Alico, Inc. today announces that the State of Florida has purchased, under the Florida Forever program, approximately 10,702 acres of the Alico Ranch for $28.5 million, pursuant to an option agreement entered into between the State of Florida and Alico.
John Kiernan, Alico’s President and Chief Executive Officer, commented, “We are pleased the State of Florida has purchased this acreage on the west side of the Alico Ranch. This is the second sales transaction we have completed with the State of Florida, aggregating over 16,000 acres. As discussed in our Alico 2.0 Modernization Plan, we continue to evaluate and sell off ranch assets and generate cashflow to be used in a manner that will be targeted to allow for a greater return for our investors. In connection with addressing the proceeds from this latest sale, we are evaluating several options including strategic acquisitions, increasing our common share dividend, and/or selected land acquisitions where we potentially can take advantage of a like-kind exchange structure, which would allow us to defer a portion of the taxes related to the gain from this land sale to the State.”
Mr. Kiernan continued, “Because the acres involved in the purchase would have been critical to our planned Alico dispersed water storage project, known as the Alico Northern Everglades Payment for Environmental Services, we have decided to no longer pursue permit approval activities for that particular project. However, Alico remains dedicated to preserving Florida's crucial water resources and intends to explore other ways to continue to partner with the State of Florida.”
For more information:
Richard Rallo
Alico Inc
Senior Vice President and Chief Financial Officer
Tel: (239) 226-2000
Email: rrallo@alicoinc.com