District Weighs Sugar Deal

The South Florida Water Management District’s governing board next Tuesday will consider whether to approve the purchase of U.S. Sugar Corp.’s land for $1.34 billion.

The purchase of 180,000 acres of sugar cane fields and citrus groves is expected to be financed with certificates of participation. The land will enable the water district to conduct major restoration projects in South Florida’s famed Everglades.

U.S. Sugar’s board of directors approved the sale on Monday.

A complaint to validate $2.2 billion of COPs has been filed in Palm Beach County Circuit Court by the district’s bond counsel, Bryant Miller Olive PA. Judge Donald Hafele has scheduled a validation hearing for tomorrow.

Although the purchase price is $1.34 billion, the $2.2 billion authorization will provide the district with flexibility in case it needs to finance other projects, according to chief financial officer Paul Dumars.

The district covers 16 counties in South Florida, where property taxes will secure the COPs. It manages and protects water resources in the region, and is a partner in the state-federal comprehensive environmental restoration program for the Everglades.

Public Financial Management Inc. is the district’s financial adviser.

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