Everglades done taking its lumps — U.S. Sugar selling to Florida

by Barbara Murray, July 17th, 2008, 7:00 am

Delighted dolphins, giddy gators, happy herons. What is all this wildlife wonderment about? It seems these and the many other species of fauna and flora that inhabit the Florida Everglades may have been given a pass from extinction. And for once, mankind is not the villain in this tale. In fact, one man, Florida governor Charlie Crist, might be its hero.

Seems the guv had a meeting sometime back with the nabobs at U.S. Sugar Corporation, the largest cane-sugar producer in the country. They, like all good Big Sugar companies are wont to do, went to call on Gov. Crist to complain about Florida enacting some laws that forbade the company from pumping its polluted water back into the Everglades.

Expecting due deference from the guv and a “pat on the back” solution allowing the sugar maker to skirt the new laws — they, again, like all good Big Sugar companies, being large contributors to political campaigns, mostly to pro-business Republican candidates — U.S. Sugar got instead an unexpected, nay, shocking offer. The governor suggested that Florida buy U.S. Sugar. No need to find a way around ever-increasing environmental regulations, just go out of business — and with a pretty penny in its pocket too — $1.75 billion.

It’s a nice bit of money for U.S. Sugar, which has suffered bottom-line woes due to increasing sugar imports from countries such as Brazil and Thailand, which have lower labor costs. (Not to mention having to do continual battle with both the state and the feds over water and land pollution and the rising costs of the clean-ups it is forced to make by these authorities.) The company is also involved in a nasty lawsuit brought by former employees, charging that the company bilked them out of their retirement funds. The deal offered by Crist amounted to some $350 a share, far above other offers it has received over the years. So U.S. Sugar, which has operated on its land since 1931, said, yes, it would sell itself to the state.

And what does Florida get for its pot of gold? It gets, among other assets, 187,000 acres (or about 300 square miles) of land north of Everglades National Park, which the state would turn over to its South Florida Water Management District for use as part of a plan to help restore the Everglades’ pre-development ecosystem. (Cue the dancing endangered animals.)

The land would connect (or reconnect, actually) Florida’s Lake Okeechobee with the so-called River of Grass, the swampy natural waterway that carries overflow from the lake to its natural runoff into the ocean. The waterway, which is made up of marshes and forests rich in reptile and bird life, has been unable to drain itself adequately for years due to development, including sugar farming, and that has led to the stagnation of Lake Okeechobee’s waters.

So the Everglades’ ghost orchids and royal palms can perhaps sway in joy; their death knell has been silenced. Maybe. You see, despite the efforts of the Caped Crusader of the Everglades, Gov. Crist, and the, ahem, pragmatic decision by the elders of U.S. Sugar to sell, the deal might not go through. It seems that U.S. Sugar is owned by its 1,700 employees through an employee-ownership plan. And while the buyout deal allows U.S. Sugar to operate for another six years in order to fulfill its long-term commitments, after that, its employees are facing certain unemployment. Saying it will be regulated out of business anyway, the company has offered its wage earners one year’s pay as severance, with salaried workers being offered two years. The state has offered retraining. The deal is supposed to be finalized by November.

Put yourself in the place of a third-generation sugar worker, living in the small Florida town of Clewiston, being forced to weigh the relative merits of the survival of, oh, say, a rare panther and putting food on his or her family’s table. It’s a tough call.