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                                 DIVISION OF BOND FINANCE
                              OFFICE OF FINANCIAL REGULATION
                             OFFICE OF INSURANCE REGULATION


                         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 Wednesday, November 12th, 2003 commencing at
               approximately 9:40 a.m.



                                       Reported by:

                                    KRISTEN L. BENTLEY
                                 Certified Court Reporter


                            ACCURATE STENOTYPE REPORTERS, INC.
                                2894 REMINGTON GREEN LANE
                          TALLAHASSEE, FL  32308   (850)878-2221





                         Representing the Florida Cabinet:

                         JEB BUSH

                         CHARLES H. BRONSON
                         Commissioner of Agriculture

                         CHARLIE CRIST
                         Attorney General

                         TOM GALLAGHER

                                          * * *















                              ACCURATE STENOTYPE REPORTERS, INC.


                                        I N D E X

               (Presented by Tim Tinsley)

               ITEM                  ACTION                 PAGE
               1                     approved               5
               2                     approved               5
               3                     approved               5

               (Presented by Don Saxon)

               ITEM                  ACTION                 PAGE
               1                     approved               6
               2                     approved               6
               3                     approved               6

               (Presented by Kevin McCarty)

               ITEM                  ACTION                 PAGE
               1                     approved               16
               2                     approved               16
               3                     approved               16
               4                     approved               16

               (Presented by Teresa Tinker)

               ITEM                  ACTION                 PAGE
               1                     approved               19
               2                     approved               19

               (Presented by Sherman Wilhelm)

               ITEM                  ACTION                 PAGE
               1                     approved               20
               2                     approved               24




                              ACCURATE STENOTYPE REPORTERS, INC.



               (Presented by David Struhs)

               ITEM                  ACTION                 PAGE
               1                     approved               25
               2                     approved               28
               3                     approved               36
               4                     approved               70
               5                     approved               90



               CERTIFICATE OF REPORTER                       106
















                              ACCURATE STENOTYPE REPORTERS, INC.

                     DIVISION OF BOND FINANCE - NOV. 12, 2003
          1                       P R O C E E D I N G S

          2              (The agenda items commenced at 9:40 a.m.)

          3              GOVERNOR BUSH:  The next cabinet meeting is

          4         Tuesday, November 25th, 2003.

          5              Division of Bond Finance.

          6              TREASURER GALLAGHER:  Motion on the minutes.

          7              COMMISSIONER BRONSON:  Second.

          8              GOVERNOR BUSH:  Moved and seconded.  Without

          9         objection, Item 1 passes.

         10              MR. TINSLEY:  Item No. 2.  Adoption of a

         11         resolution authorizing the issuance of $8 million,

         12         University of Central Florida Student Health Center

         13         revenue bonds.

         14              TREASURER GALLAGHER:  Motion on 2.

         15              COMMISSIONER BRONSON:  Second.

         16              GOVERNOR BUSH:  Moved and seconded.  Without

         17         objection, the motion passes.

         18              MR. TINSLEY:  Item No. 3.  Report of award on the

         19         competitive sale of $200 million of Lottery revenue

         20         bonds.

         21              TREASURER GALLAGHER:  Motion on 3.

         22              COMMISSIONER BRONSON:  Second.

         23              GOVERNOR BUSH:  Moved and seconded.  Without

         24         objection, the motion passes.  Thank you.

                              ACCURATE STENOTYPE REPORTERS, INC.

                  OFFICE OF FINANCIAL REGULATION - NOV. 12, 2003
          1              GOVERNOR BUSH:  Office of Financial Regulation.

          2              Good morning.

          3              MR. SAXON:  Good morning.  Item 1 is the adoption

          4         of amendments to Rule 3C-560.102 and 3C-560.201,

          5         Florida Administrative Code.

          6              TREASURER GALLAGHER:  Motion on 1.

          7              COMMISSIONER BRONSON:  Second.

          8              GOVERNOR BUSH:  Moved and seconded.  Without

          9         objection, the motion passes.

         10              MR. SAXON:  No. 2, adoption of amendments to Rules

         11         3D-40.031, 3D-40.051, 3D-40.100, 3D-40.200, and

         12         3D-40.220, Florida Administrative Code.

         13              TREASURER GALLAGHER:  Motion on 2.

         14              ATTORNEY GENERAL CRIST:  Second.

         15              GOVERNOR BUSH:  Moved and seconded.  Without

         16         objection, the motion passes.

         17              MR. SAXON:  Adoption of amendments to Rules

         18         3E-600.002, Florida Administrative Code.

         19              TREASURER GALLAGHER:  Motion on 3.

         20              COMMISSIONER BRONSON:  Second.

         21              GOVERNOR BUSH:  Moved and seconded.  Without

         22         objection, the item passes.

         23              Thank you, Don.

         24              MR. SAXON:  Thank you.  Also before you, you have

         25         the quarterly report that we have submitted.  If you
                              ACCURATE STENOTYPE REPORTERS, INC.

                  OFFICE OF FINANCIAL REGULATION - NOV. 12, 2003
          1         would allow, I'd just like to mention a couple of

          2         things about it.

          3              GOVERNOR BUSH:  Sure.

          4              MR. SAXON:  As you notice, it will give you

          5         information about new initiatives that the Agency has

          6         taken.  It talks about significant events.  And it also

          7         provides some charts as to statistics and how we're

          8         doing.

          9              You'll notice on the first page there is a general

         10         summary of the office.  The key thing for us there is

         11         we continue to work with our congressional friends in

         12         Washington to make sure that we have the tools we need

         13         to protect the industries that we regulate here in the

         14         state of Florida, primarily banking and securities.  In

         15         fact, we were successful with one house bill in

         16         Washington and that was 2179, which was going to put

         17         restrictions on how we could administer remedies in the

         18         state of Florida.  We were successful in getting that

         19         amendment to that bill to have that particular

         20         provision removed.

         21              You'll also notice on our financial institutions,

         22         probably the biggest significant event for us there is

         23         the fact that of the new institutions that are coming

         24         into the state of Florida, 86 percent of them have

         25         chosen to be state-regulated rather than federally
                              ACCURATE STENOTYPE REPORTERS, INC.

                  OFFICE OF FINANCIAL REGULATION - NOV. 12, 2003
          1         regulated.  And I think that's reflective of our office

          2         and the kinds of staff we have, that we can provide the

          3         kinds of services to meet the demands of those

          4         industries in the banking area that we regulate.

          5              You'll notice in Finance and Securities on the

          6         next page, you'll see a number of actions that we have

          7         taken.  We've gotten sanctions including incarceration

          8         for people who have perpetrated either securities

          9         fraud, finance fraud, or banking fraud.  And we believe

         10         that is imperative to --

         11              TREASURER GALLAGHER:  I have a question.  On your

         12         finance fraud and your other fraud deals.  You got

         13         arrests -- where are you on arrests and prosecutions

         14         and those kinds of things?  How old are some of these

         15         cases?

         16              MR. SAXON:  Cases we have can vary anywhere from

         17         two weeks to as much as two years depending on the

         18         circumstances of the case and the involvement and

         19         what's going on with it.

         20              TREASURER GALLAGHER:  Now, two years like two

         21         years for you to investigate or two years to get them

         22         prosecuted?

         23              MR. SAXON:  Two years to get it prosecuted.

         24              TREASURER GALLAGHER:  Is there a statute of

         25         limitations on these?
                              ACCURATE STENOTYPE REPORTERS, INC.

                  OFFICE OF FINANCIAL REGULATION - NOV. 12, 2003
          1              MR. SAXON:  There can be, yes, sir, criminally and

          2         civilly.

          3              TREASURER GALLAGHER:  So what you're saying is you

          4         have it investigated and then there is like two years

          5         to get it prosecuted?

          6              MR. SAXON:  In some cases, that is correct, yes,

          7         sir.

          8              TREASURER GALLAGHER:  Well, is this a problem with

          9         our local prosecutors or nobody cares about them?  Or

         10         what's the issue?

         11              MR. SAXON:  It would depend on the circumstances

         12         in that particular area.  And we work with the state

         13         attorneys that are local.  We work with the U.S.

         14         Attorney's Office.  We work with the Attorney General's

         15         Office, statewide prosecutor.  Just depends on the

         16         given situation and there are circumstances as to how

         17         soon those cases get prosecuted.

         18              TREASURER GALLAGHER:  So we got a fed problem, a

         19         local problem, a statewide problem and a state problem?

         20         So let's say the longest case you have, is it a federal

         21         problem?  Are we having problems with federal

         22         prosecutors?  Are we having problems with state or with

         23         local?

         24              MR. SAXON:  I'd have to go back and take a look to

         25         see exactly the given cases and time frames and which
                              ACCURATE STENOTYPE REPORTERS, INC.

                  OFFICE OF FINANCIAL REGULATION - NOV. 12, 2003
          1         ones --

          2              TREASURER GALLAGHER:  Could you get us a list of

          3         the cases so we can see why they are not being

          4         prosecuted?

          5              MR. SAXON:  Excuse me?

          6              TREASURER GALLAGHER:  Could you get us a list?  Is

          7         it a public record of who is ready to be prosecuted?

          8              MR. SAXON:  Yes, sir.

          9              TREASURER GALLAGHER:  Could you get us a list of

         10         how many cases you have are sitting there waiting?

         11              MR. SAXON:  Sure.  That's not a problem.

         12              TREASURER GALLAGHER:  Thank you.

         13              GOVERNOR BUSH:  Thank you.  Any other?  Are you

         14         finished with the report?

         15              MR. SAXON:  I had just a few more comments.

         16              GOVERNOR BUSH:  Okay, please.

         17              MR. SAXON:  The next page you have the regulatory

         18         review.  The key thing there is we continue to process

         19         applications at an accelerated rate.  Mortgage brokers,

         20         because of the rates at this time, where we might

         21         normally do 300 applications, today we're doing about

         22         2500 a month.  You noticed we process 45,000 renewals,

         23         filings, and public records requests.  But I think it's

         24         important to notice that we did reject or deny almost

         25         800 applications.  And to me that suggests that, you
                              ACCURATE STENOTYPE REPORTERS, INC.

                  OFFICE OF FINANCIAL REGULATION - NOV. 12, 2003
          1         know, we're not just administratively processing this

          2         as paper.  We're actually looking out and making sure

          3         that only the right people get licensed to do business

          4         in the state of Florida.

          5              TREASURER GALLAGHER:  Now, if I may ask you there.

          6         Most of those are based on the fingerprint; is that

          7         correct?

          8              MR. SAXON:  It can be based on their criminal

          9         background.  It can based on civil litigation, other

         10         regulatory agencies may have administered sanctions

         11         against them to the point that we don't believe they

         12         should be doing business in the state of Florida.

         13              TREASURER GALLAGHER:  How do we find those out?

         14         On their application or because of the fingerprint

         15         return?

         16              MR. SAXON:  In some cases, we find it out through

         17         the fingerprint cards.  In other cases, we find out

         18         through records checks, our own internal databases that

         19         we have information and intelligence.

         20              TREASURER GALLAGHER:  Are we using those same

         21         fingerprint stuff that Education and we're using for

         22         agents?

         23              MR. SAXON:  At this time, we're using the manual

         24         system.  But we are speaking with your licensing people

         25         to see if we can go with their process.  In fact, we
                              ACCURATE STENOTYPE REPORTERS, INC.

                  OFFICE OF FINANCIAL REGULATION - NOV. 12, 2003
          1         have a licensing bill that we're going to be filing

          2         this year to give us the authority to make sure that if

          3         we so choose, we can go with the electronic process.

          4         And we believe that's the best way of doing business.

          5              TREASURER GALLAGHER:  How long is it taking you to

          6         get yours back?

          7              MR. SAXON:  A fingerprint card?

          8              GOVERNOR BUSH:  Right.

          9              MR. SAXON:  It depends on information we're

         10         requesting.  If it's simply asking for state

         11         information, it can take up to two months.  If we're

         12         asking for information federally, it can take even

         13         longer.

         14              TREASURER GALLAGHER:  So people don't get a

         15         license or you give them a temporary license or you

         16         give them some kind of --

         17              MR. SAXON:  Generally, because of the nature of

         18         the application, it takes time to process other parts

         19         of it anyway.  And normally we get the information back

         20         on the fingerprint cards beforehand, but there are

         21         those occasions where we don't.  And fortunately in

         22         those cases, fingerprint cards come back and there's

         23         nothing there that would be an issue for us.

         24              However, in those events where we do, we then have

         25         to go back and revoke that license.
                              ACCURATE STENOTYPE REPORTERS, INC.

                  OFFICE OF FINANCIAL REGULATION - NOV. 12, 2003
          1              TREASURER GALLAGHER:  We had that problem in

          2         Insurance.  We finally started giving people a license

          3         subject to with a consent order.  And it was a huge

          4         number of people.  And then we had to go get their

          5         licenses back which was a -- took quite a few lawyers

          6         quite a bit of time.  And when we moved to electronic,

          7         I mean, we're getting 24-hour turnaround.  And we know

          8         right from the beginning if they're not going to

          9         qualify.  It saves a lot of trouble.

         10              GOVERNOR BUSH:  Do you need statutory change to do

         11         that?

         12              MR. SAXON:  Just to make sure that we don't have

         13         any problems, we feel it's better to do that.  But we

         14         are in the process of working with the Treasurer's

         15         Office to give ourselves the authority to have

         16         everything ready to go so that when we get this

         17         legislation passed --

         18              GOVERNOR BUSH:  Why don't you start beforehand?

         19              TREASURER GALLAGHER:  Yeah.  We made a deal with

         20         Education way back to use one contract between -- and I

         21         think that was for Insurance and Education.  And now

         22         it's Financial Services and Education.  And I do

         23         believe that you ought to be able to piggyback on the

         24         Financial Services deal if you want to.

         25              MR. SAXON:  And we are looking at that.
                              ACCURATE STENOTYPE REPORTERS, INC.

                  OFFICE OF FINANCIAL REGULATION - NOV. 12, 2003
          1              TREASURER GALLAGHER:  Great.  I mean, at least get

          2         it turned around in 48 hours instead of two months.

          3              MR. SAXON:  I agree with you.

          4              TREASURER GALLAGHER:  That just doesn't make

          5         sense.

          6              MR. SAXON:  Absolutely.

          7              TREASURER GALLAGHER:  Okay.  We'll work on that.

          8              GOVERNOR BUSH:  Yeah, I mean, if you -- the

          9         Legislature will support this so I don't think there is

         10         any problem with going forward and then you can embed

         11         it in the statutes.  But I think you probably already

         12         have the authority to do it --

         13              TREASURER GALLAGHER:  I think there is but there's

         14         probably a fee.  It's probably a fee issue.  Costs more

         15         money to do it --

         16              MR. SAXON:  Primarily it is the fee issue because

         17         there will be more costs involved than what they pay

         18         now.

         19              TREASURER GALLAGHER:  But we can let the people

         20         pay.  If they want the service, let them pay for the

         21         additional cost and then they'll get their fingerprint

         22         back quicker.

         23              MR. SAXON:  That could be their option if they so

         24         choose, yes, sir.

         25              TREASURER GALLAGHER:  They wouldn't have to, but
                              ACCURATE STENOTYPE REPORTERS, INC.

                  OFFICE OF FINANCIAL REGULATION - NOV. 12, 2003
          1         if they choose to, they can get it quicker.  All right.

          2         We'll figure out something.  Thank you.

          3              MR. SAXON:  The last page would be the Bureau of

          4         Financial Investigations.  Again, you'll notice there a

          5         number of prosecutions for criminal activity involving

          6         banking securities and finance fraud.

          7              The key thing I'd like to mention there is down at

          8         the bottom, special recognition, you'll notice Andrea

          9         Appleman (phonetic) who was given the Outstanding Law

         10         Enforcement Officer Award by the U.S. Attorney's Office

         11         for the southern district.  This is as a result of her

         12         participation in a program called Operation Flipper in

         13         which they investigated mortgage fraud and nine people

         14         were convicted.  I'd also mentioned we had another

         15         investigator, Chris Hancock, who received the same

         16         award for the northern district, U.S. Attorney's Office

         17         in Pensacola, and we are very proud of him.

         18              And with that, if you have any other questions,

         19         I'll be glad to answer them.

         20              GOVERNOR BUSH:  Any questions?  Thank you very

         21         much, Don.

         22              MR. SAXON:  Thank you.



                              ACCURATE STENOTYPE REPORTERS, INC.

                  OFFICE OF INSURANCE REGULATION - NOV. 12, 2003
          1              GOVERNOR BUSH:  Office of Insurance Regulation.

          2         Good morning, Kevin.

          3              MR. McCARTY:  Good morning, Governor.

          4              TREASURER GALLAGHER:  Motion on the minutes.

          5              ATTORNEY GENERAL CRIST:  Second.

          6              GOVERNOR BUSH:  Moved and seconded.  Without

          7         objection, the motion passes.

          8              MR. McCARTY:  Item No. 2, seek approval of

          9         adoption of amendments to Rule 4-189, records and

         10         reports for information on workers' compensation

         11         insureds.

         12              TREASURER GALLAGHER:  Motion on 2.

         13              ATTORNEY GENERAL CRIST:  Second.

         14              GOVERNOR BUSH:  Moved and seconded.  Without

         15         objection, the item passes.

         16              MR. McCARTY:  Agenda Item No. 3, approval for

         17         adoption of amendments to Rule 4-193.065, continuing

         18         care contracts and incorporate forms by reference.

         19              TREASURER GALLAGHER:  Motion on 3.

         20              COMMISSIONER BRONSON:  Second.

         21              GOVERNOR BUSH:  Moved and seconded.  Without

         22         objection, the motion passes.

         23              THE WITNESS:  Item No. 4, approval for adoption of

         24         amendments to Rule 4-202, donor annuity organization.

         25              TREASURER GALLAGHER:  Motion on 4.
                              ACCURATE STENOTYPE REPORTERS, INC.

                  OFFICE OF INSURANCE REGULATION - NOV. 12, 2003
          1              COMMISSIONER BRONSON:  Second.

          2              GOVERNOR BUSH:  Moved and seconded.  Without

          3         objection, the item passes.

          4              MR. McCARTY:  Item No. 5 is approval for adoption

          5         of amendments to rule Chapter 4-164, valuation and

          6         nonforfeiture.

          7              TREASURER GALLAGHER:  Motion on 5.

          8              COMMISSIONER BRONSON:  Second.

          9              GOVERNOR BUSH:  Moved and seconded.  Without

         10         objection, the item passes.

         11              MR. McCARTY:  Thank you, Governor.

         12              GOVERNOR BUSH:  Thank you, Kevin.  You got

         13         anything else going on?

         14              TREASURER GALLAGHER:  I think you should tell him,

         15         we were -- we just talked about accreditation earlier

         16         and the State of Florida was the first state accredited

         17         by the National Association of Insurance Commissioners

         18         back in 1989.  And since then, there's been one other

         19         one.  They do it every five years and they just

         20         finished -- I thought you might want to tell him about

         21         the exam they just finished.

         22              MR. McCARTY:  The review team has just concluded

         23         their audit for our laws as well as examination and

         24         evaluation analysis of financial examination of

         25         companies and is recommending that we be accredited for
                              ACCURATE STENOTYPE REPORTERS, INC.

                  OFFICE OF INSURANCE REGULATION - NOV. 12, 2003
          1         a full five-year term at their quarterly meeting in

          2         December.  But we are very proud of that and had some

          3         very high scores and looking forward to receiving our

          4         third accreditation.

          5              GOVERNOR BUSH:  Congratulations.

          6              MR. McCARTY:  Thank you very much.

          7              GOVERNOR BUSH:  Any other comments, questions?

          8              COMMISSIONER BRONSON:  No, I just wanted him to

          9         tell us the good job they're doing over there.
















                              ACCURATE STENOTYPE REPORTERS, INC.

               FL. LAND & WATER ADJUDICATORY COMM. - NOV. 12, 2003
          1              GOVERNOR BUSH:  Florida Land and Water

          2         Adjudicatory Commission.

          3              TREASURER GALLAGHER:  Motion on the minutes.

          4              COMMISSIONER BRONSON:  Second.

          5              GOVERNOR BUSH:  Moved and seconded.  Without

          6         objection, the item passes.  Item 2.

          7              MS. TINKER:  Item 2, recommend approval of the

          8         proposed final rule establishing the Town Center at

          9         Palm Coast Community Development District in the city

         10         of Palm Coast in Flagler County.

         11              TREASURER GALLAGHER:  Do we have any speakers on

         12         this?

         13              MS. TINKER:  No, sir.

         14              TREASURER GALLAGHER:  I'll move Item 2.

         15              ATTORNEY GENERAL CRIST:  Second.

         16              GOVERNOR BUSH:  Moved and seconded.  Any

         17         discussion?

         18              Without objection, the item passes.

         19              MS. TINKER:  Thank you.






                              ACCURATE STENOTYPE REPORTERS, INC.

                  DEPT. OF AG AND CONSUMER SVCS - NOV. 12, 2003
          1              GOVERNOR BUSH:  Agriculture and Consumer Services.

          2              TREASURER GALLAGHER:  Motion on the minutes.

          3              ATTORNEY GENERAL CRIST:  Second.

          4              GOVERNOR BUSH:  Moved and seconded.  Without

          5         objection, the motion passes.  Item 2.

          6              MR. WILHELM:  Item 2 is staff is requesting

          7         authority to issue one two-acre ten-year lease in Levy

          8         County for hard clam culture to Rose Malone.

          9              TREASURER GALLAGHER:  Now, this went through a few

         10         crazy mastications to get here, right?

         11              MR. WILHELM:  Yes, sir.

         12              TREASURER GALLAGHER:  You want to just lightly

         13         explain how we're here?

         14              MR. WILHELM:  Sure.  We are here because the

         15         original lessee gave up his lease to a company back in

         16         '97.  That company transferred this lease to a lady,

         17         Rose Malone, who has been working it for over a year.

         18         The company --

         19              TREASURER GALLAGHER:  Don't we have to be involved

         20         in transfers?

         21              MR. WILHELM:  Yes, sir, and that was NCI.  If you

         22         recall, back in '97 NCI came before the Cabinet and

         23         they asked for the transfer of 17 leases from

         24         individuals, separate individuals, to this corporation.

         25         It was at a cabinet meeting.  The cabinet approved the
                              ACCURATE STENOTYPE REPORTERS, INC.

                  DEPT. OF AG AND CONSUMER SVCS - NOV. 12, 2003
          1         transfer back before there was a division of

          2         aquaculture.

          3              They transferred those leases.  NCI did not do a

          4         very good job filing them with the circuit court in

          5         Levy County.  And so when these transfers started

          6         occurring from NCI back to other individuals, the

          7         owner, or the leasee in this case of record, wasn't

          8         always the correct one.

          9              So, yes, I know, yes, sir.  So what happened was

         10         the paperwork got ahead of itself.  They transferred it

         11         to Rose Malone before Rose Malone actually had it.  And

         12         Mr. Perez, in the meantime, went to a county court, got

         13         a judge to have a hearing, issued an ejectment of NCI

         14         when NCI actually did not have authority or even the

         15         title to the property or any other little piece of the

         16         property.  And so the judge issued an order to NCI to

         17         give it back to Mr. Perez.  NCI didn't hold it.

         18              The Court made a mistake in that the Court didn't

         19         enjoin the Department.  They did not enjoin Rose Malone

         20         and they did not enjoin you-all.  So there is no issue

         21         here from a court saying that the trustees have to give

         22         it back to Mr. Perez.  There is no issue requiring

         23         staff at the Department of Agriculture to give it back

         24         to Mr. Perez.  And there's no court decision giving a

         25         decision to Ms. Malone saying you have to give it back.
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                  DEPT. OF AG AND CONSUMER SVCS - NOV. 12, 2003
          1         It was to NCI which was not the holder of record.

          2              And so yes, sir, it's really ugly.  And the bottom

          3         line was Mr. Perez wants his lease back.  Ms. Malone

          4         has been working a lease for over a year and she is

          5         actively growing clams on her lease.  And our

          6         determination was the best way to do it is we had

          7         already terminated some leases in the same area for

          8         people not paying their lease fees.  And what we did is

          9         we took one of those leases, the two-acre leases, and

         10         we took it off the books because it is not conducive to

         11         clam growing.  It's only conducive to oyster growing.

         12              And we set up a two-acre lease that we could give

         13         Ms. Malone so that she could move her clams from her

         14         lease less than a half a mile from one spot to another

         15         so she could stay in the business and put Mr. Perez

         16         back to being whole again.

         17              TREASURER GALLAGHER:  Now, isn't it a little hard

         18         to move clams?

         19              MR. WILHELM:  No, sir, they're in bags.

         20              TREASURER GALLAGHER:  Okay.  I was thinking you

         21         have to go dig them all up and move them.  Might as

         22         well just pick them and keep them.

         23              MR. WILHELM:  And there's all kinds of theft and

         24         insurance issues that relate to the bags and how easy

         25         it is to go pick up a couple thousand dollars' worth of
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                  DEPT. OF AG AND CONSUMER SVCS - NOV. 12, 2003
          1         bags.

          2              GOVERNOR BUSH:  Commissioner.

          3              COMMISSIONER BRONSON:  Governor, I want to make a

          4         motion to approve Item 2 with the comment that this

          5         issue has been worked very hard by our Department.  And

          6         to follow the guidelines of the court order and to make

          7         sure everyone becomes whole in this situation, it's

          8         apparent this is about the only way we can do it where

          9         everybody feels like they're whole again and still

         10         gives the effort of raising clams on this new portion

         11         of the lease which is really not a brand-new lease, but

         12         a lease that was given up by someone else and can be

         13         used.

         14              With the direction of the Cabinet, I want to go

         15         ahead and make this motion.  I will tell you this.  We

         16         are following these leases.  All of this took place

         17         before we officially started keeping the records and

         18         getting involved in these clam leases before

         19         Aquaculture became a main player in the Department of

         20         Agriculture.  We are now watching all of these leases

         21         as to who is working them and making sure they are

         22         doing all due diligence on these leases.

         23              So hopefully this will not happen again unless

         24         it's some real weird experience that gets by us.  But

         25         we are watching every one of these leases that are
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                  DEPT. OF AG AND CONSUMER SVCS - NOV. 12, 2003
          1         being given by the Cabinet across the state of Florida.

          2              GOVERNOR BUSH:  There's a motion.  Is there a

          3         second?

          4              TREASURER GALLAGHER:  Second.

          5              GOVERNOR BUSH:  Moved and seconded.  Any other

          6         discussion?  Without objection, the motion passes.

          7              MR. WILHELM:  Thank you very much.

          8              GOVERNOR BUSH:  Thank you.

















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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1              GOVERNOR BUSH:  Board of Trustees.

          2              MR. STRUHS:  Good morning.

          3              GOVERNOR BUSH:  Good morning.

          4              MR. STRUHS:  Item 1 is an option agreement to

          5         acquire .22 acres for the benefit of the Florida Board

          6         of Education and Florida Agriculture and Mechanical

          7         University.  We recommend approval of the item.

          8              TREASURER GALLAGHER:  Motion on one.

          9              ATTORNEY GENERAL CRIST:  Second.

         10              GOVERNOR BUSH:  Moved and seconded.  Without

         11         objection, the item passes.

         12              MR. STRUHS:  Item 2, Governor and Cabinet, is an

         13         extraordinary case study of how our national security

         14         and our environmental protection missions are

         15         complimentary here in Florida.  As you know, we have

         16         been -- you have been working for these many years to

         17         protect, among other things, the Perdido Pitcher Plant

         18         Prairie and the Garcon Swamp in particular.  This item

         19         actually will accomplish that in a very important way

         20         by acquiring 226 acres in that Florida Forever project

         21         from the Nature Conservancy granting a conservation

         22         easement over that property to the United States Navy

         23         so that they have the benefit of ensuring that in the

         24         future that land is never developed.  It's important

         25         for their flight training.
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1              In exchange for that, the Navy would provide to

          2         the State of Florida fee title over a portion, at least

          3         160 acres over the Navy's Bronson Field in order for

          4         the first time to provide us upland access to the

          5         Tarkin Bayou State Park.  So it is clearly a very

          6         important win/win item.  We're fortunate to have

          7         Captain John Pruitt here who is the commander of the

          8         Pensacola Naval Air Station and we'd invite him to

          9         speak on the item.

         10              GOVERNOR BUSH:  Good morning, Captain.

         11              CAPTAIN PRUITT:  Good morning, Governor.  How are

         12         you?

         13              GOVERNOR BUSH:  Doing great.

         14              CAPTAIN PRUITT:  Governor and cabinet members,

         15         it's great for me to be here today and speaking on

         16         behalf of this.  The 226-acre parcel in the Garcon

         17         Swamp is actually -- a good portion of it underlies our

         18         actual flight pattern in Pensacola.  So it's an

         19         extremely important issue to us.

         20              In addition, we are more than happy to continue to

         21         work with the State on the granting of easement or

         22         actually the transfer of fee simple to the State for

         23         the access to the Bronson -- through Bronson Field to

         24         the Tarkin Bayou area.  And, again, that's being again

         25         worked by our staff.  As Secretary Struhs has pointed
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         out, this is a great win/win.  In fact, I will go so

          2         far as to say that the combination of the Navy, the

          3         Florida Department of Environmental Protection, and the

          4         Nature Conservancy is such a winning organization it's

          5         only rivaled by the Florida Marlins (Laughter) in the

          6         way that they continue to get win after win.  So,

          7         again, I'm here to dig in my --

          8              GOVERNOR BUSH:  Are you saying you're all

          9         underpaid?

         10              (Laughter.)

         11              CAPTAIN PRUITT:  I have to take that up with

         12         another governmental organization, not the State of

         13         Florida.

         14              Again, sir, I just can't say enough about my

         15         strongest possible support for this initiative and we

         16         look forward to continuing to work with the State and

         17         the Nature Conservancy in the future and this and many

         18         other initiatives that will both protect the

         19         environment and protect our national security.  Thank

         20         you.

         21              GOVERNOR BUSH:  Thank you, Captain.

         22              ATTORNEY GENERAL CRIST:  Motion on two.

         23              GOVERNOR BUSH:  There's a motion.  Is there a

         24         second?

         25              COMMISSIONER BRONSON:  Second.
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1              GOVERNOR BUSH:  Moved and seconded.  Without

          2         objection, the item passes.

          3              Thank you, David.  This has been an interesting

          4         process of listening to the concerns of the captain's

          5         predecessor in terms of encroachment several years ago.

          6         And we really have created a win/win to protect the

          7         base and the economic value that it brings.  Protect

          8         our country to make sure the military can operate and

          9         to do so in a way that also protects the natural

         10         environment.  I guess we're going to have a little

         11         conversation about that at the end of the meeting as

         12         well.  It's nice when we have the convergence of these

         13         good ideas together.

         14              MR. STRUHS:  If I might add, sir, I'd like to

         15         personally and publicly thank you.  My job, our job at

         16         the Department in getting these kinds of projects done

         17         is made so much easier thanks to your efforts to meet

         18         with the military base commanders here in Florida

         19         several times during the year.  And as you know, this

         20         particular project has been on your agenda these last

         21         couple of years and your personal engagement in helping

         22         advance this has been --

         23              GOVERNOR BUSH:  Onward.  Let's go.

         24              (Laughter.)

         25              MR. STRUHS:  Just wanted to say thank you.
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1              Item 3 is an opportunity to acquire 7,597 acres

          2         within the St. Joe Timberland Florida Forever Project

          3         from the Nature Conservancy charitable trust.  This

          4         particular piece of property is probably one of the

          5         highest ranked biodiversity hot spots, not just in

          6         Florida, but indeed anywhere in the nation.  And we are

          7         very excited about putting this into conservation.  It

          8         includes 4300 feet of frontage along the intercoastal

          9         waterway and 1600 feet along the Apalachicola River

         10         along with many other very important biological

         11         attributes.

         12              It too will, in a small way, contribute to the

         13         ongoing protection of the military mission by providing

         14         lands that will be free from development over important

         15         flightways.  So we're very excited about this.  I

         16         recommend it to you for your approval.  We do have a

         17         couple of speakers to this item.  David McLain is here

         18         from the Apalachicola Bay River Keepers as well as Don

         19         Ashley from the Franklin County Wildlife Federation.

         20              MR. McLAIN:  Governor and Cabinet.  Thank you for

         21         this opportunity to speak in favor of this land and

         22         being able to keep it in trust and being able to allow

         23         us in Franklin County to protect and preserve the river

         24         and the bay.  But this is an exceptional opportunity

         25         and we strongly urge that you be able to do that.  I
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         will speak later having to do with another one.  But

          2         that one we certainly are in favor of.  Thank you very

          3         much.

          4              GOVERNOR BUSH:  Thank you, sir.

          5              MR. ASHLEY:  Governor, members of the cabinet, I'm

          6         speaking for the Florida Wildlife Federation but I also

          7         live on St. James Island in Franklin County.  And we do

          8         want to encourage the State to continue to work with

          9         this county in protecting these important conservation

         10         areas.  I know it's very difficult, perhaps, to look at

         11         Franklin County as maybe the entire breadbasket for the

         12         Gulf of Mexico.  But these forested floodplains from

         13         the Apalachicola River to the Ochlockonee Bay are

         14         absolutely essential to the health of the Gulf of

         15         Mexico and Apalachicola Bay.  So while this is only

         16         7,000 acres --

         17              GOVERNOR BUSH:  Only?

         18              (Laughter.)

         19              MR. ASHLEY:  There is an additional several tens

         20         of thousands of acres around Lake Wimico that are also

         21         essential to Apalachicola Bay.  So we thank you for

         22         this effort and encourage you to continue to look at

         23         Franklin County.  Tate's Hell doesn't exactly have the

         24         ring of "the river of grass."  But I can assure you

         25         from my experience in the Panhandle, this area is
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         closest from Apalachicola River to the Suwannee River

          2         of being the Everglades or the Panhandle.  Those

          3         forested floodplains are actually at the heart of the

          4         Gulf of Mexico, so thank you.

          5              GOVERNOR BUSH:  Let me ask you a question.  We

          6         have been buying lots of land.  This is a high priority

          7         and it's been unanimous, there's not been any dissent

          8         except for maybe occasionally a price discussion.

          9              What is Franklin County's -- I see Representative

         10         Kendrick here.  He may want to come and talk about this

         11         or someone from local government who is here.  We're

         12         buying land that -- to protect it from future

         13         development.  But that also implies that the county

         14         would allow for this land to be developed in some kind

         15         of way.  And, you know, while it is important for us to

         16         make sure that we don't purchase -- that we do purchase

         17         land that's in the path of development, is this

         18         property -- are we worried about a threat that could be

         19         dealt with at the local level, not to say we still

         20         wouldn't purchase the properties, but what's going on

         21         in growth management in Franklin County?  Has there

         22         been an upgrade since the 1980s?

         23              MR. ASHLEY:  Governor, the biggest upgrade is

         24         Franklin County has tried for the last year, through a

         25         series of visioning processes, I mean, these meetings
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         have been going on for over a year.  And I don't think

          2         we've ever had less than 50 residents, sometimes 100 to

          3         150.  And for a small county like Franklin County,

          4         that's a lot of people to come to thousands of hours of

          5         meetings.  And the intent was to try to find this

          6         balance between commerce and conservation because

          7         Franklin County and the State of Florida need to

          8         protect these vital areas.  But we need economic

          9         development too.  We need to increase the high school

         10         graduation rate.  We need more affordable housing.  We

         11         need jobs for the children of commercial fishermen and

         12         loggers.  Where are they going to work in the future?

         13         And if they did have a job, where are they going to buy

         14         a house they can afford to live in?

         15              The short answer is we're, in Franklin County,

         16         trying to find these balances between commerce and

         17         conservation and the State has a role, I think, in

         18         protecting the major areas.  But the community then has

         19         a role to incorporate that into an economic development

         20         plans that benefits people and wildlife.  And I hope

         21         that's not too long of an answer.  But that is what we

         22         are trying to do and we continue to try to do that

         23         through the next year.

         24              GOVERNOR BUSH:  We also have the issue of the

         25         tristate negotiations and the agreement.  And we need
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         to make sure that as we make our case, that Georgia

          2         needs to allow the natural flows of water to come to

          3         Apalachicola Bay, that we don't make decisions at the

          4         same time that would contradict that or that would

          5         jeopardize, I think, the more righteous position that

          6         we have right now in our negotiations.

          7              TREASURER GALLAGHER:  We had -- I mean for a while

          8         there Franklin County had the problem that the tax base

          9         kept being eroded because we kept owning all the land.

         10         And now I guess some development in south Franklin

         11         helped that quite bit I gather.  Is that true?

         12              MR. ASHLEY:  Yes.  And actually, the tax base in

         13         Franklin County is expanding.  I mean the values on

         14         St. George Island are just absolutely incredible, it is

         15         increasing.  But the gap, Governor, members of the

         16         cabinet, the gap here is between development for second

         17         homes and very nice beach homes.  What about the

         18         commercial fisherman?  What about the loggers?  What

         19         about the next generation that was tied to the land

         20         because nature in Franklin County is a natural part of

         21         those people.  It's not something that they visit with

         22         to kind of think as an environmentalist.  They live it

         23         every day.  And I think you're going to see more people

         24         in Franklin County trying to make these connections of

         25         maintaining this culture of a fishing village that was
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         a vital part of Florida.  So these purchases help.

          2         Thank you very much and thank you for your time.

          3              COMMISSIONER BRONSON:  Governor, I just wanted to

          4         extend on that to say I've met with a lot of the

          5         oystermen and women down in Franklin County and they

          6         have had a very, very tough time the last few years

          7         with red tide and other things closing down their

          8         operations and that's their sole income for a lot of

          9         these people.  And I can guarantee you they're as

         10         interested in making sure that some of these trades

         11         that we do on land and so forth is going to clean up

         12         their waterways because that's their livelihood on the

         13         line.

         14              And I think this cabinet has done a real good job

         15         of balancing all of that.  And I think it can be done

         16         with best management practices and some of the other

         17         things that's been implemented so that you can have

         18         some of both without jeopardizing that water quality

         19         that you were talking about.

         20              REPRESENTATIVE KENDRICK:  Good morning, Governor.

         21              GOVERNOR BUSH:  Looking good.

         22              REPRESENTATIVE KENDRICK:  You-all are too this

         23         morning.  There's two points I want to make in response

         24         to that remark or that question.  Actually, this year,

         25         Franklin County was actually -- the school board was
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         actually able to implement the two mills for facilities

          2         monies without the people even realizing the increase

          3         in their property taxes and I think that speaks

          4         significantly about the increases that we've seen in

          5         property values.

          6              But the most important thing in this particular

          7         purchase, because it involves St. Joe and what St. Joe

          8         is doing in and around Franklin County and west

          9         Florida, is they don't leave town when they sell it,

         10         they reinvest it in the community.  They make sure they

         11         take care of the people in Franklin County.  As you all

         12         know, several years ago -- and I'll talk about this a

         13         little later on in another item.  I was one of the ones

         14         who stood up against, in opposition of some of the

         15         things that were going on there.

         16              GOVERNOR BUSH:  I remember.

         17              REPRESENTATIVE KENDRICK:  And we've seen now that

         18         St. Joe has come to the table.  They are working with

         19         us.  They're looking to make sure we have land, we

         20         don't have a Marathon.  We have a tremendous problem in

         21         Marathon now because their own deputies, school

         22         teachers and those type people can't afford to live

         23         there.  And St. Joe has made the commitment to Franklin

         24         County to allow parts of lands that they own for

         25         affordable housing, not low income, but we're talking
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         about affordable.  People like you and I can afford,

          2         police deputies, teachers, nurses and those type of

          3         people.  And I think that's important for part of that

          4         vision and process to take place and that's what

          5         they're doing.  They've made that commitment already

          6         and they continue to work on a day-to-day basis there

          7         in Franklin County.  We really appreciate the

          8         partnership that they've had there in Franklin County

          9         to address those future needs.  And basically the

         10         commissioners on the Franklin County commission

         11         supports most of these land purchases.

         12              You actually will receive a resolution at the next

         13         cabinet meeting because while this is a small piece of

         14         land that we're looking at purchasing today, I think

         15         we've got a 14,000-acre piece coming at the next

         16         cabinet meeting.  But the County supports that because

         17         of St. Joe's commitment to Franklin County to make sure

         18         that we've got the resources available for affordable

         19         housing and those type things.

         20              GOVERNOR BUSH:  Thank you, Representative.  Any

         21         other discussion?  Is there a motion?

         22              COMMISSIONER BRONSON:  Motion.

         23              ATTORNEY GENERAL CRIST:  Second.

         24              GOVERNOR BUSH:  Moved and seconded.  Without

         25         objection, the motion passes.
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1              MR. STRUHS:  Item No. 4 is a little bit unusual in

          2         that we're actually recommending it for denial.  You

          3         don't see many of those from us.  In this case, I'd

          4         like to explain the rationale why.  The property in

          5         question, which there should be a map in your briefing,

          6         is 96.92 acres within the Fakahatchee Strand Florida

          7         Forever Project.  If you look at the 96, nearly

          8         97 acres, indeed only 16 and a half of those acres are

          9         dry, are developable.  And if you took the purchase

         10         price of $1.5 million and divided it by those 16 and a

         11         half developable acres, you would see a price of

         12         $95,000 per acre.

         13              Our view of it is that these lands are not in any

         14         imminent threat of development and indeed the Division

         15         of Recreation and Parks is not particularly interested

         16         in taking on that management responsibility.  For that

         17         purpose, we're going to recommend denial of this item.

         18              COMMISSIONER BRONSON:  Question.

         19              GOVERNOR BUSH:  Yes, Commissioner.  Treasurer?

         20         Oh, you both have one.

         21              COMMISSIONER BRONSON:  I know that we have looked

         22         at some of these types of issues before and this is, I

         23         believe, 90 percent of the current assessed value.  Now

         24         the way I was looking at this --

         25              TREASURER GALLAGHER:  Assessed or approved?
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1              COMMISSIONER BRONSON:  Of the appraised value, I'm

          2         sorry.  The appraised value was 90 percent.

          3              MR. STRUHS:  That's right.

          4              COMMISSIONER BRONSON:  Now my understanding is

          5         even though part of this area could be or may maintain

          6         its position under protection because of the species

          7         there, that roughly one-third of this land can be

          8         developed.  And if this deal goes down the tube, and

          9         the owner decides and it is theirs to decide okay, if

         10         they don't want it, then we're just going to go ahead

         11         and apply to get our permits to go ahead and develop

         12         this one-third.  I can guarantee you, we will look back

         13         on this and say, Why in the world didn't we buy it when

         14         we had the chance instead of letting the value maybe

         15         double or more with the potential of developing that

         16         one-third of this land there.

         17              Now, I mean, I can understand some of the thinking

         18         that you're showing.  But on the other hand, I don't

         19         want us to turn around and say, Oh my gosh, why didn't

         20         we buy this a year ago or two years ago when we had the

         21         opportunity at 90 percent of the value.

         22              GOVERNOR BUSH:  Is it a third that can be

         23         developed?  Sixteen acres out of 97?

         24              MR. STRUHS:  It would clearly depend on how the

         25         mitigation would be proposed for dealing with the
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         wetlands impacts there.  We didn't go down the path of

          2         figuring out exactly how many acres could be developed.

          3         But clearly 16 and a half would be developable without

          4         any kind of mitigation.

          5              GOVERNOR BUSH:  David, that kind of begs the

          6         question.  If you haven't figured out what can be

          7         developed, how can an appraiser figure out what the

          8         value of the property is?  I mean we're back to the

          9         problem what is the embedded entitlement?  What are the

         10         entitlements on this property now?

         11              MR. STRUHS:  Let me ask staff to speak to that

         12         item in particular.

         13              GOVERNOR BUSH:  I mean, looking at a picture, it

         14         looks like this is pretty important.  You know, has

         15         environmental values.  But how did they get their

         16         entitlements?  What are the entitlements?  What's the

         17         value?  The million-five, what does it buy?

         18              MR. HINES:  Yes, sir.  Good morning.  My name is

         19         Chilton Hines.  I'm the bureau chief in appraisal.

         20         Essentially, the way the appraisers approached this

         21         particular assignment is looking at highest and best

         22         use, multi-family and single family, and they came up

         23         with so many dollars per unit.  There is 16.05 acres of

         24         uplands currently.  It's my understanding that an

         25         additional -- up to an additional three acres can be
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         filled for a total of roughly 19 acres of uplands.

          2              GOVERNOR BUSH:  This is a development right that

          3         has been granted by the local government and the State?

          4              MR. HINES:  I believe so.

          5              GOVERNOR BUSH:  You believe so?

          6              MR. HINES:  Yes, sir.  Yes, sir, that is correct.

          7              GOVERNOR BUSH:  Well, do we know so?

          8              MR. HINES:  Yes, sir, we do know.

          9              GOVERNOR BUSH:  That's better.  I thought there

         10         was some question about the development rights?

         11              MR. HINES:  Nineteen acres can be developed as we

         12         understand it.

         13              GOVERNOR BUSH:  Can we take a pause in the action

         14         here so we can get a picture with the kiddos?  These

         15         are all Charlie Gallagher's buddies.

         16              (Pause.)

         17              COMMISSIONER BRONSON:  I thank you for everybody's

         18         indulgence.

         19              MR. STRUHS:  Governor, if I can ask Chilton to

         20         pick up where he left off.

         21              GOVERNOR BUSH:  Yes, please.  And the focus on

         22         what rights were given for this development that we are

         23         now buying when --

         24              MR. STRUHS:  We're proposing to not buy it

         25         actually.
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          1              GOVERNOR BUSH:  Well, we're considering buying.

          2              TREASURER GALLAGHER:  Can I ask, David, a question

          3         just before he starts?

          4              MR. STRUHS:  Yes, sir.

          5              TREASURER GALLAGHER:  If you don't believe that we

          6         ought to be buying, like it's denial --

          7              MR. STRUHS:  Yes.

          8              TREASURER GALLAGHER:  -- why do you bring it?

          9              MR. STRUHS:  For a couple of reasons.  One, I

         10         think it sends a signal to you that we've heard the

         11         instructions you've given us these last four years to

         12         be very price-sensitive and to make sure that we're

         13         looking at buying conservation lands that indeed are in

         14         the imminent path of development and indeed are

         15         important for Florida's conservation agenda.  It's an

         16         opportunity for us to demonstrate publicly to you that,

         17         in fact, we've heard that message and we're acting on

         18         it.

         19              The other issues in this particular case, a good

         20         amount of time and energy was invested in pursuing this

         21         by your cabinet aides, by the seller and their interest

         22         as well as the Department.  And we also like to

         23         preserve -- while we come in with an opinion, we like

         24         to preserve for you the ultimate decision-making

         25         authority because after all, you are the elected
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         official.

          2              TREASURER GALLAGHER:  So does that mean from now

          3         on you're going to bring more to us or you're not going

          4         to bring them unless you're recommending them?

          5              MR. STRUHS:  We brought this one because it was a

          6         close call.

          7              TREASURER GALLAGHER:  Because this isn't the first

          8         time it's been here.

          9              MR. STRUHS:  It's been before you before and it

         10         has been sent back for additional work.  The result of

         11         that additional work was my conclusion that it was

         12         probably not suitable for acquisition.  And that indeed

         13         if the development wanted to go forward, that would not

         14         be a bad thing.  And I'll ask Chilton then to pick up

         15         where we left off.  He's actually at intermission I

         16         should say.  He was able to pull out the exact language

         17         that was used from the local officials by the

         18         appraisers in determining the property's value.

         19              GOVERNOR BUSH:  All right.  And if you could also

         20         answer the question about a future land use mandatory

         21         preservation blanket over the property.

         22              MR. HINES:  Okay.  And as I understand it, the

         23         City has written a letter here to Mr. Gardner

         24         indicating that, We will not -- I'm going to read part

         25         of this if I may.  We will not zone any of the mangrove
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         swamp without a swamp order -- a court order, I'm

          2         sorry, telling us to do it.  We will zone the upland

          3         consistent with proposed use if it is consistent in

          4         other regards with similar development on uplands

          5         elsewhere in the city.

          6              So the City is essentially saying they will rezone

          7         the property for development.  The appraisers appraised

          8         the property based on highest and best use --

          9              TREASURER GALLAGHER:  Excuse me a second.  Were

         10         they talking about that specific property or were they

         11         talking about property within the city in general?

         12              MR. HINES:  Yes, specifically.

         13              TREASURER GALLAGHER:  Now this is one commissioner

         14         or did they all vote on it?

         15              MR. HINES:  This is from Perry Smallwood, city

         16         staff, planning and zoning.

         17              GOVERNOR BUSH:  So right now the property does not

         18         have -- it's in the process of being rezoned to be able

         19         to allow for the development to take place?

         20              MR. HINES:  It is currently zoned -- let's see.

         21         Low density residential, I believe.

         22              GOVERNOR BUSH:  So it is zoned?

         23              MR. HINES:  Yes, sir.

         24              GOVERNOR BUSH:  Okay.  And what about the future

         25         land use mandatory preservation?
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          1              MR. HINES:  Well, as I understand it, I'm going to

          2         have to defer to someone else to answer that.  I'm

          3         sorry.

          4              GOVERNOR BUSH:  Okay.  Is the landowner here?

          5         Someone representing the landowner.

          6              MR. STRUHS:  Mr. Tom Gardner is here representing.

          7              GOVERNOR BUSH:  Tom, would you like to talk, I

          8         hope.

          9              MR. GARDNER:  Governor, Tom Gardner.  Ron Richman

         10         and Ralph Haben are also here.  So if you beat on me

         11         too bad, they'll drag me off and take my place.  Haben,

         12         Richman, and Tom Gardner represent the landowners --

         13         landowner or owners on this property.  The concern,

         14         it's a little under 100 acres in total.  And actually,

         15         the nonjurisdictional lands are 17.29.  That's the area

         16         of land that could be developed.

         17              The person that developed Pleasure Island, which

         18         I'll speak of in a moment, and also the airport

         19         property indicates in that area they generally can get

         20         about two additional acres through mitigation.  But I

         21         don't think that was necessarily taken into

         22         consideration in the appraisal.  The appraisal was

         23         based on the developable acres which was 17.29, I

         24         believe.  I've got a jurisdictional map here if any of

         25         you are interested in looking at it.
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          1              GOVERNOR BUSH:  I am.

          2              TREASURER GALLAGHER:  Let me put it out on the

          3         table.

          4              (Pause.)

          5              MR. GARDNER:  17.27 acres.

          6              GOVERNOR BUSH:  And those are the areas that are

          7         along the river?

          8              MS. ARMSTRONG:  This is the boundary.

          9              GOVERNOR BUSH:  Right.  But I mean the whited line

         10         areas are the areas that are upland?

         11              MS. ARMSTRONG:  Yes, this --

         12              MR. GARDNER:  That's correct.  These areas in here

         13         are the upland pods that are developable and there are

         14         17.27 acres of it.  I mentioned Pleasure Island, that's

         15         Pleasure Island right there.  Now, the island shows

         16         that it's been cleared of exotic vegetation, but right

         17         now if you had a current picture, and I think all of

         18         your staff have current pictures of that island, it now

         19         has about 10 or 15 two-bedroom single-family residences

         20         on it and more could be added.  And those residences

         21         are selling right now for 350- to 375,000 apiece.

         22              Similar development could take place on these

         23         uplands and the reason we say that, if you look at the

         24         future land use, when this thing came to you before, a

         25         question about future land use came up right before the
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         item came -- it was actually on a Friday or Thursday

          2         before the item came to you on the following Tuesday.

          3         And it was deferred at that point to get the question

          4         of future land use and appraisal resolved.  And I don't

          5         want to put any words in anybody's mouth, but the

          6         appraisal people relooked at it and so forth and they

          7         felt like even with future land use, which is mandatory

          8         preservation, that the upland acres, as presented on

          9         the jurisdictional, could be developed within the city

         10         based on information provided by the city planning

         11         manager.

         12              GOVERNOR BUSH:  Tom, explain to me this, I'm just

         13         trying to learn here.  Mandatory preservation doesn't

         14         mean mandatory preservation?

         15              MR. GARDNER:  Well, it's not defined.

         16              GOVERNOR BUSH:  Then why -- I mean -- is this an

         17         Everglades City term?

         18              MR. GARDNER:  Well, you have to look back in the

         19         '90s, actually back when the State began to work with

         20         all the municipalities on the comprehensive plan.

         21         Everglades City submitted a number of different

         22         versions and the Department of Community Affairs and

         23         the reviewing agencies had a number of comments.

         24              And if you look at this particular piece of

         25         property, it was originally submitted, I think, as
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         urban estates.  That came back to the City saying,

          2         There are a lot of wetlands on this -- or, This

          3         property appears to be all wetlands and you can't have

          4         zoning in wetlands.

          5              The City then changed their map to show under the

          6         jurisdiction beyond the control of the City -- oh,

          7         under agencies -- under agency jurisdiction beyond the

          8         control of the City.  And what they were trying to say

          9         is, This is land that is really going to be determined

         10         the use of by the water management district and Corps

         11         of Engineers.

         12              The Department of Community Affairs sent that back

         13         and said, We don't understand what this definition is

         14         or what this term is.  It came back on one map showing

         15         as mangrove wetlands.  It went back to them, they said,

         16         Mangrove wetlands doesn't work.  The City at the time

         17         didn't have the resources to do a jurisdictional

         18         determination on this land to determine what was

         19         uplands and what was wetlands.  They were in a

         20         situation with the Department of Community Affairs

         21         where they had to finalize their plan, or whatever the

         22         term is, you know, be banned from the State of Florida.

         23              GOVERNOR BUSH:  Whatever that term is.

         24              MR. GARDNER:  Whatever they call that, fits into

         25         that term.  So they submitted a changed future land use
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         on this property showing it as mandatory preservation,

          2         unzoned mandatory preservation.  And they did that in

          3         one day.  And their -- and since that was submitted in

          4         their '93 plan, they actually showed some of this zoned

          5         as single-family.  So in talking with the City manager

          6         and reading the comprehensive plan, I asked him, How

          7         can you go -- and this is something that came to our

          8         attention at the last minute just like it did everybody

          9         else -- how can you go from mandatory preservation to

         10         single-family zoning?  And he said, Well, you have to

         11         read what's in writing that took place during the

         12         comprehensive plan development.

         13              GOVERNOR BUSH:  When did that take place again?

         14              MR. GARDNER:  That was in the '90s, '88 to '90,

         15         early '90s.

         16              GOVERNOR BUSH:  Okay.

         17              MR. GARDNER:  And they haven't done any -- they

         18         did one update since then.  They've not done periodic

         19         reviews and updates.  But since that time --

         20              GOVERNOR BUSH:  When did your -- when did the

         21         owner of the property buy the property?

         22              MR. GARDNER:  He bought it back in the '70s.

         23         Actually, the trustees gave him approval to do a dredge

         24         and fill out there and actually fill the wetlands to

         25         plus three.  The dredge marine -- I got a copy of what
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         that development would look like if you'd like to look

          2         at it.  And the City zoned the property consistent with

          3         that development plan.

          4              GOVERNOR BUSH:  So the property was entitled --

          5         the owners had the property for 30 years.  The property

          6         was entitled then the -- in some mysterious way the

          7         property's values were taken away by ordinance?

          8              MR. GARDNER:  Without notice.

          9              GOVERNOR BUSH:  Without notice.  And then we're

         10         paying for the value 30 years later for rights that are

         11         uncertain?

         12              MR. GARDNER:  Well, if you were to ask the

         13         planning manager --

         14              GOVERNOR BUSH:  If we do it, I mean.

         15              MR. GARDNER:  -- what could be done with this

         16         property, he'd say, Well -- and I asked him after I

         17         read the comprehensive plan and after discussing it

         18         with him, I asked him, I want to know exactly what I

         19         can do with this property.  And he said, If you get the

         20         appropriate documentation from the water management

         21         district and the Corps of Engineers which shows

         22         nonjurisdictional lands, if you get permits to fill

         23         wetlands, we will zone this property, the uplands on

         24         this property consistent with other uplands zoned in

         25         the city.  And that's exactly what his letter back to
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         me says.  That's the way the property was appraised.

          2              GOVERNOR BUSH:  So at a minimum, you have a

          3         taking?

          4              MR. GARDNER:  That's something that you'll have a

          5         hard time getting them to discuss in Everglades City.

          6         The thing they'll discuss in Everglades City is that if

          7         you bring to us a development plan and you have the

          8         signoffs from the appropriate agencies, we'll give you

          9         zoning to build what you want to build on that property

         10         as long as it's consistent with what we've done in

         11         other places in the city.

         12              GOVERNOR BUSH:  Commissioner Bronson had a

         13         question which is, Why are all the uplands along the

         14         river?  Is that just coincidental?

         15              MR. GARDNER:  Well, it could go back to when they

         16         dredged the river.  You never can tell.  Those are

         17         spoil banks.

         18              GOVERNOR BUSH:  That's what it is.  That's the

         19         answer.

         20              MR. GARDNER:  That's exactly what it is.

         21              COMMISSIONER BRONSON:  So the most prime lands for

         22         building is right on the water which is where everybody

         23         would want it to be anyway?

         24              TREASURER GALLAGHER:  That was made by government.

         25              MR. GARDNER:  It was made by government.  Well, I
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          1         don't know if it was made by government or quasi

          2         government.  I think it was the Barron River -- I mean

          3         the Barron Collier Corporation that did all that work

          4         down there in the early 1900s that did that work on the

          5         river.

          6              COMMISSIONER BRONSON:  Well, my point, Governor,

          7         if I could continue with my original question is, if we

          8         turn this down today at 1.5, which is 90 percent of the

          9         value that's been given, they go ahead and start

         10         developing these areas on this river, first of all,

         11         you've lost the integrity of the total piece of

         12         property which means now you've got all types of

         13         building and it could be multi-story buildings from the

         14         rest of it which means if we want to go ahead and buy

         15         the rest of it, the price is probably going to go up.

         16              We could end up paying as much or more for what's

         17         left than we're going to pay for the whole piece now.

         18         And cabinet members, I got to tell you, I remember

         19         before I ever got on the cabinet a piece of property

         20         while I was in the senate where we went after 300 acres

         21         of beachfront property and something like I forget how

         22         many thousands of acres at topsail became available and

         23         ended up picking up the whole piece for what we would

         24         have paid for the beachfront frontage.

         25              I don't want to see us come into this thing now in
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         a few years and pay more for what's left after the

          2         building took place than we could have paid for it

          3         right now.

          4              GOVERNOR BUSH:  And I don't want to pay for things

          5         that are based on prospective value that shouldn't be

          6         given entitlements to begin with.  I mean, that's the

          7         challenge we face every time we have these

          8         conversations and we haven't been able to sort it out.

          9         In this case, it looks like it's added, you know, added

         10         to the normal discussion is this is Everglades City and

         11         they have different ways of doing things down there.

         12         So it is a little cloudy what the prospective rights

         13         are.  Which leads me one more time to ask our

         14         appraiser, What were you valuing -- how many units were

         15         you assuming could be put on this property to get to

         16         the million five, because that may help answer your

         17         question.

         18              MR. HINES:  Yes, sir, 152 units.

         19              GOVERNOR BUSH:  152 units?

         20              MR. HINES:  Yes, sir, based on multifamily

         21         development.

         22              GOVERNOR BUSH:  So that's ten units per acre?

         23              MR. HINES:  Yes, sir.

         24              MR. GARDNER:  There were two different methods

         25         used, I believe.
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          1              MR. HINES:  That is correct.  Single-family and

          2         multifamily.

          3              GOVERNOR BUSH:  You can't do single --

          4              MR. HINES:  It's zoned multifamily so you could

          5         put single or multi, either way.

          6              GOVERNOR BUSH:  Either way, you come up with a

          7         million five?

          8              MR. HINES:  Yes, sir.

          9              GOVERNOR BUSH:  So that's about 100,000 a lot in

         10         Everglades City.  Wow, I got to get back down there.

         11              (Laughter.)

         12              MR. HINES:  The appraiser did it in two ways, one

         13         value based on the multi family scenario was 1,672,000.

         14         The other value, based on single family, was a

         15         1,760,000 and he concluded at a 1,700,000.

         16              TREASURER GALLAGHER:  I got a question to ask.

         17         I'm looking at this thing.  So what's the big deal,

         18         David, about putting houses on these -- on the islands?

         19              MR. STRUHS:  I guess my point is I don't think it

         20         is a big deal and they should probably develop it.

         21              TREASURER GALLAGHER:  Let them develop it.  They

         22         can't develop the back part.  If they can't develop the

         23         back part -- I'm looking here, doesn't look like it's

         24         going to hurt a whole lot to me if they put houses on

         25         that stuff.  I mean, I don't know how long it's going
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         to take them to build them, but Pleasure Island only

          2         has a few done and haven't sold it out yet.  So why are

          3         we in a hurry to buy it?

          4              MR. STRUHS:  I think we agree with you that it

          5         would be suitable for development and not for

          6         conservation.  I point out that the bulk of the other

          7         property around this particular parcel is zoned by the

          8         Barron Collier Company and they are not willing

          9         sellers.  They do not look to have us purchase that

         10         land for conservation.

         11              GOVERNOR BUSH:  David, why did the ARC agree to --

         12         why did they amend their boundaries to include this

         13         property if you're comfortable with its development?

         14         Do they disagree with you?

         15              MR. STRUHS:  I can't remember personally how I

         16         voted on that panel.

         17              MR. GARDNER:  You voted for.

         18              MR. STRUHS:  Did I vote for it?

         19              (Laughter.)

         20              GOVERNOR BUSH:  Sorry to ask the question.

         21              MR. STRUHS:  I'm glad you did.  Thank you, Tom.

         22              MR. GARDNER:  We were quite pleased with that

         23         vote.

         24              MR. STRUHS:  Thank you, Tom.

         25              What we do is we look at existing parks.  In this
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         case it was Fakahatchee Strand and you look at the

          2         ideal boundaries for managing that parcel.

          3              GOVERNOR BUSH:  I'm conflicted out here a little

          4         bit because on the one hand, I don't like the State --

          5         I try to look at this as though it was my money.  I

          6         don't have nearly enough money to buy all the land that

          7         the State buys but we have a duty to buy this land on

          8         behalf of the taxpayers in a way that they should be

          9         proud of.

         10              On the other hand, if this is a property -- I

         11         mean, on the surface it just -- it looks like it's a

         12         pretty valuable piece of property in terms of -- we

         13         just celebrated, we went down to the southern part of

         14         Golden Glades Estates.  This is the end portion of that

         15         flow of water.  If this isn't valuable environmentally,

         16         you could be led to say we -- I don't like the price,

         17         but you know -- I wish you would have said, I don't

         18         like the price, but I wish it wouldn't be developed,

         19         know what I'm saying?

         20              MR. STRUHS:  Yes, sir, I do.

         21              GOVERNOR BUSH:  But you're not saying that.

         22         You're saying go ahead and develop it.  So you're

         23         saying the environmental values of this are okay but

         24         it's not the end of the world?

         25              MR. STRUHS:  It's hard to separate those two.
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          1         Clearly if the price were a lot lower, it would be a

          2         more attractive acquisition.  Given our view of it at

          3         this price, I think it begs the question as to whether

          4         or not it is worth that kind of investment.

          5              But, as I said to the commissioner earlier,

          6         Governor, the reason it's on the agenda is it is a

          7         close call and reasonable people have disagreed on

          8         this.  I don't think there is a wrong answer.  I think

          9         it's a difficult choice.  I felt it was worthwhile to

         10         put it on the agenda in the form of a denial to draw

         11         your attention to the fact that we are concerned about

         12         the price.

         13              GOVERNOR BUSH:  General.

         14              ATTORNEY GENERAL CRIST:  Thank you.  I just have a

         15         few questions, David.  Kind of reflects the Governor's

         16         comments.  Do you think this is important land to buy

         17         in order to preserve?  Isn't that sort of the

         18         overriding deal here?  That's what this land buying

         19         thing is all about?

         20              MR. STRUHS:  I approach it similarly to the

         21         Governor in that I try to view this as if it were my

         22         money because I think you make better choices.  And

         23         there is a limited amount of money.  And if we invest

         24         this kind of money on this parcel, those are dollars

         25         that are now not available to purchase other lands in
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         other areas of the state that indeed are probably a

          2         better value.

          3              ATTORNEY GENERAL CRIST:  That's why I asked the

          4         first question first.  Is it important land to buy to

          5         preserve?

          6              MR. STRUHS:  The answer to that is yes.  And

          7         that's why the Acquisition Restoration Council chose to

          8         put it in the boundary amendment to Fakahatchee Strand.

          9         So the short answer is yes.

         10              ATTORNEY GENERAL CRIST:  Okay.  Then it kind of

         11         leads to my next question.  Is the value that's

         12         attached to it a responsible purchase on behalf of the

         13         taxpayers of Florida, in your view?

         14              MR. STRUHS:  In my view, my recommendation is the

         15         answer is no.

         16              ATTORNEY GENERAL CRIST:  Because you think it's

         17         too high.

         18              MR. STRUHS:  Because I think it's too high.

         19              ATTORNEY GENERAL CRIST:  So it's important to buy,

         20         but not at this price, in your view?

         21              MR. STRUHS:  Yes, sir.

         22              ATTORNEY GENERAL CRIST:  Is there anything else we

         23         need to know?

         24              MR. STRUHS:  That does it.

         25              ATTORNEY GENERAL CRIST:  Thank you very much.
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1              GOVERNOR BUSH:  Any other discussions?

          2              COMMISSIONER BRONSON:  Governor, I'm listening to

          3         this and I'm intrigued by the arguments.  But I'm

          4         thinking back at some of the property we've bought on

          5         river frontage and water frontage before and I'm not

          6         sure we haven't paid this much or more.  But I'd love

          7         to go back and figure that out and considering this is

          8         a body of water, I'm kind of intrigued to hear this

          9         argument.  But I just have this bad feeling that if

         10         this does get developed and they figure a way to treat

         11         their sewage and all this stuff and then all of a

         12         sudden we're going to be coming in and asked to buy the

         13         rest of it and maybe it will be after we're off the

         14         cabinet that the cabinet will be asked to buy it,

         15         you're going to end up paying more for what's left than

         16         we would have paid for it in the beginning and that

         17         kind of concerns me a little bit.

         18              GOVERNOR BUSH:  I guess, Commissioner, there's not

         19         enough money in the coffers of the state government or

         20         in the pockets of the taxpayers to pay for bad growth

         21         management.  That's my view.  And at some point, we

         22         need to get these subjects -- I always feel bad because

         23         this is a broader policy issue and we always discuss it

         24         only with the people that are coming, you know,

         25         individuals, and it's not related to this property that
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         gives me that concern.  It's related to this broader

          2         issue that values are established and then people come

          3         and ask the State to come pay for that more appreciated

          4         value when -- and back to Franklin County -- the same

          5         question will come up time and time again.

          6              If the comprehensive planning process creates

          7         these areas where property should be preserved, we

          8         wouldn't be buying prospective values that are pretty

          9         high and are growing, you're right.  I mean, they are

         10         appreciating.  So it creates this huge conflict every

         11         time we run into one of these.  Mr. Richman.

         12              MR. RICHMAN:  Governor, you know, we keep talking

         13         about the high price.  During the appraisal process, we

         14         challenged their offer.  And we were told to come back

         15         with an appraisal from a list of the State's

         16         appraisers.  We paid $7,500 for it and that appraisal

         17         showed $3 million.  The State's appraisers came back

         18         with questions.  And they found a couple of holes in

         19         our appraisal.  But it would have only knocked the

         20         appraisal down to 2.7, 2.6.

         21              We believe that the property value is really in

         22         the neighborhood of 2.4, 2.5 million.  But having said

         23         that, stop to think about what you were just asking.

         24         $100,000 a lot, you can buy in Golden Eagle.  This is

         25         property overlooking the Ten Thousand Islands and the
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         Barron River.  There is no comparison.  So you're

          2         talking about 100,000 a lot, that's not very much.

          3              GOVERNOR BUSH:  It's Everglades City.  Come on.

          4         Yeah, it's overlooking the Thousand Islands.

          5              MR. RICHMAN:  Go down there and try to buy some

          6         property right now.

          7              TREASURER GALLAGHER:  It takes 1,000 minutes to go

          8         out there and find somewhere you can fish.

          9              GOVERNOR BUSH:  Won't be any left because it looks

         10         like the State is going to be buying it all up.

         11              MR. RICHMAN:  There are questions about the

         12         appraisal, we think, in the first place.  But we're

         13         willing to go along.  Our seller is willing to go along

         14         at 1.525.  Otherwise, he's just going to have to

         15         develop it.

         16              GOVERNOR BUSH:  Well, and that may be what happens

         17         here.  Let me ask you a question.  This is a letter

         18         from Mr. Smallwood who is the planning and zoning man

         19         down in Everglades City apparently.  Says, The process

         20         is relatively simple.  If Mr. Jenkin -- is that his

         21         name?

         22              MR. RICHMAN:  Jentgen.

         23              GOVERNOR BUSH:  -- who is the owner of the

         24         property, wants zoning and building permits for his

         25         property, I would tell him to take his project to South
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         Florida Water Management District and to the United

          2         States Army Corps of Engineers and come back to me with

          3         either permits or a letter of no jurisdiction.  We will

          4         not zone any of the mangrove swamp without a court

          5         order telling us to do it.  We will zone the upland

          6         consistent with the proposed use of it if it is

          7         consistent in other regards with development of uplands

          8         elsewhere in the city.

          9              So sounds to me like he's asking you to do

         10         something quite curious which is --

         11              MR. RICHMAN:  And we have done that.  And that is

         12         the jurisdictional that you have seen.  Todd Terrell

         13         (phonetic) is part of our team.  He's an engineer in

         14         Naples, Florida, civil engineer.

         15              GOVERNOR BUSH:  You've got permits -- before you

         16         get a permit from the city, you've gotten permits from

         17         the Army Corps --

         18              MR. RICHMAN:  No, we've been to the Army Corps and

         19         the South Florida Water Management District together.

         20              GOVERNOR BUSH:  Oh, South Florida.

         21              MR. RICHMAN:  Water Management District only.

         22              MR. GARDNER:  This is a signed jurisdictional map

         23         that is signed by the South Florida Water Management

         24         District and it may vary from the corps --

         25              GOVERNOR BUSH:  So they signed off.
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1              MR. RICHMAN:  Yeah.

          2              MR. GARDNER:  They did.

          3              GOVERNOR BUSH:  Okay.  And then what would be the

          4         zoning that's consistent with other upland developments

          5         in your mind?  Is that what you proposed here, the 100

          6         plus --

          7              MR. GARDNER:  Pleasure Island.

          8              MR. RICHMAN:  Pleasure Island zoning.

          9              GOVERNOR BUSH:  And that's the ten units per acre?

         10         That's what Pleasure Island is?  That's the density

         11         there?

         12              MR. RICHMAN:  That's their allowable density.

         13         They're not developing it at that.  They are actually

         14         developing about eight or nine units per acre.

         15              TREASURER GALLAGHER:  Let me ask you a question.

         16         How do you -- I guess you get to Pleasure Island by

         17         taking a boat, right?

         18              MR. RICHMAN:  That's the way all that property is

         19         down there, yes.

         20              TREASURER GALLAGHER:  That's the only way you're

         21         going to get to all this property too I gather?

         22              MR. RICHMAN:  Right.  Absolutely.

         23              TREASURER GALLAGHER:  So somebody has to own some

         24         uplands on the other side where you'd have a dock or

         25         something.
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1              MR. RICHMAN:  And we have the right to -- how many

          2         docks is it, Tom?  We have a right to put in how many

          3         docks?

          4              MR. GARDNER:  There is, based on the river

          5         frontage and the Department's submerged land rules, we

          6         can put in enough docks along the river frontage with

          7         our river without even requiring that it come before

          8         the governor and cabinet.  It is -- for a multifamily

          9         docking facility, we would be in the exempt category.

         10              So the docking is not an issue in terms of -- if

         11         you'll look at Pleasure Island I don't know if the

         12         docks are in on the picture I have here, but the

         13         Pleasure Island docks were put in the same way.

         14         You-all approved docking for the airport property which

         15         is just south of here.  And I don't know how you make

         16         this thing come up or down.

         17              The airport property is right across from the

         18         Jentgen property.  It's got 17 or 18 developable acres

         19         on it.  You-all approved the docking facility there

         20         about four or five months ago.  That property sold for

         21         3.5 million dollars.  It's in the process now of

         22         groundbreaking and they are starting development on it.

         23              You got to understand, Everglades City is

         24         landlocked.  There is nowhere it can go.  It's got

         25         parks to the right of it, parks to the left of it,
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         parks to the north and Ten Thousand Islands to the

          2         south.  What they have down there is selling people --

          3         people coming in down there and buying little, teensy

          4         houses on little teensy lots, tearing down little

          5         teensy houses to build a nice fishing cottage so they

          6         can come down during the winter and get in their boat

          7         and go fishing.

          8              For this to be on the other side of the river is

          9         really not an issue.  A lot of land down in this area

         10         of the state sells where it doesn't have land access

         11         and people pay a premium for it because it gives them a

         12         certain amount of privacy.  So there will be

         13         development that will take place on there.  The owner

         14         has attachment to this property because he's had it

         15         since, I don't know, the late '60s or the early '70s.

         16         He's gone through a lot with the City.  He knows the

         17         mayor and the people down there and he says, I'll give

         18         the State one chance.  If they'd like to buy it, that

         19         would be great for me, I'd like to see it preserved.

         20         His son would like to see it developed.  And basically

         21         what he'll do is turn it over to his son to develop.

         22              GOVERNOR BUSH:  Any other questions?  I appreciate

         23         you bringing a little clarity to this.

         24              Commissioner, is there a motion?  General?

         25         Treasurer?
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1              COMMISSIONER BRONSON:  Governor, I'm -- I see this

          2         as a backup situation.  There is no doubt this is not

          3         my father's Florida anymore.  And once this fellow

          4         gives this property to his son who is evidently wanting

          5         to develop it anyway, it won't be his father's Florida

          6         anymore either.  And I somehow just have a gut feeling

          7         that we're going to turn this down at 1.5 because we

          8         feel it's too high.  I've turned down land that I had

          9         the option to buy because I thought it was too high and

         10         three years later it's almost double what it was when I

         11         turned it down.

         12              But I'm just afraid we're going to come back and

         13         have somebody come back to us or the next cabinet,

         14         whoever that may be and ask to pay that much or more

         15         for what's left after the building goes on and not

         16         knowing what effects that building is going to have to

         17         this water and all the facilities down there.  My

         18         instinct tells me we ought to go ahead and buy the

         19         thing if it has that much positive impact on not

         20         developing that river area for the whole water quality

         21         issue.  But that's my opinion.  But I would make the

         22         motion.

         23              GOVERNOR BUSH:  Treasurer.

         24              TREASURER GALLAGHER:  Let me point out something

         25         here.  I see here we have on my notes that the purchase
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         price -- am I reading correctly the purchase price in

          2         '71 was 150,000?

          3              MR. STRUHS:  Yes, sir.

          4              TREASURER GALLAGHER:  That was by the present

          5         owner?

          6              MR. STRUHS:  Yes, sir.

          7              TREASURER GALLAGHER:  So we have 32 years

          8         basically -- and I don't have it, maybe you've got an

          9         appraiser there that's got some kind of a calculator

         10         that you can tell me what kind of return it is.

         11              GOVERNOR BUSH:  I bet all the value has come in

         12         the last five years.  It's probably worth --

         13              TREASURER GALLAGHER:  Well, it may or may not.

         14         But the question is it's a tenfold increase in 30

         15         years.

         16              MR. STRUHS:  Yes.

         17              TREASURER GALLAGHER:  I'm not wondering what land

         18         in Florida didn't go up tenfold in 30 years.

         19              GOVERNOR BUSH:  Exactly.

         20              TREASURER GALLAGHER:  So I'm not sure -- and it's

         21         waterfront.  It's hard for me at this point, David, I

         22         don't know -- I feel the appraisal is probably pretty

         23         accurate just looking at what they paid for it and what

         24         it's worth today.  I'm trying to figure out why you

         25         don't think it is.  Or I mean, you bring us property
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         based on appraisals.  This is an appraisal that your

          2         department approved and did.

          3              MR. STRUHS:  Correct.

          4              TREASURER GALLAGHER:  What are we going to do with

          5         the rest of the property you bring with the same

          6         appraisal process?  I mean, are we not going to ever

          7         buy anything more?  Where are we?

          8              MR. STRUHS:  I think what it does is it allows us

          9         to take the dollars that would be spent on this parcel

         10         and acquire other parcels that are on the list.  As you

         11         know, project demand exceeds supply --

         12              TREASURER GALLAGHER:  That are appraised the same

         13         way.  But we don't know what those are?  They are just

         14         something else that's coming down the pike?

         15              MR. STRUHS:  As you know, we have a fairly

         16         detailed list of what those projects are.

         17              TREASURER GALLAGHER:  Long list.

         18              MR. STRUHS:  Yes, sir.

         19              COMMISSIONER BRONSON:  Well, Governor, if I might

         20         intercede again.  I thought the original purpose in a

         21         lot of the land acquisitions that we had for Florida

         22         was to protect wetlands and water areas from

         23         development under certain conditions.  And to me, it

         24         looks like this is definitely going to be a watered

         25         area that's going to be affected by the development of
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         multifamily homes on this.  And I guess maybe my

          2         question is, Have we changed our priority of what

          3         should be bought first?  Of course I know we have a

          4         committee together, the ARC committee that looks at a

          5         lot of this and tries to determine which piece is more

          6         valuable under certain conditions than another.

          7              But it seems like we are really buying a lot of

          8         uplands right now and this is definitely part of that

          9         wetlands protection type process that I thought we

         10         originally were buying land for, at least under P2000 I

         11         thought that's where we were going.  Now Florida

         12         Forever was a pickup of that.  And I would still think

         13         that watered areas would be a high priority.

         14              GOVERNOR BUSH:  We're buying more and more

         15         property that is in the path of development which is

         16         this property apparently although -- and really related

         17         to the appraisal issue, I think the appraiser probably

         18         professionally created this value based on what he

         19         thought the development rights are and the development

         20         rights are a little clearer to me than when we started.

         21         But it's still not the cleanest system that -- the

         22         cleanest process of property that we've seen.  So this

         23         happens a lot now.  We're buying really valuable

         24         property in the path of development whereas before we

         25         were just buying large chunks of land in middle of wild
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         Florida.  I think that's the change in philosophy

          2         because that's the change in reality in our state.  And

          3         so the values are higher too because of it.

          4              TREASURER GALLAGHER:  Are we paying wholesale or

          5         retail for this?

          6              GOVERNOR BUSH:  I assume we're paying discounted

          7         values.

          8              TREASURER GALLAGHER:  The seller says wholesale.

          9              MR. STRUHS:  Let me speak to that and at the same

         10         time address Commissioner Bronson's inquiry.

         11              This project, this boundary amendment to

         12         Fakahatchee, was originally on our A list.  The A list

         13         are the projects that are deemed most important and the

         14         ones in which we are prepared to bring to you

         15         recommendations up to the approved value and in rare

         16         circumstances even a little bit more.

         17              This particular project was actually downgraded by

         18         the ARC, the Acquisition and Restoration Council, to a

         19         B list project.  And that was the determination of the

         20         panel of both government officials and lay citizen,

         21         that this parcel, this particular project, while

         22         important, didn't merit being on that A list.

         23              When we put a project on the B list, it suggests

         24         that while it still has certain attributes that we'd

         25         like to conserve, that we ought to move forward with
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         those projects only if we can get it at a substantial

          2         discount or with a partner that would make it more

          3         affordable for the State.

          4              GOVERNOR BUSH:  Okay.  I think we've had enough

          5         conversation.  Did you make a motion?

          6              COMMISSIONER BRONSON:  Yes, Governor, I made a

          7         motion to acquire this piece at the price we have now.

          8              GOVERNOR BUSH:  Is there a second?

          9              TREASURER GALLAGHER:  I'll second.

         10              GOVERNOR BUSH:  Okay.  Any other discussion?  All

         11         favor say aye.  All opposed.

         12              ATTORNEY GENERAL CRIST:  No.

         13              GOVERNOR BUSH:  It is approved.  David, I, for

         14         one, appreciate the fact that you made your

         15         recommendation even though I voted against you which I

         16         apologize for because I want to show support for your

         17         thinking.  And I think we need to have different

         18         forums, this one and others, to discuss this challenge

         19         in our state and may require some change in

         20         legislation.  But this is one of the big challenges we

         21         face and I appreciate you allowing us to see it and

         22         even to contradict you so we can have an important

         23         discussion on this.

         24              MR. STRUHS:  Well, I'm sorry it was a little bit

         25         messy.  My premise to you in the future is that we will
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         be better prepared to speak to the details of how the

          2         appraisals were actually made for these

          3         recommendations.

          4              COMMISSIONER BRONSON:  And, Governor, in fairness

          5         to David too, and I know he did this based on some of

          6         the ideas that the cabinet has given him in the past on

          7         these issues.  And not being a member of ARC, although

          8         we do have a member of our department that sits on that

          9         committee, and I may want to talk to them about the

         10         thinking process, but, you know, to go -- to take it

         11         from an A to a B, and I don't know all the details of

         12         why that happened, there may be some very good reasons

         13         why that happened, but it seemed to me like -- and I

         14         just had a bad feeling about this.  We let this thing

         15         go, in a few years we're going to be asked to go ahead

         16         and pick up the pieces here after the development has

         17         started.  And then we basically have development on the

         18         water that affects water quality and then we're going

         19         to pay -- I just had this bad feeling about this and it

         20         has nothing to do with your recommendation.  There is

         21         something here that was clicking.  As I said, this is

         22         not my father's Florida and it won't be my Florida in a

         23         few years, it'll be my kids' Florida and prices are

         24         going up and all these issues.  I just want to protect

         25         the waterway, make sure we didn't have the development
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         in that area and cause us another problem down the road

          2         that we're going to be asked to pay for in the future.

          3              So I took the gamble of saying, Go ahead and pay

          4         for it now, Governor, even though we do feel like this

          5         was a little bit higher price and maybe we should

          6         have --

          7              TREASURER GALLAGHER:  Commissioner, don't feel bad

          8         because David recommended buying it before.  So you

          9         were with him then even though you weren't with him

         10         this time.  (Laughter.)  So you're 50/50 on it.  Not a

         11         problem.

         12              GOVERNOR BUSH:  Item 5.

         13              MR. STRUHS:  Some of my friends are for it.  Some

         14         of my friends are against it.  (Laughter.)

         15              Item 5 is a request to surplus just under 49 acres

         16         on Timber Island located in Franklin County.  And then

         17         to approve a bid amount of $6.8 million submitted by

         18         the St. Joe Company for the purchase of that land.  A

         19         little bit of background and then we do have a number

         20         of speakers.

         21              The island in question, Timber Island, is a dredge

         22         spoil island that was acquired by the Board of Trustees

         23         in 1985 for development as an industrial port facility.

         24         The island has never been deemed or considered

         25         conservation land.  It has also never been sovereignty
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         submerged land.  The Board of Trustees in turn leased

          2         the property to the Carrabelle Port and Airport

          3         Authority.  The Authority was unsuccessful in leasing

          4         or developing the property.

          5              It was recommended to the Board of Trustees in the

          6         last administration that that lease be terminated.  The

          7         Board of Trustees agreed that the lease should be

          8         terminated and indeed it was terminated in 2001.

          9         Consistent with the previous directions that we should

         10         seek to return nonconservation lands to the tax rolls

         11         whenever possible, we entered into consultations with

         12         Carrabelle and Franklin County local officials to

         13         determine their preferred option to go forward.

         14              It was determined that the best means of disposing

         15         of the property was through an auction.  It was well

         16         advertised and we can speak to that in detail if you

         17         care to hear it.  In the end, only one valid bid was

         18         received and the Board of Trustees now has before it

         19         the option of either accepting or rejecting that bid.

         20         There are a considerable number of speakers in.  What

         21         I'd like to do is ask them to queue up so that we can

         22         move expeditiously.

         23              Representative Will Kendrick is here to go first.

         24         We also have Mr. Tim Edmunds here who is the president

         25         of Arvida.  If you just keep track of the order,
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         please.  David McLain from Apalachicola Bay River

          2         Keepers.  Jim Lycett.  Paul Johnson of Apalachee

          3         Ecological Conservancy.  Tommy Bevis who is a

          4         leaseholder on Timber Island now.  And then Don Ashley,

          5         Florida Wildlife Federation.

          6              TREASURER GALLAGHER:  David, let me just mention

          7         to you, this brochure you put out for the auction, to

          8         me, is a very nice piece of work done by your

          9         department.

         10              MR. STRUHS:  Thank you, sir.

         11              TREASURER GALLAGHER:  I'm disappointed we only got

         12         one bid, but it was a pretty good bid.  So we'll hear

         13         whether people want us to take it or not.  But I think

         14         the piece of mail, I guess, as well as the offering

         15         that you put out is a quality piece and --

         16              MR. STRUHS:  Thank you, sir.  I appreciate hearing

         17         that.  We have tried, with your direction, to improve

         18         the professionalism in the way in which we market

         19         property for surplus.

         20              Representative Kendrick.

         21              REPRESENTATIVE KENDRICK:  Thank you, Governor and

         22         cabinet and good morning again.  This is the real

         23         reason I was here.  So you caught me off guard earlier.

         24         It's not often that I jump into local politics from

         25         back home.  However, there are exceptions though and
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         this certainly was an exception because this is about

          2         home.  It's about my family's home, it's about my

          3         children's future and the future of our county.

          4              As most of you are aware, I've been working over

          5         the past three years to make sure that the development

          6         in Franklin County that occurred was approved first and

          7         foremost by the local people there in Franklin County.

          8         Some of you will recall again how I stood up against

          9         St. Joe several years ago.  And although that wasn't

         10         too popular from my standpoint, I think it's the reason

         11         we're here today all together singing at the same time,

         12         the same book and page, the same hymn, cum byah.

         13              One of the hottest topics that I got involved

         14         during that process, however, was the proposed marina

         15         at summer camp, which by the way, Franklin County

         16         Commission has approved unanimous the PUD for summer

         17         camp.  I was concerned first because I felt like the

         18         local public had deserved or did deserve to know more

         19         about what was fixing to happen to Franklin County.

         20         And secondly and mainly the thought of any major

         21         commercial marina adjacent to the newly created clam

         22         leases that you-all had approved previously, the mere

         23         thought of having 2- to 300 boaters on any given

         24         weekend there on those pristine seagrass beds in the

         25         northern gulf just did not make sense and woke us up
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         real quick and made us get involved.  As a result, I

          2         began to work on alternatives for this marina and even

          3         suggested that if St. Joe felt that they needed a

          4         marina in Carrabelle, specifically Timber Island would

          5         be the most sensible site in Franklin County.

          6         Actually, it would be the most sensible site anywhere

          7         between Panama City and south of Cedar Key mainly

          8         because it had already had a DRI process completed on

          9         it and it was one of the only natural deepwater

         10         channels in this area.

         11              St. Joe listened.  They started looking at the

         12         possibility of this site.  When the bid package was

         13         sent out, St. Joe made a business decision and decided

         14         to try this site as an option.  I can tell you without

         15         hesitation, this was the best thing that could happen

         16         to the city of Carrabelle in Franklin County for

         17         several reasons.  First, we automatically add

         18         85 percent of $6.8 million to the tax equation in

         19         Franklin County and the city of Carrabelle.  However,

         20         the beauty of it all is the fact that St. Joe listened

         21         to local people, the local ideas, and supported them.

         22         They have even had support of some of the environmental

         23         groups who are represented here today and others who

         24         adamantly opposed the commercial marina in the

         25         beginning.
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          1              For over 18 years, we have had the commitment from

          2         the State of Florida and this board on this site for

          3         economic development.  To date we've had one tenant and

          4         problems from the get-go.  Franklin County was one of

          5         the original counties designated as an area of critical

          6         concern.  We need and want good, clean development to

          7         come to our city and to our county.

          8              St. Joe has and will be a good partner to all of

          9         us.  City of Carrabelle, Franklin County supports this

         10         purchase.  It would also not be fair to allow this

         11         purchase not to happen just because perhaps there are

         12         some cabinet staff trying to flex muscles over agency

         13         staff.  If this happens, no one will suffer except the

         14         people in Carrabelle and the people in Franklin County.

         15              The question has arisen about other interested

         16         parties in this property.  There were others.  However,

         17         they wanted the state to give it away just like you

         18         were discussing earlier.  However, St. Joe stepped up

         19         to the plate and did what most businesses do and they

         20         took the bullet.  They did not come back looking for a

         21         good deal.  They bid fair and square.  St. Joe has

         22         proven to be a good partner again with Franklin County

         23         and they will do a quality job regardless of what they

         24         decide to do with the property.

         25              As you-all know, St. Joe does not normally buy
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         property, they're usually the seller.  I truly feel

          2         that this is the reason this shows St. Joe's commitment

          3         to Carrabelle and Franklin County because they too want

          4         to protect our most natural resource in Franklin

          5         County, the Apalachicola Bay, and that's the reason

          6         they chose this site.  Governor, at this point, I'd

          7         like to defer to the local people and then come back

          8         and close if I may.

          9              GOVERNOR BUSH:  Thank you.

         10              MR. EDMUNDS:  Good morning, Governor Bush, cabinet

         11         members.  I'm Tim Edmund.  Thank you very much for

         12         having me.  I'm the president of the capital region of

         13         Arvida St. Joe Company.  I'm truly honored to be here,

         14         to be in your audience today.  1926, the St. Joe Paper

         15         Company began to buy a couple of acres in Florida, some

         16         two million at that point.  1958, Arvida was formed and

         17         began to buy a few acres in southeast Florida as a

         18         community development company.  In 1997, the two

         19         companies merged together.

         20              And the reason for that merger, I believe, is that

         21         the St. Joe Paper Company saw in Arvida a community

         22         development company -- and I stress the word

         23         "community" because that is, in fact, what we do every

         24         day in all the lands that we have, some 1,200,000 acres

         25         worth of land now mainly in north Florida.  The driving
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         force behind our company and Timber Island specifically

          2         is the protection of those interests are there today.

          3         There has been a lot of interest in our purchase, our

          4         would-be purchase of this property.

          5              And I want to assure everybody that the interests

          6         of the commercial fishing fleet which are vital to

          7         Franklin County, as we heard this morning, they're

          8         vital to Carrabelle, they're vital to Apalachicola.

          9         They're vital to us.  We believe those interests are

         10         the essence of Franklin County in working with a

         11         commercial fishing fleet, to help them, to help house

         12         them, to help promote them, that's certainly in keeping

         13         with our modus.

         14              Also, we think there is an opportunity here with

         15         the Marine Patrol, the Coast Guard, Fish and Wildlife

         16         Commission that all have locations in or around the

         17         Carrabelle area to accommodate them on what we want to

         18         do on Timber Island.  Again, much has been said about

         19         the thoughts of what we'll be doing in Franklin County

         20         on Timber Island specifically and I'd like to reiterate

         21         to those that think we're going to do this, we have no

         22         interest in high-rise development on this island.

         23              We own some 49,000 acres in that immediate region.

         24         We think that Carrabelle can be a cornerstone, a

         25         touchstone of an overall visioning process that we are
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          1         involved with.  This is not a mere standalone

          2         development.  And to Governor Bush's comments a few

          3         minutes ago about planning process underway so you

          4         avoid being in the path of progress, this visioning

          5         program today, Governor, encompasses countless meetings

          6         with citizenry of Franklin County to understand local

          7         concerns, to look at the environmental concerns,

          8         economic development opportunities so we avoid the

          9         issues you just faced.

         10              And I applaud all the people in Franklin County

         11         that are working with us in that visioning program.

         12         But I think you'll see at the conclusion of that, which

         13         will be early next year, a prototype for development.

         14         I truly do.  And this is over a whole bunch of land.

         15              We have met with your cabinet aides and we have

         16         met with DEP staff and we've agreed absolute compliance

         17         with the development order of mandates that accompanied

         18         the seafood commerce park that was approved a number of

         19         years ago.  That includes disposal and recycling of

         20         petro chemicals, stormwater standards, port pollution

         21         control plan, wastewater treatment plant options to

         22         bring a pipe onto the island so we can treat our waste,

         23         send it back into the wastewater treatment plant --

         24              GOVERNOR BUSH:  Can I ask you a question about --

         25         you're not going to fulfill the DRI, the existing DRI
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          1         and build an industrial port.

          2              MR. EDMUNDS:  No, we're not.

          3              GOVERNOR BUSH:  You're going to build residential,

          4         right?

          5              MR. EDMUNDS:  No.

          6              GOVERNOR BUSH:  No?

          7              MR. EDMUNDS:  Right now if you look at the seafood

          8         commerce park DRI and the benefits it provides to us,

          9         we need to look at that DRI, those development order

         10         conditions, what can we build now.  Right now I would

         11         tell you that I don't see today there would be a big

         12         residential interest today.  I think once a marina

         13         program is in place, the touch to the waterfront is

         14         done, the venues we'll put on that island, I think

         15         residential would follow.  Right now, the seafood

         16         commerce park DRI does not provide for that.  It

         17         provides for the other uses you may have seen in that

         18         DO.

         19              GOVERNOR BUSH:  So you don't envision going

         20         through the development process because the DRI would

         21         have to be amended to get beyond any industrial use,

         22         right?

         23              MR. EDMUNDS:  That's correct.

         24              GOVERNOR BUSH:  So you're not going to go through

         25         the amendatory process?
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          1              MR. EDMUNDS:  No, we will go through the

          2         amendatory process, not today.  We're expecting to do

          3         that later.  The development order lapses in October of

          4         next year.  And so we see, let's secure what we can

          5         secure today relative to building of the marina, upland

          6         wet and dry slips that has other provisions and other

          7         benefits in that for commercial development.  And then

          8         residential, we'll have to go back and amend the DRI at

          9         some other time.  And that's to my point about the no

         10         high rises.  Is there a demand today?  No.  Will there

         11         be a demand tomorrow?  I think so.  But I think that

         12         tomorrow is probably about an '06 or '07 event from our

         13         market analyses.

         14              GOVERNOR BUSH:  And you would have to come

         15         back and --

         16              MR. EDMUNDS:  We would have to come back and go

         17         through the process, yes, sir.  As painful as that is,

         18         we would do that.  Did that answer your question?

         19              GOVERNOR BUSH:  Well, there is some irony here in

         20         that -- and I assume you sense the irony.  That the

         21         first -- the item before yours was in Everglades City

         22         where I was complaining that we were paying prospective

         23         value for prospective value, it was little cloudy.

         24         Here you are paying for value that you don't have.

         25              MR. EDMUNDS:  That's correct.  And we trust --
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          1              GOVERNOR BUSH:  I find that ironic.

          2              MR. EDMUNDS:  We trust --

          3              TREASURER GALLAGHER:  You know, if we do this

          4         every meeting, we're going to get ahead instead of

          5         behind.

          6              MR. EDMUNDS:  And $6.8 million which is the bid

          7         amount for just the marina is crazy.

          8              GOVERNOR BUSH:  I know.  That's why I'm

          9         wondering -- I'm worried about you.

         10              MR. EDMUNDS:  And that's your point, What are you

         11         guys thinking.

         12              (Laughter.)

         13              It's right now, as you know and your staff would

         14         know, permitting a marina in Florida is very, very

         15         difficult to do.  It has value.  It has value to us,

         16         Governor, over 49,000 acres, not just the 49.  And so

         17         when we pencil this deal out and my board of directors

         18         says, Tim, what are you thinking?  Well, you take that

         19         $6.8 million and you think about what we're going to do

         20         on this wonderful place in Franklin County over the

         21         next umpteen years.  So that's why that number would

         22         seem to you as being --

         23              GOVERNOR BUSH:  You're spreading this out over a

         24         larger --

         25              MR. EDMUNDS:  Exactly right.  We also, provided we
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          1         get permits for the marina, would volunteer for the

          2         Clean Marina Program.  And I know I've been at these

          3         cabinet meetings long enough to know that marinas and

          4         the sensitivity they bring to our state, it's about

          5         education.

          6              I think we have a very unique opportunity here as

          7         a company who is committed to education, that's

          8         committed to developing communities to do this right.

          9         It's about aquatic education, it's about seagrass bed

         10         protection.  It's about nursery protection.  In fact,

         11         it's about manatee protection.  We can do that.  With

         12         this opportunity we have, we view this, as we do in

         13         every development, this is a great responsibility and

         14         we take that quite seriously and we're hopeful to

         15         develop this asset and do it in a prototype fashion

         16         which I think we have done in our other properties

         17         around the state.  I stand ready for any questions you

         18         have.  Please let me know.

         19              GOVERNOR BUSH:  Thank you.

         20              MR. McLAIN:  Gentlemen, I'm David McLain.  I'm the

         21         executive director of the Apalachicola Bay & River

         22         Keeper.  I would commend the governor and the cabinet

         23         for the efforts that have been undertaken to take a

         24         signature Florida crop, the citrus crop, and advertise

         25         it and sell it as fresh from Florida and really
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          1         successfully.

          2              We have another signature Florida crop, our

          3         seafood.  We need to do the same thing for it.  We need

          4         to be able to have -- if we have a great fishing

          5         fleet -- let me get it pronounced properly here

          6         anyway -- then that's not very helpful unless you have

          7         a place to land it.  So I rise to support the sale of

          8         Timber Island today because I have the assurances of

          9         the folks from St. Joe that they will in fact promote

         10         and help this part of our community vision so that we

         11         retain our seafood industry.  And I appreciate and

         12         solicit your support for that industry as well.  Thank

         13         you.

         14              MR. LYCETT:  Jim Lycett, I'm a shrimper that lives

         15         in Carrabelle.  Appreciate the opportunity to talk.

         16         Governor, if Everglades City seems surprising to you,

         17         the Carrabelle and the Franklin County region is in a

         18         gold rush mentality that is, real estate wise, that is

         19         not able -- comprehensive plans are not able to keep up

         20         with the speed with which this is moved.  But I'm here

         21         today to sort of reinforce David's point and that is

         22         that the State and St. Joe are the only ones that can

         23         make a commercial dock happen in Carrabelle.

         24         Everything else is being vacuumed up.  And if St. Joe

         25         is going to make that commitment here publicly, then as
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         a fisherman, I just hope you-all will remember that and

          2         hold their feet to the fire when the time comes to talk

          3         about it.  Thank you.

          4              GOVERNOR BUSH:  Thank you for being here.

          5              MR. DRAPER:  Governor, Eric Draper with Audubon of

          6         Florida.  I was not on David's announced list, but I'm

          7         stepping in because I want to support this project for

          8         a very specific reason.  You have the opportunity here

          9         to surplus a piece of land that is not conservation

         10         land and use these funds to engage and exchange for

         11         other lands that St. Joe owns.  As you know, they own a

         12         considerable amount of land in north Florida that's on

         13         the Florida Forever list and there's been some

         14         discussion so far of being able to use this

         15         $6.8 million as value for exchange on other

         16         conservation lands.  And I think that turns us into a

         17         real win/win for the State of Florida if, in fact, you

         18         can move these funds into protecting other lands in the

         19         Apalachicola Bay and river watershed.  That would be an

         20         excellent thing.  We support this project.  Thank you.

         21              GOVERNOR BUSH:  Thank you.

         22              MR. JOHNSON:  Paul Johnson, special projects

         23         director, Apalachee Ecological Conservancy.  We work

         24         closely with St. Joe, Franklin County government and

         25         citizens and our membership is stretched from Leon,
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         Franklin, and Wakulla County on a variety of issues in

          2         Franklin County.  Our organization was the one that

          3         vehemently opposed the private commercial marina and

          4         summer camp.  And when that marina was then removed

          5         from that development plan, we directed them to look at

          6         the Timber Island property as a potential.

          7              If we had a more sophisticated county that could

          8         spend hundreds of thousands of dollars on a water

          9         dependent use study and a marina siting study as is

         10         routinely done in south Florida, you would end up on

         11         Timber Island as a logical location.  It is a disturbed

         12         area.  It's ideal for a marina and we support this

         13         particular sale.  We think it's in the public's

         14         interest to actually have this land be privately

         15         developed for not just the needs now, but the future

         16         for public boating that's going to be increasing in the

         17         area.

         18              It has close access to deep water.  It will

         19         provide provisions to protect manatees and other

         20         wildlife and we support that.  As was mentioned

         21         earlier, we also support this land sale that you're

         22         considering today in the larger picture of a purchase

         23         that we hope will come to you next week.  And with that

         24         done, it actually sets the template for a larger

         25         visioning on that 49,000 acres that citizens of our
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         organization and a lot of these organizations here

          2         today have been working with St. Joe on for St. James

          3         Island.  So thank you, Governor and cabinet.

          4              GOVERNOR BUSH:  Thank you.

          5              MR. BEVIS:  My name is Tommy Bevis.  I met with

          6         the governor and Board of Trustees on October the 10th,

          7         1991.  My lease was approved there on Timber Island at

          8         that time for 30 years.  And there a little over 11

          9         years, hope to be there another 18 or 19 more years.

         10              The situation we're in at this time, we've applied

         11         for an amendment to the development order where we can

         12         move forward with some of the things we'd like to do.

         13         State Department of Environmental Protection has asked

         14         that we be held up until this matter be settled,

         15         whether you-all sell, trade land or whatever.  We would

         16         just like for you-all to act as soon as possible.  We'd

         17         not like to be on hold any longer, one way or another.

         18         Thank you.

         19              GOVERNOR BUSH:  Thank you, sir.

         20              MR. ASHLEY:  Governor and cabinet, Don Ashley

         21         again, Wildlife Federation, and I live on St. James

         22         Island.  This is another example of this balancing act

         23         that's going on in Franklin County.  The reason you see

         24         so much local support is we see this again as an effort

         25         to balance this economic development with conservation
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          1         lands.  There is another 50,000 acres on St. James

          2         Island.  We do own a great deal in Tate's Hell State

          3         Forest but it's another 20 something miles to Bald

          4         Point State Park.

          5              The residents of St. James Island and most people

          6         in Franklin County want to see a corridor from Tate's

          7         Hell that eventually connects to Bald Point State Park.

          8         Part of that equation was to see a marina not put in

          9         the aquatic preserve at Alligator Harbor, but to choose

         10         a site more suitable like Carrabelle where you might

         11         also benefit local business.  You might also benefit

         12         commercial fishermen.  So it's kind of a down payment,

         13         if you will, by St. Joe to come into this community.

         14         They have a right to develop and profit from some of

         15         the lands but we hope that they will continue to work

         16         with that local community to balance these interests.

         17         So we see Timber Island as their down payment and then

         18         we want to work with them on Crooked River and other

         19         corridors that connect to Bald Point State Park.

         20              TREASURER GALLAGHER:  Motion on 5.

         21              COMMISSIONER BRONSON:  Second.

         22              GOVERNOR BUSH:  Representative, you don't need to

         23         be saying much, I don't think.

         24              REPRESENTATIVE KENDRICK:  Thank you.  At this

         25         point, I think you know the rest of the story.  I think
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         you understand adamantly, you as governor and cabinet

          2         hold the future of Franklin County in your hands

          3         without it costing you a dime.  Actually, you make

          4         money on the deal.  I would just ask that you continue

          5         to let the local government decide and deal with

          6         St. Joe in this particular issue and that we not try to

          7         continue to micromanage.  I think we've grown up quite

          8         a bit down in Franklin County and can manage our own

          9         affairs and I'd ask that you please accept the

         10         secretary's recommendation and approve the sale.

         11              GOVERNOR BUSH:  There's a motion and a second.

         12         Any other discussion?  Without objection, the motion

         13         passes.

         14              MR. STRUHS:  That concludes the Board of Trustees

         15         agenda and indeed concludes the cabinet meeting.

         16              GOVERNOR BUSH:  We have one more presentation?

         17              MR. STRUHS:  We have a very special presentation

         18         and I would ask --

         19              GOVERNOR BUSH:  In fact, all the people that just

         20         made the presentation, you-all may want to stick

         21         around, it's only going to take a little bit, but it

         22         relates to the -- I think a subject that is near and

         23         dear to your heart as well.

         24              MR. STRUHS:  Thank you, Governor.  And I would

         25         also point out to the news media that immediately
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          1         following this event, this ceremony, there will be a

          2         press availability with the cabinet and with

          3         representatives from the military as well as the Nature

          4         Conservancy.  So please stand by.

          5              What I'd like to do is very quickly introduce in

          6         some of our very special guests.  We have four

          7         individuals here from the Office of the Secretary of

          8         Defense in Washington.  Phil Grone is here Robert

          9         Arnold, Bruce Beard and Jan Larkin also from Florida

         10         military bases here in Florida.  Rear Admiral Annette

         11         Brown, Major General Douglas Burnett, Brigadier General

         12         Chris Anzalone, Colonel Robert Nolan, Captain John

         13         Pruitt, whom you heard from earlier.  Colonel Martin

         14         Sayles.

         15              Also, Vickey Tschinkel is here, the director of

         16         the Florida Nature Conservancy and we're also delighted

         17         that Pam Dana  is here as well who represents the

         18         governor's office on all matters military.

         19              I have a very quick slide presentation, just tee

         20         this up and give you an overview of what this is all

         21         about.

         22              What we are here to do today is to sign a

         23         partnership agreement in support of something called

         24         the Northwest Florida Greenway.  The agreement is the

         25         culmination of an effort that was kicked off back in
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         September when Governor Bush traveled to Washington and

          2         at the Pentagon met with Assistant Secretary of Defense

          3         Wolfowitz, and also Assistant Deputy, undersecretary,

          4         Ray DuBois, and they discussed this idea.  And this is

          5         what we're going to present to you now.  If I could

          6         have the next slide, please, Michael.

          7              Many of the State's conservation land acquisition

          8         projects that we've been engaged in, in fact, offer not

          9         just conservation benefits but they offer long-term

         10         national security and economic development benefits.

         11         We have 37 different Florida Forever Projects that in

         12         some way help or assist with protecting the military

         13         mission.  The State of Florida has already spent

         14         $640 million to purchase nearly a half a million acres

         15         in these 37 projects, 400,000 acres remaining.  But

         16         again, this is a statewide view of how the Florida

         17         Forever Project and the military interests converge and

         18         are complimentary.

         19              I will point out that Florida's military base

         20         commanders have offered consistent and strong

         21         leadership in support of acquisition of these parcels.

         22         Until now, however, they did not have the opportunity

         23         to become full partners.  When we say "full partners,"

         24         we mean paying partners.  That has changed.  That has

         25         changed given passage of new authority by the Congress
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         that has for the first time given our military bases

          2         the ability to partner in that new and meaningful way.

          3         If I could have the next slide.

          4              You heard earlier when I spoke about the issue of

          5         Box R Ranch, that this area was an area of biological

          6         importance not just here in Florida, but nationwide.

          7         This map, which has been peer-reviewed by scientists

          8         from around the country, was prepared by the Nature

          9         Conservancy, and it's a nice graphic way of depicting

         10         those areas of the country that really are those areas

         11         where we find the largest concentrations of rare and

         12         endangered plants and animals.  And as you can see, the

         13         Panhandle of Florida is key among them.

         14              GOVERNOR BUSH:  Looks like the people of San

         15         Francisco are an endangered species, which may not be a

         16         bad thing.  (Laughter.)  That's probably good news for

         17         the country.  Did I just say that out loud?

         18              (Laughter.)

         19              MR. STRUHS:  I don't know if they are endangered,

         20         but they are rare.

         21              What I'm going to do now is with the next slide,

         22         I'm going to ask you to look to the Eglin Air Force

         23         Base, to the west, and Apalachicola National Forest to

         24         the east and you will see a number of blue lines

         25         linking those two.  Those lines, in this particular
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         instance, are examples of the movement of the Florida

          2         black bear.  But indeed, that is just an indicator

          3         species.  And that those same linkages also are true

          4         for other plants and animals.  So we have a natural

          5         corridor that occurs between the conservation lands of

          6         the national forest and Eglin Air Force Base.

          7              If you would now go to the next slide, you will

          8         see the remarkable coincidence that existing flight

          9         patterns that are used by the military are largely

         10         consistent with that same conservation interest on the

         11         ground and that is what has given rise to this idea of

         12         a northwest Florida greenway.  This, in fact, is the

         13         conceptual plan.  That stippled area, that corridor, is

         14         an area that we would mark for special consideration in

         15         terms of protection going forward, protecting

         16         recreational uses on the ground, plants and animals as

         17         well as the military's overflights above.

         18              The Nature Conservancy brought a lot of leadership

         19         to this back last summer in 2002 when they sat down

         20         with the commanders at Eglin Air Force Base and DEP and

         21         recognizing this convergence, proposed that we move

         22         forward with this in a more formal way.  And that is

         23         what we are seeking to do today.  I'll point out that

         24         the future military use of the greenway could possibly

         25         include Navy training that is being displaced by the
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         closing of the A Class as well as the new and expanding

          2         F22 training and testing of other new weapons systems

          3         that are in development.  Next slide, please.

          4              This is the Box R Ranch.  This was the agenda item

          5         you previously approved during a formal cabinet meeting

          6         and it is in fact a gateway parcel.

          7              This was a happy coincidence.  I wish I could take

          8         credit for planning it this way.  But indeed it was

          9         just a happy coincidence.  But the parcel you approved

         10         for acquisition today, in fact, serves as an important

         11         part of the gateway to this corridor that will allow

         12         the overflights from the Gulf of Mexico over land, up

         13         over the Panhandle and into Eglin Air Force Base.  So

         14         you are well on your way and this is a good example.

         15              GOVERNOR BUSH:  David, is the second -- the

         16         property that was mentioned, that will come to us in

         17         two weeks, is that also in that swath?

         18              MR. STRUHS:  No, it's not, unfortunately.

         19              GOVERNOR BUSH:  It's to the east of it?

         20              MR. STRUHS:  Yes, it is.

         21              Next slide, please.  This is truly a remarkable

         22         partnership of interests, not least is getting all the

         23         various services and branches of the military

         24         enterprise focused on this.  But when you have every

         25         branch of the service as well as the secretary of the
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         Department of Defense coming together and supporting

          2         this, you know it's important in Washington and your

          3         trip, Governor, to Washington to meet with some of

          4         these individuals was very helpful in moving this

          5         forward.  Next slide.

          6              Finally, the partnership goes beyond just the

          7         military and just the Nature Conservancy and DEP and

          8         the cabinet.  It, in fact, includes Okaloosa County in

          9         a very important way.  They're currently in a planning

         10         process of figuring out how they can preserve the

         11         natural ecosystem that makes their county such a

         12         special place and at the same time recognizing the

         13         important economic contribution that these military

         14         operations have to them.

         15              The Florida Defense Alliance, University of West

         16         Florida, a variety of non-profit organizations, private

         17         foundations and other private landowners, all have come

         18         together to move forward with this concept.

         19              What I'd like to do now is to introduce, it's a

         20         great pleasure for me to introduce Mr. Phil Grone who's

         21         here representing the secretary of defense.

         22              GOVERNOR BUSH:  Good morning.  Thank you for being

         23         here.

         24              MR. GRONE:  Governor Bush, cabinet members, again,

         25         good morning.  As the principal assistant deputy
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          1         undersecretary of defense for installations and

          2         environment, I am deeply honored to be here today

          3         representing the secretary of defense to witness this

          4         key step by the State of Florida in making the

          5         Northwest Florida Greenway a reality.

          6              The Northwest Florida Greenway is significant for

          7         the natural environment, for the long-term quality of

          8         life in the Panhandle in Florida and for military

          9         testing and training activities of the Department of

         10         Defense in this region.  The primary mission of the men

         11         and women who serve in uniform is to remain ever ready

         12         to defend the nation and her liberty when called upon.

         13         To fulfill this mission, we must continue to prepare

         14         our nation's soldiers, sailors, airmen and Marines for

         15         combat and to test and evaluate the weapons systems

         16         they need to succeed in battle and to return home

         17         safely.

         18              The Department of Defense is intensely interested

         19         in the lasting protection of lands and associated air

         20         space on and around our military installations needed

         21         to fulfill this mission.  When surrounding areas are

         22         too intensely developed, the services can lose

         23         flexibility and the ability to adapt to future mission

         24         needs.  Lasting and comprehensive environmental

         25         management is essential so the training and testing can
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         continue.  Comprehensive management is also crucial to

          2         our collective stewardship responsibilities as these

          3         lands are a vital piece of the national heritage.

          4         Through the National Defense Authorization Act for

          5         fiscal year 2003, Congress provided the Department of

          6         Defense new authorities to address encroachment that

          7         increasingly threatens the effectiveness of military

          8         installations and ranges.

          9              The secretary of defense and the secretaries of

         10         the military departments are authorized to enter into

         11         agreements with private conservation organizations or

         12         state or local governments to work more cooperatively

         13         around our installations and ranges.  The authority

         14         provided by Congress is tailored after the Army's

         15         highly successful private lands initiative at Fort

         16         Bragg, North Carolina, where over 7,000 acres have been

         17         protected over the past several years.

         18              Each of the military services are now pursuing

         19         appropriate uses of the new authority.  In addition to

         20         Fort Bragg, the services are using similar cooperative

         21         agreements with entities eligible under this authority

         22         at places like Fort Carson in Colorado, Fort Stewart in

         23         Georgia, Fort Wachucka in Arizona and Camp Pendleton in

         24         California to name but a few.  Here in Florida, the

         25         Army National Guard recently concluded an agreement
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         with the State to protect important habitat around Camp

          2         Blanding.  Similar to the commitment we make today to

          3         work together on behalf of the Northwest Florida

          4         Greenway, these projects all share several common

          5         traits:  Partnerships founded in mutual interest,

          6         protection of valued lands possessing important

          7         biodiversity threatened in some way by the pressures of

          8         encroachment, and proximity to military facilities or

          9         operating areas important to military readiness.

         10              These efforts represent an important new direction

         11         for the Department of Defense whereby we will work

         12         actively with our neighbors to secure our shared future

         13         as responsible stewards of the lands in our care.  The

         14         Northwest Florida Greenway exhibits all of these

         15         traits.  The establishment of the greenway between the

         16         Apalachicola Natural Forest and Eglin Air Force Base

         17         will help to ensure that effective military training

         18         and testing in the Panhandle region can be sustained

         19         while at the same time preserving the region's

         20         priceless environmental attributes and recreational

         21         opportunities for many generations to come.

         22              Today's announced acquisition of the Box R Ranch

         23         by the State of Florida will help anchor the southern

         24         end of this corridor and shows a strong commitment to

         25         fulfilling the promise the Northwest Florida Greenway
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         offers.  On behalf of the Department of Defense I

          2         extend our sincere gratitude to you, Governor Bush, as

          3         well as to Secretary Struhs for your vision and

          4         leadership in enhancing military installations

          5         statewide and especially for personally championing

          6         this project.

          7              Florida has led in conserving natural resources

          8         and this initiative is yet another example of that

          9         leadership.  I also extend our appreciation to the

         10         Nature Conservancy with whom we have partnered for more

         11         than a decade nationwide to sustain the military

         12         mission while protecting the nation's natural

         13         resources.  The Department of Defense and each of the

         14         military services are fully committed to working with

         15         the State of Florida and with any and all other willing

         16         participants to make this vision a reality.  We look

         17         forward to a long and successful partnership.  I thank

         18         the cabinet.

         19              GOVERNOR BUSH:  Thank you very much.

         20              (Applause.)

         21              MR. STRUHS:  We're also delighted this morning

         22         that we were joined by Commissioner Elaine Tucker from

         23         the Okaloosa County Commission.

         24              COMMISSIONER TUCKER:  Good morning.  I'm here

         25         representing Okaloosa County not only as a commissioner
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         but also as a proud military retiree dependent.  My

          2         husband spent over 20 years of active duty in the Air

          3         Force and we chose this area to raise our children and

          4         proudly send our daughters to the university here in

          5         Tallahassee.

          6              Okaloosa County has been a partner with Eglin Air

          7         Force Base, the Florida Environmental Protection Agency

          8         and the nature conservancy from the beginning and your

          9         grants have made that possible.  Okaloosa County enjoys

         10         the sound partnership with Eglin and Hurlburt Field in

         11         supporting the mission and in balancing the future

         12         needs of our community.  Eglin serves as a strong

         13         economic engine to our area, contributing to our low

         14         unemployment rate of 2.81 percent in addition to a

         15         direct fiscal impact in 2003 of $2 billion and an

         16         additional $6 billion to the state of Florida.

         17              Okaloosa County has a military population of over

         18         58,000 and a retiree population of over 38,000.  All of

         19         Okaloosa County has made a commitment to better serve

         20         our military partners through economic incentives with

         21         DOD support customers and strong emotional support to

         22         both the active duty and their families.  This support

         23         comes not only from the county, but also from our

         24         economic development council, strong business partners,

         25         our nine municipalities and our four chambers of
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         commerce.  I am sure that you are very well aware of

          2         the difficult balance our county has between economic

          3         growth and tourism and Eglin Air Force Base and

          4         encroachment.  Eglin land covers over one-third of

          5         Okaloosa County.

          6              With a variety of rare plants and animals in our

          7         area, 19 of which are federally listed as threatened or

          8         endangered, Okaloosa County and the military have

          9         proven their commitment to being proactive in the

         10         environmental management as an integral support of the

         11         military, air, land, and water ranges.

         12              While the military mission is growing and

         13         diversifying so is Okaloosa County.  And through great

         14         partnership today, you ensure the capability of the

         15         military mission while preserving some of Florida's

         16         most beautiful land for future generations.  Our

         17         progress today and our ability to achieve the

         18         opportunities we see in the future are dependent upon

         19         the continuing and increases in the Florida Defense

         20         Alliance and its grants that allow us to pursue

         21         projects like the Northwest Florida Greenway.  Thank

         22         you.

         23              GOVERNOR BUSH:  Thank you very much, Commissioner.

         24              (Applause.)

         25              MR. STRUHS:  Governor, and members of the cabinet,
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         just another signal, another symbol of how much this

          2         project is supported by the local community, we're

          3         delighted that Mayor Glenda Glover is also here in the

          4         audience.  Please stand, Mayor.  Mayor Glover is the

          5         mayor of Fort Walton Beach and we're delighted that she

          6         was able to join us as well.  I'd now like to introduce

          7         the state director of the Nature Conservancy, Ms. Vicky

          8         Tschinkel.

          9              MS. TSCHINKEL:  Good morning, Governor, cabinet

         10         members, friends and colleagues.  On behalf of the

         11         Nature Conservancy, I would like to thank you for the

         12         historic agreement which we're about to sign which we

         13         believe shows great foresight in shaping the Florida we

         14         all want to see.  This is a special partnership.  The

         15         Department of Defense can be proud of the stewardship

         16         of Eglin Air Force Base, the largest single owner of

         17         long leaf pine forest and proud home to a remarkable

         18         diversity of plants and animals.

         19              Governor Bush, you can be proud of the Florida

         20         Forever Program and its unique place in the United

         21         States and even the world as a way to ensure the

         22         important conservation lands are protected.  The

         23         Florida cabinet can be proud of its careful stewardship

         24         of the integrity of the State's land acquisition

         25         program.  We rarely get an opportunity just to thank
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         you for that and we wanted to do that today.

          2              Together these actions with the support of many

          3         other conservation-minded agencies and individuals and

          4         local governments have made and will continue to make

          5         Florida's natural lands and wildlife a priority.  The

          6         Northwest Florida Greenway project focuses on the

          7         protection of an area critical to the mission of the

          8         Nature Conservancy, in fact, the very epicenter of

          9         biodiversity in the southern United States.  TNC's

         10         former president once said, In the end, our society

         11         will be defined not only by what we create, but by what

         12         we refuse to destroy.

         13              The greenway is not only a physical gateway to

         14         Florida's Panhandle, it is a passage to a new Florida,

         15         a reaffirmation of our commitment to the integration of

         16         economic growth and opportunity with the finest of our

         17         natural heritage, a commitment to the best of all

         18         possible Floridas.  Thank you very much.

         19              (Applause.)

         20              MR. STRUHS:  What I would like to do now is

         21         invite --

         22              COMMISSIONER BRONSON:  Well, first, Governor, let

         23         me, as a point of personal privilege, thank, as

         24         commissioner of agriculture the military commanders

         25         that are here with us for their work with the
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                        BOARD OF TRUSTEES - NOV. 12, 2003
          1         Department of Agriculture and Consumer Services,

          2         especially our forestry division which we've had quite

          3         a good relationship on managing forest services both on

          4         our state forest as they connect to the federal lands

          5         in the past and it's been a very good working

          6         relationship and I think considering what you're about

          7         to do here today, that it is a good joint effort and

          8         I'd like to thank them for all the cooperation.

          9              They've also opened up part of their lands under

         10         this agreement for the public where possible to come in

         11         and do recreational activities on those lands where we

         12         have had the state foresters working with them on those

         13         properties.  And I think it's a good combination

         14         between what you are doing now and what they have done

         15         in the past.  It will be a great relationship.  Thank

         16         you all.

         17              MR. STRUHS:  There will be a press availability

         18         following this.  What I'd like to do now is invite the

         19         members of the military service to stand behind that

         20         table and invite the governor and members of the

         21         cabinet to come to that table to sign the agreement

         22         with Mr. Groney and Ms. Tschinkel.

         23              (Thereupon, the proceedings concluded at 11:50

         24         a.m.)

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                        BOARD OF TRUSTEES - NOV. 12, 2003

          2                      CERTIFICATE OF REPORTER


          4    STATE OF FLORIDA    )

          5    COUNTY OF LEON      )


          7              I, KRISTEN L. BENTLEY, Court Reporter, certify

          8    that the foregoing proceedings were taken before me at the

          9    time and place therein designated; that my shorthand notes

         10    were thereafter translated under my supervision; and the

         11    foregoing pages numbered 1 through 106 are a true and

         12    correct record of the aforesaid proceedings.


         14              I further certify that I am not a relative,

         15    employee, attorney or counsel of any of the parties, nor am

         16    I a relative or employee of any of the parties' attorney or

         17    counsel connected with the action, nor am I financially

         18    interested in the action.

         19              DATED this 21st  day of November, 2003.


         21                             ______________________________

         22                             KRISTEN L. BENTLEY, Court Reporter
                                        Notary Public


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