'Unique' DOT land deal gets approval (Jeb Bush and St. Joe Company)

[seafan]

'Unique' DOT land deal gets approval

BY GARY FINEOUT
September 27, 2006

State lawmakers approved the purchase of land from a private developer -- land equivalent to 180 miles of asphalt from the state's largest private landowner.

TALLAHASSEE - State lawmakers unanimously approved a deal Tuesday to spend $46 million to purchase 4,000 acres for current and future roads from St. Joe Company, the politically connected firm that is the largest private landowner in the state.
State transportation officials, who have labeled the deal ''unique,'' have defended the deal as a way to acquire property at a discount and avoid the legal battles that usually occur when the state wants land for roads.

''If we have the ability to purchase the right of way now, literally saving the taxpayers hundreds of millions of dollars, I think it's a great program,'' said state Sen. Mike Fasano, a New Port Richey Republican and member of the 14-member panel that voted Tuesday.

Environmental groups derided the decision as ''corporate welfare'' for St. Joe, which enhances the company's vast holdings.
Elliott Negin, a spokesman for the National Resources Defense Council, criticized Tuesday's vote, saying it was wrong to plan for roads without knowing what kind of development is planned.

snip

Over the last few months, St. Joe officials negotiated the deal to have the state purchase 4,000 acres of land spread over 10 counties in Northwest Florida. The land is equivalent to 180 miles of roads, but the land is for both existing road-widening projects and for roads that may not be built for at least 10 to 15 years. DOT is only buying the rights to the land, and may in fact, swap it for different parcels if future studies show the land is not needed.

The state legislators had to approve the transaction because DOT needed to shift the $46 million from another land-buying account.

Rep. Ron Greenstein, a Coconut Creek Democrat and commission member, chided DOT bosses for not letting lawmakers know about the deal until shortly before Tuesday's meeting. He also asked why the proposal needed to pass before November, when a new governor will be chosen. The administration of Gov. Jeb Bush has long-running ties to St. Joe.

snip

[seafan]

1. "... the company has long ties to Bush."

From the St. Pete Times

The deal, about six years in the making, is raising eyebrows because the land hasn't been appraised yet and the company has long ties to Bush.

snip

The deal does come at a convenient time for St. Joe, Florida's largest private landowner, which has been dealing with the souring real estate market. The Jacksonville company's earnings and stock prices have not been rosy, and the company laid off about 150 employees, it reported in August.

snip

On Friday, St. Joe chief strategy officer Chris Corr wrote a letter to the DOT saying the company is committed to investing at least $50-million into transportation infrastructure in areas close to St. Joe's property. This would also benefit the northwest Florida public, he wrote.
Both the state and the company have said that the reason to buy now is to lock in cheaper prices for the state, assuming that real estate prices will increase as development continues.

State auditors have criticized the state for paying too much for land in the past.

[The Backlash Cometh]

2. Watch that land carefully. I'll tell you what they'll do.

As realtors get into positions of public power, they will GIVE IT AWAY to their connections.

[femmedem]

3. Hahaha! I thought this was a Jeb/Lieberman scandal.

Edit to add: oops. I meant to reply to OP. Sorry. But hi anyway.

[seafan]

4. Done while the Legislature is not in session. Lucky for Jeb & St Joe!

From the Sarasota Herald-Tribune

The land is being sold off by The St. Joe Co., shedding some of its vast Panhandle holdings in the wake of a recent announcement that it is getting out of the homebuilding business.

snip

St. Joe, the largest private landholder in the state, bought much of the undeveloped forested area early in the last century when its primary business was making paper. In the mid-1990s, it shifted its focus and has developed more than 40,000 new homes.
Officials at St. Joe, which has 850,000 acres in the Panhandle, including miles of waterfront land, recently said that an anticipated slowdown in the residential real estate market is forcing it to shift its focus. The company cut its earnings forecast by half in August, and said it could be up to two years before the market comes back.

On Tuesday, the Legislative Budget Commission, which makes midyear adjustments to the state budget when the full Legislature isn't in session signed off a state Department of Transportation request to spend $46 million to buy 4,000 acres in the Panhandle from St. Joe for future road building.

The deal is unusual in that plans for some of the roads that would be built on the acquired land haven't been finalized, meaning the state is purchasing land for roads it thinks it may need in the future as the area develops.

snip

The deal looks more like a subsidy for St. Joe and the new roads will attract development to an environmentally sensitive area, Panhandle Citizens Coalition chairman John Hedrick said in an interview.

"It assumes all those roads are going to be necessary," Hedrick said. "That's a big assumption."

The excuses given for this land deal are laughable.

Everything from 'roads that "might" be needed' on land that has never been studied or appraised for that purpose, ...to 'avoiding the future costs of eminent domain' lawsuits, ...'to spending big money now, so Florida's people we won't have to spend (less) money later.'

It's all a huge heist, coordinated in the waning days of Jeb's power.