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                         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 Thursday, June 24, 2004
               commencing at approximately 9 a.m.


                                    Reported by:
                                 NANCY P. VETTERICK
                          Registered Professional Reporter

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

.                                                                      2
                         Representing the Florida Cabinet:
                         JEB BUSH

                         CHARLES H. BRONSON
                         Commissioner of Agriculture

                         CHARLIE CRIST
                         Attorney General

                         TOM GALLAGHER
                         Chief Financial Officer
                                        * * *








.                                                                      3
                                      I N D E X

               (Presented by Treasurer Tom Gallagher)

               ITEM                ACTION                  PAGE

               Selection           Approved                  6

               (Presented by J. Ben Watkins, III)

               ITEM                ACTION                  PAGE

               1                   Approved                  8
               2                   Approved                  8
               3                   Approved                  8
               4                   Approved                  9

               (Presented by Jim Sewell)

               ITEM                ACTION                  PAGE

               1                   Approved                 10

               (Presented by Teresa Tinker)

               ITEM                ACTION                  PAGE

               1                   Approved                 11
               2                   Approved                 16
               3                   Approved                 17

               (Presented by Teresa Tinker)

               ITEM                ACTION                  PAGE

               1                   Approved                 18
               2                   Approved                 83
               3                   Approved                 69
               4                   Approved                 19


.                                                                      4
               SITING BOARD
               (Presented by Steve Palmer)

               ITEM                ACTION                  PAGE

               1                   Approved                 85
               2                   Approved                 97

               Board of Trustees of the Internal Improvement
                    Trust Fund
               (Presented by Eva Armstrong)

               ITEM                ACTION                  PAGE

               1                   Approved                 98
               2                   Approved                 98
               3                   Approved                 99
               4                   Approved                101
               5                   Approved                102
               6                   Approved                102
               7                   Deferred                108
               8                   Approved                110
               9                   Approved                111
               10                  Approved                112
               11                  Approved                113
               12                  Approved                121
               13                  Approved                122
               14                  Approved                180
               15                  Deferred                181
               16                  Approved                187

               (Presented by Coleman Stipanovich)

               ITEM                ACTION                  PAGE

               1                   Approved                188
               2                   Approved                188
               3                   Approved                189
               4                   Approved                189
               5                   Approved                189
               6                   Approved                190

               CERTIFICATE OF REPORTER                     191

.                                                                      5
           1                    P R O C E E D I N G S
           2             THE GOVERNOR:  Last year we appointed a new
           3        Parole Qualifications Committee to provide us with
           4        three names to fill a vacancy on the Commission,
           5        and we appointed Tena Pate, who has served the
           6        remainder of that term, which expires at the end
           7        of this month.
           8             We, also, appointed Commissioner David to
           9        serve as the Chair of the Commission and
          10        Commissioner Fred Dunphy to serve as Vice
          11        Chair.  It's now necessary to select a
          12        commissioner for a full six-year term and
          13        appoint a chair and vice chair for a two-year
          14        period.
          15             The Parole Qualifications Committee is
          16        provided by Statute and has elected to forward,
          17        for our consideration, the same three names
          18        that they sent last year, Patrick Donaldson,
          19        Tena Pate, and Robert Woody, who has removed
          20        his name from further consideration as of, I
          21        think, yesterday or the day before.
          22             Our vote today will appoint a commissioner
          23        to a new six-year term beginning July of this
          24        year, select a vice chair, and a chair, and
          25        reauthorize the list of retired commissioners
.                                                                      6
           1        who previously provided to us -- who were
           2        provided to us for temporary duty.
           3             CFO GALLAGHER:  Governor, I'd like to
           4        appoint -- to move to appoint Tena Pate to a full
           5        six-year term, select Monica David as Chair,
           6        select Fred Dunphy as Vice Chair, and approve the
           7        following list of former parole commissioners for
           8        temporary duty, Maurice Crockett, Tony Fontana,
           9        Charles Lawson, Guy Revel, Charles Scribben, Ken
          10        Simmons and Judith Wilson.
          11             ATTORNEY GENERAL CRIST:  Second.
          12             THE GOVERNOR:  There's a motion and a second.
          13        All in favor say aye.
          14             (Affirmative response.)
          15             THE GOVERNOR:  All opposed?
          16             (No response.)
          17             THE GOVERNOR:  The motion passes.  Thank you,
          18        Treasurer.  The next Cabinet meeting will be
          19        Tuesday, August 10th.  I guess we're taking July
          20        off.
          21             CFO GALLAGHER:  No Julys.  How about that?
          22             THE GOVERNOR:  I'll have just -- I'll still
          23        be in the afterglow of my son's wedding on
          24        August 7th.  I'll be excited.
          25             CFO GALLAGHER:  Congratulations.
.                                                                      7
           1             THE GOVERNOR:  I'll be tanned, rested, and
           2        ready.
.                                                                      8
           1          (The agenda items commenced at 9:50 a.m.)
           2             THE GOVERNOR:  Division of Bond Finance.
           3             MR. WATKINS:  Good morning, Governor.
           4             CFO GALLAGHER:  Motion on the minutes.
           5             COMMISSIONER BRONSON:  Second.
           6             THE GOVERNOR:  Moved and seconded.  Without
           7        objection, Item 1 passes.
           8             MR. WATKINS:  Item Number 2 is a resolution
           9        authorizing the competitive sale of up to
          10        $21,495,000 of State Board of Education capital
          11        outlay bonds for local districts and community
          12        colleges.
          13             CFO GALLAGHER:  Motion.
          14             COMMISSIONER BRONSON:  Seconded.
          15             THE GOVERNOR:  Moved and seconded.  Without
          16        objection, the item passes.
          17             MR. WATKINS:  Item Number 3 is a resolution
          18        authorizing the competitive sale of up to
          19        $300 million in right-of-way and bridge
          20        construction bonds for the Department of
          21        Transportation.
          22             COMMISSIONER BRONSON:  Motion on 3.
          23             CFO GALLAGHER:  Second.
          24             THE GOVERNOR:  Moved and seconded.  Without
          25        objection, the item passes.
.                                                                      9
           1             MR. WATKINS:  And Item Number 4 is a report
           2        of award on the competitive sale of $8 million of
           3        student health center revenue bonds for the
           4        University of Central Florida.  The bonds were
           5        awarded to the low bidder at a true interest cost
           6        of 4.61 percent.
           7             CFO GALLAGHER:  Motion on 4.
           8             COMMISSIONER BRONSON:  Second.
           9             THE GOVERNOR:  Moved and seconded.  Without
          10        objection, the motion passes.
          11             MR. WATKINS:  Thank you.
          12             THE GOVERNOR:  Thank you.
          13             MR. WATKINS:  Have a good summer.
          14             THE GOVERNOR:  Good seeing you, Ben.
.                                                                     10
           1             THE GOVERNOR:  Florida Department of Law
           2        Enforcement.  Jim, how are you doing?
           3             MR. SEWELL:  I'm fine, Governor.  How are
           4        you, sir?
           5             THE GOVERNOR:  Excellent.
           6             MR. SEWELL:  We have one item for you.  We
           7        are respectfully submitting for approval of rule
           8        11C-4.009, Uniform Arrest Affidavits and Reports,
           9        for final adoption in Title 11 of the Florida
          10        Administrative Code.
          11             This rule adopts the Uniform Arrest
          12        Affidavit and Arrest Report for use by law
          13        enforcement agencies in DUI arrests and is
          14        required by 2002 Amendment to section 943.05,
          15        Florida Statutes.
          16             CFO GALLAGHER:  Motion.
          17             ATTORNEY GENERAL CRIST:  Second.
          18             THE GOVERNOR:  There's a second.  Without
          19        objection, the item passes.  Thank you, Jim.
          20             MR. SEWELL:  Thank you.
.                                                                     11
           1             THE GOVERNOR:  Florida Land and Water
           2        Adjudicatory Commission.  I almost got it.
           3             CFO GALLAGHER:  Motion on the minutes of
           4        May 11, 2004.
           5             COMMISSIONER BRONSON:  Second.
           6             THE GOVERNOR:  There's a motion and a second
           7        on Item 1.  Without objection, the item passes.
           8             MS. TINKER:  Good morning.
           9             THE GOVERNOR:  Good morning.
          10             MS. TINKER:  Item Number 2, request approval
          11        of the proposed final rule establishing the Split
          12        Pine Community Development District in the City of
          13        Jacksonville.  Governor, we have 2 speakers on
          14        this issue.  The first speaker is Ms. Ellen
          15        Whitmer.
          16             THE GOVERNOR:  Good morning, Ms. Whitmer.
          17             MS. WHITMER:  Good morning, Governor and
          18        Members of the Commission.  I'm happy to be here
          19        today.  I've come all the way from St. Johns
          20        County, and I appreciate this opportunity.  I do
          21        have concerns and opposition to the proposed rule
          22        establishing these community development
          23        districts.
          24             Since the Split Pine Community is related
          25        to the Tolomato Community District, some
.                                                                     12
           1        comments will have a bearing on it as well as
           2        the Tolomato.  The community development
           3        services and facilities will be incompatible
           4        with the capacity and the uses of the existing
           5        local and regional community development
           6        services and facilities.
           7             I am submitting a map from the First Coast
           8        Metropolitan Planning Organization as a proof
           9        of the road failings and deficiencies.  In the
          10        last phases of these developments, we're going
          11        to have most of our roads in category F, some
          12        in E, but most of them in F.
          13             The lack of capacity for the schools, the
          14        libraries, the police, the fire, and the parks
          15        will overburden the general purpose government.
          16        St. Johns County is in an urban sprawl or an
          17        over-allocated position.
          18             The services capacity -- the service
          19        capacity is simply not there in our county.
          20        This is, also, against the state comprehensive
          21        land plan, Statute 187.20115(a) regarding land
          22        use and the St. Johns County's goal 8.1 and
          23        objective 8.1.1 on land use.
          24             I have some strong concerns about impacts.
          25        There's going to be 474 acres of wetland
.                                                                     13
           1        impacts.  This issue is now being evaluated
           2        before the Army Corps of Engineers.  It has not
           3        been decided, but I think this is excessive.
           4             And testimony and previous hearings that I
           5        was in confirmed this to be excessive and
           6        unprecedented.  I have a worry about
           7        contamination of hazardous waste sites on
           8        adjacent property.
           9             I, also, am worried about the devastation
          10        to the wildlife in the area.  I think that
          11        strict scrutiny is necessary here.  This
          12        petition automatically amends the development
          13        order.
          14             There were agreements made in public
          15        hearings regarding proportionate fair share and
          16        other obligations of the developers or the
          17        Nocatee Development Group.  The creation of
          18        these community development districts allows
          19        the responsibility of the developer to be
          20        shifted.
          21             And since Statute 190 is not a development
          22        order, I do not think that this is legal.  I
          23        just think it's absolutely egregious.  I, also,
          24        have a concern for the due process, the
          25        disclosure, the accountability, the ethics, and
.                                                                     14
           1        the government and Sunshine requirements
           2        embodied in 190 due to the fact of the close
           3        relationships of the initial board members of
           4        the proposed districts to the development
           5        companies.
           6             I'm asking that you deny the petitions and
           7        follow the intent of the law as stated in
           8        190.0021(a).  The burden of proof is on the
           9        applicant to show that this is in the public
          10        interest and will not overburden the other
          11        governments and their taxpayers, and that it is
          12        based on a proper and fair determination of the
          13        applicable facts.  Thank you.
          14             THE GOVERNOR:  Thank you very much.  Thanks
          15        for being here.
          16             MS. TINKER:  The next speaker is Cheryl
          17        Stuart representing the CDD.
          18             MS. STUART:  Good morning, Governor --
          19             THE GOVERNOR:  Good morning.
          20             MS. STUART:  -- Members of the Cabinet.  I'm
          21        Cheryl Stuart on behalf of the petitioner SONOC,
          22        LLC, with respect to the Split Pine and Tolomato
          23        CDDs.  The comments made by Ms. Whitmer all
          24        relate, as you know, to the content of the
          25        development in this Nocatee Development.
.                                                                     15
           1             The matter before you today is simply the
           2        establishment of the district.  All of the
           3        issues related to the development, the
           4        intensity, the permitting, et cetera, have
           5        already been dealt with in the development
           6        orders that have been issued for this project,
           7        so those issues have already been all
           8        addressed.
           9             Moreover, the matters she raised, with
          10        respect to compatibility of services, have been
          11        dealt with by the Administrative Law Judge.
          12        There is no incompatibility.  The district will
          13        be providing new facilities and services all
          14        consistent with the development order.
          15             And finally, that development order
          16        contemplates the establishment of these
          17        districts.  We ask for your favorable
          18        consideration.  I'm happy to answer any other
          19        questions.
          20             THE GOVERNOR:  Can you just make reference to
          21        the wetland issue that Ms. Whitmer brought up?
          22             MS. STUART:  Sure.  There are wetland impacts
          23        associated with development, as there are always,
          24        and those are matters, in the normal course,
          25        before the Corps of Engineers in our permitting,
.                                                                     16
           1        and we are in the middle of permitting.
           2             THE GOVERNOR:  That's still underway?
           3             MS. STUART:  Sure.  And that will continue
           4        throughout the life of the project.  The
           5        establishment of these districts does not
           6        eliminate the jurisdiction of the Corps or DEP or
           7        undercut any environmental regulatory requirements
           8        for the project.
           9             THE GOVERNOR:  Okay.  Any questions?
          10             MS. STUART:  Thank you.
          11             THE GOVERNOR:  Teresa?
          12             MS. TINKER:  Yes, sir.
          13             THE GOVERNOR:  What's in front of us
          14        specifically?
          15             MS. TINKER:  The final rule, the proposed
          16        final rule that actually establishes the Community
          17        Development District.  We recommend you approve
          18        that proposed final rule.
          19             CFO GALLAGHER:  Motion.
          20             ATTORNEY GENERAL CRIST:  Second.
          21             THE GOVERNOR:  There's a motion and a second.
          22        Any other discussion?
          23             (No response.)
          24             THE GOVERNOR:  Without objection, the motion
          25        passes.
.                                                                     17
           1             MS. TINKER:  Item 3, recommend approval of
           2        the proposed final rule establishing the Tolomato
           3        Community Development District in St. Johns
           4        County.
           5             CFO GALLAGHER:  Move it.
           6             ATTORNEY GENERAL CRIST:  Second.
           7             THE GOVERNOR:  There's a motion and a second.
           8        Without objection, the item passes.
           9             That's it?
          10             MS. TINKER:  That's it for FLWAC --
          11             THE GOVERNOR:  Very good.
          12             MS. TINKER:  -- Florida Land and Water
          13        Adjudicatory Commission.
          14             THE GOVERNOR:  Well done.
.                                                                     18
           1             THE GOVERNOR:  Administration Commission.
           2        Now I figured out why you weren't leaving.
           3             MS. TINKER:  Item 1, recommend approval of
           4        the minutes.
           5             CFO GALLAGHER:  Move it.
           6             COMMISSIONER BRONSON:  Second.
           7             THE GOVERNOR:  There's a motion and a second
           8        on Item 1.  Without objection, the motion passes.
           9        Item 2?
          10             MS. TINKER:  Governor, I'd like to take the
          11        others out of order, if I might.  I think it may
          12        save us a little bit of time.
          13             THE GOVERNOR:  Okay.
          14             MS. TINKER:  I'd like to go to Item 4 first.
          15        Staff recommends authorization to enter the
          16        amended order of remand.  This is involving a
          17        small scale amendment in the City of Jacksonville.
          18        The parties do not object to the order of remand.
          19             We believe the order is appropriate
          20        because there's been a change in the
          21        designation of a road that is specific to this
          22        particular proceeding.
          23             CFO GALLAGHER:  Motion.
          24             MS. TINKER:  No speakers.
          25             COMMISSIONER BRONSON:  Second.
.                                                                     19
           1             THE GOVERNOR:  There's a motion and a second.
           2        Any discussion?
           3             (No response.)
           4             THE GOVERNOR:  Without objection, the motion
           5        passes.
           6             MS. TINKER:  I'd like to go to Item 3 next.
           7        Staff recommends entering the draft final order.
           8        This is a comprehensive plan amendment for Wakulla
           9        County.  We have several speakers today, Governor,
          10        three petitioners, quite a few concerned citizens,
          11        and then the intervenor.
          12             Our first speaker is Terrell Arline
          13        representing the petitioners, and Governor,
          14        I've asked the speakers to limit their time to
          15        no more than two minutes each.
          16             THE GOVERNOR:  Thank you.  And if it's been
          17        said, don't feel compelled to say it again.  I
          18        mean, add to the conversation if you could.
          19             MR. ARLINE:  Good morning.  My name is
          20        Terrell Arline.  I'm counsel for the petitioners
          21        here.  What I'd like to do is introduce one of the
          22        people on the ground here, Victor Lambou, who is a
          23        former EPA employee and a water quality expert
          24        with many years experience, who may give you a
          25        little background on this.
.                                                                     20
           1             Then I'll finish up with our response to
           2        the recommended draft.  Thank you.
           3             MR. LAMBOU:  Thank you.  I and my fellow
           4        petitioners thank you for giving us the
           5        opportunity to present our views.  This
           6        illustration is of the area, and if you can look
           7        at it, you can see that it is wet.
           8             This project area is part of the Lost
           9        Creek Sump Area which is surrounded by
          10        Rehwinkle Road, Highway 319 and Highway 98.
          11        Lost Creek flows into the area and fills a
          12        large sump area with water after rainfall
          13        events.
          14             Elevations, in this sump area, run from a
          15        few feet above sea level to 15 feet, where the
          16        water would then flow over Highway 98.  I'm not
          17        aware of any recorded event of this happening;
          18        therefore, all this water drains into the
          19        aquifer by percolation or through sinkholes.
          20             Then, as far as the evidence shows, that
          21        it flows for approximately 5 air miles to
          22        Spring Creek Springs.  The Administrative Law
          23        Judge found that the evidence of a connection
          24        between these waters is substantial.
          25             Spring Creek is Florida's largest spring
.                                                                     21
           1        system, and some claim to be the largest in the
           2        world.  It has five times the flow of Wakulla
           3        Springs.  What happens in the Rehwinkle area
           4        will affect the health and integrity of the
           5        Spring Creek Springs.
           6             The wetlands in the Lost Creek Sump Area
           7        are world class and need to be protected.  That
           8        is, we believe that the state and federal
           9        policies and goals of protecting and enhancing
          10        our wetlands mean what they say.
          11             There's, also, the question of public
          12        safety as the Administrative Law Judge has
          13        found this whole area would be flooded by a
          14        category two hurricane, one of less intensity
          15        than a category three hurricane.
          16             It has been suggested by increasing the
          17        size of the designated wetlands, in the project
          18        area, from 64 acres to 85 acres, that this
          19        would solve all the problems.  We believe this
          20        is patently untrue for several reasons.
          21             The Administrative Law Judge stated, in
          22        his finding of facts, that the acreage was at
          23        least 85 acres, and using an acceptable current
          24        methodology of wetland delineation could yield
          25        significantly more acreage.
.                                                                     22
           1             The truth is we do not know how much
           2        wetlands are in this project area, and by
           3        accepting the figure 85 acres, you could be
           4        giving the developer a license to degrade
           5        wetlands as well as threaten Florida's largest
           6        spring system.
           7             Wakulla Comp Plan does contain a wetland
           8        protection policy; however, our county has no
           9        ordinance, rules, or regulations to protect
          10        wetlands and has not engaged to do any wetlands
          11        protection in the past even when presented by
          12        opportunities to do so.
          13             I believe you have our April 14th
          14        statement which details our recommendations.
          15        You, also, have a page of four items that we
          16        think, as a minimum, should be done.  I won't
          17        go into details but just outline them.
          18             We currently -- we believe that the County
          19        needs to accurately delineate and map all the
          20        wetlands in the project area.  The County needs
          21        to identify the hydrological connections, and
          22        based upon this above two, the County needs to
          23        determine if any of the areas are suitable for
          24        development, and if so, at what density.
          25             We, also, believe because of the
.                                                                     23
           1        importance of the Rehwinkle amendment area and
           2        Lost Creek Sump Area to the health and
           3        integrity of Spring Creek, that the County and
           4        State need to explore approaches that will
           5        place Lost Creek Sump Area in public ownership.
           6             THE GOVERNOR:  Thank you, sir.
           7             MR. LAMBOU:  You are in the process of
           8        developing a Spring Creek model development code,
           9        and we commend you for that.  We hope that you
          10        will protect this spring shed.  Thank you.
          11             THE GOVERNOR:  Thank you, sir.
          12             MS. TINKER:  The next speaker is Robert
          13        Alessi, also, a petitioner.
          14             MR. ALESSI:  Good morning, honored members.
          15             THE GOVERNOR:  Good morning.
          16             MR. ALESSI:  I'm here to ask you to help keep
          17        Wakulla County groundwater clean.  Some reasons
          18        would be groundwaters are highly vulnerable, like
          19        Victor said.  Most of Wakulla residents drink
          20        water from private wells which would draw from
          21        untreated groundwater, and, three, groundwater
          22        feeds the springs, and two of the largest ones in
          23        Florida are in Wakulla County.
          24             The potential carrying capacity of land
          25        and, ultimately, of civilization, is determined
.                                                                     24
           1        by water, drinking water.  If water is not
           2        judiciously managed, then groundwater quality
           3        is degraded continually over time.
           4             What will we tell our children?  What will
           5        they tell their children?  I'm a firm believer
           6        in accountability and that we all need to be
           7        accountable.  The ability to analyze the
           8        situation honestly and accurately helps one to
           9        recognize both its weaknesses and its
          10        strengths.
          11             Accountability comes into play when a
          12        person steps up to this responsibility and acts
          13        to correct weaknesses and, also, improves those
          14        things which are already being done well.
          15             Growth management is the promise the
          16        Legislature gave their constituents.  Hope the
          17        part you play is trusting to keep that promise.
          18        Thank you.
          19             THE GOVERNOR:  Thank you for being here, sir.
          20             MS. TINKER:  The next several speakers are
          21        concerned citizens.  They were not part of the --
          22        they're not parties to the proceeding.
          23        Information they present may not be a part of the
          24        record.  I just want to let you know that.
          25             The first speaker is Colleen Ruehl, a
.                                                                     25
           1        Wakulla County resident.  I'm going to name
           2        several and just have them come up --
           3             THE GOVERNOR:  Okay.
           4             MS. TINKER:  -- to save time.  Tim Hazlett, a
           5        hydrogeologist will present a short presentation
           6        followed by Jenny Brock.  If you-all could just
           7        come up and just kind of stand.
           8             THE GOVERNOR:  Good morning.
           9             MS. RUEHL:  Good morning.  Governor Bush,
          10        Members of the Cabinet, and concerned citizens, I
          11        stand here as only one lone citizen that
          12        represents hundreds of citizens throughout the
          13        State of Florida.
          14             I'm a fourth-generation Floridian and
          15        proud of it, and I thank God that I've had the
          16        opportunity to work in or live in every county
          17        in Florida, and it's for those folks that I'm
          18        speaking.
          19             There are two problems.  One is the
          20        development near Spring Creek and the Lost
          21        Creek area.  We're concerned about our Florida
          22        natural resources; so as Nancy Reagan has so
          23        well said, just say no.
          24             We're not against development.  We're for
          25        protecting Florida's natural resources.  I've
.                                                                     26
           1        had firsthand experience that approved project
           2        plans by DEP and the County are absolutely
           3        worthless unless the State has enough manpower
           4        to go out and inspect to be sure that all of
           5        the storm water facilities are in place, and if
           6        the County inspects, and if they find it's not
           7        in compliance, if the County then would enforce
           8        it.
           9             So we have a problem, but, Governor, we
          10        have a solution.  Please appoint a volunteer
          11        task force.  You have learned people that know
          12        about protection of our resources.  We urge you
          13        to include citizens of Wakulla County that have
          14        a vested interest in the future of Florida.
          15             This volunteer task force, we would like
          16        to see them charged with a written project plan
          17        with a time line, implementation plans, and an
          18        evaluation to see if it's working, and we
          19        certainly do not want Florida to scare away our
          20        tourists.
          21             We don't want our tourists to have to come
          22        to a state and feel like they've got to bring
          23        their own bottled water.  Now, you're going to
          24        hear that there's not much money to do these
          25        things, but, yes.  There are ways.
.                                                                     27
           1             Little Gadsden County is using the
           2        increased fees for outsourcing review of
           3        environmental plans.  This might be an option
           4        for us.  Governor and Cabinet, we know what we
           5        need, and we know what we want for Wakulla
           6        County.
           7             We just need a little bit of help and a
           8        little bit of guidance in getting there; so
           9        please think about this as you make your
          10        decision.  How would you like for the future
          11        generations to remember your administration?
          12             We want them to remember you as an
          13        administration that preserved Florida and its
          14        pristine waters.  Thank you.
          15             THE GOVERNOR:  Thank you, ma'am.
          16             MS. TINKER:  Governor, I missed one of the
          17        petitioners.  If we could just go back.  Ron
          18        Capron.
          19             MR. CAPRON:  Good morning.
          20             THE GOVERNOR:  Good morning.
          21             MR. CAPRON:  Good morning.  Ron Capron.  I
          22        live on a 10-acre parcel just immediately south
          23        of -- there's my house right there (indicating).
          24        I'm not a lobbyist, a lawyer, a scientist, and I
          25        don't represent special interests.
.                                                                     28
           1             I am, however, the president of my home
           2        owners association which is on record, since
           3        May 14th, 2002, as opposing this land use
           4        change.  Robert lives up on Evelyn Road, the
           5        next road up, and on occasion we let -- during
           6        rainy times, sometimes we let them use our
           7        road.
           8             I knew, before I started this, that I had
           9        something special when I bought 10 acres in a
          10        gorgeous hardwood hammock of beech, hickory,
          11        oak, and magnolia.  I built a home.  I've
          12        raised a family there.
          13             I have an organic garden, and I have a
          14        well that gives crystal clear water.  The
          15        Administrative Law Judge had a lot of
          16        interesting findings of fact.  I urge you to
          17        strongly consider the dramatic discoveries that
          18        have come about during the process.
          19             On April 20th, 2004, there was a
          20        presentation put on at River Springs Middle
          21        School down in Wakulla that featured
          22        Hydrogeologist Todd Kincaid, Wakulla Springs
          23        Park Manager, Sandy Cook, and the chairman
          24        emeritus of the Florida Springs Task Force, Jim
          25        Stevenson.
.                                                                     29
           1             The additional speaker was Charles
           2        Gautier, who, as you know, is DCA's bureau
           3        chief of local planning.  One of the things
           4        Mr. Gautier said was that, in relation to
           5        protection of Wakulla's resources, was that
           6        business as usual will not be adequate.
           7             I believe that to merely increase the size
           8        of the excluded acreage would be business as
           9        usual.  Vague urgings and encouragements to
          10        Wakulla County to do the right thing offers no
          11        relief to me and my neighbors.
          12             Urban zoning, on this parcel, opens the
          13        door to Urban-2.  It's in our comp plan.  Once
          14        the paved roads, water, and sewer are there,
          15        Urban 1 shall convert to Urban 2.  That's what
          16        it says.
          17             Urban 2 allows greater densities, greater
          18        threats to the groundwater and public safety.
          19        Outside here, as you guys -- I was looking at a
          20        plaque out there at the Florida Heritage
          21        Fountain, and August Bush, III, is quoted as
          22        follows:
          23             Quote, every choice we make regarding the
          24        earth, air, and water around us is made with
          25        the objective of preserving it for all
.                                                                     30
           1        generations to come.  This is how our
           2        stewardship will be judged, and that is our
           3        commitment.
           4             I hope that, in the matter before you
           5        today, that's your commitment.
           6             THE GOVERNOR:  Thank you, sir.
           7             MR. CAPRON:  Thank you.
           8             MS. TINKER:  Tim Hazlett will make a short
           9        presentation on the water issues.
          10             MR. HAZLETT:  Good morning, Governor and
          11        Cabinet.
          12             THE GOVERNOR:  Good morning.
          13             MR. HAZLETT:  Okay.  I'm going to be just
          14        presenting a few slides about the science that my
          15        firm, Hazlett-Kincaid, has been performing over
          16        the last three years in the area called the
          17        Woodville Karst Plain which is the expanse of
          18        limestone rock south of Tallahassee down to the
          19        Gulf of Mexico.
          20             It contains both the Wakulla Springs and
          21        the Spring Creek Spring Group which is just
          22        offshore.  What you're looking at here in this
          23        picture, just to give you a sense of what we're
          24        dealing with with the Karst limestone, the
          25        limestone that dissolves and makes large holes
.                                                                     31
           1        in the rock and, also, cave systems that feed
           2        these large springs.
           3             These are actually divers in the Wakulla
           4        Cave System, and to give you an idea of the
           5        size of conduits there, they're quite large,
           6        tens of feet across up to the size of
           7        basketball stadiums there.
           8             They're absolutely huge, and they're a
           9        very large impact on the regional groundwater
          10        flow through the Woodville Karst Plain.  Okay.
          11        What do we know about the Woodville Karst
          12        Plain?
          13             It's a large karst space, and it's about
          14        625 square miles or about 25 by 25 square
          15        miles.  All or most of the water flow is
          16        underground through the cave systems.  The
          17        caves are very large, ten to more than 100 feet
          18        across.
          19             THE GOVERNOR:  Have they been mapped?
          20             MR. HAZLETT:  Yes, they have.  The Leon Sinks
          21        Cave Systems, Chip's Hole, Sally Ward Spring Cave
          22        System.  Indian Spring and Wakulla Springs caves
          23        all have been mapped.  There are many miles of
          24        large cave systems like this that have been mapped
          25        by cave divers that are really like Everest
.                                                                     32
           1        explorers, if you think of it, because they're
           2        going to depths greater than 300 feet underwater
           3        with mixed gases.  They're quite intrepid
           4        adventurers.
           5             The Woodville Karst Plains contains two of
           6        the largest springs in Florida, as I mentioned,
           7        Wakulla and Spring Creek.  Wakulla, also, is
           8        one of the purest springs in the world in terms
           9        of water quality.
          10             Both inland and coastal ecosystems depend
          11        on the quality of the groundwater coming from
          12        the springs and caves.  Groundwater quality in
          13        the caves and springs is in decline.  Nitrates
          14        from sewage effluent and storm water runoff are
          15        significant contributors to the problem as we
          16        know.
          17             The goals of the research that we've been
          18        involved with have been to identify the
          19        connections between streams and springs.  There
          20        are numerous sinking streams, streams that just
          21        disappear and go underground in the
          22        Apalachicola National Forest.
          23             We have determined the connection between
          24        those streams and some of these cave systems.
          25        We've determined, in part, the sources of water
.                                                                     33
           1        at Wakulla Springs, and some of the research
           2        that we're currently moving into is looking to
           3        determine the sources of water at Spring Creek
           4        Springs.
           5             We've, also, looked to delineate the
           6        spring sheds, i.e. the source area for the
           7        springs, develop modeling tools for computer
           8        modeling of these types of systems where the
           9        Woodville Karst Plain is a test.
          10             I just want to say, from a scientific
          11        perspective, the Woodville Karst Plain is
          12        unique on a global scale.  There is no other
          13        place, in the world, that has the kind of
          14        scientific instrumentation and scientific worth
          15        like the Woodville Karst Plain for studying
          16        karst systems.
          17             We, also, looked to develop a basin scale
          18        resource management planning tools and educate
          19        essential parties about Florida Karst.
          20             Real quickly, the three pictures you see,
          21        on the bottom there, are divers releasing a dye
          22        in the cave system, which is part of some of
          23        the research we've done.  We release the dye,
          24        and we measure at other points within the
          25        system, and that tells us how quickly water is
.                                                                     34
           1        moving through the system.
           2             There's, also, a picture looking up at the
           3        diving platform at Wakulla Springs with algae
           4        covering the rocks which it shouldn't be, but
           5        because of the high nitrate level, it is.  Then
           6        there's an individual from the Florida Geologic
           7        Survey sitting next to a sampling apparatus.
           8             Okay.  What we know about the Woodville
           9        Karst Plain -- this is a map with Tallahassee
          10        in the north and the Gulf of Mexico in the
          11        south.  In the brown area, it's confined.  That
          12        means that the water that falls on the land
          13        surface does not reach the aquifer very
          14        rapidly.
          15             In the Woodville Karst Plain, it's
          16        unconfined, and it's very rapid infiltration.
          17        The water only takes minutes to perhaps days to
          18        get into the actual aquifer that people drink
          19        from.
          20             The Cody Scarp is the defining line
          21        between these two things.  It's a physiographic
          22        feature that marks the highlands that we're
          23        sitting on right now versus the lowlands
          24        which --
          25             THE GOVERNOR:  The spray field is south of
.                                                                     35
           1        that?
           2             MR. HAZLETT:  The spray field is just on the
           3        edge of it really.  It's marked here as a line,
           4        but it kind of wiggles and waggles, and, you know,
           5        the spray field is --
           6             THE GOVERNOR:  That's a scientific term.
           7             MR. HAZLETT:  Yeah.  Well, I'm trying to make
           8        the presentation digestible.  The spray field
           9        is --
          10             THE GOVERNOR:  Is it waggle or wiggle?
          11             MR. HAZLETT:  Yeah.  Yeah.  Well, I don't
          12        know.  By the spray field, it looks like it's
          13        waggling, so -- yeah.  I'll continue on here.
          14             What I'm adding in here now are surface
          15        water features that exist.  That's the
          16        St. Marks River, and it goes underground at the
          17        brown circle and then continues over land,
          18        again, after coming up.
          19             There's Wakulla Springs and the Wakulla
          20        River.  You can, also, see Spring Creek Springs
          21        at the south.  Munson Slew goes underground to
          22        Ames Sink.  Fisher Creek goes underground.
          23        Black Creek goes underground.
          24             Now, these are, on the left side, are all
          25        over in the national forest, and then Lost
.                                                                     36
           1        Creek goes underground.  All those green
           2        feature just added in there are the cave
           3        systems that are mapped.
           4             Okay.  It, also, marks our current area of
           5        study and the future study area, as I
           6        mentioned, in the Spring Creek area.  Okay.
           7        Very quickly, what we have learned
           8        specifically, from our studies.  In the Leon
           9        Sinks Cave System, we have injected dyes and
          10        traced them to where they come out at different
          11        places at sinkholes and springs.
          12             We have a connection between the Leon
          13        Sinks Cave System and Wakulla Springs, and that
          14        connection was never proven before, and it's a
          15        round trip of -- well, not a round trip, but
          16        it's a one-way trip of about 16 kilometers that
          17        connects up this Leon Sinks Cave System and
          18        Wakulla Springs.
          19             The water actually flows to the southern
          20        end of the Wakulla System, as we know it, and
          21        heads north and discharges at the spring.
          22        We've proven that, in a scientific fashion,
          23        using the dye tracing.
          24             Just to give you an idea -- this is very
          25        important, I think -- is that the water flowing
.                                                                     37
           1        through these systems are greater than a mile a
           2        day, the velocity of the water.  A typical
           3        groundwater velocity is about a couple of
           4        centimeters a day in rock.
           5             It doesn't move very fast.  It's a very
           6        creeping flow.
           7             I should wrap up?  Okay.  Just to give you
           8        some ideas, these are velocities that we
           9        actually measured using our work, and we're
          10        trying to trace what happens to the water that
          11        goes into Ames Sink --
          12             THE GOVERNOR:  Who are you doing this for, by
          13        the way?
          14             MR. HAZLETT:  -- this summer.  We're doing
          15        this Florida Geological Survey.  That's who's been
          16        sponsoring this work.
          17             THE GOVERNOR:  How does this overlay relate
          18        to the comprehensive plan in Wakulla County?
          19             MR. HAZLETT:  Well, my goal here today was
          20        to -- and I was asked to come and provide some
          21        scientific knowledge about the Woodville Karst
          22        Plain and the fact that, in these types of
          23        systems -- I think, to answer your question
          24        specifically, in these types of systems, because
          25        there is such rapid interaction between what
.                                                                     38
           1        happens on the land surface, in terms of water or
           2        contamination of any kind, and how quickly that
           3        gets into the groundwater supply, and can end up
           4        in the cave systems, or coming out at the springs.
           5        That's the real essence of the issue.
           6             THE GOVERNOR:  Let me ask the question again.
           7             MR. HAZLETT:  Uh-huh.
           8             THE GOVERNOR:  Does your overlay -- does your
           9        work have -- has Wakulla taken any of this into
          10        consideration as its plan for its future growth?
          11             MR. HAZLETT:  I am not fully aware of all the
          12        political --
          13             THE GOVERNOR:  Maybe Teresa --
          14             MS. TINKER:  The Department of Community
          15        Affairs will address that in a few minutes.  I
          16        don't think they're using this specific study, but
          17        the department is beginning to work with the
          18        County to look more comprehensively at these
          19        issues and to make sure that their comprehensive
          20        plan addresses the groundwater as well as the
          21        springs issues.
          22             THE GOVERNOR:  Okay.
          23             MR. HAZLETT:  Shall I just finish up?
          24             MS. TINKER:  Yes, please.
          25             MR. HAZLETT:  Okay.  I'll finish.
.                                                                     39
           1             This is showing what we know in our
           2        conceptual model right now based on the science
           3        that we've done to date about where the water
           4        comes from.  The groundwater flows south to
           5        Wakulla, and these are probable spring sheds.
           6             This is just showing what we think.  This
           7        is our best scientific model right now of where
           8        the water comes from to Spring Creek and to
           9        Wakulla.  You can see that Spring Creek is
          10        mostly fed by drainages in the Apalachicola
          11        National Forest including Lost Creek.
          12             Wakulla is fed by water coming from south
          13        of Tallahassee, and as the rain increases and
          14        we have different stages of rain, those
          15        boundaries change; so they're not fixed
          16        boundaries.  I'll just give you a different
          17        idea.
          18             Then, in summary, really, the traditional
          19        approaches, to looking at these groundwater
          20        systems, don't apply in the Woodville Karst
          21        Plain.  We're only now learning about how these
          22        systems work.
          23             Previous models had dated the spring water
          24        to decades, centuries, or millennia.  They've
          25        said that it's really old, but our research
.                                                                     40
           1        tells us that the spring water is only days or
           2        weeks old.
           3             Springs do receive a mix of groundwater
           4        that's old and young.  Massive caves control
           5        the flow paths in the Woodville Karst Plain,
           6        and recharge, in the unconfined region, is very
           7        rapid.
           8             Lastly, Lost Creek probably flows to
           9        Spring Creek.  We haven't determined that yet.
          10        We're working on that in the upcoming year, and
          11        we've determined already that fish that are in
          12        Black Creek flow to Wakulla.
          13             Preserving groundwater and spring quality
          14        in our lifetimes will depend on what we do now
          15        with the land surface.  That's the overall
          16        implication.  These are the people that have
          17        supported the work.  Thank you very much.
          18             THE GOVERNOR:  Thank you.
          19             MS. TINKER:  The next speaker is Jenny Brock
          20        followed by Linda Jamison, followed by Manly
          21        Fuller.
          22             MS. BROCK:  Governor Bush, Members of the
          23        Cabinet, thank you for allowing me to speak.  I am
          24        a fifth-generation Floridian, but I've only been
          25        in Wakulla County for 30 years.  I'm still trying
.                                                                     41
           1        to decide if that gives me standing in the county.
           2        I wasn't born there unfortunately.
           3             Anyway, I'm a member of the CCOW,
           4        Concerned Citizens of Wakulla County, and we'd
           5        just like to remind you that the ever present
           6        3-2 vote that's handed down by our Commission
           7        often does not necessarily reflect the wishes
           8        of the majority of the members of the citizens
           9        of the county.
          10             In any case, it, also, fails to consider
          11        the health of the environment and the water
          12        supply.  I was present, at the Commission
          13        meeting, the evening that this amendment was
          14        addressed, and one of our commissioners
          15        actually said:
          16             Folks, I've walked this property.  It's
          17        rough land with a large part of it underwater.
          18        It's not developable in my opinion.
          19             Of course, one or two commissioners alone
          20        can't override the wish to hurry up and develop
          21        every square inch of a place, so we have those
          22        things we're looking at.
          23             We ask that you find this amendment not in
          24        compliance; hence helping us protect some very
          25        valuable wetlands.  This would clearly be
.                                                                     42
           1        consistent with the recently stated promise by
           2        the President to restore or protect as much as
           3        3 million additional acres of United States
           4        wetlands.
           5             Since we all know that protection is
           6        easier, less costly, and more effective than
           7        restoration, we'd like to ask that you consider
           8        this not in compliance, and I'd like to thank
           9        you in advance for helping us encourage
          10        responsible growth management and the
          11        protection of the public's natural resources.
          12        Thank you.
          13             THE GOVERNOR:  I vote for you being a Wakulla
          14        citizen if you've been there 30 years.
          15             MS. JAMISON:  Good morning, Governor and
          16        Cabinet.  My name is Linda Jamison, and I chair
          17        the Big Bend Group of the Sierra Club which is
          18        11 counties in this part of the state.  We're
          19        coming up on our 2,000th member.
          20             I would like to read you a quote from the
          21        Water Resources Atlas of Florida edited by Ed
          22        Fernald at FSU and Betsy Purdum, and you will
          23        find this book on the shelf of just about any
          24        office that deals with water in any way.
          25             They say, virtually every surface water
.                                                                     43
           1        feature in the state, including rivers, lakes,
           2        wetlands, and estuaries, interacts with
           3        adjacent groundwater.
           4             Okay.  Governor Bush, your administration
           5        is taking exemplary strides toward protecting
           6        springs in this state, and I feel privileged to
           7        stand here in support of the springs rule back
           8        in 2003.
           9             Much is being learned about springs, and
          10        much more is yet to be learned.  The springs --
          11        the Florida Springs Task Force and the Florida
          12        Springs Initiative have resulted in many
          13        excellent educational presentations.
          14             I have attended several of those, and I
          15        would like to reiterate a couple of points they
          16        have made in there that have really stuck with
          17        me.
          18             Many springs in south Florida no longer
          19        flow.  Springs, in this part of the state, have
          20        been down 50 percent in their flow volume.
          21        Springs die a slow death of 1,000 wounds, so
          22        who here would wish to add yet another wound?
          23             Today the State of Florida has an
          24        opportunity to steer the course you have set
          25        and stave off wound Number 1001.  I feel
.                                                                     44
           1        confident you will choose to steer the right
           2        course, and I thank you for the opportunity to
           3        be heard.
           4             THE GOVERNOR:  Thank you very much.
           5             MR. FULLER:  Governor and Cabinet, Manly
           6        Fuller, president of the Florida Wildlife
           7        Federation.  I've been a resident of Wakulla
           8        County for 12 years now.
           9             THE GOVERNOR:  You don't count.
          10             MR. FULLER:  I don't count.  I ain't been
          11        there long enough.  Okay.
          12             The Federation has joined with the State
          13        of Florida, in the past, in legal efforts to
          14        protect Wakulla Springs' spring shed.  We're,
          15        also, currently engaged with the Department of
          16        Community Affairs in efforts to protect water
          17        quality and the groundwater in the eastern part
          18        of the county in another legal proceeding.
          19             We think that -- we're glad that the DCA
          20        has recommended additional wetlands acreage to
          21        be -- to come under -- defined as wetlands in
          22        this project, but we don't think that this is
          23        sufficient.
          24             We think we need to do more
          25        comprehensively to address many of the points
.                                                                     45
           1        that the previous speakers have made within the
           2        spring sheds, and we think that there needs to
           3        be a program between state, county, business,
           4        and the public to protect these incredible
           5        resources that the State of Florida enjoys and
           6        has committed significant resources to.
           7             THE GOVERNOR:  Treasurer.
           8             CFO GALLAGHER:  Manly --
           9             MR. FULLER:  Yes.
          10             CFO GALLAGHER:  -- what would -- I mean, this
          11        is privately owned land.
          12             MR. FULLER:  Yes.
          13             CFO GALLAGHER:  There are development rights
          14        that --
          15             MR. FULLER:  Yes.
          16             CFO GALLAGHER:  -- come with that, and my
          17        question is, what is it -- I mean, we, obviously,
          18        added more acreage.  What should we be doing, in
          19        addition, without, you know, stepping on
          20        somebody's, you know --
          21             MR. FULLER:  We think --
          22             CFO GALLAGHER:  -- ownership rights?
          23             MR. FULLER:  We think, with this individual
          24        and other similar projects in the county in the
          25        spring sheds, that we need better storm water
.                                                                     46
           1        treatment programs than we have.  We think that's
           2        a major step to address the issues.
           3             Any other questions?
           4             CFO GALLAGHER:  Well, that would tie in with
           5        DCA's responsibility to see to it that we have
           6        high water quality that could affect --
           7             MR. FULLER:  We certainly encourage that and
           8        I think what Ms. Brock referred to is that there
           9        is some degree of resistance to that at the county
          10        level, and we have critical resources.  We think
          11        it would be good for the State, in however way it
          12        chooses, to send a clear message to the County
          13        that they want to help them do a better job of
          14        protecting these resources.
          15             The County is one of the most rapidly
          16        growing counties, and we certainly do not
          17        oppose development in the county.  We recognize
          18        that Wakulla County, as so much of Florida, is
          19        changing, but we don't believe that what's in
          20        place now is adequate.
          21             We think that we're seeing the beginning
          22        of a degradation of the springs, and we just
          23        recently -- we're sending, I think, today a
          24        letter to Commissioner Castille, with Thousand
          25        Friends of Florida, about our concerns about
.                                                                     47
           1        nutrients that are coming from up, in this part
           2        of the system, down in there.
           3             So it needs to be approached, from a
           4        variety of standpoints, if we're going to
           5        protect these resources for posterity.
           6             CFO GALLAGHER:  Well, I have the same concern
           7        that you have, and I really do think that, from my
           8        standpoint -- and maybe Teresa can help us with
           9        this -- that we need to get DCA involved in -- you
          10        know, prior to approving this to move on, have DCA
          11        involved in seeing do we have a high quality water
          12        runoff standard, and maybe Teresa can tell us how
          13        we can go about doing that.
          14             MR. FULLER:  And our fear is that if too many
          15        of these horses get out of the barn, that we're
          16        not going to be able to pull them back.
          17             THE GOVERNOR:  Thank you, Manly.  Would you
          18        like to respond to the Treasurer's query?
          19             MS. TINKER:  I'd love to.  Again, the
          20        department will be speaking, in a few minutes,
          21        about the actions they're already taking in
          22        conjunction with the Department of Environmental
          23        Protection and the County.
          24             We, also, have language in the recommended
          25        order that strongly encourages those entities
.                                                                     48
           1        to proceed in that direction and to look at
           2        these issues, in a very comprehensive manner,
           3        and to incorporate strategies into their
           4        comprehensive plan, the county's comprehensive
           5        plan, to address these issues in the future.
           6             We believe that you should go forward and
           7        approve the recommendation that staff has made
           8        today which is to find the comprehensive plan
           9        amendment not in compliance, send it back to
          10        the County, direct the County to modify the
          11        wetlands acreage, and then again, on a separate
          12        track, to proceed with that more comprehensive
          13        approach that Mr. Fuller just spoke about.
          14             THE GOVERNOR:  Teresa, didn't the
          15        Administrative Law Judge state that it was a
          16        minimum of whatever the -- I forgot what the
          17        number of acres that were defined as wetland.
          18        Eighty or 90 acres, is that right, that it was a
          19        minimum, but there may be more?
          20             MS. TINKER:  The Administrative Law Judge
          21        determined that, based on the best available
          22        information, the comprehensive plan amendment
          23        clearly did not reserve the number of acres that
          24        they should have for wetlands, and determined that
          25        there were a specific number of acres that should
.                                                                     49
           1        be excluded from the comprehensive plan amendment
           2        to bring that total to 85 acres.
           3             There is differences of opinion about how
           4        much further the Hearing Officer went in terms
           5        of are there more acreages; does this amendment
           6        actually ensure protection of the groundwater
           7        and the springs; and you'll hear more about
           8        that when we bring the rest of the parties up.
           9             THE GOVERNOR:  Okay.  Maybe we should hear
          10        the rest of the parties before we start --
          11             CFO GALLAGHER:  Who are the rest of the
          12        parties?
          13             MS. TINKER:  Sherry Spiers is representing
          14        the intervenor and then Craig Varn representing
          15        the Department of Community Affairs.
          16             THE GOVERNOR:  Let's do it.  Do we have other
          17        speakers that have come?
          18             MS. TINKER:  We do have our citizens to
          19        speak.  Did you --
          20             THE GOVERNOR:  Well, I mean, if they come, if
          21        they could be very brief.  I think we've gotten a
          22        picture of the concerns, but if people want to
          23        come speak, that's part of the process.
          24             MS. TINKER:  The remaining speakers from the
          25        citizens' side are Eric Draper, Janet Bowman,
.                                                                     50
           1        Madeleine Carr, Linda Young, John Headrick, and
           2        Marilyn Wills.  If you-all would just come up one
           3        right after the other.
           4             THE GOVERNOR:  You win points with brevity.
           5             MR. DRAPER:  I'll be quick.  Eric Draper
           6        speaking today for Apalachee Audubon Society, 800
           7        members in Franklin, Leon, and Wakulla County.  We
           8        saw 134 birds this year during our bird-a-thon in
           9        Wakulla.
          10             We have a clear interest there.  A lot of
          11        people go there to see birds.  It's an
          12        extraordinary place.  Governor, thanks to your
          13        leadership, you've done some extraordinary
          14        protection measures down in Wekiva Basin.  The
          15        Legislature passed legislation which will
          16        direct even more extraordinary activities
          17        there.
          18             We think Wakulla County is no less
          19        extraordinary than the areas around Wekiva
          20        Basin, and I think that the issue that the
          21        treasurer suggested, which is that you direct
          22        your staff, direct the DCA, and use this
          23        opportunity right now to give additional
          24        direction.
          25             Not just the kind of voluntary direction
.                                                                     51
           1        that seems to be part of this order, but
           2        something a little firmer telling Wakulla
           3        County that you've got something really
           4        remarkable down there.  Take extra steps to
           5        protect the groundwater and the natural
           6        resources.
           7             It's not a voluntary measure that should
           8        be left up to just that county commission.  It
           9        really is a region of statewide importance.
          10        Act in that direction.  Thank you very much.
          11             THE GOVERNOR:  Thank you, Eric.
          12             MS. BOWMAN:  I'm Janet Bowman.  I'm the legal
          13        director at 1,000 Friends of Florida, and we've
          14        been very involved in springs production efforts
          15        over the last couple of years, both working with
          16        DCA in the preparation of a springs best practices
          17        manual and in the Wekiva Springs Protection Task
          18        Force and Coordinating Committee.
          19             I want to direct my comments specifically
          20        to Commissioner Gallahger's question and really
          21        to provide a suggestion.  That is, in your
          22        recommended final order, the suggestions made
          23        that the commission encourage the County, in
          24        conjunction with DCA, to take more proactive
          25        steps in its growth management policies to
.                                                                     52
           1        protect groundwater, to recognize the
           2        distinctive aspects of the County's
           3        geomorphology and its unique karst features,
           4        and to preserve the County's freshwater springs
           5        as the County's population continues to grow.
           6             I mean, the previous speakers have talked
           7        about how important this issue is, and I think
           8        one way of accomplishing that -- and there's
           9        precedence for doing this -- is in the remedial
          10        measures that go back to Wakulla County, to
          11        specifically provide a schedule for them to
          12        adopt some proactive measures, spring
          13        protection policies in their comp plan, and at
          14        the same time, directing DCA and other agencies
          15        to assist them.
          16             It doesn't have to -- it doesn't have to
          17        delay the development portion of the amendment,
          18        and precedent for that, we've been involved
          19        with some Franklin County amendments where the
          20        entire Franklin County plan was out of
          21        compliance, and an amendment adopted by the
          22        County that allowed the development to proceed
          23        with remedial actions specifically associated
          24        with the development.
          25             But, in addition, a specific deadline for
.                                                                     53
           1        the County to update their plan to address the
           2        deficiencies, and I think that's what needs to
           3        be done here.  Not as a punitive measure at
           4        all, but as a measure to move the ball forward
           5        and to encourage the cooperation of the
           6        agencies.
           7             And frankly, it's not just a Wakulla
           8        County problem.  I mean, it's a regional
           9        problem, and it really requires a regional
          10        solution.  Thank you very much.
          11             THE GOVERNOR:  Thank you.
          12             MS. CARR:  Madeleine Carr.  Good morning,
          13        Governor and Cabinet.  Thank you very much for
          14        this opportunity.  I've lived in Wakulla County
          15        24 years, and my accent just doesn't get it, you
          16        know, so I'm one of the founders of the Friends of
          17        Wakulla Springs.
          18             Watersheds and springs are obviously part
          19        of my own personal concern.  You cannot imagine
          20        my consternation at the degradation of Wakulla
          21        Springs, certainly one of the world's most
          22        studied bodies of water.
          23             In the process of learning about Wakulla
          24        Springs, I became aware of the Rehwinkle issue
          25        because of its implications on the health,
.                                                                     54
           1        cleanliness, and the safety to our fisheries in
           2        another spring system, that of Spring Creek.
           3             I was elated when the Wakulla County Board
           4        of County Commissioners denied this application
           5        to rezone the Rehwinkle tract, but my elation
           6        quickly turned to fury.  Our county
           7        commissioners, probably upon pressure,
           8        rescinded their vote and approved the rezoning
           9        at a later meeting.
          10             Such flip-flopping is more than normal --
          11        more normal than not in Wakulla County.  Should
          12        you decide to reverse the amendment and send it
          13        back to the County, I am convinced, based on
          14        our county's zoning history, that this would
          15        not address the pressure on our groundwater and
          16        watersheds.
          17             I'm not convinced that this beautiful and
          18        wondrous aquifer is not dying very slowly.  The
          19        state spring systems that are so important to
          20        you, Governor, and to the Cabinet, and to
          21        developing of the state would not be served if
          22        Wakulla County Commissioners were told to start
          23        over.
          24             Why?  The same commissioners are still
          25        under the same pressure as they were when they
.                                                                     55
           1        reversed their initial decision.  Many years
           2        ago, during an administrative hearing about the
           3        nonexistence of Wakulla County Storm Water
           4        Treatment Plan, a judge ordered this County to
           5        come up with such a plan.  It has not, the
           6        DCA's generosity of paying for a consultant
           7        just recently, notwithstanding.
           8             Please consider the relief the petitioners
           9        are asking of you, to order Wakulla County to
          10        seek professional and scientific information
          11        about all of its watersheds, not just Wakulla
          12        Springs, before these natural resources die.
          13        Thank you.
          14             THE GOVERNOR:  Thank you very much.
          15             MS. WILLS:  Good morning.  I am Marilyn
          16        Wills, Tallahassee League of Women Voters.  I'd
          17        like to read the letter that we sent to
          18        Governor Bush.
          19             The League of Women Voters of Tallahassee
          20        joins the Sierra Club, 1,000 Friends of
          21        Florida, and other groups in opposing the
          22        Rehwinkle Amendment to Wakulla County's
          23        Comprehensive Plan.
          24             The league opposes this amendment because
          25        it is not in compliance with the comprehensive
.                                                                     56
           1        plan and does not protect sensitive waters in
           2        this region.  The portion of the Lost Creek
           3        Sump Area and the Rehwinkle Amendment should be
           4        preserved in perpetuity in public ownership.
           5             It is important that Wakulla County be
           6        required to follow its comprehensive plan and
           7        adopt a groundwater springs protection
           8        ordinance and a countywide storm water
           9        ordinance.
          10             Wakulla County has a unique opportunity to
          11        protect underground water resources before
          12        unwanted development intrudes on freshwater
          13        supplies.  The health of the County, region,
          14        State, and the citizens, who live here, is at
          15        stake.
          16             The league asks that you oppose the
          17        Rehwinkle Amendment.  The League of Women
          18        Voters of the United States believes that
          19        natural resources should be managed as
          20        interrelated parts of life-supporting
          21        ecosystems.
          22             Resources should be conserved and
          23        protected to assure their future availability.
          24        Pollution of these resources should be
          25        controlled in order to preserve the physical,
.                                                                     57
           1        chemical, and biological integrity of
           2        ecosystems, and to protect public health.
           3             The League of Women Voters of Florida
           4        supported the State and Regional Planning Act
           5        of 1984, and in 1985, the Growth Management
           6        Bill, which strengthened the role of local
           7        government, comprehensive plans, and restricted
           8        coastal development.
           9             The League has long recognized the
          10        importance of wetlands to wildlife habitat,
          11        fisheries, water quality, and flood control.
          12        Thank you.
          13             THE GOVERNOR:  Thank you.  Anybody else?
          14             MS. TINKER:  Marilyn Wills.
          15             MS. WILLS:  That was me.
          16             MS. TINKER:  Oh, I'm sorry.  Okay.
          17             THE GOVERNOR:  Thank you.
          18             MS. TINKER:  Did we get John Headrick?
          19             THE GOVERNOR:  If they're not up there --
          20             MS. TINKER:  Okay.  Okay.  We're going to go
          21        back to the parties now.  Terrell Arline will wrap
          22        up for the petitioners.  He's just got a couple of
          23        minutes -- one minute.
          24             MR. ARLINE:  Thank you.  This is a major
          25        groundwater case.  This case found that there was
.                                                                     58
           1        a connection between land use and groundwater
           2        which we all know.  It reflected many of the
           3        principles that were prepared by DEP and the
           4        Springs Initiative Task Force which this
           5        administration supported.
           6             We know that the site has a connection,
           7        through a karst feature in this wetland, to the
           8        groundwater and probably the Spring Creek.  The
           9        question is what do we do about it?  DCA's
          10        recommendation was just to map the amendment.
          11             Your staff went farther than that, and I
          12        bless them for that.  They said to at least map
          13        the amendment, but go back and encourage
          14        Wakulla County to work with others to protect
          15        its groundwater resources.
          16             Unfortunately, we don't think that's
          17        enough.  Wakulla County, in its comprehensive
          18        plan, over the ten years, has had a requirement
          19        that it adopt a storm water management
          20        ordinance.  It's never done it.
          21             This is an opportunity for the
          22        Administration Commission, in this order, to
          23        ensure that Wakulla County follows through in
          24        its principles of implementing its plan.  What
          25        we recommend is that just before -- on this
.                                                                     59
           1        particular project, in response to
           2        Commissioner Gallahger's point, prior to
           3        entering the amendment on this particular
           4        project, that we recommend that Wakulla County
           5        just consider the data of the connection of
           6        this site to Spring Creek.
           7             Then they can move on and do the other
           8        things that you recommended which is coordinate
           9        with DCA on a countywide basis.  Thank you.
          10             THE GOVERNOR:  Thank you very much.
          11             MS. TINKER:  We're going to move to the other
          12        side now.  Sherry Spiers representing the
          13        intervenor, Brad Suber.
          14             THE GOVERNOR:  Good morning.
          15             MS. SPIERS:  Good morning.  My name is Sherry
          16        Spiers.  I'm with Greenberg Traurig.  I represent
          17        Brad Suber, the intervenor, and contrary to what
          18        you've been told so far this morning, the sky is
          19        not falling as a result of this amendment.
          20             All of the issues that have been raised by
          21        the speakers today were presented to the
          22        Administrative Law Judge, and he concluded
          23        quite clearly, in his recommended order, that
          24        none of the issues raised by the petitioners in
          25        the petition, including their allegation that
.                                                                     60
           1        this amendment will fail to protect wetlands
           2        and natural resources, were, in fact, proved by
           3        the petitioners.
           4             The only issue was with this 266 acre
           5        parcel.  The County attempted to remove the
           6        large wetland that bisects it from the
           7        amendment.  They didn't measure it right.  They
           8        took out 64 acres instead of 85, and therefore,
           9        the amendment was not in compliance.
          10             THE GOVERNOR:  The acreage, reading that, the
          11        ruling here, it says that other better available
          12        data show that the large wetland comprises
          13        85 acres, if not significantly more.
          14             MS. SPIERS:  That was his finding.  All that
          15        was definitively established at the hearing was
          16        that it's 85 acres.  The planning experts who
          17        testified said that, in a plan amendment case, you
          18        don't expect a precise measurement that occurs
          19        when permitting takes place in a wetland.
          20        Jurisdictional delineation is required.
          21             THE GOVERNOR:  Okay.  So you would recognize
          22        that 85 acres would be the minimum.
          23             MS. SPIERS:  I would recognize that.
          24             THE GOVERNOR:  Okay.
          25             MS. SPIERS:  A delineation will occur, and
.                                                                     61
           1        the county plan quite plainly prohibits
           2        development in wetlands, period; so whatever the
           3        extent of it is, it cannot be disturbed no matter
           4        what land use category it's in.
           5             In addition, for the types of ordinances
           6        that you're being asked to direct the County to
           7        adopt, there's absolutely no precedent for
           8        doing that under a circumstance other than when
           9        a comprehensive plan is in front of the
          10        Commission, and the plan, itself, the goals,
          11        objectives, and policies, have been found to be
          12        not in compliance.
          13             Then the Commission directs the local
          14        government to go back and correct that and
          15        adopt objectives and policies that are in
          16        compliance with state law.  In this case, the
          17        Wakulla County plan is already in compliance.
          18        It prohibits development in wetlands.  It
          19        requires that predevelopment of water quality
          20        in wetlands be maintained, that groundwater
          21        quality be maintained at or above state
          22        standards, and that storm water meet state
          23        water quality standards.
          24             That's what is legally required.  It's
          25        what they adopted.  It's been approved.  It's
.                                                                     62
           1        in effect, and it is implemented in the County.
           2        In addition, to address issues related to the
           3        karst sensitive nature of the County, the
           4        County, with a grant from DCA, started working
           5        on that last October.
           6             A study has been ongoing since that time.
           7        Recommendations related to it are due to the
           8        County in November, and modifications, if any
           9        are needed to the plan, will be made based on
          10        those recommendations.
          11             In the meantime, we've got 181 acres of
          12        usable land on the edge of the town of
          13        Crawfordville in what the judge found was the
          14        most appropriate location for housing
          15        development in Wakulla County.
          16             They need the amendment.  More than
          17        67 percent of this county is in public
          18        ownership.  The only place for people to live
          19        and work is in the eastern part of the county,
          20        in this karst nature, and that is where people
          21        build their homes and their businesses.
          22             We're asking for the opportunity to do the
          23        same in an area where it's needed.  If there
          24        are any questions, I'd be happy to answer them.
          25             THE GOVERNOR:  Any questions?
.                                                                     63
           1             COMMISSIONER BRONSON:  I do have a question.
           2             THE GOVERNOR:  Yes, Commissioner.
           3             COMMISSIONER BRONSON:  Thank you, Governor.
           4        On this development, potential development area,
           5        was the idea to use an effluent facility that will
           6        be built there, or septic tanks, or what was
           7        the --
           8             MS. SPIERS:  It will be built on a central
           9        sewers.  There are lines within about a mile.
          10        There's a development agreement with the County,
          11        and the evidence, also, in the hearing and in the
          12        judge's order, was that we'll be using central
          13        sewer.
          14             CFO GALLAGHER:  Okay.
          15             MS. SPIERS:  Thank you.
          16             THE GOVERNOR:  Thank you.
          17             MS. TINKER:  We have one last speaker.  Let
          18        me just let you know the Wakulla County Attorney
          19        is here, Donna Biggins.  She's not planning to
          20        speak, but she is available for questions.
          21             The last speaker is Craig Varn from the
          22        Department of Community Affairs.
          23             MR. VARN:  Good morning, Craig Varn,
          24        Department of Community Affairs.  I wanted to just
          25        step up and briefly discuss or explain what the
.                                                                     64
           1        department's recommended remedial measure was in
           2        this and the basis for that recommendation.
           3             Upon reading the ALJ's recommended order,
           4        the only things that became clear were that
           5        this wetland was 85 acres, potentially larger;
           6        however, there's no explanation of what that
           7        potentially larger was.
           8             We know it's 85 acres.  We understand
           9        that, and if you look at the recommended order,
          10        paragraph 110, explains that it is that
          11        reclassification that causes all these
          12        potential problems.
          13             We've heard a lot of talk about this
          14        kinetivity, potential groundwater pollution,
          15        issues along those lines.  What's missing is
          16        the cause to that effect, and the cause, as
          17        laid out by the Administrative Law Judge in
          18        paragraph 110, is simply that redesignation of
          19        the land from agricultural to urban uses.
          20             What the department has said -- and our
          21        position, quite frankly, has been constant
          22        through this process -- is take the wetland out
          23        of the redesignation, and that's why our
          24        remedial measure to, instead of taking what we
          25        thought was correct data, 61 acre wetland, take
.                                                                     65
           1        it to the 85 acres which was explained in the
           2        hearing to be the accurate data.
           3             Along that line, we, also, wanted to point
           4        out there's been a lot of discussion about
           5        continuing to work with the County on a
           6        comprehensive basis.  The department is in the
           7        process of doing that.
           8             We currently have a grant to the County
           9        that provides them -- I believe it's
          10        approximately $10,000, to look at their LDRs,
          11        look at their comprehensive plan, and make
          12        changes that are necessary.
          13             My understanding is that, in November, a
          14        schedule for such changes will be due.
          15        Additionally, the department has filed a
          16        proposal with the Department of Environmental
          17        Protection, been working with Secretary
          18        Castille's office quite a bit.
          19             This proposal and phase 4 provides for
          20        additional funding to the County to implement
          21        another project that the department is in the
          22        final phases on, and that's the model springs
          23        code.
          24             Through the springs initiative, the
          25        department anticipates continuing to work with
.                                                                     66
           1        Wakulla County.  The project that's up right
           2        now would provide funding.  Wakulla County is
           3        listed as a potential local government to
           4        provide funding, too, for implementation of
           5        this code.
           6             I don't think there's a huge disagreement
           7        that things need to be addressed on a
           8        comprehensive level.  I think the disagreement
           9        comes to as to whether or not this amendment --
          10        and based upon the recommendation of the
          11        Administrative Law Judge -- provides a
          12        mechanism for doing that.
          13             The department anticipates continuing to
          14        work, and we do believe that we'll address a
          15        lot of these issues in the future.
          16             THE GOVERNOR:  Questions?
          17             COMMISSIONER BRONSON:  Thank you, Governor.
          18        I want to make sure that I've got this right.  No
          19        matter what Wakulla County Commission decides to
          20        do on zoning, they still have to meet criteria
          21        both from DCA, and they're going to have to meet
          22        some criteria based on DEP's recognition of
          23        wetlands and what makes up wetlands.
          24             So adopting the 85 acres minimum is going
          25        to be -- that'll be done.  It'll have to be
.                                                                     67
           1        done, or it won't be approved, or it'll be
           2        coming back here, I would assume.
           3             And then any acreage above that that may
           4        be deemed wetland will have to be adopted, or
           5        there will be an order by DEP or DCA to the
           6        County based on those conditions; isn't that
           7        correct?
           8             MR. VARN:  Yes, sir.  That is correct.
           9             COMMISSIONER BRONSON:  So the fact that the
          10        County is moving in this direction is only one
          11        step in it to comply with all recommendations
          12        before the final order is given by the County, or
          13        any development of any type starts in this area
          14        will have to be met, right?
          15             MR. VARN:  Yes, sir.
          16             COMMISSIONER BRONSON:  Okay.  I just want to
          17        make sure all that's straight in my head.
          18             THE GOVERNOR:  Thank you.
          19             MR. VARN:  Thank you.
          20             MS. TINKER:  That concludes the speakers,
          21        Governor.  Again, the staff recommendation is to
          22        find the comprehensive plan amendment not in
          23        compliance, send it back to Wakulla County, and
          24        direct that they look at the best available
          25        information, and that is actually named in the
.                                                                     68
           1        remedial action, the document that they look at,
           2        and include approximately 85 acres of wetlands.
           3             It may be a little more.  It may be a
           4        little less, but they've got to look at that
           5        best available data to determine what it is,
           6        and then modify the comprehensive plan
           7        amendment to ensure that those wetlands are not
           8        redesignated to a different land use.
           9             THE GOVERNOR:  Treasurer.
          10             CFO GALLAGHER:  I have a substitute motion,
          11        and that substitute motion is that we adopt the
          12        recommended order with the following language.
          13        That would be, Number 4 would read, in accordance
          14        with section 163.3184(11(a) Florida statutes and
          15        based on findings of fact Numbers 65, 89, 108,
          16        110, 111, and conclusions of law, 132, 135, 137,
          17        138, and 139, the Commission modifies DCA's
          18        recommendation of remedial measures to require the
          19        following:
          20             A, the extent of wetlands on the site
          21        shall be established using the best available
          22        data, as found by the Administrative Law Judge.
          23             B, once the extent of the wetlands is
          24        established, the County shall analyze the
          25        hydrology, geomorphology, and topography --
.                                                                     69
           1             THE GOVERNOR:  Topography.
           2             CFO GALLAGHER:  -- of the area -- thank you,
           3        Governor.
           4             -- and topography of the area to establish
           5        whether the site is suitable for the intensity
           6        of development allowable under the proposed
           7        land use designation.
           8             THE GOVERNOR:  There is an amended motion --
           9             COMMISSIONER BRONSON:  Second.
          10             THE GOVERNOR:  -- and a second.  Any other
          11        discussion?
          12             (No response.)
          13             THE GOVERNOR:  All in favor, say aye.
          14             (Affirmative response.)
          15             THE GOVERNOR:  All opposed?
          16             (No response.)
          17             THE GOVERNOR:  Very good.
          18             MS. TINKER:  Governor --
          19             THE GOVERNOR:  Thank you.  Yes.
          20             MS. TINKER:  Governor, we'll go back to Item
          21        2 now.  Item 2 is a small scale amendment for Polk
          22        County.  Again, we have a few speakers, not as
          23        many as the last item.
          24             THE GOVERNOR:  That's good to know.
          25             MS. TINKER:  The petitioners are represented
.                                                                     70
           1        by Terrell Arline and Jean Reed.
           2             MR. ARLINE:  Lucky enough to appear, before
           3        you, twice today.  I'm Terrell Arline.
           4             THE GOVERNOR:  Could you move the microphone
           5        up a little bit, sir?
           6             MR. ARLINE:  I'm sorry.  My name is Terrell
           7        Arline.  I represent the petitioners.  I'd like to
           8        introduce one of my clients, Jean Reed, who wants
           9        to briefly make a statement, and then what I want
          10        to do is address the legal issue that's before you
          11        that has to do with standing.
          12             Jean?
          13             MS. REED:  Good morning.  My name is Jean
          14        Reed.  I'm from Winter Haven, Florida, home of the
          15        soon-to-be-reopened Cypress Gardens Adventure
          16        Theme Park.
          17             THE GOVERNOR:  How's that going?
          18             MS. REED:  It's going well.  I think the
          19        target date is October 1st, so we hope they hold
          20        to it.  We're all eager to get there, get our
          21        annual passes.  As chair of Citizens for Proper
          22        Planning and for the residents of Polk County, I
          23        want to thank the Cabinet aides for meeting with
          24        us and for their careful review and appropriate
          25        recommendations on the land use issue.
.                                                                     71
           1             As well, we appreciate the aides'
           2        recommendations to grant Citizens for Proper
           3        Planning standing.  Citizens for Proper
           4        Planning is a Florida nonprofit countywide
           5        organization, and as such, as many
           6        organizations do, it provides a form for
           7        people -- for the public to unify and organize
           8        their efforts on issues affecting their quality
           9        of life in many areas.
          10             I won't go into the background of issues,
          11        but I've been following this since 2002, and
          12        I've been involved in most areas of it, but I
          13        hope that you will be in agreement with your
          14        staff's recommendations.
          15             And I just thank you for taking the time
          16        to finally put this issue to rest.  Thank you
          17        very much.
          18             THE GOVERNOR:  Thank you very much for being
          19        here.
          20             MR. ARLINE:  This is a small scale plan
          21        amendment, but it's got this big tar baby tied to
          22        it that deals with the standing of nonprofits to
          23        challenge comprehensive plan amendments.  We filed
          24        exceptions to a recommended order of the Hearing
          25        Officer.
.                                                                     72
           1             Essentially, standing is provided, under
           2        Florida law, for affected persons to challenge
           3        comprehensive plan amendments.  The statute
           4        defines affected persons to include persons
           5        owning property residing, and then it says
           6        owning or operating a business.
           7             That nonprofit corporation that Jean is
           8        involved with, Citizens for Proper Planning,
           9        the finding of fact was that what it did was
          10        educate the public on growth management issues.
          11        The Hearing Officer, on his own initiative --
          12        there was no disagreement that they didn't have
          13        standing, and the County and the intervenor or
          14        the developer, in this case, had not disagreed
          15        with our position on standing.
          16             The Administrative Law Judge, on his own
          17        initiative, concluded basically that these
          18        nonprofit organizations are not traditional
          19        businesses -- and he came up with the term
          20        traditional business on his own -- and said
          21        that they can't bring these comp plan challenge
          22        cases.
          23             And we think that that construction, to
          24        say that you basically have to be a -- you have
          25        to be a trade, or he said you had to have a
.                                                                     73
           1        vocation in order to be a business.  It's
           2        wrong, and it needs to be reversed.
           3             It's wrong legally because it's
           4        inconsistent with three final orders of the
           5        Department of Community Affairs that have found
           6        that nonprofit groups are businesses that have
           7        standing under the statute.
           8             They found 1,000 Friends of Florida was a
           9        business that had standing.  They found the
          10        Audubon Society of the Everglades was a
          11        business that had standing.  They found the
          12        Sierra Club was a business that had standing.
          13             And there's one final order of the
          14        Administration Commission, from 1996, in which
          15        the Responsible Growth Management Coalition of
          16        Lee County was concluded to have standing, and
          17        that it did some type of a business.
          18             It's, also, inconsistent with the
          19        definition of, in the hearsay rule and the
          20        evidence code on what -- that businesses
          21        include nonprofits.
          22             Finally, remember, nonprofit challengers
          23        to these plan amendments are not always just
          24        these environmental groups.  In the Keys, the
          25        comprehensive plan was challenged by a
.                                                                     74
           1        nonprofit called Monroe County Chowder and
           2        Marching Society which was a nonprofit
           3        organization --
           4             THE GOVERNOR:  Sounds like the Keys.
           5             MR. ARLINE:  -- of landowners, but it was an
           6        organization of landowners in the Keys that was
           7        concerned about that plan amendment.
           8             In Alachua County, it was a group called
           9        Preserving Rural Property Values which was an
          10        organization of farmers and landowners that
          11        challenged that plan amendment.
          12             In Broward County, it was the Economic
          13        Development Counsel of Broward County and the
          14        Building Association of South Florida that
          15        challenged a plan amendment down there, so the
          16        other thing is that -- so it's not just the
          17        nonprofit environmentals.  It's home owners
          18        associations, civic associations, a lot.
          19             THE GOVERNOR:  How can the Judge be making
          20        that determination?  Isn't that embedded in a
          21        statute somewhere?  How do they make this
          22        off-the-top-of-their-head determination?
          23             MR. ARLINE:  He just defined -- he defined
          24        the term business not to include nonprofit
          25        corporations, and I'm here to tell you that there
.                                                                     75
           1        are a lot of nonprofit corporations that will be
           2        affected by this.
           3             The only way to challenge comprehensive
           4        plan amendments is through this process that's
           5        been created statutorily, and if you don't
           6        reverse this exception -- I mean, grant our
           7        exceptions on this, I mean, it's going to
           8        affect these groups statewide.  Thank you.
           9             THE GOVERNOR:  Thank you.
          10             MS. TINKER:  The next speaker is Michael
          11        Gallaher representing Jack Berry, the intervenor.
          12             MR. GALLAHER:  Good morning, Governor and
          13        Cabinet.  It's an honor to be here before you this
          14        morning.  For the record, my name is Michael
          15        Gallaher, and I'm an attorney with Peterson and
          16        Myers Law Firm in Lake Wales, Florida.
          17             We represent Jack M. Berry, the applicant,
          18        property owner, and intervenor in this case,
          19        and I'd just like to start off this morning, I
          20        think, with some good news.  As Terrell had
          21        said, we really have no objection to their
          22        exceptions concerning the judge's findings
          23        regarding standing.
          24             It's an issue which really doesn't affect
          25        the outcome of the case and isn't germane to my
.                                                                     76
           1        client, and so I yield to Terrell's analysis.
           2        This is -- hopefully, we're nearing the end of
           3        a two-year odyssey for this client.
           4             They applied for this comprehensive plan
           5        amendment in July of 2002, and it is almost
           6        July of 2004.  I would like to cast my comments
           7        this morning as a practical approach.  I would
           8        like to recommend a practical solution to this
           9        matter.
          10             This amendment consists of two components,
          11        a business park center component and a
          12        convenience center component.  Without going
          13        into any great detail, the recommended order
          14        addressed numerous challenges raised by the
          15        petitioners concerning this amendment as to
          16        each component.
          17             As a result, the findings of fact found
          18        that the BPC, the Business Park Center, had
          19        some compliance issues.  Now, we didn't agree
          20        with the recommended orders conclusions in that
          21        regard; however, for the purposes of this
          22        hearing, I just want to address that as a
          23        forgone conclusion.
          24             The findings of fact found nothing wrong
          25        with the convenience center portion of the
.                                                                     77
           1        amendment; however, given the nature of the
           2        proceedings, although there was approximately
           3        10 or 12 issues raised by the petitioners, only
           4        two of them were found to actually be real
           5        problems with the amendment, and both of them
           6        went to the compliance with the BPC portion of
           7        the amendment.
           8             What we would like for the Administration
           9        Commission to do, at the very least, is adopt
          10        the draft final order, which staff has
          11        prepared, with one change.  We would like the
          12        Administration Commission to exercise their
          13        authority, under statute, to direct the County
          14        to take remedial action.
          15             This is really an issue of equity and good
          16        governance.
          17             THE GOVERNOR:  What remedial action?
          18             MR. GALLAHER:  The remedial action would be
          19        to adopt an ordinance without the BPC component,
          20        which everyone agrees, for the purposes of our
          21        discussion this morning, has a compliance problem,
          22        and to adopt only the CC component, as it was
          23        presented in the application, which everyone
          24        agrees does not have a compliance problem.
          25             There is no reason not to do this.  There
.                                                                     78
           1        is a reason to do this which is if the final
           2        order simply makes a finding of noncompliance
           3        and does not direct remedial action, the
           4        applicant will be forced to start from scratch
           5        with the amendment in spite of the fact that
           6        it's already been reviewed and found to be, for
           7        lack of a better term, compliant.
           8             That process takes approximately three to
           9        six months.  In this particular instance, I
          10        know for a fact it will take until January 6,
          11        six months from now because the County is out
          12        of small scale acreage.
          13             Every county is allotted a certain amount
          14        of small scale acreage every year.  Polk County
          15        is out, so in spite of the outcome of this
          16        case, we'd have to start from scratch.  With a
          17        remedial action directed, a hearing, one
          18        hearing, before the Board of County
          19        Commissioners can be held.
          20             The convenience center portion of the
          21        amendment alone can be adopted, at the
          22        direction of the Administration Commission, and
          23        we can put this issue hopefully to bed.  I
          24        can't speak for the petitioners with how they
          25        might appeal the final order, but I can say
.                                                                     79
           1        that we would not be going back to the
           2        beginning of the process and then potentially
           3        facing another Division of Administration
           4        hearing case at the end.
           5             So with respect, Governor and Cabinet, I
           6        would ask that the final order that's been
           7        prepared by your staff be executed without one
           8        change to direct remedial action, and I will
           9        stay for any questions you may have, and I
          10        appreciate your time this morning.
          11             THE GOVERNOR:  Thank you.
          12             MS. TINKER:  We have two additional speakers,
          13        Janet Bowman and Manly Fuller, who wanted to speak
          14        to the standing issue.
          15             MS. BOWMAN:  Janet Bowman, legal director of
          16        1,000 Friends of Florida.  I want to reiterate the
          17        comments of Mr. Arline regarding standing and
          18        point out that if the conclusions of law of the
          19        Hearing Officer were to become the law of the
          20        land, nonprofit groups would be out of business as
          21        far as participating in the comprehensive planning
          22        process.
          23             And, I mean, that's the exact kind of
          24        thing that's generating the hometown democracy
          25        movement and dissatisfaction with citizen
.                                                                     80
           1        participation in comprehensive plan matters,
           2        and that really the only way one would be able
           3        to obtain standing, as a nonprofit, would be if
           4        you started engaging in commerce, started
           5        having lemonade stands or thrift shops or
           6        something that met that particular definition
           7        of standing.
           8             And of course, citizen participation in
           9        the political process is something that's very
          10        important, and 163 specifically encourages in
          11        the substance of the statute, citizen
          12        participation and growth management.  Thank
          13        you.
          14             CFO GALLAGHER:  I have a question.  Do you
          15        have -- I mean, are you-all in favor of the home
          16        town amendment?
          17             MS. BOWMAN:  No.
          18             COMMISSIONER BRONSON:  Okay.  Just checking.
          19             THE GOVERNOR:  Manly.
          20             MR. FULLER:  Governor and Members of the
          21        Cabinet, we, Florida Wildlife Federation, shares
          22        the same concerns that Terrell Arline and Janet
          23        Bowman expressed to you, and the same Hearing
          24        Officer concluded that the Florida Wildlife
          25        Federation did not have standing this past year in
.                                                                     81
           1        a St. Johns County case for a similar reason.
           2             And we have several hundred members in the
           3        County and have been involved in many other
           4        issues in the County in legal proceedings and
           5        growth management issues over the years; so we
           6        feel that Judge Alexander's decision is very
           7        chilling for nonprofits.
           8             And we've actually experienced that
           9        ourselves, so we would appreciate it if you
          10        would consider Mr. Arline's recommendation.
          11        Thank you.
          12             CFO GALLAGHER:  Manly, let me ask a question.
          13        Don't we have some other legal case pending on
          14        this issue?
          15             THE GOVERNOR:  Yes.
          16             MR. FULLER:  Yes.  Maybe perhaps it might be
          17        better addressed to Mr. Arline because he's an
          18        attorney and I'm not.  I'm going to mess up if I
          19        start giving you a legal opinion.
          20             MR. ARLINE:  To answer your question, this
          21        very same issue is right now in the laps of the
          22        Secretary of the Department of Community Affairs
          23        for him to decide.  His legal staff has filed
          24        exceptions which mirror ours.
          25             The same Administrative Law Judge issued
.                                                                     82
           1        virtually the same opinion that nonprofits
           2        didn't operate businesses in two similar cases.
           3        One was a large scale plan amendment which goes
           4        to the Department of Community Affairs, so
           5        Secretary Collins got that one.
           6             The other one, the small scale, comes to
           7        you, and yet you get to bite the bullet first.
           8             THE GOVERNOR:  Haven't there been other ALJ,
           9        other judges, that have ruled that the definition
          10        is broader?
          11             MR. FULLER:  Oh, absolutely.  Judge Stampelos
          12        and Judge Johnston in two cases, and there may be
          13        another, but I know for sure those two have
          14        disagreed with him.
          15             THE GOVERNOR:  We just need to change the law
          16        and make it clearer.
          17             MS. TINKER:  Just to be clear, the staff's
          18        recommendation does reject the conclusions that
          19        the Hearing Officer set forth.  There is another
          20        case pending before the Department of Community
          21        Affairs.
          22             We felt that the standing was really a
          23        moot issue, in this proceeding, because the
          24        other -- because the petitioner had actually
          25        covered all the issues, so it wasn't really an
.                                                                     83
           1        issue between the parties.
           2             We believe that is best handled in the
           3        other proceeding pending before DCA.  Again,
           4        staff recommends entering the final order
           5        finding the comprehensive plan amendment not in
           6        compliance.
           7             CFO GALLAGHER:  Motion on 2.
           8             COMMISSIONER BRONSON:  Second.
           9             THE GOVERNOR:  Is there any discussion?
          10             (No response.)
          11             THE GOVERNOR:  I would hope one day that we
          12        could get rid of this.  This is -- to be honest
          13        with you, this is not a -- small amendment changes
          14        should not be done by the Cabinet and the
          15        Governor.
          16             If we can't figure out to how to do growth
          17        management in a better way, something is wrong.
          18             CFO GALLAGHER:  Especially for the whole
          19        state of Florida.
          20             THE GOVERNOR:  Yeah.  I mean, this is not --
          21        we're not -- never mind.  Motion and a second.
          22        All in favor, say aye.
          23             (Affirmative response.)
          24             THE GOVERNOR:  All opposed?
          25             (No response.)
.                                                                     84
           1             MS. TINKER:  Thank you, Governor.
           2             THE GOVERNOR:  You bet.
           3             MS. TINKER:  Oh, I'm sorry.  Can I just add
           4        one other thing to the --
           5             THE GOVERNOR:  No.
           6             MS. TINKER:  I just want to get the
           7        permission to clarify the amendment that you-all
           8        offered to the staff's final order in Wakulla.  We
           9        just need to be clear that once the County
          10        determines what the correct acreage is for the
          11        wetland, that they actually take it out of that
          12        comprehensive plan amendment.
          13             CFO GALLAGHER:  Right.  That's exactly what
          14        we mean when we say figure out what it is because
          15        wetlands can't be developed on anyway, so --
          16             MS. TINKER:  Right.
          17             CFO GALLAGHER:  -- it's pretty --
          18             MS. TINKER:  Right.
          19             CFO GALLAGHER:  -- obvious, but --
          20             MS. TINKER:  Right.  I just wanted to
          21        clarify.
          22             CFO GALLAGHER:  -- you just needed to
          23        clarify.
          24             MS. TINKER:  Thank you.
          25             CFO GALLAGHER:  Thank you.
.                                                                     85
           1             THE GOVERNOR:  The Siting Board.  Item 1 --
           2             MR. PALMER:  Item 1 --
           3             THE GOVERNOR:  Is there a motion?
           4             MR. PALMER:  -- is the minutes to the May
           5        25th --
           6             THE GOVERNOR:  Is there a motion?
           7             ATTORNEY GENERAL CRIST:  Motion.
           8             THE GOVERNOR:  Is there a second?
           9             CFO GALLAGHER:  Second.
          10             THE GOVERNOR:  Moved and seconded.  Without
          11        objection, Item 1 passes.  Thank you.
          12             MR. PALMER:  On Item 2, we have two parties
          13        that wish to speak to the item.  This is regarding
          14        a 54-mile hung, 230 kilovolt transmission line to
          15        be constructed in Lee and Collier Counties
          16        connecting the Orange River Substation near
          17        Ft. Myers with the Collier Substation near Naples.
          18             And the staff is recommending, subject to
          19        the conditions, that this be approved.  We have
          20        Mr. Ken Smith, who would like to speak to the
          21        issue, and Mr. Eric Draper of the Audubon
          22        Society.
          23             Mr. Smith is a resident who is affected by
          24        this particular transmission line.
          25             THE GOVERNOR:  Good morning.
.                                                                     86
           1             MR. SMITH:  Good morning, Governor and
           2        Cabinet.  Thank you for this opportunity.  I
           3        appreciate it very much.  Basically, what I would
           4        like to do is --
           5             THE GOVERNOR:  You need to say --
           6             MR. SMITH:  Oh, sorry.
           7             THE GOVERNOR:  -- your name for the record.
           8             MR. SMITH:  I am Kenneth E. Smith, and I live
           9        at 13701 Green Meadows Road, Ft. Myers, Florida
          10        33913, and I represent the Smith family.
          11             THE GOVERNOR:  Do you want to -- well, go
          12        ahead.
          13             MR. SMITH:  Okay.  No problem.
          14             THE GOVERNOR:  I've got a map.  I was just
          15        curious.
          16             MR. SMITH:  Sure.  No problem.  I'll go ahead
          17        and read this letter.  Dear Governor Bush, I would
          18        like to take a moment to explain why it would be a
          19        tragic mistake to approve the corridor proposed by
          20        FPL.
          21             The main reason is safety.  The main
          22        question, how close is too close, has not been
          23        answered, and yet this is the most critical
          24        question.  The whole reason why FPL proposed a
          25        so-called geographically diverse route was to
.                                                                     87
           1        protect the other lines in the common corridor
           2        if one was damaged due to a catastrophic event,
           3        hurricane, plane crash, tornado, a terrorist
           4        attack.  In other words, lines can fall.
           5             When a power line or pole, or the pole
           6        that supports them falls, it lands somewhere.
           7        The question then is what does FPL plan to do
           8        to protect the people on whom the land falls?
           9        I propose a route that is not only
          10        geographically separate from other power lines,
          11        but, also, from homes to the extent
          12        practicable.
          13             It is possible to do this down at Green
          14        Meadows, but not within the corridor proposed
          15        by FPL.  The corridor is simply too narrow.  If
          16        FPL would have proposed a wider corridor that
          17        would have allowed them to keep their lines a
          18        safe distance from my home, I would not be
          19        writing this letter.
          20             The problem is, however, FPL does not seem
          21        to have any answers when questioned, how close
          22        is too close, in regards to this issue; so I
          23        propose a formula.  The height of a pole plus
          24        the distance between the two of them, anywhere
          25        from 500 to 700 feet.
.                                                                     88
           1             This is to protect homes and emergency
           2        access to them in the event of a catastrophic
           3        event, again, you know, the hurricanes, plane
           4        crash, tornado, or sabotage.  If this rule is
           5        applied, nothing would be close enough to be
           6        harmed by a downed power line.
           7             Now, I understand that this cannot be
           8        achieved everywhere, but it can be done down at
           9        Green Meadows because there's not another home
          10        for at least three-quarters of a mile to the
          11        west of my home.
          12             FPL could get their connection and
          13        everybody will be happy.  Unfortunately,
          14        everyone is not happy mainly because someone
          15        made a mistake.  Someone at FPL suggested a too
          16        narrow of a corridor to safely place the line
          17        down Green Meadows.
          18             Probably because they did not know, as
          19        FPL's expert witness, who played key roles in
          20        selecting FPL preferred corridor, testified
          21        under oath at the administrative hearing.  They
          22        did not know how close is too close in regards
          23        to placing power lines in regards to homes.
          24             I feel that my family and I should not
          25        have to pay for this mistake.  Now, if they
.                                                                     89
           1        wanted to bury the line within the corridor
           2        proposed down Green Meadows, I think I could
           3        live with that because it could be done safely.
           4             If FPL wanted to install the power line
           5        500 or 700 feet from Green Meadows Road, I
           6        could live with that because it could be done
           7        safely.  If FPL wanted to install the line on
           8        the west side of Jamerson Farms property --
           9        this is a farm that is adjacent to conservation
          10        2020 land -- I could live with that because it
          11        could be done safely.
          12             If FPL put the power line on conservation
          13        2020 land -- this is west of the Jamerson
          14        Farms -- this line would basically have the
          15        ultimate protection because access would be
          16        controlled, and they could put up security
          17        cameras, if necessary, in order to monitor the
          18        lines and, also, be far enough away from my
          19        home.
          20             And, also, I go on to write here, even
          21        though I did not think that, you know, this is
          22        the best solution, I, also, during the hearing,
          23        supported collocating the line with other
          24        lines.
          25             Let's see here, let me just go ahead and
.                                                                     90
           1        read this here.  Even though I did not think
           2        that that was the best solution, but the only
           3        one that I could support that was given enough
           4        consideration, during the hearing, since it was
           5        the only alternative that was proposed
           6        following the procedures outlined, and because
           7        I could not personally afford to propose any
           8        other of their aforementioned corridors.
           9             That's why you guys, of course, see those,
          10        because, you know, I would have to have the
          11        maps and all the other stuff, so that's why I'm
          12        proposing it now.
          13             But I would not suggest any other of the
          14        aforementioned -- I would not suggest any other
          15        of the aforementioned because I would not want
          16        to unjustly put my fellow neighbors through the
          17        same difficulties that I've experienced.
          18             In other words, I would not want to
          19        propose another corridor other than the ones
          20        suggested because I don't have the resources
          21        and the capabilities to do the studies to make
          22        sure those people would not, also, be adversely
          23        affected.
          24             The only advantage that I can see that
          25        FPL's preferred corridor -- preferred route has
.                                                                     91
           1        over the others that I have talked about is it
           2        is convenient for FPL and that is all.  It
           3        endangers human life, and whereas, the others
           4        that I've suggested, other than collocation, do
           5        not.
           6             Human life should outweigh convenience any
           7        day.  The flags have already gone up, and they
           8        are right on the edge of Green Meadows Road,
           9        and if the poles are placed there, they would
          10        definitely end up in my yard because they'd
          11        only be approximately 40 feet away.
          12             Money can't be the reason why they could
          13        not follow some of my other suggestions because
          14        it would surely not cost much more to locate
          15        the lines there versus where it is proposed.
          16             Now chances are nothing will happen, and
          17        I'm sure that's what people think when they
          18        drive their cars without seat belts or speed,
          19        but yet the State sees to ticket drivers who
          20        drive without their seat belts or speed because
          21        it's a matter of public safety.
          22             As a matter of fact, parents could get
          23        into serious trouble for child endangerment for
          24        not properly securing their precious young
          25        ones.  Yet people do not live in their cars and
.                                                                     92
           1        no one sets out to get into an accident.
           2             No parent means to do their child any harm
           3        by placing them into vehicles without being
           4        properly secured, but they can be harmed.  I
           5        live 4 miles due east of Southwest Regional
           6        Airport which is currently being expanded.
           7             Expanded airports mean more air traffic.
           8        More air traffic means more power lines being
           9        downed.  Tornados and hurricanes happen.  We
          10        live in Florida, so that is a very real risk.
          11             Terrorism, 9/11, I really don't need to
          12        say much more than that.  Power lines of this
          13        magnitude may pose a tempting target for
          14        terrorists, not only can they cause severe
          15        outages, but they could, also, be downed in
          16        order to disrupt traffic, thus blocking escape
          17        routes and pose severe dangers to motorists and
          18        blocking emergency vehicles from getting to the
          19        scene, or they could be used to distract
          20        emergency services while a more insidious plot
          21        unfolds.
          22             Being the concerned parent that I am, I
          23        moved my family out, further out into the
          24        country to Green Meadows.  Like many Americans,
          25        9/11 shook me to my core.  It helped me to
.                                                                     93
           1        realize just how vulnerable we all are
           2        including my children.
           3             So being the parent that -- you know, a
           4        good parent that I am, I decided to move
           5        because I figured, among many reasons, moving
           6        my family out there would minimize the risk to
           7        them and allow me to protect them better.
           8             THE GOVERNOR:  Sir, are you getting near the
           9        end of the letter?
          10             MR. SMITH:  Yes.  I just got two paragraphs,
          11        and I'll be done.
          12             THE GOVERNOR:  Okay.
          13             MR. SMITH:  Yes, sir.
          14             THE GOVERNOR:  Thank you.
          15             MR. SMITH:  All I'm doing is asking the State
          16        to help me keep my home safe, keep it what it is,
          17        a safe and quiet place.  The State, like a good
          18        parent, has an obligation to protect its citizens,
          19        and that is why we have laws such as speed limits
          20        and seat belt laws to protect us.
          21             An ounce of prevention is worth a pound of
          22        cure.  These laws and other regulations enacted
          23        by the State save lives, so to continue to be a
          24        good parent and use common sense.  This
          25        proposed routing is not safe.  There are other
.                                                                     94
           1        options, and it is not like someone is not
           2        pointing them out.
           3             We can chew gum and walk at the same time.
           4        We can protect my interest and the interests
           5        and responsibilities of FPL at the same time.
           6        This could be done by not approving -- this
           7        could be done by not approving the route as
           8        proposed and recommended by FPL, but seriously
           9        considering the options that I proposed.
          10             I have faith that the State and the
          11        Governor and his Cabinet, like any good
          12        guardian, will protect its citizenry.  Thank
          13        you, and, also, if you have any questions, I'd
          14        be more than glad to answer them.
          15             Also, in the Administrative Law Judge's
          16        final order, he had some different points, and
          17        I just got three points.  I could make them
          18        later if necessary, but, you know --
          19             THE GOVERNOR:  No.  You got your shot right
          20        now.
          21             MR. SMITH:  Sure.  No problem.
          22             THE GOVERNOR:  If you'd briefly go through
          23        it, I'd appreciate it.
          24             MR. SMITH:  Gotcha.  All right.  Number 1, as
          25        regards to the individual with significant mining
.                                                                     95
           1        interest --
           2             THE COURT REPORTER:  Please read it slower.
           3             MR. SMITH:  Okay.  Sorry.  It's kind of back
           4        and forth there.
           5             THE GOVERNOR:  Cut down on the number of
           6        words and slow down.
           7             MR. SMITH:  Gotcha.  Gotcha.
           8             THE GOVERNOR:  How about that?
           9             MR. SMITH:  Well, basically, the person
          10        mentioned in -- Judge Stampelo's order basically
          11        mentioned that the individual had significant
          12        mining interests that didn't mind the power line
          13        being put on that side of the road that's
          14        designated.  He doesn't live on Green Meadows.  I
          15        do.
          16             Also, tornados and plane crashes cannot be
          17        predicted.  In the Judge's final order, FPL
          18        recommended that I go to a shelter in the event
          19        of a tornado, but if they can't be predicted,
          20        how can you -- you know, what am I supposed to
          21        go every time there's a hurricane in the area?
          22             And, also, if this line is approved, I
          23        would basically demand that, you know,
          24        continual health monitoring, continue ozone and
          25        EMF monitoring, and if nothing else, protection
.                                                                     96
           1        and compensation for any loss incurred by my
           2        family.
           3             If I could, I would like just to submit
           4        all these documents --
           5             THE GOVERNOR:  Sure.
           6             MR. SMITH:  -- and that way you folks can
           7        review them and take them into consideration.  I
           8        know it's a lot, but thank you very much.  I
           9        appreciate your time.
          10             THE GOVERNOR:  No.  Thanks for coming up.
          11             MR. SMITH:  Also, there's an article --
          12             THE GOVERNOR:  Mr. Draper.
          13             MR. DRAPER:  Eric Draper, Audubon of Florida.
          14        We participated in the siting process, and we're
          15        very pleased with the outcome.  I want to point
          16        out where our land is.  This area here is the
          17        Corkscrew Swamp Sanctuary which is 12,000 acres.
          18             We're about to add 3,000 acres to it owned
          19        by National Audubon Society.  It is the most
          20        important roosting area -- nesting area for
          21        wood storks and some roseate spoonbills.  We're
          22        very pleased with the process that resulted in
          23        the current configuration of this power line.
          24             I very much appreciate Florida Power &
          25        Light working so hard to avoid the wetlands
.                                                                     97
           1        impacts for the Corkscrew Swamp ecosystem which
           2        is part of the greater Everglades ecosystem.
           3        Thank you very much.
           4             THE GOVERNOR:  Thank you.  Anybody else?
           5             (No response.)
           6             CFO GALLAGHER:  Motion.
           7             THE GOVERNOR:  There's a motion.
           8             COMMISSIONER BRONSON:  Second.
           9             THE GOVERNOR:  There's a motion and a second.
          10        Any other discussion?
          11             (No response.)
          12             THE GOVERNOR:  Moved and seconded.  Without
          13        objection, the item passes.  Thank you.
.                                                                     98
           1             THE GOVERNOR:  Board of Trustees.  Eva, how
           2        are you doing?
           3             MS. ARMSTRONG:  Great, sir.  Thank you.  If
           4        you'll give us just a minute, we're loading the
           5        computer.
           6             CFO GALLAGHER:  Move it.
           7             ATTORNEY GENERAL CRIST:  Second.
           8             THE GOVERNOR:  Moved and seconded.  Without
           9        objection, Item 1 passes.  Item 2.
          10             MS. ARMSTRONG:  While he loads the computer
          11        here, we are -- this is consideration of an option
          12        agreement to acquire 9.1 acres by the Florida
          13        Agricultural and Mechanical University Board of
          14        Trustees.
          15             CFO GALLAGHER:  Motion.
          16             ATTORNEY GENERAL CRIST:  Second.
          17             THE GOVERNOR:  There's a motion and a second.
          18        Without objection, the item passes.  Item 3.
          19             MS. ARMSTRONG:  It does right error, right?
          20        Oh, on the keyboard?  I am sorry.  Bear with me.
          21        This is called operator error.  There.  All right.
          22        We'll get it down here in a minute.
          23             Item 3, consideration of an option
          24        agreement to acquire .93 acres for the benefit
          25        of New College of Florida.  The consideration
.                                                                     99
           1        is $315,000 which is 94 percent of appraised
           2        value.
           3             CFO GALLAGHER:  Motion on three.
           4             ATTORNEY GENERAL CRIST:  Second.
           5             THE GOVERNOR:  Moved and seconded.  Without
           6        objection, the item passes.
           7             MS. ARMSTRONG:  Item 4 is consideration of an
           8        option agreement to acquire 18.1 acres within Fort
           9        George Island.  The consideration is $925,000.
          10        It's 93 percent of appraised value.
          11             CFO GALLAGHER:  Motion on 4.
          12             ATTORNEY GENERAL CRIST:  Second.
          13             THE GOVERNOR:  I want to buy it.
          14             MS. ARMSTRONG:  You want to go buy this?
          15             THE GOVERNOR:  Yes.  It's a house sitting
          16        right on the --
          17             MS. ARMSTRONG:  It's a beautiful piece of
          18        property.
          19             THE GOVERNOR:  -- most beautiful property in
          20        the world.  I can't believe it.
          21             MS. ARMSTRONG:  I think there's a picture
          22        here looking out over the waterway from the
          23        property.
          24             CFO GALLAGHER:  That's why we're buying it,
          25        so someone doesn't live there.
.                                                                    100
           1             THE GOVERNOR:  No.  Someone does live in it
           2        now, right?
           3             MS. ARMSTRONG:  I don't think there's a --
           4        anybody in residence at the site.  I'm looking,
           5        although there's residents on the site.
           6             THE GOVERNOR:  Oh, okay.
           7             MS. ARMSTRONG:  There is somebody living at
           8        the site?  Yeah.  There is somebody actually
           9        living there now, but they'll use those buildings
          10        and parts of this house and put them to good use.
          11        This is the last privately owned property in the
          12        area.
          13             Everything else is government owned, so --
          14        and, you know, you signed the Florida Forever
          15        Act on Little Talbot Island which is just over
          16        the waterway.
          17             THE GOVERNOR:  I know.  I know.  This is
          18        like -- this is one of the prettiest parts of
          19        the --
          20             MS. ARMSTRONG:  Great place.  Yes, sir.
          21             THE GOVERNOR:  Hence my desire to own it.
          22             MS. ARMSTRONG:  Live there.  I understand.
          23             THE GOVERNOR:  A girl can dream.
          24             MS. ARMSTRONG:  Absolutely.
          25             THE GOVERNOR:  There's a motion and a second.
.                                                                    101
           1        Any objection?
           2             (No response.)
           3             THE GOVERNOR:  Motion passes.
           4             MS. ARMSTRONG:  Item 5 is consideration of an
           5        option agreement to acquire 23.46 acres within the
           6        Florida Keys ecosystem.  This is the Vaca Cut
           7        site, and it is $1 million that we would be
           8        spending in our effort to acquire all those
           9        remaining conservation lands in the Florida Keys.
          10             THE GOVERNOR:  This is our first step in our
          11        commitment, the $93 million?
          12             MS. ARMSTRONG:  It's the first big one.  Yes,
          13        sir.
          14             THE GOVERNOR:  Every time you come you need
          15        to --
          16             MS. ARMSTRONG:  Talk about this.
          17             THE GOVERNOR:  -- hold it up so that we can
          18        make sure --
          19             MS. ARMSTRONG:  Well, we're bringing you a
          20        report on the Keys' effort in August.
          21             THE GOVERNOR:  Okay.
          22             MS. ARMSTRONG:  So you'll be seeing how much
          23        we've been doing 'cause there are a lot of little
          24        ones we're buying under delegation.
          25             THE GOVERNOR:  All right.  Allison, let the
.                                                                    102
           1        record show this is the first step towards the
           2        $93 million commitment.
           3             CFO GALLAGHER:  Motion.
           4             THE GOVERNOR:  There's a motion --
           5             COMMISSIONER BRONSON:  Second.
           6             THE GOVERNOR:  -- and a second.  Without
           7        objection, the item passes.
           8             MS. ARMSTRONG:  Item 6 is consideration of an
           9        option agreement to acquire 1800 acres within the
          10        Division of Forestry Withlacoochee State Forest.
          11        The consideration will be $4.5 million.  It's
          12        96 percent of appraised value, $2500 an acre.
          13             CFO GALLAGHER:  Motion.
          14             ATTORNEY GENERAL CRIST:  Second.
          15             THE GOVERNOR:  I've got -- I've got a few
          16        questions.
          17             MS. ARMSTRONG:  Yes, sir.
          18             THE GOVERNOR:  Is this the property that had
          19        the -- that St. Joe sold to somebody who sold to
          20        us?
          21             MS. ARMSTRONG:  That's the next item, sir.
          22             THE GOVERNOR:  Okay.  Never mind.
          23             MS. ARMSTRONG:  Okay.
          24             THE GOVERNOR:  There's a motion and a second.
          25        Without objection, the item passes.  I had it
.                                                                    103
           1        wrong.  I'm sorry.
           2             MS. ARMSTRONG:  Item 7 is a consideration of
           3        an option agreement to acquire 1,775 acres within
           4        the Division of Forestry's Lake Talquin State
           5        Forest Project.  The consideration will be
           6        $3,658,000; 98 percent of appraised value at
           7        $2,061 per acre.
           8             This one was negotiated by the Division of
           9        Forestry.  It will be managed by the Division
          10        of Forestry, and we have John Browne with that
          11        division here today.  Would you like to ask him
          12        some questions?
          13             THE GOVERNOR:  Yes.
          14             MR. BROWNE:  Good morning, Governor --
          15             THE GOVERNOR:  Good morning.
          16             MR. BROWNE:  -- Commissioner, and Members of
          17        the Cabinet.  Yes, sir.
          18             THE GOVERNOR:  We've had this situation
          19        happen once this year so far that I can remember
          20        where a person wanted to go sell land apparently,
          21        and we were a likely and regular purchaser of land
          22        from that entity.
          23             They sold to somebody else who resold to
          24        us at a higher price within a short period of
          25        time.  I don't want to -- I want to know why.
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           1        Why is that --
           2             MR. BROWNE:  I understand your concern, sir.
           3        Two years ago we tried to buy this property from
           4        Arvida.  It didn't have legal access.  They
           5        wouldn't assist us in gaining any legal access,
           6        and there were some other issues with it.
           7             So we didn't pursue it.  We were not aware
           8        that Arvida had sold it, and then it came back
           9        in again, and we had it appraised --
          10             THE GOVERNOR:  Is this Arvida?
          11             MR. BROWNE:  That was Arvida.  That's not the
          12        St. Joe timber lands we customarily deal with.
          13             CFO GALLAGHER:  Arvida is now nonexistent,
          14        and you're back to St. Joe, the mother company
          15        that owns both.
          16             MR. BROWNE:  Right.
          17             CFO GALLAGHER:  So which division, you know,
          18        it was owned by really doesn't matter.  I'm very
          19        tempted to make a motion that we purchase this at
          20        the seller's purchase price and give him a choice,
          21        take it or leave it, because there's no other
          22        buyers out there for a cash deal.
          23             And this might send a message to everybody
          24        that we're not in the business of letting
          25        somebody buy it.  I don't know.  Maybe the guy
.                                                                    105
           1        didn't even put any money down, and, you know,
           2        he sits there, carries a little money for a
           3        while, and makes himself a few hundred thousand
           4        dollars.
           5             To me, I don't know if that happened or
           6        not, but it could have.
           7             MR. BROWNE:  The original tract that was
           8        acquired from St. Joe has no legal access.  He
           9        acquired the legal access subsequent to its
          10        closing with St. Joe, so we're looking at --
          11             THE GOVERNOR:  So what's the -- I mean,
          12        what's the other option?  Is this a place where
          13        there's a booming housing market?
          14             MR. BROWNE:  No, sir.  I mean, all --
          15             THE GOVERNOR:  Okay.  In other words, we're
          16        the buyer.  We're the big dog.  We're the one that
          17        people come to, to buy this stuff, and so when
          18        it's flipped -- and the entrepreneur, God bless
          19        him, but we don't have to always just kind of
          20        submit to this.
          21             I kind of like the idea, Treasurer.
          22             MR. BROWNE:  No, sir.  We don't.  Let me just
          23        make one point from the Division of Forestry.
          24        This particular piece was identified and was
          25        pursued because of its off-highway vehicle
.                                                                    106
           1        potential.  It's not a piece we would have ever
           2        pursued for its environmental resources or its
           3        environmental purposes.
           4             THE GOVERNOR:  Off-highway vehicle potential.
           5        You mean for using for recreational purposes?
           6             MR. BROWNE:  For recreation, specifically for
           7        recreation.
           8             CFO GALLAGHER:  You know, I don't have any
           9        problem with that.  (Simultaneous conversation.)
          10             MR. BROWNE:  And the reason being --
          11             CFO GALLAGHER:  -- how much you're paying
          12        him.
          13             MR. BROWNE:  Yes, sir.  This is an isolated
          14        tract.  It's bordered on the north and the east by
          15        I-10, on the south and the west by CSX Railroad.
          16        It has contour.  It's an interesting place for
          17        people to ride.
          18             We are getting hounded, on the properties
          19        we manage, with off-highway vehicle
          20        recreational drivers.  We've got to find a
          21        place for them to go, and we have to find a
          22        place where they can go recreate safely, but
          23        not destroy all the resources.
          24             THE GOVERNOR:  Well, maybe they could go to
          25        this property with the current owner doing it, or
.                                                                    107
           1        with us owning it at a price where we get what
           2        would clearly be the fair market value.  I mean,
           3        this is not -- this is not in the path of
           4        development.  You recognize that?
           5             MR. BROWNE:  I understand.
           6             THE GOVERNOR:  It's evidenced by the fact
           7        that you're -- a use that would be more
           8        appropriate in a place that's not in the path of
           9        development, and so we don't see these escalating
          10        double-digit appreciation that we may see in
          11        several of the other properties that we're
          12        purchasing today.
          13             And within a year, this guy is making on
          14        a -- you know, there's costs of --
          15             MR. BROWNE:  No.  I understand.
          16             THE GOVERNOR:  -- carrying.  There's costs of
          17        holding and all the -- you know, the closing
          18        costs, but he's making, from what I can tell,
          19        $600,000.
          20             MR. BROWNE:  I think we would all like to do
          21        that, Governor.
          22             CFO GALLAGHER:  You got that right.
          23             THE GOVERNOR:  $600,000, so --
          24             CFO GALLAGHER:  Well, I'll tell you what.  In
          25        order to make this something that -- I mean, we
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           1        should be buying it, if we're going to buy it, at
           2        least at appraised value; so how long was this
           3        held by the seller?
           4             MR. BROWNE:  I think they've had about eight
           5        months now.
           6             CFO GALLAGHER:  Eight months.  Well, we know
           7        that it was -- we know that it was worth
           8        $3 million eight months ago because this guy paid
           9        in the open market.  I'd like to have some more
          10        information, like did it have a mortgage on it, or
          11        was it cash?
          12             That would make a big difference to me in
          13        my next decision.  Why don't we do this?  Why
          14        don't we find out that information?  I'd like
          15        to defer this till the next meeting.  I'll move
          16        to defer it till the next meeting.
          17             COMMISSIONER BRONSON:  I'll second.
          18             THE GOVERNOR:  All right.  There's a motion
          19        to defer and a second.  Any other discussion?
          20             (No response.)
          21             THE GOVERNOR:  That saves me from voting no
          22        because I would have.  The motion is deferred,
          23        and --
          24             CFO GALLAGHER:  So somebody has to --
          25             THE GOVERNOR:  -- if you could get any
.                                                                    109
           1        information to each of our -- I'm tired of this.
           2        It's been deferred.  If you guys can get us the
           3        information the Treasurer is asking for, that
           4        would be helpful.
           5             MR. BROWNE:  Okay, sir.
           6             THE GOVERNOR:  Thanks a lot.
           7             MS. ARMSTRONG:  All right.  Item Number 8,
           8        this is consideration of an assignment of a
           9        sub-sublease agreement to Youth Services
          10        International, Incorporated; an amendment of the
          11        sub-sublease agreement; a standard sub-sublease
          12        form for future use by the City of Pembroke Pines;
          13        delegation of authority to the Secretary of DEP to
          14        approve future sub-subleases and amendments to
          15        sub-subleases within the City of Pembroke Pines'
          16        Health-Care Park; and a determination and an award
          17        of the sub-sublease without conducting a
          18        competitive bid is in the public interest.
          19             A couple of key points, the amendment is
          20        about increasing the sub-sublease $2 so that
          21        we're in line with the DMS rental rates.
          22        That's what the amendment is about, and the
          23        delegation is project specific just here so
          24        that we can handle these sub-subleases just for
          25        the other buildings at this site.
.                                                                    110
           1             It's a large project.  In fact, I think we
           2        may have another picture here as I recall.
           3        Nope.  Sorry.
           4             THE GOVERNOR:  This is the South Florida --
           5             MS. ARMSTRONG:  Right.
           6             CFO GALLAGHER:  Yeah.  Motion.  I'll move it.
           7             MS. ARMSTRONG:  Right.
           8             CFO GALLAGHER:  Motion on 8.
           9             THE GOVERNOR:  Is there a second?
          10             ATTORNEY GENERAL CRIST:  Second.
          11             THE GOVERNOR:  Moved and seconded.  Without
          12        objection, the item passes.
          13             MS. ARMSTRONG:  Item Number 9, consideration
          14        of a determination that a 5.36 acre parcel of
          15        state-owned land in Hillsborough County is no
          16        longer needed for conservation purposes.  A
          17        determination that the property is surplus and an
          18        exchange agreement under which the Board of
          19        Trustees would convey a 5.36 acre parcel of
          20        state-owned land to Jaymar Farms, Inc., in
          21        exchange for a 5.36 acre parcel owned by Jaymar
          22        Farms, Inc., as an addition to the Hillsborough
          23        County Balm-Boyette Scrub Site.
          24             The parcel that the State is giving up is
          25        actually a road that was needed when we first
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           1        bought the property, no longer needed, and so
           2        we're giving it up for the parcel that is high
           3        quality scrub property.
           4             CFO GALLAGHER:  Motion on 9.
           5             COMMISSIONER BRONSON:  Second.
           6             THE GOVERNOR:  Moved and seconded.  Without
           7        objection, the item passes.
           8             MS. ARMSTRONG:  Item 10 is consideration of a
           9        determination that a 9.20 acre parcel of
          10        state-owned land in the Point Washington State
          11        Forest is no longer needed for conservation
          12        purposes; a determination that the property is
          13        surplus; and an exchange agreement under which the
          14        Board of Trustees would convey the subject parcel
          15        to Olson & Associates in exchange for an
          16        11.32 acre parcel located in the Point Washington
          17        State Forest's optimum management boundary.
          18             We are exchanging the 9.2 parcel, which is
          19        worth 1.19 -- $1,190,000, which is owned by the
          20        Board of Trustees, and in exchange, we will
          21        receive 11.32 acres which is worth the
          22        $1,030,000.
          23             The difference is that our property has
          24        greater frontage on the highway than the parcel
          25        that we are getting in exchange.  The
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           1        difference will be paid in cash to the Board of
           2        Trustees.
           3             We are, also, getting $250,000 which will
           4        be put into the Citizens Support Organization
           5        for the Point Washington State Forest and will
           6        be used to build a trail head for the forest,
           7        and they are -- the developers agreed that they
           8        will have a formal way of notifying future
           9        landowners, within that development, that the
          10        Division of Forestry does control burns, and it
          11        produces smoke, so that those people will be
          12        given the heads-up when they first buy the
          13        property.
          14             You know, it's something that I know the
          15        Commissioner is concerned about, the Division
          16        of Forestry.  Secretary Struhs, before he left,
          17        was constantly looking for a way to let people
          18        know up front, and so we've managed to get that
          19        in this agreement as well.
          20             CFO GALLAGHER:  Motion on 10.
          21             COMMISSIONER BRONSON:  Second.
          22             THE GOVERNOR:  Moved and seconded.  Without
          23        objection, the item passes.
          24             MS. ARMSTRONG:  Item 11, consideration of a
          25        modification to a restriction of a deed to the
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           1        District School Board of Collier County and a
           2        partial release and transfer of a deed restriction
           3        from a 3.951 acre parcel conveyed to two parcels
           4        containing 3.309 acres and a .692 acre
           5        respectively to be acquired by the District School
           6        Board of Collier County from the Community School
           7        of Naples, Inc.
           8             CFO GALLAGHER:  Motion on 11.
           9             ATTORNEY GENERAL CRIST:  Second.
          10             THE GOVERNOR:  There's a motion and a second.
          11        Without objection, the item passes.
          12             MS. ARMSTRONG:  Item 12, Alexandra, you've
          13        seen this one before.  Consideration of an
          14        application by Alexandra USA, Inc. to purchase two
          15        parcels containing approximately .14 and .52 acres
          16        of filled, formerly sovereignty submerged lands;
          17        and, two, a modification of a 1999 sale by the
          18        Board of Trustees of 4.69 acres of filled,
          19        formerly sovereignty submerged lands.
          20             What we have done is we have renegotiated,
          21        with the applicant, who has agreed to pay
          22        additional cash to the tune of $350,000 total.
          23        The original appraisal on this property was
          24        $800,000, and the former director of the
          25        Division of State Lands had negotiated with the
.                                                                    114
           1        applicant and had considered the fact that they
           2        had paid 300,000 for the property.
           3             They had not been the ones who had
           4        illegally filled.  To avoid lengthy,
           5        potentially lengthy litigation, had felt that
           6        the -- that's what he had based his previous
           7        negotiations on.
           8             We met with him, staff from the Attorney
           9        General's Office and myself, trying to figure
          10        out how he got where he was when the previous
          11        appraisal was 800,000, and so to avoid
          12        reappraising when there was that full gap
          13        before -- you know, respecting the Attorney
          14        General's questions when we were on the -- had
          15        the meeting on the road.
          16             What we did was we sat down with the
          17        applicant's attorney, and we first surveyed
          18        comparable sales in the area.  Tried to get a
          19        feeling for what other land values were.  Went
          20        back and renegotiated and got the price up to
          21        $350,000, so if that is satisfactory to you,
          22        that's what we're suggesting.
          23             CFO GALLAGHER:  One of the things that we
          24        talked about last time on this issue was an
          25        updated appraisal.  I guess we still --
.                                                                    115
           1             MS. ARMSTRONG:  We could still do that if
           2        that was your desire, but because there was this
           3        huge gap already between the appraised value that
           4        was determined before and what the previous
           5        negotiated price was --
           6             CFO GALLAGHER:  In other words, we already
           7        know that this is real cheap compared to what the
           8        appraised value is, so we just don't know how
           9        much, and we'd rather not know?
          10             MS. ARMSTRONG:  Well, we can go through that
          11        exercise if you desire.  I just figured it was
          12        worth seeing if this was satisfactory.  If not, we
          13        will be glad to go appraise it, whatever your
          14        desire is.
          15             CFO GALLAGHER:  Well, just let me get clear
          16        on this again.  We already sold it to him, but
          17        somebody didn't file the deed.  Is this the one?
          18             MS. ARMSTRONG:  No.  No, sir.  This is a
          19        different one.  This is one that had been
          20        illegally filled by a former owner.  This company
          21        comes in and buys it, doesn't know about that
          22        problem until they begin to develop.
          23             I'll tell you what.  I'm going to let
          24        Mister -- let me let Mr. Ken Plante come in and
          25        give you the history 'cause he knows greater
.                                                                    116
           1        details.
           2             CFO GALLAGHER:  That might help.
           3             MS. ARMSTRONG:  Okay?
           4             THE GOVERNOR:  Do you want to go through
           5        this?  This is a pretty wild story.
           6             CFO GALLAGHER:  It is a wild story, but I
           7        would like to be reminded.
           8             MS. ARMSTRONG:  And it's got a lengthy
           9        history that predates me, so we'll let Mr. Plante
          10        explain this.
          11             THE GOVERNOR:  If you could succinctly
          12        describe the --
          13             CFO GALLAGHER:  Real short, Ken.
          14             MR. PLANTE:  Okay.  Thank you.  Good morning,
          15        Governor and Members of the Cabinet.  My name is
          16        Ken --
          17             THE GOVERNOR:  By the way, this will make all
          18        of our friends from Miami-Dade County realize that
          19        confusion and complex things don't always just
          20        exclusively --
          21             CFO GALLAGHER:  Happen in Dade County.
          22             THE GOVERNOR:  -- exist in Miami-Dade County.
          23        They can be in the rural parts of the state, too.
          24             MR. PLANTE:  I'll make this as brief as
          25        possible.  This area was purchased by Alexandra
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           1        USA around 1996, 1997 as part of a larger parcel.
           2        I have been on the site.  There are 40- or 50-foot
           3        trees.
           4             You would never know that it was filled.
           5        It wasn't until it went to the water management
           6        district that they wanted to know where the
           7        submerged land deed was, and then we got into
           8        this.
           9             It's a 5 acre -- a little over a 5-acre
          10        tract, that little banana that's filled.  We
          11        negotiated with the Governor -- with the
          12        Division of State Lands.  The $800,000 original
          13        appraisal assumed that this would be a very
          14        exclusive gated community.
          15             The property around it does not have the
          16        exclusivity of isles worth or anything located
          17        in the upper chain of lakes.  We negotiated --
          18        I negotiated with Pete Mallison and other
          19        members of the staff, and we came up with about
          20        $215,000 for this, and we're releasing about
          21        4 acres of submerged land.
          22             Now, the submerged land, this deed goes
          23        back to the 1860s when Hamilton Disston
          24        purchased it from the State.  It was swamp and
          25        overflow land which Commissioner Gallagher, as
.                                                                    118
           1        you indicated at the Cabinet, for a day, was
           2        given to the State by the Feds for the purpose
           3        of being filled.
           4             THE GOVERNOR:  I think Treasurer Gallagher
           5        reminded us that he was actually serving at the
           6        time.
           7             MR. PLANTE:  I wasn't going to mention that,
           8        but it's -- so this goes back.  It was filled
           9        approximately in 1957.  We have an aerial for
          10        1958.  There was a lawsuit filed in 1956 regarding
          11        it.
          12             I don't have an aerial for 1957.  If I
          13        did, the value of this property would be $2500
          14        by statute.  We negotiated this.  We're
          15        releasing all of the submerged lands.
          16             CFO GALLAGHER:  What do you mean by
          17        releasing?
          18             MR. PLANTE:  We're giving to the State a
          19        quitclaim deed to all of the submerged lands which
          20        is roughly --
          21             CFO GALLAGHER:  So you're clearing the title
          22        of the wetlands back to the State.
          23             MR. PLANTE:  Right.  And its lake bottom and
          24        its wetland.  It's over 4 acres.  That is being
          25        quitclaimed to the State as part of this.  We
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           1        think this could be filled.  The question that
           2        came up last -- I think there are two questions.
           3             One, once this was approved by the
           4        Governor and Cabinet, it went into -- I left
           5        the law firm, and then I was called about a
           6        year later saying, oops, we didn't close yet
           7        because instead of the metes and bounds along
           8        there, the title company wanted it to the mean
           9        high water line which is an ambulatory line.
          10             Therefore, there's no hiatus if the water
          11        moves back and forth.  That's what we started
          12        off with coming back -- working with the staff,
          13        and in the meantime, there were these two other
          14        little parcels.
          15             From a, I guess, legal perspective and how
          16        the Cabinet operates, the Governor and Cabinet
          17        signed the deed to this.  It just wasn't closed
          18        which often happens.  We decided to come back
          19        with everything just so that it'd be a clear
          20        presentation which is probably one of the worst
          21        mistakes I've ever made because it just
          22        confused everything.
          23             However, we're only looking to buy another
          24        .6 acres which will not be used for anything.
          25        It'll be green space, and it's wetlands.  I did
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           1        check with the appraiser.  The appraisal, in
           2        the area of the property, has gone up about
           3        100 percent since that time.
           4             We have offered an extra 400 percent for
           5        the six-tenths of an acre.  I think that the
           6        word of the Governor and Cabinet, in the 1996
           7        deal, still holds, and it's no different than
           8        if you bought it from me or my client.
           9             Then my client decided, years later, the
          10        State got a deal.  I want to renegotiate, and
          11        so I think that is what -- but we have offered
          12        an extra $90,000 for six-tenths of an acre that
          13        cannot be sold for anything.
          14             CFO GALLAGHER:  Well, you're not counting the
          15        other part, right, just this?
          16             MR. PLANTE:  Well, we lost 10 percent because
          17        of an easement, and then we're adding another
          18        $90,000.
          19             THE GOVERNOR:  If I could summarize, our
          20        options are to claim that -- make some legal case
          21        and pursue some legal option, or to accept this
          22        compromise, gracious offer, and move on.
          23             CFO GALLAGHER:  A deal is a deal.  I'll move
          24        Item 12.
          25             MR. PLANTE:  Right.
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           1             THE GOVERNOR:  There's a motion.  Is there a
           2        second?
           3             COMMISSIONER BRONSON:  Second.
           4             THE GOVERNOR:  And a second.  Without
           5        objection, the item passes.
           6             MR. PLANTE:  Thank you very much.
           7             COMMISSIONER BRONSON:  And for a point of
           8        reference, Governor, the original Hamilton Disston
           9        land buy was 2 million acres of Florida at
          10        25 cents an acre, and Charlie was there for that
          11        purpose, or one of his family members, the guy
          12        that bought it probably.
          13             THE GOVERNOR:  I feel as though a burden has
          14        been lifted off my shoulders.
          15             CFO GALLAGHER:  Eva, would you please -- Eva,
          16        would you make sure you get the deed around and
          17        close it this time?
          18             THE GOVERNOR:  Yes.
          19             MS. ARMSTRONG:  Yes, sir.
          20             CFO GALLAGHER:  Thank you.
          21             MS. ARMSTRONG:  Mike, would you work on this
          22        'cause I can't get it to move?
          23             Item Number 13 is approval to a
          24        modification to a deed restriction.  In 1996,
          25        the Board of Trustees sold 67.58 acres of
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           1        surplus land to Marion County.  The County paid
           2        for the property with ad valorem funds.
           3             As a result, the deed to the County
           4        contains a restriction requiring the land to be
           5        used for public purposes.  There is currently a
           6        communications tower on the property, part of
           7        which is leased to a private entity.
           8             The lessee uses a portion of the tower for
           9        private communication purposes, and the County
          10        uses the remaining portion of the tower for
          11        emergency purposes.
          12             CFO GALLAGHER:  Motion on 13.
          13             COMMISSIONER BRONSON:  Second.
          14             THE GOVERNOR:  There's a motion and a second.
          15        Without objection, the item passes.  Item 14.
          16             MS. ARMSTRONG:  What I want to do is lay out
          17        briefly, for you, the issue.  Then we're going to
          18        let the City go, the developer go.  We have a
          19        series of speakers, and I thought that would
          20        probably be the easiest way.
          21             THE GOVERNOR:  All right.
          22             MS. ARMSTRONG:  What you have before you is
          23        consideration of a modification for deed
          24        restrictions for a parcel of land encompassing
          25        24.2 acres, more or less, on Watson Island, to
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           1        allow the City of Miami to lease the parcel to
           2        Flagstone Island Gardens, LLC; and easements, both
           3        temporary and permanent, over other adjacent and
           4        nearby areas needed for the project that contain
           5        the same deed restrictions on which modification
           6        would be required.
           7             Let's just go ahead and do -- let's go
           8        through the order I suggested.  I think that
           9        way we can lay out the project for you.  We'll
          10        come back and discuss the specifics within the
          11        agreement to protect Board of Trustees'
          12        interests.
          13             THE GOVERNOR:  All right, Eva.
          14             MS. ARMSTRONG:  Okay.
          15             THE GOVERNOR:  And have you asked them, the
          16        applicants or the people speaking, to limit their
          17        discussion by to a certain amount of time?
          18             MS. ARMSTRONG:  I had not, but we can.  I had
          19        spoken to one.  I had asked -- the City had said
          20        they could do it in five, so if we could do the
          21        City in five and Flagstone in five.
          22             You-all can do that?  That'd be good?
          23        Okay.  Great.
          24             So with that, we'll start with Mr. Joe
          25        Arriola, City Manager for the City of Miami.
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           1             CITY MANAGER ARRIOLA:  I really don't -- I
           2        really don't know if Charlie was around, but I
           3        definitely was not around when they sold that land
           4        for 25 cents.
           5             Thank you.  Thank you for allowing me to
           6        be here.  As leaders in government, we must
           7        identify creative ways to fulfill our role and
           8        contribute to the economic revitalization of
           9        Miami.
          10             This is particularly important to us as
          11        Miami is the nation's poorest major city with
          12        28.5 percent of our population living in
          13        poverty.  To further our efforts following six
          14        public hearings and meetings, the City issued
          15        an RFP, in February 2001, for the development
          16        of a mega-yacht and mixed use development on
          17        Watson Island.
          18             Three proposals came in, the Flagstone
          19        Island Garden proposal was selected and was
          20        approved by the Miami voters by 65 percent.
          21        Seventy-four percent of the voters around the
          22        neighborhood voted in favor of it.
          23             This project will contribute to our
          24        economic revitalization by fulfilling our
          25        public purpose creating jobs, providing skills,
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           1        career training, and generating revenue.  The
           2        1949 deed from the State requires that the
           3        property, to be used for public purpose.
           4             Public purpose is defined as an action by
           5        or at the direction of government for the
           6        benefit of the community as a whole.  This
           7        project is good for the community.
           8             The public benefits of this project, this
           9        project will create 1,000 full-time jobs, 3,000
          10        construction jobs.  Flagstone has agreed to
          11        first source the citizens of the City of Miami
          12        and Dade County.  They will get right of first
          13        refusal for every single job.
          14             Flagstone will create skilled training
          15        centers and career training centers that will
          16        provide educational programs to all employees.
          17        The property will be available for public use.
          18        This lease provides that the project, as a
          19        general matter, be open to the public as much
          20        as practical, and that the project shall be
          21        open to the general public without
          22        discrimination.
          23             This project provides greater use by the
          24        public.  The majority of the upland has been
          25        encumbered since at least 1959 when the
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           1        Goodyear blimp occupied approximately 11 acres
           2        of this property.
           3             Additional public benefits, the City and
           4        Commission has approved that 50 percent of the
           5        revenues coming from this project will go
           6        directly to the parks of the City of Miami.
           7        Additional public benefits will include public
           8        gardens, 100-foot-plus wide waterfront
           9        promenade that will provide a venue for
          10        providing educational, entertainment, and
          11        cultural experiences; a fish market; a 4,000
          12        square foot maritime gallery; and a million
          13        dollars to master planning development at the
          14        south end of Watson Island.
          15             It will create revenues, $1 million of
          16        rental revenue during construction and
          17        $2 million in rental revenue upon completion.
          18        It generates one-time fees of $3.5 million.  It
          19        will have reoccurring tax revenue to the City
          20        of approximately $4.3 million per year,
          21        $6.8 million to Dade County and the school
          22        board.  In addition, the project will generate
          23        millions of dollars in sales tax, license fees,
          24        and tourist tax revenues.
          25             The mega-yacht economic impact in South
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           1        Florida, a 2002 study prepared by the marine
           2        industry found that 400 mega-yachts visited the
           3        South Florida area in 2002.  Each mega-yacht
           4        that visited generated approximately $385,000
           5        of economic impact.
           6             The study further shows that 93 percent of
           7        the visiting mega-yachts spend of an average of
           8        $140,000 in maintenance and repairs in the
           9        area.  Overall these yachts generated
          10        $34.5 million worth of sales tax alone.
          11             This project will have the ability to
          12        generate even greater numbers per vessel since
          13        it will be able to attract a market of larger
          14        yachts that cannot be accommodated anywhere in
          15        South Florida.
          16             We're talking about a marina that will
          17        bring access to yachts in the 150- to 350-foot
          18        yachts which is unheard of in our area.  In
          19        1996, the City Commission adopted Watson Island
          20        Policy Plan at a public hearing.  The plans set
          21        forth specific concepts of public recreation
          22        and education, public safety, marine
          23        recreation, transportation service, and tourist
          24        attraction.
          25             The policy plan provides the development
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           1        must be consistent with the comprehensive plan,
           2        for recreation and restrictive commercial.
           3        This project is consistent with the policy plan
           4        and comprehensive plan.
           5             This project consists -- consistent with
           6        the Miami -- it's consistent with the
           7        Miami-Dade Manatee Protection Plan which
           8        designates the area for large vessel and
           9        special use.
          10             This project has been the subject of
          11        23 public hearings and 13 public meetings.
          12        Extensive public input has been sought and
          13        considered in developing this project.  We
          14        believe strongly that this project fulfills the
          15        public purpose provisions set forth in the deed
          16        with the creation of jobs, the generation of
          17        revenues, the public use of the area and
          18        economic by-product, and it will create -- that
          19        it will create.  Thank you.
          20             In the last couple of weeks, sister city
          21        was concerned about the traffic study.  We got
          22        together with the Florida Department of
          23        Transportation, the DDA, our own traffic
          24        experts.
          25             The results of this is a letter from
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           1        Johnny Martinez, the district secretary, which
           2        clearly says that all the issues have been
           3        addressed, and they are very satisfied with the
           4        results.  Thank you very much.
           5             THE GOVERNOR:  Thank you, Joe.
           6             MS. ARMSTRONG:  Thank you.  Now, we have Joe
           7        Herndon representing Flagstone.
           8             MR. HERNDON:  Good morning, Governor and
           9        Commissioners.  Thank you very much for letting us
          10        be here.  I'm Joe Herndon with Flagstone Island
          11        Gardens, LLC.  Our chairman, Mr. Mehmet Bayraktar,
          12        and the Bayraktar family come from a long history
          13        of industrial and other investments throughout the
          14        country of Turkey and have done a good number of
          15        projects throughout Turkey including significant
          16        modern shopping malls, hotels, and resorts.
          17             Other members of our team include myself,
          18        as project director, who in a few years
          19        completed the renovation of the Biltmore Hotel
          20        in Coral Gables, recently the EMR Mega-yacht
          21        Marina reconstruction as well as the spas at
          22        Boca Raton Hotel and Club.
          23             You should have before you a set of
          24        handouts that basically represent the project.
          25        Also, I should mention Sherwood Weiser, who is,
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           1        also, a board member and very involved in our
           2        hotel management and planning.
           3             The project, as you may know, is located
           4        as a part of Downtown Miami, as is shown in
           5        your design and your projects in front of you.
           6        Our project objective particularly is important
           7        to note that we have the objective of
           8        establishing the leading mega-yacht facility in
           9        the planet for the next 30 years in Miami.
          10             It will make a landmark icon and a gateway
          11        project for Miami and create the magic of Miami
          12        as a global image.  We, also, have the
          13        objective of making a very accessible area for
          14        all the community, garden environments
          15        throughout that are totally accessible to the
          16        community.
          17             And, also, separating, obviously, the
          18        necessary service and security and operational
          19        requirements necessary to keep guests, as well
          20        as visitors, to the project comfortable and
          21        safe, and at the same time, our project is
          22        entirely compatible with plans FDOT has for the
          23        bay tunnel and future --
          24             THE GOVERNOR:  I'm sorry.  Where are the
          25        gardens?  I don't --
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           1             MR. HERNDON:  Excuse me?
           2             THE GOVERNOR:  The gardens are --
           3             MR. HERNDON:  The drawing on the screen and
           4        then the one that's in the back of your package
           5        basically represents -- up in the upper left-hand
           6        corner, you see the land -- on the --
           7             THE GOVERNOR:  All right.
           8             MR. HERNDON:  In the upper left-hand corner,
           9        that drawing there, it's the land side as well as
          10        the water side is the portion shaded in.  It's
          11        right between the children's museum and the
          12        MacArthur Causeway Bridge, facing west downward
          13        toward downtown.
          14             There's a series of drawings here showing
          15        you the various elevations and perspective
          16        drawings of the different points of view
          17        because our building and deed, our entire
          18        project, has four elevations.  It faces every
          19        major direction and will be visible entirely
          20        throughout.
          21             It's in this area (indicating).  This is
          22        the land side of the development, and this is
          23        the water side of the development.
          24             MS. ARMSTRONG:  Now show them where that
          25        Japanese Garden is at.
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           1             MR. HERNDON:  The Japanese Gardens is right
           2        at the tip of Parrot Jungle right there
           3        (indicating).
           4             THE GOVERNOR:  That's not your property.
           5             MR. HERNDON:  No.
           6             THE GOVERNOR:  Okay.
           7             MR. HERNDON:  Our property is only this
           8        portion that here's shown in this area right here.
           9             THE GOVERNOR:  Island Gardens complies
          10        with -- lots of gardens, it's more -- never mind.
          11        Let's go.
          12             MR. HERNDON:  Important -- I think it's very
          13        important for you to know that this is the only
          14        possible location this project can happen.  It
          15        actually is a commitment that was made in the last
          16        century when the government first began to develop
          17        the main channel because it must have access to a
          18        deep water port.
          19             It, also, is on city-owned land which is
          20        critically important to us as well as having a
          21        high degree of not only public accessibility,
          22        but transportation accessibility throughout the
          23        community.
          24             The project is consistent with the master
          25        plan.  It's consistent with the RFP.  As
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           1        Mr. Arriola has said, it got 68 percent of the
           2        voters and 74 percent of the immediate
           3        neighborhood.
           4             It requires no additional zoning changes.
           5        It has no impact to the DRI or necessarily the
           6        traffic.  It has very substantial benefits
           7        which he may have gone through in great detail.
           8        So far we've gotten unanimous approvals from
           9        the various committees that it's been before in
          10        the City.
          11             We've complied with all reasonable
          12        requests, and we are in the throes of
          13        permitting with DERM and South Florida Water
          14        Management and U.S. Corps of Engineers which is
          15        coming to closure with a very substantial
          16        environmental mitigation program.
          17             Your approval is required for us in order
          18        for us to proceed with the permitting processes
          19        as well as having an impact upon financial
          20        markets and commitments, but particularly the
          21        South Florida Water Management District, we
          22        were actually on their agenda on the 17th of
          23        July, and that's only been pulled only for
          24        the -- the only missing item is the fact of
          25        this waiver.  Likewise, similar objectives,
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           1        DERM and U.S. Corps of Engineers have the same.
           2             The project has been improved by the South
           3        Florida Regional Planning Council, by FDOT, and
           4        DCA, not only in terms of its vested rights,
           5        but, also, the NOPC and its traffic studies.
           6        Provided there's no additional amendments made
           7        by the City Commission and the City Commission
           8        approves the NOPC and the MUS processes, no
           9        further action from DCA is required, and that
          10        vote of the City Commission is scheduled for
          11        this evening.
          12             Thank you very much.  I'm available for
          13        any questions you may have.
          14             THE GOVERNOR:  Thank you.  General, you have
          15        a question?
          16             ATTORNEY GENERAL CRIST:  I do have a
          17        question.  If approved, when would you start
          18        building?
          19             MR. HERNDON:  We have on schedule to commence
          20        our dredging activity which would be our first
          21        task and our relocation of infrastructure before
          22        year's end.
          23             ATTORNEY GENERAL CRIST:  I'm sorry.  When?
          24             MR. HERNDON:  Before year's end.
          25             ATTORNEY GENERAL CRIST:  Before year's end.
.                                                                    135
           1        Thank you.
           2             MS. ARMSTRONG:  Let me mention to you briefly
           3        the provisions that we have within the agreement
           4        to protect the Board of Trustees' interests.  The
           5        main concern we had was in making sure that we
           6        secured enough provisions that protected the
           7        public interest test and what we saw as things
           8        that were necessary -- there is a park there now,
           9        but we want to make sure that there was enough to
          10        meet public interest tests.
          11             They are -- have agreed to pay at least
          12        $1 million to develop the south park which is
          13        on this map -- if you back up just a little bit
          14        there, Michael -- down here.  This is what is
          15        the south park, okay, so they're paying at
          16        least $1 million to develop the park.
          17             They're required to develop it at least as
          18        good as it is now, but with the million
          19        dollars, they're going to develop the park
          20        which includes planting, a jogging trail,
          21        biking trail, security cameras, a parking area,
          22        and, also, rebuild the Japanese Gardens which
          23        I've never been there.
          24             From locals, I hear it's supposed to be
          25        fabulous, and it just needs to be
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           1        redeveloped -- refurbished, the Japanese
           2        Gardens.  Although they're in Parrot Jungle,
           3        they've agreed to help refurbish the gardens.
           4             Sixty percent of this development has to
           5        remain as open space, which includes a walkway
           6        along the waterfront and the promenade, open to
           7        residents and the public when they come to the
           8        facility.
           9             Fifteen percent of the gross rental
          10        payments that are received by the City will
          11        come to the Board of Trustees with a minimum
          12        payment of $300,000 a year.  They will make
          13        those payments twice a year.  There will be a
          14        split payment, but the minimum we will receive
          15        is $300,000.
          16             THE GOVERNOR:  Is that a minimum, or is that
          17        a percentage based on estimated revenue, or is
          18        that --
          19             MS. ARMSTRONG:  It's a minimum payment.  And
          20        I had -- we had, at one time, been talking with
          21        the City about having those payments starting with
          22        construction because under the -- and we had
          23        not -- I was reading off an old copy when I
          24        briefed the Cabinet aides.
          25             We do not have it beginning with
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           1        construction.  We have it beginning with
           2        rentals, so it's after they've actually
           3        completed it, and they have rental income
           4        coming in.
           5             THE GOVERNOR:  The City is not getting
           6        payments from --
           7             MS. ARMSTRONG:  During construction?
           8             THE GOVERNOR:  -- the developers?
           9             MS. ARMSTRONG:  Oh, yes, they are.
          10             THE GOVERNOR:  They are and we're not
          11        getting --
          12             MS. ARMSTRONG:  Yeah, $1 million a year, but
          13        we're not getting anything during that time
          14        period.  That goes to the City only.
          15             THE GOVERNOR:  What's the point of that?
          16             CFO GALLAGHER:  When do we get our
          17        15 percent?
          18             MS. ARMSTRONG:  Well, that's kind of where we
          19        were in the beginning, but we changed that
          20        position during negotiations.
          21             CFO GALLAGHER:  Well, we might --
          22             THE GOVERNOR:  Let's hear the rest of it, and
          23        then we'll be --
          24             MS. ARMSTRONG:  Okay.  Well, those were the
          25        high points, but I thought I'd just go ahead and
.                                                                    138
           1        have the speakers speak, and then we'd open it up
           2        for general discussion if that's okay with you.
           3             THE GOVERNOR:  Okay.
           4             MS. ARMSTRONG:  Will that work?  Okay.  With
           5        that, the speakers are Mayor of City Beach --
           6             THE GOVERNOR:  Miami Beach.
           7             MS. ARMSTRONG:  -- Miami Beach, David Dermer.
           8             THE GOVERNOR:  Good morning, Mayor.
           9             MAYOR DERMER:  Good morning, sir.
          10             THE GOVERNOR:  Good afternoon, Mayor.
          11             MAYOR DERMER:  Good afternoon.  Governor and
          12        members of the Cabinet, it's an honor to be able
          13        to appear before you.  I appreciate it very, very
          14        much.  I'm joined here today with our economic
          15        development director, Kevin Crowder, along with
          16        our attorney, Gary Rutledge.
          17             And let me first say, at the outset, that
          18        we are not here to object to this project.
          19        We're here just to respectfully request that we
          20        get a one-month deferral or till your next
          21        meeting, which I believe is in August.
          22             In that, I want you to know that we feel
          23        that economic development is good.  We like the
          24        fact that there is going to be 605 new hotel
          25        rooms and more tourists spending money over in
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           1        South Beach in our city.
           2             In fact, we're very proud of the fact that
           3        we've been the impetus for Miami's success, and
           4        we want to -- and we want to continue that
           5        chummy relationship with our friends and
           6        neighbors across the bay.
           7             But let me say this, that Miami Beach's
           8        only interest, at this time, is to ensure that
           9        all negative impacts are addressed and that the
          10        appropriate mitigation strategies are
          11        identified and implemented.
          12             As you know, traffic congestion is
          13        currently the single greatest threat to the
          14        economic stability of Miami Beach, Miami-Dade
          15        County, and South Florida, and I saw that in an
          16        article, Governor, on your recent address that
          17        you had to the region there.
          18             And I know that you're concerned about
          19        that issue as all of us are who live in South
          20        Florida.  The City has identified several areas
          21        and points of concerns, but our main issue is
          22        the transportation impact and the adverse
          23        effects on the quality of life of area
          24        residents and businesses that will occur due to
          25        the size and type of the proposed development.
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           1             To put it in some perspective, the
           2        605-room hotel will be the sixth largest hotel
           3        in Miami-Dade County, and 221,000 square feet
           4        of retail restaurant space is approximately the
           5        same size as Bayside Marketplace, not to
           6        mention the projects other components, so we're
           7        talking about an enormous project here.
           8             The City of Miami Beach understands that
           9        FDOT does not see a fatal flaw in the traffic
          10        impact methodology, but they do acknowledge
          11        that the MacArthur Causeway should not be
          12        classified as a freeway as was done in the
          13        transportation assessment, but that it operates
          14        somewhere between a freeway and an arterial.
          15             It is the City of Miami Beach's position
          16        that since the causeway is classified as an
          17        arterial, it should be studied as such;
          18        therefore, the City of Miami Beach feels that
          19        there are still outstanding traffic issues
          20        identified by the consultants for both the City
          21        of Miami Beach and FDOT that necessitate
          22        further study.
          23             And I know that the letter that was handed
          24        out just today, as to FDOT's approval relating
          25        to concerns that we have, we were never even
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           1        invited to this meeting.  Keep in mind, those
           2        of you, I know, that have visited and know the
           3        area, know what the MacArthur Causeway is all
           4        about.
           5             It's that 5th Street Causeway that links
           6        us between Miami and the beach.  Let me tell
           7        you.  On any given weekend, our City, which may
           8        have a permanent population of approximately
           9        100,000, can swell to 200,000 or 250, and
          10        that's one of the major roads that people go to
          11        and from.
          12             And it's a very difficult situation for
          13        both our cities if there's going to be gridlock
          14        like that.  As mentioned before, overstating
          15        the maximum service capacity for the MacArthur
          16        Causeway, the MacArthur Causeway is an arterial
          17        road and not a freeway.
          18             Now, what they're saying in their
          19        studies -- and I got a chance to peruse them a
          20        little bit -- was that, yeah, you know, we
          21        agree that it may be a freeway up to Watson
          22        Island, but we have lights.
          23             We have signals coming over to Miami
          24        Beach, so it's clearly an arterial.  So
          25        there's -- and, also, I believe, in
.                                                                    142
           1        Mr. Plumber's study that I was reading, he said
           2        that, in his analysis, where there would be
           3        sufficient traffic flow, that only 15 percent
           4        of the traffic from these hotels, only
           5        15 percent from hotels are coming our way to
           6        South Beach.
           7             Now, I don't want to brag at all, but, you
           8        know, we're one of the reasons a lot of
           9        tourists do come to our town, and I would
          10        venture to -- you know, with all the amenities
          11        and fun things happening in Miami, I think
          12        we'll have a little bit more than 15 percent
          13        coming our way on the bridge.
          14             MS. ARMSTRONG:  You have one minute left.
          15             MAYOR DERMER:  Only one minute?  Okay.  So
          16        let me sum up by saying this.  Right now you've
          17        got a hearing going on in the City of Miami today.
          18        Commissioners from our city are going to be
          19        attending that hearing along with staff, laying
          20        out our concerns.
          21             And, you know, we just want the ability,
          22        for just one short time, one-month period
          23        approximately, to sit down with our neighbors
          24        to hash out some of these issues, to make this
          25        a better project for everybody.
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           1             There, also, are the issues of the
           2        residential component and a possible casino
           3        development on the property, too, that I
           4        believe needs to be restricted here as well; so
           5        those are some issues that I hope will be
           6        looked at.
           7             And frankly, those were in correspondence
           8        that we'll be happy to make sure the folks from
           9        Miami have; so what's one short deferral until
          10        the next meeting?  After Watson Island, they've
          11        had plans on that for over 25 years or as long
          12        as I can remember.
          13             And I hope this project happens, but that
          14        it is done in the right way to benefit both our
          15        cities.  I thank you-all very much for your
          16        time and for listening so patiently.
          17             CFO GALLAGHER:  I have one question.  What
          18        would be your expectations, in your negotiation
          19        with the City of Miami, that would change what we
          20        have in front of us right now 30 days from now?
          21             MAYOR DERMER:  Well, I think, first of all,
          22        we would love them to come over and make a
          23        presentation to us so we even get a chance to
          24        digest this project.  They've had a lot of public
          25        meetings, but we haven't had much dialogue at all.
.                                                                    144
           1        There was a hurried meeting earlier in the week,
           2        and that's it.
           3             Second of all --
           4             CFO GALLAGHER:  Wait.  Wait.  Let me just ask
           5        you.
           6             MAYOR DERMER:  Second of all, my expectations
           7        are that we have a real legitimate, honest traffic
           8        study and do proper mitigation.  In fact, the
           9        commissioner, the County Commissioner, Miami-Dade
          10        County Commissioner Bruno Barreiro, I conferred
          11        with him recently, and he agrees that there should
          12        be a deferral for mitigation purposes as well.
          13             And he represents the district and, also,
          14        the vice chairman of the County's
          15        transportation committee, so if we get a
          16        legitimate traffic study, can work together for
          17        both our cities, I think that's what we need.
          18        That's my expectation.
          19             CFO GALLAGHER:  Yeah.  But I don't see a
          20        traffic study happening in 30 days.
          21             MAYOR DERMER:  I think we could do it by the
          22        next meeting.  I think it can happen.  Absolutely.
          23        I've seen a lot of traffic studies in my time as
          24        Mayor of Miami Beach, and they can come pretty
          25        quickly when they want to.
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           1             THE GOVERNOR:  Thank you, Mayor.
           2             MAYOR DERMER:  I thank you.
           3             CFO GALLAGHER:  Can I ask a question?
           4             THE GOVERNOR:  Sorry, Treasurer.
           5             CFO GALLAGHER:  One other one.  Wasn't there
           6        a big meeting last week, for over two hours, with
           7        your people and the City of Miami folks?
           8             MAYOR DERMER:  There was a meeting that Kevin
           9        Crowder attended.  That was the first meeting that
          10        we had, just a rushed meeting, right at the end
          11        there, that the City of Miami basically invited us
          12        over in a way that said, listen, you want to be
          13        here, you be here tomorrow at nine o'clock.
          14             We went there.  We expressed our concerns
          15        to them, and we asked to have some further
          16        dialogue on the matter, and that's where it
          17        ended.
          18             CFO GALLAGHER:  Well, let me ask just a
          19        couple more.
          20             MAYOR DERMER:  And just for the record, I did
          21        not attend that meeting, but I had somebody there,
          22        and he'll be able to factually represent
          23        everything that occurred.
          24             CFO GALLAGHER:  They had 26 public hearings.
          25        Now, it's not like you live in Tallahassee and
.                                                                    146
           1        don't get to read the same newspaper.
           2             MAYOR DERMER:  Uh-huh.
           3             CFO GALLAGHER:  Any of those somebody, from
           4        your city, could have been there and talked to, I
           5        would think.
           6             MAYOR DERMER:  Those public hearings occurred
           7        prior to 2002, and the referendum was a City of
           8        Miami referendum that they speak of, that the City
           9        Manager had brought to your attention, where the
          10        affected islands from the Venetian, four of them
          11        are in our city and never voted.
          12             And, also, along Palm Star, Hibiscus, and
          13        Fisher never voted, and frankly, on the
          14        referendum question, was a smaller project than
          15        is being proposed, that the people voted on.
          16             CFO GALLAGHER:  Well, if the residents of all
          17        those islands voted no, it was so overwhelming, I
          18        don't think it would have changed it any.
          19             MAYOR DERMER:  Compared to the City of Miami,
          20        no, but I think their interaction is -- you know,
          21        in all political campaigns, sometimes a small
          22        vocal minority can make a difference on
          23        influencing an election.  I've seen that happen
          24        before.
          25             CFO GALLAGHER:  I don't disagree with you.
.                                                                    147
           1        Thank you.
           2             MAYOR DERMER:  I thank you very much for your
           3        attention.
           4             THE GOVERNOR:  Thank you, Mayor.  Thank you
           5        for coming all the way up to Tallahassee.
           6             CFO GALLAGHER:  Thank you, sir.
           7             MS. ARMSTRONG:  Just for the record, there's
           8        nothing in this document that gives them
           9        permission in the future to hold casino gambling
          10        activities, but there's, also, nothing that,
          11        should the law change, prevent them from holding
          12        casino gambling activities.  I thought it caught
          13        your attention when he mentioned it.
          14             CFO GALLAGHER:  It would change the hotels on
          15        Miami Beach doing the same thing, so --
          16             MS. ARMSTRONG:  Right.  Right.  It's
          17        interesting that he brought that up.  The next
          18        speaker is Daniel Enriquiz.  Are you here?
          19             THE GOVERNOR:  How many speakers do we have?
          20             MS. ARMSTRONG:  After that, three.
          21             THE GOVERNOR:  Okay.  Good afternoon, sir.
          22             MR. ENRIQUIZ:  Good afternoon, Governor and
          23        the Cabinet.  My name is Danny Enriquiz, and I'm
          24        here on behalf of the Urban Environment League.
          25        The Urban Environment League of Greater Miami is a
.                                                                    148
           1        nonprofit community-based organization whose
           2        mission includes the protection and preservation
           3        of public lands for the public's use.
           4             We've examined Island Garden's documents
           5        for the proposed development on Watson Island,
           6        and it appears to be an inappropriate use of
           7        public waterfront land.  There are significant
           8        issues with this proposal that have yet to be
           9        clarified.
          10             The UEL would like to ask that any
          11        decision be deferred until these issues are
          12        fully addressed.  The most glaring problem is
          13        regarding public access and amenities.  It is
          14        our belief that the State has insufficient
          15        information on which to make a fair judgment of
          16        whether the project, as currently designed,
          17        intends to deliver amenities and whether
          18        sufficient enforcement provisions are available
          19        to ensure that these amenities are delivered.
          20             The Flagstone group intends to meet its
          21        public access and amenities requirements by
          22        setting up a civic arts endowment trust to fund
          23        part of the proposed amenities.
          24             However, section 26.2 of the lease
          25        indicates that this trust is funded from net
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           1        operation income from the lesser and each
           2        applicable subtenant.  Every other financial
           3        provision benefiting the City of Miami is based
           4        on specific dollar fees or revenue taxes.
           5             Yet the public interest relies on the net
           6        operating income that is not guaranteed.  None
           7        of the amenities are guaranteed in the ground
           8        lease, and the State has not placed any sort of
           9        time line on when the amenities should be
          10        built.
          11             We would like the State to take the time
          12        to fully examine this issue so as to ensure
          13        that the public is not fenced out of this
          14        remarkable waterfront property.  Furthermore,
          15        the legality of granting time share licenses
          16        merits further examination from the State.
          17             The UEL echoes the concerns of the
          18        Venetian Causeway Neighborhood Alliance, the
          19        Department of Community Affairs, and the City
          20        of Miami Beach, all of whom would like several
          21        issues fully examined before a decision is
          22        rendered.
          23             We are not fundamentally opposed to this
          24        project.  We simply want to ensure that the
          25        public receives the amenities it voted on in
.                                                                    150
           1        2001 and approves this development.  This
           2        amazing property has a potential to get truly
           3        standalone public attraction.
           4             Please take the time to guarantee that it
           5        fulfills that potential.  Thank you.
           6             THE GOVERNOR:  Thank you very much.
           7             MS. ARMSTRONG:  Nancy Brown, then Eric Draper
           8        and Marianne Gengenbach.
           9             THE GOVERNOR:  Good afternoon.
          10             MS. BROWN:  Good afternoon.  Nancy Brown.  I
          11        think I'm representing Friends of the Everglades
          12        here since they have no one to speak for them on
          13        this issue here.  I see that this is listed as a
          14        modification.
          15             I see it as a very serious modification
          16        that, in fact, takes away the language of the
          17        earlier deeds which insists on more, that there
          18        will be no transfer or sale to private
          19        entities, and I think that's -- if I'm not
          20        mistaken, I think that is what you're
          21        eliminating from the language, the specific
          22        language referencing the public purpose, nature
          23        of the dedication, and prohibiting the sale of
          24        conveyance and lease.
          25             Now, that's what you're taking out.  I see
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           1        that you are using, as an example of what
           2        you're doing on this Island, in the
           3        construction of Bayside, the Governor and
           4        Cabinet -- not you-all.
           5             The Governor and Cabinet approved what is
           6        actually a legal fill in the Biscayne Bay
           7        Aquatic Preserve in order to accommodate a
           8        restaurant, like there's no shortage of
           9        restaurants in Miami, but that is not a good
          10        example to use as what you're going to do on
          11        this project.
          12             What is missing from this -- and I have to
          13        apologize.  I just got notice of this yesterday
          14        afternoon late; so I have not really inspected
          15        all of it, but it seems that the amount of
          16        dredging, which was used by one of the
          17        applicants, has not even been discussed as to
          18        what is going to be dredged.
          19             I understand that they want a deep
          20        channel, and I would agree with that, that
          21        there is -- probably this would be the best
          22        opportunity for mega-yachts, but I don't know
          23        what other dredging is proposed.
          24             And dredging in the Biscayne Bay Aquatic
          25        Preserve, at which I have lived with since 1974
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           1        and upheld as long as I lived in Dade County,
           2        there's no indication as to what's going to
           3        happen, what is going to be dredged and whether
           4        that is legal.
           5             I have some big concerns about the
           6        language that was used, and I have already
           7        understood that the lines that are underlined
           8        here have been struck from your agendas, is
           9        that correct, which goes into, again, the
          10        heart -- you don't know?  Okay.
          11             See, I want to know about this.  You say
          12        it's deleted.  The language in here says that
          13        when the State of Florida conveys land to a
          14        city or an individual, that it is no longer
          15        part of the Biscayne Bay Aquatic Preserve, and
          16        that is so deadly wrong that I just feel
          17        compelled to discuss it, even though this has
          18        been amended or taken out.
          19             THE GOVERNOR:  Just so everybody understands,
          20        we're not -- that's been taken out of the
          21        agreement.
          22             MS. BROWN:  It's been written, though, and
          23        that's what concerns me, that this --
          24             THE GOVERNOR:  It's been written.
          25             MS. BROWN:  This was printed -- the Biscayne
.                                                                    153
           1        Bay is described very carefully.
           2             THE GOVERNOR:  If we approve this, what
           3        you're referring to is not in that agreement.
           4             MS. BROWN:  I am concerned about the
           5        mentality of whoever did this work for the DEP who
           6        put this language in because it is totally
           7        contrary to the law.
           8             THE GOVERNOR:  And that's why it's been taken
           9        out.
          10             MS. BROWN:  The rules shall apply to all
          11        lands, public and private, within the Aquatic
          12        Preserve, and the Aquatic Preserve is measured
          13        very closely; so I think that would be my major
          14        concern there.
          15             And another major concern is that this is
          16        very likely a public thing.  It has a public
          17        space in the gardens.  That's wonderful.  All
          18        the rest of it is totally private.  Mega-yachts
          19        usually do not come with public -- you know,
          20        there's not a lot of those around.
          21             So I think that money has ruled here.  I
          22        mean, there are a whole lot of things to
          23        hotels, retail shops, all of that.  We just
          24        went through this with Brickell Key Marina.  I
          25        would hope that none of the modifications that
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           1        you-all contemplate in here are going to enable
           2        a Brickell Key Marina now to pop up --
           3             I'm very concerned about this.  I thank
           4        you very much --
           5             THE GOVERNOR:  Thank you for coming.
           6             MS. BROWN:  -- and for your time.
           7             MR. DRAPER:  Eric Draper speaking on behalf
           8        Audubon Florida and the Tropical Audubon Society
           9        which actually enlisted us in taking this item up.
          10        I just want to say that, Governor and members of
          11        the Cabinet, we really appreciate your stewardship
          12        of the State's natural resources.
          13             We, also, appreciate what you do to bring
          14        economic growth to places like the City of
          15        Miami.  That's where our headquarters are, and
          16        we care about that place.  We, also, encourage
          17        you to defer this item because we don't think
          18        that you've given -- staff has given proper
          19        consideration to the potential impacts of
          20        Biscayne Bay Aquatic Preserve.
          21             We've communicated with Secretary Castille
          22        and specifically noted in that letter that the
          23        agenda item, itself, did not even recognize the
          24        fact that these lands, which are public lands,
          25        are within the Biscayne Bay Aquatic Preserve,
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           1        and therefore, governed by the Biscayne Bay
           2        Aquatic Preserve Act.
           3             Even though they are, you know, not
           4        necessarily state-owned public lands, all
           5        public lands are governed by the terms of that
           6        act, and the statutory language specifically
           7        says no further sale or transfer of lease of
           8        sovereignty submerged lands in the preserve
           9        shall be approved by the Board of Trustees
          10        except where showing of extreme hardship.
          11             I won't read the rest of that.  Without
          12        going into a definition of what extreme
          13        hardship is, I'm not sure that the economic
          14        needs of the City of Miami are necessarily met
          15        in this case.
          16             We would like to see, in the same way that
          17        the City of Miami Beach would like to see it,
          18        an examination and mitigation of the traffic
          19        impacts.  We would like to make sure that
          20        you've taken complete consideration of the
          21        potential impacts on the aquatic preserve as a
          22        result of expanded use of the marina there,
          23        even though the footprint isn't necessarily
          24        expanding.
          25             And we would ask, therefore, that you
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           1        defer this item until we got a chance to look
           2        at all the issues that we simply have not had
           3        enough time to get in there and dig around and
           4        see what's going on with them.  Thank you very
           5        much.
           6             THE GOVERNOR:  Thank you, Eric.
           7             MS. ARMSTRONG:  I do need to make one
           8        correction here with the item which I'd forgotten
           9        about.  In the backup, on page -- this is for the
          10        record.  You don't need to look at it, but on
          11        page 99 of attachment 14, we are correcting the
          12        diagram that reflects the legal description.
          13             The legal description is correct.  It's
          14        the diagram that's not.  Currently it reflects
          15        that angled line, and that is not accurate.
          16        What will be reflected is that there is no
          17        line.  This is the correct legal.  Okay?
          18             THE GOVERNOR:  Thank you, Eva.
          19             MS. ARMSTRONG:  So with that -- Marianne
          20        Gengenbach, I'm sorry.  I forgot you.
          21             MS. GENGENBACH:  Marianne Gengenbach with the
          22        Nature Conservancy, good afternoon.  DEP has,
          23        obviously, taken the legal position that the
          24        Aquatic Preserve statute does not apply, and we
          25        are here because we care very much about the
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           1        natural resources that are in the Biscayne Bay
           2        Aquatic Preserve.
           3             There are legal arguments on probably both
           4        sides of that issue, and it's been my
           5        experience -- and I'm sure its been yours as
           6        well -- that when there is such a differing
           7        legal opinion as to whether a statute applies,
           8        it can often lead to litigation if these things
           9        are not resolved.
          10             I'd like to take the discussion a step
          11        further.  There's no doubt that Watson Island
          12        is located in the Biscayne Bay Aquatic Preserve
          13        which is a preserve that has such incredible
          14        natural resources that it warranted a separate
          15        piece of statute by the Legislature that holds
          16        putting things in that preserve to a higher
          17        standard including the extreme hardship
          18        standard.
          19             It is, also, true that the applicants
          20        coming to you for a modification of deed
          21        restrictions -- and if they didn't require your
          22        approval for those deed restrictions, they
          23        would not be here.
          24             It's our feeling that the overarching
          25        charge of the Board of Trustees is to protect
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           1        the public interests of the entire state of
           2        Florida, and not the least of those charges is
           3        to protect the natural resources that have been
           4        carefully set aside for the entire state.
           5             It's not just the City of Miami and the
           6        City of Miami's economic development, but we're
           7        talking about natural resources that could be
           8        dramatically impacted by a development of this
           9        magnitude.
          10             Given this fact, we think that the Board
          11        of Trustees is well within its authority to
          12        place conditions upon the approval of deed
          13        restriction modifications that would address
          14        the protection of the precious resources in the
          15        Biscayne Bay Aquatic Preserve.
          16             I think that, in that sense, a deferral of
          17        this item to bring those folks to the table,
          18        who care about those natural resources, to
          19        address those concerns before final approval is
          20        given and placing such conditions would be
          21        appropriate, and we strongly urge you to do
          22        that.  Thank you.
          23             THE GOVERNOR:  Treasurer.
          24             CFO GALLAGHER:  Ma'am, would you give me an
          25        example of what kind of additional things you'd be
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           1        looking for?
           2             MS. GENGENBACH:  Well, I think that because
           3        this was not even on the radar screen, with
           4        respect to what the impacts would be since people
           5        thought that the Biscayne Bay Preserve did not
           6        apply, I think we would have to look at meeting
           7        the conditions.
           8             But barring that, bringing the folks to
           9        the table, who care about the natural
          10        resources, and just simply have a thorough
          11        discussion of the impacts of the dredging, of
          12        exactly what would be happening to the
          13        resources in Biscayne Bay as a result of this
          14        development, would be appropriate before final
          15        approval is given.
          16             It's quite possible that if you get
          17        everybody to the table, these protections could
          18        be worked out, but it's clear to me that this
          19        has not occurred prior to this time.
          20             CFO GALLAGHER:  Well, you know, if you talk
          21        about dredging, Government Cut is kept at a very
          22        deep -- you know, because all of the cruise ships
          23        come in and out of there and, also, the
          24        freighters, that that whole Government Cut, all
          25        the way up to the end of Watson Island including
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           1        the end of Government Cut there where it goes into
           2        the Intracoastal is really a turnaround basin for
           3        the ships; so that whole area is already probably
           4        15- or 20-feet deep.
           5             MS. GENGENBACH:  Right.  And maybe that is a
           6        bad example, but the item, also, states that there
           7        are going to be temporary easements needed for the
           8        construction of this which could, also, have
           9        significant environmental impacts.
          10             And again, none of that has been detailed
          11        at this point.  I think having people sit down
          12        and discuss what those are and how to minimize
          13        those in a more clear fashion where all the
          14        stakeholders are at the table of that
          15        discussion -- and that includes a statewide
          16        interest, not just a local interest -- I think
          17        that that would be appropriate.
          18             And getting a deferral would probably
          19        allow that discussion to take place.
          20             CFO GALLAGHER:  Thank you.
          21             MS. GENGENBACH:  Thank you.
          22             THE GOVERNOR:  Eva.
          23             MS. ARMSTRONG:  Well, those are all our
          24        speakers.  Do you have questions of staff or --
          25             THE GOVERNOR:  Is there any planned dredging?
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           1             MS. ARMSTRONG:  Yes, sir, but that'll come in
           2        under the district or water management district
           3        regulatory.  It's not contemplated here.  None of
           4        that is being approved here.  That will all go
           5        under normal regulatory permitting procedures.
           6             THE GOVERNOR:  Okay.
           7             CFO GALLAGHER:  Governor, if we could --
           8             THE GOVERNOR:  Yeah.
           9             CFO GALLAGHER:  We've heard the City Manager
          10        talk about why they would like to have it.  We've
          11        heard people from Miami Beach and others on why
          12        they would like to defer it.  The City Manager
          13        didn't have the issue of deferral in front of him
          14        when he spoke before, and I'd like to hear his
          15        thoughts on that, if we could.
          16             THE GOVERNOR:  Okay.
          17             CITY MANAGER ARRIOLA:  Of course, I'm very
          18        opposed to deferral, and I will tell you why I'm
          19        opposed to deferral.  Let's tackle the issue of
          20        the Beach and their concerns for traffic.  If the
          21        Beach was so concerned about the traffic, I think
          22        that they would have to just drive about a mile
          23        down that same road they're concerned, where they
          24        have allowed 6,000 units to be built, and at the
          25        present time, there's other thousands of units
.                                                                    162
           1        being built.
           2             If they're so concerned about what we're
           3        doing in the City of Miami, I think it would
           4        have been very nice of them to include us in
           5        their studies of the traffic impact that they
           6        created in the Morano and all those
           7        developments that are going in there.
           8             We have gone through this through a very,
           9        very public process.  This is nothing other
          10        than a city that is jealous that we're building
          11        a very, very classy five-star hotel with all
          12        kinds of incredible developments.
          13             This is nothing but a City of Miami Beach
          14        butting in into the business of our city.  We
          15        do not go there and ask them for things like
          16        that.  We have gone to every single
          17        transportation expert.
          18             We have talked with everybody that had
          19        anything and everything to say about this, and
          20        everybody approved it.  On the last hour, two
          21        weeks ago, I received a letter saying stop the
          22        process, we have not been a participant.
          23             This has been so public.  We have made
          24        presentations.  As a matter of fact, the Mayor
          25        of Miami Beach was in the office of my mayor,
.                                                                    163
           1        and he looked at the project less than a year
           2        and a half ago.
           3             So for them to come up now with this is
           4        ludicrous.  I mean, if I sound very upset, let
           5        me tell you.  I am very upset because this is
           6        last-minute tactics to kill what I think is a
           7        great project.
           8             CFO GALLAGHER:  Well, let me ask you.  How
           9        would 30 days kill it?
          10             CITY MANAGER ARRIOLA:  Well, very much so.
          11        It would delay -- first of all, it's not 30 days.
          12        It's a lot longer 30 days.  It's quite a bit
          13        longer, but, you know, I'm going to look at their
          14        side of the point, the developers.
          15             You know, longer time for financing.  You
          16        know, there's a whole slew of things.  The
          17        permitting process, there are three other
          18        permits that would have to go through that now
          19        that would delay 60 days that would trigger
          20        another 60 days that would trigger another 60
          21        days.
          22             And this is based on what, on Johnny Come
          23        Lately that shows up, and now says, we have a
          24        problem with traffic?
          25             THE GOVERNOR:  The Mayor of Miami Beach has
.                                                                    164
           1        every right to come up here just like you --
           2             CITY MANAGER ARRIOLA:  Absolutely.
           3             THE GOVERNOR:  -- and other citizens as well
           4        that aren't as concerned about the traffic.
           5        They're concerned about the water resource; so,
           6        you know --
           7             CITY MANAGER ARRIOLA:  But it's been three
           8        years of public process, though.
           9             THE GOVERNOR:  You get this angry at your own
          10        City Council meeting?
          11             CITY MANAGER ARRIOLA:  Yes, sir.  Absolutely.
          12             THE GOVERNOR:  Wow.
          13             CITY MANAGER ARRIOLA:  I get angrier.
          14             THE GOVERNOR:  Wow.
          15             CITY MANAGER ARRIOLA:  Yes.
          16             COMMISSIONER BRONSON:  Governor, there's two
          17        issues here that are still working on my mind.
          18        One is the issue of the potential of turning this
          19        private into what could be casino activity that
          20        I'm still concerned about because I don't know
          21        what the full legal and ramifications of that is,
          22        and, Number 2, trying to clarify the issue of the
          23        bay or the Aquatic Preserve.
          24             Those are two that I'm still very unclear
          25        on where we are legally with all of those
.                                                                    165
           1        issues.
           2             THE GOVERNOR:  Maybe we should ask Eva to
           3        comment on those.
           4             CITY MANAGER ARRIOLA:  Well, we can't dredge
           5        it without going through the process of -- you
           6        know, they would have to get other permits.  This
           7        has nothing to do with the dredging, and for them
           8        to dredge, they would have to go out and acquire
           9        permits and go through the whole process.
          10             That's one of the permits they're trying
          11        to acquire right now.
          12             THE GOVERNOR:  Dredging principally would be
          13        for the construction of the marina --
          14             CITY MANAGER ARRIOLA:  Yes, sir.
          15             THE GOVERNOR:  Treasurer Gallagher's point is
          16        correct, isn't it, that most of the dredging, as
          17        it relates --
          18             CITY MANAGER ARRIOLA:  It's already done.
          19             THE GOVERNOR:  -- to the sea grasses are
          20        already done or all of it?
          21             CFO GALLAGHER:  Right.  And the marina is
          22        already basically -- I mean, the City already has
          23        control of that, and I don't know how we can stop
          24        them from dredging it because they're basically --
          25        I mean, they're going to get the permits, in my
.                                                                    166
           1        opinion, because it's already --
           2             CITY MANAGER ARRIOLA:  It's an's existing
           3        marina there as you know.
           4             CFO GALLAGHER:  They're not going to make the
           5        marina any larger than the footprint --
           6             CITY MANAGER ARRIOLA:  No.
           7             CFO GALLAGHER:  -- and there's been dredging
           8        and continual dredging --
           9             THE GOVERNOR:  I assume you have to take some
          10        pilings out.
          11             CFO GALLAGHER:  -- probably by the Corps of
          12        Engineers if you're doing the dredging.
          13             CITY MANAGER ARRIOLA:  That's what it is.
          14             CFO GALLAGHER:  Okay.  And the gambling
          15        thing, I think -- personally I think that's a red
          16        herring, but Eva can talk about it.
          17             THE GOVERNOR:  Eva.
          18             MS. ARMSTRONG:  Yes, sir.
          19             THE GOVERNOR:  Why don't you --
          20             MS. ARMSTRONG:  What I'd like to do is have
          21        Bud Vielhauer, who's our deputy general counsel
          22        for public lands --
          23             THE GOVERNOR:  Sure.
          24             MS. ARMSTRONG:  -- respond on both issues if
          25        you don't mind.
.                                                                    167
           1             THE GOVERNOR:  On the Aquatic Preserve issue.
           2        That's an important one.
           3             MR. VIELHAUER:  On the Aquatic Preserve
           4        issue, clearly Watson Island does fall within the
           5        Biscayne Bay Aquatic Preserve.  The statute,
           6        itself, sets out a boundary, a legal description,
           7        and Watson Island and the submerged lands around
           8        it clearly fall within that boundary.
           9             They fall within the preserve; so the real
          10        issue here is whether this transaction would be
          11        subject to those real strict requirements that
          12        are set forth in this statute and our rules for
          13        public or for activities in the Biscayne Bay
          14        Aquatic Preserve.
          15             Those are it has to be in the public
          16        interest, and the applicant would have to
          17        establish that they have an extreme hardship
          18        unique to themselves, but what we've got here
          19        is a question that whether that test applies to
          20        this city because this is a use sale or
          21        transfer of sovereignty submerged land.
          22             Now, clearly this is a transfer of a real
          23        estate, and to that extent, it would apply, but
          24        the problem we've got here is the question and
          25        the definition of what sovereignty submerged
.                                                                    168
           1        land is.
           2             Now, as you've heard from a couple of
           3        previous speakers, there is in question as to
           4        whether this would be sovereignty submerged
           5        land.  I think our legal opinion is that the
           6        better argument is that these are not
           7        sovereignty submerged lands because the
           8        constitution talks about sovereignty versus
           9        submerged lands being -- it is not sovereignty
          10        submerged lands if the property has been
          11        alienated out.
          12             This property has been conveyed to the
          13        City of Miami; so we think that that's the
          14        better argument that this is not sovereignty
          15        submerged lands, and therefore, the Biscayne
          16        Bay Aquatic Preserve rule does not apply, or
          17        the extreme hardship test does not apply.
          18             As for the casino boat issue, clearly
          19        there is a state statute prohibiting any casino
          20        activities in the state of Florida unless it's
          21        certain activities such as casinos on
          22        reservations, but we, also, have, this being
          23        privately owned lands or at least not being
          24        sovereignty submerged land, it would not be --
          25        they could still put in day cruise type of
.                                                                    169
           1        activities.
           2             But you still have the ability, in your
           3        deed restriction.  If you want to waive the
           4        deed restriction, you have the ability, though,
           5        to put in a condition that would prohibit
           6        casinos.  You do have that ability.
           7             CFO GALLAGHER:  The casino you're talking
           8        about is what we've done -- and we had to get it
           9        done through statute -- is on submerged lands that
          10        we've leased, I believe, that we do not allow
          11        casino ships to be anchored or to be tied up at
          12        those docks.
          13             MR. VIELHAUER:  Although I will caution that
          14        we lost that case in the first DCA.
          15             CFO GALLAGHER:  I know we did, but the
          16        Legislature never did fix it to date?
          17             THE GOVERNOR:  No.
          18             MR. VIELHAUER:  No.
          19             CFO GALLAGHER:  Okay.  But it was -- it had
          20        to go the Legislature?
          21             MR. VIELHAUER:  That's right.
          22             THE GOVERNOR:  It got shut out.  It was a
          23        noble effort, though.  If the development changes
          24        its shape, changes its use, we have no recourse?
          25        In other words, we're not approving -- we're
.                                                                    170
           1        waiving the deed restrictions that we have on the
           2        property now in return for a commitment for public
           3        amenities and --
           4             MS. ARMSTRONG:  And the payment.
           5             THE GOVERNOR:  And the payment.
           6             MS. ARMSTRONG:  Yes, sir.
           7             THE GOVERNOR:  So if the use changes, if the
           8        casino is put into the hotel or if time shares
           9        don't work so they decide to build and turn those
          10        into condos or whatever -- I mean, it could be a
          11        series of different things -- or if the mega-yacht
          12        thing doesn't work, so there's maybe some other
          13        use there, we don't --
          14             MS. ARMSTRONG:  The way it's currently
          15        worded, no, sir.
          16             CFO GALLAGHER:  Well, I don't see why we
          17        couldn't approve only what's been asked for here
          18        and may require them to come back if they make any
          19        changes.  I mean, I would be very uncomfortable to
          20        do anything but that.
          21             MS. ARMSTRONG:  We could do that.  Yes, sir.
          22        We could make it tighter.  If that would be your
          23        desire, we could do that.
          24             THE GOVERNOR:  Well, I want to be careful
          25        doing that because then we start getting into the
.                                                                    171
           1        micromanagement of -- there has to be some
           2        flexibility, I think, in development because of
           3        something, in the scale, it may be changed.
           4             But what I found -- why couldn't we have
           5        our conditions kick in with the final
           6        development order being done?  In other words,
           7        we have a better understanding of exactly what
           8        it is that's coming.
           9             MS. ARMSTRONG:  We probably ought to have --
          10        yeah.  I was going to suggest you hear from the
          11        City or the Flagstone because it probably
          12        implicates -- impacts their financing.
          13             MS. BILBERRY:  Hi, Lori Bilberry with the
          14        City of Miami.  Your waiver of deed restriction
          15        does specifically reference this lease, so the
          16        uses would be that which are defined in the lease.
          17        And additionally, no residential would be allowed
          18        here.
          19             No sale of condos or conversion of that
          20        nature.  That would, also, constitute a
          21        violation of the initial RFP that went out; so
          22        we would not be able to provide that type of
          23        change.
          24             CFO GALLAGHER:  I'm sorry.  What did you say
          25        that had to be -- that the development has to be
.                                                                    172
           1        consistent with the RFP that you received and what
           2        they're going to have to build?
           3             MS. BILBERRY:  Correct.
           4             CFO GALLAGHER:  So you will hold them to
           5        that?
           6             MR. HERNDON:  Again, as I said before, the
           7        issue goes before the City Commission tonight, and
           8        assuming it passes, the development orders will be
           9        in place tonight relative to the NOPC and the MUS.
          10             THE GOVERNOR:  So you can't build a casino in
          11        your hotel?
          12             MR. HERNDON:  No.
          13             THE GOVERNOR:  Even if the law changes.
          14             MR. HERNDON:  There is provision in the lease
          15        that if the law changes and all the hotels in
          16        competitive set is building casinos, then we can
          17        go back to the City and ask them to do that, and I
          18        suspect they would have us come back here at the
          19        same time.
          20             THE GOVERNOR:  Well, would they?  That's my
          21        question.
          22             MS. ARMSTRONG:  Yeah.  We'll amend the
          23        agreement to require that.  See, currently they
          24        can amend -- right now it's tied to the lease, and
          25        they could amend their lease.  There's no
.                                                                    173
           1        requirement that they come to us if they amend the
           2        lease.
           3             We can amend our agreement to require
           4        that.  No problem.
           5             THE GOVERNOR:  And you would be okay with
           6        that?
           7             MR. HERNDON:  As long as it's not
           8        micromanaged, of course.
           9             THE GOVERNOR:  I want to micromanage a
          10        casino.  If we are giving up -- we are
          11        representing the public interest, and it's not
          12        just the City's.  It is the State.  Whoever said
          13        that, I think, is right on point.
          14             And this is -- a casino is not a public --
          15        I don't think it satisfies the test, and I'm
          16        opposed to them anyway; so as long as I'm
          17        here -- we tried to do it for the cruises and
          18        got slammed by the courts because we didn't
          19        have the legislative authority, but we do have
          20        the authority --
          21             MR. HERNDON:  To restrict it here.
          22             MS. ARMSTRONG:  In this instance.
          23             THE GOVERNOR:  -- to restrict it here.
          24             MS. ARMSTRONG:  Right.  Because it's
          25        proprietary interest totally.
.                                                                    174
           1             ATTORNEY GENERAL CRIST:  I have a question.
           2             THE GOVERNOR:  Yes.
           3             ATTORNEY GENERAL CRIST:  And maybe this
           4        gentleman is the best -- I was curious about the
           5        dredging.  What anticipated additional dredging do
           6        you foresee?
           7             MR. HERNDON:  I have our environmental
           8        consultants here.  We can get into specific
           9        detail.  The largest component -- and I'll just
          10        put input.  She may get into details.
          11             The largest component of the dredging we
          12        have to do is basically to remove spoil that
          13        was created when the ICW was originally cut,
          14        but it still lays underwater, and it creates a
          15        navigational hazard.
          16             It's currently a navigational hazard, and
          17        so that's the biggest component of it.  Christy
          18        Blush with Coastal Systems International can
          19        give you a little more detail.
          20             ATTORNEY GENERAL CRIST:  I mean, I agree with
          21        the Treasurer.  I drove by it yesterday.  I was
          22        down there making a speech and, on the way back to
          23        the airport, went right by the location on the
          24        causeway.
          25             You know, the cruise ships are very close,
.                                                                    175
           1        and I was just curious and what additional
           2        dredging would be necessary.
           3             MS. BLUSH:  Christy Blush with Coastal
           4        Systems International.  Within the existing marina
           5        basin, there are water depths ranging from about 6
           6        to 18 feet, and to accommodate the mega-yachts
           7        which have fairly significant drafts up to about
           8        maybe, you know, 20 feet plus or minus, there
           9        would be some additional depths required to
          10        accommodate those boat drafts, so we would be
          11        deepening the marina basin to a range of 18 to
          12        25 feet.
          13             CFO GALLAGHER:  Which is consistent with what
          14        is sitting in the turnaround basin and the
          15        entire --
          16             MS. BLUSH:  Correct.  There's essentially a
          17        shoal if you want to call it that.  It's not a
          18        natural shoal, but a shallow area between the
          19        bulkhead on the uplands and the turning basin.  It
          20        would be to connect that area and remove the
          21        shallow areas.
          22             CFO GALLAGHER:  And there's nothing on the
          23        bottom but muck.  I mean, there's no sandy bottom
          24        there.
          25             MS. BLUSH:  There is some sandy bottom, yes.
.                                                                    176
           1             CFO GALLAGHER:  Is there?
           2             MS. BLUSH:  Yes.
           3             CFO GALLAGHER:  With things growing?
           4             MS. BLUSH:  Yes.
           5             CFO GALLAGHER:  And what are we going to do
           6        to mitigate that?
           7             MS. BLUSH:  There are a range of resources.
           8        There are some sea grasses and some sponge
           9        communities that will be mitigated through a
          10        creation of higher quality communities in both
          11        off-site locations as well as we're doing some
          12        on-site mitigation to accommodate some specific
          13        habitats that are unique to the area.
          14             ATTORNEY GENERAL CRIST:  So that's already
          15        part of your plan to develop those others?
          16             MS. BLUSH:  That's correct.  We're in final
          17        negotiations with the regulatory agencies that
          18        were mentioned earlier with regard to that
          19        mitigation.
          20             ATTORNEY GENERAL CRIST:  Thank you.
          21             THE GOVERNOR:  What are the -- in terms of
          22        the public, the commitment -- you know, whatever
          23        the term is.  I apologize.  I'm getting a little
          24        tired.  The public amenity commitments, what
          25        guarantees do we have that they'll be met, and
.                                                                    177
           1        what are the recourses if they're not?
           2             MS. BILBERRY:  Lori Bilberry again.  There
           3        are various public amenities that have been
           4        included here are all included as an exhibit to
           5        the lease, and Flagstone is required to comply
           6        with all those items that are listed in the lease.
           7        If they do not, then it would become a default of
           8        the lease, and we could pursue remedies that way.
           9             The $1 million contribution is the one
          10        item that was subsequently added and has been
          11        voluntarily proffered by Flagstone.
          12             THE GOVERNOR:  $1 million?
          13             MS. BILBERRY:  Towards the developing and
          14        master planning the south end of Watson Island for
          15        a public open space.
          16             THE GOVERNOR:  So if the City -- the City
          17        would have the ability to pursue these, but the
          18        State wouldn't?
          19             MS. BILBERRY:  That is correct.  I mean, as a
          20        default, then you then could come after us, I'm
          21        sure.
          22             THE GOVERNOR:  How?
          23             MS. ARMSTRONG:  We have provisions, within
          24        the document, that provide time for them to cure
          25        it.  I mean, there's a cure-and-default period
.                                                                    178
           1        within the document, and if they ultimately do not
           2        cure whatever they don't provide, we impose the
           3        reverter, and we take the property back.
           4             THE GOVERNOR:  Take the property back?
           5             MS. ARMSTRONG:  Yeah.  And then we can run
           6        it, but that ultimately is what would happen if
           7        they don't provide what they have committed to
           8        provide in this document.
           9             CFO GALLAGHER:  And all condo unit owners
          10        have to move out, and we can all move in, right?
          11             MS. ARMSTRONG:  No, sir.  We would operate it
          12        as a business.  We'd put it up on the market.
          13        We'd get a new buyer, and we'd move forward.
          14        Whatever would happen, we have got provisions, in
          15        this document, to ensure that they move forward as
          16        they committed.
          17             THE GOVERNOR:  All right.  Any other
          18        discussion?
          19             (No response.)
          20             THE GOVERNOR:  General.
          21             ATTORNEY GENERAL CRIST:  I move the item.
          22             THE GOVERNOR:  Is there a second?  We need a
          23        second.
          24             CFO GALLAGHER:  I will second the item so we
          25        can have a little discussion up here.
.                                                                    179
           1             THE GOVERNOR:  All right.  There's
           2        discussion.  Why don't we ask Eva one more time to
           3        describe exactly what we're doing here, and then
           4        if anyone wants to talk, we can.
           5             MS. ARMSTRONG:  You are being asked to modify
           6        the deed restrictions for a parcel of land that's
           7        24.2 acres on Watson Island; to allow the City to
           8        lease the parcel to Flagstone; and there are
           9        easements, both temporary and permanent, over
          10        adjacent and nearby areas for the project with the
          11        same deed restrictions on which the modification
          12        would be required.
          13             That's literally what you're being asked
          14        to do, and for the public amenities -- and they
          15        are written into the document.  One of the
          16        speakers didn't think they were -- they are
          17        $1 million, at least $1 million to upgrade the
          18        south park to include a jogging path, security
          19        cameras, a parking area, and upgrading the
          20        Japanese Gardens.
          21             Sixty percent of the development must
          22        remain as open space including walkways, the
          23        waterfront promenade, and the Trustees will get
          24        15 percent of the total gross rental payments
          25        received by the City with no less than $300,000
.                                                                    180
           1        annually.
           2             THE GOVERNOR:  At the time of?
           3             MS. ARMSTRONG:  At the time they initiate the
           4        rentals, upon completion of construction.
           5             THE GOVERNOR:  Any other discussion?
           6             (No response.)
           7             THE GOVERNOR:  What's the vote that's
           8        required?
           9             MS. ARMSTRONG:  I think you need three.
          10             THE GOVERNOR:  Three votes?  Okay.  No more
          11        discussion, Treasurer?
          12             (No response.)
          13             THE GOVERNOR:  Then we'll have a vote.  All
          14        in favor say aye.
          15             (Affirmative response.)
          16             THE GOVERNOR:  All opposed?
          17             COMMISSIONER BRONSON:  No.
          18             THE GOVERNOR:  Motion carries.
          19             MS. ARMSTRONG:  Thank you, sir.
          20             THE GOVERNOR:  Thank you.
          21             MS. ARMSTRONG:  Item Number 15 is
          22        reaffirmation of existing delegations granted to
          23        the staff by the Board of Trustees.
          24             CFO GALLAGHER:  I move that we take between
          25        now and the August cabinet meeting to let our
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           1        staff work with Eva and her staff and actually the
           2        department to see what those delegations are and
           3        how they're applied and bring this item back in
           4        August.
           5             THE GOVERNOR:  There's a motion to defer this
           6        till August --
           7             ATTORNEY GENERAL CRIST:  Second.
           8             THE GOVERNOR:  -- and a second.  Without
           9        objection, the motion passes.
          10             MS. ARMSTRONG:  Okay.  And we have one more
          11        item.  It's Good Cause Item number 16.  The City
          12        of Miami is requesting an amendment to a waiver of
          13        a deed restriction for 58,887 square feet of
          14        submerged lands within the Biscayne Bay Aquatic
          15        Preserve.
          16             A portion of the lands in question were
          17        the subject of a Board of Trustees' 1949 deed
          18        that conveyed sovereignty lands bayward of the
          19        established bulkhead line that, also,
          20        restricted the use to municipal purposes.
          21             The Board of Trustees approved a waiver of
          22        deed restrictions in July of '81 for 29,000 of
          23        that 58,000 square feet.  The City leased the
          24        property which was later assigned to Grove
          25        Marine and Market, LTD, which is, also, known
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           1        as Monty's Restaurant and the current lessee of
           2        the property.
           3             The urgency and need for your
           4        consideration is that the sale of the
           5        restaurant is scheduled for early July, and the
           6        City doesn't want to lose a well-known and
           7        well-established business, and that it can ill
           8        afford to lose the revenue from the lease.
           9             The submerged land is being run as a
          10        commercial marina, ninety percent open to the
          11        public on a first-come-first-served basis.
          12        Portions being used are not within the area of
          13        the original waiver of deed restrictions.
          14             The City additionally thought that a 1974
          15        final judgment and condemnation, between the
          16        City and Grove Marine Properties, had given the
          17        City the property full and clear including
          18        waiver of the deed restrictions.
          19             It's a bit complicated, and I'm going to
          20        have somebody explain to you.  There are
          21        different parcels involved in this.  Why don't
          22        we have the City explain to you why they feel
          23        the good cause real quickly here.
          24             CFO GALLAGHER:  Eva, do we have speakers
          25        other than the City?
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           1             MS. ARMSTRONG:  Not as many, but we do have
           2        speakers.
           3             CFO GALLAGHER:  Not as many, so the answer is
           4        yes?
           5             MS. ARMSTRONG:  Yes.
           6             CITY MANAGER ARRIOLA:  Well, now that I did
           7        this once, after 57 years, I kind of lost my
           8        virginity, I can do it again, right?  Second time
           9        around is a little bit better.
          10             THE GOVERNOR:  Technical term.
          11             CITY MANAGER ARRIOLA:  Technical terms, of
          12        course.  Yes.
          13             Well, thank you for allowing me to do
          14        this, and we understand and appreciate your
          15        patience.  Our request is to amend a waiver of
          16        deed restrictions previously approved by the
          17        Board of Trustees to the International
          18        Improvement Trust Fund to include additional
          19        land that is within the submerged land area
          20        conveyed to the City by the State in 1949.
          21             Let me explain to you how the error was
          22        discovered.  The trustees previously approved a
          23        waiver of deed restriction for a portion of the
          24        submerged land leased by the City to Grove
          25        Marina Market.
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           1             During the refinancing of the
           2        leaseholder's interest, Grove Marina Market
           3        discovered that the dock that lies within the
           4        waiver area actually extends beyond the land
           5        legally described in the waiver.
           6             As a result, city staff contacted DEP to
           7        have the waiver amended to include the
           8        additional land.  During the time we were
           9        seeking the amendment waived, DEP's staff
          10        questioned the ownership of another portion of
          11        the submerged land lease to GMM commonly known
          12        as parcels 2 and A2.
          13             We advised DEP that we owned it pursuant
          14        to the condemnation of the land in 1974.
          15        Regardless, we asked our counsel to review the
          16        matter, and they concluded that the City owned
          17        it pursuant to the trust's deed and not
          18        pursuant to the condemnation case within a
          19        request with DEP to include parcels 2 and A2.
          20             Based upon our original conversation with
          21        DEP, we understand the amendment waiver would
          22        be approved administratively.  DEP staff and
          23        the City worked diligently to have the item
          24        executed prior to the end of June.
          25             This would allow Grove Marina to finalize
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           1        its closing on the sale of the leasehold
           2        interest in July.  On June 14th, we learned
           3        that the matter had to be presented to the
           4        Trustees for approval.
           5             To delay the hearing on this matter until
           6        August would create an extreme hardship on all
           7        the parties.  The business property that we're
           8        speaking about has suffered tremendous losses
           9        since 9/11 like all the restaurants in Coconut
          10        Grove.
          11             And we are now looking at the Grove Marina
          12        Market that is running -- that's got back taxes
          13        from 2002, 2003, and four months late on the
          14        payment.  We have a willing buyer, a willing
          15        buyer that's willing to come in and invest a
          16        lot of money and fix this property.
          17             The contract is based -- it expires in
          18        30 days from the date they completed the due
          19        diligence.  There are extensive costs in this
          20        due diligence process, and they're not going to
          21        go forward until we give them the approval.
          22             THE GOVERNOR:  All right.
          23             CITY MANAGER ARRIOLA:  Waiver approval
          24        results in hardship.  The contract for sale
          25        requires back rent and taxes to be paid by the
.                                                                    186
           1        buyer.  Delay in approving this item will result
           2        in due diligence not --
           3             THE COURT REPORTER:  You need to slow down,
           4        please.
           5             THE GOVERNOR:  Hold on.  There's no possible
           6        way that she can type that.
           7             CITY MANAGER ARRIOLA:  Okay.  Well, you said
           8        fast, so -- in other words, our choice is either
           9        we do this for them and let them sell the
          10        property, or the City takes over -- forecloses the
          11        property, takes it over, spends two years with an
          12        abandoned piece of property.
          13             By the time we do our fee and our -- it's
          14        just not making any -- it doesn't make any
          15        sense, and we lose a lot of money.
          16             THE GOVERNOR:  Okay.  Thank you.
          17             CFO GALLAGHER:  Okay, Governor.  I'll move
          18        Item 16.
          19             THE GOVERNOR:  Is there a second?
          20             (No response.)
          21             THE GOVERNOR:  How can I second it?
          22             CFO GALLAGHER:  Turn it over to the General.
          23             THE GOVERNOR:  I'm going to turn the chair
          24        over to you.  Oh, are you seconding?
          25             ATTORNEY GENERAL CRIST:  Second.
.                                                                    187
           1             THE GOVERNOR:  Okay.  There's a motion and a
           2        second.  Any other discussion?
           3             (No response.)
           4             THE GOVERNOR:  All in favor say aye.
           5             (Affirmative response.)
           6             THE GOVERNOR:  All opposed?
           7             COMMISSIONER BRONSON:  No.
           8             THE GOVERNOR:  You're a no?
           9             COMMISSIONER BRONSON:  I'm a no.
          10             THE GOVERNOR:  Okay.
          11             MS. ARMSTRONG:  That concludes our agenda,
          12        sir.
          13             THE GOVERNOR:  Thank you, Eva.  Tell Colleen
          14        that we look forward to seeing her in August.
.                                                                    188
           1             THE GOVERNOR:  Okay.  State Board of
           2        Administration.
           3             CFO GALLAGHER:  Motion on the minutes of
           4        May 25th.
           5             ATTORNEY GENERAL CRIST:  Second.
           6             MR. STIPANOVICH:  Item Number 2, approval of
           7        fiscal sufficiency of amount not exceeding
           8        $300 million State of Florida full faith in --
           9             THE GOVERNOR:  I'm sorry.  I apologize for
          10        calling it.  Thank you-all for coming.  There was
          11        a motion and a second on Item 1.  Without
          12        objection, the item passes.  Item 2.
          13             MR. STIPANOVICH:  Item 2, Governor, approval
          14        of fiscal sufficiency of an amount not exceeding
          15        $300 million State of Florida, full faith and
          16        credit, Department of Transportation right-of-way
          17        acquisition bridge construction bonds.
          18             CFO GALLAGHER:  Motion on 2.
          19             ATTORNEY GENERAL CRIST:  Second.
          20             THE GOVERNOR:  There's a motion and a second.
          21        Without objection, the item passes.
          22             MR. STIPANOVICH:  Item 3 requests approval of
          23        fiscal sufficiency of an amount not exceeding
          24        $21,495,000 --
          25             ATTORNEY GENERAL CRIST:  Motion.
.                                                                    189
           1             MR. STIPANOVICH:  -- State of Florida, full
           2        faith and credit, State of Florida of Education
           3        capital outlay bonds.
           4             CFO GALLAGHER:  Second.
           5             THE GOVERNOR:  Moved and seconded.  Without
           6        objection, the item passes.
           7             MR. STIPANOVICH:  Item 4 is requesting
           8        approval to file rules that we brought to you that
           9        we discussed in terms of the legislation that you
          10        signed, Governor.  This is rulemaking following up
          11        this legislation having to do with the defined
          12        contribution program as well as some --
          13             CFO GALLAGHER:  Motion on 4.
          14             ATTORNEY GENERAL CRIST:  Second.
          15             THE GOVERNOR:  Moved and seconded.  Without
          16        objection, the item passes.
          17             MR. STIPANOVICH:  Item 5 is the Florida
          18        Hurricane Catastrophe Fund requesting that the
          19        Trustees approve filing --
          20             CFO GALLAGHER:  Motion.
          21             ATTORNEY GENERAL CRIST:  Second.
          22             THE GOVERNOR:  We have a motion and a second.
          23        Without objection, the item passes.  Thank you,
          24        Coleman.
          25             MR. STIPANOVICH:  We've got one more item,
.                                                                    190
           1        Governor.  Item Number 6.
           2             THE GOVERNOR:  I was following the
           3        Treasurer's lead there.
           4             CFO GALLAGHER:  Well, I don't have a 6.  Oh,
           5        now I do have a 6.
           6             THE GOVERNOR:  What is Item 6?
           7             MR. STIPANOVICH:  Item 6 is the appointment
           8        of chair, an annual action that you take, an
           9        appointment of chair to the Florida Commission on
          10        Hurricane Protection and Methodology.  It is
          11        recommended that Bob Ricker be --
          12             CFO GALLAGHER:  Motion.
          13             ATTORNEY GENERAL CRIST:  Second.
          14             THE GOVERNOR:  Moved and seconded.  Without
          15        objection, the item passes.
          16             MR. STIPANOVICH:  Thank you.
          17             THE GOVERNOR:  Thank you.
          18             (Cabinet meeting concluded at 1:05 p.m.)
.                                                                    191
           1                     REPORTER'S CERTIFICATE
           5   STATE OF FLORIDA
           6   COUNTY OF ALACHUA
           8             I, NANCY P. VETTERICK, RPR, Court Reporter,
           9   certify that I was authorized to and did
          10   stenographically report the proceedings herein, and
          11   that the transcript is a true and complete record of my
          12   stenographic notes.
          13             I further certify that I am not a relative,
          14   employee, attorney or counsel of any of the parties,
          15   nor am I a relative or employee of any of the parties'
          16   attorney or counsel connected with the action, nor am I
          17   financially interested in the action.
          18             WITNESS my hand and official seal this 3rd
          19   day of July, 2004.
          21                       ______________________________
          22                       NANCY P. VETTERICK, RPR
          22                       2894-A REMINGTON GREEN LANE
          23                       TALLAHASSEE, FL  32608
          23                       (850) 878-2221