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          1
 
          2                  T H E   C A B I N E T
 
          3             S T A T E   O F   F L O R I D A
 
          4
                                 Representing:
          5
                          STATE BOARD OF ADMINISTRATION
          6                  DIVISION OF BOND FINANCE
                              DEPARTMENT OF REVENUE
          7                  STATE BOARD OF EDUCATION
                           ADMINISTRATION COMMISSION
          8                  FLORIDA LAND AND WATER
                             ADJUDICATORY COMMISSION
          9                  TRUSTEES OF THE INTERNAL
                              IMPROVEMENT TRUST FUND
         10
 
         11            The above agencies came to be heard before
              THE FLORIDA CABINET, Honorable Governor Chiles
         12   presiding, in the Cabinet Meeting Room, LL-03,
              The Capitol, Tallahassee, Florida, on Tuesday,
         13   July 23, 1996, commencing at approximately 9:55 a.m.
 
         14
 
         15
 
         16                       Reported by:
 
         17                    LAURIE L. GILBERT
                        Registered Professional Reporter
         18                 Certified Court Reporter
                            Notary Public in and for
         19              the State of Florida at Large
 
         20
 
         21
 
         22
 
         23            ACCURATE STENOTYPE REPORTERS, INC.
                                100 SALEM COURT
         24                TALLAHASSEE, FLORIDA 32301
                                  904/878-2221
         25                      1-800/934-9090
 
 
 
                                                              2
 
          1   APPEARANCES:
 
          2            Representing the Florida Cabinet:
 
          3            LAWTON CHILES
                       Governor
          4
                       BOB CRAWFORD
          5            Commissioner of Agriculture
 
          6            BOB MILLIGAN
                       Comptroller
          7
                       SANDRA B. MORTHAM
          8            Secretary of State
 
          9            BOB BUTTERWORTH
                       Attorney General
         10
                       BILL NELSON
         11            Treasurer
 
         12            FRANK T. BROGAN
                       Commissioner of Education
         13
                                      *
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
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                        ACCURATE STENOTYPE REPORTERS, INC.
 
                                  July 23, 1996
                                                              3
 
          1                        I N D E X
 
          2   ITEM                  ACTION                PAGE
 
          3   STATE BOARD OF ADMINISTRATION:
              (Presented by Barbara Jarriel,
          4       Acting Executive Director)
 
          5    1                  Approved                  6
               2                  Approved                  7
          6    3                  Approved                  7
               4                  Approved                  8
          7    5                  Approved                  8
               6                  Approved                  8
          8    7                  Approved                  9
               8                  Approved                  9
          9    9                  Approved                 10
              10                  Approved                 11
         10   11                  Approved                 16
 
         11   DIVISION OF BOND FINANCE:
              (Presented by J. Ben Watkins, III,
         12       Director)
 
         13    1                  Approved                 17
               2                  Approved                 17
         14    3                  Approved                 18
               4                  Approved                 18
         15    5                  Approved                 18
               6                  Approved                 19
         16    7                  Approved                 19
 
         17   DEPARTMENT OF REVENUE:
              (Presented by L.H. Fuchs,
         18       Executive Director)
 
         19    1                  Approved                 21
               2                  Approved                 21
         20
 
         21
 
         22
 
         23
 
         24
 
         25

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                                  July 23, 1996
                                                              4
 
          1                         I N D E X
                                   (Continued)
          2
              ITEM                  ACTION                PAGE
          3
              STATE BOARD OF EDUCATION:
          4   (Presented by Robert L. Bedford, Ph.D.,
                  Deputy Commissioner)
          5
               1                  Approved                 23
          6    2                  Approved                 24
               3                  Approved                 25
          7    4                  Approved                 25
               5                  Approved                 25
          8    6                  Approved                 26
               7                  Deferred                 26
          9    8                  Approved                 26
               9                  Approved                 27
         10   10                  Approved                 28
              11                  Approved                 28
         11   12                  Approved                 28
              13                  Approved                 29
         12   14                  Approved                 29
              15                  Approved                 29
         13   16                  Approved                 39
 
         14   ADMINISTRATION COMMISSION:
              (Presented by Robert B. Bradley, Ph.D.,
         15       Secretary)
 
         16    1                  Approved                 40
               2                  Approved                 40
         17    3                  Approved                 41
               4                  Approved                 41
         18    5                  Approved                 41
               6                  Approved                196
         19
              FLORIDA LAND AND WATER ADJUDICATORY COMMISSION:
         20   (Presented by Robert B. Bradley, Ph.D.,
                  Secretary)
         21
               1                  Approved                 43
         22    2                  Approved                 43
               3                  Approved                 44
         23
 
         24
 
         25

                        ACCURATE STENOTYPE REPORTERS, INC.
 
                                  July 23, 1996
                                                              5
 
          1                         I N D E X
                                   (Continued)
          2
              ITEM                  ACTION                PAGE
          3
              BOARD OF TRUSTEES,
          4   INTERNAL IMPROVEMENT
              TRUST FUND:
          5   (Presented by Virginia B. Wetherell,
                  Secretary)
          6
               1                  Approved                 45
          7    2                  Approved                 45
               3                  Approved                 46
          8    4                  Approved                 46
               5                  Approved                 46
          9    6                  Approved                 46
               7                  Approved                 47
         10    8                  Approved                 47
               9                  Approved                 72
         11   10                  Deferred                 76
              11                  Approved                 77
         12   12                  Approved                 77
              13                  Deferred                133
         13   14                  Approved                133
              15                  Approved                156
         14
 
         15            CERTIFICATE OF REPORTER            197
 
         16                           *
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
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                        ACCURATE STENOTYPE REPORTERS, INC.
 
 
                                                              6
 
          1                  P R O C E E D I N G S
 
          2            (The agenda items commenced at 10:41 a.m.)
 
          3            GOVERNOR CHILES:  And today is the last
 
          4       Cabinet meeting for Carmelia Bugbee.  She is
 
          5       moving over to my scheduling office.
 
          6            I want to thank Carmelia for all of her
 
          7       work in helping to make these meetings go as
 
          8       smoothly, and for taking care of many details
 
          9       that Danny and Curtis can't handle.  I know the
 
         10       other Cabinet members and the staff are going to
 
         11       miss her assistance with all of the projects.
 
         12            Maybe we won't have as many resolutions
 
         13       now.  She was too accommodating on that I think.
 
         14            But we want to thank you very much, and
 
         15       good luck to you.
 
         16            State Board of Administration.
 
         17            MS. JARRIEL:  Good morning.
 
         18            The first item we have this morning is
 
         19       approval of the meetings -- approval of the
 
         20       minutes of the meeting held on July 9th, 1996.
 
         21            TREASURER NELSON:  I move it.
 
         22            COMPTROLLER MILLIGAN:  And second.
 
         23            GOVERNOR CHILES:  It's been moved and
 
         24       seconded.
 
         25            Without objection, that's approved.

                        ACCURATE STENOTYPE REPORTERS, INC.
 

                          STATE BOARD OF ADMINISTRATION
                                  July 23, 1996
                                                              7
 
          1            MS. JARRIEL:  The next item is a
 
          2       recommendation to approve fiscal sufficiency,
 
          3       not to exceed six million six hundred and fifty
 
          4       thousand Florida Housing Finance Agency Revenue
 
          5       Bonds, Vizcaya Villas project.
 
          6            TREASURER NELSON:  I move it.
 
          7            COMPTROLLER MILLIGAN:  Second.
 
          8            GOVERNOR CHILES:  Moved and seconded.
 
          9            Without objection, Item 2 is approved.
 
         10            MS. JARRIEL:  Next item is also a
 
         11       recommendation to approve fiscal sufficiency not
 
         12       to exceed 19 million Florida Housing
 
         13       Finance Agency revenue bonds, Center Court
 
         14       Apartments project.
 
         15            TREASURER NELSON:  Move it.
 
         16            COMPTROLLER MILLIGAN:  Second.
 
         17            GOVERNOR CHILES:  Moved and seconded.
 
         18            Without objection, that's approved.
 
         19            MS. JARRIEL:  Next, a recommendation to
 
         20       approve fiscal sufficiency not to exceed
 
         21       four million five hundred and thirty thousand,
 
         22       Florida Housing Finance Agency Revenue Bonds,
 
         23       Mystic Woods, Phase II Apartments projects.
 
         24            TREASURER NELSON:  Move it.
 
         25            COMPTROLLER MILLIGAN:  Second.

                        ACCURATE STENOTYPE REPORTERS, INC.
 

                          STATE BOARD OF ADMINISTRATION
                                  July 23, 1996
                                                              8
 
          1            GOVERNOR CHILES:  Moved and seconded.
 
          2            Without objection, Item 4 is approved.
 
          3            MS. JARRIEL:  Item number 5, recommendation
 
          4       to approve fiscal sufficiency not to exceed
 
          5       two hundred and fifty million State of Florida
 
          6       State Board of Education PECO bonds, Series A.
 
          7            COMPTROLLER MILLIGAN:  Motion.
 
          8            TREASURER NELSON:  Second.
 
          9            GOVERNOR CHILES:  Motion and second.
 
         10            Without objection, the item is approved.
 
         11            MS. JARRIEL:  Item number 6, a
 
         12       recommendation to approve fiscal sufficiency not
 
         13       to exceed seven million eight hundred thousand
 
         14       Florida Housing Finance Agency revenue bonds,
 
         15       The Landings at Sea Forest Apartments project.
 
         16            COMPTROLLER MILLIGAN:  Motion.
 
         17            TREASURER NELSON:  Second.
 
         18            GOVERNOR CHILES:  Moved and seconded.
 
         19            Without objection, it's approved.
 
         20            MS. JARRIEL:  Item number 7, a
 
         21       recommendation to approve fiscal sufficiency not
 
         22       to exceed eleven million one hundred and five
 
         23       thousand Florida Housing Finance Agency Revenue
 
         24       Bonds, Leigh Meadows Apartments project.
 
         25            COMPTROLLER MILLIGAN:  Motion.

                        ACCURATE STENOTYPE REPORTERS, INC.
 

                          STATE BOARD OF ADMINISTRATION
                                  July 23, 1996
                                                              9
 
          1            TREASURER NELSON:  Second.
 
          2            GOVERNOR CHILES:  Moved and seconded.
 
          3            Without objection, it's approved.
 
          4            MS. JARRIEL:  Item number 8, a
 
          5       recommendation to approve fiscal sufficiency not
 
          6       to exceed twelve million five hundred thousand
 
          7       Florida Housing Finance Agency Revenue Bonds,
 
          8       Stoddert Arms project.
 
          9            COMPTROLLER MILLIGAN:  Motion.
 
         10            TREASURER NELSON:  Second.
 
         11            GOVERNOR CHILES:  Moved and --
 
         12            TREASURER NELSON:  Second.
 
         13            GOVERNOR CHILES:  -- seconded.
 
         14            Without objection, it's approved.
 
         15            MS. JARRIEL:  Item number 9 relates to the
 
         16       Florida Hurricane Catastrophe Fund.  We request
 
         17       that the Trustees adopt a resolution which
 
         18       determines that the issuance of bonds will
 
         19       maximize our ability to meet our obligations,
 
         20       and to approve the form, and authorize the
 
         21       execution of a pledge and security agreement for
 
         22       the issuance of said bonds.
 
         23            TREASURER NELSON:  I move it.
 
         24            And, Governor, I might just say that the
 
         25       Florida Hurricane Catastrophe Fund now has the

                        ACCURATE STENOTYPE REPORTERS, INC.
 

                          STATE BOARD OF ADMINISTRATION
                                  July 23, 1996
                                                              10
 
          1       capability of bonding about $5 billion.  And,
 
          2       of course, a bond issue of that magnitude,
 
          3       you're talking about a huge draw on the
 
          4       financial markets.
 
          5            And what they're trying to do is to get it
 
          6       in line so that they could go quickly into the
 
          7       market and float those bonds if we had a big
 
          8       catastrophe.
 
          9            So they're doing the right thing here.
 
         10            GOVERNOR CHILES:  There's a motion.
 
         11            COMPTROLLER MILLIGAN:  And second.
 
         12            GOVERNOR CHILES:  Second.
 
         13            Without objection, that's approved.
 
         14            You're not saying that you want to use
 
         15       those right now.
 
         16            TREASURER NELSON:  No, I don't want to use
 
         17       them at all.
 
         18            As a matter of fact, we've got a cushion
 
         19       now, by the end of the year, we'll have
 
         20       $1.4 billion in the trust fund.
 
         21            GOVERNOR CHILES:  Thank you.
 
         22            You're not bragging.
 
         23            TREASURER NELSON:  I'm just saying, I'm
 
         24       thankful we have a cushion.  I don't want to use
 
         25       it.  I want that thing to keep building and

                        ACCURATE STENOTYPE REPORTERS, INC.
 

                          STATE BOARD OF ADMINISTRATION
                                  July 23, 1996
                                                              11
 
          1       building and building, and not to draw on it.
 
          2            GOVERNOR CHILES:  Absolutely.
 
          3            MS. JARRIEL:  Item number 10, the Acting
 
          4       Executive Director submits for your review and
 
          5       approval, Investment Performance and Fund
 
          6       Balance Analyses Reports for the month of May
 
          7       and June.
 
          8            COMPTROLLER MILLIGAN:  Motion.
 
          9            TREASURER NELSON:  Second.
 
         10            GOVERNOR CHILES:  Moved and seconded.
 
         11            Without objection, it's approved.
 
         12            MS. JARRIEL:  Item number 11 relates to the
 
         13       Florida Hurricane Catastrophe Fund Finance
 
         14       Corporation.
 
         15            Under Statute 215.555(6), the Florida
 
         16       Hurricane Catastrophe Fund Finance Corporation
 
         17       was created.  Since the members of the State
 
         18       Board of Administration are named under this
 
         19       statute as members of the Board of Directors for
 
         20       this corporation, the organizational --
 
         21            (Commissioner Crawford exited the room.)
 
         22            MS. JARRIEL:  -- meeting of this
 
         23       corporation is being held in conjunction with
 
         24       the SBA agenda.
 
         25            At this time, I would like to introduce

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                          STATE BOARD OF ADMINISTRATION
                                  July 23, 1996
                                                              12
 
          1       Jack Nicholson, the Chief Operating Officer of
 
          2       the Florida Hurricane Catastrophe Fund; and
 
          3       Ben Watkins, Director of the Division of
 
          4       Bond Finance.  These two individuals comprise
 
          5       the remainder of the Board of Directors for this
 
          6       corporation.
 
          7            At this time, this concludes the SBA
 
          8       agenda.
 
          9            (The State Board of Administration Agenda
 
         10       was concluded.)
 
         11                             *
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
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                        ACCURATE STENOTYPE REPORTERS, INC.
 

                          STATE BOARD OF ADMINISTRATION
                                  July 23, 1996
                                                              13
 
          1            MS. JARRIEL:  And, Governor, we ask that
 
          2       you call the organizational meeting of this
 
          3       Financing Corporation to order.
 
          4            GOVERNOR CHILES:  Meeting is called to
 
          5       order.
 
          6            MR. NICHOLSON:  Governor, let me provide a
 
          7       little background.  As Barbara mentioned,
 
          8       Committee Substitute for Senate Bill 2314
 
          9       created section 215.555(6)(c) of
 
         10       Florida Statutes, which creates the Florida
 
         11       Hurricane Catastrophe Fund Finance Corporation.
 
         12            It's a public benefit corporation for the
 
         13       purpose of facilitating the issuance of bonds if
 
         14       financing is needed after --
 
         15            (Commissioner Crawford entered the room.)
 
         16            MR. NICHOLSON:  -- a catastrophic
 
         17       hurricane.  The Directors of the Corporation
 
         18       include the Governor, or his designee; the
 
         19       Comptroller, or his designee; or the
 
         20       Treasurer -- and the Treasurer and his
 
         21       designee.  In addition, the Director of the
 
         22       Division of Bond Finance of the SBA,
 
         23       Ben Watkins; and the Chief Operating Officer of
 
         24       the Florida Hurricane Catastrophe Fund, the
 
         25       position which I hold.

                        ACCURATE STENOTYPE REPORTERS, INC.
 

                          STATE BOARD OF ADMINISTRATION
                                  July 23, 1996
                                                              14
 
          1            Further, the statute requires the issuance
 
          2       of bonds by the corporation to be validated at
 
          3       the Florida Supreme Court.
 
          4            The Florida Hurricane Catastrophe Fund
 
          5       Finance Corporation will allow us to effect --
 
          6       effectively self register bonds, and be in a
 
          7       position to respond quicker following a major --
 
          8            (Secretary Mortham exited the room.)
 
          9            MR. NICHOLSON:  -- hurricane catastrophe,
 
         10       and avoid unnecessary costs and expenses.  The
 
         11       bonds would only be issued if assets of the
 
         12       Cat Fund are inadequate to pay claims.  And as
 
         13       Commissioner Nelson points out, that at year-end
 
         14       1996, we anticipate having approximately
 
         15       $1.4 billion in cash available to pay claims.
 
         16            The purpose of this meeting is to conduct
 
         17       an organizational meeting, and the agenda items
 
         18       are laid out in the agenda that you have, Items
 
         19       2A through F.  These items help us to legally
 
         20       set up the corporation, and to begin the
 
         21       validation process.
 
         22            They include the following:  One, the
 
         23       election of officers; two, the approval of the
 
         24       Articles of Incorporation and the Bylaws, as
 
         25       well as the corporate seal.

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                          STATE BOARD OF ADMINISTRATION
                                  July 23, 1996
                                                              15
 
          1            We also ask that you approve a resolution
 
          2       that authorizes the issuance of up to
 
          3       $10 billion of bonds.
 
          4            The resolution also approves a master trust
 
          5       indenture, approves a pledge and security
 
          6       agreement, and authorizes the validation of the
 
          7       bonds.
 
          8            It also -- also included in the minutes are
 
          9       an -- is an item that directs the Secretary to
 
         10       set out all actions in the minutes of the
 
         11       corporation.
 
         12            What we need is a motion to approve all
 
         13       agenda items under Items 2A through F.
 
         14            TREASURER NELSON:  I move it.
 
         15            GOVERNOR CHILES:  All right.  Agenda Items
 
         16       A, B, C, D, E, and F have been moved.
 
         17            Is there discussion?
 
         18            COMPTROLLER MILLIGAN:  The only comment
 
         19       I'll make, Governor --
 
         20            GOVERNOR CHILES:  Yes.
 
         21            COMPTROLLER MILLIGAN:  -- is that I think
 
         22       this process all is to be a model for efficiency
 
         23       and effectiveness.  They have really done a
 
         24       terrific job in pulling this together, and I
 
         25       second the motion.

                        ACCURATE STENOTYPE REPORTERS, INC.
 

                          STATE BOARD OF ADMINISTRATION
                                  July 23, 1996
                                                              16
 
          1            GOVERNOR CHILES:  I think that's very
 
          2       true.  I think they've done an outstanding job
 
          3       on that.
 
          4            All right.  It's been moved and seconded.
 
          5            Without objection A, B, C, D, E, and F are
 
          6       approved.
 
          7            MR. NICHOLSON:  Thank you.
 
          8            GOVERNOR CHILES:  Thank you.
 
          9            There being no further business, is there a
 
         10       motion to adjourn the meeting of the --
 
         11       organizational meeting of the Florida Hurricane
 
         12       Catastrophe Fund --
 
         13            TREASURER NELSON:  I move it.
 
         14            GOVERNOR CHILES:  It's been moved and
 
         15       seconded.
 
         16            And without objection, that's approved.
 
         17       Meeting is adjourned.
 
         18            MR. NICHOLSON:  Thank you.
 
         19            GOVERNOR CHILES:  Thank you, sir.
 
         20            (The State Board of Administration Florida
 
         21       Hurricane Catastrophe Fund Finance Corporation
 
         22       Agenda was concluded.)
 
         23                             *
 
         24
 
         25

                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE
                                  July 23, 1996
                                                              17
 
          1            GOVERNOR CHILES:  Division of Bond Finance.
 
          2            MR. WATKINS:  Item 1 is approval of the
 
          3       minutes of the July 9th meeting.
 
          4            COMMISSIONER BROGAN:  Move approval.
 
          5            COMMISSIONER CRAWFORD:  Second.
 
          6            GOVERNOR CHILES:  Moved and seconded.
 
          7            Without objection, they're approved.
 
          8            MR. WATKINS:  Item 2 is a resolution that
 
          9       had previously been deferred, which authorizes
 
         10       the use of unspent proceeds in the Facilities
 
         11       Management Program for renovations to the
 
         12       Knott Building.
 
         13            COMMISSIONER BROGAN:  Move approval.
 
         14            COMMISSIONER CRAWFORD:  Second.
 
         15            GOVERNOR CHILES:  Moved and seconded.
 
         16            Without objection, it's approved.
 
         17            MR. WATKINS:  Item number 3 is a resolution
 
         18       which does two things:  It authorizes the
 
         19       issuance of the 1996-97 fiscal year
 
         20       appropriation for the PECO program; and
 
         21       secondly, it authorizes the competitive --
 
         22       issuance and competitive sale of 250 million of
 
         23       the $450 million appropriation.
 
         24            COMMISSIONER BROGAN:  Move approval,
 
         25       Governor.

                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE
                                  July 23, 1996
                                                              18
 
          1            SECRETARY MORTHAM:  Move approval.
 
          2            GOVERNOR CHILES:  Moved and seconded.
 
          3            Without objection, it's approved.
 
          4            MR. WATKINS:  Item 4 is adoption of a
 
          5       resolution authorizing the issuance of
 
          6       thirteen million three hundred and eighty-five
 
          7       thousand Board of Regents Student Housing
 
          8       Facility Revenue Bonds for the renovation of two
 
          9       student housing facilities at Florida State
 
         10       University.
 
         11            SECRETARY MORTHAM:  Move approval.
 
         12            COMMISSIONER BROGAN:  Second.
 
         13            GOVERNOR CHILES:  Moved and seconded.
 
         14            Without objection, it's approved.
 
         15            MR. WATKINS:  Item number 5 is adoption of
 
         16       resolutions authorizing the negotiated sale of
 
         17       several multifamily housing revenue bond issues
 
         18       enumerated in Items (A) through (F) on behalf of
 
         19       the Florida Housing Finance Agency.
 
         20            COMMISSIONER BROGAN:  I'll move approval of
 
         21       Items 5 (A) through (F), Governor.
 
         22            SECRETARY MORTHAM:  Second.
 
         23            GOVERNOR CHILES:  Moved and seconded on
 
         24       Items 5 (A) through (F).
 
         25            Without objection, it's approved.

                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE
                                  July 23, 1996
                                                              19
 
          1            MR. WATKINS:  Item number 6 is a report of
 
          2       award of one million nine hundred and
 
          3       eighty-five -- nine hundred and eighty thousand
 
          4       Student Housing Facility Revenue Bonds on behalf
 
          5       of the University of South Florida for the new
 
          6       college campus.  The bids were received on
 
          7       July 2nd at Division of Bond Finance.  We
 
          8       accepted the low bid at a true interest cost
 
          9       rate of 5.76 percent.
 
         10            SECRETARY MORTHAM:  Move approval.
 
         11            COMMISSIONER CRAWFORD:  Second.
 
         12            COMMISSIONER BROGAN:  Second.
 
         13            GOVERNOR CHILES:  Moved and seconded.
 
         14            Without objection, it's approved.
 
         15            MR. WATKINS:  Item number 7 is a report of
 
         16       award of fourteen million five hundred thousand
 
         17       Florida Housing Finance Agency transactions,
 
         18       which were sold at a weekly variable interest
 
         19       rate of 2.75 percent.
 
         20            COMMISSIONER BROGAN:  Move it.
 
         21            COMPTROLLER MILLIGAN:  Second.
 
         22            GOVERNOR CHILES:  Moved and seconded.
 
         23            Without objection, that's approved.
 
         24
 
         25

                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE
                                  July 23, 1996
                                                              20
 
          1            (The Division of Bond Finance Agenda was
 
          2       concluded.)
 
          3                             *
 
          4
 
          5
 
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          9
 
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                        ACCURATE STENOTYPE REPORTERS, INC.
 

                              DEPARTMENT OF REVENUE
                                  July 23, 1996
                                                              21
 
          1            GOVERNOR CHILES:  Department of Revenue.
 
          2            MR. FUCHS:  Item 1 is a request for
 
          3       approval of the minutes of the June 25th
 
          4       meeting.
 
          5            COMMISSIONER BROGAN:  So move.
 
          6            GOVERNOR CHILES:  Moved and seconded.
 
          7            Without objection, it's approved.
 
          8            MR. FUCHS:  Item 2 is a request for
 
          9       approval to file with Secretary of State
 
         10       proposed amendments to child support enforcement
 
         11       Rules 12E-1.004, and 12E-1.006.
 
         12            SECRETARY MORTHAM:  Move approval.
 
         13            COMMISSIONER BROGAN:  Second.
 
         14            GOVERNOR CHILES:  Moved and seconded.
 
         15            Without objection, it's approved.
 
         16            MR. FUCHS:  And with your permission,
 
         17       Governor and members, today is the last Cabinet
 
         18       meeting of Lorraine Dempsey Yeomans, who has
 
         19       served the people of the State of Florida the
 
         20       last ten years as a staff person in the House of
 
         21       Representatives, an Assistant Attorney General,
 
         22       and as the Legal Services -- excuse me --
 
         23       Legal Staff Director for the Senate Finance and
 
         24       Tax Committee prior to being Legislative and
 
         25       Cabinet Affairs Director for the

                        ACCURATE STENOTYPE REPORTERS, INC.
 

                              DEPARTMENT OF REVENUE
                                  July 23, 1996
                                                              22
 
          1       Department of Revenue.
 
          2            With your indulgence, could she please come
 
          3       forward with a picture --
 
          4            GOVERNOR CHILES:  Certainly.
 
          5            MR. FUCHS:  -- for a picture?
 
          6            Thank you.
 
          7            She didn't know about this.
 
          8            (The Department of Revenue Agenda was
 
          9       concluded.)
 
         10                             *
 
         11
 
         12
 
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         25

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              23
 
          1            GOVERNOR CHILES:  State Board of Education.
 
          2            (Treasurer Nelson exited the room.)
 
          3            DR. BEDFORD:  Governor Chiles, Members of
 
          4       the State Board of Education, good morning.
 
          5            Item 1, proposed contract for the
 
          6       administration, Florida Writing Assessment
 
          7       Program for 1996 through 1999 to National
 
          8       Computer Systems, Inc.
 
          9            COMMISSIONER BROGAN:  Move approval.
 
         10            SECRETARY MORTHAM:  Second.
 
         11            GOVERNOR CHILES:  Moved and seconded.
 
         12            Without objection, it's approved.
 
         13            SECRETARY MORTHAM:  Governor --
 
         14            GOVERNOR CHILES:  Yes, ma'am.
 
         15            SECRETARY MORTHAM:  -- before we go
 
         16       forward, I'd just like to congratulate DOE
 
         17       and -- and Commissioner Brogan and the staff for
 
         18       a reduction and savings of $1.3 million.
 
         19       I think that's pretty significant.
 
         20            GOVERNOR CHILES:  It is significant.
 
         21            DR. BEDFORD:  Thank you.
 
         22            COMMISSIONER BROGAN:  Thank you, Secretary.
 
         23            DR. BEDFORD:  Item number 2, adoption of
 
         24       High Priority Location Schools for 1996-1997.
 
         25            COMMISSIONER BROGAN:  Move approval.

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              24
 
          1            SECRETARY MORTHAM:  Second.
 
          2            COMMISSIONER CRAWFORD:  Second.
 
          3            GOVERNOR CHILES:  Moved and seconded.
 
          4            Without objection, it's approved.
 
          5            DR. BEDFORD:  Item number 3, approval of
 
          6       Division Directors for the Department of
 
          7       Education.  I'm very pleased to present for your
 
          8       approval the four individuals who hold Division
 
          9       Director status within the Department of
 
         10       Education.
 
         11            Today in our audience we have two of our
 
         12       Division Directors, and I would like to have
 
         13       them stand as I present them to you.
 
         14            We have Mrs. Betty Coxe, Director of the
 
         15       Division of Human Resource Development.  And
 
         16       with her, we have Dr. David Mosrie, Director of
 
         17       the Division of Public Schools.
 
         18            Absent today, and unable to be here,
 
         19       Mr. David Rodriguez, Director of the Division of
 
         20       Administration; and Mr. Joe Stephens, Director
 
         21       of the Division of Applied Technology and Adult
 
         22       Education.
 
         23            SECRETARY MORTHAM:  Move approval.
 
         24            COMMISSIONER BROGAN:  Move approval without
 
         25       a picture, Governor.

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              25
 
          1            SECRETARY MORTHAM:  Second.
 
          2            GOVERNOR CHILES:  All right.  It's been
 
          3       moved and seconded.
 
          4            Without objection, it's approved.
 
          5            DR. BEDFORD:  Item number 4, adoption of
 
          6       the Eleventh Supplemental Authorizing Resolution
 
          7       to the Master Authorizing Resolution adopted
 
          8       July 21st, 1992; and the Resolution authorizing
 
          9       the Public Competitive Sale and Delivery of not
 
         10       to exceed $250 million of State of Florida Full
 
         11       Faith and Credit State Board of Education
 
         12       Public Education Capital Outlay Bonds.
 
         13            COMMISSIONER BROGAN:  Move approval,
 
         14       Governor.
 
         15            SECRETARY MORTHAM:  Second.
 
         16            GOVERNOR CHILES:  Moved and seconded.
 
         17            Without objection, it's approved.
 
         18            DR. BEDFORD:  Number 5, approval of the
 
         19       1996-97 College Outreach Program Funding.
 
         20            COMMISSIONER BROGAN:  Move approval.
 
         21            SECRETARY MORTHAM:  Second.
 
         22            COMMISSIONER CRAWFORD:  Second.
 
         23            GOVERNOR CHILES:  Moved and seconded.
 
         24            Without objection, that's approved.
 
         25            DR. BEDFORD:  Item 6, approval of the

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              26
 
          1       guidelines for Innovative Practices Grants.
 
          2            COMMISSIONER BROGAN:  Move approval.
 
          3            SECRETARY MORTHAM:  Second.
 
          4            GOVERNOR CHILES:  Moved and seconded.
 
          5            Without objection, that's approved.
 
          6            DR. BEDFORD:  Item 7 we wish to defer.
 
          7            SECRETARY MORTHAM:  Move deferral.
 
          8            DR. BEDFORD:  Motion to --
 
          9            COMMISSIONER BROGAN:  Second.
 
         10            GOVERNOR CHILES:  Moved and seconded on a
 
         11       motion to defer.
 
         12            And without objection, it's deferred.
 
         13            DR. BEDFORD:  Item 8, Rule 6A-1.09982,
 
         14       Amendment:  Reporting Requirements for School
 
         15       Improvement and Accountability.
 
         16            COMMISSIONER BROGAN:  Move approval.
 
         17            GOVERNOR CHILES:  Moved and --
 
         18            SECRETARY MORTHAM:  Second.
 
         19            GOVERNOR CHILES:  -- seconded.
 
         20            Without objection, it's approved.
 
         21            DR. BEDFORD:  Item 9, 10 --
 
         22            SECRETARY MORTHAM:  Ah.
 
         23            DR. BEDFORD:  Whoops.  Pardon.
 
         24            SECRETARY MORTHAM:  Governor --
 
         25            GOVERNOR CHILES:  Yes, ma'am.

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              27
 
          1            SECRETARY MORTHAM:  -- just on that
 
          2       particular rule, I'd just like to ask the
 
          3       Accountability Commission, and also DOE to work
 
          4       towards individual student achievement, as
 
          5       opposed to the masses.  As a parent, I think
 
          6       that parents are concerned about their
 
          7       individual student; and hopefully, that's what
 
          8       we would ultimately be working toward as well,
 
          9       and I'm sure you are.
 
         10            COMMISSIONER BROGAN:  Yes, ma'am.
 
         11            DR. BEDFORD:  Thank you.
 
         12            GOVERNOR CHILES:  All right.
 
         13            DR. BEDFORD:  Items 9, 10, and 11 are
 
         14       Division of Community Colleges.
 
         15            Item 9, 6A-14.0247, Amendment:  Powers and
 
         16       Duties of the Board of Trustees.
 
         17            SECRETARY MORTHAM:  Move approval.
 
         18            COMMISSIONER BROGAN:  Second.
 
         19            GOVERNOR CHILES:  Moved and seconded.
 
         20            Without objection, it's approved.
 
         21            DR. BEDFORD:  Item 10, 6A-14.0301,
 
         22       Withdrawal and Forgiveness.
 
         23            SECRETARY MORTHAM:  Move approval.
 
         24            COMMISSIONER BROGAN:  Move approval.
 
         25            GOVERNOR CHILES:  Moved and seconded.

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              28
 
          1            Without objection, it's approved.
 
          2            DR. BEDFORD:  Item 11, Chapter 6A-14,
 
          3       Repeals.
 
          4            COMMISSIONER BROGAN:  Move approval.
 
          5            SECRETARY MORTHAM:  Second.
 
          6            GOVERNOR CHILES:  Moved and seconded.
 
          7            Without objection, it's approved.
 
          8            DR. BEDFORD:  Item 12, 13, 14 are items of
 
          9       the State University System.
 
         10            Item 12, 6C-6.0091, Repeal:  Spoken English
 
         11       Language Competence of Graduate Students
 
         12       Involved in Classroom Instruction.
 
         13            COMMISSIONER BROGAN:  Governor, I'll move
 
         14       approval.  And just to let you know, because it
 
         15       may look a little ominous, that simply moves two
 
         16       rules into one rule, covers undergraduate and
 
         17       graduate instructors in one rule instead of the
 
         18       two that it used to.
 
         19            SECRETARY MORTHAM:  Second.
 
         20            GOVERNOR CHILES:  Moved and seconded.
 
         21            Without objection, it's approved.
 
         22            DR. BEDFORD:  Item 13, 6C-ER96-1, an
 
         23       Emergency Rule:  Tuition, Fee Schedule, and
 
         24       Percentage of Cost.
 
         25            COMMISSIONER BROGAN:  Move approval.

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              29
 
          1            SECRETARY MORTHAM:  Second.
 
          2            GOVERNOR CHILES:  Moved and seconded.
 
          3            Without objection, it's approved.
 
          4            DR. BEDFORD:  Item 14, 6C-7.001,
 
          5       Amendment:  Tuition, Fee Schedule, and
 
          6       Percentage of Cost.
 
          7            COMMISSIONER BROGAN:  Move approval.
 
          8            SECRETARY MORTHAM:  Second.
 
          9            GOVERNOR CHILES:  Moved and seconded.
 
         10            Without objection, it's approved.
 
         11            DR. BEDFORD:  Item 15, Appointment and
 
         12       Reappointment to the Manatee Community District
 
         13       Board of Trustees.
 
         14            COMMISSIONER BROGAN:  Move approval.
 
         15            SECRETARY MORTHAM:  Second.
 
         16            GOVERNOR CHILES:  Moved and seconded.
 
         17            Without objection, it's approved.
 
         18            DR. BEDFORD:  Item 16, a good cause item:
 
         19       Florida System of School Improvement and
 
         20       Accountability.  Here representing the
 
         21       Accountability Commission, Senator Phil Lewis.
 
         22            SENATOR LEWIS:  Good morning, Governor.
 
         23            GOVERNOR CHILES:  Good morning, sir.
 
         24            SENATOR LEWIS:  Members of the Cabinet,
 
         25       it's a pleasure to be here.

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              30
 
          1            I think you all have a copy of the
 
          2       Florida's System of Schools and Improvement and
 
          3       Accountability for 1996.  And we are pleased to
 
          4       present it to you for approval, with this one
 
          5       caveat:  We have -- the Commission hasn't seen
 
          6       the final draft.  And I just -- I don't think --
 
          7       everything we've seen --
 
          8            (Treasurer Nelson entered the room.)
 
          9            SENATOR LEWIS:  -- so far is substantively
 
         10       correct.  And I'd just like to have them take a
 
         11       shot at it, because they've got the last say.
 
         12            A year ago, we completed the assessment
 
         13       design for the Commission, and for the State
 
         14       Board of Education.  And we would like -- we are
 
         15       just going to report to you that the items for
 
         16       assessment in the Florida Criterion Reference
 
         17       Test are being worked out now.
 
         18            This past year, the Department of Education
 
         19       has worked on the implementation plan by
 
         20       revising the curriculum frameworks, including
 
         21       the Sunshine State Standards, and letting
 
         22       contract and develop new assessments.
 
         23            And I compliment the Commissioner of
 
         24       Education and the work he and his staff have
 
         25       done.  And also want to compliment the

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              31
 
          1       Commissioner on taking the courageous decision
 
          2       on the critically low schools.  We all know what
 
          3       happened when that hit the --
 
          4            COMMISSIONER BROGAN:  Fan.
 
          5            SENATOR LEWIS:  -- fan.  That's the -- I'm
 
          6       glad you said that.
 
          7            And -- however, the results have been very
 
          8       good.  People are working very hard to get off
 
          9       of the list.  And hopefully that list will
 
         10       narrow itself down over the years and will raise
 
         11       the standards.  And I think it's been the first
 
         12       move, and it was one that a lot of people were
 
         13       critical of.
 
         14            But I think, first of all, the Commissioner
 
         15       was carrying out the law; secondly, the
 
         16       Commission results are going to be very good.
 
         17       And it's with your support and help that this is
 
         18       coming into fruition.
 
         19            What you have before you is a design of the
 
         20       system of school improvement accountability as
 
         21       required by statute.  The statute required the
 
         22       design to be completed by the year 2000.
 
         23            Thus, the design has been completed by the
 
         24       Commission four years early, including the
 
         25       important part involving the stakeholders.

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              32
 
          1            There is a tremendous amount of work left
 
          2       to be done in the development of the various
 
          3       components, as well as the training to bring
 
          4       about full implementation.  There are many
 
          5       issues before the Commission at this time,
 
          6       including exit standards and use of high school
 
          7       competency tests; performance based budgeting,
 
          8       as it relates to accountability; and other
 
          9       oversight responsibilities.
 
         10            And I'll just parenthetically say here:
 
         11       From what I've been -- I've listened to what a
 
         12       performance based budgeting is.  And if you've
 
         13       had five explanations, you've had five different
 
         14       explanations.  So by the time we'd get it all
 
         15       fully implemented, we'd have a train wreck the
 
         16       likes you have never seen.  However, that is,
 
         17       I think, going to be narrowed down over the next
 
         18       few months.
 
         19            But one of the things that I noted in my --
 
         20       one of the explanations, which I think is going
 
         21       to come into play, and that is performance based
 
         22       budgeting is going to be tied to performance
 
         23       based education, in particular, the K-12 system,
 
         24       and they're going to tie money to it.  I can
 
         25       almost count on that.

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              33
 
          1            And so if you haven't heard it,
 
          2       Commissioner, and members of the Cabinet, you
 
          3       will soon.  I just learned about it myself.
 
          4            Other areas of -- need attention, the
 
          5       postsecondary is creating a K-- pre-K through
 
          6       the university, a continuum of education that
 
          7       gets fully involved in the system.
 
          8            We can no longer afford in this state, or
 
          9       any other state, for each one of the segments of
 
         10       education to take off like Roman candles all by
 
         11       themselves, and not have -- looking at one
 
         12       another.  The teachers come out of higher
 
         13       education in some state.  The -- and go back
 
         14       into the system.
 
         15            I personally have a very strong involvement
 
         16       in that, and hopefully I see that the
 
         17       postsecondary people are beginning to understand
 
         18       that they are going to be involved in the K-12
 
         19       system.  And I think the Commissioner, and
 
         20       everyone else, is -- so far has shown an
 
         21       interest in that, and we hope if they don't show
 
         22       an interest in it, they will soon.
 
         23            Now that I'm on the Board of Regents,
 
         24       hopefully that will even cause them to have more
 
         25       attention over the next few months.

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              34
 
          1            The Commission will -- in October, will
 
          2       present its annual report, including the
 
          3       feedback on the Department's implementation
 
          4       efforts.  Dr. Biance, who is on vacation
 
          5       currently, or he'd be up here -- by -- was
 
          6       invited by the Education Commission of the
 
          7       states to present a topic of sustaining systemic
 
          8       reform.
 
          9            We are an elite group here in Florida, as
 
         10       we are entering our sixth year.  And now you're
 
         11       beginning to see the fruits of our labor.  When
 
         12       you go outside the state, other states are
 
         13       beginning to look at what Florida is doing.
 
         14            If you remember, in the early days when
 
         15       this started, the reform and accountability, we
 
         16       only heard about Kentucky.  They jumped into the
 
         17       program, they jumped ahead too fast, and didn't
 
         18       do what Florida was doing.  And that was
 
         19       methodically begin to plot out where this was
 
         20       going.
 
         21            And I'm no educator by any -- by a long
 
         22       shot.  But I think we've done it right.
 
         23            As a matter of fact, Dr. Biance in one of
 
         24       his talks over in New Orleans, the chap from
 
         25       Kentucky interrupted and said, don't do as we

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              35
 
          1       did, we're having to redo, and do as Florida is
 
          2       doing.
 
          3            It's hard work; it's tough; it's -- it's
 
          4       methodical; it's boring; and yet for those of us
 
          5       in it, it's very exciting.  I see great things
 
          6       happening in the future.  And I'm glad to be a
 
          7       part of it.
 
          8            In closing, I just want to tell you that
 
          9       the Accountability Commission is still working
 
         10       hard.  They will continue to work hard.
 
         11            And I want to thank again the staff of the
 
         12       Commissioner for working to get this report in.
 
         13       And if there's any major changes after the
 
         14       Commission looks at this, we'll bring it back to
 
         15       you, but I don't suspect there will be any.  And
 
         16       we want to get this into the hands of the
 
         17       teachers and out in the local schools for the
 
         18       1996-97 year.
 
         19            Thank you.
 
         20            GOVERNOR CHILES:  Thank you very much for
 
         21       your report.  And we congratulate the
 
         22       Commissioner.  We're delighted to see that we
 
         23       have now put out -- formalized this process.  It
 
         24       is ahead of time, which is also great.
 
         25            And I think the difference between Florida

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              36
 
          1       and Kentucky primarily is Kentucky did have a
 
          2       unique opportunity when the courts threw out
 
          3       their funding system.  But they sort of
 
          4       squandered that opportunity when they had a
 
          5       top-down approach.  And they thought they were
 
          6       doing it right, but they had to -- all the
 
          7       directives came from the Capitol, and they did
 
          8       not go out and buy in any kind of help from
 
          9       teachers, parents, school boards, others.
 
         10            And I, again, congratulate the
 
         11       Accountability Commission for all those hearings
 
         12       you held, and continue to hold -- I know that
 
         13       that was not easy.  But I think we did have more
 
         14       of a buy-in.  And when we came out with our
 
         15       report, it was something that basically an awful
 
         16       lot of people had bought into.  And so I think
 
         17       that's -- attribute that to the success.
 
         18            The other thing I would say, what you're
 
         19       talking about on performance based budgeting,
 
         20       everybody wants to see that, nobody knows how
 
         21       the hell to do it.  It's the most difficult
 
         22       thing in the world.
 
         23            And again, using the kind of approach that
 
         24       y'all have of, again, getting a buy-in would be
 
         25       very, very important in doing that.  If we had

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              37
 
          1       the best idea and we directed it all from here,
 
          2       it probably will not work.
 
          3            It's again going and holding a lot of
 
          4       meetings, letting a lot of people express
 
          5       themselves, and letting a lot of people begin to
 
          6       understand what we're talking about, that we are
 
          7       talking about tying this to an individual
 
          8       student's performance.  So mom and pop know that
 
          9       the dollar -- their taxpayers' dollar is being
 
         10       spent properly, efficiently, effectively,
 
         11       honestly, all of those things is what we're
 
         12       looking for; as opposed to some bureaucratic
 
         13       follow line items and everything else.
 
         14            So, again, easy to talk about, very
 
         15       difficult to do.  But I can't think of any
 
         16       organization better prepared to try to help us
 
         17       do this, because of your previous experience and
 
         18       your track record, than the
 
         19       Accountability Commission.
 
         20            SENATOR LEWIS:  Thank you, Governor.
 
         21            COMMISSIONER BROGAN:  Governor, I'll move
 
         22       this item.
 
         23            But I would be remiss if -- if we didn't
 
         24       also take the opportunity to thank the
 
         25       Accountability Commission's answer to Stanley

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              38
 
          1       the Panther, and that -- that's Senator
 
          2       Phil Lewis.  He -- he has been great, not only
 
          3       with the Accountability Commission, but we also
 
          4       applaude your wisdom in his appointment to the
 
          5       Board of Regents.
 
          6            He's going to provide for us, I think, a
 
          7       very important link:  Legislature, pre-K-12,
 
          8       Community Colleges, State University System,
 
          9       because he's got such a long and illustrious
 
         10       track record dealing with all of those that's
 
         11       very unusual, in this, or any other state -- and
 
         12       I put this in quotes -- from a layman's
 
         13       perspective.  And I only mean that by saying, he
 
         14       is not an educator, self espoused, and proud of
 
         15       it, I think.
 
         16            SENATOR LEWIS:  Yes, sir.
 
         17            COMMISSIONER BROGAN:  But -- but he does
 
         18       bring to bear a very important list of
 
         19       credentials that will bring to us that kind of
 
         20       experience.
 
         21            So we thank you for that appointment to the
 
         22       BOR, and we also thank Senator Lewis for his
 
         23       continued efforts on behalf of the teachers and
 
         24       children of the State of Florida.  We appreciate
 
         25       it very much.

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                             STATE BOARD OF EDUCATION
                                  July 23, 1996
                                                              39
 
          1            SENATOR LEWIS:  Thank you, Commissioner.
 
          2            COMMISSIONER BROGAN:  Picture?
 
          3            SENATOR LEWIS:  Oh, no.  I put you through
 
          4       that already.
 
          5            Thank you.
 
          6            SECRETARY MORTHAM:  Second.
 
          7            GOVERNOR CHILES:  The report has been moved
 
          8       and seconded.
 
          9            Without objection, the report is adopted.
 
         10            DR. BEDFORD:  Thank you.
 
         11            (The State Board of Education Agenda was
 
         12       concluded.)
 
         13                             *
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25

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                            ADMINISTRATION COMMISSION
                                  July 23, 1996
                                                              40
 
          1            GOVERNOR CHILES:
 
          2       Administration Commission.
 
          3            DR. BRADLEY:  Item number 1, recommend
 
          4       approval of the minutes of the meetings held
 
          5       June 13; June 20; and June 25, 1996.
 
          6            SECRETARY MORTHAM:  Move approval.
 
          7            COMMISSIONER BROGAN:  Second.
 
          8            GOVERNOR CHILES:  Motion and --
 
          9            COMMISSIONER BROGAN:  Second.
 
         10            GOVERNOR CHILES:  -- second in regard to
 
         11       the minutes.
 
         12            Without objection, they're approved.
 
         13            DR. BRADLEY:  Item number 2, recommend
 
         14       approval of the transfer of general revenue
 
         15       appropriations in the Department of Agriculture
 
         16       and Consumer Services.
 
         17            COMMISSIONER CRAWFORD:  Motion.
 
         18            COMMISSIONER BROGAN:  Move approval.
 
         19            GOVERNOR CHILES:  Moved and seconded.
 
         20            Without objection, that's approved.
 
         21            DR. BRADLEY:  Item number 3, recommend the
 
         22       approval of the transfer of general revenue
 
         23       appropriations, and -- under Items A, B, and C
 
         24       in the Department of Health and Rehabilitative
 
         25       Services.

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                            ADMINISTRATION COMMISSION
                                  July 23, 1996
                                                              41
 
          1            COMMISSIONER BROGAN:  Governor, move
 
          2       Items 3 A, B, and C.
 
          3            SECRETARY MORTHAM:  Second.
 
          4            GOVERNOR CHILES:  All right.  Motion is on
 
          5       items A, B, and C.
 
          6            And without objection, that's approved.
 
          7            DR. BRADLEY:  Item number 4, recommend the
 
          8       approval of the transfer of general revenue
 
          9       appropriations in the Department of Juvenile
 
         10       Justice.
 
         11            SECRETARY MORTHAM:  Move approval.
 
         12            COMPTROLLER MILLIGAN:  Second.
 
         13            COMMISSIONER BROGAN:  Second.
 
         14            GOVERNOR CHILES:  Moved and seconded.
 
         15            Without objection, it's approved.
 
         16            DR. BRADLEY:  Item number 5, recommend the
 
         17       approval of the transfer of general revenue
 
         18       appropriations under items A and B in the
 
         19       Department of State.
 
         20            SECRETARY MORTHAM:  Move approval.
 
         21            COMPTROLLER MILLIGAN:  Second.
 
         22            COMMISSIONER BROGAN:  Second.
 
         23            GOVERNOR CHILES:  Moved and seconded.
 
         24            Without objection, it's approved.
 
         25            DR. BRADLEY:  Item number 6, Governor, is

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                            ADMINISTRATION COMMISSION
                                  July 23, 1996
                                                              42
 
          1       recommended that we take up later after the
 
          2       Trustees agenda.  That's the Lee County --
 
          3            GOVERNOR CHILES:  All right.
 
          4            (The Administration Commissioner Agenda was
 
          5       continued.)
 
          6                             *
 
          7
 
          8
 
          9
 
         10
 
         11
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25

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                  FLORIDA LAND AND WATER ADJUDICATORY COMMISSION
                                  July 23, 1996
                                                              43
 
          1            GOVERNOR CHILES:  Florida Land and Water
 
          2       Adjudicatory Commission.
 
          3            DR. BRADLEY:  Item number 1, request
 
          4       approval of the minutes of July 9, 1996,
 
          5       Commission meeting.
 
          6            COMMISSIONER BROGAN:  So move.
 
          7            SECRETARY MORTHAM:  Second.
 
          8            GOVERNOR CHILES:  Moved and seconded.
 
          9            Without objection, minutes are approved.
 
         10            DR. BRADLEY:  Item number 2 is request
 
         11       approval of the proposed final rule establishing
 
         12       the Fiddler's Creek Community Development
 
         13       District.  We have some folks here available if
 
         14       you want to --
 
         15            SECRETARY MORTHAM:  Move approval.
 
         16            GOVERNOR CHILES:  Moved and --
 
         17            COMMISSIONER CRAWFORD:  Second.
 
         18            COMMISSIONER BROGAN:  Second.
 
         19            GOVERNOR CHILES:  -- seconded.
 
         20            Without objection, it's approved.
 
         21            DR. BRADLEY:  Item number 3, request
 
         22       acceptance of the June 30, 1996, report on the
 
         23       status of the Save Our Everglades Program.
 
         24            COMMISSIONER BROGAN:  Move approval.
 
         25            COMMISSIONER CRAWFORD:  Second.

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          1            GOVERNOR CHILES:  Moved and seconded.
 
          2            Without objection, that's approved.
 
          3            (The Florida Land and Water Adjudicatory
 
          4       Commission Agenda was concluded.)
 
          5                             *
 
          6
 
          7
 
          8
 
          9
 
         10
 
         11
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25

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          1            GOVERNOR CHILES:  Board of Trustees.
 
          2            MS. WETHERELL:  Governor and Trustees, if I
 
          3       could first introduce to you our new
 
          4       General Counsel for DEP, Mr. Perry Odom.
 
          5            If Perry'll just stand up, because you'll
 
          6       be seeing a lot of him now.
 
          7            Item 1, an option agreement for Belle Meade
 
          8       CARL project, and a waiver of survey.
 
          9            SECRETARY MORTHAM:  Move approval.
 
         10            COMMISSIONER BROGAN:  Move approval.
 
         11            GOVERNOR CHILES:  Moved and --
 
         12            COMMISSIONER CRAWFORD:  Second.
 
         13            GOVERNOR CHILES:  -- seconded.
 
         14            Without objection, it's approved.
 
         15            MS. WETHERELL:  Item 2 is an option
 
         16       agreement for Belle Meade CARL project.
 
         17            SECRETARY MORTHAM:  Move approval.
 
         18            COMMISSIONER BROGAN:  Second.
 
         19            GOVERNOR CHILES:  Moved and seconded.
 
         20            Without objection, that's approved.
 
         21            MS. WETHERELL:  Item 3 are ten purchase
 
         22       agreements for Belle Meade CARL projects, and a
 
         23       waiver of survey.
 
         24            COMMISSIONER BROGAN:  Move approval.
 
         25            SECRETARY MORTHAM:  Second.

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          1            GOVERNOR CHILES:  Moved and seconded.
 
          2            Without objection, that's approved.
 
          3            MS. WETHERELL:  Item 4 is an option
 
          4       agreement for Belle Meade CARL project.
 
          5            SECRETARY MORTHAM:  Move approval.
 
          6            COMMISSIONER BROGAN:  Second.
 
          7            GOVERNOR CHILES:  Moved and seconded.
 
          8            Without objection, that's approved.
 
          9            MS. WETHERELL:  Item 5, purchase agreements
 
         10       for Save Our Everglades CARL project, and a
 
         11       waiver of survey.
 
         12            SECRETARY MORTHAM:  Move approval.
 
         13            COMMISSIONER BROGAN:  Second.
 
         14            GOVERNOR CHILES:  Moved and seconded.
 
         15            Without objection, that's approved.
 
         16            MS. WETHERELL:  Item 6, two option
 
         17       agreements for Tate's Hell Carrabelle CARL
 
         18       project.
 
         19            COMMISSIONER BROGAN:  Move it.
 
         20            SECRETARY MORTHAM:  Second.
 
         21            GOVERNOR CHILES:  Moved and seconded.
 
         22            Without objection, that's approved.
 
         23            MS. WETHERELL:  Item 7, an option agreement
 
         24       for Spruce Creek CARL project.
 
         25            SECRETARY MORTHAM:  Move approval.

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          1            COMMISSIONER BROGAN:  Second.
 
          2            GOVERNOR CHILES:  Moved and seconded.
 
          3            Without objection, it's approved.
 
          4            MS. WETHERELL:  Item 8, an option agreement
 
          5       for the Chassahowitzka Wildlife Management Area.
 
          6            COMMISSIONER BROGAN:  Move it.
 
          7            SECRETARY MORTHAM:  Move approval.
 
          8            COMMISSIONER BROGAN:  Second.
 
          9            GOVERNOR CHILES:  Moved and seconded.
 
         10            Without objection, that's approved.
 
         11            MS. WETHERELL:  Item 9, a modification of
 
         12       deed restrictions on Watson Island.
 
         13            We have some speakers, Governor.  If I can
 
         14       call on first Steve Uhlfelder, representing the
 
         15       applicant.
 
         16            And following him will be Vice Mayor
 
         17       Willy Gort, Commissioner Joe Carollo, and
 
         18       Senator Ron Silver.
 
         19            ATTORNEY GENERAL BUTTERWORTH:  Which one is
 
         20       Steve Uhlfelder, and which one --
 
         21            TREASURER NELSON:  You're getting yourself
 
         22       all adorned these days, aren't you?
 
         23            MR. UHLFELDER:  He's going to tell us the
 
         24       percentage.  They guaranteed me that this was
 
         25       potty trained.

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          1            ATTORNEY GENERAL BUTTERWORTH:  They just
 
          2       fed him.
 
          3            MR. UHLFELDER:  It's a pleasure to be here
 
          4       representing the City of Miami.  I'm with
 
          5       Holland & Knight, we represent the City.  And
 
          6       today we have with us a number of City
 
          7       officials.
 
          8            I don't think this is going to work.
 
          9            TREASURER NELSON:  Cheap suit.
 
         10            ATTORNEY GENERAL BUTTERWORTH:  Better hope
 
         11       it's a cheap suit.
 
         12            MR. UHLFELDER:  The -- we have --
 
         13            TREASURER NELSON:  It's the most lucid
 
         14       presentation you've ever made.
 
         15            GOVERNOR CHILES:  We're going to know
 
         16       whether you're telling the truth or not because
 
         17       of the bird.
 
         18            MR. UHLFELDER:  The -- I asked the bird
 
         19       before I could get up here whether he was a
 
         20       Democrat or Republican; he said, depending on
 
         21       the issue.
 
         22            But we have with us today the Vice Mayor,
 
         23       Willy Gort; Commissioner Joe Carollo;
 
         24       Commissioner J.L. Plummer; the head of Planning,
 
         25       Jack Luft; Ron Silver with the -- the head of

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          1       the Dade delegation; William Talbert, who's the
 
          2       CEO of the Miami Convention Bureau; Mr. and
 
          3       Mrs. Bernie Levine, CEO, Parrot Jungle, whose
 
          4       bird this belongs to.
 
          5            In 1945, this is what Watson Island looked
 
          6       like; this is what the Watson Island looks like
 
          7       today; and this is what the Watson Island would
 
          8       look like with about 1,000 parrots like this,
 
          9       and all -- the $25 million that will be put in
 
         10       this -- this development.
 
         11            We've spent about six months negotiating
 
         12       with the City of Miami and the State to enter
 
         13       into agreements so we can get a deed restriction
 
         14       of about 18 acres.  There was voter approval of
 
         15       this project in November of 1995, with over
 
         16       60 percent of the voters approving this
 
         17       project.  There'll be over $500,000 in State
 
         18       sales tax coming to you as a result of this
 
         19       project.
 
         20            We've had three appraisals done on this
 
         21       project, and it shows that what we negotiated,
 
         22       the amount that we believe is reasonable, and we
 
         23       believe that what the City is asking for at
 
         24       7.5 percent supports those appraisals.
 
         25            We negotiated this amount of 15, and the

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          1       City requested an amount of 7.5, and the
 
          2       Commissioners are here today to support their
 
          3       position.
 
          4            We believe because the economic development
 
          5       and the tourism are being enhanced by this
 
          6       project, that we believe you should support the
 
          7       City's position.
 
          8            Because the proposed attraction is
 
          9       principally a garden, and has a low tax value,
 
         10       the property tax returned to the City will be
 
         11       less than the costs providing municipal
 
         12       services.  They're putting a substantial amount
 
         13       of capital improvements in this area.
 
         14            I would like now to turn over to the
 
         15       commissioners to talk about the economic
 
         16       development and to the -- the additional impact
 
         17       this will have on the community, and answer any
 
         18       questions at the end of that.
 
         19            The first person is Vice Mayor Willy Gort.
 
         20            MR. GORT:   Thank you.
 
         21            Good morning, Governor, members of the
 
         22       Cabinet --
 
         23            GOVERNOR CHILES:  Good morning.
 
         24            MR. GORT:  -- surely you are aware that the
 
         25       City of Miami was said to be the poorest -- one

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          1       of the fourth poorest city in the
 
          2       United States.  Certainly the most poorest city
 
          3       in the state of Florida.
 
          4            We tried to turn that around two years ago,
 
          5       and we made a commitment to our residents that
 
          6       we would change that around.
 
          7            One of the first things we did, we -- we
 
          8       deal with the budget.  We are here to reduce the
 
          9       budget by $36 million, and we requested our
 
         10       employees to perform a lot better and to do a
 
         11       lot more.
 
         12            At the same time, we made a commitment that
 
         13       we're going to turn -- maximize the revenues
 
         14       from the public land, and that's what's -- a lot
 
         15       of the RFP went out.
 
         16            Just to give you an idea of the economic
 
         17       impact that this will have, this proposed
 
         18       Parrot Jungle will create 200 permanent jobs,
 
         19       will create 500 jobs during construction,
 
         20       provide environmental education programs to the
 
         21       inner city school children, return attraction,
 
         22       Florida will pay in excess of $500,000 annually
 
         23       in sales tax.
 
         24            Pay other taxes annually, 3 -- 3 percent in
 
         25       property tax out of gross revenues;

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          1       two-and-a-half percent in local food and
 
          2       beverage taxes that helps the homeless, and
 
          3       others; 7 in payroll taxes.  Almost 20 percent
 
          4       of the gross revenues will go into paying taxes,
 
          5       federal, county, and state.
 
          6            This project cost around $25 million for
 
          7       the next five years, which will be additional
 
          8       jobs and income taxes will be paid from.
 
          9            As you were told before, we took this to
 
         10       the electors, and they approved it by 60 percent
 
         11       with a 28 percent turnout.
 
         12            So, therefore, I respectfully request the
 
         13       waiver of the deed restriction on Watson Island
 
         14       at 75 -- 7.5 percent payment made to the
 
         15       State of Florida.
 
         16            Thank you very much.
 
         17            Now I'd like to call on
 
         18       Commissioner Plummer.
 
         19            MR. PLUMMER:  Governor, Members of the
 
         20       Cabinet, I would like to take a second of your
 
         21       time as Chairman of the City of Miami Centennial
 
         22       to invite all of you Sunday to come down for the
 
         23       world's largest birthday party.  If you're in
 
         24       the area, we'd love to have you as our guest at
 
         25       that celebration.

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          1            I come here today to tell you that
 
          2       sometimes five years is a short period of time;
 
          3       and other times, it's an awful long time.  Five
 
          4       years ago when the Parrot Jungle decided that
 
          5       they were going to move, I talked to Dr. Levine,
 
          6       and we had three locations pretty well laid out
 
          7       in the City of Miami.
 
          8            Finally came to a referendum last November
 
          9       in which the people of the City of Miami decided
 
         10       that 25 to $27 million privately financed would
 
         11       be a tremendous asset for our community.
 
         12            No one thing is the hub or the wheel.  As
 
         13       you know, we have many, many improvements that
 
         14       we're looking at, and the Watson Island
 
         15       Parrot Jungle and Botanical Gardens will fit
 
         16       right into that picture.
 
         17            With the expansion of the port; with your
 
         18       help, the new arena; the performing arts; the
 
         19       opera house, all of those are very, very vital
 
         20       things for the redevelopment of our downtown
 
         21       area.
 
         22            They are looking presently at the present
 
         23       attraction of where -- about 50/50, 50 percent
 
         24       visitors, 50 percent local.  They're looking
 
         25       forward in three years to going to

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          1       550,000 people, and an aspect of 60/40,
 
          2       60 percent visitors, 40 percent of local people.
 
          3            We beg your help in this matter.  We feel
 
          4       it is crucial, it is very important to our
 
          5       community.  And I just thank you very much for
 
          6       allowing us to be here today.  We're not
 
          7       violating the Sunshine Law nor the Moonshine
 
          8       Law, we've all signed the necessary pledges.
 
          9            Thank you very much.
 
         10            MR. UHLFELDER:  I would like to call on the
 
         11       head of the Dade delegation, Senator Silver.
 
         12            SENATOR SILVER:  Governor, and members of
 
         13       the Cabinet, it's a pleasure to appear before
 
         14       you.
 
         15            It's a little odd for me to do this.  In
 
         16       18 years I've been in the Legislature, this is
 
         17       the first time I have -- have done this.
 
         18            Actually, it's the the second time,
 
         19       because, as you saw, I was with Stanley Panther
 
         20       before, and that was my first appearance before
 
         21       you.
 
         22            I certainly appreciate -- this gives me an
 
         23       opportunity to extend my appreciation for the
 
         24       kind remarks, Commissioner Crawford, that you
 
         25       gave to me before.  I just want to thank you so

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          1       much for that, recognizing my bigness and
 
          2       greatness.
 
          3            This is a very important issue to those of
 
          4       us in Dade County.
 
          5            It represents something that we all are
 
          6       proud of.  And I'm here to tell you today, as
 
          7       Chairman of the Dade County Legislative
 
          8       Delegation, that not one single member of this
 
          9       delegation objects to this proposal that is
 
         10       before you today, that those of us who represent
 
         11       the people of Dade County in the legislative
 
         12       process are all unanimously behind this
 
         13       proposal.
 
         14            We do that for many reasons.  But the
 
         15       biggest one I think is because of the economic
 
         16       development aspect of this.
 
         17            The attraction that we can provide to
 
         18       people who visit our area, who come to our area,
 
         19       for various reasons, this gives them another
 
         20       opportunity.  And it's a tremendous educational
 
         21       experience.
 
         22            The Parrot Jungle before this move was
 
         23       located in my district, and it will be located
 
         24       in my district after this move.  I am very proud
 
         25       to have it.  As we went through the hurricane

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          1       process, we know that severe problems occurred
 
          2       to Dade County.  And this Cabinet, this
 
          3       Legislature, has been absolutely outstanding in
 
          4       every regard as far as getting us back on the
 
          5       track.
 
          6            I believe that this addition, this addition
 
          7       will put us in the right direction.  There's a
 
          8       lot more that we can do, there's a lot more we
 
          9       want to do.  And the fact that the Dade
 
         10       delegation has come together on an issue -- as
 
         11       you know, those of you who served in the
 
         12       Legislature, and it's very difficult to get the
 
         13       Dade delegation to agree on almost anything.
 
         14       Well, they're in agreement on this particular
 
         15       issue.
 
         16            So I would urge you, on that basis, to try
 
         17       and accede to the proposal that is before you.
 
         18       I think it's a win-win, it's a win for the State
 
         19       of Florida.  I think additional revenues are
 
         20       going to be coming into the state, and it
 
         21       certainly would be a win for the people of
 
         22       Dade County.
 
         23            Thank you very much.
 
         24            MR. UHLFELDER:  Last speaker, and I'll be
 
         25       glad to answer any questions.

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          1            But before that, the Mayor-to-be,
 
          2       Joe Carollo.
 
          3            MR. CAROLLO:  Governor, Honorable Members
 
          4       of the Cabinet, thank you for the opportunity
 
          5       that you've extended to us today in making this
 
          6       presentation on behalf of Miami.
 
          7            Since 1949, the City of Miami has expended
 
          8       over $10 million to the improvement of
 
          9       Watson Island, along with a commitment that we
 
         10       have of spending an additional seven-and-a-half
 
         11       million for additional improvements on
 
         12       Watson Island.  It's a total of
 
         13       seventeen-and-a-half million dollars.
 
         14            The only return that the citizens of Miami
 
         15       will receive monetary will be the monetary
 
         16       returns that we'll receive from this project
 
         17       since that time.  At the same time, the State of
 
         18       Florida will be receiving in excess of half a
 
         19       million dollars a year in annual sales tax
 
         20       revenues.
 
         21            As you heard one of my colleagues state
 
         22       before, Miami is the fourth poorest city in the
 
         23       country.  There is no other city in the state of
 
         24       Florida, I may say, that needs this money more
 
         25       than Miami.

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          1            We hope that in this centennial year, the
 
          2       year that Miami becomes 100 years old, that we
 
          3       will start changing that, so instead of being
 
          4       the fourth poorest city in the country, maybe we
 
          5       could become one of the wealthiest cities so we
 
          6       could contribute more to our great state.
 
          7            But in this centennial year, I cannot think
 
          8       of a better birthday present that you could give
 
          9       to us in Miami than to vote for us in this
 
         10       request that we've made.
 
         11            Having said that, I would also like to
 
         12       extend to all of you that you come to Miami this
 
         13       weekend, an invitation to celebrate with us the
 
         14       largest birthday party that there will be in the
 
         15       state of Florida.
 
         16            Thank you very much.
 
         17            GOVERNOR CHILES:  Thank you, sir.
 
         18            MR. UHLFELDER:  That concludes our
 
         19       presentation.  I want to let you know, this
 
         20       parrot behaved a lot better than that panther.
 
         21       So --
 
         22            GOVERNOR CHILES:  Yeah.  You haven't looked
 
         23       at the back of your coat yet.
 
         24            MR. UHLFELDER:  Not -- I was anticipating
 
         25       that.  I borrowed a partner's jacket today.

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          1       So --
 
          2            TREASURER NELSON:  At least he's wearing a
 
          3       dark jacket.
 
          4            MS. WETHERELL:  Those are all the
 
          5       speakers.  And unless you would like to hear
 
          6       from Mr. Mallison as to why we recommended
 
          7       15 percent --
 
          8            GOVERNOR CHILES:  Well, I -- what is the
 
          9       proposal that's before us?
 
         10            MS. WETHERELL:  Proposal before you in the
 
         11       item --
 
         12            GOVERNOR CHILES:  And I'd like to hear from
 
         13       Mr. Mallison.
 
         14            MS. WETHERELL:  Okay.  Pete?
 
         15            MR. MALLISON:  Good morning, Governor, and
 
         16       Cabinet.
 
         17            The Secretary did ask me to kind of recap
 
         18       for you how we got to where we are.  And I
 
         19       would, of course, begin with the deed to the
 
         20       City, which was given to them by the Board of
 
         21       Trustees back in the late 1940s.
 
         22            At the time that the property was conveyed
 
         23       to the City, it was conveyed with use
 
         24       restrictions on the property, it was given to
 
         25       them for virtually no consideration so that it

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          1       could be used for public and municipal purposes.
 
          2            And the deed contains specific language in
 
          3       it that specifically provides that it may not be
 
          4       leased to any private citizen, corporation, or
 
          5       entity that the -- being that the purpose of the
 
          6       original dedication to the City was for
 
          7       municipal and public purposes.
 
          8            Consequently, when the City approached us
 
          9       six to eight months ago originally asking for a
 
         10       relaxation, or waiver of the deed restrictions
 
         11       so that they could lease this property to
 
         12       Parrot Jungle, which clearly is a private
 
         13       entity, we began our discussions with the City.
 
         14            And it was our feeling that there were
 
         15       certainly -- as the City has said today -- that
 
         16       there are certainly some public benefits to be
 
         17       derived from the construction of this tourist
 
         18       attraction on the island.  But, on the other
 
         19       hand, that it was clearly also inconsistent with
 
         20       the restrictions under which the property had
 
         21       been conveyed to the City.
 
         22            I can tell you that nearly from the
 
         23       beginning, the City has agreed that it would be
 
         24       appropriate to compensate the Board of Trustees
 
         25       in some fashion for the modification of these

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          1       deed restrictions.
 
          2            However, before we began our negotiations
 
          3       with the City over what an appropriate
 
          4       compensation should be, we felt that we needed
 
          5       to have an appraisal done on the property so
 
          6       that we could see what its value was.
 
          7            The City was gracious enough to agree to
 
          8       pay for that appraisal.  We obtained an
 
          9       appraisal.  We asked the appraiser to tell us
 
         10       what the value of the property was put to its
 
         11       highest and best use as a tourist attraction.
 
         12            The appraiser estimated the value of the
 
         13       land at three-and-a-half million dollars.  He
 
         14       then told us that it would be reasonable to
 
         15       expect that a landlord would receive a base rent
 
         16       for that property of approximately 10 percent of
 
         17       that number, or $350,000 a year.
 
         18            He also indicated to us that it would be
 
         19       reasonable to expect a landlord of property on
 
         20       which this sort of operation will be
 
         21       constructed, to negotiate a lease with the
 
         22       lessee, which would also include a return on
 
         23       things such as ticket -- ticket sales; retail
 
         24       sales; and banquet and restaurant income, which
 
         25       are expected to be generated by this operation.

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          1            And recommended to us through the appraisal
 
          2       a range of percentages of those numbers that you
 
          3       would expect to negotiate within.
 
          4            Consequently, we began our negotiations
 
          5       with the City, suggesting that it would be
 
          6       appropriate for the State to receive in
 
          7       recognition of the fact that this was not given
 
          8       to them for a profit making venture, that it
 
          9       would be appropriate for the State to receive
 
         10       some portion of these revenues.
 
         11            I believe that the offer that we were
 
         12       making to the City several months ago was in the
 
         13       neighborhood of 25 percent of the numbers, as I
 
         14       have indicated.
 
         15            The City came back -- or at least the
 
         16       City's agent, and the City staff members that we
 
         17       were dealing with, came back, and suggested that
 
         18       if we would be agreeable to 15 percent, that
 
         19       they would agree to that.
 
         20            So in recognition that this is an important
 
         21       public project in Miami, we said we would agree
 
         22       to that.
 
         23            And it was at that point apparently that
 
         24       the -- this deal was taken to the
 
         25       City Commission, at which point they apparently

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          1       did not agree with their staff position on
 
          2       15 percent.
 
          3            So we are here now, as you know, with
 
          4       somewhat of an impasse, our position being that
 
          5       we believe that 15 percent is a reasonable
 
          6       figure; the City, of course, asking for
 
          7       seven-and-a-half percent.
 
          8            I would just mention to you that the --
 
          9       whatever proceeds are derived from this
 
         10       agreement with the City would be deposited into
 
         11       the Internal Improvement Trust Fund, which is
 
         12       the Trust Fund that supports your staff, being
 
         13       my Division of State Lands, as well as other
 
         14       staff within the department who are charged with
 
         15       the administration and oversight of the
 
         16       3 million or so acres that are titled in your
 
         17       name.
 
         18            So I would just mention that as well.
 
         19            And I would be glad to answer any questions
 
         20       if --
 
         21            GOVERNOR CHILES:  Well, I just think it's
 
         22       interesting that the City Commission, which it
 
         23       was certainly within their prerogatives and
 
         24       responsibilities and duties, decided that
 
         25       15 percent was too much, and so they thought it

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          1       should be seven-and-a-half.
 
          2            I will just point out that your Board has
 
          3       not agreed to your 15 percent figure yet, and
 
          4       I think it may be too low.  So, you know, we may
 
          5       have some more negotiations that we're doing
 
          6       here.
 
          7            Go ahead.
 
          8            TREASURER NELSON:  Well, Governor, I come
 
          9       at it from a different approach.  I wonder, what
 
         10       is the public policy with regard to the
 
         11       protection of the state.  You all clearly have
 
         12       done your job as the Division of State Lands, in
 
         13       protecting the public interest and the State's
 
         14       interest here.
 
         15            Has the State expended any money with
 
         16       regard to Watson Island?  Clearly the City has
 
         17       since the 1940s.  Has the State?
 
         18            MS. WETHERELL:  Do you know that answer?
 
         19            MR. MALLISON:  I can tell you that in terms
 
         20       of every day maintenance, and those kinds of
 
         21       things, that it is not my under-- we certainly
 
         22       haven't expended any money, Commissioner.
 
         23            I would say that I believe that there is a
 
         24       public road, a State road, that runs across the
 
         25       island.  Now, I would assume that DOT is

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          1       providing some maintenance for that road.
 
          2            But, again, I guess my response to that
 
          3       would be that the property was given to the
 
          4       City, and obviously it is theirs to maintain.
 
          5       But, again, it was given to them for the
 
          6       specific purposes of municipal purposes.  So we
 
          7       would expect that they would maintain it for
 
          8       those purposes.
 
          9            TREASURER NELSON:  Well, in terms of global
 
         10       affairs, we're only talking about a $30,000
 
         11       difference here.  But to get to what the
 
         12       equities are, the Miami Herald has editorialized
 
         13       that the State initially asked for 50 percent.
 
         14            Could you tell me if that's true; and if
 
         15       so, why?
 
         16            MR. MALLISON:  That is true, Commissioner.
 
         17       And that was our beginning offer in the
 
         18       negotiations.
 
         19            I think that we went into the negotiations
 
         20       hoping that we would end up somewhere in the 15
 
         21       to 25 percent range.  And obviously, we did not
 
         22       want to begin with what our bottom line was.  So
 
         23       we threw out an initial offer of 50 percent.
 
         24            Now, I think that there is some
 
         25       justification for that.  I think that the Board

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          1       of Trustees in the past has considered requests
 
          2       by the City to release deed restrictions on this
 
          3       very -- within the same deed, for other City
 
          4       projects.
 
          5            And, in fact, the last time that that was
 
          6       before this Board, the Board insisted that
 
          7       100 percent of the revenue that the City derived
 
          8       from the conversion of another part of this deed
 
          9       to private uses would go into a special trust
 
         10       fund that was intended to compensate the local
 
         11       citizens for the conversion of that land.
 
         12            So there's an instance where this Board
 
         13       insisted that 100 percent of the City's revenues
 
         14       on the property be earmarked, if you will, for
 
         15       projects that this Board said they ought to be
 
         16       earmarked for.
 
         17            So we believe that the Board's past
 
         18       practice had suggested that they thought that
 
         19       some significant portion of that.  But, on the
 
         20       other hand, we'd never started with 100 percent,
 
         21       because we understood that this is a project
 
         22       with a lot of local benefits.
 
         23            The City obviously is the one who's going
 
         24       to have to be responsible for the day-to-day
 
         25       oversight and management of this, and we did not

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          1       believe that 100 percent was an appropriate
 
          2       number.
 
          3            So we did begin with a suggestion of
 
          4       50 percent.  But, again, it was an opening
 
          5       position, and certainly not one that we expected
 
          6       to end up at.
 
          7            TREASURER NELSON:  It's sort of interesting
 
          8       how we will argue over minor matters of $30,000
 
          9       per year.  But it seems to me that the principle
 
         10       here is that if Miami's taxpayers have
 
         11       maintained this for years, that they ought to be
 
         12       the ones that have the -- the primary benefits
 
         13       coming from the revenue.  And that's my --
 
         14            GOVERNOR CHILES:  Well --
 
         15            TREASURER NELSON:  -- position, Governor.
 
         16            GOVERNOR CHILES:  -- I would certainly
 
         17       agree with that.
 
         18            I also think that the discussion here is
 
         19       not whether we're going to try to second-guess
 
         20       the Commission as to what the purpose is, and
 
         21       that while the State did give this land in the
 
         22       '40s, again, with little or no compensation, as
 
         23       I understand, we have Bayfront, which we've
 
         24       also, in effect, provided for small compensation
 
         25       goes.

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          1            But it seems like to me, the 15 percent
 
          2       that we're going to get is going to help the
 
          3       citizens of Dade County and the citizens all
 
          4       over Florida.
 
          5            Because that helps us to be able to
 
          6       administer the funds that we're talking about.
 
          7       And if you all will remember, the Legislature
 
          8       doesn't provide much funding.  And we're
 
          9       constantly finding that the Trustees do not have
 
         10       sufficient funds to try to look after how you
 
         11       protect the public's right.
 
         12            So we're talking about how are we going to
 
         13       help the citizens of Dade County the most?  Are
 
         14       we going to help them by cutting
 
         15       seven-and-a-half percent, or are we going to
 
         16       have a viable Trustees -- what is more critical
 
         17       lands than Dade County and south Florida and the
 
         18       area down there?
 
         19            So, to me, we're talking about negotiation
 
         20       here.  We're not talking about second-guessing a
 
         21       committee -- the Commission.  We're not talking
 
         22       about whether we're going to allow the private
 
         23       use of what was a public facility -- a public
 
         24       purpose.
 
         25            It certainly is going to bring tourism

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          1       there, it's going to bring a lot of other people
 
          2       to there.  And if that's the Commission's
 
          3       judgment, I don't want to second-guess that.
 
          4            But if the City Commission has decided
 
          5       that, hell, let's just get seven-and-a-half --
 
          6       pay them seven-and-a-half percent, they could
 
          7       have said zero, you know, and we could have been
 
          8       up here.
 
          9            After negotiations have gone along at
 
         10       15 percent, and as I say, I think you could have
 
         11       good reason as to why we're paying 15.  It is
 
         12       the principle of the thing, I think.  And I
 
         13       think they are being a little piggy, to tell you
 
         14       the truth.  And I think that 15 percent would be
 
         15       a fairer deal.  And that's what I would like to
 
         16       see us do.
 
         17            TREASURER NELSON:  Governor, I -- I think
 
         18       part of this is a turf fight that you used to
 
         19       teach me a lot about up in Washington as my
 
         20       senior senator, about which agency was going to
 
         21       get the revenue.
 
         22            The fact is, this project is going to
 
         23       benefit the State of Florida quite a bit,
 
         24       because they're estimating that the income that
 
         25       comes into the coffers of the State of Florida

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          1       is going to increase fivefold, from about
 
          2       $100,000 sales tax, to about 500,000.
 
          3            GOVERNOR CHILES:  Yes.
 
          4            TREASURER NELSON:  So clearly the
 
          5       State of Florida's going to benefit.  But that
 
          6       revenue's not going into DEP, it's coming into
 
          7       the general revenue of the state.
 
          8            GOVERNOR CHILES:  That's right.
 
          9            TREASURER NELSON:  So it's a turf fight,
 
         10       isn't it?
 
         11            GOVERNOR CHILES:  Sure.
 
         12            COMPTROLLER MILLIGAN:  Governor, if I
 
         13       may --
 
         14            GOVERNOR CHILES:  Yes, sir.
 
         15            COMPTROLLER MILLIGAN:  -- jump into the
 
         16       fray.  We are dancing a little bit on the head
 
         17       of a pin here, as --
 
         18            GOVERNOR CHILES:  Yes, sir.
 
         19            COMPTROLLER MILLIGAN:  --
 
         20       Commissioner Nelson pointed out.
 
         21            But we don't have a -- really a very good
 
         22       track record in this state in terms of economic
 
         23       development, and promoting economic
 
         24       development.  Granted, we are trying to change
 
         25       that, and there have been some recent actions

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          1       that will strengthen it.
 
          2            And it appears to me that we are poking in
 
          3       the eye a little bit here the opportunity for
 
          4       Miami and Dade County to really build and
 
          5       strengthen the development of that area.
 
          6            And, again, it is dancing on the head of a
 
          7       pin, but it is a principle.  And I take a
 
          8       slightly different view of that principle, than
 
          9       perhaps you do.  And I certainly would argue for
 
         10       lesser than the 15 percent.  And, in fact, I
 
         11       probably might even strike for zero.  But
 
         12       I think we could probably live with --
 
         13            GOVERNOR CHILES:  Commission may meet
 
         14       again.
 
         15            COMPTROLLER MILLIGAN:  -- we probably could
 
         16       strike the -- at the seven-and-a-half.
 
         17            And I would make a motion to that effect,
 
         18       that we consider reducing that 15 percent to
 
         19       seven-and-a-half percent.
 
         20            TREASURER NELSON:  I second it.
 
         21            GOVERNOR CHILES:  That's been moved and
 
         22       seconded.
 
         23            Is there further discussion?
 
         24            Many as favor the motion, signify by saying
 
         25       aye.

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          1            COMPTROLLER MILLIGAN:  Aye.
 
          2            TREASURER NELSON:  Aye.
 
          3            GOVERNOR CHILES:  Opposed, no?
 
          4            No.
 
          5            ATTORNEY GENERAL BUTTERWORTH:  No.
 
          6            GOVERNOR CHILES:  Motion carries.
 
          7            MS. WETHERELL:  Item 10 is a status report
 
          8       on the Bayside Center.  And we have speaker,
 
          9       Toby Brigham, representing the property owners
 
         10       of the Barnacle.
 
         11            MR. BRIGHAM:  Good morning, Your Honors.
 
         12            I have a status report as to the
 
         13       Commodore Bay tract of land.  It was about
 
         14       eleven years ago today when a similar request
 
         15       from the City of Miami came to have the State
 
         16       release its restrictions on the Bayfront Park of
 
         17       Miami to build the Bayside Commercial Center.
 
         18            And at that time, the agreement was that
 
         19       seven-and-a-half percent, or 7.4 percent of the
 
         20       revenues from that rental to that commercial
 
         21       enterprise, would go into a trust fund to
 
         22       acquire the Commodore Bay tract, which was owned
 
         23       by my three clients:  Howard Scharlin and
 
         24       Ken Treister and Jerry Katcher.
 
         25            At that time, the owners, in order to use

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          1       the property, not to sell it or increase the
 
          2       price for the acquisition, were seeking to have
 
          3       the property rezoned from its 1936 single family
 
          4       zoning, to the same uses that existed in central
 
          5       Coconut Grove, which was a mixed use development
 
          6       that would open up the property to the bay with
 
          7       an esplanade with boutique shops on the first
 
          8       level, and residential on the top level.
 
          9            During -- the Miami Herald approved that
 
         10       rezoning; the Planning Commission approved that
 
         11       rezoning; and at first reading, the
 
         12       City Commission approved that zoning.
 
         13            And then the agreement was struck with the
 
         14       State to acquire the property as a replacement
 
         15       for the bayfront property that the State had
 
         16       released.  And it was provided that the City
 
         17       would set this property -- the acquisition of
 
         18       this property as its first priority to acquire,
 
         19       and the State would put it on the CARL list and
 
         20       fund it.
 
         21            The State would pay half, the City would
 
         22       pay half.  And if the City didn't have its half,
 
         23       the State would pay all of it, and the State
 
         24       would then recoup the money by the revenues from
 
         25       the Bayside marketplace.

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          1            The owners' zoning was denied.
 
          2       Commissioner Carollo said:  You know, it seems
 
          3       to me that if we want to buy that land, we
 
          4       cannot afford to rezone it now.
 
          5            And they can --
 
          6            (Commissioner Crawford exited the room.)
 
          7            MR. BRIGHAM:  -- grow bananas on it.  We
 
          8       filed a suit for judicial review, as anyone
 
          9       would do.  It took the courts a long time.  The
 
         10       City won that.  We did not get the rezoning.
 
         11            But in eleven years, the City has done
 
         12       nothing to proceed to acquire the property, and
 
         13       the Trustees have not done anything in
 
         14       eleven years to replace the asset that they gave
 
         15       to the City of Miami, and we wish to give that
 
         16       status report.  I have it here.
 
         17            We have checked recent sales that have
 
         18       occurred around the rim of Biscayne Bay that are
 
         19       single family zoning.  And we find that their
 
         20       prices reflect now that this property is worth
 
         21       12 to $14 million.
 
         22            Had it been acquired when the State thought
 
         23       the City should do so, had the City been
 
         24       forthcoming to try to acquire it from the
 
         25       owners, the price would have been much less.

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          1            So the assets of the public trust of the
 
          2       Trustees of the Internal Improvement Fund have
 
          3       suffered a loss on account of it.
 
          4            We have now filed --
 
          5            (Commissioner Crawford entered the room.)
 
          6            MR. BRIGHAM:  -- or we have instituted a
 
          7       court proceeding here in Leon County between
 
          8       these owners and the state, hoping that that
 
          9       would serve as a vehicle to resolve this
 
         10       matter.  And that through Court ordered
 
         11       mediation, much like with the tobacco industry,
 
         12       the State might choose to have a Court ordered
 
         13       mediation with these owners, and agree on a fair
 
         14       price.
 
         15            And if we cannot agree on a fair price,
 
         16       then have a jury determine a fair price
 
         17       according to fact and law.  And then have the
 
         18       City proceed to pay its share of that.
 
         19            And if I may, I would submit this written
 
         20       report, together with that sales map, for
 
         21       Your Honors as a status report on that project.
 
         22            MS. WETHERELL:  I'll take it.
 
         23            MR. BRIGHAM:  Thank you.
 
         24            COMPTROLLER MILLIGAN:  I move that we
 
         25       accept the report, Governor.

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          1            GOVERNOR CHILES:  Thank you, sir.
 
          2            The -- motion that we accept the report.
 
          3            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
          4            GOVERNOR CHILES:  Is there a second?
 
          5            Moved and seconded.
 
          6            Without objection, it's approved.
 
          7            MS. WETHERELL:  Governor, if I can, I think
 
          8       he mentioned, but I just wanted to make sure
 
          9       that the Trustees were aware that the owners of
 
         10       the property have filed a suit in Leon County
 
         11       Circuit Court in order to compel the Board of
 
         12       Trustees to acquire the property.
 
         13            And my understanding is that the Attorney
 
         14       General's Office has moved to dismiss it, and
 
         15       right now that action is pending.
 
         16            Okay.
 
         17            That property is on the CARL list.  I
 
         18       wanted you to be aware that we did put the
 
         19       property on the list as we agreed to do.
 
         20            Item 11 is a settlement agreement for
 
         21       Yamato Scrub CARL project.
 
         22            SECRETARY MORTHAM:  Move approval.
 
         23            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         24            GOVERNOR CHILES:  Moved and seconded.
 
         25            Without objection, it's approved.

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          1            GOVERNOR CHILES:  Item 12, a submerged land
 
          2       lease for an industrial docking facility.
 
          3            SECRETARY MORTHAM:  Move approval.
 
          4            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
          5            GOVERNOR CHILES:  Moved and seconded.
 
          6            Without objection, that's approved.
 
          7            MS. WETHERELL:  Substitute Item 13, we're
 
          8       recommending denial on a conceptual approval for
 
          9       a submerged land lease, and for severance.
 
         10            Governor, there are nine speakers who wish
 
         11       to make a presentation.  I'll introduce first
 
         12       Buddy Jacobs, representing the applicant --
 
         13            GOVERNOR CHILES:  Have we got some time
 
         14       constraints?
 
         15            MS. WETHERELL:  Would you like to put so
 
         16       much time per side?
 
         17            GOVERNOR CHILES:  Yes, ma'am.
 
         18            MS. WETHERELL:  Fifteen minutes per side,
 
         19       what would you prefer?
 
         20            GOVERNOR CHILES:  I think that would be
 
         21       fine.
 
         22            MS. WETHERELL:  All right.
 
         23            GOVERNOR CHILES:  Plenty.
 
         24            MS. WETHERELL:  Okay.  I'm going to call on
 
         25       Buddy Jacobs first representing the applicant.

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          1       He says he has some slides and a short video.
 
          2            GOVERNOR CHILES:  There's a little glare.
 
          3            MR. JACOBS:  She wouldn't loan me the bird
 
          4       as a hat.  He said I couldn't use --
 
          5            I just want to be sure.  We -- everybody
 
          6       can see the screen and the TV and the -- okay.
 
          7            Good morning, Governor, and members of the
 
          8       Cabinet.  It's my privilege here -- to be here
 
          9       today really, and at my age, I'm just glad to be
 
         10       anywhere.  But certainly this is a good place to
 
         11       be for us today.
 
         12            We're very excited in Nassau County to have
 
         13       an opportunity for 500 new jobs, and they're
 
         14       very high paying jobs, with a very good company.
 
         15            Let me first tell you what we're going to
 
         16       do.  With your indulgence, we're going to show
 
         17       you a slide show about -- very quick, brief
 
         18       overview of the site itself.  Then we'll have a
 
         19       very brief film about the company that's going
 
         20       to come to this particular area, and then I just
 
         21       have a few remarks at the end.
 
         22            First let me tell you that the Navy has
 
         23       established, as you -- as I'm sure you're aware,
 
         24       a program where they want to have the people of
 
         25       the ships stay with the ships in the time

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          1       they're in dry dock.  When they go out to sea
 
          2       and then come back sometimes during the year,
 
          3       they're separated from their families for
 
          4       ten months or more.
 
          5            So they want to have, in Mayport in
 
          6       particular, and all Navy ships, to be serviced
 
          7       and dry-docked within a reasonable range of that
 
          8       particular facility so that the people can live
 
          9       at home during the time they're in dry dock.
 
         10       And this is -- I think it's a very good program
 
         11       on their behalf.
 
         12            Our company, Metro Machine Corporation, has
 
         13       been in about -- for almost two years now,
 
         14       looking for a site within 75 miles of the
 
         15       Mayport area so that they could service the
 
         16       cruisers that are in port there that work with
 
         17       the aircraft carriers out of there.
 
         18            Now, they've explored sites in
 
         19       Jacksonville, St. Augustine, some in Clay County
 
         20       even, in trying to find this location.
 
         21            After a lot of due diligence, they come
 
         22       before you today with a site located in
 
         23       Nassau County.
 
         24            Metro Machine Corporation services only
 
         25       Navy ships.  They have facilities in Chester,

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          1       Philadelphia, they have them in Norfolk, and
 
          2       also in Erie, Pennsylvania.
 
          3            They have about 1500 employees.  It is an
 
          4       employee owned company.  They've received awards
 
          5       really from U.S. EPA for their type of work that
 
          6       they do.
 
          7            This company does -- has a new procedure
 
          8       that's patented called the CAPE system.  And
 
          9       we'll have a brief film about that.  But just
 
         10       let me tell you briefly what it does.
 
         11            It allows no air, water, or noise pollution
 
         12       at -- at any time during the -- the time the
 
         13       ship's in the dry dock while they're working on
 
         14       the hull because this system is an
 
         15       air conditioned, heated building that moves
 
         16       around the ship -- and you'll that -- during
 
         17       this time.  It's excellent for the employees, as
 
         18       well as for anybody around.
 
         19            First I'd like to introduce to you
 
         20       Jim Corbett, who owns Nassau Fertilizer, and he
 
         21       has a brief presentation to show you the site,
 
         22       and then we'll talk about that in just a minute.
 
         23            Jim.
 
         24            MR. CORBETT:  Hopefully you can see this
 
         25       pretty good.

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          1            And if it's necessary for me to step up to
 
          2       the mike, just say so.
 
          3            Going to start on the south end of our
 
          4       property and move out toward Amelia River.  And
 
          5       then head north up to Amelia River to the
 
          6       proximity of Fort Clinch State Park.
 
          7            This is on the southern end of the
 
          8       property.  You can see the sea wall --
 
          9            (Treasurer Nelson exited the room.)
 
         10            MR. CORBETT:  -- and some of the old
 
         11       fishing vessels that we've used through the
 
         12       years.  Our company was started in 1911.
 
         13            And I got a slide hung up.
 
         14            Some more good slides you can see.
 
         15            The company started -- our company started
 
         16       in 1911.  We were one of three separate fish
 
         17       plants that was on this site.  The other two
 
         18       were owned by larger conglomerations that when
 
         19       the fish began to die out in this area in the
 
         20       late '60s and early '70s, they packed their bags
 
         21       and went to one of their other locations.
 
         22            We were a small, independent.  We didn't
 
         23       have anywhere to go, so we stayed and acquired
 
         24       the property of all the other fish plants there.
 
         25            This is one of the docks.  We're moving up

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          1       to Amelia River now, heading northward toward
 
          2       the Fort Clinch State Park.
 
          3            Prior to the fish plants being at this
 
          4       location, there was a lumber mill back in the
 
          5       late 1800s and early 1900s.  It took the pine
 
          6       trees that are now used in the paper industry,
 
          7       made them into lumber, and exported them all
 
          8       over the world.
 
          9            This is one of the other docks that we've
 
         10       renovated.
 
         11            This dock is the site where we used to
 
         12       unload foreign vessels, bringing in fish meal
 
         13       from South America.  We started this in the mid
 
         14       to early '60s, continued it for several years.
 
         15            If I'm going too fast, say so, please.
 
         16            You can see a small railway we used to pull
 
         17       our first boats that we used to set our nets out
 
         18       of the water into that shed to work on them
 
         19       during our off-season.
 
         20            I think it's also important to note that
 
         21       Fort Clinch State Park became a part of our
 
         22       community in 1936, which was a full quarter of a
 
         23       century after the fish plants were already in
 
         24       existence.
 
         25            As we move up on the north end of our

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          1       property, you could see some barges, and a
 
          2       sunken dredge.  The dredge is the one that looks
 
          3       like it's got a smokestack or a chimney on top
 
          4       of it.
 
          5            This came to Fernandina as part of the
 
          6       dredging of the St. Mary's River channel.  And
 
          7       it sunk, and it was removed, placed in this site
 
          8       in 1988.  It was then sold to another salvage
 
          9       company that went bankrupt trying to literally
 
         10       remove it.
 
         11            And we're left with this dredge here, as
 
         12       well as several barges.  And you'll be able to
 
         13       see a little closer.
 
         14            (Treasurer Nelson entered the room.)
 
         15            MR. CORBETT: The barges are full of the
 
         16       styrofoam that was used to raise the dredge.
 
         17       They had a crane barge come along, and literally
 
         18       dig the styrofoam out, put it in these barges.
 
         19       When the company went bankrupt, they pushed the
 
         20       barges up on the bank.
 
         21            You might notice some of the growth on the
 
         22       barges, give you an indication of how long
 
         23       they've been there.
 
         24            That's a crane barge that was pushed up in
 
         25       that area about three years ago, maybe four, and

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          1       I guess the owner of that barge thought that was
 
          2       a good place to put it.  But it certainly isn't.
 
          3            This is looking back down.  We turned the
 
          4       boat around, and we're moving back toward the
 
          5       southern end.
 
          6            Now, I'd like to make just a couple other
 
          7       points.  In 1970, the State created the
 
          8       Fort Clinch State Park Aquatic Preserve.  Now,
 
          9       we, as adjacent property owners, were never
 
         10       given any notification that this was going --
 
         11       ready to take place.  Nor were we given any
 
         12       notification that it had taken place.
 
         13            It wasn't until 1985 that we had our first
 
         14       opportunity to speak to this matter, and that
 
         15       was when the State came to Fernandina seeking
 
         16       input for the management plan for their State
 
         17       park that they created 15 years earlier.
 
         18            It was at that time that we had the
 
         19       opportunity to ask intelligent questions, like,
 
         20       what is an aquatic preserve; what is it doing in
 
         21       front of our historically commercial and
 
         22       industrial place of business.  And we were told
 
         23       that Fort Clinch State Park Aquatic Preserve was
 
         24       created as an esthetic buffer around the
 
         25       Fort Clinch State Park.

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          1            And certainly we have no problem with the
 
          2       State creating an aquatic preserve around the
 
          3       State's property.
 
          4            Where we do have a problem is when the
 
          5       State arbitrarily extended the boundaries of
 
          6       that aquatic preserve past the boundaries of the
 
          7       State park, in front of our place of business,
 
          8       as well as another privately owned place of
 
          9       business between us and the State park.
 
         10            Now, it's been suggested to you that you
 
         11       deny this permit because of the inconsistencies
 
         12       and the fact that this program is contrary to
 
         13       the Fort Clinch State Park Aquatic Preserve
 
         14       Management Plan.
 
         15            Well, I would like to, as a representative
 
         16       of Nassau Fertilizer, suggest to you that the
 
         17       fact that there is an aquatic preserve in front
 
         18       of our place of business is contrary to, and
 
         19       inconsistent with what aquatic preserves were
 
         20       created for to begin with.
 
         21            And certainly to be more specific in the
 
         22       case of the Fort Clinch State Park Aquatic
 
         23       Preserve, the fact that it was -- these
 
         24       boundaries were extended beyond the boundaries
 
         25       of the State park would be contrary to, and

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          1       inconsistent with that also.
 
          2            Thank you very much.
 
          3            MR. JACOBS:  Let me -- if I might, walk
 
          4       over here, and I think I can talk loud enough
 
          5       where y'all can see -- give you more of an
 
          6       overview of where we are.
 
          7            This -- these -- this is an aerial
 
          8       photograph of the area we're talking about
 
          9       here.  And if you're at a State -- and the State
 
         10       park begins where my finger is, and that's about
 
         11       10 acres away from Nassau Fertilizer.  And it
 
         12       goes way around and up to where Fort Clinch is.
 
         13            If you start -- if you were standing -- and
 
         14       we've done this with the staff of DEP.  If
 
         15       you're standing at the campgrounds of the
 
         16       Fort Clinch State Park, if you're standing at
 
         17       the campground, you'd be right at this area --
 
         18       I'm sorry -- right in this area here, you cannot
 
         19       see Nassau Fertilizer right now, and you would
 
         20       not be able to see our activity that we will do
 
         21       there.
 
         22            We have a photograph here -- not a
 
         23       photograph -- but a drawing that shows you --
 
         24       this is done by Reynolds, Smith, and Hill
 
         25       that -- from that point, which is the furtherest

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          1       point out on the beach there at the State park,
 
          2       you can see Container Corporation, but you won't
 
          3       be able to see us or the masts of any -- of
 
          4       these ships that will be in the dry dock.
 
          5            You come on around from the fertilizer
 
          6       company, you'd have a boat yard here where they
 
          7       make steel hulled boats; you have a marina;
 
          8       there's a private dock; but then you have
 
          9       Container Corporation, which is a very large
 
         10       paper mill, right in this area.  You can see
 
         11       that -- you can see the smokestack and
 
         12       everything from the State park, but you can't
 
         13       see us.
 
         14            Coming around, here's Port at Fernandina.
 
         15       We have been proudly so -- we have 300 ship
 
         16       movements a year, of ships that will be larger
 
         17       than the ships we'll be servicing.  We're only
 
         18       going to have at most ten ship movements a year,
 
         19       because they bring the ship in, it stays, and it
 
         20       leaves the dry dock.
 
         21            But we have now 300 ships that come through
 
         22       here -- or 300 movements that come through here
 
         23       every year.
 
         24            So you have the Port at Fernandina.  Then
 
         25       you have -- commercial fishing fleet is here.

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          1       Then Fernandina Harbor -- Marina is right here,
 
          2       and then Rayonier.  You can also see Rayonier
 
          3       from the park site.
 
          4            So the issue is --
 
          5            She says I only have 2 minutes left.
 
          6            Governor, we have a film that shows you the
 
          7       dry dock at -- and its operation in Philadelphia
 
          8       that shows you that there is no pollution to the
 
          9       air, no pollution to the water.  If -- I've only
 
         10       got 2 minutes left.
 
         11            But I guess that would take up all the
 
         12       time, because it's about a 6-minute film, 6 or
 
         13       7 minute film.
 
         14            GOVERNOR CHILES:  Well, can you just show
 
         15       us a little bit of it?
 
         16            MR. JACOBS:  All right, sir.
 
         17            And, Governor, while you're -- while we're
 
         18       getting ready for that, too, we have some
 
         19       statements to make about the impacts and what we
 
         20       can do to mitigate those.  And we'd just like to
 
         21       get that in the record.
 
         22            We've actually cut our presentation in
 
         23       half.  So --
 
         24            (The videotape was published.)
 
         25            ANNOUNCER:  -- most important, coating

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          1       quality is improved by controlling dust,
 
          2       temperature, and humidity in the enclosure.
 
          3            CAPE has sufficient freedom of motion to
 
          4       permit full and efficient worker access to a
 
          5       ship's hull.  And also has the capability of
 
          6       containing and processing abrasive glass dust,
 
          7       spent and contaminated abrasive, paint-over
 
          8       spray, and VOCs, thereby virtually eliminating
 
          9       the qualities of these materials which are
 
         10       released to contaminate shipyard surroundings.
 
         11            CAPE at the same time provides a much more
 
         12       efficient means to collect, dispose of, recycle,
 
         13       and process contaminated abrasive and paint
 
         14       residue, and significantly reduces the
 
         15       disruption of the concurrent shipboard repair
 
         16       work, all while decreasing dry dock utilization
 
         17       times and ship out of service times.
 
         18            For cleaning and/or painting the exterior
 
         19       of the ship hull --
 
         20            (The videotape publication was ceased.)
 
         21            MR. JACOBS:  I just wanted you to see that
 
         22       it does work, and we are -- we are utilizing it,
 
         23       and it's -- it is -- there's no pollution to the
 
         24       air, water, and there's no noise pollution.
 
         25            What I would submit to you is we recognize

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          1       this is an aesthetic aquatic preserve, not a
 
          2       biological nor a scientific aquatic preserve,
 
          3       there is a distinction.  This is the only
 
          4       aquatic preserve of which I'm aware that there
 
          5       is written into that particular aquatic
 
          6       preserve, the recognition that there is
 
          7       Mr. Corbett's property there, that there is an
 
          8       ongoing commercial activity there, and the State
 
          9       will not discourage the expansion of that
 
         10       particular activity.  He in the current time has
 
         11       ships there that are -- that come in and get
 
         12       repaired, he has storage there on the site.
 
         13            We will clean the entire site up that's
 
         14       there today.  We will take the riprap that's
 
         15       from that site, and we will go around to
 
         16       Fort Clinch, and we will virtually stabilize
 
         17       what's happening to Fort Clinch now.  It's about
 
         18       to fall into the river.  It's of tremendous
 
         19       importance to the State that we do that.
 
         20            We will put 150,000 cubic yards of material
 
         21       at that site, we will engineer and stabilize the
 
         22       site with the existing materials that we have
 
         23       there, and there are plenty of them, riprap and
 
         24       docks and all kinds of things that make good
 
         25       core utilization for beach -- retention of the

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          1       beach sand there at Fort Clinch.
 
          2            Fort Clinch is about to fall in the ocean,
 
          3       as I say.  It's suffering from the absence of
 
          4       subjacent lateral support, which means it's on a
 
          5       cliff, and that shore has got to be stabilized.
 
          6       We work on that constantly.
 
          7            We will also -- you know, since this is an
 
          8       aquatic preserve, and it falls down in front of
 
          9       us, we have to -- we have to pay more than
 
         10       anybody else has to pay.  You have to pay two,
 
         11       maybe three times, depends on what you
 
         12       negotiate, for that material -- and for that
 
         13       land lease that we have there.
 
         14            So we're going to be paying for that.  We
 
         15       also agree to pay over the life of this
 
         16       contract, which we expect to be about
 
         17       20 years -- it's five years with rights of
 
         18       renewal -- we will pay $35,000 more a year,
 
         19       which is virtually $750,000 more than we have to
 
         20       pay for this particular land lease.
 
         21            We will also build a 2-acre park on this
 
         22       site with a boat ramp, and the -- other activity
 
         23       of things there for this -- for mitigation there
 
         24       for the citizens of Nassau County.  We will deed
 
         25       that boat ramp when we pie the property, which

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          1       we're allowed to do in the tenth year of our
 
          2       lease with Mr. Corbett.  We'll deed it to the
 
          3       citizens of Nassau County.
 
          4            We have agreed to do these things, and we
 
          5       think that this is in the public interest to,
 
          6       number one, bring us 500 jobs in Nassau County
 
          7       where we sorely need them, and these are good
 
          8       paying jobs.
 
          9            Number two, we're supporting the Navy.
 
         10       Because -- I know you'll here discussion there
 
         11       might be other sites.  We've looked and looked
 
         12       and looked, and we'd rather be in another site
 
         13       from the company standpoint, without having to
 
         14       go through this aquatic preserve exercise.  We
 
         15       don't think there is one.
 
         16            All we want to do is get the conceptual
 
         17       approval from you for a land lease.  Conceptual
 
         18       approval.  This has to come back to you, you
 
         19       have another shot at us.  We just need this to
 
         20       move forward to bid in the process.
 
         21            There's some discussion this is not an
 
         22       urgent thing.  You have received from the
 
         23       Department of Navy as of yesterday a letter that
 
         24       says this -- there is urgency, and that we must
 
         25       move forward, if you would allow us to do so.

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          1            Governor, I've tried to honor your
 
          2       time frame.  I don't know if I've been as good
 
          3       as I should have been.  And I --
 
          4            GOVERNOR CHILES:  Thank you --
 
          5            MR. JACOBS:  -- any questions, I'd be glad
 
          6       to answer.
 
          7            ATTORNEY GENERAL BUTTERWORTH:  Just one
 
          8       question, Buddy.
 
          9            When must this actual -- when is the RFP
 
         10       due, or --
 
         11            MR. JACOBS:  Our indications -- and the
 
         12       letter from the Navy, if I might just -- that
 
         13       might be the best way to say this to you.  Just
 
         14       read you the letter from the Navy.
 
         15            Got it here somewhere --
 
         16            ATTORNEY GENERAL BUTTERWORTH:  Is it due
 
         17       next week, or is it due in October?  I mean --
 
         18            MR. JACOBS:  No.  It's -- our problem is is
 
         19       that because you don't have a -- if you had a
 
         20       Cabinet meeting in August, we wouldn't be here
 
         21       today.
 
         22            But we've started since the first of May to
 
         23       get this conceptual approval.  We met with all
 
         24       the staff people that we could, and
 
         25       Secretary Wetherell's office and staff have been

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          1       great to us.  I mean, they have really worked
 
          2       hard, I think, and done what they could do.
 
          3            But we've met with everybody, and had a
 
          4       pre-application session, we've laid out from
 
          5       what we were going to be doing.  And everybody,
 
          6       I think's, worked as hard as they can.
 
          7            But the Navy says, and this is what they
 
          8       say:  We are currently working very hard to
 
          9       solicit a five-year Navy ship maintenance
 
         10       contract for the repair of about a dozen
 
         11       cruisers and destroyers home port in Mayport,
 
         12       Florida.
 
         13            We are behind our solicitation schedule
 
         14       presented at industry briefings with potential
 
         15       contractors in the spring of this year.
 
         16       Continued slips will jeopardize the start of
 
         17       this contract.  The request of Metro Machine,
 
         18       and any other potential bidder, in connection
 
         19       with this contract, is a matter of urgency and
 
         20       importance to us to get this maintenance
 
         21       contract established.
 
         22            They have -- it's our understanding that
 
         23       they have -- this has got to be available to
 
         24       them by April of next year.  Your permitting
 
         25       process is six months, our construction process

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          1       is eight months.  We're already in a deep hole,
 
          2       no pun intended, in order to get there.
 
          3            So I submit to you that it is a problem.
 
          4       But, again, we're seeking only conceptual
 
          5       approval.  We don't -- you don't finalize this
 
          6       until it comes back to you in its written land
 
          7       lease form.
 
          8            ATTORNEY GENERAL BUTTERWORTH:  Well, is the
 
          9       Navy going to put it out for bid, or are they
 
         10       just going to --
 
         11            MR. JACOBS:  They're going to put it out
 
         12       for bid, but, General Butterworth, nobody else
 
         13       has applied.  And other people -- there's an
 
         14       article in the Jacksonville paper on the
 
         15       11th of July, and it talks about the
 
         16       Jacksonville north Florida shipyards, and
 
         17       that -- another one, Jacksonville shipyards --
 
         18       they say the Jacksonville shipyard site is not
 
         19       available to us for this project.  Another one,
 
         20       a north Florida shipyard and repair says they
 
         21       wouldn't use -- they can't use their site.
 
         22            We've looked for appropriate sites, and
 
         23       believe me, Metro Machine out of Norfolk,
 
         24       Virginia, would love to go somewhere else, if
 
         25       that's possible.  They don't think it is.

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          1            And as a matter of fact, the Port of
 
          2       Jacksonville referred them to a realtor to help
 
          3       them find a site, and they couldn't find one.
 
          4       Worked about six months on it.
 
          5            So it's been long coming.  And we're not
 
          6       trying to -- you know, we just need conceptual
 
          7       approval is all we need.
 
          8            Okay.
 
          9            MS. WETHERELL:  Can I answer -- try to
 
         10       answer the General's question as well?
 
         11            MR. JACOBS:  Yeah.  Let me get out of your
 
         12       way --
 
         13            MS. WETHERELL:  We spoke with the Navy
 
         14       yesterday, and we've been told that they intend
 
         15       in the next three to four weeks to put out an
 
         16       RFP, and that RFP will be on the streets for
 
         17       about 45 days.
 
         18            So we would be back before you in early
 
         19       September before they even close out their RFP.
 
         20            We've also been told that there are several
 
         21       other applicants who are interested, but because
 
         22       of the Navy's time line, and because of the
 
         23       permitting requirements of the State, were
 
         24       afraid they could not reach it.
 
         25            So that was another option I was going to

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          1       put before you today.  There are some speakers
 
          2       here that I need to recognize in a minute.  But
 
          3       there are some other applicants that we have
 
          4       discussed.  The fact that if we could expedite
 
          5       permitting, keep a level playing field for every
 
          6       one of the applicants, we could possibly come up
 
          7       with a different site.
 
          8            And that is, you know, something that --
 
          9       that we would like to see considered, given the
 
         10       fact that we're going to have a very difficult
 
         11       time being able to meet State law and State
 
         12       rules for this particular site.
 
         13            You see the site, and we would love to have
 
         14       the site cleaned up.  It looks -- it's an
 
         15       horrendous looking site.  But the problems are
 
         16       within the aquatic preserve, not the upland.
 
         17       The upland is not in the aquatic preserve.
 
         18       We're talking about the water; and the amount of
 
         19       dredging and the impacts to the shoreline; and
 
         20       the conflict with Board of Trustees policies;
 
         21       the conflict with the State Lands Management
 
         22       Plan; the conflict with the Parks Management
 
         23       Plan; and the conflict with Florida law,
 
         24       Chapter 258; and the rules.
 
         25            So we have a lot of hurdles to get over

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          1       with this particular site.
 
          2            TREASURER NELSON:  Governor, may I ask a
 
          3       question?
 
          4            GOVERNOR CHILES:  Yes, sir.  At some stage
 
          5       we need to hear the other speakers.  But go
 
          6       ahead.
 
          7            TREASURER NELSON:  Well, I can defer.
 
          8            GOVERNOR CHILES:  Maybe --
 
          9            MS. WETHERELL:  Okay.  If I can --
 
         10            GOVERNOR CHILES:  Maybe we'll get a chance
 
         11       for your question after we hear the speakers.
 
         12            MS. WETHERELL:  Okay.
 
         13            TREASURER NELSON:  Well, I wanted -- I
 
         14       would like Mr. Jacobs to clear up the fact of
 
         15       potential other sites.
 
         16            It was my understanding in reading this
 
         17       particular letter from the U.S. Navy, what you
 
         18       just read, that they are basically saying that
 
         19       if they can't get in the Mayport vicinity a
 
         20       floating dry dock facility for these cruisers
 
         21       and destroyers, that conceivably, they -- the
 
         22       only place left would be down there where the
 
         23       big carrier is at Mayport, and that would
 
         24       displace 10,000 jobs.  Is my understanding of
 
         25       what the Navy --

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          1            MR. JACOBS:  That is --
 
          2            TREASURER NELSON:  -- is saying.  Is that
 
          3       correct?
 
          4            MR. JACOBS:  That is correct.  This is
 
          5       their policy, they believe in it, they want to
 
          6       have the people stay close to their homes during
 
          7       this dry dock experience.
 
          8            And so they want it within 75 miles.  Now,
 
          9       I know that -- and they're -- they're moving
 
         10       that direction.  Now, if they can't get this
 
         11       site -- if there other sites out there, that's
 
         12       fine.
 
         13            None of them -- none of those people have
 
         14       come forward to seek permits.  Everybody knows
 
         15       that -- that the thing's out there.  They've had
 
         16       a briefing back in the spring with the Navy.
 
         17       There's constant, everyday dialogue going on,
 
         18       and nobody's stepped forward.
 
         19            I don't -- I think as we move forward, this
 
         20       aquatic preserve is certainly -- it is, quote,
 
         21       unquote an aesthetic aquatic preserve.
 
         22            You noted the barges and the dredge that
 
         23       are seated in the middle of that aquatic
 
         24       preserve, they've been there for eight years.
 
         25       And the water washes over them every day and

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          1       puts that styrofoam up on the beach and all
 
          2       around, and nobody from the State's gone out and
 
          3       said, gosh, this is terrible, we need to do
 
          4       something about it.
 
          5            We're going to clean all that up.  Get rid
 
          6       of those barges, get rid of those -- the
 
          7       dredge.  And the dredge is not even if -- our
 
          8       footprint.  We're going to get rid of the dredge
 
          9       anyway, as part of our -- in the public interest
 
         10       effort.
 
         11            TREASURER NELSON:  Governor, I just want to
 
         12       make one observation.  I went to see this site
 
         13       last Friday.  And what struck me is the fact
 
         14       that there is a 55 foot deep channel that is
 
         15       about 50 feet off of the shore.
 
         16            So what you're talking about dredging is
 
         17       not what I picture as an aquatic preserve that
 
         18       is this long, lowly lot of sea grasses and very
 
         19       shallow waters.  You've got this deep channel
 
         20       that's coming right up almost next to the shore,
 
         21       which is what the -- they would then further dig
 
         22       out and have where this floating dry dock would
 
         23       come in there to do this repair.
 
         24            So I just want to give you that observation
 
         25       for whatever it's worth.

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          1            MR. JACOBS:  Yes, sir.
 
          2            GOVERNOR CHILES:  We better move on --
 
          3            MR. JACOBS:  All right, sir.
 
          4            GOVERNOR CHILES:  -- to hear from some
 
          5       other people.
 
          6            MR. JACOBS:  Thank you.
 
          7            I guess I won't get another chance.  Okay.
 
          8       Thank you.
 
          9            MS. WETHERELL:  For time sake, let me go
 
         10       ahead and call up the five individuals,
 
         11       Jay Yarnell, Joan Altman, Julie Altman,
 
         12       Erwin Duncan, and John Glenn.
 
         13            MR. YARNELL:  Good morning.  My name is
 
         14       Jay Yarnell.  I'm a resident of the City of
 
         15       Fernandina Beach.  I'm a registered professional
 
         16       engineer in the state of Florida, in fact,
 
         17       owning my own company in Fernandina Beach, which
 
         18       depends heavily upon industry.  I sell currently
 
         19       equipment to industry, I sell equipment to these
 
         20       ships that are being repaired.
 
         21            It's in my best interest to have this
 
         22       facility to come to Florida, and I hope that it
 
         23       does come to Florida.  But the problem I have in
 
         24       speaking -- well, I don't have a problem, I'm
 
         25       glad to speak in opposition -- is because they

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          1       picked the worst possible site that they could
 
          2       pick.
 
          3            I sent a fax to y'all's offices outlining a
 
          4       number of items, and I've brought some backup
 
          5       material to that.  I'd like to real quickly just
 
          6       kind of run through those in that first I
 
          7       agree -- and the people who I speak with in the
 
          8       city -- not the City in the government sense,
 
          9       the residents of the city.
 
         10            -- we agree emphatically with the DEP's
 
         11       findings.  This site is entirely within an
 
         12       aquatic preserve.  One major concern that I
 
         13       have, and that has been expressed to me also by
 
         14       others in the community is if this project's
 
         15       approved, even conceptually, it's going to set a
 
         16       precedent.
 
         17            And then anybody that wants to build
 
         18       anything in any sort of aquatic preserve, State
 
         19       park, or conservation area, is going to be able
 
         20       to point to it, and say, you have to let me
 
         21       build my lumber mill, you have to let me build
 
         22       my -- put my junkyard in here, whatever they
 
         23       want to do.
 
         24            You let this big facility go in to that
 
         25       aquatic preserve, and now you've broken the

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          1       trust of taking care of this land, and you must
 
          2       let us come in and do what we want to do.
 
          3            There are a number of issues, I'll try to
 
          4       be real brief.  The City of Fernandina Beach
 
          5       right now is in a crisis almost over growth
 
          6       management.  You may have seen last summer the
 
          7       article of the Florida Wall Street Journal
 
          8       concerning the growing pains we're going through
 
          9       trying to come to grips with what the rest of
 
         10       Florida came to about ten years ago.
 
         11            In the area of transportation, our roads on
 
         12       the island and in the city are in a crisis.
 
         13       State Road A1A between I-95 and Amelia Island,
 
         14       which would be the main access for these
 
         15       supposed 500 jobs coming in, is above -- exceeds
 
         16       its level of service, and is currently the
 
         17       subject of intense FLDOT study.
 
         18            Eighth Street and Fourteenth Streets in the
 
         19       city are the only roads that go from the access
 
         20       to the island up to this area.  Both of those
 
         21       streets have exceeded their level of service by
 
         22       the 1995 DOT traffic counts.
 
         23            The site of this facility will require that
 
         24       hazardous waste to be removed from the site
 
         25       would be transported through our residential

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          1       neighborhoods to get them off of the island.
 
          2            The -- there'll be other speakers to speak
 
          3       how this project abuts the area of Old Town,
 
          4       which an historical residential district.  It's
 
          5       the third oldest settlement in Florida, and the
 
          6       last Spanish plat in the western hemisphere that
 
          7       is still in the original plat.
 
          8            And by putting this project, which is
 
          9       completely out of scale with the other items
 
         10       that are in the -- developments that are in this
 
         11       area, the imminent enhancement the City has
 
         12       planned for this area would just be completely
 
         13       brought to a halt.
 
         14            The project abuts the historic Fort Clinch,
 
         15       and it also abuts Fort St. Carlos Archeological
 
         16       site.
 
         17            In this packet that I've brought, I've also
 
         18       brought backup from the Department of Interior,
 
         19       and from the Department of Natural Resources,
 
         20       whenever it existed, showing that this is a
 
         21       critical manatee habitat area.  The entire area
 
         22       around the exit of Egans Creek; Tiger Island,
 
         23       which is a little island out off of the shore;
 
         24       and Egans Creek itself.
 
         25            I live on Egans Creek, and I personally

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          1       observe manatees as far up as where A1A crosses
 
          2       Egans Creek.
 
          3            In the interest of time, I'll step aside
 
          4       and let the other speakers speak.  And if you'd
 
          5       like this backup information, I can leave it
 
          6       with whoever needs it.
 
          7            GOVERNOR CHILES:  Thank you, sir.
 
          8            MR. YARNELL:  Thank you.
 
          9            MS. JOAN ALTMAN:  Governor Chiles and
 
         10       Cabinet, my name's Joan Altman.  And I live in
 
         11       Old Town.  I'm a Chair for the grass roots group
 
         12       environmental -- I'm the Chair of FATE, which
 
         13       means Fernandina's -- no.  Friends of
 
         14       Amelia Island's Threatened Environment.
 
         15            As chair of the grass roots group of
 
         16       environmentally conscientious people, we
 
         17       think -- thank you for this opportunity to
 
         18       express our concerns and reservations in regard
 
         19       to this proposed facility.
 
         20            We have no lobbyist, we don't even know the
 
         21       DEP staff by their first names.  We are only
 
         22       here to support DEP's recommendation for denial,
 
         23       because we have recognized the strength this
 
         24       project carries, and can relate to the
 
         25       environment -- environment's inability to speak

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          1       out for its survival.
 
          2            The City has a current moratorium for
 
          3       bidding service being provided to noncity
 
          4       users.  The decision to annex the entire island
 
          5       into the City goes to referendum in
 
          6       November '96.
 
          7            If, in fact, this area is annexed, the
 
          8       dry dock facility will be in violation of our
 
          9       comp plan.  Objective V (B)05,
 
         10       policy V (B)05.01:  Marinas and ports shall not
 
         11       be located in or adjacent to Department of
 
         12       Natural Resources manatee designated sanction
 
         13       areas, and areas of essential manatee habitat,
 
         14       foraging areas in or adjacent to aquatic
 
         15       preserves, and Class water II -- Class II
 
         16       waters.
 
         17            The storage of toxic materials, and a
 
         18       100-year flood plan is a violation of FEMA law,
 
         19       and the City's comp plan, Objective 1.02.
 
         20            The ecosystem in Egans Creek basin is very
 
         21       fragile, and plays a very important role in the
 
         22       ocean's food chain, as all marshlands do on a
 
         23       barrier island.
 
         24            Before the extensive dredging for this
 
         25       project is considered, and it is extensive, it's

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          1       half the size of the channel that was dredged
 
          2       for the nearby submarine base.
 
          3            A hydrological computer model showing the
 
          4       possible consequence of this dredge could be
 
          5       most informative.  This could alleviate the fear
 
          6       that if extensive erosion occurs because of this
 
          7       activity, maintenance dredging may be required,
 
          8       and the effective waters would become -- could
 
          9       possibly become barren of most sea life, and
 
         10       possibly affect the surrounding marshlands.
 
         11            We are not experts, and, therefore, cannot
 
         12       prove our concerns are justified.  But neither
 
         13       can the experts guarantee that our environment
 
         14       is not at risk.
 
         15            There are many  implications regarding this
 
         16       facility at this site.  We must be determined
 
         17       if -- we must determine is:  Does the -- having
 
         18       this dry dock at this location justify the
 
         19       costs, economically, and environmentally.
 
         20            Will Fort Clinch be a haven for animals and
 
         21       people alike, with the lights and noise of such
 
         22       a 24-hour a day operation?
 
         23            Will the manatee have to find another route
 
         24       through the channel to its foraging area.
 
         25            Will Tiger Island, with its undocumented

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          1       archaeological sites, erode into the river?
 
          2            And will the local crabber be able to hold
 
          3       on to his livelihood until the dredging is
 
          4       complete, and the crabs come back; if, in fact,
 
          5       they ever do.
 
          6            Will the installation of sewers and water
 
          7       to this location in any way disturb Egans Creek
 
          8       basin?
 
          9            And will the City allow toxic waste to
 
         10       transgress our streets.
 
         11            Wouldn't it make more sense to put this
 
         12       project in an area with other dry docks, perhaps
 
         13       even Blount Island, where the impact has already
 
         14       occurred.
 
         15            Maybe the State could help Mr. Corbett find
 
         16       another use for his property, as lucrative as
 
         17       this one, but more conducive to the environment.
 
         18            We agree with the Department of
 
         19       Environmental Protection's recommendation to
 
         20       deny, and plead with you to give this careful
 
         21       consideration.  What you decide here today will
 
         22       affect all parks, aquatic preserves, and
 
         23       conservation areas for future generations.
 
         24            Thank you.
 
         25            GOVERNOR CHILES:  Thank you, ma'am.

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          1            MR. DUNCAN:  Governor Chiles and Cabinet
 
          2       members, my name is Erwin Duncan.  I represent
 
          3       the Nassau County Sierra Club.  I thank you for
 
          4       the opportunity to speak.
 
          5            The existing facility at this location was
 
          6       grandfathered when the aquatic preserve was
 
          7       created.  It was not excluded, it was
 
          8       grandfathered.
 
          9            Because of the depletion of the menhaden
 
         10       fish and the menhaden industry has ceased to
 
         11       operate as such many years ago.  Even if this
 
         12       site had been excluded from the preserve, the
 
         13       possible impact this proposed dry dock could
 
         14       have on nearby preserve would cause reason for
 
         15       debate.
 
         16            On May 22nd, 1990, the City of
 
         17       Fernandina Beach received a letter from the
 
         18       Department of Natural Resources describing a
 
         19       green line that had developed around
 
         20       Fort Clinch.  This line represents a peripheral
 
         21       zone around the park, within which new
 
         22       activities may have an impact on resources
 
         23       associated with this unit of the Florida park
 
         24       system.
 
         25            It is based on resource concerns such as

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          1       hydrology, wildlife population, and the
 
          2       aesthetic quality of the recreation of this
 
          3       site.
 
          4            One of the list of concerned was Item 6,
 
          5       named Buffer, which states:  Buffer zones are
 
          6       necessary around State park lands to a
 
          7       particular site against potentially incompatible
 
          8       adjacent land uses, or enhance the experience of
 
          9       park visitors.
 
         10            Adjoining properties, which are partially
 
         11       or entirely surrounded by a park are of
 
         12       particular concern.
 
         13            In addition to such tracts, a zone of
 
         14       varying width that rings the park is further
 
         15       designated as buffer.  If nearby properties have
 
         16       already undergone development, proposed changes
 
         17       in land use would yet concern the Division of
 
         18       Recreation and Parks, since other uses might
 
         19       have a more profound effect on those -- than
 
         20       those that have the current utilization.  The
 
         21       Agency should be advised of any proposed change
 
         22       that would affect these areas.
 
         23            The placing of this facility at the
 
         24       proposed site would be a violation of Florida
 
         25       statute, Florida codes, FEMA law, and possibly

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          1       our City Comprehensive Land Management Plan.
 
          2       Perhaps there's a better use of this property.
 
          3       One which would be totally dedicated to the
 
          4       public interest.  May we suggest that the
 
          5       property be purchased by the trust for public
 
          6       lands and become a part of the State park.
 
          7            Mr. Corbett has expressed concern for the
 
          8       remaining employees for whom he has felt
 
          9       responsible.  Perhaps they could be hired by the
 
         10       Park Service to develop and maintain this area.
 
         11            Department of Environmental Protection has
 
         12       listed more than enough legal reasons for this
 
         13       project to be denied.  We agree with their
 
         14       findings, and urge you to deny this permit.
 
         15            Thank you.
 
         16            GOVERNOR CHILES:  Thank you, sir.
 
         17            MS. JULIE ALTMAN:  My name is Julie Altman,
 
         18       and I am a citizen of Old Town/Fernandina
 
         19       Beach -- or Fernandina rather, which is
 
         20       approximately 600 feet from the proposed
 
         21       facility, and is part of the Fernandina Beach
 
         22       historic district.  It is the third oldest city
 
         23       in Florida, and the last settlement to be
 
         24       platted by the Spanish in the western
 
         25       hemisphere, and the only Spanish settlement with

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          1       its grid still intact.
 
          2            On the bluff of the Amelia River,
 
          3       Plaza San Carlos is the site of the
 
          4       Fort San Carlos and Fort San Fernando.  This
 
          5       side is part of the Fort Clinch State Park.
 
          6            During the first three decades of the
 
          7       19th Century, Old Town was the busiest port in
 
          8       North America, and the most important shipping
 
          9       trade station for the entire western hemisphere.
 
         10            After Thomas Jefferson lowered the boom on
 
         11       international trade and domestic ports with the
 
         12       1807 Embargo Act, Old Town, totally under
 
         13       Spanish rule, proposed by -- prospered --
 
         14       excuse me -- by opening its port to legal and
 
         15       illegal world traders.  Over 400 ships a day
 
         16       sailed into Fernandina Harbor.
 
         17            The ban on slave importation in 1808 made
 
         18       Old Town/Fernandina a gold mine for smuggling
 
         19       African and Caribbean slaves into Florida and
 
         20       throughout the United States.
 
         21            A population of 800, even after the
 
         22       Civil War, would have made Old Town the largest
 
         23       city in the south.
 
         24            Finally, in 1990, Old Town/Fernandina was
 
         25       placed on the National Register of Historic

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          1       Places.  And the City of Fernandina Beach is in
 
          2       the process of rehabilitating and restoring --
 
          3       restoration of this area.
 
          4            Reenactments were started on the plaza
 
          5       two years ago, and public interest has
 
          6       increased.
 
          7            This proposed dry dock facility would
 
          8       preclude the implementation -- excuse me -- the
 
          9       enhancement that the City has planned for the
 
         10       Old -- for Old Town.
 
         11            The noise and lights from the proposed
 
         12       facility would destroy any ambiance that the
 
         13       historic recognition is attempting to preserve,
 
         14       discourage any new residential building in this
 
         15       area, and negatively impact tourism in Old Town.
 
         16            The property value would, therefore,
 
         17       decrease, and my bed and breakfast could
 
         18       possibly be forced to close.
 
         19            According to the National Register of
 
         20       Historic Places, Federal funding will not
 
         21       support any project which threatens the
 
         22       existence of any site on the National Register.
 
         23            Please deny this permit, as it has the
 
         24       potential to inhibit the preservation and
 
         25       restoration of Old Town.

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          1            Thank you.
 
          2            GOVERNOR CHILES:  Thank you, ma'am.
 
          3            MR. GLENN:  Governor Chiles, members of the
 
          4       Cabinet, appreciate the opportunity that
 
          5       remains.
 
          6            My name is John Glenn.  I am here
 
          7       representing a public interest group called the
 
          8       Taxpayers Protection Committee.  We were formed
 
          9       in 1990-91 season to combat an unwarranted raid
 
         10       on the -- on the assets of the people of
 
         11       Fernandina Beach and Nassau County in the guise
 
         12       of a community redevelopment area.
 
         13            The scheme started out at 11 percent of the
 
         14       tax base, and finally the City imposed upon its
 
         15       citizens a seven-and-a-half percent of the tax
 
         16       base, Tax Increment Financing Area.
 
         17            We had time, and we had the wherewithal in
 
         18       that situation, because we could go to the
 
         19       voters with a petition, which we did.  And we
 
         20       were able to overcome an ill-advised move by the
 
         21       elected representatives.  We overcame it in two
 
         22       ways.  We passed a charter change that limited
 
         23       tax increment financing areas to 2 percent of
 
         24       the tax base.  And we also unelected two
 
         25       incumbent commissioners.

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          1            We don't have that power nor that time nor
 
          2       that mechanism in this case.  You are the only
 
          3       people that vote on this.
 
          4            The fact that it's here in the first place,
 
          5       being fast tracked, makes it impossible for the
 
          6       citizens of Fernandina Beach, Amelia Island,
 
          7       Nassau County to give any kind of a proper
 
          8       response to the things that you've been hearing,
 
          9       the things you've been reading.
 
         10            But I urge you to listen very, very closely
 
         11       to your Secretary Wetherell, and notice that
 
         12       you're getting information that just came in
 
         13       yesterday, and information that just came in
 
         14       today.  And to do anything about this would be a
 
         15       very hasty door opener, a nose under the tent,
 
         16       and a sure thing to be further expanded, and
 
         17       that the assurance is given to you today
 
         18       verbally, not under oath, without any kind of
 
         19       proof.  We're going to have a hard time proving
 
         20       to you that they have -- could not be lived up
 
         21       to.
 
         22            And so I urge you to support your agency
 
         23       and deny this.  And tell them to look a little
 
         24       more strongly under the circumstances that there
 
         25       are places available, whether it takes a little

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          1       more looking.
 
          2            Thank you.
 
          3            GOVERNOR CHILES:  Thank you.
 
          4            MS. WETHERELL:  That concludes the
 
          5       speakers.
 
          6            COMMISSIONER BROGAN:  Governor --
 
          7            GOVERNOR CHILES:  Yes, sir.
 
          8            COMMISSIONER BROGAN:  -- I appreciate the
 
          9       testimony on all sides of the issue.  We've
 
         10       talked about this a great deal, as I'm sure all
 
         11       of you have with your staff members as well.
 
         12            I did so based on the belief that there was
 
         13       a particular urgency regarding a vote on this
 
         14       issue, either for or against, and I believe
 
         15       everyone came to the table today, including the
 
         16       speakers, working under that proposition.
 
         17            This is, obviously, a more complicated
 
         18       issue than it appears to be at first blush.  I
 
         19       think the CAPE system that we saw today, and
 
         20       that I've looked at, is a most intriguing and
 
         21       interesting approach to an old, old dilemma, and
 
         22       that is how to repair and refit ships without
 
         23       causing harm to the environment.  And it looks
 
         24       very interesting in that regard.
 
         25            There are also some siting issues that

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          1       we've heard about today, as well as some
 
          2       statutory issues that the Secretary, I think,
 
          3       has expressed some concern over regarding the
 
          4       RFP, and other people's opportunity to make
 
          5       their claim to such an RFP known.
 
          6            The mitigation requirements that I've seen
 
          7       in the -- in the process give me some pause as
 
          8       well.  I think that there may be some excessive
 
          9       requirements in the mitigation information.
 
         10            All in all, and knowing what I believe I
 
         11       know now, which is the timing that the
 
         12       United States Navy is really making available
 
         13       regarding the RFP, the Secretary's concerns
 
         14       regarding statute, the site issues, as well as
 
         15       some of the -- the issues that we've heard
 
         16       expressed by the citizens, as nonelegant as this
 
         17       may be, I personally would like to have some
 
         18       more time to consider this, that I didn't know I
 
         19       was going to have made available based on the
 
         20       time I thought I was working with.
 
         21            So, again, as anticlimatic as it may
 
         22       appear, I'd like to see this issue deferred.
 
         23            ATTORNEY GENERAL BUTTERWORTH:  I second
 
         24       that.
 
         25            COMMISSIONER BROGAN:  I think by doing

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          1       that, that would give us some time to continue
 
          2       to discuss it, still give the vendor the
 
          3       opportunity to meet the Navy's RFP response,
 
          4       which I think is important to them, in deference
 
          5       to them.  But I think give all of us an
 
          6       opportunity to catch our collective breath and
 
          7       come back in September and consider this issue
 
          8       with a little more time.
 
          9            GOVERNOR CHILES:  It's been moved and
 
         10       seconded on a motion to defer.
 
         11            Is there discussion?
 
         12            TREASURER NELSON:  Yes.  I just want to
 
         13       ask, Governor, of Secretary Wetherell, you
 
         14       mentioned that there were some other sites.
 
         15            Can you tell us what those are?
 
         16            MS. WETHERELL:  Well, we talked yesterday,
 
         17       as I said, to both the Navy and to the
 
         18       Port Authority.  We were led to believe that
 
         19       there were about four other applicants who were
 
         20       interested with different sites, but that
 
         21       because of the Navy's -- what they perceived as
 
         22       the Navy's time frame, and what they perceived
 
         23       as the State's permitting requirements, that
 
         24       they could not meet those hurdles.
 
         25            So, you know, what -- what I'm saying to

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          1       you today is that we're committed to working
 
          2       with the Navy and committed to the State in
 
          3       terms of trying to provide these jobs.
 
          4            So we will try to get with everyone who's
 
          5       interested, all interested parties, ASAP, and
 
          6       look at any other applications, any other site,
 
          7       and meet the Navy's deadline.
 
          8            That was our commitment to the Navy, that
 
          9       we would continue to work with them on their
 
         10       deadline.  And so we need to make that known to
 
         11       any other applicant, that we will work with them
 
         12       in an expedited permitting way, as well as this
 
         13       applicant.
 
         14            This applicant has in good faith worked
 
         15       very diligently to get ready for the RFP, which
 
         16       is not yet on the street.  And when it comes out
 
         17       on the street in three to four weeks, hopefully
 
         18       there will be some other applicants from which
 
         19       to make an appropriate --
 
         20            GOVERNOR CHILES:  So the RFP --
 
         21            MS. WETHERELL:  -- site selection.
 
         22            GOVERNOR CHILES:  -- is to come out on the
 
         23       street in three or four weeks?
 
         24            MS. WETHERELL:  That's right.
 
         25            And then --

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          1            GOVERNOR CHILES:  Then it's to be a 45-day
 
          2       RFP?
 
          3            MS. WETHERELL:  That's what the Navy tells
 
          4       us.
 
          5            GOVERNOR CHILES:  So we're looking at at
 
          6       least 60 days?
 
          7            MS. WETHERELL:  At least 60 days, because
 
          8       they're telling us it won't even come out for
 
          9       three to four weeks.  And then they'll have a
 
         10       month-and-a-half on the street.  So we will be
 
         11       back before you before they close the RFP.
 
         12            COMPTROLLER MILLIGAN:  Governor, if I may
 
         13       make --
 
         14            GOVERNOR CHILES:  Yes, sir.
 
         15            COMPTROLLER MILLIGAN:  -- a comment.
 
         16            The RFP process, if it were to hit the
 
         17       street in the next three or four weeks, means
 
         18       that anybody that is going to participate in
 
         19       that process, will make a significant investment
 
         20       in terms of preparing their proposal.  And that
 
         21       process is -- starts as soon as -- or even
 
         22       before the RFP hits the street.
 
         23            And so I think that we would be tying the
 
         24       hands of -- of this particular company -- and
 
         25       perhaps any other company -- by deferring.

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          1       We're talking about several weeks eating into
 
          2       their proper -- proper preparation of a
 
          3       proposal.  At great cost.
 
          4            So I -- I -- I think rather than deny, I
 
          5       would like to see defer.  But we are talking
 
          6       about conceptual approval here.  And before I
 
          7       would vote on a -- on a defer, I'd like to ask
 
          8       one question, and that has to do with the
 
          9       channel, and exactly what the flow of traffic is
 
         10       in and out of that area.
 
         11            Can somebody address that for me?
 
         12            You could use -- you would better serve me
 
         13       using the aerial photograph, and show me that --
 
         14       where the channel is -- and I recognize you
 
         15       don't show all of the water --
 
         16            MR. JACOBS:  I -- yes.  The channel is off
 
         17       right here that comes in -- Old Town they
 
         18       talk --
 
         19            COMPTROLLER MILLIGAN:  Where is the entry
 
         20       into that channel?
 
         21            MR. JACOBS:  Right up here.  This is the --
 
         22            COMPTROLLER MILLIGAN:  Okay.  So the
 
         23       traffic flow -- the traffic flow is down through
 
         24       the aquatic preserve today --
 
         25            MR. JACOBS:  Yes, sir.

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          1            COMPTROLLER MILLIGAN:  -- with lots and
 
          2       lots of ships, large ones and small ones, as
 
          3       well as sport craft, going through the aquatic
 
          4       preserve; is that --
 
          5            MR. JACOBS:  Yes, sir.
 
          6            COMPTROLLER MILLIGAN:  -- correct?  Okay.
 
          7            MR. JACOBS:  The dredging that was
 
          8       discussed earlier by Commissioner Nelson occurs
 
          9       right in this area.
 
         10            COMPTROLLER MILLIGAN:  Yeah.  I understand
 
         11       that.  I was curious as to the traffic flow of
 
         12       ships --
 
         13            MR. JACOBS:  Yeah.
 
         14            COMPTROLLER MILLIGAN:  -- both personal, as
 
         15       well as commercial.  And they are through that
 
         16       aquatic preserve today.
 
         17            MR. JACOBS:  We have been designated by the
 
         18       Legislature two years ago as the entryway to the
 
         19       Intracoastal Waterway system in Florida.  We
 
         20       have quite a -- when people come in from up
 
         21       north with their yachts or whatever, any kind of
 
         22       boat, they come right by Fernandina --
 
         23            COMPTROLLER MILLIGAN:  Okay.
 
         24            MR. JACOBS:  -- and the entrance for the
 
         25       Intracoastal Waterway.

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          1            This -- Old Town is this area right here.
 
          2       And this is Container here, and we're over
 
          3       here.  So it gives you an idea.  They're there,
 
          4       and --
 
          5            COMPTROLLER MILLIGAN:  Okay.  No.  I was
 
          6       just interested in the ship and boat traffic --
 
          7            MS. WETHERELL:  Yeah.  Sir, what we were --
 
          8            COMPTROLLER MILLIGAN:  -- the preserve
 
          9       area.
 
         10            MS. WETHERELL:  -- what we had been told is
 
         11       that that channel is in the 30 to 50 foot
 
         12       range.  And I guess channels are measured by
 
         13       their shallowest, because that's the limitation
 
         14       for a vessel.
 
         15            So it's -- you know, you've got
 
         16       considerable dredging to do there.  But it's the
 
         17       size of the dry dock area --
 
         18            GOVERNOR CHILES:  What -- what is the
 
         19       dredging that has to be done and --
 
         20            MS. WETHERELL:  I'll let Jeremy --
 
         21            GOVERNOR CHILES:  -- how much of that and
 
         22       where --
 
         23            MS. WETHERELL:  Yeah.
 
         24            MR. CRAFT:  I don't know that I was clear
 
         25       in your question, Governor?

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          1            GOVERNOR CHILES:  What is the dredging that
 
          2       has to be done.
 
          3            MR. CRAFT:  There is an area of currently
 
          4       very shallow water adjacent to the channel that
 
          5       would have to be dredged down to -- on the order
 
          6       of 50 feet.  That allows the dry dock facility
 
          7       itself to sink down, the cruiser to float into
 
          8       it, and then the dry dock facility to be
 
          9       refloated and lift the entire ship out of the
 
         10       water.
 
         11            That's why it has to go so much deeper than
 
         12       the draft of the ship, it's because it's an
 
         13       extra piece of equipment under the ship.
 
         14            COMPTROLLER MILLIGAN:  There is no
 
         15       requirement this time to dredge the existing
 
         16       channel as far as we know, in terms of the draft
 
         17       of the aegis cruiser, or for that matter, the
 
         18       drafts of the commercial ships that come through
 
         19       there.
 
         20            MR. CRAFT:  As far as I know, there is
 
         21       none.  The Corps of Engineers does maintain that
 
         22       area regularly, however, and --
 
         23            COMPTROLLER MILLIGAN:  Sure.
 
         24            MR. CRAFT:  -- and --
 
         25            COMPTROLLER MILLIGAN:  I --

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          1            TREASURER NELSON:  It would --
 
          2            COMPTROLLER MILLIGAN:  -- would emphasize
 
          3       that right now, there is a tremendous amount of
 
          4       boat traffic that goes through the aquatic
 
          5       preserve.
 
          6            Is that a fair statement?
 
          7            MR. CRAFT:  Yes, sir.  A good deal of it.
 
          8            COMPTROLLER MILLIGAN:  That's my point.
 
          9            GOVERNOR CHILES:  So the question that DER
 
         10       is concerned about -- or one of the questions is
 
         11       whether the dredging of that channel will affect
 
         12       the water quality or water quantity or the water
 
         13       provisions of the aquatic preserve; is that
 
         14       right?
 
         15            MR. CRAFT:  Yes, sir.  That's one of the
 
         16       main issues.  Also, by digging this deep hole,
 
         17       there will be a tendency for the area to
 
         18       sediment in, and the long-term maintenance of
 
         19       this sand operation as it sediments in is of
 
         20       concern.
 
         21            It's also right now a very shallow water
 
         22       area that has a high diversity of biota on it,
 
         23       comparable diversity to that found in the Park.
 
         24       And that is one of the concerns also that has to
 
         25       be considered under the DEP permitting process,

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          1       as well as in the aquatic preserve rule.
 
          2            TREASURER NELSON:  Governor --
 
          3            GOVERNOR CHILES:  Yes, sir.
 
          4            TREASURER NELSON:  -- the
 
          5       Corps of Engineers maintains the present
 
          6       channel.  Do you know at what depth?
 
          7            MR. CRAFT:  I don't know what their
 
          8       designed depth is, no, sir.  But the bathymetry
 
          9       that was provided by the company on this shows
 
         10       current depths in there ranging in the upper 30s
 
         11       to the lower 50s.
 
         12            TREASURER NELSON:  And that channel is
 
         13       approximately how far from the center of this
 
         14       point of the new hole that would be dug for the
 
         15       dry dock facility?
 
         16            MR. CRAFT:  After the --
 
         17            TREASURER NELSON:  The edge of the channel
 
         18       to the center of that hole would be how many
 
         19       feet?
 
         20            MR. CRAFT:  I did a quick estimate off
 
         21       small scale drawings, and it ranges, because the
 
         22       channel is at an angle compared to the
 
         23       shoreline.
 
         24            And judging from that, I think it ranges
 
         25       center line to edge of channel, on the order of

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          1       50 to 75 feet at the south end, to about
 
          2       250 feet at the north end.
 
          3            GOVERNOR CHILES:  All right.
 
          4            TREASURER NELSON:  May I ask one more
 
          5       question --
 
          6            GOVERNOR CHILES:  Yes, sir.
 
          7            TREASURER NELSON:  -- of the Secretary.
 
          8            You know, the obvious site location that
 
          9       first came to my mind was Blount Island.  And I
 
         10       asked:  Well, why wasn't the location going to
 
         11       be at Blount Island, it's just a few miles down
 
         12       the St. Johns River from Mayport?
 
         13            And the answer was that the United States
 
         14       Marine Corps, which has an ordnance facility
 
         15       there, would not allow this dry dock facility
 
         16       there, because it was in the explosive range of
 
         17       the Marine Corps ordnance facility.
 
         18            Is that a correct statement?
 
         19            MS. WETHERELL:  I haven't heard that.
 
         20       Kirby Green or Dale Padgett, who negotiated
 
         21       might have --
 
         22            MR. JACOBS:  I could speak to that, sir.
 
         23            We have some input that would help you --
 
         24            MR. GREEN:  We have heard that that is a
 
         25       true statement, that that concern exists.

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          1            Yesterday, as part of this discussion in
 
          2       trying to decide how we were going to move
 
          3       forward with this issue, we talked with the
 
          4       Port of Jacksonville and their
 
          5       executive director.
 
          6            We asked him about Blount Island, and what
 
          7       their feelings were about placing a facility at
 
          8       that location.
 
          9            They came back with a similar answer, that
 
         10       that was not appropriate.
 
         11            They did identify another site where at
 
         12       least two other people had come to them and
 
         13       asked them if it was a possibility for use for
 
         14       this -- for this purpose.  That was being at
 
         15       Dames Point.
 
         16            Their concern at that -- at that point was
 
         17       that because of the short time of -- the Navy's
 
         18       requirement for short time to be in operation,
 
         19       that they told the applicants that they didn't
 
         20       think that they could go through the permitting
 
         21       process and produce the necessary permits for
 
         22       them to dredge and make these facilities ready
 
         23       for operation.
 
         24            But if there was an indication that there
 
         25       may be ability to work with the State, that that

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          1       site may become available.
 
          2            So Jacksonville Port yesterday indicated
 
          3       that at Dames Point, they felt that there was a
 
          4       site that would be appropriate for this
 
          5       activity.  And if the permits -- if we could
 
          6       fast track permits, that it may be available.
 
          7            That's -- that's part of the reason that
 
          8       we've encouraged a deferral here, is so we could
 
          9       get with all the applicants and see if there
 
         10       were other available sites in the area that were
 
         11       better environmentally suited for this activity
 
         12       before we made a final recommendation to you.
 
         13            SECRETARY MORTHAM:  Governor --
 
         14            GOVERNOR CHILES:  Yes, ma'am.
 
         15            SECRETARY MORTHAM:  -- I personally am very
 
         16       uncomfortable with this whole issue here today.
 
         17       Now, maybe somebody else received the
 
         18       information prior to when we did.  But we felt
 
         19       up until 4:45 yesterday afternoon that this
 
         20       particular issue was going to be deferred at the
 
         21       request of staff.
 
         22            So I understand that I -- I've been out of
 
         23       town, but, you know, 4:45 is not a lot of time.
 
         24            I would hope that we would fast track
 
         25       whatever would be in the best interest of the

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          1       ultimate selection of the site that would be
 
          2       proposed by staff, and/or the people that would
 
          3       be coming forward.
 
          4            Five hundred jobs is a lot of jobs, we
 
          5       would certainly want that to happen.
 
          6            As the chief historic officer in the state,
 
          7       I would like George Percy to at least look at
 
          8       the -- at the site, as well, if we're talking
 
          9       about a National Registry district.  I mean,
 
         10       I think that that is an issue that also needs to
 
         11       be addressed.
 
         12            And I don't think that that has happened.
 
         13       And so, you know, I think that there -- there's
 
         14       a motion on the floor, and a second to defer,
 
         15       and -- and I think that we need to take this up
 
         16       at the -- at the next regular Cabinet meeting.
 
         17            COMMISSIONER BROGAN:  Could I just ask one
 
         18       other question, Governor --
 
         19            GOVERNOR CHILES:  Yes.
 
         20            COMMISSIONER BROGAN:  -- and I -- and by
 
         21       the way, I don't know if anybody present today
 
         22       has the answer to this.
 
         23            Secretary, we've all been sort of wheeling
 
         24       and dealing here based on some supposed
 
         25       time line put out by the Department of the

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          1       Navy.
 
          2            What -- what is their urgency, other than
 
          3       their desire to make this service available,
 
          4       that throws us into that situation?  Are you --
 
          5       are you aware?
 
          6            MS. WETHERELL:  Well, you know, I think
 
          7       obviously the desire to be able to repair the
 
          8       ships close to the home port.  But they have set
 
          9       a time frame for themselves of fall of '97 to
 
         10       January, February of '98, as having the dry dock
 
         11       up and operational.
 
         12            So if you back that out, they need to get
 
         13       their RFP on the street as soon as possible.
 
         14       But what they're telling us now is that it will
 
         15       be three to four weeks before they get the RFP
 
         16       out on the street for the contract.
 
         17            COMMISSIONER BROGAN:  Well, I guess my
 
         18       point is, however, that's -- I'm not trying to
 
         19       trivialize it, but that's simply a time line
 
         20       that the Navy has determined that they would
 
         21       like to utilize.
 
         22            It appears to me that there's still the
 
         23       possibility that that could be the case.  And I
 
         24       know we've already made an issue of it.  But
 
         25       still defer this, and potentially remain within

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          1       that time line.
 
          2            Is that the way you see it?
 
          3            MS. WETHERELL:  Well, the way I see it is
 
          4       that with the deferral -- you know, with a
 
          5       denial, approval, or deferral, that the bottom
 
          6       line is that the RFP is not going to close
 
          7       before your next Cabinet meeting.
 
          8            So there is an opportunity to continue to
 
          9       explore to come up with the best site.  The Navy
 
         10       has very specifically said to us that they are
 
         11       not site specific.  They're not saying, this is
 
         12       the site.
 
         13            They -- this is a good applicant, they --
 
         14       I think that this is, you know, a good project.
 
         15       It's -- but they don't care where the site is,
 
         16       as long as it's within 75 miles of the
 
         17       Jacksonville home port.
 
         18            We care, obviously, because of the
 
         19       environmental impacts.  We want to create the
 
         20       jobs, we want to help Florida with its economic
 
         21       development.  But we are -- we would like the
 
         22       opportunity to see.  We might have to come back
 
         23       to you and say, no other applicant, you know,
 
         24       felt they could make the requirements -- meet
 
         25       the requirements.  But we believe there is an

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          1       opportunity.
 
          2            GOVERNOR CHILES:  All right.  We have a
 
          3       motion and a second.  And we've had a good, long
 
          4       discussion.
 
          5            So many as favor the motion, signify by
 
          6       saying aye.
 
          7            COMPTROLLER MILLIGAN:  Aye.
 
          8            COMMISSIONER BROGAN:  Aye.
 
          9            TREASURER NELSON:  Aye.
 
         10            GOVERNOR CHILES:  Opposed, no.
 
         11            Motion to defer is -- is --
 
         12            MS. WETHERELL:  Okay.  Thank you.
 
         13            Item 14 are surplus land sales.
 
         14            SECRETARY MORTHAM:  Move approval.
 
         15            COMMISSIONER CRAWFORD:  Second.
 
         16            GOVERNOR CHILES:  Moved and seconded.
 
         17            Without objection, it's approved.
 
         18            MS. WETHERELL:  Substitute item 15 is the
 
         19       Overstreet/Mitigation Bank.  And --
 
         20            SECRETARY MORTHAM:  Move approval.
 
         21            COMMISSIONER CRAWFORD:  Second.
 
         22            GOVERNOR CHILES:  Moved and seconded.
 
         23            Without objection, it's --
 
         24            ATTORNEY GENERAL BUTTERWORTH:  Governor, I
 
         25       have a little problem on 15.  And that is, I'm

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          1       not opposed to it, but be very, very careful
 
          2       about this one.
 
          3            I believe that the applicant believes
 
          4       they're going to get, from my understanding,
 
          5       about four or five hundred of his mitigation
 
          6       so-called coupons.  It'd be much cheaper for us
 
          7       to buy this, than to give them 400 mitigation
 
          8       coupons that could be used in a lot of other
 
          9       areas.
 
         10            So this is a very dangerous area.  I don't
 
         11       mind studying the mitigation bank issue, but I'd
 
         12       almost rather not have it associated to a
 
         13       particular project, because we're really getting
 
         14       the hopes up of these people that we might do
 
         15       exactly what they want to do with this piece of
 
         16       property.
 
         17            And when it comes back to us, we may decide
 
         18       this is the worst piece of property for us to
 
         19       use the mitigation bank issue on.
 
         20            And, in fact, the way it's happening down
 
         21       in Florida, the mitigation bank issue might even
 
         22       be a securities issue.  I saw -- I mean, there's
 
         23       a lot of -- there's a lot more issues involved
 
         24       with this whole thing.  So -- than just -- just
 
         25       try to come up with some value and some

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          1       geography.  It could be a very dangerous issue
 
          2       for us.
 
          3            GOVERNOR CHILES:  Could you --
 
          4            ATTORNEY GENERAL BUTTERWORTH:  That's my
 
          5       only concern there.
 
          6            MS. WETHERELL:  Well --
 
          7            ATTORNEY GENERAL BUTTERWORTH:  I would like
 
          8       to unlink it.
 
          9            MS. WETHERELL:  Yeah.
 
         10            COMMISSIONER BROGAN:  Could we go to the
 
         11       Secretary on that, Governor?
 
         12            MS. WETHERELL:  Well, this is a --
 
         13            GOVERNOR CHILES:  Yes, sir.
 
         14            MS. WETHERELL:  -- an application by the
 
         15       South Florida Water Management District.  It is,
 
         16       you know, their item and their request.
 
         17            I understand your concerns, and that --
 
         18       that concern -- I think the Department shares
 
         19       that concern.  At this point though, we have
 
         20       clear statutory authority and direction, lots of
 
         21       direction in this past session about, you know,
 
         22       setting up mitigation banks and proceeding that
 
         23       way.  But --
 
         24            (Treasurer Nelson exited the room.)
 
         25            MS. WETHERELL:  -- we have some of these

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          1       same problems about where mitigation banking is
 
          2       going to end up.
 
          3            But at this point, we've got the authority
 
          4       and the direction to -- to do these kinds of
 
          5       things.
 
          6            GOVERNOR CHILES:  Well --
 
          7            MS. WETHERELL:  If you want to hear from
 
          8       the Water Management District, or you want to
 
          9       hear from the person representing the owner --
 
         10            ATTORNEY GENERAL BUTTERWORTH:  I'd like
 
         11       to --
 
         12            MS. WETHERELL:  -- they're both here.
 
         13            ATTORNEY GENERAL BUTTERWORTH:  -- uncouple
 
         14       the item, and defer the actual purchase -- or if
 
         15       it would -- I don't know how your item is.  But
 
         16       if it's just -- just do mitigation bank study or
 
         17       report alone, but not linking it to this
 
         18       particular project.
 
         19            MS. WETHERELL:  Well, I think I need --
 
         20            ATTORNEY GENERAL BUTTERWORTH:  It might
 
         21       be --
 
         22            MS. WETHERELL:  -- to hear from --
 
         23            ATTORNEY GENERAL BUTTERWORTH:  -- just
 
         24       semantics.  But, I mean, it's just --
 
         25            MS. WETHERELL:  -- the District.

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          1            Would you like to hear from the District
 
          2       though?
 
          3            GOVERNOR CHILES:  Better hear from
 
          4       somebody.
 
          5            MR. RENALDI:  Chuck Renaldi with the
 
          6       South Florida Water Management District.
 
          7            The objective here is to -- to facilitate
 
          8       the acquisition for the Kissimmee River
 
          9       restoration project.  Involved is approximately
 
         10       600 acres.  About half of these acres are policy
 
         11       lands over which the State may have an
 
         12       interest.  In lieu of an acquisition by
 
         13       purchase, the Overstreets have offered to -- to
 
         14       donate this land to the District in return for
 
         15       establishing a mitigation bank on this property.
 
         16            The benefit to the public will be a savings
 
         17       of some $2.2 million.  And we -- we believe it's
 
         18       a worthwhile private-public partnership.
 
         19            ATTORNEY GENERAL BUTTERWORTH:  Governor --
 
         20            GOVERNOR CHILES:  Well now, what is the
 
         21       other side of it?  When you establish a
 
         22       mitigation bank, then, in effect, they get
 
         23       credits, and other people that have to --
 
         24       you know, have a mitigation problem can then buy
 
         25       those credits.

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          1            So, you know, there are two sides to the
 
          2       equation.  I think what the General's saying is
 
          3       we want to kind of see both sides of the
 
          4       equation.
 
          5            ATTORNEY GENERAL BUTTERWORTH:  Your job is
 
          6       to color in the property that you're supposed to
 
          7       buy.
 
          8            MR. RENALDI:  That's correct.
 
          9            ATTORNEY GENERAL BUTTERWORTH:  That's your
 
         10       main concern.  That's your job.
 
         11            Our job is a little more than that, because
 
         12       I don't want somebody buying something that you
 
         13       might have had a value of $500 on, and find out
 
         14       they're going to use it for acreage that may
 
         15       very well have have a $50,000 item.
 
         16            You may very well be giving the person --
 
         17       this mitigation bank up to $20 million of value
 
         18       in order to save your 2 million.
 
         19            So I'm very concerned about the issue.
 
         20       I mean, I'm seriously concerned about it.
 
         21            So I just don't want to -- I do want to
 
         22       look at mitigation bank, Governor, but I don't
 
         23       want to link it to this piece of property, or
 
         24       any piece of property, for that matter.
 
         25       Especially when half this property I believe we

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          1       own.
 
          2            COMPTROLLER MILLIGAN:  Yeah.
 
          3            ATTORNEY GENERAL BUTTERWORTH:  And that
 
          4       makes it even sillier for us to give them
 
          5       mitigation credits that they can use somewhere
 
          6       else for acreage that we already own.
 
          7            I mean, you know, just -- you know, it's a
 
          8       small issue, Governor.
 
          9            COMPTROLLER MILLIGAN:  What would you like
 
         10       to do, General?
 
         11            ATTORNEY GENERAL BUTTERWORTH:  I don't know
 
         12       what I'd like to do.  I'd like to uncouple it
 
         13       somehow to -- so if the Overstreets, who are
 
         14       good people, I think they are really attempting
 
         15       to do the right thing here, and they've been
 
         16       here forever.
 
         17            The -- I would like to not have them think
 
         18       that when we come back on this issue that we're
 
         19       going to lock ourselves into this particular
 
         20       thing.  I think they --
 
         21            (Treasurer Nelson entered the room.)
 
         22            ATTORNEY GENERAL BUTTERWORTH:  -- I really
 
         23       believe they believe they're going to be getting
 
         24       about 400, or more, of these mitigation
 
         25       credits.  We may very well find out that the

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          1       mitigation bank, that the value of one credit
 
          2       might be worth the whole $2 million.  We may --
 
          3            COMMISSIONER BROGAN:  It may be --
 
          4            ATTORNEY GENERAL BUTTERWORTH:  -- only want
 
          5       to give them ten or twenty.
 
          6            COMMISSIONER BROGAN:  Governor, and I -- I
 
          7       understand exactly what you're saying, and it is
 
          8       a concern.
 
          9            I -- my concern with trying to uncouple it
 
         10       at this point is lack of knowledge that I have
 
         11       as to whether the Overstreets really do believe
 
         12       it's all part and parcel to one deal.  And
 
         13       trying then to separate it, because that may
 
         14       have the potential, if nobody's here to address
 
         15       it otherwise, of changing the configuration of
 
         16       the deal.
 
         17            Is it -- I think we've got a motion and a
 
         18       second on the floor.  And, again -- here I go
 
         19       again.  But based on exactly what you said and
 
         20       exactly the same concern, this may be worthy
 
         21       of -- of deferral until we can clear up that
 
         22       issue.
 
         23            ATTORNEY GENERAL BUTTERWORTH:  You defer
 
         24       this item --
 
         25            COMMISSIONER CRAWFORD:  Governor --

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          1            ATTORNEY GENERAL BUTTERWORTH:  -- and then
 
          2       just take the mitigation bank issue itself.
 
          3            COMMISSIONER CRAWFORD:  -- it's my
 
          4       understanding that this is -- comes under the
 
          5       heading, kind of a concept approval that the
 
          6       specifics of the mitigation bank and how that
 
          7       would work would actually come back to the
 
          8       Trustees.
 
          9            So we're not necessarily locking ourselves
 
         10       into a problem here.  And I think the
 
         11       Overstreets are in good faith moving forward
 
         12       with this.  And saving two -- in excess of
 
         13       $2 million for the public.
 
         14            So I would hope we could go ahead and vote
 
         15       in favor of it, and the Attorney General would
 
         16       be vigilant in making sure when we just come
 
         17       back for the specifics, we could address those
 
         18       concerns at that point.
 
         19            GOVERNOR CHILES:  Well, you know, do we
 
         20       have the right, when it comes back, to look at
 
         21       how many credits, anything about it?  I mean,
 
         22       is --
 
         23            MS. WETHERELL:  Yeah.  There's some
 
         24       conditions --
 
         25            GOVERNOR CHILES:  Are we about to vote

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          1       something --
 
          2            ATTORNEY GENERAL BUTTERWORTH:  I don't want
 
          3       any conditions.  That's my problem.
 
          4            GOVERNOR CHILES:  Yeah.  That's give them
 
          5       a --
 
          6            MS. WETHERELL:  Yeah.  You see Item 3, the
 
          7       specifics of the extent of the mitigation area,
 
          8       the number of credits will be presented to
 
          9       the -- to you for consideration prior to any
 
         10       work being conducted.
 
         11            COMMISSIONER BROGAN:  What would --
 
         12            COMMISSIONER CRAWFORD:  I think that --
 
         13            MS. WETHERELL:  That's on the --
 
         14            COMMISSIONER CRAWFORD:  -- give us another
 
         15       bite at it.  I think that gives us another shot
 
         16       at it.
 
         17            MS. WETHERELL:  It gives you some control
 
         18       of the mitigation bank.
 
         19            GOVERNOR CHILES:  -- a motion to approve
 
         20       it, and get the conceptual --
 
         21            ATTORNEY GENERAL BUTTERWORTH:  I think with
 
         22       the discussion, I think the Overstreets are on
 
         23       notice that we might not do this.
 
         24            But do we have the option to just not do it
 
         25       with this property; or, in fact, are we locking

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          1       ourselves in to having to do it, mitigation bank
 
          2       purchase with the Overstreets.  They may not
 
          3       like the number of mitigation credits they get,
 
          4       but I think you're locking --
 
          5            MS. WETHERELL:  I think you are.
 
          6            ATTORNEY GENERAL BUTTERWORTH:  -- the --
 
          7       this Board into buying this piece of property
 
          8       with mitigation credits, and not with cash.
 
          9            MS. WETHERELL:  I think you're locking into
 
         10       they're donating the property, and -- with the
 
         11       establishment of a bank, and then you have some
 
         12       control over the number of -- and the extent of
 
         13       the service area.
 
         14            GOVERNOR CHILES:  Well -- you know, the
 
         15       banking company or their consultant must be
 
         16       approved by us prior to any work being done to
 
         17       establish mitigation bank.
 
         18            But is there something specifically in
 
         19       there that says how much credit, or anything
 
         20       else?  I don't --
 
         21            MS. WETHERELL:  No, there's not.
 
         22            GOVERNOR CHILES:  Hmm?
 
         23            MS. WETHERELL:  No.
 
         24            MR. CRAFT:  We do not have a mitigation
 
         25       bank application before us at this time.  We

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          1       were trying to assist the Water Management
 
          2       District in making sure the land deal could go
 
          3       forward, and then handle that permitting process
 
          4       later on.
 
          5            GOVERNOR CHILES:  Well, I'm not sure it's
 
          6       fair to the Overstreets.  If we're now saying
 
          7       that, wait a minute, you know, in effect, you're
 
          8       locking them in to sell their land at this
 
          9       price.  But on the other hand, we're not ready
 
         10       to tell them what they're going to get for
 
         11       that.
 
         12            So it looks like to me, if we're putting
 
         13       them on notice that that's true, I'm not sure
 
         14       that we've really done them much of a favor,
 
         15       that that's exactly fair to them.
 
         16            MS. WETHERELL:  I think what's happened is
 
         17       the District's telling me that their time crunch
 
         18       is August the 31st, and they need title in order
 
         19       to proceed with the restoration, the
 
         20       Kissimmee River restoration.  So they can't
 
         21       proceed without title --
 
         22            MR. RENALDI:  That's correct.
 
         23            MS. WETHERELL:  -- to the property.  So
 
         24       they've worked out this agreement with the
 
         25       Overstreets --

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          1            GOVERNOR CHILES:  Who can't --
 
          2            MS. WETHERELL:  -- to donate --
 
          3            GOVERNOR CHILES:  -- proceed without title
 
          4       to --
 
          5            MS. WETHERELL:  The District.
 
          6            GOVERNOR CHILES:  The District?
 
          7            MS. WETHERELL:  The Corps.
 
          8            MR. RENALDI:  The Corps of Engineers'
 
          9       schedule, Governor, is August 31st, by which we
 
         10       must have title to this property.  The -- the
 
         11       idea is that the Overstreets would donate this
 
         12       property to us, and proceed with the mitigation
 
         13       bank.  And this would --
 
         14            ATTORNEY GENERAL BUTTERWORTH:  I think it's
 
         15       like more here, Governor.  They're expecting
 
         16       something more.
 
         17            GOVERNOR CHILES:  Yeah.  Well, no.  I mean,
 
         18       they donate it.  But what, in effect, do they
 
         19       get for it?
 
         20            They get a mitigation bank.  But there's
 
         21       got to be some way of establishing value, the
 
         22       value on this thing, it seems like to me.  Or
 
         23       within ranges.
 
         24            MR. RENALDI:  The value of the credits?
 
         25            GOVERNOR CHILES:  Yeah.  Yeah.

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          1            TREASURER NELSON:  That's right.
 
          2            ATTORNEY GENERAL BUTTERWORTH:  That's the
 
          3       whole thing.
 
          4            TREASURER NELSON:  Uh-hum.
 
          5            ATTORNEY GENERAL BUTTERWORTH:  They
 
          6       can't --
 
          7            COMMISSIONER BROGAN:  That's my concern, is
 
          8       that by acting, and yet placing in the caveat
 
          9       that that's not determined, we may, in essence,
 
         10       be altering at least the perceived terms of the
 
         11       agreement on the part of the Overstreets, who I
 
         12       agree, are acting in very good faith.
 
         13            But without them or their representative
 
         14       here to speak to this, I think it makes the
 
         15       whole issue a little difficult to deal with.
 
         16            MR. GREEN:  Governor and Cabinet, the
 
         17       agreement with the Water Management District has
 
         18       a clause in it that says if the mitigation bank
 
         19       cannot be created, cannot be permitted, that
 
         20       there is a value that the Water Management
 
         21       District will purchase the land for.
 
         22            So there is -- there is a dollar value that
 
         23       is set in the contract that says, if this
 
         24       doesn't happen, the mitigation bank, then we'll
 
         25       do this for X number of dollars.  And that

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          1       X number of dollars is --
 
          2            MR. RENALDI:  About 1.2 million.
 
          3            MR. GREEN:  -- 1.2 million.
 
          4            ATTORNEY GENERAL BUTTERWORTH:  Governor, my
 
          5       only -- my only question of this would be --
 
          6       I think it goes back to the fairness to the
 
          7       Overstreets.
 
          8            We may very well decide, fine, we'll give
 
          9       it one mitigation bank credit.  And they may
 
         10       have much less value than 1.2 million.  I would
 
         11       certainly hope they would have an escape clause
 
         12       there, too, and it would be -- you say they do
 
         13       not have the escape clause.
 
         14            So am I right to assume that the
 
         15       Overstreets are expecting X number of units, or
 
         16       whatever they call the ownership, to go into the
 
         17       mitigation bank?  Are they expecting something?
 
         18            MR. GREEN:  We have Bill Eagan here, who
 
         19       represents the Overstreets.  And I think I'll
 
         20       let him answer that question.
 
         21            MR. EAGAN:  Governor Chiles and General,
 
         22       and members of the Cabinet.  This agreement that
 
         23       is before you today comes out of your resolution
 
         24       of 1993 which will recognize the need in the
 
         25       District to acquire lands to facilitate the

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          1       headwaters restoration on the Kissimmee River
 
          2       project.
 
          3            In that resolution, you recognized also
 
          4       that there was a continuing dispute between the
 
          5       private ownership rights and the public
 
          6       ownership rights on the shoreline of these
 
          7       lakes.  And this is on the east shore of
 
          8       Lake Kissimmee.
 
          9            In that resolution, you said that in the
 
         10       case of negotiated acquisitions, the State would
 
         11       not assert any claim of ownership as to any
 
         12       individual parcel acquired by the District
 
         13       through negotiation.
 
         14            Mr. Renaldi, who is probably one of the
 
         15       toughest, and at the same time, most innovative
 
         16       guardians of the public interest I've ever run
 
         17       into, worked with us to evolve this concept out
 
         18       of the spirit of that resolution, whereby the
 
         19       District would acquire the necessary land.
 
         20            Included in that land is 328 acres of what
 
         21       is referred to in your prior resolution as
 
         22       policy lands, the lands that you promised us you
 
         23       would not assert any claim of ownership to.
 
         24            GOVERNOR CHILES:  How many acres?
 
         25            MR. EAGAN:  Three hundred and twenty eight.

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          1            GOVERNOR CHILES:  Three hundred and twenty
 
          2       eight.
 
          3            MR. EAGAN:  And then there -- an
 
          4       additional -- there is additional acreage there,
 
          5       so that in what the District will acquire
 
          6       constitutes about 695 acres.
 
          7            In addition, the mitigation bank concept
 
          8       will put into that conservation area by way of
 
          9       conservation easements, another 400 acres of
 
         10       privately owned land so that there will be in
 
         11       conservation a total of 1,000 acres.  And the
 
         12       method by which we arrived at the compensation
 
         13       to the owners and to accomplish the
 
         14       conservation, would be through the mitigation
 
         15       banking.
 
         16            So that the necessary structure work would
 
         17       be done to restore the original hydraulic
 
         18       function to the lake.  And then through the
 
         19       mitigation bank process, ultimately the sale of
 
         20       credits would flow, as permitted by the DEP.
 
         21            If it comes back to you for a final
 
         22       approval, that's fine.  That's the way the
 
         23       agenda item sits now.
 
         24            But we understand that the DEP permitting
 
         25       process is an evolutionary thing.  We do not

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          1       know how many credits will ultimately result.
 
          2       There has been some preliminary discussion, some
 
          3       preliminary review of the land.  It is a -- it
 
          4       is a very desirable, sensitive piece of land
 
          5       that will work and should be conserved.
 
          6            The Overstreets at the present time are
 
          7       engaged in the facilitation of the
 
          8       whooping crane program through which that
 
          9       species is being reintroduced into the state.
 
         10       And they have, at their expense, made land
 
         11       available for that project, and have improved
 
         12       that habitat.  And this will facilitate the
 
         13       further improvement of that habitat.
 
         14            So to -- I don't think you can delink the
 
         15       process, because that is how the District is
 
         16       acquiring the land, that is how the conservation
 
         17       effort is going to be served, that is how the
 
         18       restoration effort by the work that would be
 
         19       done by the Corps of Engineers or the State
 
         20       would otherwise be accomplished in actual
 
         21       physical work in the lake proper.
 
         22            So --
 
         23            ATTORNEY GENERAL BUTTERWORTH:  Okay.
 
         24            GOVERNOR CHILES:  Well then, would you --
 
         25       are you acknowledging, in effect, as the agent

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          1       for the Overstreets and their counsel that at
 
          2       this stage, nothing has been represented to the
 
          3       Overstreets, or there's nothing there that they
 
          4       could necessarily say, wait a minute, we put
 
          5       that in, we expect to be able to receive X
 
          6       credits, or X value out of this, that that is
 
          7       all to be left into the negotiation?
 
          8            MR. EAGAN:  We -- there is no commitment in
 
          9       that respect, Governor.  We understand that if
 
         10       we are on a level playing field --
 
         11            GOVERNOR CHILES:  Yes, sir.
 
         12            MR. EAGAN:  -- that this will be a very
 
         13       prime mitigation bank.  And we'll --
 
         14            GOVERNOR CHILES:  Well, understand that --
 
         15            MR. EAGAN:  -- be --
 
         16            GOVERNOR CHILES:  -- we know that, because
 
         17       we're purchasing the property.
 
         18            But the question now is, from our
 
         19       standpoint as public policymakers is:  How much
 
         20       land are we going to allow to be taken out of
 
         21       wetlands, in effect, for the credit of this
 
         22       bank, because we know, in effect, if we want to
 
         23       buy this land, probably the upper price is the
 
         24       two million something, the lower price is the
 
         25       one million something.  So we've got a range,

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          1       you know, there.
 
          2            MR. EAGAN:  That's right.
 
          3            GOVERNOR CHILES:  But are we -- now, what
 
          4       we don't know is how many acres, how much
 
          5       sensitive land, how much other things that we're
 
          6       saying to someone -- the shopping center, the
 
          7       small thing, you go buy mitigation credit for
 
          8       this, and you can take that out.
 
          9            And -- you know, and you can destroy that
 
         10       wetland.  See, that's what we don't know.
 
         11       And -- and I think what we're saying is, we want
 
         12       to make sure that everybody is on a level
 
         13       playing field, and there is going to be some
 
         14       negotiation.
 
         15            And I would think fairly that negotiation
 
         16       should be that the Overstreets ought to get up
 
         17       to $2 million credit, you know, for this land.
 
         18       Certainly over a million two, or whatever that
 
         19       is.  But not necessarily 8 million or
 
         20       10 million, or, you know, up to that amount.
 
         21       Because at some stage, hell, we're better to buy
 
         22       the land and use the mitigation bank ourself if
 
         23       we have to.
 
         24            MR. EAGAN:  Well, you -- one never knows
 
         25       what a mitigation credit is going to be worth in

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          1       the ultimate market when this is all said and
 
          2       done.  It's a brand new concept.  Came in --
 
          3       came on-line in 1993.
 
          4            GOVERNOR CHILES:  Yes, sir.
 
          5            MR. EAGAN:  There's a great deal of risk
 
          6       involved in that for the Overstreets.  They
 
          7       understand that.  They would expect some reward
 
          8       for that risk, if, indeed, they choose to go
 
          9       that route.
 
         10            There's going to be a significant
 
         11       investment in actual construction work done on
 
         12       the property.  And they would expect some return
 
         13       and reward for that.
 
         14            ATTORNEY GENERAL BUTTERWORTH:  Governor,
 
         15       you say the risk goes both ways, and we're
 
         16       sitting here as the Board of Trustees to the
 
         17       people of the State of Florida.  We at this
 
         18       point in time don't know where these could be
 
         19       used, what effect it's going to have.
 
         20            And you stated, Mr. Eagan, that the --
 
         21       there have been some preliminary negotiations as
 
         22       to numbers.
 
         23            Could you tell me what those are?
 
         24            MR. EAGAN:  No, I don't -- as to numbers
 
         25       I --

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          1            ATTORNEY GENERAL BUTTERWORTH:  On
 
          2       mitigation --
 
          3            MR. EAGAN:  -- didn't say there was any --
 
          4            ATTORNEY GENERAL BUTTERWORTH:  -- credits.
 
          5            MR. EAGAN:  I said there had been some
 
          6       review of the land --
 
          7            ATTORNEY GENERAL BUTTERWORTH:  Oh, I
 
          8       thought you said --
 
          9            MR. EAGAN:  -- with potential mitigation --
 
         10            ATTORNEY GENERAL BUTTERWORTH:  -- there was
 
         11       some number.
 
         12            MR. EAGAN:  We know that there will be a
 
         13       significant restoration of ecological function
 
         14       in the shore of the --
 
         15            GOVERNOR CHILES:  Well --
 
         16            MR. EAGAN:  -- lake area.
 
         17            GOVERNOR CHILES:  -- you know, I'm prepared
 
         18       to vote for the motion now, to tell you the
 
         19       truth, because I think -- I think we have put
 
         20       the Overstreets on notice that --
 
         21            COMMISSIONER CRAWFORD:  They're at risk,
 
         22       not the State.
 
         23            GOVERNOR CHILES:  -- that, in effect, they
 
         24       may be putting themselves at risk, because we're
 
         25       not agreeing to any dollar figure or credit

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          1       numbers or anything like that.  All of that
 
          2       would be open for further negotiations.
 
          3            ATTORNEY GENERAL BUTTERWORTH:  Well,
 
          4       Governor, may I ask a question and --
 
          5            GOVERNOR CHILES:  Yes.
 
          6            ATTORNEY GENERAL BUTTERWORTH:  -- put
 
          7       something on the record here?
 
          8            From discussion here today then, sir, is it
 
          9       the understanding of the Overstreets that we may
 
         10       very well not offer them mitigation credits for
 
         11       this land, and it'll go back to their --
 
         12       whatever the contract price was?
 
         13            Or is it your understanding that no matter
 
         14       what happens, you get mitigation credits?
 
         15            MR. EAGAN:  I would not understand that you
 
         16       would arbitrarily say, we would not have any
 
         17       mitigation credits.
 
         18            I would understand that we would go through
 
         19       the normal permitting process, which would
 
         20       involve an evaluation of the land.  And it would
 
         21       be -- as any other mitigation bank, it would be
 
         22       evaluated for that purpose.
 
         23            And I would not hope -- I would hope that
 
         24       you would not penalize us because of the nature
 
         25       of this originating transaction.  But we would

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          1       be treated as any other mitigation bank
 
          2       applicant.
 
          3            GOVERNOR CHILES:  I -- you know, I would
 
          4       basically agree with that.  I think there is a
 
          5       fail-safe that's put into this, that if all
 
          6       negotiations break down, we've agreed to give
 
          7       them $1.2 million, or whatever it is.
 
          8            ATTORNEY GENERAL BUTTERWORTH:  Is that what
 
          9       the Overstreets understand?
 
         10            MR. EAGAN:  That's correct.
 
         11            ATTORNEY GENERAL BUTTERWORTH:  Okay.
 
         12       That's all.
 
         13            Thank you, Governor.
 
         14            GOVERNOR CHILES:  All right.  Is there
 
         15       further discussion?
 
         16            Many as favor the motion, signify by saying
 
         17       aye.
 
         18            COMMISSIONER BROGAN:  Aye.
 
         19            ATTORNEY GENERAL BUTTERWORTH:  Aye.
 
         20            COMPTROLLER MILLIGAN:  Aye.
 
         21            GOVERNOR CHILES:  Opposed, no.
 
         22            ATTORNEY GENERAL BUTTERWORTH:  Sorry we
 
         23       spent --
 
         24            GOVERNOR CHILES:  It's carried.
 
         25            ATTORNEY GENERAL BUTTERWORTH:  -- so much

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          1       of the Cabinet's time, Governor, on a
 
          2       noncontroversial issue.
 
          3            GOVERNOR CHILES:  That's all right.
 
          4            (The Board of Trustees of the Internal
 
          5       Improvement Trust Fund Agenda was concluded.)
 
          6                             *
 
          7
 
          8
 
          9
 
         10
 
         11
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25

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          1            (Administration Commission agenda
 
          2       reconvened.)
 
          3            GOVERNOR CHILES:  Then we had one issue
 
          4       that we were going to come back on again.
 
          5            Good discussion.
 
          6            COMMISSIONER CRAWFORD:  Board of
 
          7       Administration, isn't it?
 
          8            GOVERNOR CHILES:  Board of Administration.
 
          9            Yes, sir.
 
         10            DR. BRADLEY:  Governor, we're back on the
 
         11       motion, Item number 6.  That was the
 
         12       authorization to enter the draft order in the
 
         13       case of the Community Affairs and Responsible
 
         14       Growth Management Coalition and Sylvan Zemel,
 
         15       et cetera, versus Lee County and R.Q. Richards.
 
         16            We have a number of people here to speak,
 
         17       Governor.  We're going to limit the time.  You
 
         18       can tell me if it's too much.  I know some of
 
         19       the Cabinet members have some commitments to
 
         20       make.
 
         21            We've got about nine people -- well,
 
         22       eleven people.  We were going to give them
 
         23       20 minutes a side.  We can try to squeeze them
 
         24       into 15 if you want.
 
         25            GOVERNOR CHILES:  Well, let's --

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          1            COMMISSIONER CRAWFORD:  I'd vote for the
 
          2       15, if possible.  I've got to make a funeral in
 
          3       Polk County at 4:00 o'clock --
 
          4            DR. BRADLEY:  Yes, sir.
 
          5            COMMISSIONER CRAWFORD:  -- and I'd
 
          6       appreciate if we could speed it up.
 
          7            DR. BRADLEY:  Okay.  Fifteen minutes a side
 
          8       then --
 
          9            GOVERNOR CHILES:  Okay.  Let's try to --
 
         10            DR. BRADLEY:  -- Governor.
 
         11            GOVERNOR CHILES:  -- do that.
 
         12            DR. BRADLEY:  The first -- the first group
 
         13       of people will be led off by Secretary Murley.
 
         14            If we could get the other folks up here at
 
         15       the beginning, it would facilitate things.
 
         16            I'd like to see Tom Reese of the
 
         17       Responsible Growth Management Coalition,
 
         18       Gary Beardsley.
 
         19            (Attorney General Butterworth exited the
 
         20       room.)
 
         21            DR. BRADLEY:  Also of that organization,
 
         22       John Cassani, Lyle Danielson, Terrell Arline,
 
         23       and Eva Armstrong up here to follow
 
         24       Secretary Murley.
 
         25            SECRETARY MURLEY:  Thank you, Bob.

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          1            Members -- Governor, members of the
 
          2       Cabinet, Jim Murley, Secretary of the Department
 
          3       of Community Affairs.
 
          4            We come here in support of the
 
          5       Administration Commission staff's recommended
 
          6       final order with some final technical
 
          7       refinements that have been negotiated, as
 
          8       always, today.
 
          9            This is a very important case, members of
 
         10       the Cabinet.  It represents the first set of
 
         11       amendments based on a County's evaluation and
 
         12       appraisal report, a requirement that has been in
 
         13       the law since 1975, was updated by the
 
         14       Legislature in 1985 and in 1993.
 
         15            I want to make it very clear that today,
 
         16       the Lee County Comprehensive Plan is in
 
         17       compliance.  It is the amendments that have gone
 
         18       through a lengthy administrative hearing that
 
         19       have been -- that objection's been raised that
 
         20       we have recommended to you, and the order not go
 
         21       into effect, which will keep the Lee County plan
 
         22       into compliance.
 
         23            I also want to note that many of the
 
         24       amendments that came out of the EAR evaluation
 
         25       were not objected to, and they have been free to

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                                                              161
 
          1       move ahead and adopt those --
 
          2            (Attorney General Butterworth entered the
 
          3       room.)
 
          4            SECRETARY MURLEY:  -- and put them into
 
          5       effect.
 
          6            The key issue of this case relates to the
 
          7       overlay, an important map that is -- that
 
          8       overlays the future land use map of Lee County.
 
          9            That is the future land use map of
 
         10       Lee County as it exists today.
 
         11            The overlay has its origins in the 1989
 
         12       settlement before -- between the Department of
 
         13       Community Affairs, Lee County, and a number of
 
         14       third parties.  It led to 1990 amendments, which
 
         15       implemented the overlay.
 
         16            It was part of the case brought before you
 
         17       by citizens of the Shareview case in 1994, which
 
         18       you issued a final order for.
 
         19            The overlay is a critical part of being
 
         20       sure that the Lee County plan allocates
 
         21       development in proportion to the future
 
         22       population, deals with allocations of land for
 
         23       commercial for mixed use zones.
 
         24            We understand that the overlay can be
 
         25       difficult to implement.  We stand ready to work

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          1       with Lee County to find and examine with them
 
          2       alternatives to the overlay.
 
          3            But it is the finding of the
 
          4       Hearing Officer, and is the recommendations of
 
          5       the Department and in the order, that that not
 
          6       be done subsequent to a removal of the overlay.
 
          7            The amendment that we object to would
 
          8       remove the overlay without putting in place the
 
          9       specific things that would take -- which would
 
         10       be there in place of the overlay.
 
         11            The first sheet that she just removed
 
         12       indicates the numbers that are there with the
 
         13       overlay.  What would happen if the overlay were
 
         14       to be removed is reflected in this sheet.
 
         15            Now, we have seven quick slides that
 
         16       reflect the key findings of fact and conclusions
 
         17       of law of the Hearing Officer that we believe
 
         18       form the basis of the recommendations here
 
         19       before you.
 
         20            The first slide deals with the historic
 
         21       fact that in Lee County, there has been an
 
         22       extensive amount of land, and it's not the fault
 
         23       of the leaders of Lee County today, it's the
 
         24       history that they and we have to deal with.
 
         25       It's the overlay with 115 districts that

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          1       attempts to deal with that problem.
 
          2            The next slide reflects the conclusions of
 
          3       law dealing with if the overlay is deleted,
 
          4       there would be extensive allocation of
 
          5       additional land for commercial use, without any
 
          6       alternative way of dealing with that issue.
 
          7            The next slide deals with mixed use
 
          8       categories, a land use category that the
 
          9       Department encourages be used because it
 
         10       provides for residential, commercial, retail,
 
         11       and other uses to be located in a single area.
 
         12            But a key factor to that is arriving with
 
         13       some percentages of those uses within each mixed
 
         14       use category.  That's in the overlay.  You take
 
         15       the overlay away, and we don't have it.
 
         16            Those three things are primary indicators
 
         17       under the Department's urban sprawl rule, which
 
         18       are looked at very carefully by a
 
         19       Hearing Officer.  Because this is a very
 
         20       important rule, the urban sprawl rule.  It's
 
         21       been litigated, it's been before the
 
         22       Legislature, it's -- and it's -- based on the
 
         23       findings of the Hearing Officer, dealing with
 
         24       overallocation of land, commercial, and mixed
 
         25       use, that those are the indicators that he

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          1       relied on to make a finding that, without the
 
          2       overlay, the Lee County plan would lead to urban
 
          3       sprawl.
 
          4            And as recently as July 2nd, the First
 
          5       District Court of Appeals upheld our urban
 
          6       sprawl rule in the case of Florida East Coast
 
          7       Industries versus DCA.
 
          8            The elimination of the overlay also brings
 
          9       great concern to the Department of Community
 
         10       Affairs in the area of knowing the kinds of
 
         11       development in the future that can be expected
 
         12       in the Coastal High Hazard Area, that area
 
         13       nearest to the coast that'll be impacted by
 
         14       hurricanes.
 
         15            This is a new requirement that was added,
 
         16       and specifically detailed in the 1993
 
         17       legislation, one of the very reasons that a
 
         18       county does an overall EAR in order to update
 
         19       its plan, and recognize the new direction given
 
         20       by legislation.
 
         21            Without the overlay again, and without
 
         22       understanding what would be used as an
 
         23       alternative, we have no idea how the land uses
 
         24       would evolve in that critical Coastal High
 
         25       Hazard Area.

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          1            Now, an area we're very close in Lee County
 
          2       is in Lehigh Acres, an area that is -- again,
 
          3       the prior -- the past decision over
 
          4       130,000 lots, of which about 13 percent are
 
          5       built out.
 
          6            That's an area that we believe we can work
 
          7       with Lee County, interceptor plan as recommended
 
          8       by the Hearing Officer, and provide the special
 
          9       attention that would allow this area to develop
 
         10       in recognition of what it is today, and how it
 
         11       can best fit into the future of Lee County.
 
         12            We believe that the areas of water and
 
         13       sewer need to be looked at as that sector plan
 
         14       is advanced.
 
         15            Now, there is another area in the specific
 
         16       area of the proposed changes to the plan dealing
 
         17       with Airport Commercial where the
 
         18       Hearing Officer made the specific findings that
 
         19       the area --
 
         20            And you can probably point to it,
 
         21       Stephanie, on the map.
 
         22            -- is suitable for the kind of land use
 
         23       activities that the Airport Commercial category
 
         24       would include.
 
         25            However, the Hearing Officer did not find

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          1       any need for an additional area to be amended
 
          2       into this new category.  So while the
 
          3       suitability is there, the need was not
 
          4       demonstrated.
 
          5            Now, we understand this is an area that is
 
          6       very important to Lee County and the kind of
 
          7       area that I know the Governor and Cabinet often
 
          8       like to try to find common ground with local
 
          9       government.
 
         10            If this is an area that you decide to
 
         11       proceed in, based on the Hearing Officer's
 
         12       findings of suitability, we would say that it
 
         13       only should be approached if we -- if it's with
 
         14       the commitment and direction to the County that
 
         15       policies be added to the plan that make it clear
 
         16       that we -- we're trying to discourage further
 
         17       incursions of this type -- of commercial urban
 
         18       uses into these areas that would include roads,
 
         19       and, therefore, we could lay the groundwork for
 
         20       any future change to be evaluated in the context
 
         21       of -- of any inclusion of this airport
 
         22       commercial --
 
         23            GOVERNOR CHILES:  Now, just so I understand
 
         24       that --
 
         25            SECRETARY MURLEY:  Yes, sir.

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          1            GOVERNOR CHILES:  -- is what you're saying
 
          2       is that the Hearing Officer found that there was
 
          3       not a -- a need, even though it could be a
 
          4       suitability.
 
          5            SECRETARY MURLEY:  There was a finding of
 
          6       suitability, Governor --
 
          7            GOVERNOR CHILES:  The County -- that
 
          8       portion is very important to the County, to do
 
          9       something there.  And what you're saying is, the
 
         10       Department is saying that if the Cabinet wanted
 
         11       to change that, in effect, go against the
 
         12       Hearing Officer on that regard, you would want
 
         13       to see it done conditioned upon the County
 
         14       agreeing that --
 
         15            SECRETARY MURLEY:  The further remedial
 
         16       amendments which would --
 
         17            GOVERNOR CHILES:  Further remedial
 
         18       amendments in --
 
         19            SECRETARY MURLEY:  Yes, sir.
 
         20            GOVERNOR CHILES:  -- that's in commercial
 
         21       type land, which you say they've already got too
 
         22       much of now.
 
         23            SECRETARY MURLEY:  That's right.  I mean,
 
         24       future amendments --
 
         25            GOVERNOR CHILES:  That would be some kind

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          1       of restrictions on that.
 
          2            Okay.
 
          3            SECRETARY MURLEY:  Yes, Governor.
 
          4            Finally -- and I know that time is short,
 
          5       and I'm going to cut right to the issue -- and
 
          6       that is, the way the law now reads, members of
 
          7       the Cabinet, is that the amendments are not into
 
          8       effect.
 
          9            You will issue a final order directing,
 
         10       based on your reading of the Hearing Officer's
 
         11       findings of fact and conclusions of law, your
 
         12       directions to Lee County.
 
         13            If they decide to follow through with
 
         14       those, and to -- and we commit to you, and to
 
         15       Lee County, we will work on every one of those
 
         16       items to try to find reasonable solutions, then
 
         17       there are no sanctions.
 
         18            If Lee County decides to proceed not -- and
 
         19       put into effect the amendments notwithstanding
 
         20       any direction you may give in your final order,
 
         21       then sanctions do apply under the law.  And we
 
         22       believe it is appropriate that the Governor and
 
         23       Cabinet include and change the way the State
 
         24       normally funds activities in this county where
 
         25       the plan, based on the Hearing Officer's

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          1       findings of fact and conclusions of law in your
 
          2       final order, would be out of compliance.
 
          3            I'd be glad to be available after the other
 
          4       presentations to answer any questions, Governor,
 
          5       members of the Cabinet.
 
          6            GOVERNOR CHILES:  All right.  Thank you.
 
          7            MR. REESE:  Governor Chiles, members of the
 
          8       Cabinet, I'll be real brief.  I'm Tom Reese.  I
 
          9       represent the Responsible Growth Management
 
         10       Coalition.
 
         11            We were -- Responsible Growth Management
 
         12       Coalition was organized in 1987 for the specific
 
         13       purpose of a group of Lee County citizens
 
         14       getting together to try to implement the Growth
 
         15       Management Act, and we've been very actively
 
         16       involved in the Lee County comp plan.
 
         17            During its inception in 1989, we signed the
 
         18       settlement agreement when -- with regard to the
 
         19       initial 1989 plan which required the 2010
 
         20       overlay to address the overallocation problem,
 
         21       and we participated in the hearing below.  It
 
         22       was a two-week hearing.
 
         23            And I just want to stress, the 2010 overlay
 
         24       is a very important component, and something
 
         25       we've been addressing for a number of years,

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          1       since 1989, concerning the Lee plan.
 
          2            And we are in support of the staff's draft
 
          3       order, the July 19th draft final order, and feel
 
          4       that is the appropriate method to affirm the
 
          5       Hearing Officer's findings of facts and
 
          6       recommendations, and give the recommended
 
          7       remedial actions that he suggested in that
 
          8       recommended order.
 
          9            With regard to the Alico property, they're
 
         10       the 1400 Airport -- acre Airport Commerce, that
 
         11       is important for two reasons, as
 
         12       Secretary Murley stated.
 
         13            One is, there's a very significant
 
         14       overallocation on the commercial.  There is just
 
         15       no need for any more light industrial,
 
         16       Airport Commerce type designations in
 
         17       Lee County.  They have sufficient amount for a
 
         18       vast number of years.
 
         19            So if you were to try to address the
 
         20       Hearing Officer's concerns on overallocation,
 
         21       you need to address the fact that there is this
 
         22       tremendous allocation elsewhere, and you'd have
 
         23       to try to reduce that allocation on other
 
         24       properties.
 
         25            The other problem with the Airport Commerce

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          1       is, this is east of the interstate.  This is
 
          2       property that's currently designated 1 unit per
 
          3       10 acres, the Density Reduction/Groundwater
 
          4       protection area.
 
          5            And it's part -- it's in between the new
 
          6       tenth university and the airport.  And it's --
 
          7       it sets a precedent.  If it's approved and is
 
          8       allowed to go into effect, it sets a precedent
 
          9       for further development east of the interstate
 
         10       at a time when the Lee plan has all these
 
         11       indicators of urban sprawl and overallocation.
 
         12            Now, we were willing to try to negotiate
 
         13       the Airport Commerce.  We met several times with
 
         14       Lee County and Department of Community Affairs
 
         15       on trying to work out some type of solution for
 
         16       this designation.
 
         17            But it's our position, the only way -- and
 
         18       it's, I believe, the same position
 
         19       Secretary Murley stated -- the only way you can
 
         20       assure that you're not going to have further
 
         21       urban sprawl is to come up with some type of
 
         22       policies concerning future expansion into the
 
         23       Density Reduction/Groundwater Resource
 
         24       protection area.
 
         25            We also have concerns about long-term plans

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          1       for roads in this area.  And that is being
 
          2       addressed currently by the Arnold committee,
 
          3       which is looking at all of southeast Lee County
 
          4       to try to address the growth management
 
          5       concerns.
 
          6            But we think at this point, the best thing
 
          7       to do is just approve the staff recommendation
 
          8       of July 19th.
 
          9            And I'd like to introduce Gary Beardsley,
 
         10       who's the President of Responsible Growth
 
         11       Management Coalition.  And he's driven a long
 
         12       way.  He drove here all this morning.  In fact,
 
         13       I believe he left at approximately midnight to
 
         14       get here.
 
         15            GOVERNOR CHILES:  Thank you, sir.
 
         16            DR. BRADLEY:  There are about 3 minutes,
 
         17       left, Governor.
 
         18            MR. BEARDSLEY:  Good afternoon, Governor,
 
         19       and also Cabinet members.
 
         20            The main reason our delegation of three
 
         21       came here is to show you that there are many
 
         22       organizations that we represent that have a lot
 
         23       of concerns about the future of Lee County.
 
         24            Also my wife is half Cherokee, and she
 
         25       reminded me when I was ready to leave that

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          1       Chief Mankiller, who is the Chief, and happens
 
          2       to be a female, of the Cherokee Nation, said
 
          3       that policy decisions made by the tribe -- and
 
          4       I think Governor Chiles said that you're the
 
          5       policy decision makers -- need to be made with a
 
          6       look into the future of what the implications of
 
          7       those decisions are going to be into multiple
 
          8       generations.
 
          9            And the Responsible Growth Management
 
         10       Coalition feels that you will make the right
 
         11       decision, and you will look into the future of
 
         12       Lee County, and make sure that you also approve
 
         13       the Hearing Officer, and also the DCA's
 
         14       recommendations.
 
         15            Thank you very much.
 
         16            GOVERNOR CHILES:  Thank you, sir.
 
         17            MR. ARLINE:  Good afternoon, Governor, and
 
         18       Commissioners.
 
         19            I'm Terrell Arline.  I'm Legal Director of
 
         20       1000 Friends of Florida.  We're a statewide
 
         21       growth management advocacy group.  And we
 
         22       support the recommended order and the
 
         23       recommendations of Secretary Murley and your
 
         24       staff.
 
         25            Thank you.

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          1            GOVERNOR CHILES:  Thank you, sir.
 
          2            MR. CASSANI:  Good afternoon,
 
          3       Governor Chiles and Cabinet members.
 
          4            For the record, my name is John Cassani.
 
          5       I've been a resident of Lee County for eighteen
 
          6       plus years, and I'm here this afternoon
 
          7       representing the Environmental Confederation of
 
          8       Southwest Florida.
 
          9            Thirteen of our forty-two member
 
         10       organizations are from Lee County.  And we have
 
         11       been involved with the EAR and the Lee County
 
         12       comp plan for the past two years, and a variety
 
         13       of other growth management issues locally.
 
         14            In general, we are very concerned about
 
         15       growth management in Lee County.  We are
 
         16       disturbed as to how liquid a document the comp
 
         17       plan has become.  We understand the need for
 
         18       some flexibility, but the plans become just too
 
         19       liquid, resulting in what we feel is an
 
         20       overallocated development.
 
         21            We feel that if the proposed amendments are
 
         22       adopted, the comp plan will lose much of its
 
         23       original intent.  We urge you and your Cabinet
 
         24       to oppose adoption of the proposed amendments.
 
         25            Thank you for your time and consideration.

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          1            GOVERNOR CHILES:  Thank you, sir.
 
          2            MR. DANIELSON:  Good afternoon,
 
          3       Governor Chiles, and Cabinet members.
 
          4            My name is Lyle Danielson, and I'm
 
          5       representing the Audubon Society.
 
          6            I've been in Cape Coral for 30 years, and
 
          7       I've seen tremendous changes.  And I just feel
 
          8       that we've got to put some control, and,
 
          9       of course, that's what responsible government is
 
         10       all about.
 
         11            And so we agree very strongly with
 
         12       Tom Reese here and the DCA, and we ask you to
 
         13       consider their amendments.
 
         14            Thank you.
 
         15            GOVERNOR CHILES:  Thank you, sir.
 
         16            MS. ARMSTRONG:  Good morning.
 
         17            Eva Armstrong representing the Audubon
 
         18       Society in Florida.
 
         19            Most of our chapters are getting involved
 
         20       in the EAR process in all of their counties.
 
         21       Three of the previous four speakers are members
 
         22       of the Audubon Society in Lee County.  And the
 
         23       growth management decisions that you make here,
 
         24       when it gets to this point, are very important
 
         25       to them.

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          1            We support the recommended final order that
 
          2       the staff has put together.  We think it's very
 
          3       clearly written, very fair.  We'd like the
 
          4       wetlands provision to be a little bit stronger,
 
          5       but it's a fair compromise, so we urge you to
 
          6       support it.
 
          7            Thanks.
 
          8            DR. BRADLEY:  That was just over
 
          9       15 minutes, Governor, about 16 minutes.
 
         10            Now we have some folks that have a slightly
 
         11       different view.  In particular, I'd like to
 
         12       bring them all up here at once.
 
         13            (Secretary Mortham exited the room.)
 
         14            DR. BRADLEY:  First will be Ken Oertel from
 
         15       Lee County, followed by Tim Jones from
 
         16       Lee County, Bill Hyde from Alico properties, and
 
         17       Russell Schropp from Zemel property.
 
         18            Ken, why don't you go first.
 
         19            MR. OERTEL:  Let me yield to Mr. Hyde and
 
         20       Mr. Schropp.  I'm not sure the County will have
 
         21       any comments:
 
         22            MR. HYDE:  Good afternoon.
 
         23            My name is William Hyde of Tallahassee,
 
         24       Florida, and I'm here today on behalf of Alico,
 
         25       Inc.  With me here today is our trial counsel,

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          1       Neale Montgomery; as well as the Chairman and
 
          2       CEO of our Board, Ben Hill Griffin.
 
          3            Secretary Murley posed some findings of
 
          4       fact to you which suggested support for his
 
          5       position.  I think there are other findings of
 
          6       fact that support ours.
 
          7            And I think the issue's really been
 
          8       crystallized for you.  You can choose the route
 
          9       that Lee County -- excuse me -- that DCA is
 
         10       advocating.  I think it's the route of land use
 
         11       planning by number crunching.
 
         12            Or you can choose the route that Lee County
 
         13       and Alico are proposing, at least for the Alico
 
         14       site.  And that is, giving due recognition to
 
         15       the particularly characteristics of a site;
 
         16       giving some deference to a local government's
 
         17       determination of what's appropriate for its
 
         18       future needs; and finally, to give some meaning
 
         19       and context to the -- this government's often
 
         20       stated public comments about supporting economic
 
         21       development.
 
         22            The finding of fact that I would like to
 
         23       emphasize for your edification --
 
         24            (Secretary Mortham entered the room.)
 
         25            MR. HYDE:  -- is finding of fact 100.  And

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          1       I'm quoting here.  These are not arguments.
 
          2       These are the direct statements.
 
          3            In terms of location, the amendment
 
          4       property; that is, the Alico property, is
 
          5       perfectly suited for ACUs.  I-75 and other AC
 
          6       designated property is to the immediate west of
 
          7       the amendment property.  The Southwest Florida
 
          8       Regional -- or International Airport is to the
 
          9       immediate north of the amendment property.
 
         10            A second runway and a new cargo handling
 
         11       facility are planned for construction to the
 
         12       south of the existing airport runway.  When
 
         13       built, the new facilities will practically be
 
         14       touching the northern boundary of the amendment
 
         15       property, and the proposed new south airport
 
         16       access will cross the amendment property, and
 
         17       intersect Alico Road, which is the southern
 
         18       boundary of the amendment property.
 
         19            For those of you who haven't seen this
 
         20       aerial photograph, this is the Southwest Florida
 
         21       International Airport.  This area bounded in red
 
         22       just below it, to the south of it, is the
 
         23       so-called Alico AC property.
 
         24            So you can see, we are immediately next to
 
         25       the property -- the airport.

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          1            TREASURER NELSON:  Where is the university
 
          2       on that photograph?
 
          3            MR. HYDE:  I think the university is a
 
          4       little bit farther south --
 
          5            TREASURER NELSON:  That's it where the lake
 
          6       is, isn't it?
 
          7            MR. HYDE:  This right here.
 
          8            TREASURER NELSON:  Uh-hum.
 
          9            MR. HYDE:  Okay.
 
         10            TREASURER NELSON:  Does the university
 
         11       property border this subject land?
 
         12            MR. HYDE:  It doesn't appear to from this
 
         13       aerial photograph, although it's fairly
 
         14       proximate to it.
 
         15            MS. MONTGOMERY:  The property in white down
 
         16       here is the university property right here.
 
         17            TREASURER NELSON:  Was that answer yes or
 
         18       no?
 
         19            MR. HYDE:  I said, it was fairly proximate,
 
         20       but it does not border it.
 
         21            Okay.  I thought I'd made myself clear on
 
         22       that point.
 
         23            Another finding of fact that I think
 
         24       deserves particular emphasis is 107, which
 
         25       states:  The County has a legitimate need to

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          1       diversify its economy so that it is not so
 
          2       dependent on tourism.  It is the County's
 
          3       prerogative to attempt to develop its regional
 
          4       airport into an international trade center.
 
          5            In view of the suitability of the amendment
 
          6       property for AC and its projected role in
 
          7       furthering the County's plans to develop its
 
          8       regional airport into an international trade
 
          9       center, the amendment property should be viewed
 
         10       as a valuable economic resource in need of
 
         11       protection.
 
         12            It is appropriate when trying to protect a
 
         13       resource to plan for the needs of generations to
 
         14       come.
 
         15            There are other findings of fact which
 
         16       basically say that if it's not used for this
 
         17       purpose at some point in the future, it'll
 
         18       probably revert to the uses of rock mine, which
 
         19       will be of a perhaps transitory benefit, but
 
         20       certainly not a permanent benefit like AC would
 
         21       be.
 
         22            I think that Secretary Murley has already
 
         23       suggested the broad outlines of a compromise on
 
         24       this issue, and I would like to urge it.  But he
 
         25       has suggested a condition which I don't think is

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          1       necessary, and that is that there be some
 
          2       directive for a remedial amendment to the effect
 
          3       that future intrusions into the areas to the
 
          4       east of I-75 be discouraged.
 
          5            I would suggest to you that it's
 
          6       unnecessary for a couple of very basic reasons.
 
          7            First of all, the current land use
 
          8       designations of those properties under the Lee
 
          9       plan don't allow urban uses anyway already.
 
         10       Therefore, they're precluded.  If you were going
 
         11       to have -- or permit them, you would have to
 
         12       change the land use map to do so.  So it's
 
         13       unnecessary.  It's surplusage.
 
         14            Policy 2.4.2, and I won't bore you with it,
 
         15       but it already sets in place a special review
 
         16       process for several areas of -- or several types
 
         17       of lands in -- in the County, most particularly
 
         18       the so-called Density Reduction/Groundwater
 
         19       Resource land use category, which is -- embodies
 
         20       all of these lands there.
 
         21            And then finally, I would like to say that
 
         22       in addition to the fact that I think it's
 
         23       unnecessary, I urge you to be very careful when
 
         24       crafting the terms of a recommendation for
 
         25       remedial action, that you carefully state what

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          1       that directive is.
 
          2            To use a term like intrusions into that
 
          3       area is probably a bit too broad.  Lawyers can
 
          4       make a lot of deal -- or a lot of hullabaloo
 
          5       about what does an intrusion mean.
 
          6            I would suggest if you want to pursue that
 
          7       route, you preclude or discourage -- let's put
 
          8       it that way -- discourage future land use
 
          9       amendments in the DRGR category.  I think
 
         10       everybody would understand what that meant.
 
         11            Thank you.
 
         12            GOVERNOR CHILES:  Thank you.
 
         13            TREASURER NELSON:  May I ask a couple
 
         14       questions?
 
         15            GOVERNOR CHILES:  Sure.
 
         16            TREASURER NELSON:  Could you show us that
 
         17       photograph again?
 
         18            MR. HYDE:  Yes.
 
         19            TREASURER NELSON:  Now, the subject
 
         20       property is about 1400 acres; is that right?
 
         21            MR. HYDE:  Yes.  More or less.
 
         22            TREASURER NELSON:  All right.  And the
 
         23       question is:  What is future use of that
 
         24       property?  Show me the northern boundary of the
 
         25       university property.

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          1            MR. HYDE:  The northern boundary is
 
          2       approximately right here.
 
          3            TREASURER NELSON:  Okay.  And what is the
 
          4       ownership of that tract in between?
 
          5            MR. HYDE:  This is a rock mining site.  I
 
          6       don't know the ownership of that intervening
 
          7       tract.  But some -- perhaps someone else could
 
          8       advise me.
 
          9            TREASURER NELSON:  What is it being used
 
         10       for?
 
         11            MR. HYDE:  Rock mining.
 
         12            TREASURER NELSON:  Is that owned by Alico
 
         13       as well?
 
         14            MR. GRIFFIN:  This is Alico Road here.  The
 
         15       subject property that we're discussing today is
 
         16       north of Alico Road.  The university site is
 
         17       here.  This is the core campus.  The university
 
         18       property goes no further than about right along
 
         19       here.
 
         20            So the -- the university campus is here,
 
         21       some 750 acres, then we have the
 
         22       university community, housing that goes here.
 
         23       We're at a lake.  And then you have Alico Road,
 
         24       which then adjoins some two sections,
 
         25       two-and-a-half sections, that is in question

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          1       today.
 
          2            And our basic point is we're not asking to
 
          3       do anything with that property today.  We just
 
          4       want to have the opportunity that it does not
 
          5       get locked down to the point that at some future
 
          6       date, that if we can, with our -- and the needs
 
          7       of the public, show that this property needs to
 
          8       be utilized for the expansion of the airport,
 
          9       for the hiring of the student body to help them
 
         10       go to school, and enhance the economic
 
         11       development in this area, then at least we would
 
         12       have the opportunity to go before that board and
 
         13       make our request.
 
         14            TREASURER NELSON:  Don't put it down yet.
 
         15       Keep it up.
 
         16            COURT REPORTER:  Your name, please.
 
         17            MR. GRIFFIN:  I'm Ben Hill Griffin, III,
 
         18       I'm sorry.
 
         19            TREASURER NELSON:  All right.  Does --
 
         20            MR. GRIFFIN:  I do know this property.
 
         21            TREASURER NELSON:  Did -- did Alico give
 
         22       the land for the university?
 
         23            MR. GRIFFIN:  It did, yes, sir.
 
         24            TREASURER NELSON:  All -- how many acres?
 
         25            MR. GRIFFIN:  One thousand.

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          1            TREASURER NELSON:  And show me again the
 
          2       north boundary of the university.
 
          3            MR. GRIFFIN:  The north boundary of the
 
          4       university --
 
          5            TREASURER NELSON:  Of the university land.
 
          6            MR. GRIFFIN:  Land --
 
          7            TREASURER NELSON:  That was given.
 
          8            MR. GRIFFIN:  -- is here.
 
          9            TREASURER NELSON:  Is there.  What --
 
         10       what's up above then?
 
         11            MR. GRIFFIN:  What is up above is owned by
 
         12       Alico.
 
         13            TREASURER NELSON:  All right.
 
         14            MR. GRIFFIN:  This is land owned by Alico.
 
         15            TREASURER NELSON:  All right.  And that is
 
         16       presently being used as a rock mine.
 
         17            MR. GRIFFIN:  That is correct.  And we're
 
         18       under contract with Florida Rock that all mining
 
         19       will cease in this area prior to the opening of
 
         20       the university, which is scheduled for September
 
         21       of '97.
 
         22            It is very interesting to me that when we
 
         23       gave the thousand acres, 750 went to the
 
         24       Board of Regents, and they are the ones that
 
         25       made this configuration.  And they also -- we

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          1       also gave some 200 acres of endowment land.
 
          2       Ladies and gentlemen, the endowment 200 acres
 
          3       lies right here.
 
          4            So our own Board of Regents has got
 
          5       200 acres that that lies just north of
 
          6       Alico Road, which they, in their judgment,
 
          7       selected for the benefit of the university as --
 
          8       as an endowment, which is north of Alico Road.
 
          9            TREASURER NELSON:  Did you make that as a
 
         10       gift to the Board of Regents?
 
         11            MR. GRIFFIN:  Yes, sir.
 
         12            TREASURER NELSON:  All right.  Now, where
 
         13       is the -- the proposed airport expansion at this
 
         14       point, as far as the Department --
 
         15            MR. GRIFFIN:  It will come --
 
         16            TREASURER NELSON:  -- the Department of
 
         17       Community Affairs.
 
         18            MR. GRIFFIN:  Basically it will come south
 
         19       and east.
 
         20            TREASURER NELSON:  Could the Secretary
 
         21       point out what -- what is in this
 
         22       Comprehensive Plan being proposed for the
 
         23       expansion of the airport?
 
         24            SECRETARY MURLEY:  I don't believe anything
 
         25       is.  There is no amendment pending.  I believe

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          1       that they're working with the FAA.  But at some
 
          2       point when they decide that they know the
 
          3       footprint, they'll need a comp plan amendment.
 
          4            That's --
 
          5            TREASURER NELSON:  How --
 
          6            SECRETARY MURLEY:  -- that's our point.
 
          7            TREASURER NELSON:  -- how was the land for
 
          8       the airport acquired?  Was it purchased or
 
          9       donated, or both?
 
         10            SECRETARY MURLEY:  Commissioner, I have no
 
         11       idea.  I do not know.  Someone from Lee County
 
         12       may know.
 
         13            MR. JONES:  Purchased.
 
         14            SECRETARY MURLEY:  Purchased.
 
         15            COURT REPORTER:  Your name?
 
         16            MR. JONES:  Tim Jones.
 
         17            SECRETARY MURLEY:  Tim Jones.
 
         18            GOVERNOR CHILES:  All right.
 
         19            DR. BRADLEY:  We're back on track,
 
         20       Governor.
 
         21            We've got -- we added -- I just added
 
         22       5 minutes to -- I gave the 5 minutes to the
 
         23       Commissioner.  So we're going to finish at 1:45
 
         24       here.
 
         25            GOVERNOR CHILES:  All right, sir.

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          1            MR. SCHROPP:  Good afternoon, Governor,
 
          2       Cabinet members.
 
          3            For the record, my name is
 
          4       Russell Schropp.  I'm counsel of record for the
 
          5       Zemel family in this proceeding.  I have two
 
          6       issues just briefly to touch upon here today.
 
          7            Zemel owns about 8600 acres of land in
 
          8       northwest Lee County.  At hearing, we contested
 
          9       a future land use map amendment that placed this
 
         10       property in a newly created Open Lands
 
         11       classification, and we have taken exceptions to
 
         12       the Hearing Officer's recommended order on this
 
         13       issue.
 
         14            And rather than reargue them here before
 
         15       you today, I would simply urge your
 
         16       consideration and approval of same.
 
         17            The second issue deals with a -- a section
 
         18       entitled Implementation of Stipulations in the
 
         19       proposed final order that you have before you.
 
         20       As the draft order states, the County and the
 
         21       Department of Community Affairs entered into two
 
         22       stipulations at or before hearing, the second of
 
         23       which deals with some defective language in the
 
         24       County's adoption ordinance.
 
         25            I was going to urge you to change the

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          1       language in the proposed order.  But it's my
 
          2       understanding there's been a memorandum sent out
 
          3       yesterday that does that amendment that I've
 
          4       requested under cover of memo from
 
          5       Secretary Bradley dated July 22nd, 1996.
 
          6            And I'll just read it.  It says:  As
 
          7       amended, the order merely recognizes the second
 
          8       stipulation entered into between Lee County and
 
          9       the Department, but takes no action on that
 
         10       stipulation.
 
         11            And if that's, in fact, what the amended
 
         12       final order does, then I have no issue with
 
         13       that.
 
         14            I would, however, like to include a copy of
 
         15       that memorandum as part of the record in this
 
         16       proceeding.
 
         17            GOVERNOR CHILES:  All right, sir.
 
         18            MR. SCHROPP:  If that would be acceptable.
 
         19            Thank you, sir.
 
         20            DR. BRADLEY:  Finally, we have Ken Oertel
 
         21       from Lee County again.  And he has 6 minutes
 
         22       left.
 
         23            MR. OERTEL:  Finally, good afternoon
 
         24       Governor, and members of the Cabinet.  I'm
 
         25       Ken Oertel from Oertel, Hoffman, Fernandez &

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          1       Cole here in Tallahassee on behalf of
 
          2       Lee County.  My comments will be brief.
 
          3            First, Mr. Murley is correct, this case has
 
          4       always been largely about the Lee County
 
          5       overlay.  The overlay was adopted in 1989, and
 
          6       it's been an experiment.  Lee County's the only
 
          7       county in the state of Florida whose plan
 
          8       incorporates the overlay concept.
 
          9            Mr. Murley was kind enough to concede, it's
 
         10       been a problem for Lee County.  Lee County would
 
         11       use a stronger word.  It's been a continuous
 
         12       disaster for Lee County.
 
         13            We propose these amendments in an effort to
 
         14       replace the overlay.  We thought we had
 
         15       satisfactorily found the apparatus that would
 
         16       substitute an easy to implement control for land
 
         17       use.  The Hearing Officer, I think, found with
 
         18       us most of the way, but clearly said more work
 
         19       needs to be done.
 
         20            In a naive world, I would argue with you to
 
         21       reject the Hearing Officer's findings on that,
 
         22       but I don't expect you'd be a kind audience to
 
         23       that.
 
         24            I wish to tell you, we will be back.  We do
 
         25       hope we will find the way to find an apparatus

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          1       that will be a satisfactory substitute for the
 
          2       overlay.  I do want you to know here, because
 
          3       maybe a year or two or less, we hope, from now,
 
          4       you will see how we tried to work to solve this
 
          5       problem.
 
          6            And indisputably, it's been a big problem
 
          7       for Lee County.  Lee County's biggest regret is
 
          8       that it ever adopted this overlay.  And it's
 
          9       been a nightmare for them, and it'll continue to
 
         10       try to work with it until something that
 
         11       satisfies -- maybe a Hearing Officer can be
 
         12       found.
 
         13            With regard to the Airport Commerce,
 
         14       Lee County is very interested in that.  It's an
 
         15       opportunity for the County to develop an
 
         16       international air center in its airport.
 
         17            The Hearing Officer found that Lee County
 
         18       needs to diversify its economy.  This is the
 
         19       perfect opportunity for it to do so.  And I
 
         20       strongly urge you to reject the concept that's
 
         21       espoused by the Department that Lee County must
 
         22       show it will need this acreage by 2020, which is
 
         23       our horizon year.
 
         24            In a little bit of history, we went through
 
         25       a big fight, and several years ago, we were on

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          1       the Department's side on an issue in the
 
          2       Lee County plan.  That may surprise you here,
 
          3       but it's true.
 
          4            In the 1990 amendments, we adopted the
 
          5       Density Reduction/Groundwater Resource area for
 
          6       Lee County.  It's the large green area.  And it
 
          7       comprises over 100 square miles that Lee County
 
          8       voluntarily downzoned to protect its groundwater
 
          9       resources.
 
         10            It's this large area here, an area -- the
 
         11       northern tier of sections.
 
         12            The main purpose of that was to protect
 
         13       Lee County's water supply for future
 
         14       generations.  And the land owners objected
 
         15       saying that that supply wasn't needed by 2010,
 
         16       which was our horizon year.  But we persuaded
 
         17       the Hearing Officer that when you protect a
 
         18       resource, you should have an infinite planning
 
         19       horizon.
 
         20            And the Hearing Officer in this case
 
         21       agreed.  He said, you plan for generations to
 
         22       come.  He said that in regard to the
 
         23       Airport Commerce amendment.
 
         24            Now, as Mr. Griffin's shown you here, the
 
         25       surrounding land is zoned for rock mining.  And

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          1       so is the area for Airport Commerce.
 
          2            Now, the choice is simple here.  If you
 
          3       don't allow Lee County to implement this
 
          4       Airport Commerce amendment, I think you can bet
 
          5       that this will be a rock mine within 20 years.
 
          6            Lee County's only hope of expanding its
 
          7       airport to this extent is for this amendment to
 
          8       be approved.
 
          9            Now, if Lee County's wrong, if it can't
 
         10       develop this successfully as an economic center,
 
         11       the land will stay as it is today.  It'll be
 
         12       vacant land.  It may still become a rock mine,
 
         13       but Lee County hopes it won't.
 
         14            We hope that the owner will be patient, and
 
         15       wait for international air commerce to develop
 
         16       in Lee County sufficient to justify the use of
 
         17       all this land for airport related purposes.
 
         18            So we think the Hearing Officer's findings
 
         19       on this were very favorable to this amendment.
 
         20       And it's a very simple matter for you here now
 
         21       to enter a final order saying that the
 
         22       Airport Commerce amendment should be approved.
 
         23            And we'd all appreciate that very much.
 
         24            And thank you.
 
         25            DR. BRADLEY:  I think that's all the

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          1       speakers, Governor.
 
          2            Do you have any -- are there questions or
 
          3       any rebuttal that you want?
 
          4            GOVERNOR CHILES:  Well, we got into this
 
          5       thing, I'd just like to hear -- we had a little
 
          6       semantics about the conditions on if we saw fit
 
          7       to grant the amendment in the Airport Commerce.
 
          8            Do we have some wording on that?  Or does
 
          9       the Department have, or does somebody have, or
 
         10       what --
 
         11            SECRETARY MORTHAM:  I've got some --
 
         12            COMMISSIONER CRAWFORD:  Make a motion that
 
         13       I think --
 
         14            GOVERNOR CHILES:  All right.  Well, then
 
         15       I think that's -- that's --
 
         16            SECRETARY MORTHAM:  Okay.  With that,
 
         17       Governor, I'd like to move the recommended final
 
         18       order with one amendment.
 
         19            And in light of the Hearing Officer's
 
         20       findings that the Alico property is perfectly
 
         21       suited to this so-called AC, Airport Commercial,
 
         22       designation, and in light of his findings that
 
         23       the County has a legitimate need to diversify
 
         24       its economy so that it's not so dependent on
 
         25       tourism, I'd like to move that the draft final

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          1       order be amended to approve the AC amendment for
 
          2       the Alico property, contingent on Lee County
 
          3       making remedial amendments to its plan by
 
          4       adopting policies to ensure that future plan
 
          5       amendments take into account the commercial and
 
          6       light industrial uses included in the AC
 
          7       designation.
 
          8            GOVERNOR CHILES:  Is that --
 
          9            COMMISSIONER BROGAN:  Governor, I would --
 
         10            GOVERNOR CHILES:  Yes, sir.
 
         11            COMMISSIONER BROGAN:  -- rather than to
 
         12       possibly skip some parliamentary procedure,
 
         13       rather than second it as is, I would ask the
 
         14       Secretary to also consider some possible
 
         15       wording, and that would be:  Additionally the
 
         16       County shall make remedial amendments to
 
         17       discourage future land use amendments into the
 
         18       southeast portion of the County.
 
         19            GOVERNOR CHILES:  All right.  Is that -- do
 
         20       you accept that as an amendment to your
 
         21       amendment --
 
         22            SECRETARY MORTHAM:  As an amendment to the
 
         23       amendment?
 
         24            GOVERNOR CHILES:  Yeah.
 
         25            SECRETARY MORTHAM:  Sure.

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          1            GOVERNOR CHILES:  All right.  Then do we
 
          2       have a --
 
          3            COMMISSIONER CRAWFORD:  Second.
 
          4            GOVERNOR CHILES:  -- second.
 
          5            We have a second.
 
          6            Is there discussion?
 
          7            Many as favor the motion as amended,
 
          8       signify by saying aye.
 
          9            COMMISSIONER CRAWFORD:  Aye.
 
         10            ATTORNEY GENERAL BUTTERWORTH:  Aye.
 
         11            COMMISSIONER BROGAN:  Aye.
 
         12            COMPTROLLER MILLIGAN:  Aye.
 
         13            GOVERNOR CHILES:  Opposed, no.
 
         14            Motion is carried.
 
         15            COMMISSIONER CRAWFORD:  We're done.
 
         16            DR. BRADLEY:  We're done on that.
 
         17            (The Administration Commission Agenda was
 
         18       concluded.)
 
         19                             *
 
         20            (The Cabinet meeting was concluded at
 
         21       1:50 p.m.)
 
         22
 
         23
 
         24
 
         25

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          1                 CERTIFICATE OF REPORTER
 
          2
 
          3
 
          4   STATE OF FLORIDA:
 
          5   COUNTY OF LEON:
 
          6            I, LAURIE L. GILBERT, do hereby certify that
 
          7   the foregoing proceedings were taken before me at the
 
          8   time and place therein designated; that my shorthand
 
          9   notes were thereafter translated; and the foregoing
 
         10   pages numbered 1 through 197 are a true and correct
 
         11   record of the aforesaid proceedings.
 
         12            I FURTHER CERTIFY that I am not a relative,
 
         13   employee, attorney or counsel of any of the parties,
 
         14   nor relative or employee of such attorney or counsel,
 
         15   or financially interested in the foregoing action.
 
         16            DATED THIS 2ND day of AUGUST, 1996.
 
         17
 
         18
 
         19                           LAURIE L. GILBERT, RPR, CCR
                                      100 Salem Court
         20                           Tallahassee, Florida 32301
                                      (904) 878-2221
         21
 
         22
 
         23
 
         24
 
         25

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