Jun 6, 2000 - 06:45 PM
 The peculiar circumstances involved in Ichetucknee cement plant deal: From The Tampa Tribune

                The peculiar circumstances involved in Ichetucknee cement plant deal

 

 
 
 
 
 

                The curious case of the cement plant and the Ichetucknee River is becoming ever
                more curious - and questionable.

                The latest revelation is that the state has agreed to pay as much as $10 million more
                for a lime-rock mine near the river than the owner's own consultant said it was worth.

                As Tribune staff writer Michelle Pellemans reported, Gov. Jeb Bush and the Florida
                Cabinet voted in January to buy the mine from Anderson Columbia Inc., parent
                company of the one seeking to build the plant.

                The acquisition seemed appropriate since state Department of Environmental
                Protection officials said the mine posed a bigger threat to the Ichetucknee than the
                cement operation.

                THE AGREEMENT for the state to buy the mine came during negotiations with
                Anderson Columbia, which resulted in the Bush administration reversing its opposition
                to the plant, although officials said the acquisition wouldn't equate to the state's
                approval of the cement project.

                The Cabinet voted to spend as much as $23 million to $27 million to buy the 320-acre
                tract for conservation purposes. Attorney General Bob Butterworth, Comptroller Bob
                Milligan and Insurance Commissioner Bill Nelson opposed the deal.

                Cabinet members were not told that an analysis prepared for Anderson Columbia by
                KPMG LLP put the investment value of the land and mineral reserves at between
                $14.1 million and $16.8 million.

                In fact, in contrast to standard procedures, the purchase was approved without
                independent appraisals.

                Independent appraisals of the mine site are being conducted now. If the appraisals
                come in below $23 million, the state can make new offers. Or it can attempt to
                acquire the land through condemnation proceedings. Those appraisals should be very
                interesting indeed. In any event, by agreeing to the higher price, the state may have
                undermined its negotiating position.

                What is particularly odd is that, as Pellemans wrote, the ``state's $23 million to $27
                million purchase offer approximates the $26 million to $31 million KPMG LLP
                estimated would be the deal's total worth to Anderson Columbia once the company
                factored in $16.8 million in lost business income and the cost of moving raw materials
                and mining equipment to a new location.''

                Further, spokesmen for both Anderson Columbia and the state Department of
                Environmental Protection initially said the $23 million to $27 million price reflected
                payment not just for the land, but for lost business and other Anderson Columbia
                expenses.

                Later, however, they changed their story. The mine would be bought under
                Preservation 2000, the state program for acquiring conservation land.

                Its funds cannot be used to pay for loss of business or such expenses. Yet it would
                appear taxpayers might be paying the company not just for its land, but for moving its
                mining operations. And where would that mine operation move? To the cement plant
                site, where there will also be a mine?

                Some background:

                Though the Ichetucknee River is considered one of the most beautiful and pristine
                rivers in Florida and is the site of a popular state park, the Suwannee County
                Commission approved the cement plant proposed by Suwannee American Cement
                Co., which is affiliated with Anderson Columbia.

                Anderson Columbia is very influential. Founder Joe Anderson Jr., his company and his
                family donated more than $173,000 to the state Republican Party. Two lawmakers
                have been convicted of income tax evasion for not reporting consulting payments by
                the company.

                Citizens were outraged by the siting of the plant near the river and rallied statewide
                opposition. After canoeing the river, Gov. Jeb Bush and DEP Secretary David Struhs
                pledged to fight establishment of the plant.

                Soon afterward, Suwannee American hired Stephen MacNamara as an attorney.
                MacNamara was chief of staff for House Speaker John Thrasher, who is close to
                Bush. MacNamara says he was not employed by Thrasher during the time he was
                paid by Suwannee American.

                MacNamara represented the company in at least some secret negotiations with DEP,
                which soon reversed its position and agreed to approve the plant. The company made
                such concessions as agreeing to sell the mine that Struhs said posed a much greater
                threat to the Ichetucknee than the cement operation.

                Pellemans reported that MacNamara contacted three Cabinet aides on behalf of
                Suwannee American. She also found that MacNamara met with DEP officials in the
                speaker's office. Remember, the speaker has great control over state agencies'
                budgets.

                At the same time, an administrative hearing judge and the DEP rejected the legal
                challenge to the plant filed by residents, holding they would not be substantially
                affected by the plant - even though one neighbor lives directly across from the
                property. Dozens of trucks will drive to and from the plant each day. Each year it will
                burn 100,000 tons of coal, petroleum, coke and used tires. In addition, the land will be
                mined.

                Right now it appears only Attorney General Bob Butterworth's challenge of the original
                land-use decision stands in the way of the plant.

                So citizens understandably believe they - and the Ichetucknee - are being railroaded
                by a company with a lot of political muscle. Opponents complain the process will not
                even allow them to make their case in court.

                The company says that it is being unfairly trashed, that the plant will be
                environmentally sound and the tire burning will be completely contained. It also says
                that the operation would pose no threat to the river and that court findings affirm its
                position.

                PERHAPS THE PLAN is as environmentally benign as the developers assert.
                Perhaps no untoward political influence has been exercised during the cement plant's
                march through the approval process.

                But that is not the way it appears. It appears the deck has been stacked in favor of a
                powerful corporate force - at the expense of common citizens and a valuable public
                resource.

                Needed is an independent review of the strange particulars of this case. Only the
                governor can order such scrutiny. Gov. Bush, to protect the administration's credibility
                and the public's resources, should step in and order an investigation of why this
                cement plant seems preternaturally charmed.