AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

MAY 23, 2000

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Item 1 Minutes

Submittal of the Minutes of the April 11, 2000 Cabinet Meeting.

RECOMMEND ACCEPTANCE

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Substitute Item 2 AFC of Naples, Inc. Conveyance

REQUEST: Consideration of an application for the conveyance of a 1,054-square-foot, more or less, parcel of filled, formerly submerged, sovereignty land.

COUNTY: Collier

Deed No. 30106 (4904-11)

ERP File No. 11-0160378-001

BOT File No. 110220415

APPLICANT: AFC of Naples, Inc.

LOCATION: Section 14, Township 48 South, Range 25 East, in the Cocohatchee River, Class II waters, within the local jurisdiction of Collier County

Aquatic Preserve: No

Manatee Area idle/slow speed/caution zone: Yes

Outstanding Florida Waters: No

CONSIDERATION: $15,527 representing (1) $15,000 as three times the appraised value, based on an appraisal approved by the Bureau of Appraisal, and calculated, pursuant to section 18-21.013(3)(c)3, F.A.C.; and (2) $527 as an administrative fine for the unauthorized filling of sovereignty submerged lands. The administrative fine is anticipated to be collected by May 23, 2000.

STAFF REMARKS: On February 6, 1998, the applicant purchased Lot 79 in Gulf Harbor subdivision, a single-family residential subdivision. The subdivision was platted in 1955, and was physically created by dredging and filling a mangrove wetland associated with the Cocohatchee River between the late 1950s and early 1960s. About one-half of the 164 residential lots in the subdivision are waterfront properties. They are located adjacent to privately-owned, man-made canals, resulting from the original dredging and filling, or sovereignty submerged lands. Seawalls have historically been installed along the shoreline of many of these lots.

Lots in the subdivision are typically 60 feet wide; the applicant’s platted lot is 65 feet wide. When the applicant purchased the lot, the platted lot line was an average of ten feet waterward of the mean high water line, resulting in about 1,500 square feet of the applicant’s platted lot being waterward of mean high water. It is unknown whether the location of the platted lot line waterward of the mean high water line was the result of long-term erosion of the shoreline because of stormwater flowing across the applicant’s property from the adjacent street, or was an error on the part of the property plat.

In or about September 1998, the applicant placed fill onto his upland property to raise the elevation and to control erosion from stormwater runoff. In the process, the applicant inadvertently placed approximately 124 cubic yards on a 1,054 square-foot area of sovereignty submerged lands within the platted lot waterward of the mean high water line. As a result of

Board of Trustees

Agenda – May 23, 2000 Substitute Page Two ********************************************************

Substitute Item 2, cont.

the filling, the new mean high water line is now an average of six feet waterward of the former

mean high water line. In September 1998, Collier County Code Enforcement notified the Department of Environmental Protection (DEP) that the filling had occurred.

The filling impacted the mangrove fringe bordering the applicant’s property. A regulatory Consent Order (00-0720) was entered into between DEP and the applicant on May 16, 2000. The Consent Order requires the applicant to pay a $1,200 civil penalty, a $527 administrative fine pursuant to the administrative fine methodology adopted by the Board of Trustees on August 14, 1990 and modified on June 2, 1992, and $250 for administrative costs. The Consent Order also requires the applicant to conduct the following mitigation/restoration activities: (1) hand-place riprap along the shoreline to provide additional habitat and shoreline stabilization; (2) enter into a binding agreement with DEP to ensure that (a) no additional filling or riprap placement could be placed waterward of the riprap to be placed as part of any future shoreline maintenance, and (b) any future installation of a vertical seawall would not occur waterward of the mean high water line as it existed prior to the unauthorized filling; and (3) treat with an approved systemic herbicide approximately 18,000 square feet (0.41 acres) of exotic vegetation in filled mangrove wetlands in the Estero Bay State Buffer Preserve. Estero Bay State Buffer Preserve staff has agreed to conduct subsequent treatment as necessary to avoid future exotic infestation at the site as part of their management activities in the buffer preserve.

Pursuant to section 18-21.013(3), F.A.C., the Board of Trustees may pursue the following options in regard to state-owned, submerged lands filled without authorization after June 11, 1957: (1) direct the fill be removed by or at the expense of the applicant; (2) direct the fill to remain as state-owned; or (3) sell the filled land. The first option is not recommended because removal of the fill would adversely impact the mangrove fringe more than the fill has already caused, thereby resulting in further environmental damage to the area. The second option is not recommended because the location, size, and configuration of the parcel as a narrow strip bordering private uplands is not suitable for management by the state for public use. Consequently, staff recommends that the parcel be sold.

Pursuant to Article Ten, Section 11 of the Florida Constitution and section 18-21.004(1)(a), F.A.C., the Board of Trustees may convey sovereignty lands if determined by the Board of Trustees to be in the public interest. In this case, the applicant’s offer to treat exotic vegetation in the Estero Bay State Buffer Preserve will improve public land management in the preserve. Specifically, this will eliminate an exotic seed source that would otherwise spread to other areas of the preserve, and save the state the initial $4,000 cost of treating that area. Additionally, as a result of the conditions associated with this conveyance, the applicant’s shoreline will remain in a more natural condition that will promote further reestablishment of mangroves along the shoreline, thereby providing long-term additional habitat for marine life. The conveyance would also be consistent with previous Board of Trustees’ actions regarding conveyances of filled, formerly submerged, sovereignty lands. Staff therefore believes that the sale is in the public interest.

Pursuant to section 18-21.013(3)(c)3, F.A.C., staff shall recommend to the Board of Trustees that the purchase price for filled land be assessed at three times the present appraised value since the unauthorized fill was placed by the applicant after June 11, 1957. An appraisal submitted by the applicant and approved by the Bureau of Appraisal indicates that the value of the parcel is $5,000; three times that value is $15,000.

Board of Trustees

Agenda – May 23, 2000 Substitute Page Three

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Substitute Item 2, cont.

The proposed conveyance was noticed, pursuant to section 253.115, F.S. Twenty-seven property owners were specifically noticed, and no objections were received by February 28,

2000, the end of the comment period.

A consideration of the status of the local government comprehensive plan was not made for this item. The DEP has determined that land conveyances are not subject to the local government planning process.

(See Attachment 2, Pages 1-9)

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Substitute Item 3 Maureen Moran, Inc. Lease

REQUEST: Consideration of an application for (1) after-the-fact authorization for a ten-year sovereignty submerged lands lease for an existing 52-slip commercial docking facility; (2) authorization for the renovation and expansion of the existing docking facility from 23,032 square feet to 67,540 square feet, more or less; (3) authorization for the severance of 185 cubic yards of sovereign material; and (4) authorization for the placement of 221 cubic yards of riprap.

COUNTY: Collier

Application Nos. 112251009 and 11-0103777-001, 002 & 003

APPLICANT: Maureen Moran, Inc.

(a/k/a The Barge at Goodland Bridge)

LOCATION: Section 13, Township 52 South, Range 26 East, in Goodland Bay, Class II waters, within the local jurisdiction of City of Marco Island

Aquatic Preserve: Rookery Bay, Resource Protection Area 3

Outstanding Florida Waters: Yes (Class II)

Manatee County: Yes

Manatee Aggregation Area: No

Manatee Area idle/slow speed/caution zone: Yes

CONSIDERATION: $47,824.08, representing (1) $13,818.62 as the initial lease fee computed at the rate of $0.2366 (two times the base rate) per square foot since the project is located in an aquatic preserve with 75 percent of the subject property and the adjacent 1,000 feet of shoreline on both sides of the lease area in a natural state, discounted 30 percent because of the first-come, first-served nature of the facility, and including the initial 25 percent surcharge payment; (2) $416.25 for the severance of 185 cubic yards of sovereign material computed at the rate of $2.25 per cubic yard, pursuant to section 18-21.011(3)(a)2, F.A.C., which has been paid; (3) $10,562.48 as lease fees in arrears, including interest, for the unauthorized use of sovereignty submerged lands from April 12, 1993 through September 22, 1996, pursuant to a temporary use agreement (TUA), which has been paid; (4) $15,526.73 as lease fees for the unauthorized use of sovereignty submerged lands from September 22, 1996 through May 23, 2000 (after expiration of the TUA), which has been paid; and (5) $7,500 as an administrative fine for the unauthorized use of sovereignty submerged lands, pursuant to the TUA, which has been paid. 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(1)(a)1, F.A.C. If the applicant’s agreement to reconvey privately-owned submerged lands is approved, the initial lease fee shall be adjusted based upon

Board of Trustees

Agenda – May 23, 2000 Substitute Page Four

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Substitute Item 3, cont.

receipt of an acceptable survey and legal description showing the additional area subject to lease fees.

STAFF REMARKS: The applicant is requesting: (1) after-the-fact authorization for an existing 52-slip commercial marina presently used in conjunction with an upland marina office, restaurant and hotel; (2) authorization to renovate and expand the marina by removing all existing docks and building new docks to create a docking facility with 59 designated wet slips and six transient/temporary mooring slips, for a total of 65 wet slips; (3) authorization to dredge 185 cubic yards of sovereign material to deepen three wet slips; and (4) authorization to place 221 cubic yards of riprap to stabilize the applicant’s shoreline. Vessels mooring at the facility include private recreational and commercial fishing boats, and small rental boats. At least 90 percent of the proposed slips will continue to be open to the public on a first-come, first-served basis, in order to qualify for the ten-year lease and the 30 percent discount of the lease fee. This has been addressed as a special lease condition.

The project site has historically been the site of a marina of approximately 28 wetslips, dating back to the early 1960s. The marina provided mooring for private recreational and commercial fishing boats. The associated upland structures included a motel, an old barge intended to be converted into a restaurant, and a bait and tackle shop. The original docks at the marina preempted approximately 13,680 square feet of submerged lands. These structures had degenerated into a state of disrepair from age and storm events when the applicant purchased the property on April 12, 1993. Neither the predecessor in title to the marina property nor the applicant brought the original docks under lease. Therefore, they are considered unauthorized structures over sovereignty submerged lands.

After purchasing the property with the unauthorized docks, the applicant began extensive renovations of the upland property, spending approximately $200,000 to cleanup debris and remove soils contaminated from fuel spills. A July 30, 1993, inspection of the marina by the Department of Environmental Protection (DEP) revealed that portions of the original docking facility were replaced and also expanded without proprietary authorization from the Board of Trustees or a regulatory permit from the former Department of Environmental Regulation (DER). The unauthorized construction consisted of the addition of floating docks and a fixed jet ski platform providing approximately 24 additional slips and preempting an additional 9,352 square feet of sovereignty submerged lands. The existing and additional preempted areas currently total 23,032 square feet of unauthorized use.

A regulatory consent order (OGC 93-0073) was issued by the DER on February 5, 1993, for the unauthorized jet ski platform. The consent order required a regulatory permit be obtained for the structure and payment of a $700 civil penalty, which has been paid. Another regulatory consent order (OGC 94-2217) was issued by the DEP, on July 29, 1994, for the unauthorized floating docks. The consent order also required a regulatory permit be obtained for the unauthorized structures and payment of a $700 civil penalty, which has also been paid.

The DEP subsequently issued a wetland resource permit on July 10, 1995, for the proposed docking facility. The permit allows fueling facilities on the applicant’s upland property and sewage pumpout facilities, and prohibits liveaboards. Regulatory mitigation actions include the removal of creosote piles and debris from the marina, a fuel spill contingency plan, and placement of 221 cubic yards of riprap along 175 feet of the applicant’s riparian shoreline. The riprap placement will dissipate wave energy and provide nearshore habitat.

The initial permit required the applicant to place a conservation easement on a 0.25-acre intertidal mangrove wetland owned by the applicant, located at the western end of the

Board of Trustees

Agenda – May 23, 2000 Substitute Page Five

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Substitute Item 3, cont.

applicant’s property adjacent to the marina, as mitigation and public interest for the permit. The applicant was concerned that the conservation easement would encumber the property, and subsequently requested that DEP consider an alternative to the conservation easement. DEP staff suggested that the permittee confer with Rookery Bay National Estuarine Research Reserve (RBNERR) staff to determine if there were mitigation and public interest alternatives that would assist RBNERR staff in managing the aquatic preserve. RBNERR staff is attempting to obtain several water quality analysis stations to provide data that will assist in management of the aquatic preserve. Because these water quality stations are costly items, RBNERR staff do not anticipate having sufficient funds available to purchase an adequate number of these water quality analysis stations. Therefore, RBNERR staff suggested that the applicant purchase and donate to the RBNERR one of these water quality analysis stations. DEP staff evaluated this alternative, and concluded that the mitigative and public interest value of the water quality analysis station exceeded the value of the conservation easement and the rule requirement to offset permitted project impacts. The permit was subsequently modified in 1999 to require the applicant to purchase and donate to the RBNERR a $10,000 water quality analysis station, in lieu of providing the conservation easement and with the full intent to apply the excess public interest value to the soverign submerged lands authorization.

A Temporary Use Agreement (TUA) was also issued to the applicant by DEP for the period extending from May 26, 1994 to September 22, 1996, for the entire unauthorized 23,032-square-foot preempted area. Pursuant to the terms of the TUA, the applicant paid $10,562.48 as lease fees in arrears, with interest, and $7,500 in administrative fines consistent with the administrative fine methodology adopted by the Board of Trustees on August 14, 1990, and modified on June 2, 1992.

During the negotiations between DEP and the applicant over substitute mitigation and public interest for the permit, the application for authorization to use sovereignty submerged lands remained incomplete, and the TUA expired on September 22, 1996. However, the applicant has paid $15,310.33 as lease fees for the continued preemptive use of 23,032 square feet of sovereignty submerged lands, during the period between expiration of the TUA and May 23, 2000.

The applicant also proposes dredging within the existing marina to create a consistent depth of –4 feet mean low water (-5 feet NVGD) at three proposed wet slips (slips 1, 2, and 3), to be located on the east side of the marina docks. The proposed dredging will include the removal of 185 cubic yards of sovereign material, and will also involve the removal of 35 cubic yards of privately owned submerged lands, by virtue of a Board of Trustees’ deed of conveyance issued in the 1920s. Spoil from the dredging will be deposited on the applicant’s upland property. The DEP wetland resource permit includes regulatory authorization for the proposed dredging. Section 258.42(3)(a) 2, F.S., states, in part, that minimum dredging and spoiling may be authorized for the creation and maintenance of marinas, piers and docks and their attendant navigation channels. The applicant has provided historical aerial photographs and affidavits from the former marina owner and others showing that the proposed dredge area was used in the past for mooring a large vessel (the "Star of the Everglades") with a three-foot draft. The skeletal remains of that vessel were removed from the proposed dredge area as part of the wetland resource permitting process. Because the applicant has documented historic use of the proposed dredge area by a deep draft vessel, the dredging is considered as maintenance of an existing marina, and thus consistent with the statutory requirement.

The proposed project is located in an aquatic preserve, and therefore, must be shown to be in the public interest, pursuant to section 258.42, F.S., and section 18-20.004(1)(b), F.A.C. Staff is of the opinion that the proposed project is in the public interest in light of the following

Board of Trustees

Agenda – May 23, 2000 Substitute Page Six ***************************************************

Substitute Item 3, cont.

items agreed to by the applicant: (1) reconvey to the Board of Trustees the submerged lands owned by the applicant by virtue of the 1920s conveyance by the Board of Trustees. The area to be reconveyed to the Board of Trustees is approximately 2,940 square feet of submerged lands along the applicant’s shoreline. Approximately 1,515 square feet of this area would be included in the requested submerged lands lease, increasing the annual lease fee by approximately $250. The remaining 1,425 square feet of this reconveyed area would not be preempted by the docking facility and thus not included in the requested lease; (2) purchase and donate, to the RBNERR, a $10,000 water quality analysis station that will be used to collect and analyze water quality data within the Rookery Bay Aquatic Preserve; and (3) install and maintain an educational display on the applicant’s upland property regarding the importance of seagrasses and mangroves to the aquatic preserve. Items (2) and (3) are required as a combination of mitigation and public interest for the DEP regulatory permit. Mitigation proposals are typically not considered as a public interest benefit in the proprietary public interest determination because they are limited to offsetting adverse impacts at the project site. However, the water quality analysis station will provide the state with vital information about water quality that will enhance management of the Rookery Bay Aquatic Preserve; a value far in excess of that required to mitigate for adverse impacts at the project site. The educational display will increase public awareness of the aquatic preserve’s resources. Therefore, staff considers these two items to directly benefit the aquatic preserve’s resources, thus qualifying to be considered as public interest benefits for the proprietary authorization. Items (1) and (2) are addressed as special approval conditions. Item (3) is addressed as a special lease condition.

The proposed project will be located within the 25-foot setback area from the adjacent riparian lines on both sides of the project. The Board of Trustees owns the affected property to the west, which consists of mangrove wetlands managed by the Rookery Bay National Estuarine Research Reserve (RBNERR). RBNERR provided a waiver of that setback requirement. Collier County owns and maintains the upland property to the east (State Road 92), and has submitted a waiver of that setback requirement.

Recommendations from the Florida Fish and Wildlife Conservation Commission, Bureau of Protected Species Management, regarding protection of manatees include requiring the applicant to: (1) comply with the standard manatee protection construction conditions for all in-water construction; and (2) install and maintain manatee informational displays. Item (1) is addressed in the DEP wetland resource permit. Item (2) is addressed as a specific condition in the DEP wetland resource permit, and more specifically addressed as a special lease condition.

The proposed project was required to be noticed, pursuant to section 253.115, F.S. However, the Board of Trustees and Collier County are the only two property owners within 500 feet of the project site, and Collier County has provided a letter indicating consistency with its local comprehensive plan. Since DEP is staff to the Board of Trustees, the DEP considers the project sufficiently noticed to the adjacent owners.

A local government comprehensive plan has been adopted for this area, pursuant to section 163.3167, F.S.; however, the Department of Community Affairs (DCA) determined that the plan was not in compliance. In accordance with the compliance agreement between DCA and the local government, an amendment has been adopted which brought the plan into compliance. The proposed action is consistent with the adopted plan as amended according to a letter received from the City of Marco Island.

Board of Trustees

Agenda – May 23, 2000 Substitute Page Seven

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Substitute Item 3, cont.

(See Attachment 3, Pages 1-9)

RECOMMEND APPROVAL SUBJECT TO THE SPECIAL APPROVAL CONDITIONS, THE SPECIAL LEASE CONDITIONS, AND PAYMENT OF $13,818.62

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Item 4 William H. and Marianne M. Robey Easement/Santa Rosa County

REQUEST: Consideration of a request to issue a perpetual non-exclusive easement containing 1.81 acres, to William H. Robey and Marianne M. Robey for ingress, egress and the installation and maintenance of utilities.

COUNTY: Santa Rosa

APPLICANTS: William H. Robey and Marianne M. Robey

LOCATION: Section 12, Township 04 North, Range 27 West

CONSIDERATION: $1,573, to be deposited in the Internal Improvement Trust Fund

STAFF REMARKS: Mr. and Mrs. Robey own a 10-acre inholding that is surrounded by Blackwater River State Forest. The Robeys have requested an easement to give legal access and install utilities to their property. The proposed easement will be along an existing state-owned dirt road, George Cabiness Road, that is maintained by Santa Rosa County. The Department of Agriculture and Consumer Services, Division of Forestry (Forestry), manages the Blackwater River State Forest under Board of Trustees Lease No. 3686. Forestry does not object to the issuance of this easement.

Pursuant to section 704.01(2), F.S., an owner of land cannot be denied access to his/her property and may lawfully use and maintain an easement by means of the nearest practical route. Although there has been no judicial determination that the applicant is entitled to a statutory way of necessity, Department of Environmental Protection’s staff has reviewed the matter and the applicant’s property meets the criteria for a statutory way of necessity.

The Department of Environmental Protection’s Bureau of Appraisal completed a valuation of the easement area. The value of the easement is determined to be $1,573.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S.; however, the Department of Community Affairs (DCA) determined that the plan was not in compliance. A compliance agreement between DCA and the local government has been finalized. The proposed action is consistent with the adopted plan as amended according to a letter received from the county.

(See Attachment 4, Pages 1-26)

RECOMMEND APPROVAL

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Board of Trustees

Agenda – May 23, 2000 Second Substitute Page Eight

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Item 5 David A. and Patricia Irons Childs Option Agreement/South Savannas CARL Project

REQUEST:  Consideration of an option agreement to acquire 68.88 acres within the South Savannas CARL project from David A. Childs and Patricia Irons Childs.

COUNTY:  St. Lucie

LOCATION:  Section 09, Township 37 South, Range 41 East

CONSIDERATION:  $375,000

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Groover APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (10/22/98) VALUE PRICE PRICE DATE

000903 133 & 134 68.88 $385,000 $385,000 $11,000* $375,000 150 days after

BOT approval

* Parcel 133 was purchased in 1980 for $10,000.

Parcel 134 was purchased in 1987 for $1,000.

STAFF REMARKS: The South Savannas CARL project is ranked number 7 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’ Land Acquisition Workplan. The project contains 6,046 acres, of which 4,991.22 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 985.9 acres or 16 percent of the project will remain to be acquired.

The property is improved with two old frame structures and one old foundation. According to the appraiser, none of the improvements are considered to add contributory value. The appraiser also took into consideration the lack of legal access. The property can be accessed for management purposes through adjoining state-owned land. The Division of Recreation and Parks (DRP), the future managing agency, is aware of the improvements and the lack of legal access and has indicated that the management of the property will not be affected.

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 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.

Around Fort Pierce a chain of marshes and lakes separating inland pine flatwoods from the coastal scrub on the high Atlantic Ridge has survived the rapid development of St. Lucie and Martin counties. Public acquisition of the South Savannas CARL project will conserve these coastal freshwater marshes and the nearby flatwoods and scrub so that the wildlife and plants of this area, some extremely rare, will continue to survive and the public can learn about and enjoy this scenic remnant of the original southeast Florida.

This property will be managed by the DRP as part of the Savannas State Preserve.

Board of Trustees

Agenda – April 25, 2000 Substitute Additional Page Nine

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Item 5, cont.

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 1-27)

RECOMMEND APPROVAL

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Additional Item 6 Atlantic Center for The Arts Purchase Agreement/Spruce Creek CARL Project

REQUEST:  Consideration of a purchase agreement to acquire 118.1 acres within the Spruce Creek CARL project from the Atlantic Center For The Arts, Inc.

COUNTY:  Volusia

LOCATION:  Sections 25, 26, 35 and 36, Township 16 South, Range 33 East

CONSIDERATION:  $1,390,000

APPRAISED BY SELLER’S

REVIEW Benson Sutte APPROVED PURCHASE PURCHASE CLOSING

NO. PARCEL ACRES (03/23/00) (03/23/00) VALUE PRICE PRICE DATE

000904 ACA 118.1 $1,600,000 $1,390,000 $1,600,000 $1,520,000 $1,390,000 45 days

after BOT

approval

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 1,796.97 acres have been acquired or are under agreement to be acquired. After the

Board of Trustees approves this agreement, 191.93 acres, or nine percent of the project, will remain to be acquired.

The subject property was part of a 1994 CARL project addition but, as a result of insufficient matching funds under the bargain/shared category criteria, no acquisition was pursued until June of 1995, when the Volusia County Council agreed to donate an 800-acre parcel they acquired in 1987 at a cost of $1,900,000. With this commitment of matching funds, in December 1996, the CARL program acquired the Diocese of Orlando parcel, the number one priority in the project addition. This $1,479,500 purchase used most of the Volusia County's match. While acquisition efforts were undertaken to acquire a few smaller parcels in the project addition, the remaining large ownerships were placed on hold due to a lack of matching funds required under the bargain/shared category.

In 1998, the St. Johns River Water Management District and Volusia County committed to pursue additional purchases in the western portion of the project with a total appraised value of $1,546,500. This additional commitment of funds provided a sufficient match commitment for the CARL program to pursue one or more of the larger parcels in the project addition. Based on this commitment, appraisals were completed in July 1998 for three different parcels that had not been previously pursued due to the lack of matching funds.

Board of Trustees

Agenda – May 23, 2000 Substitute Additional Page Ten

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Additional Item Six, cont.

In February 1998, John Bolt, the owner of the property, granted an option to acquire the property to George Marion. The July 1998 appraisal reports reflected values of $1,221,000 and $1,375,000 by Charles Gardner and Robert Sutte, respectively. In August 1998, under a multi-party acquisition agreement, the Trust for Public Land (TPL) unsuccessfully attempted to acquire Mr. Marion's option rights. Mr. Marion rejected the TPL's highest and best offer and negotiations were terminated.

This parcel shares common borders with the Atlantic Center for the Arts, Inc. (ACA), an internationally known and respected artists-in-residence center founded by Doris Leeper—a recent inductee into the Florida Artists’ Hall of Fame and the driving force behind the creation of the Canaveral National Seashore. According to Paul Markunas, the Executive Director of ACA, the purchase of the Bolt property was Doris Leeper’s dream and focus for the last years of her life and was the driving force behind the ACA's decision to pursue the acquisition of the Bolt property. In March 2000, the ACA, after consultation with the DSL, initiated an effort to raise the funds necessary to enter into negotiations to acquire Mr. Marion’s option and in so doing put a stop to Mr. Marion's plans to develop the property. Since the appraisals were nearly two years old, the DSL agreed to have its appraisals updated to establish the current fair market value for the purchase.

On April 20, 2000, the ACA finalized its agreement with Mr. Marion whereby Mr. Marion would assign his option with Mr. Bolt to the ACA. The ACA's total purchase price, including a $370,000 assignment of option payment to Mr. Marion, is $1,520,000. To date, Mr. Marion has $95,000 invested in the property in the form of option payments and interest. The ACA has already paid Mr. Marion $50,000 in non-refundable funds and is obligated to notify Mr. Marion by June 1, 2000, of its intent to close by June 30, 2000, or be liable for the remaining $320,000. The ACA will be liable to Mr. Bolt for $1,150,000 at closing. The closing is scheduled to take place on or before June 30, 2000.

On May 8, 2000, the review of updated appraisals was complete, indicating a DSL-approved value of $1,600,000. This value is subject to change as result of adjustments during the closing process; however, the Board of Trustees' purchase price shall not exceed $1,390,000.

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 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.

Board of Trustees

Agenda – May 23, 2000 Substitute Additional Page Eleven

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Additional Item 6, cont.

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 Additional Attachment 6, Pages 1-41)

RECOMMEND APPROVAL

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Substitute Additional Item 7 BOR/Florida Atlantic University/Florida Atlantic University Foundation, Inc. Sublease/Uncommon, Ltd. Sublease

REQUEST: Consideration of a request for (1) approval of a 73-year sublease between the Board of Regents on behalf of the Florida Atlantic University and the Florida Atlantic University Foundation, Inc.; and (2) approval of a 30-year ground lease between Florida Atlantic University Foundation, Inc., and Uncommon, Ltd., containing 22 acres, more or less.

COUNTY: Palm Beach

Lease Numbers 2724 and 2978

APPLICANTS: Board of Regents on behalf of the Florida Atlantic University, Florida Atlantic University Foundation, Inc., and Uncommon, Ltd.

LOCATION: Section 13, Township 47 South, Range 42 East

CONSIDERATION: Base rent to be deposited in the Florida Atlantic University

Foundation, Inc., Account $ 848,000 per annum for years 1-10

898,880 per annum for years 11-20

952,813 per annum for years 21-30

1,009,982 per annum for years 31-40

STAFF REMARKS: The Board of Regents (BOR) currently leases land for the use and benefit of Florida Atlantic University (University) under Board of Trustees’ Lease Numbers 2724 and 2978.

The Board of Regents, on behalf of the University, is proposing to sublease through the Florida Atlantic University Foundation, Inc., (Foundation) 22 acres to a private developer for the construction and operation of a retail commercial center designed to serve the needs of the University community. The 22-acre parcel had been the site for married student housing, but was changed to provide for commercial support facilities after an amendment to the University’s Campus Master Plan was approved by the BOR on September 26, 1997. The University feels there is a need to use the site for commercial support facilities to fulfill the needs of the Boca Raton campus students, having limited access to food and other services.

In order to proceed with the ground lease to Uncommon, Ltd., the BOR on behalf of the University is proposing to enter into a sublease with the Foundation for a term coterminous

Board of Trustees

Agenda – May 23, 2000 Substitute Additional Page Twelve

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Substitute Additional Item 7, cont.

with the expiration of Lease Number 2724 between the Board of Trustees and the BOR.

Pursuant to section 18-2.018(3)(a), F.A.C., unless determined by the Board of Trustees to be in the public interest, the term of any lease or sublease shall not exceed a maximum term of fifty years. Lease Number 2724 was executed on January 22, 1974, for a term of 99 years. This lease expires in 2073. Lease Number 2978 was executed on July 13, 1977, for a term of 99 years. This lease expires in 2076. The proposed sublease between the BOR on behalf of the University and the Foundation, carries a term of 73 years and the proposed ground lease between the Foundation, and Uncommon, Ltd., carries a term of 30 years with a right to automatically renew for two consecutive terms of five years. Staff recommends that the Board of Trustees determine that the proposed sublease between the BOR on behalf of the University and the Foundation for a term of 73 years, which is coterminous with the expiration of Lease Number 2724 between the Board of Trustees and the BOR, is in the public interest.

As consideration for the ground lease, Uncommon, Ltd., will pay a base rent for the land of $848,000 per annum for years 1-10; $898,880 per annum for years 11-20; $952,813 per annum for years 21-30; and, if the ground lease is renewed, $1,009,982 per annum for years 31-40. Ownership of the facilities will revert to the Foundation at the end of the ground lease with Uncommon, Ltd., and to the Board of Trustees at the end of the sublease with the Foundation and the lease with the BOR on behalf of the University.

Pursuant to section 18-2.018(1)(a), F.A.C., the decision to authorize the use of the Board of Trustees-owned uplands requires a determination that such use is not contrary to the public interest. The legislature enacted section 243.151, F.S., which authorizes each university to negotiate and upon approval of the Board of Regents, enter into agreements to lease land under its jurisdiction to for-profit and nonprofit corporations, for the purpose of erecting facilities and accommodations necessary and desirable to serve the needs and purposes of the university. This statute further states that the Board of Trustees shall lease any such property to the university for sublease upon request of the university. Under the provisions of section 243.151, F.S., the legislature recognized the importance of providing discretion and flexibility to the university system in the provision of facilities and services for the student population. The University, through a public process, modified the University Campus Master Plan to convert an isolated parcel which was proposed to be used for residential housing into a commercial support facility that would provide needed services to the student population. The Board of Regents approved the University Campus Master Plan modification on September 26, 1997. Staff has reviewed the proposal and recommends that the Board of Trustees authorize the proposed activity because it will: provide needed services to all students; increase on-campus residential opportunities; enhance public/private partnerships in order to preserve and improve the quality of the state university system and to better serve business, industry and government; and develop and implement creative and cost-effective programs.

Pursuant to section 18-2.019(5)(a), F.A.C., before a parcel of land is offered for lease, sublease or sale to a local or federal unit of government or a private party, it shall first be offered to state agencies. This provision is waived pursuant to section 18-2.019(5)(b)1, F.A.C. The BOR has certified that the BOR is the managing agency proposing the sublease and the sublease is directly related to the purpose of the primary lease, which will benefit the University community.

Pursuant to section 18-2.018(2)(i), F.A.C., the Board of Trustees shall authorize uses of uplands that will generate income or revenue to a private user, or will limit or preempt use by the general public, on the basis of competitive bidding or as determined by the Board of Trustees to be in the public interest. The Foundation solicited bids for the proposed project.

Board of Trustees

Agenda – May 23, 2000 Additional Page Thirteen

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Substitute Additional Item 7, cont.

The bid submittal closed on May 12, 1998. On November 23, 1998, the bid evaluation team

selected Uncommon, Ltd., and began negotiations. The Foundation’s Board approved the terms of the ground lease agreement on January 27, 2000. The BOR approved the ground lease agreement on April 14, 2000. Pursuant to section 243.151(1), F.S., the Board of Trustees upon request of the University shall lease any such property to the University for sublease.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S. The Department of Community Affairs has determined that the plan is in compliance. The proposed action is consistent with the adopted plan according to a letter received from the City of Boca Raton.

(See Additional Attachment 7, Pages 1-158)

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