF ADMINISTRATION:
(Presented by Barbara Jarriel,
4 Acting Executive Director)
5 1 Approved 6
2 Approved 7
6 3 Approved 7
4 Approved 8
7 5 Approved 8
6 Approved 8
8 7 Approved 9
8 Approved 9
9 9 Approved 10
10 Approved 11
10 11 Approved 16
11 DIVISION OF BOND FINANCE:
(Presented by J. Ben Watkins, III,
12 Director)
13 1 Approved 17
2 Approved 17
14 3 Approved 18
4 Approved 18
15 5 Approved 18
6 Approved 19
16 7 Approved 19
17 DEPARTMENT OF REVENUE:
(Presented by L.H. Fuchs,
18 Executive Director)
19 1 Approved 21
2 Approved 21
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ACCURATE STENOTYPE REPORTERS, INC.
July 23, 1996
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1 I N D E X
(Continued)
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ITEM ACTION PAGE
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STATE BOARD OF EDUCATION:
4 (Presented by Robert L. Bedford, Ph.D.,
Deputy Commissioner)
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1 Approved 23
6 2 Approved 24
3 Approved 25
7 4 Approved 25
5 Approved 25
8 6 Approved 26
7 Deferred 26
9 8 Approved 26
9 Approved 27
10 10 Approved 28
11 Approved 28
11 12 Approved 28
13 Approved 29
12 14 Approved 29
15 Approved 29
13 16 Approved 39
14 ADMINISTRATION COMMISSION:
(Presented by Robert B. Bradley, Ph.D.,
15 Secretary)
16 1 Approved 40
2 Approved 40
17 3 Approved 41
4 Approved 41
18 5 Approved 41
6 Approved 196
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FLORIDA LAND AND WATER ADJUDICATORY COMMISSION:
20 (Presented by Robert B. Bradley, Ph.D.,
Secretary)
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1 Approved 43
22 2 Approved 43
3 Approved 44
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ACCURATE STENOTYPE REPORTERS, INC.
July 23, 1996
5
1 I N D E X
(Continued)
2
ITEM ACTION PAGE
3
BOARD OF TRUSTEES,
4 INTERNAL IMPROVEMENT
TRUST FUND:
5 (Presented by Virginia B. Wetherell,
Secretary)
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1 Approved 45
7 2 Approved 45
3 Approved 46
8 4 Approved 46
5 Approved 46
9 6 Approved 46
7 Approved 47
10 8 Approved 47
9 Approved 72
11 10 Deferred 76
11 Approved 77
12 12 Approved 77
13 Deferred 133
13 14 Approved 133
15 Approved 156
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15 CERTIFICATE OF REPORTER 197
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ACCURATE STENOTYPE REPORTERS, INC.
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1 P R O C E E D I N G S
2 (The agenda items commenced at 10:41 a.m.)
3 GOVERNOR CHILES: And today is the last
4 Cabinet meeting for Carmelia Bugbee. She is
5 moving over to my scheduling office.
6 I want to thank Carmelia for all of her
7 work in helping to make these meetings go as
8 smoothly, and for taking care of many details
9 that Danny and Curtis can't handle. I know the
10 other Cabinet members and the staff are going to
11 miss her assistance with all of the projects.
12 Maybe we won't have as many resolutions
13 now. She was too accommodating on that I think.
14 But we want to thank you very much, and
15 good luck to you.
16 State Board of Administration.
17 MS. JARRIEL: Good morning.
18 The first item we have this morning is
19 approval of the meetings -- approval of the
20 minutes of the meeting held on July 9th, 1996.
21 TREASURER NELSON: I move it.
22 COMPTROLLER MILLIGAN: And second.
23 GOVERNOR CHILES: It's been moved and
24 seconded.
25 Without objection, that's approved.
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 23, 1996
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1 MS. JARRIEL: The next item is a
2 recommendation to approve fiscal sufficiency,
3 not to exceed six million six hundred and fifty
4 thousand Florida Housing Finance Agency Revenue
5 Bonds, Vizcaya Villas project.
6 TREASURER NELSON: I move it.
7 COMPTROLLER MILLIGAN: Second.
8 GOVERNOR CHILES: Moved and seconded.
9 Without objection, Item 2 is approved.
10 MS. JARRIEL: Next item is also a
11 recommendation to approve fiscal sufficiency not
12 to exceed 19 million Florida Housing
13 Finance Agency revenue bonds, Center Court
14 Apartments project.
15 TREASURER NELSON: Move it.
16 COMPTROLLER MILLIGAN: Second.
17 GOVERNOR CHILES: Moved and seconded.
18 Without objection, that's approved.
19 MS. JARRIEL: Next, a recommendation to
20 approve fiscal sufficiency not to exceed
21 four million five hundred and thirty thousand,
22 Florida Housing Finance Agency Revenue Bonds,
23 Mystic Woods, Phase II Apartments projects.
24 TREASURER NELSON: Move it.
25 COMPTROLLER MILLIGAN: Second.
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 23, 1996
8
1 GOVERNOR CHILES: Moved and seconded.
2 Without objection, Item 4 is approved.
3 MS. JARRIEL: Item number 5, recommendation
4 to approve fiscal sufficiency not to exceed
5 two hundred and fifty million State of Florida
6 State Board of Education PECO bonds, Series A.
7 COMPTROLLER MILLIGAN: Motion.
8 TREASURER NELSON: Second.
9 GOVERNOR CHILES: Motion and second.
10 Without objection, the item is approved.
11 MS. JARRIEL: Item number 6, a
12 recommendation to approve fiscal sufficiency not
13 to exceed seven million eight hundred thousand
14 Florida Housing Finance Agency revenue bonds,
15 The Landings at Sea Forest Apartments project.
16 COMPTROLLER MILLIGAN: Motion.
17 TREASURER NELSON: Second.
18 GOVERNOR CHILES: Moved and seconded.
19 Without objection, it's approved.
20 MS. JARRIEL: Item number 7, a
21 recommendation to approve fiscal sufficiency not
22 to exceed eleven million one hundred and five
23 thousand Florida Housing Finance Agency Revenue
24 Bonds, Leigh Meadows Apartments project.
25 COMPTROLLER MILLIGAN: Motion.
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 23, 1996
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1 TREASURER NELSON: Second.
2 GOVERNOR CHILES: Moved and seconded.
3 Without objection, it's approved.
4 MS. JARRIEL: Item number 8, a
5 recommendation to approve fiscal sufficiency not
6 to exceed twelve million five hundred thousand
7 Florida Housing Finance Agency Revenue Bonds,
8 Stoddert Arms project.
9 COMPTROLLER MILLIGAN: Motion.
10 TREASURER NELSON: Second.
11 GOVERNOR CHILES: Moved and --
12 TREASURER NELSON: Second.
13 GOVERNOR CHILES: -- seconded.
14 Without objection, it's approved.
15 MS. JARRIEL: Item number 9 relates to the
16 Florida Hurricane Catastrophe Fund. We request
17 that the Trustees adopt a resolution which
18 determines that the issuance of bonds will
19 maximize our ability to meet our obligations,
20 and to approve the form, and authorize the
21 execution of a pledge and security agreement for
22 the issuance of said bonds.
23 TREASURER NELSON: I move it.
24 And, Governor, I might just say that the
25 Florida Hurricane Catastrophe Fund now has the
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 23, 1996
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1 capability of bonding about $5 billion. And,
2 of course, a bond issue of that magnitude,
3 you're talking about a huge draw on the
4 financial markets.
5 And what they're trying to do is to get it
6 in line so that they could go quickly into the
7 market and float those bonds if we had a big
8 catastrophe.
9 So they're doing the right thing here.
10 GOVERNOR CHILES: There's a motion.
11 COMPTROLLER MILLIGAN: And second.
12 GOVERNOR CHILES: Second.
13 Without objection, that's approved.
14 You're not saying that you want to use
15 those right now.
16 TREASURER NELSON: No, I don't want to use
17 them at all.
18 As a matter of fact, we've got a cushion
19 now, by the end of the year, we'll have
20 $1.4 billion in the trust fund.
21 GOVERNOR CHILES: Thank you.
22 You're not bragging.
23 TREASURER NELSON: I'm just saying, I'm
24 thankful we have a cushion. I don't want to use
25 it. I want that thing to keep building and
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 23, 1996
11
1 building and building, and not to draw on it.
2 GOVERNOR CHILES: Absolutely.
3 MS. JARRIEL: Item number 10, the Acting
4 Executive Director submits for your review and
5 approval, Investment Performance and Fund
6 Balance Analyses Reports for the month of May
7 and June.
8 COMPTROLLER MILLIGAN: Motion.
9 TREASURER NELSON: Second.
10 GOVERNOR CHILES: Moved and seconded.
11 Without objection, it's approved.
12 MS. JARRIEL: Item number 11 relates to the
13 Florida Hurricane Catastrophe Fund Finance
14 Corporation.
15 Under Statute 215.555(6), the Florida
16 Hurricane Catastrophe Fund Finance Corporation
17 was created. Since the members of the State
18 Board of Administration are named under this
19 statute as members of the Board of Directors for
20 this corporation, the organizational --
21 (Commissioner Crawford exited the room.)
22 MS. JARRIEL: -- meeting of this
23 corporation is being held in conjunction with
24 the SBA agenda.
25 At this time, I would like to introduce
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 23, 1996
12
1 Jack Nicholson, the Chief Operating Officer of
2 the Florida Hurricane Catastrophe Fund; and
3 Ben Watkins, Director of the Division of
4 Bond Finance. These two individuals comprise
5 the remainder of the Board of Directors for this
6 corporation.
7 At this time, this concludes the SBA
8 agenda.
9 (The State Board of Administration Agenda
10 was concluded.)
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ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 23, 1996
13
1 MS. JARRIEL: And, Governor, we ask that
2 you call the organizational meeting of this
3 Financing Corporation to order.
4 GOVERNOR CHILES: Meeting is called to
5 order.
6 MR. NICHOLSON: Governor, let me provide a
7 little background. As Barbara mentioned,
8 Committee Substitute for Senate Bill 2314
9 created section 215.555(6)(c) of
10 Florida Statutes, which creates the Florida
11 Hurricane Catastrophe Fund Finance Corporation.
12 It's a public benefit corporation for the
13 purpose of facilitating the issuance of bonds if
14 financing is needed after --
15 (Commissioner Crawford entered the room.)
16 MR. NICHOLSON: -- a catastrophic
17 hurricane. The Directors of the Corporation
18 include the Governor, or his designee; the
19 Comptroller, or his designee; or the
20 Treasurer -- and the Treasurer and his
21 designee. In addition, the Director of the
22 Division of Bond Finance of the SBA,
23 Ben Watkins; and the Chief Operating Officer of
24 the Florida Hurricane Catastrophe Fund, the
25 position which I hold.
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 23, 1996
14
1 Further, the statute requires the issuance
2 of bonds by the corporation to be validated at
3 the Florida Supreme Court.
4 The Florida Hurricane Catastrophe Fund
5 Finance Corporation will allow us to effect --
6 effectively self register bonds, and be in a
7 position to respond quicker following a major --
8 (Secretary Mortham exited the room.)
9 MR. NICHOLSON: -- hurricane catastrophe,
10 and avoid unnecessary costs and expenses. The
11 bonds would only be issued if assets of the
12 Cat Fund are inadequate to pay claims. And as
13 Commissioner Nelson points out, that at year-end
14 1996, we anticipate having approximately
15 $1.4 billion in cash available to pay claims.
16 The purpose of this meeting is to conduct
17 an organizational meeting, and the agenda items
18 are laid out in the agenda that you have, Items
19 2A through F. These items help us to legally
20 set up the corporation, and to begin the
21 validation process.
22 They include the following: One, the
23 election of officers; two, the approval of the
24 Articles of Incorporation and the Bylaws, as
25 well as the corporate seal.
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 23, 1996
15
1 We also ask that you approve a resolution
2 that authorizes the issuance of up to
3 $10 billion of bonds.
4 The resolution also approves a master trust
5 indenture, approves a pledge and security
6 agreement, and authorizes the validation of the
7 bonds.
8 It also -- also included in the minutes are
9 an -- is an item that directs the Secretary to
10 set out all actions in the minutes of the
11 corporation.
12 What we need is a motion to approve all
13 agenda items under Items 2A through F.
14 TREASURER NELSON: I move it.
15 GOVERNOR CHILES: All right. Agenda Items
16 A, B, C, D, E, and F have been moved.
17 Is there discussion?
18 COMPTROLLER MILLIGAN: The only comment
19 I'll make, Governor --
20 GOVERNOR CHILES: Yes.
21 COMPTROLLER MILLIGAN: -- is that I think
22 this process all is to be a model for efficiency
23 and effectiveness. They have really done a
24 terrific job in pulling this together, and I
25 second the motion.
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 23, 1996
16
1 GOVERNOR CHILES: I think that's very
2 true. I think they've done an outstanding job
3 on that.
4 All right. It's been moved and seconded.
5 Without objection A, B, C, D, E, and F are
6 approved.
7 MR. NICHOLSON: Thank you.
8 GOVERNOR CHILES: Thank you.
9 There being no further business, is there a
10 motion to adjourn the meeting of the --
11 organizational meeting of the Florida Hurricane
12 Catastrophe Fund --
13 TREASURER NELSON: I move it.
14 GOVERNOR CHILES: It's been moved and
15 seconded.
16 And without objection, that's approved.
17 Meeting is adjourned.
18 MR. NICHOLSON: Thank you.
19 GOVERNOR CHILES: Thank you, sir.
20 (The State Board of Administration Florida
21 Hurricane Catastrophe Fund Finance Corporation
22 Agenda was concluded.)
23 *
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ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE
July 23, 1996
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1 GOVERNOR CHILES: Division of Bond Finance.
2 MR. WATKINS: Item 1 is approval of the
3 minutes of the July 9th meeting.
4 COMMISSIONER BROGAN: Move approval.
5 COMMISSIONER CRAWFORD: Second.
6 GOVERNOR CHILES: Moved and seconded.
7 Without objection, they're approved.
8 MR. WATKINS: Item 2 is a resolution that
9 had previously been deferred, which authorizes
10 the use of unspent proceeds in the Facilities
11 Management Program for renovations to the
12 Knott Building.
13 COMMISSIONER BROGAN: Move approval.
14 COMMISSIONER CRAWFORD: Second.
15 GOVERNOR CHILES: Moved and seconded.
16 Without objection, it's approved.
17 MR. WATKINS: Item number 3 is a resolution
18 which does two things: It authorizes the
19 issuance of the 1996-97 fiscal year
20 appropriation for the PECO program; and
21 secondly, it authorizes the competitive --
22 issuance and competitive sale of 250 million of
23 the $450 million appropriation.
24 COMMISSIONER BROGAN: Move approval,
25 Governor.
ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE
July 23, 1996
18
1 SECRETARY MORTHAM: Move approval.
2 GOVERNOR CHILES: Moved and seconded.
3 Without objection, it's approved.
4 MR. WATKINS: Item 4 is adoption of a
5 resolution authorizing the issuance of
6 thirteen million three hundred and eighty-five
7 thousand Board of Regents Student Housing
8 Facility Revenue Bonds for the renovation of two
9 student housing facilities at Florida State
10 University.
11 SECRETARY MORTHAM: Move approval.
12 COMMISSIONER BROGAN: Second.
13 GOVERNOR CHILES: Moved and seconded.
14 Without objection, it's approved.
15 MR. WATKINS: Item number 5 is adoption of
16 resolutions authorizing the negotiated sale of
17 several multifamily housing revenue bond issues
18 enumerated in Items (A) through (F) on behalf of
19 the Florida Housing Finance Agency.
20 COMMISSIONER BROGAN: I'll move approval of
21 Items 5 (A) through (F), Governor.
22 SECRETARY MORTHAM: Second.
23 GOVERNOR CHILES: Moved and seconded on
24 Items 5 (A) through (F).
25 Without objection, it's approved.
ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE
July 23, 1996
19
1 MR. WATKINS: Item number 6 is a report of
2 award of one million nine hundred and
3 eighty-five -- nine hundred and eighty thousand
4 Student Housing Facility Revenue Bonds on behalf
5 of the University of South Florida for the new
6 college campus. The bids were received on
7 July 2nd at Division of Bond Finance. We
8 accepted the low bid at a true interest cost
9 rate of 5.76 percent.
10 SECRETARY MORTHAM: Move approval.
11 COMMISSIONER CRAWFORD: Second.
12 COMMISSIONER BROGAN: Second.
13 GOVERNOR CHILES: Moved and seconded.
14 Without objection, it's approved.
15 MR. WATKINS: Item number 7 is a report of
16 award of fourteen million five hundred thousand
17 Florida Housing Finance Agency transactions,
18 which were sold at a weekly variable interest
19 rate of 2.75 percent.
20 COMMISSIONER BROGAN: Move it.
21 COMPTROLLER MILLIGAN: Second.
22 GOVERNOR CHILES: Moved and seconded.
23 Without objection, that's approved.
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ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE
July 23, 1996
20
1 (The Division of Bond Finance Agenda was
2 concluded.)
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ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF REVENUE
July 23, 1996
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1 GOVERNOR CHILES: Department of Revenue.
2 MR. FUCHS: Item 1 is a request for
3 approval of the minutes of the June 25th
4 meeting.
5 COMMISSIONER BROGAN: So move.
6 GOVERNOR CHILES: Moved and seconded.
7 Without objection, it's approved.
8 MR. FUCHS: Item 2 is a request for
9 approval to file with Secretary of State
10 proposed amendments to child support enforcement
11 Rules 12E-1.004, and 12E-1.006.
12 SECRETARY MORTHAM: Move approval.
13 COMMISSIONER BROGAN: Second.
14 GOVERNOR CHILES: Moved and seconded.
15 Without objection, it's approved.
16 MR. FUCHS: And with your permission,
17 Governor and members, today is the last Cabinet
18 meeting of Lorraine Dempsey Yeomans, who has
19 served the people of the State of Florida the
20 last ten years as a staff person in the House of
21 Representatives, an Assistant Attorney General,
22 and as the Legal Services -- excuse me --
23 Legal Staff Director for the Senate Finance and
24 Tax Committee prior to being Legislative and
25 Cabinet Affairs Director for the
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF REVENUE
July 23, 1996
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1 Department of Revenue.
2 With your indulgence, could she please come
3 forward with a picture --
4 GOVERNOR CHILES: Certainly.
5 MR. FUCHS: -- for a picture?
6 Thank you.
7 She didn't know about this.
8 (The Department of Revenue Agenda was
9 concluded.)
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ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF EDUCATION
July 23, 1996
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1 GOVERNOR CHILES: State Board of Education.
2 (Treasurer Nelson exited the room.)
3 DR. BEDFORD: Governor Chiles, Members of
4 the State Board of Education, good morning.
5 Item 1, proposed contract for the
6 administration, Florida Writing Assessment
7 Program for 1996 through 1999 to National
8 Computer Systems, Inc.
9 COMMISSIONER BROGAN: Move approval.
10 SECRETARY MORTHAM: Second.
11 GOVERNOR CHILES: Moved and seconded.
12 Without objection, it's approved.
13 SECRETARY MORTHAM: Governor --
14 GOVERNOR CHILES: Yes, ma'am.
15 SECRETARY MORTHAM: -- before we go
16 forward, I'd just like to congratulate DOE
17 and -- and Commissioner Brogan and the staff for
18 a reduction and savings of $1.3 million.
19 I think that's pretty significant.
20 GOVERNOR CHILES: It is significant.
21 DR. BEDFORD: Thank you.
22 COMMISSIONER BROGAN: Thank you, Secretary.
23 DR. BEDFORD: Item number 2, adoption of
24 High Priority Location Schools for 1996-1997.
25 COMMISSIONER BROGAN: Move approval.
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF EDUCATION
July 23, 1996
24
1 SECRETARY MORTHAM: Second.
2 COMMISSIONER CRAWFORD: Second.
3 GOVERNOR CHILES: Moved and seconded.
4 Without objection, it's approved.
5 DR. BEDFORD: Item number 3, approval of
6 Division Directors for the Department of
7 Education. I'm very pleased to present for your
8 approval the four individuals who hold Division
9 Director status within the Department of
10 Education.
11 Today in our audience we have two of our
12 Division Directors, and I would like to have
13 them stand as I present them to you.
14 We have Mrs. Betty Coxe, Director of the
15 Division of Human Resource Development. And
16 with her, we have Dr. David Mosrie, Director of
17 the Division of Public Schools.
18 Absent today, and unable to be here,
19 Mr. David Rodriguez, Director of the Division of
20 Administration; and Mr. Joe Stephens, Director
21 of the Division of Applied Technology and Adult
22 Education.
23 SECRETARY MORTHAM: Move approval.
24 COMMISSIONER BROGAN: Move approval without
25 a picture, Governor.
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF EDUCATION
July 23, 1996
25
1 SECRETARY MORTHAM: Second.
2 GOVERNOR CHILES: All right. It's been
3 moved and seconded.
4 Without objection, it's approved.
5 DR. BEDFORD: Item number 4, adoption of
6 the Eleventh Supplemental Authorizing Resolution
7 to the Master Authorizing Resolution adopted
8 July 21st, 1992; and the Resolution authorizing
9 the Public Competitive Sale and Delivery of not
10 to exceed $250 million of State of Florida Full
11 Faith and Credit State Board of Education
12 Public Education Capital Outlay Bonds.
13 COMMISSIONER BROGAN: Move approval,
14 Governor.
15 SECRETARY MORTHAM: Second.
16 GOVERNOR CHILES: Moved and seconded.
17 Without objection, it's approved.
18 DR. BEDFORD: Number 5, approval of the
19 1996-97 College Outreach Program Funding.
20 COMMISSIONER BROGAN: Move approval.
21 SECRETARY MORTHAM: Second.
22 COMMISSIONER CRAWFORD: Second.
23 GOVERNOR CHILES: Moved and seconded.
24 Without objection, that's approved.
25 DR. BEDFORD: Item 6, approval of the
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF EDUCATION
July 23, 1996
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1 guidelines for Innovative Practices Grants.
2 COMMISSIONER BROGAN: Move approval.
3 SECRETARY MORTHAM: Second.
4 GOVERNOR CHILES: Moved and seconded.
5 Without objection, that's approved.
6 DR. BEDFORD: Item 7 we wish to defer.
7 SECRETARY MORTHAM: Move deferral.
8 DR. BEDFORD: Motion to --
9 COMMISSIONER BROGAN: Second.
10 GOVERNOR CHILES: Moved and seconded on a
11 motion to defer.
12 And without objection, it's deferred.
13 DR. BEDFORD: Item 8, Rule 6A-1.09982,
14 Amendment: Reporting Requirements for School
15 Improvement and Accountability.
16 COMMISSIONER BROGAN: Move approval.
17 GOVERNOR CHILES: Moved and --
18 SECRETARY MORTHAM: Second.
19 GOVERNOR CHILES: -- seconded.
20 Without objection, it's approved.
21 DR. BEDFORD: Item 9, 10 --
22 SECRETARY MORTHAM: Ah.
23 DR. BEDFORD: Whoops. Pardon.
24 SECRETARY MORTHAM: Governor --
25 GOVERNOR CHILES: Yes, ma'am.
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF EDUCATION
July 23, 1996
27
1 SECRETARY MORTHAM: -- just on that
2 particular rule, I'd just like to ask the
3 Accountability Commission, and also DOE to work
4 towards individual student achievement, as
5 opposed to the masses. As a parent, I think
6 that parents are concerned about their
7 individual student; and hopefully, that's what
8 we would ultimately be working toward as well,
9 and I'm sure you are.
10 COMMISSIONER BROGAN: Yes, ma'am.
11 DR. BEDFORD: Thank you.
12 GOVERNOR CHILES: All right.
13 DR. BEDFORD: Items 9, 10, and 11 are
14 Division of Community Colleges.
15 Item 9, 6A-14.0247, Amendment: Powers and
16 Duties of the Board of Trustees.
17 SECRETARY MORTHAM: Move approval.
18 COMMISSIONER BROGAN: Second.
19 GOVERNOR CHILES: Moved and seconded.
20 Without objection, it's approved.
21 DR. BEDFORD: Item 10, 6A-14.0301,
22 Withdrawal and Forgiveness.
23 SECRETARY MORTHAM: Move approval.
24 COMMISSIONER BROGAN: Move approval.
25 GOVERNOR CHILES: Moved and seconded.
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July 23, 1996
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1 Without objection, it's approved.
2 DR. BEDFORD: Item 11, Chapter 6A-14,
3 Repeals.
4 COMMISSIONER BROGAN: Move approval.
5 SECRETARY MORTHAM: Second.
6 GOVERNOR CHILES: Moved and seconded.
7 Without objection, it's approved.
8 DR. BEDFORD: Item 12, 13, 14 are items of
9 the State University System.
10 Item 12, 6C-6.0091, Repeal: Spoken English
11 Language Competence of Graduate Students
12 Involved in Classroom Instruction.
13 COMMISSIONER BROGAN: Governor, I'll move
14 approval. And just to let you know, because it
15 may look a little ominous, that simply moves two
16 rules into one rule, covers undergraduate and
17 graduate instructors in one rule instead of the
18 two that it used to.
19 SECRETARY MORTHAM: Second.
20 GOVERNOR CHILES: Moved and seconded.
21 Without objection, it's approved.
22 DR. BEDFORD: Item 13, 6C-ER96-1, an
23 Emergency Rule: Tuition, Fee Schedule, and
24 Percentage of Cost.
25 COMMISSIONER BROGAN: Move approval.
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1 SECRETARY MORTHAM: Second.
2 GOVERNOR CHILES: Moved and seconded.
3 Without objection, it's approved.
4 DR. BEDFORD: Item 14, 6C-7.001,
5 Amendment: Tuition, Fee Schedule, and
6 Percentage of Cost.
7 COMMISSIONER BROGAN: Move approval.
8 SECRETARY MORTHAM: Second.
9 GOVERNOR CHILES: Moved and seconded.
10 Without objection, it's approved.
11 DR. BEDFORD: Item 15, Appointment and
12 Reappointment to the Manatee Community District
13 Board of Trustees.
14 COMMISSIONER BROGAN: Move approval.
15 SECRETARY MORTHAM: Second.
16 GOVERNOR CHILES: Moved and seconded.
17 Without objection, it's approved.
18 DR. BEDFORD: Item 16, a good cause item:
19 Florida System of School Improvement and
20 Accountability. Here representing the
21 Accountability Commission, Senator Phil Lewis.
22 SENATOR LEWIS: Good morning, Governor.
23 GOVERNOR CHILES: Good morning, sir.
24 SENATOR LEWIS: Members of the Cabinet,
25 it's a pleasure to be here.
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STATE BOARD OF EDUCATION
July 23, 1996
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1 I think you all have a copy of the
2 Florida's System of Schools and Improvement and
3 Accountability for 1996. And we are pleased to
4 present it to you for approval, with this one
5 caveat: We have -- the Commission hasn't seen
6 the final draft. And I just -- I don't think --
7 everything we've seen --
8 (Treasurer Nelson entered the room.)
9 SENATOR LEWIS: -- so far is substantively
10 correct. And I'd just like to have them take a
11 shot at it, because they've got the last say.
12 A year ago, we completed the assessment
13 design for the Commission, and for the State
14 Board of Education. And we would like -- we are
15 just going to report to you that the items for
16 assessment in the Florida Criterion Reference
17 Test are being worked out now.
18 This past year, the Department of Education
19 has worked on the implementation plan by
20 revising the curriculum frameworks, including
21 the Sunshine State Standards, and letting
22 contract and develop new assessments.
23 And I compliment the Commissioner of
24 Education and the work he and his staff have
25 done. And also want to compliment the
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1 Commissioner on taking the courageous decision
2 on the critically low schools. We all know what
3 happened when that hit the --
4 COMMISSIONER BROGAN: Fan.
5 SENATOR LEWIS: -- fan. That's the -- I'm
6 glad you said that.
7 And -- however, the results have been very
8 good. People are working very hard to get off
9 of the list. And hopefully that list will
10 narrow itself down over the years and will raise
11 the standards. And I think it's been the first
12 move, and it was one that a lot of people were
13 critical of.
14 But I think, first of all, the Commissioner
15 was carrying out the law; secondly, the
16 Commission results are going to be very good.
17 And it's with your support and help that this is
18 coming into fruition.
19 What you have before you is a design of the
20 system of school improvement accountability as
21 required by statute. The statute required the
22 design to be completed by the year 2000.
23 Thus, the design has been completed by the
24 Commission four years early, including the
25 important part involving the stakeholders.
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1 There is a tremendous amount of work left
2 to be done in the development of the various
3 components, as well as the training to bring
4 about full implementation. There are many
5 issues before the Commission at this time,
6 including exit standards and use of high school
7 competency tests; performance based budgeting,
8 as it relates to accountability; and other
9 oversight responsibilities.
10 And I'll just parenthetically say here:
11 From what I've been -- I've listened to what a
12 performance based budgeting is. And if you've
13 had five explanations, you've had five different
14 explanations. So by the time we'd get it all
15 fully implemented, we'd have a train wreck the
16 likes you have never seen. However, that is,
17 I think, going to be narrowed down over the next
18 few months.
19 But one of the things that I noted in my --
20 one of the explanations, which I think is going
21 to come into play, and that is performance based
22 budgeting is going to be tied to performance
23 based education, in particular, the K-12 system,
24 and they're going to tie money to it. I can
25 almost count on that.
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1 And so if you haven't heard it,
2 Commissioner, and members of the Cabinet, you
3 will soon. I just learned about it myself.
4 Other areas of -- need attention, the
5 postsecondary is creating a K-- pre-K through
6 the university, a continuum of education that
7 gets fully involved in the system.
8 We can no longer afford in this state, or
9 any other state, for each one of the segments of
10 education to take off like Roman candles all by
11 themselves, and not have -- looking at one
12 another. The teachers come out of higher
13 education in some state. The -- and go back
14 into the system.
15 I personally have a very strong involvement
16 in that, and hopefully I see that the
17 postsecondary people are beginning to understand
18 that they are going to be involved in the K-12
19 system. And I think the Commissioner, and
20 everyone else, is -- so far has shown an
21 interest in that, and we hope if they don't show
22 an interest in it, they will soon.
23 Now that I'm on the Board of Regents,
24 hopefully that will even cause them to have more
25 attention over the next few months.
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1 The Commission will -- in October, will
2 present its annual report, including the
3 feedback on the Department's implementation
4 efforts. Dr. Biance, who is on vacation
5 currently, or he'd be up here -- by -- was
6 invited by the Education Commission of the
7 states to present a topic of sustaining systemic
8 reform.
9 We are an elite group here in Florida, as
10 we are entering our sixth year. And now you're
11 beginning to see the fruits of our labor. When
12 you go outside the state, other states are
13 beginning to look at what Florida is doing.
14 If you remember, in the early days when
15 this started, the reform and accountability, we
16 only heard about Kentucky. They jumped into the
17 program, they jumped ahead too fast, and didn't
18 do what Florida was doing. And that was
19 methodically begin to plot out where this was
20 going.
21 And I'm no educator by any -- by a long
22 shot. But I think we've done it right.
23 As a matter of fact, Dr. Biance in one of
24 his talks over in New Orleans, the chap from
25 Kentucky interrupted and said, don't do as we
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1 did, we're having to redo, and do as Florida is
2 doing.
3 It's hard work; it's tough; it's -- it's
4 methodical; it's boring; and yet for those of us
5 in it, it's very exciting. I see great things
6 happening in the future. And I'm glad to be a
7 part of it.
8 In closing, I just want to tell you that
9 the Accountability Commission is still working
10 hard. They will continue to work hard.
11 And I want to thank again the staff of the
12 Commissioner for working to get this report in.
13 And if there's any major changes after the
14 Commission looks at this, we'll bring it back to
15 you, but I don't suspect there will be any. And
16 we want to get this into the hands of the
17 teachers and out in the local schools for the
18 1996-97 year.
19 Thank you.
20 GOVERNOR CHILES: Thank you very much for
21 your report. And we congratulate the
22 Commissioner. We're delighted to see that we
23 have now put out -- formalized this process. It
24 is ahead of time, which is also great.
25 And I think the difference between Florida
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July 23, 1996
36
1 and Kentucky primarily is Kentucky did have a
2 unique opportunity when the courts threw out
3 their funding system. But they sort of
4 squandered that opportunity when they had a
5 top-down approach. And they thought they were
6 doing it right, but they had to -- all the
7 directives came from the Capitol, and they did
8 not go out and buy in any kind of help from
9 teachers, parents, school boards, others.
10 And I, again, congratulate the
11 Accountability Commission for all those hearings
12 you held, and continue to hold -- I know that
13 that was not easy. But I think we did have more
14 of a buy-in. And when we came out with our
15 report, it was something that basically an awful
16 lot of people had bought into. And so I think
17 that's -- attribute that to the success.
18 The other thing I would say, what you're
19 talking about on performance based budgeting,
20 everybody wants to see that, nobody knows how
21 the hell to do it. It's the most difficult
22 thing in the world.
23 And again, using the kind of approach that
24 y'all have of, again, getting a buy-in would be
25 very, very important in doing that. If we had
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1 the best idea and we directed it all from here,
2 it probably will not work.
3 It's again going and holding a lot of
4 meetings, letting a lot of people express
5 themselves, and letting a lot of people begin to
6 understand what we're talking about, that we are
7 talking about tying this to an individual
8 student's performance. So mom and pop know that
9 the dollar -- their taxpayers' dollar is being
10 spent properly, efficiently, effectively,
11 honestly, all of those things is what we're
12 looking for; as opposed to some bureaucratic
13 follow line items and everything else.
14 So, again, easy to talk about, very
15 difficult to do. But I can't think of any
16 organization better prepared to try to help us
17 do this, because of your previous experience and
18 your track record, than the
19 Accountability Commission.
20 SENATOR LEWIS: Thank you, Governor.
21 COMMISSIONER BROGAN: Governor, I'll move
22 this item.
23 But I would be remiss if -- if we didn't
24 also take the opportunity to thank the
25 Accountability Commission's answer to Stanley
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STATE BOARD OF EDUCATION
July 23, 1996
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1 the Panther, and that -- that's Senator
2 Phil Lewis. He -- he has been great, not only
3 with the Accountability Commission, but we also
4 applaude your wisdom in his appointment to the
5 Board of Regents.
6 He's going to provide for us, I think, a
7 very important link: Legislature, pre-K-12,
8 Community Colleges, State University System,
9 because he's got such a long and illustrious
10 track record dealing with all of those that's
11 very unusual, in this, or any other state -- and
12 I put this in quotes -- from a layman's
13 perspective. And I only mean that by saying, he
14 is not an educator, self espoused, and proud of
15 it, I think.
16 SENATOR LEWIS: Yes, sir.
17 COMMISSIONER BROGAN: But -- but he does
18 bring to bear a very important list of
19 credentials that will bring to us that kind of
20 experience.
21 So we thank you for that appointment to the
22 BOR, and we also thank Senator Lewis for his
23 continued efforts on behalf of the teachers and
24 children of the State of Florida. We appreciate
25 it very much.
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July 23, 1996
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1 SENATOR LEWIS: Thank you, Commissioner.
2 COMMISSIONER BROGAN: Picture?
3 SENATOR LEWIS: Oh, no. I put you through
4 that already.
5 Thank you.
6 SECRETARY MORTHAM: Second.
7 GOVERNOR CHILES: The report has been moved
8 and seconded.
9 Without objection, the report is adopted.
10 DR. BEDFORD: Thank you.
11 (The State Board of Education Agenda was
12 concluded.)
13 *
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ACCURATE STENOTYPE REPORTERS, INC.
ADMINISTRATION COMMISSION
July 23, 1996
40
1 GOVERNOR CHILES:
2 Administration Commission.
3 DR. BRADLEY: Item number 1, recommend
4 approval of the minutes of the meetings held
5 June 13; June 20; and June 25, 1996.
6 SECRETARY MORTHAM: Move approval.
7 COMMISSIONER BROGAN: Second.
8 GOVERNOR CHILES: Motion and --
9 COMMISSIONER BROGAN: Second.
10 GOVERNOR CHILES: -- second in regard to
11 the minutes.
12 Without objection, they're approved.
13 DR. BRADLEY: Item number 2, recommend
14 approval of the transfer of general revenue
15 appropriations in the Department of Agriculture
16 and Consumer Services.
17 COMMISSIONER CRAWFORD: Motion.
18 COMMISSIONER BROGAN: Move approval.
19 GOVERNOR CHILES: Moved and seconded.
20 Without objection, that's approved.
21 DR. BRADLEY: Item number 3, recommend the
22 approval of the transfer of general revenue
23 appropriations, and -- under Items A, B, and C
24 in the Department of Health and Rehabilitative
25 Services.
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1 COMMISSIONER BROGAN: Governor, move
2 Items 3 A, B, and C.
3 SECRETARY MORTHAM: Second.
4 GOVERNOR CHILES: All right. Motion is on
5 items A, B, and C.
6 And without objection, that's approved.
7 DR. BRADLEY: Item number 4, recommend the
8 approval of the transfer of general revenue
9 appropriations in the Department of Juvenile
10 Justice.
11 SECRETARY MORTHAM: Move approval.
12 COMPTROLLER MILLIGAN: Second.
13 COMMISSIONER BROGAN: Second.
14 GOVERNOR CHILES: Moved and seconded.
15 Without objection, it's approved.
16 DR. BRADLEY: Item number 5, recommend the
17 approval of the transfer of general revenue
18 appropriations under items A and B in the
19 Department of State.
20 SECRETARY MORTHAM: Move approval.
21 COMPTROLLER MILLIGAN: Second.
22 COMMISSIONER BROGAN: Second.
23 GOVERNOR CHILES: Moved and seconded.
24 Without objection, it's approved.
25 DR. BRADLEY: Item number 6, Governor, is
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1 recommended that we take up later after the
2 Trustees agenda. That's the Lee County --
3 GOVERNOR CHILES: All right.
4 (The Administration Commissioner Agenda was
5 continued.)
6 *
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FLORIDA LAND AND WATER ADJUDICATORY COMMISSION
July 23, 1996
43
1 GOVERNOR CHILES: Florida Land and Water
2 Adjudicatory Commission.
3 DR. BRADLEY: Item number 1, request
4 approval of the minutes of July 9, 1996,
5 Commission meeting.
6 COMMISSIONER BROGAN: So move.
7 SECRETARY MORTHAM: Second.
8 GOVERNOR CHILES: Moved and seconded.
9 Without objection, minutes are approved.
10 DR. BRADLEY: Item number 2 is request
11 approval of the proposed final rule establishing
12 the Fiddler's Creek Community Development
13 District. We have some folks here available if
14 you want to --
15 SECRETARY MORTHAM: Move approval.
16 GOVERNOR CHILES: Moved and --
17 COMMISSIONER CRAWFORD: Second.
18 COMMISSIONER BROGAN: Second.
19 GOVERNOR CHILES: -- seconded.
20 Without objection, it's approved.
21 DR. BRADLEY: Item number 3, request
22 acceptance of the June 30, 1996, report on the
23 status of the Save Our Everglades Program.
24 COMMISSIONER BROGAN: Move approval.
25 COMMISSIONER CRAWFORD: Second.
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1 GOVERNOR CHILES: Moved and seconded.
2 Without objection, that's approved.
3 (The Florida Land and Water Adjudicatory
4 Commission Agenda was concluded.)
5 *
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July 23, 1996
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1 GOVERNOR CHILES: Board of Trustees.
2 MS. WETHERELL: Governor and Trustees, if I
3 could first introduce to you our new
4 General Counsel for DEP, Mr. Perry Odom.
5 If Perry'll just stand up, because you'll
6 be seeing a lot of him now.
7 Item 1, an option agreement for Belle Meade
8 CARL project, and a waiver of survey.
9 SECRETARY MORTHAM: Move approval.
10 COMMISSIONER BROGAN: Move approval.
11 GOVERNOR CHILES: Moved and --
12 COMMISSIONER CRAWFORD: Second.
13 GOVERNOR CHILES: -- seconded.
14 Without objection, it's approved.
15 MS. WETHERELL: Item 2 is an option
16 agreement for Belle Meade CARL project.
17 SECRETARY MORTHAM: Move approval.
18 COMMISSIONER BROGAN: Second.
19 GOVERNOR CHILES: Moved and seconded.
20 Without objection, that's approved.
21 MS. WETHERELL: Item 3 are ten purchase
22 agreements for Belle Meade CARL projects, and a
23 waiver of survey.
24 COMMISSIONER BROGAN: Move approval.
25 SECRETARY MORTHAM: Second.
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1 GOVERNOR CHILES: Moved and seconded.
2 Without objection, that's approved.
3 MS. WETHERELL: Item 4 is an option
4 agreement for Belle Meade CARL project.
5 SECRETARY MORTHAM: Move approval.
6 COMMISSIONER BROGAN: Second.
7 GOVERNOR CHILES: Moved and seconded.
8 Without objection, that's approved.
9 MS. WETHERELL: Item 5, purchase agreements
10 for Save Our Everglades CARL project, and a
11 waiver of survey.
12 SECRETARY MORTHAM: Move approval.
13 COMMISSIONER BROGAN: Second.
14 GOVERNOR CHILES: Moved and seconded.
15 Without objection, that's approved.
16 MS. WETHERELL: Item 6, two option
17 agreements for Tate's Hell Carrabelle CARL
18 project.
19 COMMISSIONER BROGAN: Move it.
20 SECRETARY MORTHAM: Second.
21 GOVERNOR CHILES: Moved and seconded.
22 Without objection, that's approved.
23 MS. WETHERELL: Item 7, an option agreement
24 for Spruce Creek CARL project.
25 SECRETARY MORTHAM: Move approval.
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1 COMMISSIONER BROGAN: Second.
2 GOVERNOR CHILES: Moved and seconded.
3 Without objection, it's approved.
4 MS. WETHERELL: Item 8, an option agreement
5 for the Chassahowitzka Wildlife Management Area.
6 COMMISSIONER BROGAN: Move it.
7 SECRETARY MORTHAM: Move approval.
8 COMMISSIONER BROGAN: Second.
9 GOVERNOR CHILES: Moved and seconded.
10 Without objection, that's approved.
11 MS. WETHERELL: Item 9, a modification of
12 deed restrictions on Watson Island.
13 We have some speakers, Governor. If I can
14 call on first Steve Uhlfelder, representing the
15 applicant.
16 And following him will be Vice Mayor
17 Willy Gort, Commissioner Joe Carollo, and
18 Senator Ron Silver.
19 ATTORNEY GENERAL BUTTERWORTH: Which one is
20 Steve Uhlfelder, and which one --
21 TREASURER NELSON: You're getting yourself
22 all adorned these days, aren't you?
23 MR. UHLFELDER: He's going to tell us the
24 percentage. They guaranteed me that this was
25 potty trained.
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1 ATTORNEY GENERAL BUTTERWORTH: They just
2 fed him.
3 MR. UHLFELDER: It's a pleasure to be here
4 representing the City of Miami. I'm with
5 Holland & Knight, we represent the City. And
6 today we have with us a number of City
7 officials.
8 I don't think this is going to work.
9 TREASURER NELSON: Cheap suit.
10 ATTORNEY GENERAL BUTTERWORTH: Better hope
11 it's a cheap suit.
12 MR. UHLFELDER: The -- we have --
13 TREASURER NELSON: It's the most lucid
14 presentation you've ever made.
15 GOVERNOR CHILES: We're going to know
16 whether you're telling the truth or not because
17 of the bird.
18 MR. UHLFELDER: The -- I asked the bird
19 before I could get up here whether he was a
20 Democrat or Republican; he said, depending on
21 the issue.
22 But we have with us today the Vice Mayor,
23 Willy Gort; Commissioner Joe Carollo;
24 Commissioner J.L. Plummer; the head of Planning,
25 Jack Luft; Ron Silver with the -- the head of
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1 the Dade delegation; William Talbert, who's the
2 CEO of the Miami Convention Bureau; Mr. and
3 Mrs. Bernie Levine, CEO, Parrot Jungle, whose
4 bird this belongs to.
5 In 1945, this is what Watson Island looked
6 like; this is what the Watson Island looks like
7 today; and this is what the Watson Island would
8 look like with about 1,000 parrots like this,
9 and all -- the $25 million that will be put in
10 this -- this development.
11 We've spent about six months negotiating
12 with the City of Miami and the State to enter
13 into agreements so we can get a deed restriction
14 of about 18 acres. There was voter approval of
15 this project in November of 1995, with over
16 60 percent of the voters approving this
17 project. There'll be over $500,000 in State
18 sales tax coming to you as a result of this
19 project.
20 We've had three appraisals done on this
21 project, and it shows that what we negotiated,
22 the amount that we believe is reasonable, and we
23 believe that what the City is asking for at
24 7.5 percent supports those appraisals.
25 We negotiated this amount of 15, and the
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1 City requested an amount of 7.5, and the
2 Commissioners are here today to support their
3 position.
4 We believe because the economic development
5 and the tourism are being enhanced by this
6 project, that we believe you should support the
7 City's position.
8 Because the proposed attraction is
9 principally a garden, and has a low tax value,
10 the property tax returned to the City will be
11 less than the costs providing municipal
12 services. They're putting a substantial amount
13 of capital improvements in this area.
14 I would like now to turn over to the
15 commissioners to talk about the economic
16 development and to the -- the additional impact
17 this will have on the community, and answer any
18 questions at the end of that.
19 The first person is Vice Mayor Willy Gort.
20 MR. GORT: Thank you.
21 Good morning, Governor, members of the
22 Cabinet --
23 GOVERNOR CHILES: Good morning.
24 MR. GORT: -- surely you are aware that the
25 City of Miami was said to be the poorest -- one
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1 of the fourth poorest city in the
2 United States. Certainly the most poorest city
3 in the state of Florida.
4 We tried to turn that around two years ago,
5 and we made a commitment to our residents that
6 we would change that around.
7 One of the first things we did, we -- we
8 deal with the budget. We are here to reduce the
9 budget by $36 million, and we requested our
10 employees to perform a lot better and to do a
11 lot more.
12 At the same time, we made a commitment that
13 we're going to turn -- maximize the revenues
14 from the public land, and that's what's -- a lot
15 of the RFP went out.
16 Just to give you an idea of the economic
17 impact that this will have, this proposed
18 Parrot Jungle will create 200 permanent jobs,
19 will create 500 jobs during construction,
20 provide environmental education programs to the
21 inner city school children, return attraction,
22 Florida will pay in excess of $500,000 annually
23 in sales tax.
24 Pay other taxes annually, 3 -- 3 percent in
25 property tax out of gross revenues;
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1 two-and-a-half percent in local food and
2 beverage taxes that helps the homeless, and
3 others; 7 in payroll taxes. Almost 20 percent
4 of the gross revenues will go into paying taxes,
5 federal, county, and state.
6 This project cost around $25 million for
7 the next five years, which will be additional
8 jobs and income taxes will be paid from.
9 As you were told before, we took this to
10 the electors, and they approved it by 60 percent
11 with a 28 percent turnout.
12 So, therefore, I respectfully request the
13 waiver of the deed restriction on Watson Island
14 at 75 -- 7.5 percent payment made to the
15 State of Florida.
16 Thank you very much.
17 Now I'd like to call on
18 Commissioner Plummer.
19 MR. PLUMMER: Governor, Members of the
20 Cabinet, I would like to take a second of your
21 time as Chairman of the City of Miami Centennial
22 to invite all of you Sunday to come down for the
23 world's largest birthday party. If you're in
24 the area, we'd love to have you as our guest at
25 that celebration.
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1 I come here today to tell you that
2 sometimes five years is a short period of time;
3 and other times, it's an awful long time. Five
4 years ago when the Parrot Jungle decided that
5 they were going to move, I talked to Dr. Levine,
6 and we had three locations pretty well laid out
7 in the City of Miami.
8 Finally came to a referendum last November
9 in which the people of the City of Miami decided
10 that 25 to $27 million privately financed would
11 be a tremendous asset for our community.
12 No one thing is the hub or the wheel. As
13 you know, we have many, many improvements that
14 we're looking at, and the Watson Island
15 Parrot Jungle and Botanical Gardens will fit
16 right into that picture.
17 With the expansion of the port; with your
18 help, the new arena; the performing arts; the
19 opera house, all of those are very, very vital
20 things for the redevelopment of our downtown
21 area.
22 They are looking presently at the present
23 attraction of where -- about 50/50, 50 percent
24 visitors, 50 percent local. They're looking
25 forward in three years to going to
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1 550,000 people, and an aspect of 60/40,
2 60 percent visitors, 40 percent of local people.
3 We beg your help in this matter. We feel
4 it is crucial, it is very important to our
5 community. And I just thank you very much for
6 allowing us to be here today. We're not
7 violating the Sunshine Law nor the Moonshine
8 Law, we've all signed the necessary pledges.
9 Thank you very much.
10 MR. UHLFELDER: I would like to call on the
11 head of the Dade delegation, Senator Silver.
12 SENATOR SILVER: Governor, and members of
13 the Cabinet, it's a pleasure to appear before
14 you.
15 It's a little odd for me to do this. In
16 18 years I've been in the Legislature, this is
17 the first time I have -- have done this.
18 Actually, it's the the second time,
19 because, as you saw, I was with Stanley Panther
20 before, and that was my first appearance before
21 you.
22 I certainly appreciate -- this gives me an
23 opportunity to extend my appreciation for the
24 kind remarks, Commissioner Crawford, that you
25 gave to me before. I just want to thank you so
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1 much for that, recognizing my bigness and
2 greatness.
3 This is a very important issue to those of
4 us in Dade County.
5 It represents something that we all are
6 proud of. And I'm here to tell you today, as
7 Chairman of the Dade County Legislative
8 Delegation, that not one single member of this
9 delegation objects to this proposal that is
10 before you today, that those of us who represent
11 the people of Dade County in the legislative
12 process are all unanimously behind this
13 proposal.
14 We do that for many reasons. But the
15 biggest one I think is because of the economic
16 development aspect of this.
17 The attraction that we can provide to
18 people who visit our area, who come to our area,
19 for various reasons, this gives them another
20 opportunity. And it's a tremendous educational
21 experience.
22 The Parrot Jungle before this move was
23 located in my district, and it will be located
24 in my district after this move. I am very proud
25 to have it. As we went through the hurricane
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1 process, we know that severe problems occurred
2 to Dade County. And this Cabinet, this
3 Legislature, has been absolutely outstanding in
4 every regard as far as getting us back on the
5 track.
6 I believe that this addition, this addition
7 will put us in the right direction. There's a
8 lot more that we can do, there's a lot more we
9 want to do. And the fact that the Dade
10 delegation has come together on an issue -- as
11 you know, those of you who served in the
12 Legislature, and it's very difficult to get the
13 Dade delegation to agree on almost anything.
14 Well, they're in agreement on this particular
15 issue.
16 So I would urge you, on that basis, to try
17 and accede to the proposal that is before you.
18 I think it's a win-win, it's a win for the State
19 of Florida. I think additional revenues are
20 going to be coming into the state, and it
21 certainly would be a win for the people of
22 Dade County.
23 Thank you very much.
24 MR. UHLFELDER: Last speaker, and I'll be
25 glad to answer any questions.
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1 But before that, the Mayor-to-be,
2 Joe Carollo.
3 MR. CAROLLO: Governor, Honorable Members
4 of the Cabinet, thank you for the opportunity
5 that you've extended to us today in making this
6 presentation on behalf of Miami.
7 Since 1949, the City of Miami has expended
8 over $10 million to the improvement of
9 Watson Island, along with a commitment that we
10 have of spending an additional seven-and-a-half
11 million for additional improvements on
12 Watson Island. It's a total of
13 seventeen-and-a-half million dollars.
14 The only return that the citizens of Miami
15 will receive monetary will be the monetary
16 returns that we'll receive from this project
17 since that time. At the same time, the State of
18 Florida will be receiving in excess of half a
19 million dollars a year in annual sales tax
20 revenues.
21 As you heard one of my colleagues state
22 before, Miami is the fourth poorest city in the
23 country. There is no other city in the state of
24 Florida, I may say, that needs this money more
25 than Miami.
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1 We hope that in this centennial year, the
2 year that Miami becomes 100 years old, that we
3 will start changing that, so instead of being
4 the fourth poorest city in the country, maybe we
5 could become one of the wealthiest cities so we
6 could contribute more to our great state.
7 But in this centennial year, I cannot think
8 of a better birthday present that you could give
9 to us in Miami than to vote for us in this
10 request that we've made.
11 Having said that, I would also like to
12 extend to all of you that you come to Miami this
13 weekend, an invitation to celebrate with us the
14 largest birthday party that there will be in the
15 state of Florida.
16 Thank you very much.
17 GOVERNOR CHILES: Thank you, sir.
18 MR. UHLFELDER: That concludes our
19 presentation. I want to let you know, this
20 parrot behaved a lot better than that panther.
21 So --
22 GOVERNOR CHILES: Yeah. You haven't looked
23 at the back of your coat yet.
24 MR. UHLFELDER: Not -- I was anticipating
25 that. I borrowed a partner's jacket today.
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1 So --
2 TREASURER NELSON: At least he's wearing a
3 dark jacket.
4 MS. WETHERELL: Those are all the
5 speakers. And unless you would like to hear
6 from Mr. Mallison as to why we recommended
7 15 percent --
8 GOVERNOR CHILES: Well, I -- what is the
9 proposal that's before us?
10 MS. WETHERELL: Proposal before you in the
11 item --
12 GOVERNOR CHILES: And I'd like to hear from
13 Mr. Mallison.
14 MS. WETHERELL: Okay. Pete?
15 MR. MALLISON: Good morning, Governor, and
16 Cabinet.
17 The Secretary did ask me to kind of recap
18 for you how we got to where we are. And I
19 would, of course, begin with the deed to the
20 City, which was given to them by the Board of
21 Trustees back in the late 1940s.
22 At the time that the property was conveyed
23 to the City, it was conveyed with use
24 restrictions on the property, it was given to
25 them for virtually no consideration so that it
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1 could be used for public and municipal purposes.
2 And the deed contains specific language in
3 it that specifically provides that it may not be
4 leased to any private citizen, corporation, or
5 entity that the -- being that the purpose of the
6 original dedication to the City was for
7 municipal and public purposes.
8 Consequently, when the City approached us
9 six to eight months ago originally asking for a
10 relaxation, or waiver of the deed restrictions
11 so that they could lease this property to
12 Parrot Jungle, which clearly is a private
13 entity, we began our discussions with the City.
14 And it was our feeling that there were
15 certainly -- as the City has said today -- that
16 there are certainly some public benefits to be
17 derived from the construction of this tourist
18 attraction on the island. But, on the other
19 hand, that it was clearly also inconsistent with
20 the restrictions under which the property had
21 been conveyed to the City.
22 I can tell you that nearly from the
23 beginning, the City has agreed that it would be
24 appropriate to compensate the Board of Trustees
25 in some fashion for the modification of these
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1 deed restrictions.
2 However, before we began our negotiations
3 with the City over what an appropriate
4 compensation should be, we felt that we needed
5 to have an appraisal done on the property so
6 that we could see what its value was.
7 The City was gracious enough to agree to
8 pay for that appraisal. We obtained an
9 appraisal. We asked the appraiser to tell us
10 what the value of the property was put to its
11 highest and best use as a tourist attraction.
12 The appraiser estimated the value of the
13 land at three-and-a-half million dollars. He
14 then told us that it would be reasonable to
15 expect that a landlord would receive a base rent
16 for that property of approximately 10 percent of
17 that number, or $350,000 a year.
18 He also indicated to us that it would be
19 reasonable to expect a landlord of property on
20 which this sort of operation will be
21 constructed, to negotiate a lease with the
22 lessee, which would also include a return on
23 things such as ticket -- ticket sales; retail
24 sales; and banquet and restaurant income, which
25 are expected to be generated by this operation.
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1 And recommended to us through the appraisal
2 a range of percentages of those numbers that you
3 would expect to negotiate within.
4 Consequently, we began our negotiations
5 with the City, suggesting that it would be
6 appropriate for the State to receive in
7 recognition of the fact that this was not given
8 to them for a profit making venture, that it
9 would be appropriate for the State to receive
10 some portion of these revenues.
11 I believe that the offer that we were
12 making to the City several months ago was in the
13 neighborhood of 25 percent of the numbers, as I
14 have indicated.
15 The City came back -- or at least the
16 City's agent, and the City staff members that we
17 were dealing with, came back, and suggested that
18 if we would be agreeable to 15 percent, that
19 they would agree to that.
20 So in recognition that this is an important
21 public project in Miami, we said we would agree
22 to that.
23 And it was at that point apparently that
24 the -- this deal was taken to the
25 City Commission, at which point they apparently
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1 did not agree with their staff position on
2 15 percent.
3 So we are here now, as you know, with
4 somewhat of an impasse, our position being that
5 we believe that 15 percent is a reasonable
6 figure; the City, of course, asking for
7 seven-and-a-half percent.
8 I would just mention to you that the --
9 whatever proceeds are derived from this
10 agreement with the City would be deposited into
11 the Internal Improvement Trust Fund, which is
12 the Trust Fund that supports your staff, being
13 my Division of State Lands, as well as other
14 staff within the department who are charged with
15 the administration and oversight of the
16 3 million or so acres that are titled in your
17 name.
18 So I would just mention that as well.
19 And I would be glad to answer any questions
20 if --
21 GOVERNOR CHILES: Well, I just think it's
22 interesting that the City Commission, which it
23 was certainly within their prerogatives and
24 responsibilities and duties, decided that
25 15 percent was too much, and so they thought it
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1 should be seven-and-a-half.
2 I will just point out that your Board has
3 not agreed to your 15 percent figure yet, and
4 I think it may be too low. So, you know, we may
5 have some more negotiations that we're doing
6 here.
7 Go ahead.
8 TREASURER NELSON: Well, Governor, I come
9 at it from a different approach. I wonder, what
10 is the public policy with regard to the
11 protection of the state. You all clearly have
12 done your job as the Division of State Lands, in
13 protecting the public interest and the State's
14 interest here.
15 Has the State expended any money with
16 regard to Watson Island? Clearly the City has
17 since the 1940s. Has the State?
18 MS. WETHERELL: Do you know that answer?
19 MR. MALLISON: I can tell you that in terms
20 of every day maintenance, and those kinds of
21 things, that it is not my under-- we certainly
22 haven't expended any money, Commissioner.
23 I would say that I believe that there is a
24 public road, a State road, that runs across the
25 island. Now, I would assume that DOT is
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1 providing some maintenance for that road.
2 But, again, I guess my response to that
3 would be that the property was given to the
4 City, and obviously it is theirs to maintain.
5 But, again, it was given to them for the
6 specific purposes of municipal purposes. So we
7 would expect that they would maintain it for
8 those purposes.
9 TREASURER NELSON: Well, in terms of global
10 affairs, we're only talking about a $30,000
11 difference here. But to get to what the
12 equities are, the Miami Herald has editorialized
13 that the State initially asked for 50 percent.
14 Could you tell me if that's true; and if
15 so, why?
16 MR. MALLISON: That is true, Commissioner.
17 And that was our beginning offer in the
18 negotiations.
19 I think that we went into the negotiations
20 hoping that we would end up somewhere in the 15
21 to 25 percent range. And obviously, we did not
22 want to begin with what our bottom line was. So
23 we threw out an initial offer of 50 percent.
24 Now, I think that there is some
25 justification for that. I think that the Board
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1 of Trustees in the past has considered requests
2 by the City to release deed restrictions on this
3 very -- within the same deed, for other City
4 projects.
5 And, in fact, the last time that that was
6 before this Board, the Board insisted that
7 100 percent of the revenue that the City derived
8 from the conversion of another part of this deed
9 to private uses would go into a special trust
10 fund that was intended to compensate the local
11 citizens for the conversion of that land.
12 So there's an instance where this Board
13 insisted that 100 percent of the City's revenues
14 on the property be earmarked, if you will, for
15 projects that this Board said they ought to be
16 earmarked for.
17 So we believe that the Board's past
18 practice had suggested that they thought that
19 some significant portion of that. But, on the
20 other hand, we'd never started with 100 percent,
21 because we understood that this is a project
22 with a lot of local benefits.
23 The City obviously is the one who's going
24 to have to be responsible for the day-to-day
25 oversight and management of this, and we did not
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1 believe that 100 percent was an appropriate
2 number.
3 So we did begin with a suggestion of
4 50 percent. But, again, it was an opening
5 position, and certainly not one that we expected
6 to end up at.
7 TREASURER NELSON: It's sort of interesting
8 how we will argue over minor matters of $30,000
9 per year. But it seems to me that the principle
10 here is that if Miami's taxpayers have
11 maintained this for years, that they ought to be
12 the ones that have the -- the primary benefits
13 coming from the revenue. And that's my --
14 GOVERNOR CHILES: Well --
15 TREASURER NELSON: -- position, Governor.
16 GOVERNOR CHILES: -- I would certainly
17 agree with that.
18 I also think that the discussion here is
19 not whether we're going to try to second-guess
20 the Commission as to what the purpose is, and
21 that while the State did give this land in the
22 '40s, again, with little or no compensation, as
23 I understand, we have Bayfront, which we've
24 also, in effect, provided for small compensation
25 goes.
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1 But it seems like to me, the 15 percent
2 that we're going to get is going to help the
3 citizens of Dade County and the citizens all
4 over Florida.
5 Because that helps us to be able to
6 administer the funds that we're talking about.
7 And if you all will remember, the Legislature
8 doesn't provide much funding. And we're
9 constantly finding that the Trustees do not have
10 sufficient funds to try to look after how you
11 protect the public's right.
12 So we're talking about how are we going to
13 help the citizens of Dade County the most? Are
14 we going to help them by cutting
15 seven-and-a-half percent, or are we going to
16 have a viable Trustees -- what is more critical
17 lands than Dade County and south Florida and the
18 area down there?
19 So, to me, we're talking about negotiation
20 here. We're not talking about second-guessing a
21 committee -- the Commission. We're not talking
22 about whether we're going to allow the private
23 use of what was a public facility -- a public
24 purpose.
25 It certainly is going to bring tourism
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1 there, it's going to bring a lot of other people
2 to there. And if that's the Commission's
3 judgment, I don't want to second-guess that.
4 But if the City Commission has decided
5 that, hell, let's just get seven-and-a-half --
6 pay them seven-and-a-half percent, they could
7 have said zero, you know, and we could have been
8 up here.
9 After negotiations have gone along at
10 15 percent, and as I say, I think you could have
11 good reason as to why we're paying 15. It is
12 the principle of the thing, I think. And I
13 think they are being a little piggy, to tell you
14 the truth. And I think that 15 percent would be
15 a fairer deal. And that's what I would like to
16 see us do.
17 TREASURER NELSON: Governor, I -- I think
18 part of this is a turf fight that you used to
19 teach me a lot about up in Washington as my
20 senior senator, about which agency was going to
21 get the revenue.
22 The fact is, this project is going to
23 benefit the State of Florida quite a bit,
24 because they're estimating that the income that
25 comes into the coffers of the State of Florida
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1 is going to increase fivefold, from about
2 $100,000 sales tax, to about 500,000.
3 GOVERNOR CHILES: Yes.
4 TREASURER NELSON: So clearly the
5 State of Florida's going to benefit. But that
6 revenue's not going into DEP, it's coming into
7 the general revenue of the state.
8 GOVERNOR CHILES: That's right.
9 TREASURER NELSON: So it's a turf fight,
10 isn't it?
11 GOVERNOR CHILES: Sure.
12 COMPTROLLER MILLIGAN: Governor, if I
13 may --
14 GOVERNOR CHILES: Yes, sir.
15 COMPTROLLER MILLIGAN: -- jump into the
16 fray. We are dancing a little bit on the head
17 of a pin here, as --
18 GOVERNOR CHILES: Yes, sir.
19 COMPTROLLER MILLIGAN: --
20 Commissioner Nelson pointed out.
21 But we don't have a -- really a very good
22 track record in this state in terms of economic
23 development, and promoting economic
24 development. Granted, we are trying to change
25 that, and there have been some recent actions
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1 that will strengthen it.
2 And it appears to me that we are poking in
3 the eye a little bit here the opportunity for
4 Miami and Dade County to really build and
5 strengthen the development of that area.
6 And, again, it is dancing on the head of a
7 pin, but it is a principle. And I take a
8 slightly different view of that principle, than
9 perhaps you do. And I certainly would argue for
10 lesser than the 15 percent. And, in fact, I
11 probably might even strike for zero. But
12 I think we could probably live with --
13 GOVERNOR CHILES: Commission may meet
14 again.
15 COMPTROLLER MILLIGAN: -- we probably could
16 strike the -- at the seven-and-a-half.
17 And I would make a motion to that effect,
18 that we consider reducing that 15 percent to
19 seven-and-a-half percent.
20 TREASURER NELSON: I second it.
21 GOVERNOR CHILES: That's been moved and
22 seconded.
23 Is there further discussion?
24 Many as favor the motion, signify by saying
25 aye.
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1 COMPTROLLER MILLIGAN: Aye.
2 TREASURER NELSON: Aye.
3 GOVERNOR CHILES: Opposed, no?
4 No.
5 ATTORNEY GENERAL BUTTERWORTH: No.
6 GOVERNOR CHILES: Motion carries.
7 MS. WETHERELL: Item 10 is a status report
8 on the Bayside Center. And we have speaker,
9 Toby Brigham, representing the property owners
10 of the Barnacle.
11 MR. BRIGHAM: Good morning, Your Honors.
12 I have a status report as to the
13 Commodore Bay tract of land. It was about
14 eleven years ago today when a similar request
15 from the City of Miami came to have the State
16 release its restrictions on the Bayfront Park of
17 Miami to build the Bayside Commercial Center.
18 And at that time, the agreement was that
19 seven-and-a-half percent, or 7.4 percent of the
20 revenues from that rental to that commercial
21 enterprise, would go into a trust fund to
22 acquire the Commodore Bay tract, which was owned
23 by my three clients: Howard Scharlin and
24 Ken Treister and Jerry Katcher.
25 At that time, the owners, in order to use
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1 the property, not to sell it or increase the
2 price for the acquisition, were seeking to have
3 the property rezoned from its 1936 single family
4 zoning, to the same uses that existed in central
5 Coconut Grove, which was a mixed use development
6 that would open up the property to the bay with
7 an esplanade with boutique shops on the first
8 level, and residential on the top level.
9 During -- the Miami Herald approved that
10 rezoning; the Planning Commission approved that
11 rezoning; and at first reading, the
12 City Commission approved that zoning.
13 And then the agreement was struck with the
14 State to acquire the property as a replacement
15 for the bayfront property that the State had
16 released. And it was provided that the City
17 would set this property -- the acquisition of
18 this property as its first priority to acquire,
19 and the State would put it on the CARL list and
20 fund it.
21 The State would pay half, the City would
22 pay half. And if the City didn't have its half,
23 the State would pay all of it, and the State
24 would then recoup the money by the revenues from
25 the Bayside marketplace.
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1 The owners' zoning was denied.
2 Commissioner Carollo said: You know, it seems
3 to me that if we want to buy that land, we
4 cannot afford to rezone it now.
5 And they can --
6 (Commissioner Crawford exited the room.)
7 MR. BRIGHAM: -- grow bananas on it. We
8 filed a suit for judicial review, as anyone
9 would do. It took the courts a long time. The
10 City won that. We did not get the rezoning.
11 But in eleven years, the City has done
12 nothing to proceed to acquire the property, and
13 the Trustees have not done anything in
14 eleven years to replace the asset that they gave
15 to the City of Miami, and we wish to give that
16 status report. I have it here.
17 We have checked recent sales that have
18 occurred around the rim of Biscayne Bay that are
19 single family zoning. And we find that their
20 prices reflect now that this property is worth
21 12 to $14 million.
22 Had it been acquired when the State thought
23 the City should do so, had the City been
24 forthcoming to try to acquire it from the
25 owners, the price would have been much less.
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1 So the assets of the public trust of the
2 Trustees of the Internal Improvement Fund have
3 suffered a loss on account of it.
4 We have now filed --
5 (Commissioner Crawford entered the room.)
6 MR. BRIGHAM: -- or we have instituted a
7 court proceeding here in Leon County between
8 these owners and the state, hoping that that
9 would serve as a vehicle to resolve this
10 matter. An
