Feb 24, 2009 8:05 pm US/Eastern
Everglades Land Deal May Be Dead In The Water
TALLAHASSEE (CBS4) ―
Once heralded by Governor Charlie Crist as "monumental as the creation of our nation's first national park," a land deal that would have restored a major section of the Everglades may be dead in the water.
Last year, U.S. Sugar Corp. agreed to sell nearly 300 square miles of farmland to the state for $1.34 billion. The state had planned to use some of the acreage for restoration and get rid of the sugar cane on the remaining acreage that has been blamed for polluting the ecosystem.
State officials were hoping to secure financing for the land deal by this summer but the nation's tight credit markets have made it difficult to find investors in the project. Even before they can secure financing, they must receive approval from the courts to issue bonds for the project which has already drawn several challengers.
While a 60-day period during which U.S. Sugar was required to take bids on the land ended Monday, the company can continue to entertain unsolicited bids until the state can issue bonds.
"We have several interested parties," said U.S. Sugar Vice President Robert Coker.
One such party is reported to be the Tennessee-based farming company The Lawrence Group.
"It's a very active time right now," Coker said. "If an offer is better than the state's, then the state will have an opportunity to come back in and match that offer. If they choose not to match that offer, then we can pay a breakup fee and walk away."
Under terms of the contract signed with the state last year, U.S. Sugar would pay the state $40 million to end their deal.
The Lawrence Group has said it would work with the state to sell some land needed for restoration, while keeping jobs and farmland in production.
(© 2010 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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