AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

MAY 9, 2000

********************************************************************************

Item 1 Minutes

Submittal of the Minutes of the March 28, 2000 Cabinet Meeting.

RECOMMEND ACCEPTANCE

******************************************************************************

Item 2 North Key Largo Hammocks CARL Project (Knowlson Colony/Gulfstream Shores Subdivisions) Eminent Domain Authority/Condemnation Resolution Delegation

REQUEST: Consideration of a request to (1) direct the Department of Environmental Protection to exercise the power of eminent domain pursuant to the provisions of chapters 73 and 74, F.S., to acquire all remaining vacant land within the Knowlson Colony and Gulfstream Shores subdivisions in the North Key Largo Hammocks CARL project; (2) adopt a condemnation resolution for the vacant land within the Knowlson Colony and Gulfstream Shores subdivisions in the North Key Largo Hammocks CARL project; and (3) delegate authority to the Secretary of the Department of Environmental Protection, or his designee, to prepare and execute parcel-specific condemnation resolutions.

COUNTY: Monroe

LOCATION: Section 29, Township 60 South, Range 40 East

STAFF REMARKS: The North Key Largo Hammocks CARL project is ranked number 1 on the CARL Substantially Complete 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 4,508 acres, of which 4,223.01 acres have been acquired or are under agreement to be acquired by the Board of Trustees, leaving 284.99 acres, or six percent, of the project to be acquired.

The tropical rockland hammock of the North Key Largo Hammocks CARL project is a highly endangered, rapidly disappearing natural community that supports numerous rare and endangered plant and animal species with limited distributions. The hammocks of North Key Largo are the best and largest examples of tropical hammock remaining in the United States. This project has over ten miles of shoreline that directly influence the adjacent waters of John Pennekamp Coral Reef State Park and the Florida Keys National Marine Sanctuary. Preservation of the project area in its natural condition will significantly aid in the maintenance of the high water quality necessary to support and manage the living reefs of the park, and it will conserve an area where the public can enjoy the original landscape of the subtropical Florida Keys.

The acquisition of the North Key Largo Hammocks CARL project is gradually approaching completion. However, the project is bisected in its southern half by two adjacent developments, Gulfstream Shores and Knowlson Colony subdivisions. The main purpose of these acquisitions is to provide continuity of natural resources between the two discontinuous portions of the project. The developed areas separate the Port Bougainville/Garden Cove portion of the 275 acres to the south from the main North Key Largo Hammocks CARL project of approximately 2,950 acres to the north. The developments extend from SR/C-905 eastward to the Atlantic Ocean. Some of the lots have been developed, but many have only been partially cleared and hardwood hammock still covers almost all of the vacant lots in Knowlson Colony subdivision. The northern and southern portions of the project support extensive stands of rockland hammock. These additions provide the only opportunity to

Board of Trustees

Agenda – May 9, 2000 Page Two
******************************************************************************

Item 2, cont.

establish wildlife corridors between the two disjunct hammock areas. By acquiring the vacant

lots and re-establishing hammock corridors across the break, the Department of Environmental Protection (DEP) will gain the much needed continuity of vegetative cover, and obtain additional biological benefits for the already acquired portions of the North Key Largo Hammocks CARL project.

This project was originally known as New Mahogany Hammock on the first CARL list in 1980. The project was significantly expanded in 1986. By 1992, all lots owned by willing sellers had been acquired. On September 15, 1992, the Board of Trustees directed the Department of Natural Resources (DNR) to exercise the power of eminent domain to acquire all remaining vacant parcels within the project. Since 1992, the DNR, now the DEP, and the Attorney General’s Office have been pursuing eminent domain and have acquired approximately 410 acres by eminent domain.

On December 5, 1997, the Land Acquisition and Management Advisory Council approved a request by the Division of Recreation and Parks (DRP) to add vacant lots, consisting of 24 acres, within Gulfstream Shores and Knowlson Colony subdivisions to the project. These two subdivisions will form a critical link connecting existing state-owned lands.

On May 25, 1999, the Board of Trustees authorized the Director of DEP’s DSL, or her designee, to extend bona fide offers and approve any contract for the sale and purchase of land within the North Key Largo Hammocks CARL project pursuant to section 259.041(1), F.S., at the approved value when the purchase price per parcel does not exceed $50,000; and to disclose the appraisal to the sellers. Approximately 32 parcels are either under contract or have closed under this authority. Subsequently, on September 14, 1999, the Board of Trustees extended that authority to make offers up to $4,000 over the appraised value to the remaining property owners who either rejected or failed to respond to the original offer. Under this authority, approximately 38 additional parcels are either under contract or have closed. In the event that any of the pending transactions do not close, the resolution covers all 109 parcels. The remaining property owners have either declined our offers or have failed to respond. Rule 28-20.100, F.A.C., instructs the DSL to conclude acquisition of the North Key Largo Hammocks CARL project by July 12, 2000.

Section 259.041(13), F.S., authorizes the Board of Trustees, by majority vote of all of its members, to direct the DEP to exercise its power of eminent domain pursuant to the provisions of chapters 73 and 74, F.S. Eminent domain may be used to acquire any of the property on the CARL list if (1) the state has made at least two bona fide offers to purchase the land through negotiation and an impasse between the state and the land owner has been reached; and (2) the land is of special importance to the state because (a) it involves an endangered or natural resource and is in imminent danger of being developed; (b) it is of unique value to the state and failure to acquire the property would constitute an irreparable loss to the state; or (c) the failure to acquire the property would seriously impair the state’s ability to manage or protect other state-owned lands.

The Knowlson Colony and Gulfstream Shores subdivisions within the North Key Largo Hammocks CARL project meet this criteria because: (1) the state has made at least two bona fide offers and has been unable to acquire these parcels through negotiations; (2)(a) the tropical rockland hammock is a highly endangered, rapidly disappearing natural community and supports numerous rare and endangered plant and animal species with limited distributions; (b) the hammocks of North Key Largo are the best examples of tropical hammock remaining in the United States; and (c) the project has over ten miles of shoreline that directly influence the adjacent waters of John Pennekamp Coral Reef State Park, and preservation of the project area

Board of Trustees

Agenda – May 9, 2000 Page Three ******************************************************************************

Item 2, cont.

in its natural condition will significantly aid in the maintenance of the high water quality necessary to support and manage the living reefs of the park.

These properties will be managed by the DRP as part of the Key Largo Hammocks State Botanical site.

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 2, Pages 1-13)

RECOMMEND APPROVAL ******************************************************************************

Item 3 Johnny Walker Option Agreement/Wekiva-Ocala Greenway CARL Project

REQUEST:  Consideration of an option agreement to acquire 165.86 acres within the Wekiva-Ocala Greenway CARL project from Johnny Walker, as Trustee.

COUNTY:  Lake

LOCATION: Sections 03 and 10, Township 18 South, Range 28 East

CONSIDERATION:  $275,000

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Goodman APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (10/01/99) VALUE PRICE PRICE DATE

000801 Walker/27 165.86 $282,000 $282,000 $326,000* $275,000 120 days after

BOT approval

* The property was acquired in 1988.

STAFF REMARKS: The Wekiva-Ocala Greenway CARL project is ranked number 6 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. The project contains 67,397 acres, of which 35,023.82 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 31,207.32 acres or 46 percent of the project will remain to be acquired.

All mortgages and liens will be satisfied at the time of closing. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to the Department of Environmental Protection (DEP) the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them as appropriate. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for any title issues that arise 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.

Board of Trustees

Agenda – May 9, 2000 Page Four ******************************************************************************

Item 3, cont.

The springs, rivers, lakes, swamps and uplands stretching north from Orlando to the Ocala National Forest are an important refuge for the Florida black bear, as well as other wildlife such as the bald eagle, swallow-tailed kite, Florida scrub jay and wading birds. Public

acquisition of the Wekiva-Ocala Greenway CARL project will protect these animals and the Wekiva and the St. Johns river basins by protecting natural corridors connecting Wekiwa Springs State Park, Rock Springs Run State Reserve, the Lower Wekiva River State Reserve and Hontoon Island State Park with the Ocala National Forest. It will also provide the people of the booming Orlando area with a large, nearby natural area in which to enjoy camping, fishing, swimming, hiking, canoeing and other recreational pursuits.

The property will be managed by the Department of Agriculture and Consumer Services, Division of Forestry as part of the Seminole State Forest.

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 3, Pages 1-14)

RECOMMEND APPROVAL

******************************************************************************

Item 4 Jose R. and Alicia P. Martinez Acquisition/East Everglades CARL Project

REQUEST: Consideration of authorization to acquire 100 percent interest in 81.99 acres within the East Everglades CARL project from Jose R. and Alicia P. Martinez.

COUNTY: Miami-Dade

LOCATION: Section 24, Township 52 South, Range 39 East

CONSIDERATION: $1,885,000

STAFF REMARKS: The East Everglades CARL project is ranked number 3 on the CARL Mega-Multiparcels 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 area known as the East Coast Buffer covers 59,088 acres. Of this, 2,189 acres will be protected by mitigation and 33,817 acres are of a lower priority, including land owned by local governments and acres that may not need to be acquired. Of the remaining 23,082 acres proposed for acquisition, 17,995.48 acres have been acquired. After the Board of Trustees approves this acquisition, 5,004.53 acres or 22 percent of the area will remain to be acquired.

The East Coast Buffer consists of approximately 59,088 acres of marshes, reservoirs, and groundwater recharge areas in Palm Beach, Broward and Dade counties. However, the most significant aspect of the East Coast Buffer is its role in restoring the Everglades. In 1992, Congress authorized the U.S. Army Corps of Engineers (COE) to conduct a restudy of the Central and Southern Florida Project. The reconnaissance report for this restudy was completed in 1994 and the COE incorporated the East Coast Buffer in its analysis, referring to the area as the "Water Preserve Areas." Further detailed study of this Everglades restoration project component has already been authorized by Congress and a final detailed plan will be prepared by September 2001. The Final Restudy Report and Programmatic Environmental Impact Statement were released on April 7, 1999, for final public review and comment. The

Board of Trustees

Agenda – May 9, 2000 Page Five ******************************************************************************

Item 4, cont.

report received a favorable review by the Department of Environmental Protection (DEP) and other agencies and was submitted to Congress on July 1, 1999.

The purpose of the East Coast Buffer/Water Preserve Areas is to: (1) increase storage and hold more water in the system by controlling seepage from the Everglades, thus restoring more natural Everglades hydropatterns; (2) capture and store excess stormwater currently discharged to coastal waters, thus retaining an important water supply source for both urban and natural systems; (3) provide a buffer between natural and developed areas; (4) preserve and protect wetlands outside the publicly-owned Everglades; and (5) provide important transitional land uses between the natural and developed areas. East Coast Buffer/Water Preserve Areas may also enhance flood control in areas to the east of these lands. The East Coast Buffer lands are

under intense development pressure in all counties. Therefore, immediate public acquisition is needed to preserve and enhance wetlands and preserve opportunities for the restoration of the Everglades ecosystem.

To implement this restoration, during the last decade the South Florida Water Management District (District) has acquired over 16,000 acres at a cost of $119,000,000. In anticipation of the Board of Trustees’ participation in this effort, the East Coast Buffer was added to the East Everglades CARL project on March 15, 1996. District funding is now limited but the District offered to take the lead in acquiring the property on behalf of the Board of Trustees. On December 8, 1998, the Board of Trustees authorized staff to enter into an acquisition agreement to acquire various ownerships located in the East Coast Buffer portion of the East Everglades CARL project in accordance with section 259.041(16), F.S., utilizing the procedures set out in section 373.139, F.S. On June 15, 1995, the Board of Trustees approved the use of the District's procedures to allow the District to acquire lands to be held by the Board of Trustees. Since the land being acquired will be part of a federal project, federal acquisition procedures are being used.

The subject property is located in an area of environmental concern known as the Northwest Dade County Freshwater Lake Plan Area (also known as the "Lake Belt Area"). The area is one of the most environmentally sensitive areas of the state, but it also provides half of the limestone mining resources used in the state every year. A Lake Belt Area plan and a committee was established to find the proper balance between the economic values of continued rock mining, the environmental values of the freshwater wetlands, the protection of public water supplies and on-going federal, state and local efforts to restore the greater Everglades ecosystem. The study recommends an overall environmental permitting framework to create a coordinated freshwater lake system to replace the current checkerboard mosaic of quarried lakes now being created at a rate of 300 to 400 acres per year by mining operations. Because of the extremely sensitive nature of the property, it is felt that permits for many uses outside of the agricultural use will not be allowed.

The District has acquired an agreement for sale and purchase to purchase the Martinez parcels at 100 percent of appraised value. Pursuant to the terms of the acquisition agreement, the District shall be reimbursed for all costs associated with acquiring the property, including pre-acquisition and closing related costs. The Board of Trustees’ purchase price will be 100 percent of the contract price negotiated by the District plus 100 percent of the cost incurred in the purchase of the property. Title to the property acquired will vest in the Board of Trustees.

As provided for in the acquisition agreement, on March 9, 2000, the Governing Board of the District adopted Resolution 2000-16 requesting the Board of Trustees’ purchase price for the parcels, reimbursement of 100 percent of its pre-acquisition costs and reimbursement of 100

Board of Trustees

Agenda – May 9, 2000 Page Six ******************************************************************************

Item 4, cont.

percent of its closing costs. The remaining parcels in the resolution were under $250,000.

Authority to approve the reimbursement of parcels under $250,000 was delegated to the DEP by the Board of Trustees on June 22, 1999. 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.

The East Coast Buffer portion of the East Everglades CARL project will be managed by the District in conjunction with COE Everglades restoration projects. As local sponsor for the restoration projects, the District is required to hold a title interest sufficient to meet COE certification requirements. While the COE would prefer the sponsor to hold fee title, section 259.101(3)(g), F.S., states that title to lands acquired with P2000 funds under the CARL

program must vest in the Board of Trustees. The acquisition agreement includes a provision whereby the Board of Trustees will convey to the District an easement consistent with section 253.034(4), F.S., for any lands acquired under this agreement that are to become part of a COE approved Everglades restoration project. DEP staff is currently working with the COE and the District to develop an easement sufficient for COE certification. The COE will require the easement to include a statement that the land interest will not be impaired during the life of the project and that the COE is granted an irrevocable right to enter the project lands for the purpose of constructing, inspecting, completing, operating, repairing, maintaining, replacing or rehabilitating the projects. In the event that the COE determines that fee title is required to meet certification requirements, statutes would need to be amended to permit entities other than the Board of Trustees to hold title to lands acquired with P2000 funds under the CARL program.

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 4, Pages 1-56)

RECOMMEND APPROVAL

******************************************************************************

Item 5 Palm Coast Holdings, Inc. Option Agreement/Lehigh Greenway Rail Trail Project

REQUEST: Consideration of an option agreement to acquire 195.73 acres within the Lehigh Greenway Rail Trail project under the Preservation 2000 Florida Greenways and Trails program from Palm Coast Holdings, Inc.

COUNTY:  Flagler

APPLICANT: Department of Environmental Protection, Office of Greenways and Trails

LOCATION:  Sections 34, 35 and 36, Township 11 South, Range 30 East; Sections 31 and 32, Township 11 South, Range 31 East; Sections 01, 02 and 03, Township 12 South, Range 30 East; and Sections 03, 04, 05, 06 and 40, Township 12 South, Range 31 East

CONSIDERATION:  $282,800

Board of Trustees

Agenda – May 9, 2000 Page Seven

******************************************************************************

Item 5, cont.

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Rex APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (02/11/99) VALUE PRICE PRICE DATE

000802 Palm Coast 195.73 $285,800 $282,800* ** $282,800 150 days

after BOT

approval

* The approved value was adjusted to reflect the revised acreage.

** According to the seller the property was acquired as part of a bulk sale of multiple land parcels, lots and accounts

receivable for a purchase price of $33,631,926. $17,565,194 was allocated to land parcels, of which this parcel was

a part.

STAFF REMARKS: The Lehigh Greenway Rail Trail project has been identified on the Department of Environmental Protection (DEP), Office of Greenways and Trails’ (OGT) approved acquisition list. This acquisition was negotiated by the Division of State Lands (DSL) on behalf of the OGT under the Preservation 2000 Florida Greenways and Trails program. The project contains 195.73 acres, of which these are the first to be acquired. After the Board of Trustees approves this agreement, the project will be complete.

This property is being acquired using federal acquisition procedures in accordance with the Federal Intermodal Surface Transportation Efficiency Act and the Code of Federal Regulations Title 49. On June 22, 1999, the Board of Trustees approved a recommendation to substitute the land acquisition procedures of the Federal Highway Administration for the State of Florida’s procedures outlined in section 259.041, F.S., for the projects that qualify for federal enhancement funding, as administered by the Florida Department of Transportation.

All mortgages and liens will be satisfied at the time of closing. There are several easements encumbering the property. The easements include an overpass easement for I-95; a non-exclusive easement and/or right of way for ingress and egress, maintenance and improvement of the easement property and the road crossing, installation and maintenance of culverts and drainage facilities; and a high-voltage, overhead power line easement. All known easements and encumbrances were taken into consideration by the appraiser in his determination of value. The agreement allows for a reserved access easement in favor of the seller over a portion of the property to provide ingress and egress to that portion of the seller’s property that is bisected by the railroad spur. This easement will be subject to the satisfaction and requirements of the DSL. The Bureau of Appraisal has determined that, as long as the easement does not affect management, it will not affect the value of the property. The OGT and the Flagler County Public Works Department (County), the future managing agencies, are willing to manage the property with the encumbrances. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to the DEP the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them as appropriate. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for these and any other title issues that arise 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 acquisition of this parcel will provide recreational opportunities for the general public as well as a link in the ever-growing system of pathways, trails, public parks and greenspaces throughout Flagler County. The project also passes directly through the future center of Palm Coast and may grow to be an intricate part of the Town Center activities, thereby providing an alternative mode of transportation for the residents and visitors alike.

Board of Trustees

Agenda – May 9, 2000 Substitute Page Eight

******************************************************************************

Item 5, cont.

The OGT will be the interim manager of the property with the County as the long-term manager. The property will be managed as the Lehigh Greenway Rail Trail.

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 5, Pages 1-30)

RECOMMEND APPROVAL

******************************************************************************

Substitute Item 6 Suwannee County Option Agreement/Department of Corrections

DEFERRED FROM THE APRIL 25, 2000 AGENDA

REQUEST: Consideration of an option agreement to acquire 316.75 acres for the benefit of the Department of Corrections from Suwannee County.

COUNTY: Suwannee

APPLICANT: Department of Corrections (DOC)

LOCATION: Section 12, Township 03 South, Range 14 East

CONSIDERATION: $156,500 (The DOC’s share of the total purchase price of $332,587)

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Candler APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (09/21/99) VALUE PRICE PRICE DATE

000704 Suwannee 316.75 $348,000 $348,000 $332,587 $156,500 60 days after

County BOT approval

STAFF REMARKS: Identifying a need for a corrections facility in the Suwannee County area of the state, in 1993, Suwannee County (County) entered into an option agreement with W. K. Daugherty, the owner of the property. The option was extended several times with the County paying additional option money. In 1999, the DOC agreed to contribute $156,500 toward the purchase. At the time of the last extension, Mr. Daugherty advised the County that he would not extend the option and the transaction would have to close no later than March 7, 2000. Due to the limited time period to close on the property, the County decided to proceed to close, with a purchase price of $332,587, and then to convey the property to the Board of Trustees for the same price that the DOC had agreed to contribute. Title to the property acquired will vest in the Board of Trustees. Funds for this acquisition were appropriated by the 1998 Florida Legislature and are still available.

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.

A title insurance policy and an environmental site assessment of the property will be provided by the DOC prior to closing. A survey of the property has already been provided by the County.

Board of Trustees

Agenda – May 9, 2000 Substitute Page Nine

******************************************************************************

Substitute Item 6, cont.

This property will be managed by the DOC as a corrections facility.

This acquisition is consistent with section 187.201(07), F.S., the Public Safety section of the State Comprehensive Plan.

(See Attachment 4, Pages 1-21 submitted with the April 25, 2000 agenda.)

RECOMMEND DEFERRAL TO THE JUNE 13, 2000 CABINET MEETING

******************************************************************************