U.S. Sugar Corp. announced Monday evening that its board approved a contract to sell 180,000 acres to the South Florida Water Management District.
The $1.34 billion sale contract includes the right to lease the property for seven years.
The governing board of the South Florida Water Management District is set to vote on the contract Dec. 16. The goal of the land purchase is to create a natural flow-way of water between Lake Okeechobee and the southern Everglades.
U.S. Sugar spokesman Robert Coker called his board's approval a milestone in a "historic" transaction.
Coker said in a press release: "We are hopeful that the governing board of the South Florida Water Management District will take up and approve the contract early next week, bringing Governor Crist’s bold plans for Everglades restoration to fruition.”
The company said BMO Capital Markets will now have a period of two months to shop the company and give other interested purchasers a chance to make a better offer, including the Tennessee-based Lawrence Group, which has indicated interest in the sugar giant.
Also approved Monday was a comprehensive severance package for both hourly and salaried employees. The company said the package provides one year’s salary for all hourly employees and two years’ salary for all salaried employees – to be paid if the company shuts down at the end of seven crops.
“Hopefully this safety net will not be needed," Coker said in the release.
U.S. Sugar has said it plans to continue running its processing plant and to build an ethanol plant.
© 2008 American City Business Journals, Inc.
