The Governor and Cabinet - Florida Department of State

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AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

JANUARY 25, 2000

Substitute Page

Item 1 Minutes

Submittal of the Minutes of the November 9, 1999, and November 23, 1999 Cabinet Meetings.

RECOMMEND ACCEPTANCE

Substitute Item 2 National Marine Manufacturers Association Recommended Consolidated Intent/Miami International Boat Show

REQUEST: Consideration of an application for a modification of a five-year Class IV special event, sovereignty submerged lands lease to increase the preempted area from 87,478 square feet to 212,376 square feet, more or less, for a temporary annual boat show.

COUNTY: Miami-Dade

Lease No. 130019833

Application No. 13-0146662-002

APPLICANT: National Marine Manufacturers Association

Miami International Boat Show

LOCATION: Section 31, Township 53 South, Range 42 East, in Biscayne Bay, Class III waters, year round Slow Speed Manatee Area, within the local jurisdiction of the City of Miami

Aquatic Preserve: Biscayne Bay - Card Sound Aquatic Preserve, Resource Protection Area 2

Outstanding Florida Waters: Yes

CONSIDERATION: $2,346.69, representing the prorated base fee computed at the base rate of $0.1156 per square foot and including the initial 25 percent surcharge payment for the additional area (124,898 square feet) calculated on the prorated base fee. A certification shall be submitted to the Department of Environmental Protection (DEP) within 30 days from the closing date of the show itemizing the gross rental income generated over sovereignty submerged lands, including the actual income collected from the rental or use of sovereignty submerged lands and any ancillary user charges. If five percent of this amount is greater than the initial payment, the lessee shall submit the difference. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable.

STAFF REMARKS: The Board of Trustees authorized a rule amendment on September 14, 1995, to "link" the two processes of regulatory and proprietary reviews and authorizations. The rule became effective October 12, 1995. As a result of this linkage, the recommended DEP regulatory permit decision and the recommendation to the Board of Trustees on the proprietary authorization are contained in one document, the "Consolidated Notice of Intent to Issue," which is attached. The attached consolidated intent contains a recommendation for issuance of a permit under Part IV of chapter 373, F.S., and a recommendation for granting authorization to use sovereignty submerged lands under chapters 253 and 258, F.S., for the activity described therein. This recommendation is provided to the Board of Trustees pursuant to section 373.427(2), F.S. A description of the requested activity is provided in Section I, "Description of the Proposed Activity." The specific basis for recommending approval of the authorization to use sovereignty submerged lands is contained in Section III, "Background/Basis for Issuance."

Approval by the Board of Trustees is requested only for those aspects of the activity which require authorization to use sovereignty submerged lands. If the Board of Trustees approves the request to use sovereignty submerged lands and the activity also qualifies for an environmental resource permit, the Consolidated Notice of Intent will be issued and will contain general and specific conditions. In the event the Board of Trustees denies the use of sovereignty submerged lands, whether or not the activity otherwise qualifies for an environmental resource permit, the DEP will issue a "Consolidated Notice of Denial" for both the environmental resource permit and the authorization to use sovereignty submerged lands.

The lessee is proposing to construct a temporary commercial docking facility to be used in conjunction with the National Marine Manufacturers Association’s Miami International Boat Show. The temporary construction takes place immediately waterward and north of an area under lease to the Miramar Marina Corporation (d/b/a Biscayne Bay Yachting Center), Board of Trustees’ Lease No. 130009916, which is 354,294 square feet. A portion of this special event boat show will take place within the entire Miramar facilities. Miramar has allowed this boat show to utilize its area in the past. Miramar is required to report the gross rental income collected from the special event to the DEP’s Division of State Lands as part of the annual certification required for its lease, pursuant to section 18-21.011(1)(d)3, F.A.C. The proposed temporary and existing docks will be used as a centralized exhibit center for public display of vessels by various manufacturers.

On November 23, 1993, the Board of Trustees approved a five-year, 45-day, sovereignty submerged lands lease for 45,563 square feet. On January 26, 1999, the Board of Trustees approved a five-year Class IV Special Event lease for an expansion to 87,478 square feet. The lessee again proposes to expand an additional 124,898 square feet, for a total preempted area of 212,376 square feet, to accommodate the mooring of 47 additional vessels by installing 68 additional pilings and 57 additional 10-foot-wide by 20-foot-long floating docks, and 45 dock attachment pilings. The lessee again proposes to construct the facility during the first week of the proposed lease term, to run the exhibit for seven days, and to dismantle the facility during the following week. The exhibitors will lease mooring space from the lessee. There will be approximately 272 total vessels displayed at the boat show with approximately 102 vessels to be moored in this particular lease area and the remaining 170 vessels moored within the Miramar facility. Test drives will take place only during daylight hours on show dates, with manatee information packages distributed to vessel operators.

The proposed project is located in the Biscayne Bay - Card Sound Aquatic Preserve. In accordance with section 258.397, F.S., and section 18-18.006(3)(b), F.A.C., the proposed project should be approved only if the Board of Trustees determines that the lessee has demonstrated extreme hardship and that the project is in the public interest. Staff finds that this project meets the extreme hardship test for the following reasons: (1) the Miramar facility is the only existing commercial docking facility in proximity to the Intracoastal Waterway and the Atlantic Ocean with the capacity to accommodate the size and number of exhibit vessels for the show; (2) it is not feasible to show the boats out of the water since they range in size up to 80 feet in length; and (3) Miami-Dade County no longer allows mooring along the bulkhead within the existing marina (Biscayne Bay Yachting Center), and therefore, the show must expand outside of the marina to accommodate the boats that have already leased spaces. The maximum time that the boats are in the water is going to be 12 days and offers little potential for environmental harm.

Staff is of the opinion that the proposed project is in the public interest for the following reasons: (1) the lessee will provide displays to educate the general public about environmental issues, such as the importance of seagrasses, the use of marked channels to avoid harming shallow submerged land resources, and the importance of safe boating; (2) the lessee’s show will have a positive economic impact on the city; (3) the lessee will invite environmental agencies to operate informational booths during the show to facilitate public education; (4) the lessee conducts various public service seminars on topics such as boating safety and boat licensing during the show; (5) the lessee provides local schools exhibit space at the show for fund-raising activities for school projects; and (6) the lessee will provide the DEP with a half-page advertisement in the boat show directory. Item (1) has been included as a specific condition in the environmental resource permit.

There is currently an outstanding enforcement case regarding the 1999 show. A compliance inspection was conducted on February 11, 1999, and there was a violation of Specific Condition Number 9 of the Wetland Resource Permit regarding exceedance of draft restrictions. This matter has been resolved through a DEP consent order and a penalty in the amount of $3,200 has been paid.

According to the Bureau of Protected Species Management of the Florida Fish and Wildlife Conservation Commission, the proposed project would not significantly affect the endangered manatee so long as the lessee (1) complies with the DEP’s standard manatee construction conditions; (2) installs and maintains informational displays; (3) distributes and maintains copies of the "Guide for Boating, Diving and Snorkeling" and the Dade County "Manatee Protection Zone Map," at the Miramar Marina show office, to individual vessel operators and exhibitors when they first arrive for the show; (4) request that exhibitors log all sea trials; (5) requests that the off-duty Florida Marine Patrol officer encourages exhibit vessel operators to observe the established speed restrictions and patrols the demonstration ride areas and forwards any warnings and citations to the Bureau of Protected Species Management within 30 days after the event; and (6) agrees that if boat traffic resulting from the event results in an unsafe situation for manatees, problems will be addressed by the lessee and the DEP. These items have been included as specific conditions in the environmental resource permit.

Noticing of property owners within a 500-foot radius of the project is done and no objections were received. The lessee also was required to publish notice of receipt of application by the DEP. The notice of application has been published and no objections were received.

The structures do extend into the 25-foot setback and cross over riparian lines; therefore, notices went out to the Miami Women’s Club (riparian owner to the north), Miramar Marina Corporation, City of Miami, and Dade County Public Works Department.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S. The Department of Community Affairs (DCA) determined that the plan is in compliance. A local permit has been received for the proposed action which has therefore been determined to be consistent with the adopted plan.

(See Attachment 2, Pages 1-26)

RECOMMEND APPROVAL SUBJECT TO PAYMENT OF $2,346.69

Item 3 City of Punta Gorda Lease Modification

DEFERRED FROM THE DECEMBER 14, 1999 AGENDA

DEFERRED FROM THE NOVEMBER 9, 1999 AGENDA

DEFERRED FROM THE OCTOBER 12, 1999 AGENDA

REQUEST: Consideration of an application for: (1) a modification of an existing five-year sovereignty submerged lands lease to contain 318,232 square feet, more or less, for the proposed expansion of an existing commercial docking facility in conjunction with the proposed upland mixed-use development; (2) conceptual authorization for 40 future boat slips within the modified lease area; (3) after-the-fact authorization for an existing unauthorized fishing pier extension; (4) authorization for the severance of 32,000 cubic yards of sovereign material; and (5) a waiver of the severance fee.

COUNTY: Charlotte

Lease No. 080000095

APPLICANT: City of Punta Gorda

LOCATION: Section 06, Township 41 South, Range 23 East, adjacent to the Peace River and immediately upstream of Charlotte Harbor, Class III waters, within the local jurisdiction of the City of Punta Gorda

Aquatic Preserve: No

Manatee Area idle/slow speed/caution zone: Yes

Outstanding Florida Waters: No

CONSIDERATION: $12,324.73, representing (1) $7,305.17 as the initial lease fee for the 56,821-square-foot boat slip area computed at the base rate of $0.1156 per square foot and including the 25 percent surcharge for the additional lease area subject to lease fees; (2) $139.56 as lease fees in arrears, including interest, for the unauthorized use of sovereignty submerged lands from May 1, 1995, through September 9, 1997; and (3) $4,880 as administrative fines for the unauthorized use of sovereignty submerged lands. The lease fees in arrears and administrative fines have already been collected. The project qualifies for waiver of the severance fee pursuant to section 18-21.011(3)(c), F.A.C. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable. The lease fee may be adjusted based on six percent of the annual rental value pursuant to section 18-21.011, F.A.C. If the lessee’s request and staff recommendation regarding phasing of the project is approved, the initial lease fee shall be adjusted based upon receipt of an acceptable survey and legal description showing the area subject to lease fees.

STAFF REMARKS: The lessee is proposing to expand an existing 20-slip commercial docking facility by constructing 20 additional boat slips and requesting conceptual approval for 40 additional boat slips to be constructed at a future date, thereby creating an 80-slip facility. The original sovereignty submerged lands lease was approved by the Board of Trustees on September 23, 1986, for 20 boat slips and the preemption of 272,320 square feet. The lease was renewed by the Department of Natural Resources in 1991 and by the Department of Environmental Protection (DEP) in 1996, pursuant to a delegation of authority.

On June 15, 1995, the Board of Trustees granted conceptual approval to add 80 boat slips and increase the preempted area to 274,320 square feet. The conceptual approval anticipated that the existing 20 slips and proposed 80 additional slips would be open to the general public on a first-come, first-served rental basis. This is evidenced by the 30 percent discount that was to be applied to the annual lease fee pursuant to section 18-21.011(1)(b)2, F.A.C., and by a special lease condition requiring all slips at the marina to be maintained as open to the public on a first-come, first-served basis. The lessee was required to return to the Board of Trustees for final approval. The conceptual approval was granted because the application was incomplete, as it lacked an approved Development of Regional Impact (DRI) and an acceptable survey and legal description. The lessee has since provided a copy of a March 18, 1997 letter from the Department of Community Affairs (DCA) stating it would not appeal the Development Order for the Punta Gorda Harbor Development of Regional Impact (no. 97-013). The lessee has also provided a survey and legal description.

The existing lease preempts 272,320 square feet of sovereignty submerged lands. It includes a 20-slip commercial docking facility preempting 31,331 square feet, a 400-foot-long public fishing pier operated by the lessee at no charge to the public and preempting 4,800 square feet, and a 236,189-square-foot open water area adjacent to the existing docking facility. Pursuant to the 1986 Board of Trustees’ action, lease fees are currently assessed against only 31,331 square feet of the lease area where there are existing boat slips being rented by the lessee. The

remaining 240,989 square feet is not subject to lease fees. This open water area was included in the lease in 1986 to give the lessee authority to prevent a growing and dangerous mid-water mooring problem within the marina basin at that time.

In addition to the existing structures, the overall project would include the following: two 6-foot-wide by 250-foot-long access walkways extending from an existing "T" dock, with a total of thirty 4-foot-wide by 30-foot-long finger piers; an existing unauthorized 12-foot-wide by 121-foot-long extension to the fishing pier, and a proposed 12-foot-wide by 40-foot-long terminal platform with benches, lights and a new fish cleaning station; and a 100-foot-wide by 500-foot-long navigational access channel. In the initial phase of this two-phase project, additional structures would include a 6-foot-wide by 80-foot-long extension to the existing "T" dock, connecting that structure to a 6-foot-wide by 175-foot-long terminal platform with eleven 4-foot-wide by 30-foot-long finger piers.

The riparian upland property consists of a 38-acre public park (Laishley Park) that is being redeveloped by the lessee into a multiple-use redevelopment project known as Punta Gorda Harbor. Pursuant to Part III of chapter 163, F.S. (the Community Redevelopment Act of 1969), the lessee has established a Community Redevelopment Agency (CRA) to manage the redevelopment project. Current development plans underway include the construction of 60 residential condominium units, 80,000 square feet of retail space, 70,000 square feet of office space, a 6.5-acre park, a 1.1-acre public parking area, an 1,800-foot-long harbor walk and a 10-acre county Justice Center. After entering into an Interlocal Agreement with the lessee, the CRA entered into an Agreement for Development and Disposition of Property with a developer, Waltemath Interests, Inc. ("Development Agreement"). The Development Agreement was subsequently modified on July 16, 1997, after public hearings and citizen input. The Development Agreement provides that the lessee will retain ownership of the entire shoreline within the Punta Gorda Harbor project. The Development Agreement also generally authorizes the developer, his successors or assigns, a right of first refusal to acquire certain upland parcels within the redevelopment project by January 1, 2001, and develop same by a time certain. As such, if the developer does not acquire a given upland parcel by January 1, 2001, the developer has no further rights to the parcel.

To date two parcels have been acquired – one for the development of 60 condominium units (Parcel A) and the second for office development (Parcel D1). Pursuant to the Development Agreement, the developer of the condominium would construct a 30-slip docking facility in the marina basin. In a submittal dated October 28, 1999, the lessee reduced the number of proposed boat slips to 20 with the remaining 40 slips to be constructed at a later date. The proposed slips are shown on the survey as the 20 slips closest to the existing 20 slips. The Development Agreement does not obligate the lessee or the CRA to construct these slips. Instead, the lessee and the CRA are obtaining regulatory permits and the modified sovereignty submerged lands lease so that the developer may construct the slips and upland improvements.

The Development Agreement [section 7.01(c)(3)(vi)] also provides that if the developer constructs the 20 slips, those boat slips shall be exclusively available to purchasers of the non-riparian condominium units at market lease rates and terms. In a subsequent meeting with DEP staff, the lessee agreed to reduce the number of boat slips to be exclusively available to purchasers of the non-riparian condominium units from 20 to 18. The remaining two proposed boat slips would be open the general public on a first-come, first-served rental basis similar to the existing 20 boat slips. The condominium unit price does not change because of the availability of a wetslip. The leases for those slips are not assignable by the condominium unit purchasers. Therefore, after the initial condominium purchaser rents a slip, if his lease for the slip is terminated or he thereafter wishes to sell his condominium unit and no longer rent the slip, he may not assign any interest in the slip to a subsequent condominium purchaser or any other individual. Instead, the slip would become available to the next person requesting same. Upon the sale of the last non-riparian condominium unit, any of the 18 boat slips not leased to a unit purchaser may be leased to the general public. Condominium owners in Parcel A shall thereafter have no greater right to rent the slips than the general public. The Development Agreement also specifically allows the rental of the 18 slips to the general public on a month-to-month basis during the condominium marketing period, as long as the 18 slips are available to the condominium purchasers as needed. There is no time limit on the condominium marketing period. However, the Declaration of Condominium for the Harborwalk Condominium requires the developer to complete construction of the condominium units no later than seven years from the date of recording of the condominium documents. The Development Agreement also specifically states that after construction, the 18 slips are to be turned over to the CRA. The CRA will then own the slips and receive the rental payments from the slips. The current annual slip rental rate is $1,000. The City Clerk’s office will maintain a waiting list of those people interested in obtaining a boat slip and if there is not a waiting list, the slip will remain vacant until the next party leases same. A special lease condition will require individuals desiring to rent a boat slip to present themselves to the City Clerk’s office in person rather than through a third party. This condition is intended to ensure that a third party does not limit the number of slips available to the general public on a first-come, first-served basis.

Reserving 18 slips for the non-riparian condominium unit purchasers represents a departure from the Board of Trustees’ conceptual approval of a docking facility that would be open to the public on a first-come, first-served basis. However, it is not specifically prohibited by chapter 18-21, F.A.C. The 18 reserved slips could also be considered an ownership-oriented facility pursuant to section 18-21.003(36), F.A.C., and would thus be subject to the standards and criteria for such facilities in section 18-21.004(4)(a), F.A.C. The rule would limit the ownership-oriented portion of the overall 80-slip docking facility to 23 wet slips. The lessee has acknowledged this requirement, which has been addressed as a special approval condition and a special lease condition similar to those approved by the Board of Trustees on February 12, 1991, and December 12, 1995 (Island Marina, Inc.) for a similar project. Additionally, section 18-21.004(4)(a), F.A.C., for ownership-oriented facilities, requires the lessee to record a conservation easement for approximately 360 linear feet of shoreline based on the 18 reserved slips. The conservation easement will be located on city-owned property at the Punta Gorda Harbor site adjacent to the river east of the marina basin and between the river and the condominium parcel. This has been addressed as a special approval condition. Pursuant to section 18-21.011(1)(c)3.f., F.A.C., the one-time premium payment for ownership-oriented facilities is not assessed for this portion of the docking facility, because at least 50 percent of the slips at the overall marina will be open to the public on a first-come, first-served basis.

The lessee has agreed to special lease conditions that would limit the number of boat slips available to the condominium unit purchasers to a maximum of 18 after the proposed 20 additional boat slips are constructed. However, the lessee and the DEP agree that after the initial condominium marketing period, the condominium unit owners should not be treated separately from any other resident of the City of Punta Gorda or any other person who is entitled to rent a boat slip on a first-come, first-served basis. Therefore, the special lease condition limiting the ability for a condominium unit owner to rent a slip will only apply for the same duration that the condominium developer has an enhanced right to lease the slips he constructs and turns over to the CRA.

In addition to the proposed 20 slips closest to the existing 20 slips, the lessee proposes that up to an additional 40 slips would be constructed in the near future by Waltemath Interests, Inc., or a subsequent developer if Waltemath Interest, Inc., declines to construct the 40 additional slips. These 40 future boat slips would be used in conjunction with the retail development portion of the overall redevelopment project to be located on Parcel D. At this time, the CRA has not received a commitment from a developer that these slips will be constructed. Therefore, the lessee requests, and DEP recommends, conceptual approval of these boat slips from the Board of Trustees. If the Board of Trustees conceptually approves these 40 future boat slips, the modified lease will not require the lessee to pay lease fees on the approximate 38,465-square-foot area of sovereignty submerged lands at the location of these 40 future boat slips. This will avoid the lessee having to pay lease fees on an area of sovereignty submerged lands on which docks may not be constructed. The lease fee for this area would be about $4,447 at the current lease rate. Therefore, staff recommends that the Board of Trustees conceptually approve the 40 future boat slips and require the lessee to return to the Board of Trustees for a subsequent lease modification once the CRA receives a commitment from a developer for construction of these 40 future boat slips. This is addressed as a special lease condition.

The applicant is also proposing to dredge 32,000 cubic yards of sovereign material to create a consistent depth of -7 feet NGVD within the marina basin. Pursuant to section 18-21.011(3)(c), F.A.C., a waiver of the dredge fees may be granted if the materials are placed on public property and used for public purposes, or if the dredged material has no economic value. The spoil will be temporarily placed in an upland spoil site and will ultimately be relocated to upland areas of the lessee’s Nature Park or the newly established History Park. Any material not suitable for fill at these sites will be transported to a landfill owned by Charlotte County. Therefore, the applicant qualifies for the waiver of the severance fee.

Approximately 3,526 cubic yards of the permitted dredge area lies within the nearshore area landward of the proposed docking facility expansion pursuant to the modified DEP wetland resource permit. Section 18-21.004(2)(a), F.A.C., states that sovereignty lands shall be managed primarily for the maintenance of essentially natural conditions. Section 18-21.004(2)(g), F.A.C., states that severance of materials from sovereignty lands shall be approved only if the proposed dredging is the minimum amount necessary to accomplish the stated purpose and is designed to minimize the need for maintenance dredging. Since there will be no navigation in this nearshore area, this 3,526-cubic-yard portion of the proposed dredging does not need to be dredged, and dredging this area would exceed the minimum amount necessary to provide sufficient depths for vessels to be moored at the docking facility. Therefore, staff recommends that approximately 28,474 cubic yards of sovereign material be dredged waterward of this nearshore area. A special lease condition has been included to prohibit dredging in the nearshore area.

Lease fees are recommended to be assessed on 56,821 square feet of lease area preempted by the existing and proposed revenue-generating docking facility. Lease fees are not recommended to be assessed for the fishing pier because the pier is open to the public at no charge. Pursuant to Board of Trustees' action on August 9, 1988 (Patten), the form of consent for the navigation channel would typically be an easement. However, DEP is of the opinion that because the lessee has determined the project to be a public project, no fee would be assessed for the channel. Therefore, rather than creating a separate easement instrument for which no fee is obtained, DEP recommends that the channel be included in the lease area and that no fee be assessed.

The DER wetland resource permit (no. 082032119), issued on January 13, 1993, authorizes the proposed fueling and sewage pumpout facilities and prohibits liveaboards. At the lessee’s request, the permit was modified by DEP on January 26, 1998, to: (1) extend the expiration date two years to January 13, 2000; (2) reduce the number of new slips from 80 to 60, and realign the docks; (3) delete a proposed batter board breakwater; and (4) keep and repair an existing public boat ramp currently located within an area formerly deeded (in 1947) by the Board of Trustees to the Department of Transportation as right-of-way for the construction of U.S. 41 (file no. 08-0128597-001). On August 26, 1998, the permit was modified to increase the fishing pier’s terminal platform (file no. 08-0128597-002). On November 22, 1999, the permit was modified to: (1) extend the expiration date one year to January 13, 2001; (2) eliminate authorization for fueling facilities; and (3) clarify that a dockmaster would be required to be at the marina during normal working hours (8:00 a.m. to 5:00 p.m., seven days per week) after completion of construction and occupancy of the final 40 slips (file no. 08-0128597-003).

The lessee is currently not in compliance with the DEP wetland resource permit. The permit violation is because of the lessee’s failure to enter into and record a long term Binding Agreement for some of the special permit conditions. These permit conditions pertain to operation of the overall marina. On August 27, 1999, DEP made the lessee aware of this violation. The lessee executed the Binding Agreement at the October 6, 1999 meeting of the Punta Gorda City Council, and recording was to occur shortly thereafter. However, subsequent discussions between the DEP and the lessee resulted in the lessee requesting a permit modification to no longer authorize installation of fueling facilities. This modification required the Binding Agreement to be revised. The lessee executed the revised Binding Agreement at the December 15, 1999 meeting of the Punta Gorda City Council, with recording to occur shortly thereafter. In light of the lessee’s execution of and stated intent to record the revised Binding Agreement, and because the additional boat slips have not been constructed, permit compliance is being achieved without formal enforcement action. A special approval condition requires the lessee to execute and record the Binding Agreement prior to receipt of a fully executed modified lease.

The DRI application originally included a 245-unit dry storage facility. The lessee has stated to DEP that the dry storage facility is no longer contemplated because of the lessee’s intent to: (1) keep and maintain the existing public boat ramp; and (2) designate no more than 18 slips for use by the condominium unit buyers pursuant to the Development Agreement between the lessee and the developer. A special lease condition has been included to clarify that construction of a dry storage facility that will require modification of this lease and the DEP permit will require prior Board of Trustees’ consideration.

The 121-foot-long fishing pier extension was recently constructed by the lessee based on the regulatory authorization granted by the wetland resource permit (no. 082032119) issued by the Department of Environmental Regulation (DER) on January 13, 1993. That permit did not include authorization from the Board of Trustees. Therefore, pursuant to the Board of Trustees’ administrative fine policy of August 14, 1992, an administrative fine in the amount of $3,630 was assessed and collected by the DEP. Between May 1995 and September 1997, the lessee allowed a local river cruise boat operator to moor his commercial vessel adjacent to the existing "T" dock. Mooring of the cruise boat was discontinued in September 1997. The "T" dock is within the area for which lease fees are

not assessed. Since mooring of that vessel constituted a revenue generating/income related activity pursuant to section 18-21.003(44), F.A.C., the lessee should have been paying lease fees on that area during that time. Therefore, lease fees in arrears, including interest, in the amount of $139.56 were assessed and collected by DEP. That unauthorized mooring also constituted a violation of the lease. Therefore, an administrative fine in the amount of $1,250 was assessed and collected by DEP.

Regarding manatee protection, the Florida Fish and Wildlife Conservation Commission, Bureau of Protected Species Management, recommended on December 12, 1997, that the lessee (1) comply with the standard manatee protection construction conditions for all in-water construction; (2) install manatee caution signs and informational displays; and (3) install and maintain at the boat ramp and near the wet and dry slips a "You Are Here" type of sign, which includes a depiction of the slow speed zone. Items (1) and (3) were included in the DEP wetland resource permit and therefore were not included as a special lease condition. However, item (2) has been included as a special lease condition.

The proposed project was not required to be noticed pursuant to section 253.115(5)(i), F.S., because of exemptions for lease modifications. However, DEP received an objection from an anonymous group calling themselves the Citizens of Punta Gorda that was addressed to the Insurance Commissioner. The concerns raised in the objection received addressed (1) negotiations by the City Redevelopment Authority for the upland development, including impact fee waivers and bonding issues; (2) reserving slips at the marina to condominium unit purchasers and others; and (3) potential irregularities regarding construction of a public fishing pier at nearby Gilchrist Park. Staff is of the opinion that items (1) and (3) are local government issues not within the purview of the Board of Trustees; and item (2) is addressed by Board of Trustees' review of the requested lease modification and the recommended special lease conditions.

Pursuant to section 163.3194(3)(b), F.S., a development approved or undertaken by a local government shall be consistent with the comprehensive plan if the land uses, densities or intensities, capacity or size, timing, and other aspects of the development are compatible with and further the objectives, policies, land uses, and densities or intensities in the comprehensive plan and if it meets all other criteria enumerated by the local government. The proposed action is consistent with the adopted Comprehensive Plan according to a letter received from the City of Punta Gorda.

(See Attachment 3, Pages 1-11)

RECOMMEND (1) APPROVAL OF THE LEASE MODIFICATION SUBJECT TO THE SPECIAL APPROVAL CONDITIONS, SPECIAL LEASE CONDITIONS AND PAYMENT OF $12,324.73; (2) CONCEPTUAL APPROVAL OF THE 40 FUTURE BOAT SLIPS; (3) APPROVAL OF THE SEVERANCE OF 28,474 CUBIC YARDS OF SOVEREIGN MATERIAL; AND (4) APPROVAL OF THE SEVERANCE FEE WAIVER

Substitute Item 4 Marina Bay Club, Ltd., Release of Easement

REQUEST: Consideration of a release of a perpetual non-exclusive easement for pedestrian access and recreational use from the quitclaim deed of a parcel obtained as a result of artificial erosion and avulsion.

COUNTY: Miami-Dade

APPLICANT: Marina Bay Club, Ltd., a Florida limited partnership

LOCATION: Section 11, Township 52 South, Range 42 East

STAFF REMARKS: On May 11, 1999, the Board of Trustees approved the issuance of a quitclaim deed to Marina Bay Club, Ltd., a Florida limited partnership. The quitclaim deed was obtained pursuant to section 18-21.019, F.A.C., for lands that were lost as a result of artificial erosion and avulsion.

The applicant is now asking that the perpetual non-exclusive easement for pedestrian access and recreational use be released from the quitclaim deed. Under the rule, the deed shall reserve a lateral public easement across the lands to be deeded if this area has historically been used by the public for access as one of the measures for meeting the public interest test. However, this particular area is composed of condominiums and has not historically been used by the public for access. The subject parcel has fences around its perimeter and is not accessed by the public. The applicant has asked that the perpetual easement be removed from the quitclaim deed and staff is recommending that the straight-line seawall being constructed upon completion of a reclamation project will provide far greater protection for the coastline and adjacent properties than the current situation, which provides a public benefit. Based on the above measures and the fact that this has not been an area historically used by the public, staff recommends the perpetual easement be removed.

A consideration of the status of the local government comprehensive plan was not made for this item. The Department of Environmental Protection has determined that the proposed action is not subject to the local government planning process.

(See Attachment 4, Pages 1-19)

RECOMMEND APPROVAL

Substitute Item 5 Butler Act Disclaimers Moratorium/Friedman Disclaimer

REQUEST: Consideration of (1) lifting the moratorium on disclaimers involving "permanent improvements" after the Supreme Court of Florida’s decision of September 9, 1999, wherein dredging was found not to be a "permanent improvement" under the Butler Act; (2) an application for a disclaimer to submerged lands beneath a dock encompassing 0.0235 acre, more or less; and (3) a delegation of authority to the Director, Division of State Lands, or her designee, to deny applications for dredged areas and to issue disclaimers for fill and wharves that are otherwise not controversial.

COUNTY: Palm Beach

APPLICANT: Robert I. Friedman, as Trustee under Land Trust Agreement dated December 19, 1996.

LOCATION: Lake Worth, adjoining Section 02, Township 44 South, Range 43 East

STAFF REMARKS: At its meeting on September 9, 1998, the Board of Trustees directed staff to hold in abeyance all pending disclaimers to "permanent improvements" on other than filled lands until such time as the Florida Supreme Court either declined jurisdiction or entered an opinion on the merits in City of West Palm Beach v. Board of Trustees of the Internal Improvement Trust Fund, 714 So. 2d 1060 (Fla. 4^th DCA 1998), which certified conflict with the opinion in State Board of Trustees of the Internal Improvement Trust Fund v. Key West Conch Harbor, Inc., 683 So. 2d 144 (Fla. 3^rd DCA 1996) relative to the question of whether dredging is a "permanent improvement" under the Butler Act. On September 9, 1999, the Supreme Court of Florida affirmed the holding of the 4^th District Court of Appeals [City of West Palm Beach v. Board of Trustees of the Internal Improvement Trust Fund, (714 So. 2d 1060)] and ruled that dredging is not a "permanent improvement" under the Butler Act. In so doing, the Supreme Court rejected a holding to the contrary in an earlier court decision by the 3^rd District Court of Appeals (Key West Conch Harbor). Although not directly at issue, the Supreme Court was also asked to declare that docks are not "permanent improvements," but the Court declined to address this question. Accordingly, staff now asks for Board of Trustees’ approval to lift the moratorium in order to act on those applications for disclaimers that have been held in abeyance. Including this item, there are currently 38 disclaimer applications pending. Staff proposes to process these and future applications by: (1) refusing to issue disclaimers for dredged areas; (2) issuing disclaimers where appropriate and delivering document(s) to the Board of Trustees for signature; and (3) placing those applications that are controversial or questionable on the Board of Trustees’ agenda for formal consideration.

Under (1) and (2) above, staff is requesting the delegated authority to deny applications for dredged areas and to prepare disclaimers for Board of Trustees' execution in response to those applications that involve fill or wharves and which are otherwise not controversial. All other applications will be presented to the Board of Trustees for formal consideration.

The applicant has requested a disclaimer to an area under a concrete dock as a "permanent improvement" pursuant to the Butler Act (Chapter 8537, Acts of 1921) and section 253.129, F.S. District Court of Appeal decisions (e.g., Jacksonville Shipyards and Industrial Plastics) have held that various wharves and docks constructed prior to the repeal of the Butler Act constitute "permanent improvements." The Florida Supreme Court has neither confirmed nor rejected these holdings, but stated in the recent City of West Palm Beach decision that permanently improved "…denotes, at the very least, significant structures which are the functional equivalent of the 'wharves…warehouses, dwellings or other buildings…'" Staff recommends that until such time as the law is clarified or changed that disclaimers be issued in such situations unless controversial or questionable factors exist, in which case, staff will present such applications to the Board of Trustees for formal consideration. An affidavit evidences that the dock existed prior to June 11, 1957, and an aerial photograph shows that the dock was in existence in 1956. This dock is still in existence and is in current use. Because this is located in Palm Beach County, the date of repeal of the Butler Act is June 11, 1957, not May 29, 1951, as in all counties except Miami-Dade and Palm Beach.

(See Attachment 5, Pages 1-30)

RECOMMEND APPROVAL

Item 6 Keystone Products, Inc./Alcazar Enterprises, Inc., Option Agreements/ Florida Keys Ecosystem CARL Project

REQUEST: Consideration of two option agreements to acquire 58.80 acres within the Florida Keys Ecosystem CARL project from Keystone Products, Inc., and Alcazar Enterprises, Inc.

COUNTY: Monroe

LOCATION: Section 27, Township 61 South, Range 39 East; and Sections 05 and 06, Township 62 South, Range 39 East

CONSIDERATION: $1,125,000

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Marr Hrabko APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (06/30/99) (02/23/99) VALUE PRICE PRICE DATE

001005 Keystone/348 42.07 $675,000 $ 675,000 $950,000 $ 675,000 150 days

001006 Alcazar/344/345 16.73 $450,000 $ 450,000 $735,000 $ 450,000 after BOT

58.80 $1,125,000 $1,125,000 approval

STAFF REMARKS: The Florida Keys Ecosystem CARL project is ranked number 3 on the CARL Priority Project List approved by the Board of Trustees on February 9, 1999, and is eligible for negotiation under the Division of State Lands’ (DSL) Land Acquisition Workplan. The project contains 7,033 acres, of which 2,442.71 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves these agreements, 4,531.49 acres or 64 percent of the project will remain to be acquired.

On March 12, 1996, the Board of Trustees exercised its authority under section 259.041(1), F.S., to waive the normal appraisal procedures and to substitute other reasonably prudent procedures. This enabled the DSL to utilize approved appraised values that were based on land use regulations in effect as of January 1, 1996, in Monroe County.

All mortgages and liens will be satisfied at the time of closing. In the event the commitment for title insurance, to be obtained prior to closing, reveals any encumbrances which may affect the value of the property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

Title insurance policies, surveys, environmental site evaluations and, if necessary, environmental site assessments will be provided by the purchaser prior to closing.

The unique pine rocklands and hardwood hammocks of the Florida Keys, forests of West Indian plants that shelter several extremely rare animals, are being lost to the rapid development of these islands. Public acquisition of the Florida Keys Ecosystem CARL project will protect all the significant unprotected hardwood hammocks left in the Keys and many rare plants and animals, including the Lower Keys marsh rabbit and the Key deer. It will also help protect the Outstanding Florida Waters of the Keys, the recreational and commercial fisheries, and the reefs around the islands, and will give residents and visitors more areas in which to enjoy the natural beauty of the Keys.

These properties will be managed by the Division of Recreation and Parks as part of the John Pennekamp Coral Reef State Park.

These acquisitions are consistent with section 187.201(10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 6, Pages 1-46)

RECOMMEND APPROVAL

Item 7 TNC Assignment of Option Agreement (Mullet)/Perdido Pitcher Plant Prairie CARL Project

REQUEST: Consideration of the acceptance of an assignment of option agreement to acquire 181 acres within the Perdido Pitcher Plant Prairie CARL project from The Nature Conservancy, Inc.

COUNTY: Escambia

LOCATION: Sections 09 and 12, Township 03 South, Range 31 West

CONSIDERATION: $432,986.13 ($420,374.88 for the acquisition; $12,611.25 for the purchase of the option agreement)

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Nolan Rogers APPROVED PURCHASE PURCHASE OPTION

NO. PARCELS ACRES (12/14/98) (12/14/98) VALUE PRICE PRICE DATE

001007 Mullet 181 $432,000 $438,000 $438,000 $507,300 $420,374.88 120 days

after BOT

approval

STAFF REMARKS: The Perdido Pitcher Plant Prairie CARL project is ranked number 5 on the CARL Priority Project List approved by the Board of Trustees on February 9, 1999, and is eligible for negotiation under the Division of State Lands’ Land Acquisition Workplan. This project contains 6,885 acres, of which 2,246.2 acres have been acquired. After the Board of Trustees approves this agreement, 4,457.8 acres or 65 percent of the project will remain to be acquired.

Pursuant to a multi-party acquisition agreement entered into between the Division of State Lands (DSL) and The Nature Conservancy, Inc. (TNC), TNC has acquired an option to purchase the parcel from Willis Mullet. After the acquisition is approved, the Board of Trustees will acquire the option from TNC for $12,611.25, which represents agreed upon compensation to TNC for overhead associated with acquiring the option. The assignment of option agreement provides that payment to TNC is contingent upon the Board of Trustees successfully acquiring the property from the owner. The assignment of option agreement further provides that in no event will the purchase price for the option and the purchase price of the property exceed the DSL approved value of the property.

All mortgages and liens will be satisfied at the time of closing. In the event the commitment for title insurance, to be obtained prior to closing, reveals any encumbrances which may affect the value or proposed management of the property, staff will so advise the Board of Trustees prior to closing.

A survey, a title insurance policy, an environmental site evaluation and, if necessary, an environmental site assessment will be provided by the purchaser prior to closing.

The pine flatwoods and swamps west of Pensacola are interrupted by wet grassy prairies dotted with carnivorous pitcher plants, some of the last remnants of a landscape unique to the northern Gulf coast. Public acquisition of the Perdido Pitcher Plant Prairie CARL project will conserve these prairies and the undeveloped land around them, helping to protect the water quality of Perdido Bay and Big Lagoon, and giving the public a wealth of opportunities to learn about and enjoy this natural land.

The property will be managed by the Division of Recreation and Parks as part of the Tarkiln Bayou State Preserve. The acquisition is consistent with section 187.201(10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 7, Pages 1-37)

RECOMMEND APPROVAL

Item 8 Three Option Agreements/Coupon Bight/Key Deer CARL Project

REQUEST: Consideration of three option agreements to acquire 40.97 acres within the Coupon Bight/Key Deer CARL project from Big Pine Associates, Inc., Impact Investments, Inc., and William E. and Cynthia M. Olson.

COUNTY: Monroe

LOCATION: Sections 26 and 27, Township 66 South, Range 29 East

CONSIDERATION: $1,443,000

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Marr Johnston APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (09/17/98) (12/08/98) VALUE PRICE PRICE DATE

001002 Big Pine/ 33.19* $510,000 $543,000 $ 543,000 ** $ 500,000 150 days

8818 after BOT

001003 Impact/ 3.90* $590,000 $550,000 $ 590,000 $348,000*** $ 531,000 approval

9651

001004 Olson/ 3.88* $485,000 $450,000 $ 485,000 ** $ 412,000

9654/9658 40.97 $1,618,000 $1,443,000

* These are gross acres as shown on page three of the technical appraisal review.

** These parcels were purchased over twenty years ago.

*** Purchased in 1991

STAFF REMARKS: The Coupon Bight/Key Deer CARL project is ranked number 2 on the CARL Mega-Multiparcel Project List approved by the Board of Trustees on February 9, 1999, and is eligible for negotiation under the Division of State Lands’ (DSL) Land Acquisition Workplan. This project contains 3,452 acres, of which 834 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves these agreements, 2,577.03 acres or 75 percent of the project will remain to be acquired.

All mortgages and liens will be satisfied at the time of closing. In the event the commitments for title insurance, to be obtained prior to closing, reveal any encumbrances which may affect the value of the properties or the proposed management of the properties, staff will so advise the Board of Trustees prior to closing.

Title insurance policies, surveys, environmental site evaluations and, if necessary, environmental site assessments will be provided by the purchaser prior to closing. The purchaser will also pay to record the deed on the Olson property. The subtropical pine forests of rapidly developing Big Pine Key and the islands around it are the home of the endangered Key deer as well as of many Caribbean plants found nowhere else in the country. Rich coral reefs and other hardbottom communities flourish in the shallow water around the islands. Public acquisition of the Coupon Bight/Key Deer CARL project will protect the remaining undeveloped land on Big Pine and No Name Keys, without which the Key deer will not survive; protect the water quality of the Coupon Bight Aquatic Preserve and the other waters surrounding the islands; and provide the public an area to appreciate the unique natural world of this part of Florida.

Parcel 9651 will be managed by the U.S. Fish and Wildlife Service as part of the Key Deer National Wildlife Refuge and parcels 8818, 9658 and 9654 will be managed by the Department of Environmental Protection’s Office of Coastal and Aquatic Managed Areas as part of the Coupon Bight State Buffer Preserve.

These acquisitions are consistent with section 187.201(10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 8, Pages 1-47)

RECOMMEND APPROVAL

Item 9 50,000, Inc., Option Agreement/Spruce Creek CARL Project

REQUEST: Consideration of an option agreement to acquire 8.97 acres within the Spruce Creek CARL project from 50,000, Inc.

COUNTY: Volusia

LOCATION: Section 38, Township 16 South, Range 33 East

CONSIDERATION: $475,000 ($385,000 Board of Trustees’ share; $90,000 Volusia County’s share)

APPRAISED BY SELLER’S

REVIEW Benson APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (09/09/98) VALUE PRICE PRICE DATE

001008 50,000, Inc. 8.97 $385,000 $385,000 $400,000* $475,000** 120 days after

BOT approval

* Purchased in 1988.

** The Board of Trustees will pay up to the approved value of $385,000 and Volusia County will pay the remaining $90,000.

STAFF REMARKS: The Spruce Creek CARL project is ranked number 5 on the CARL Bargain/Shared Project List, as the list appears in the 1999 First Interim CARL Report, approved by the Board of Trustees on May 25, 1999, and is eligible for negotiation under the Division of State Lands’ (DSL) Land Acquisition Workplan. The project contains 2,107 acres, of which 1,788 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 310.03 acres or 15 percent of the project will remain to be acquired.

Volusia County (County) has determined that this acquisition has significant historical and archaeological importance. The County has agreed to contribute $90,000, the difference between the approved value and the purchase price. Title to the property acquired will vest in the Board of Trustees.

A title insurance policy, a survey, an environmental site evaluation and, if necessary, an environmental site assessment will be provided by the purchaser prior to closing.

Natural areas along the coast of Volusia County are becoming scarce as residential developments expand from Daytona Beach and New Smyrna Beach. Public acquisition of the Spruce Creek CARL project will protect one of the largest tracts of undeveloped land left in this region, along the estuary of Spruce Creek; help to maintain the water quality of the creeks and bays here, thus protecting a fishery; conserve what may be the site of Andrew Turnbull’s 18^th-century plantation; and provide a recreational area where people can do anything from hiking and fishing to simply learning about the plants and animals of this scenic landscape.

This property will be managed by the Volusia County Parks and Recreation Services for the conservation and preservation of the natural resources of the property and to provide recreational information to the public.

This acquisition is consistent with section 187.201(10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 9, Pages 1-30)

RECOMMEND APPROVAL

Item 10 Hanson/Crawford Option Agreement/Managing Agency Designation/ Management Policy Statement Confirmation/Garcon Ecosystem CARL Project

REQUEST: Consideration of (1) an option agreement to acquire 109.8 acres within the Garcon Ecosystem CARL project from Dorothy G. Hanson and Joanne E. Crawford; (2) designation of the Department of Environmental Protection’s Office of Coastal and Aquatic Managed Areas as managing agency; and (3) confirmation of the management policy statement.

COUNTY: Santa Rosa

LOCATION: Section 02, Township 01 South, Range 28 West

CONSIDERATION: $90,000

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Fruitticher APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (08/26/99) VALUE PRICE PRICE DATE

001009 Hanson/ 109.8 $121,000 $121,000 * $90,000 150 days after

Crawford/24 BOT approval

*The property was purchased over five years ago.

STAFF REMARKS: The Garcon Ecosystem CARL project is ranked number 11 on the CARL Bargain/Shared Project List approved by the Board of Trustees on February 9, 1999, and is eligible for negotiation under the Division of State Lands’ Land Acquisition Workplan. The project contains 8,446 acres, of which 2,909 acres have been acquired by the Northwest Florida Water Management District. These are the first acres to be acquired using P2000 funds allocated to the CARL program. After the Board of Trustees approves this agreement, 5,427.2 acres or 64 percent of the project will remain to be acquired.

All mortgages and liens will be satisfied at the time of closing. The appraiser considered the lack of legal access when the property was valued. For management purposes, the property can be accessed through adjoining water management district lands. In the event the commitment for title insurance, to be obtained prior to closing, reveals any encumbrances which may affect the value of the property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

A title insurance policy, a survey, an environmental site evaluation and, if necessary, an environmental site assessment will be provided by the purchaser prior to closing.

The peninsula jutting into the north end of Pensacola Bay is covered with wet grassy prairies dotted with carnivorous pitcher plants and other rare plants - some of the best pitcher-plant prairies left in Florida. Public acquisition of the Garcon Ecosystem CARL project will protect these prairies, thereby helping their rare plant and animal inhabitants to survive, maintaining the water quality of Pensacola Bay, and allowing the public to learn about and enjoy this unique natural environment.

Pursuant to section 259.032(9)(b)2., F.S., staff recommends that the Board of Trustees designate the Department of Environmental Protection’s Office of Coastal and Aquatic Managed Areas as the managing agency for this site. It will be managed as a state buffer preserve.

Section 259.032(9)(b)2., F.S., requires that the Board of Trustees, concurrent with its approval of the initial acquisition agreement within a project, "evaluate and amend, as appropriate, the management policy statement for the project as provided by section 259.035, F.S., consistent with the purposes for which the lands are acquired." The management policy statement for this project was included in the 1999 CARL Annual Report adopted by the Board of Trustees on February 9, 1999. Staff recommends that the Board of Trustees confirm the management policy statement as written:

The primary goals of management of the Garcon Ecosystem CARL project are: to conserve and protect environmentally unique and irreplaceable lands that contain native, relatively unaltered flora and fauna representing a natural area unique to, or scarce within, a region of this state or larger geographic area; to conserve and protect significant habitat for native species or endangered and threatened species; and to conserve, protect, manage, or restore important ecosystems, landscapes, and forests, in order to enhance or protect significant surface water, coastal, recreational, timber, fish or wildlife resources which local or state regulatory programs cannot adequately protect.

This acquisition is consistent with section 187.201(10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 10, Pages 1-14)

RECOMMEND APPROVAL

Item 11 P.M.J. Corporation/Cleaves/Goulter Purchase Agreements/SFWMD/Indian River Lagoon Blueway (Queens Island, Phase II) CARL Project

DEFERRED FROM THE DECEMBER 14, 1999 AGENDA

REQUEST: Consideration of authorization to acquire an undivided 100 percent interest in 57.57 acres in the Indian River Lagoon Blueway (Queens Island, Phase II) CARL project from P.M.J. Corporation and Robert E. Cleaves, IV and Dorothy Goulter as Co-Trustees.

COUNTY: St. Lucie

LOCATION: Sections 14 and 15, Township 34 South, Range 40 East

CONSIDERATION: $720,000 (The Board of Trustees’ 50 percent share of the total purchase price of $1,440,000)

STAFF REMARKS: The Indian River Lagoon Blueway CARL project is ranked number 14 on the CARL Bargain/Shared Project List approved by the Board of Trustees on February 9, 1999, and is funded under the Division of State Lands’ Land Acquisition Workplan. The project contains 5,136 acres, of which 939.38 acres have been acquired. After the Board of Trustees approves this agreement, 4,139.05 acres or 81 percent of the project will remain to be acquired.

On April 27, 1999, the Board of Trustees authorized staff to enter into an acquisition agreement with the South Florida Water Management District (District) and St. Lucie County (County) to acquire multiple ownerships located in Queens Island, Phase II of the Indian River Lagoon Blueway CARL project in accordance with section 259.041(16), F.S., utilizing the procedures set out in section 373.139, F.S.

The District contracted to purchase both ownerships at 100 percent of the appraised value. This project’s funding involves a federal grant through the U.S. Fish and Wildlife Service (USFWS). The federal acquisition procedures obligate the District to offer the full appraised value and pay all closing costs. The Board of Trustees will contribute 50 percent, the USFWS will provide 39.9 percent, from the grant, and the County will contribute 10.1 percent of the purchase price for the contract. Pursuant to the terms of the acquisition agreement, the District shall be reimbursed 50 percent by the Board of Trustees, 39.9 percent by the USFWS and 10.1 percent by the County of all costs associated with its attempt to acquire lands within the project, including pre-acquisition and closing related costs. Title to the property will vest 100 percent in the Board of Trustees.

As provided for in the acquisition agreement, on October 14, 1999, the Governing Board of the District adopted Resolution No. 99-102 requesting the Board of Trustees’ share of the purchase price for all parcels, reimbursement of 50 percent of its pre-acquisition costs and reimbursement of 50 percent of its closing costs (recording, title insurance policy and survey costs). Pursuant to the acquisition agreement, the pre-acquisition and closing costs will be reimbursed from CARL incidental expense funds. The District’s resolution contains all of the assurances required by the acquisition agreement.

Public acquisition will help preserve and improve the aquatic natural communities of the Indian River Lagoon, one of the country’s most productive, diverse, and commercially and recreationally important estuaries. A third of the country’s manatee population lives in the Indian River, and the area is important for many migratory birds as well as for oceanic and estuarine fishes. Additionally, public acquisition will provide natural resource-based recreation in a developing area of Florida. These parcels will be managed by St. Lucie County, through a sublease from the Department of Environmental Protection, Office of Coastal and Aquatic Managed Areas, as a buffer to several area aquatic preserves.

These acquisitions are consistent with section 187.201(10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

RECOMMEND WITHDRAWAL

Item 12 Butler Properties of West Florida, Inc., Option Agreement/Eden State Gardens Project

REQUEST: Consideration of an option agreement to acquire 101.09 acres within the Eden State Gardens Division of Recreation and Parks’ Additions and Inholdings project from Butler Properties of West Florida, Inc.

COUNTY: Walton

LOCATION: Sections 26 and 35, Township 2 South, Range 19 West

CONSIDERATION: $1,839,400

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Butler Keller APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (3/05/99) (02/10/99) VALUE PRICE PRICE DATE

001001 Butler 101.09 $1,800,000 $1,900,000 $1,840,000* $1,238,000 $1,839,400 30 days after

BOT approval

*The parcel as appraised was 105.3 acres. The option agreement only applies to 101.09 acres as the seller has elected to retain approximately 4.21 acres in the northwest corner of the property. The approved value has been adjusted to allow for the 4.21 acres that the owners will be retaining.

STAFF REMARKS: The Eden State Gardens project has been identified on the Division of Recreation and Parks’ (DRP) Additions and Inholdings List. This agreement was negotiated by the Division of State Lands (DSL) on behalf of the DRP under the State Parks Additions and Inholdings Preservation 2000 program. The project contains 160 acres, of which these are the first to be acquired. After the Board of Trustees approves this agreement, 58.91 acres or 37 percent of the project will remain to be acquired.

A title insurance policy, a survey, an environmental site evaluation and, if necessary, an environmental site assessment will be provided by the purchaser prior to closing.

The sellers acquired the subject property in a series of three transactions over a six month period from July 1, 1997, to January 16, 1998. Since acquiring the property, the sellers have obtained the necessary permits to begin development of Phase I of a two-phase residential development of the property, ultimately to consist of 118 lots. After several months of negotiations and failure to reach agreement, the DSL elected to share the appraisal reports with the sellers in an effort to break the stalemate. Because of rapidly escalating property values in the South Walton County area, the sellers felt that the existing appraisals were out of date and an updated appraisal was warranted. The DSL disagreed, however, and an update was not obtained. After considering the benefits a sale would mean to the DRP and South Walton County, the sellers ultimately decided to sell if they could retain approximately four acres in the northwest corner of the property. DSL consulted with the DRP, the proposed manager of the property, who agreed with the seller’s request.

This property will be managed by the DRP as an addition to Eden State Gardens.

This acquisition is consistent with section 187.201(10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 12, Pages 1-34)

RECOMMEND APPROVAL

Substitute Item 13 Anderson Columbia, Inc./Anderson Mining Corporation Acquisition DOA/Managing Agency Designation/Management Policy Statement Confirmation/ Ichetucknee Trace Limerock Mines CARL Project

DEFERRED FROM THE DECEMBER 14, 1999 AGENDA

REQUEST: Consideration of a request within the Ichetucknee Trace Limerock Mines CARL project to (1) authorize the Director of the Division of State Lands, Department of Environmental Protection, or her designee, to extend a bona fide offer and to approve the Agreement for Sale and Purchase (Agreement) of approximately 355 acres from Anderson Columbia Co., Inc., and Anderson Mining Corporation (Seller); (2) substitute the appraisal selection process provided for in the Agreement in lieu of the process established by rule; (3) designate Columbia County as managing agency; and (4) confirm the management policy statement.

COUNTIES: Columbia (Bagdad property is in Santa Rosa County)

LOCATION: Sections 16, 20 and 21, Township 05 South, Range 16 East (Bagdad property - Sections 10 and 11, Township 01 North, Range 28 West)

CONSIDERATION: Seventy to one hundred percent of the Division of State Lands Approved Value (up to $27,000,000)

STAFF REMARKS: The Ichetucknee Trace Limerock Mines CARL project is ranked number 32 on the CARL Priority Project List approved by the Board of Trustees on February 9, 1999, and is eligible for negotiation under the Division of State Lands’ (DSL) Land Acquisition Workplan. The project contains 490 acres, of which these are the first to be acquired. Approximately 60 acres of this acquisition fall outside the current project boundary. DSL’s Office of Environmental Services (OES), in consultation with the proposed managing agency and other Land Acquisition and Management Advisory Council (LAMAC) staff, has evaluated the parcel of land proposed for acquisition and determined that the parcel meets the requirements for acquisition. After the Board of Trustees approves the proposed Agreement negotiated by staff and Seller, 195 acres or 40 percent of the project will remain to be acquired.

The Agreement was negotiated as part of a settlement of permit litigation between the Department of Environmental Protection (DEP) and Suwannee American Cement Company, Inc., an affiliate of Anderson Columbia Co., Inc. The Agreement provides for an appraisal selection process similar to the process used in settling the Golden Gate Estates homeowners’ inverse condemnation claims. Under the revised selection procedures the Seller will be allowed to participate in the appraiser selection process. To assure that neither party will unduly influence the appraisers there will be no ex parte communication with the appraisers. Staff believes that this alternate procedure is reasonable under the circumstances and protects the public’s interest.

Based on a business valuation analysis obtained by Anderson Columbia Co., Inc., the Seller believes that a market value appraisal of the property could approach $40 million. The Agreement provides that the purchase price will be established by multiplying the appraised value by seventy percent. The Agreement further provides for adjustments to the established price to a maximum and minimum purchase price. If seventy percent of the final appraised value exceeds $27,000,000, the purchase price will be capped at $27,000,000.

The Agreement also includes a floor of $23,000,000 below which the seller is under no obligation to accept the initial offer. To arrive at the floor of the initial offer a sliding scale adjustment is used based on the outcome of the appraisal process. If the appraised value is between $23,000,000 and $32,857,143, the purchase price would remain at $23,000,000. Therefore, if the final appraised value is at least $23,000,000 but less than $32,857,143, the Board of Trustees’ purchase price would be $23,000,000 and would be greater than seventy percent of the appraised value.

If the final appraised value is less than $23,000,000, DEP will offer 70 percent of the appraised value and if that offer is rejected, the DEP will seek approval from the Board of Trustees to make another bona fide offer to the Seller. If the Board of Trustees approves a second bona fide offer less than $23,000,000 and the Seller rejects that offer, under the terms of the Agreement DEP will seek approval from the Board of Trustees to condemn the property. The Seller agrees not to contest the good faith estimate of value or the public purpose and necessity of such condemnation. Furthermore, the Seller has agreed that the final condemnation award shall not exceed $23,000,000 and that the second bona fide offer shall be considered the first written offer for the purpose of determining attorney’s fees pursuant to section 73.092(1), F.S. While the Agreement provides for the making of a second bona fide offer and the ability to exercise the power of eminent domain, the Board of Trustees is under no obligation to do so.

All mortgages and liens will be satisfied at the time of closing. In the event the commitment for title insurance, to be obtained prior to closing, reveals any encumbrances that may affect the value of the property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

A title insurance policy and a survey will be provided by the purchaser prior to closing. The Seller, at its sole cost and expense, will provide an environmental site assessment that meets the standards and requirements of the DSL.

The closing shall be on or before 120 days after the DSL approved value of the property has been established. This will provide sufficient time for the selection of the appraisers, the appraisal process, the evaluation and resolution of any title, boundary and/or environmental issues resulting from the due diligence performed, and discontinuation of all mining activities on the property. Closing is contingent upon Suwannee American Cement Company, Inc., receiving all state and local authorizations to construct a cement plant in Suwannee County. The Agreement also includes a provision relieving the Seller of obligations, if any, to reclaim the mine located on the property.

The OES, in cooperation with LAMAC staff, the land manager, and the Florida Natural Areas Inventory, will re-evaluate the property if purchased. OES will prepare an agenda item for LAMAC review and, in cooperation with LAMAC staff, will develop a recommendation for LAMAC and, ultimately, the Board of Trustees, to consider if the lands outside of the boundary should be retained in state ownership or be designated surplus. If the lands outside of the boundary are to be retained, then the CARL project boundary will be amended to include those lands. DSL will initiate the disposal process, pursuant to existing rules and statutes, to surplus portions of the acquisition deemed unnecessary by the Board of Trustees.

In addition to the sale of the mine property, the Seller has agreed to donate an additional twenty-one acres of property on the Blackwater River in Santa Rosa County. The property, referred to as the Bagdad property, is thought to be the oldest industrial site in Florida and may have national historic significance. The Seller, at its sole cost and expense, will provide a survey, title insurance, and environmental site assessment for the donated parcel.

North and east of Ichetucknee Springs, a dry valley – the Ichetucknee Trace – marks the possible route of the underground conduit supplying the springs’ clear water. Though a state park protects the springs and much of the Ichetucknee River that flows from them, active limerock mines in the Trace threaten to disturb the conduit. Public acquisition of the Ichetucknee Trace Limerock Mines CARL project will protect the water quality of the springs by removing the threat of further mining and will provide the public with a fishing area.

Pursuant to section 259.032(9)(b)2., F.S., staff recommends that the Board of Trustees designate Columbia County as the managing agency for this site. It will be managed as a multi-use park with the assistance of the Fish and Wildlife Conservation Commission, who will be responsible for fishing management. The county will provide the public with opportunities for hiking, off-road bicycle trails, picnicking and possible horseback riding.

The primary objective of management of the Ichetucknee Trace Limerock Mines CARL project is to preserve the quality and quantity of water flowing into the first-magnitude Ichetucknee Springs by preventing mines from disturbing a major conduit to the springs. Achieving this objective will help to ensure that the public can continue to enjoy recreation in the scenic springs and spring run.

The project should be managed under the multiple-use concept: management activities should be directed first toward conservation and restoration of resources and second toward integrating carefully controlled consumptive uses such as fishing. Managers should control access to the project; limit public motor vehicles to one or a few main roads; thoroughly inventory the resources; contour the mine pits to provide shallow littoral zones for colonization by aquatic plants and animals, and re-contour spoil piles so they can be revegetated with native trees, shrubs, and grasses; reforest cleared, but unmined, areas with original species; control exotic pest plants that may invade the disturbed parts of the site; and monitor management activities to ensure that they are actually preserving resources. Managers should limit the number and size of recreational facilities, ensure that they avoid the most sensitive resources, and site them in already disturbed areas when possible.

The project includes the two active mines in the Ichetucknee Trace, a dry valley that may indicate the course of the underground conduit to Ichetucknee Springs, and therefore probably has the size and location to achieve its primary objective.

This acquisition is consistent with section 187.201(10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 13, Pages 1-34)

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