AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

SEPTEMBER 12, 2000

Substitute Page

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Item 1 Minutes

Submittal of the Minutes from the June 26, 2000 and July 11, 2000 Cabinet Meetings

(See Attachment 1, Pages 1-36)

RECOMMEND ACCEPTANCE

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Item 2 Manatee Protection Plan Issues Discussion

Presentation by the Florida Fish and Wildlife Conservation Commission on the status of the manatee protection plans for the 13 coastal counties identified in need of special manatee protection measures.

COUNTIES: Brevard, Broward, Citrus, Collier, Dade, Duval, Indian River, Lee, Martin, Palm Beach, Sarasota, St. Lucie, and Volusia

(See Attachment 2, Pages 1-9)

RECOMMEND DISCUSSION

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Substitute Item 3 Sarasota Yacht Club Recommended Consolidated Intent

DEFERRED FROM THE JULY 25, 2000 AGENDA

REQUEST: Consideration of an application for a modification of a five-year sovereignty submerged lands lease for an existing private yacht club docking facility to increase the number of wetslips from 84 to 108 and increase the preempted area from 182,086 square feet to 244,137 square feet, more or less.

COUNTY: Sarasota

Lease No. 580578403

Application No. 58-01620873-001

APPLICANT: Sarasota Yacht Club

LOCATION: Section 26, Township 36 South, Ranges 17 East, in Sarasota Bay, Class II Waters, within the local jurisdiction of the city of Sarasota

Aquatic Preserve: No

A Manatee County: Yes, without an approved manatee protection plan

Manatee Aggregation Area: No

Manatee Protection Speed Zone: No Outstanding Florida Waters: Yes

CONSIDERATION: $30,716.57 as the initial lease fee computed at the base rate of $0.1183 per square foot, and including the initial 25 percent surcharge payment for the additional area. 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.

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Agenda – September 12, 2000 Substitute Page Two

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Substitute Item 3, cont.

The rule became effective October 12, 1995. As a result of this linkage, the recommended Department of Environmental Protection (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 chapter 253, 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 expand the existing 84-slip, private yacht club docking facility by constructing 24 additional slips, thereby creating a 108-slip facility. The initial lease was approved by the Board of Trustees on October 18, 1983. The most recent modification to the existing sovereignty submerged lands lease, approved under delegation of authority by the DEP on February 11, 1997, incorporated 142,986 square feet of registered, grandfathered structures into the existing 39,100 square feet, for a total lease area of 182,086 square feet. The proposed addition is 62,051 square feet, for a new total lease area of 244,137 square feet.

The upland facility consists of a clubhouse and dining room. The existing docking facility contains three docks extending an average of 280 feet into the waterbody. The proposed construction over sovereignty submerged lands includes: three 97-foot-long by 10-foot-wide walkout extensions from the existing docks; three 120-foot-long by 10-foot-wide terminal "Ts" at the end of each dock; and two 40-foot-long by 3-foot-wide catwalks at each dock.

The proposed project will have no impact on submerged resources. In addition, the water depths at the site of the proposed expansion are greater than -11 feet at mean low water. The types of vessels using the facility are recreational, ranging from 45 to 60 feet in length with a 4-foot draft.

The DEP environmental resource permit requires sewage pumpout facilities, prohibits liveaboards at the proposed slips (original permit does not prohibit liveaboards for the existing slips), and authorizes fueling facilities. The recommendations of the Florida Fish and Wildlife Conservation Commission regarding manatees have been addressed as specific conditions in the environmental resource permit.

This item is being presented to the Board of Trustees for consideration because the proposed expansion of slips exceeds the ten percent delegation of authority threshold pursuant to section 18-21.0051(2)(a), F.A.C.

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

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Agenda – September 12, 2000 Substitute Page Three

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Substitute Item 3, cont.

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 Sarasota.

RECOMMEND DEFFERAL TO THE OCTOBER 24, 2000 CABINET MEETING

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Item 4 Brickell Key Marina/Swire Properties Recommended Consolidated Intent

DEFERRED FROM THE JULY 25, 2000 AGENDA

REQUEST: Consideration of an application for a five-year sovereignty submerged lands lease containing 204,861 square feet, more or less, for a proposed private use, access restricted commercial marina.

COUNTY: Miami-Dade

Application No. 13-0132744-001

APPLICANT: Swire Properties, Inc.

d/b/a Brickell Key Marina

LOCATION: Section 07, Township 54 South, Range 42 East, in Biscayne Bay, Class III Outstanding Florida Waters, within the local jurisdiction of the City of Miami

Aquatic Preserve: Biscayne Bay, Resource Protection Area 1

A Manatee County: Yes, with an approved manatee protection plan

Manatee Aggregation Area: No

Manatee Protection Speed Zone: Yes, slow speed zone

Outstanding Florida Waters: Yes, Class III

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 Department of Environmental Protection (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 Denial," which is attached. The attached consolidated intent contains a recommendation for denial of a permit under Part IV of chapter 373, F.S., and a recommendation for denying 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 denial of the authorization to use sovereignty submerged lands is contained in Section III, "Reasons for Denial."

If the Board of Trustees approves the request to use sovereignty submerged lands and the activity also qualifies for an environmental resource permit, a "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 the "Consolidated Notice of

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Agenda – September 12, 2000 Page Four

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Item 4, cont.

Denial" for both the environmental resource permit and the authorization to use sovereignty submerged lands.

The applicant is proposing to construct a 112-slip commercial marine facility on the western shoreline of Brickell Key Island, located just south of the mouth of the Miami River in downtown Miami. The lease area, 204,861 square feet, will be divided into three separate parcels, with two parcels located north of an 840-foot-long by 66-foot-wide private bridge connecting the island to the mainland, and one parcel on the south side of the bridge. Parcel One is the northernmost parcel and contains 10,301 square feet. Parcel Two is located immediately north of the bridge and contains 102,910 square feet. Parcel Three is located immediately south of the bridge and contains 91,560 square feet. The applicant owns 4,525 linear feet of shoreline on Brickell Key as verified by Dade County tax records. The marina will be used in conjunction with upland private residential units, a hotel (under construction), and some commercial activities. The applicant proposes to limit 46 of the 106 private slips for powerboats, with remaining private slips for sailboat mooring only. Six slips in Parcel One will be dedicated to marine law enforcement vessels. Each slip is proposed to have a wastewater pumpout, connected to the island’s collection system. The applicant describes the marina as a "docks only" facility. No fueling or boat repair facilities, liveaboards, or other such activities are proposed. The applicant’s consultant has stated that the marina will be solely for the use of the island’s residents and guests of the hotel. Public access to the island is restricted. Vehicle or pedestrian access to the island is limited to the private bridge that leads to a manned security gate. During visits to the island, staff have noted no public parking areas. The application states that a water taxi also stops at the island. Currently, the upland uses are a combination of private residential units, offices, and commercial retail activities. A hotel is being built on the south end of the island near the proposed lease area.

A 3.5-acre public park is proposed near the marina on the west side of the island pursuant to a 1975 development order. The applicant proposes to retain approximately two feet of the riparian shoreline along the top of a seawall surrounding the island. In addition, a 20- to 30- foot-wide strip of upland located adjacent to and upland of the applicant’s two-foot strip will be conveyed to the City of Miami (City) for a public park. This conveyance is pending.

A wetland resource permit for a 53-slip marina was originally issued by the former Department of Environmental Regulation on May 28, 1985. A concurrent application for a sovereignty submerged lands lease was submitted on November 2, 1982, to the former Department of Natural Resources for processing. Because of an inability to adequately address the rule requirements of "extreme hardship" and "public interest", this application was subsequently deactivated. The applicant requested that the lease file be reactivated on January 25, 1989. The application was, however, again deactivated on September 25, 1990, because of the inability to meet the "extreme hardship" provisions of the rule.

The proposed project will be located on a bridged coastal island and is, therefore, not subject to the coastal island rule.

The proposed project will be located in Biscayne Bay Aquatic Preserve, established under section 258.397, F.S. As such, activities in this aquatic preserve must be consistent with the provisions of the statutes and rules governing the preserve. Section 258.397(3)(a), F.S., states that "No further sale, transfer, or lease of sovereignty submerged lands in the preserve shall be approved or consummated by the board, except upon a showing of extreme hardship on the part of the applicant and a determination by the board that such sale, transfer, or lease is in the public interest." In addition, section 18-18.006(3)(b), F.A.C., states "There shall be no further use, sale, lease, or transfer of interests in sovereignty submerged lands unless an

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Agenda – September 12, 2000 Page Five

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Item 4, cont.

applicant affirmatively demonstrates sufficient facts to support a finding by the board that: (i) an extreme hardship exists for the applicant at the time the application is filed; (ii) the use, sale, lease, or transfer of interest and the project planned in conjunction with the use, sale, lease or transfer of interest is in the public interest; and (iii) the project planned in conjunction with the use, sale, lease, or transfer of interest is consistent with these rules and management plans when developed for the preserve."

The purpose of the facility is to provide dockage exclusively for residents of the island and for hotel guests. The entire facility will be owned, operated, and maintained by Swire Properties, not the City. As such, the marina is an amenity associated with an upland, access restricted, commercial activity; owned, operated, and maintained by a private entity; with little, if any, access for the public at large. Section 18-18.004(7), F.A.C., clearly defines the project to be a private, "commercial/industrial dock" marina.

Staff is of the opinion that the proposed project contradicts the requirements of section 258.397(3)(a), F.S., and section 18-18.006(3)(b), F.A.C., which both state that leases in the Biscayne Bay Aquatic Preserve must meet the test of extreme hardship, as defined in section 18-18.004(11), F.A.C. The rule allows some latitude for projects which are a public necessity, when such projects are necessary to protect public health and safety and there is no alternative.

The applicant asserts that the project meets the extreme hardship test because the City is proposed to be co-lessee, which makes the marina a public project, and the City has endorsed the marina as part of a downtown revitalization, claiming it to be a public necessity. However, based on the submitted information, the City is not qualified to be a co-lessee since the City does not have the requisite riparian upland property interest required by statute and rule. After conveyance of the park property, the City still will not be a riparian upland owner, as the applicant will retain a two-foot-wide strip of property along the upland edge of the seawall. The applicant has also not shown public necessity, pursuant to 18-18.004(22), F.A.C., by demonstrating how this access-restricted commercial marina is required for the protection of the health and safety of the public. Furthermore, the applicant has not provided evidence that no other reasonable alternatives exist. Absent the demonstration of public necessity, the applicant has not provided any other demonstration of how the project meets the test of extreme hardship.

Section 18-18.006(3)(b), F.A.C., requires that a lease in Biscayne Bay must be in the public interest, pursuant to section 18-18.004(20), F.A.C., and defines such as demonstrating environmental, social, and economic benefits to the public at large, which would clearly exceed all similar cost.

Application of the balancing test results in the costs of the proposed marina exceeding the benefits. Costs include: private preemption of almost five acres of public land from public use; increased boat traffic congestion in and near a navigation channel; shading impacts to seagrass, macroalgal habitat, other hard bottom benthic communties; and potential impacts to the West Indian manatee. The Florida Fish and Wildlife Conservation Commission has recommended against a commercial or public marina at the site. Minimal benefits are expected. The primary benefit is a proposed conservation easement to extend along 4,106 linear feet of the island shoreline. However, this conservation easement is of limited value, since it is not likely that additional docking activities or facilities could be approved along the island. The applicant proposes to offset shading impacts by providing artificial substrate for new algal growth in another site within the project area. Staff is of the opinion that this project is not in the public interest.

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Agenda – September 12, 2000 Page Six

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Item 4, cont.

In summary, staff’s opinion is that the proposed project will have no net public benefit and is not itself a public project, and meets neither the extreme hardship nor the public interest tests necessary for approval.

An objection to the project was received from Friends of the Everglades on August 14, 1998. The objection stated that the project did not meet the "extreme hardship" criteria of section 18-18.006(3)(b), F.A.C., and that the City did not have sufficient interest in the uplands to be considered a co-applicant or co-lessee.

A second objection to the project, in the form of a copy of a letter from the Save the Manatee Club (SMC) to the United States Army Corps of Engineers, was received on December 21, 1998. The objection stated that the project was not consistent with the Dade County Manatee Protection Plan, that the project was not in the public interest, and the mitigation measures proposed at that time were insufficient to offset potential manatee impacts.

A third objection to the project was received from Miami-Dade County Department of Environmental Resources Management on September 14, 1998. The objection stated that the project would adversely impact manatees and was inconsistent with the Miami-Dade County Manatee Protection Plan.

A DEP environmental resource permit application has been processed concurrently with the lease application. Both applications were deemed complete on May 5, 2000. Based on staff’s recommendation to the Board of Trustees that the lease application be denied, and the concerns about the use of the facility and manatee impacts, staff will also recommend denial of the environmental resource permit application.

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. The City has sent letters supporting the project. However, no local permits have been issued for the project.

RECOMMEND DEFERRAL

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Item 5 Hawkins Avenue Corporation/Wood-Hopkins Contracting Co. Lease

DEFERRED FROM THE JULY 25, 2000 AGENDA

REQUEST: Consideration of an application for (1) a five-year sovereignty submerged lands lease containing 129,084 square feet, more or less, for a proposed commercial/industrial docking facility; (2) authorization for the severance of 17,205 cubic yards of sovereign material; and (3) authorization for the placement of 495 linear feet of bulkhead at the approximate mean high water line (MHWL).

COUNTY: Duval

BOT No. 162245689

Application No. 16-147715-004-DF

APPLICANT: Hawkins Avenue Corporation, a Georgia corporation

(d/b/a Wood-Hopkins Contracting Company)

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Agenda – September 12, 2000 Page Seven

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Item 5, cont.

LOCATION: Section 24, Township 01 South, Range 27 East, in the St. Johns River, Class III Waters, within the local jurisdiction of the city of Jacksonville

Aquatic Preserve: No

Outstanding Florida Waters: No

A Manatee County: Yes, with an approved manatee protection plan

Manatee Aggregation Area: No

Manatee Protection Speed Zone: Yes, Slow Speed Minimum Wake within 300 feet of shore, Channel Exempt

CONSIDERATION: $57,799.55, representing (1) $19,088.30 as the initial lease fee computed at the base rate of $0.1183 per square foot and including the initial 25 percent surcharge payment; and (2) $38,711.25 for the severance 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. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable.

STAFF REMARKS: The applicant is proposing to construct a commercial/industrial docking facility to be used in conjunction with a proposed upland marine contracting company. Wood-Hopkins Marine Contracting Company specializes in building bridges, constructing roll-on/roll-off facilities, and the repair and maintenance of vessels, along with other related marine contracting activities. Proposed upland activities include the construction of two buildings, a parking lot, an access road, and rail construction access. Activities on sovereignty submerged lands include the construction of 495 linear feet of bulkhead at the approximate MHWL, the dredging of 2.53 acres of river bottom, and the installation of a 350-foot-long by 75-foot-wide concrete dock.

The applicant is proposing to dredge 17,205 cubic yards of sovereign material to create water depths sufficient for mooring tugboats and barges. Berths (mooring and maneuvering areas) will be dredged to a depth of -20 feet NGVD. Depths currently range from +6 feet NGVD at the proposed bulkhead location to -20 feet NGVD at the terminus of the proposed dock. The spoil will be used for backfill landward of the proposed bulkhead.

Wood-Hopkins Contracting Company, a subsidiary of the applicant, was issued permits (Nos. 16-16318-2E and 16-16319-2E) from the former Department of Environmental Regulation (DER) for the construction of a similar project on December 9, 1979 and July 27, 1979, respectively. A sovereignty submerged lands lease (No. 160163182) was approved by the former Department of Natural Resources (DNR) on December 17, 1979, that authorized the preemption of 53,702 square feet of sovereignty submerged lands. However, the construction was delayed, the permits expired, and the sovereignty submerged lands lease was cancelled on December 7, 1988.

The applicant submitted a new DER permit application for the current proposed project on November 16, 1992. The DNR began to receive preliminary submerged lands lease information from the applicant on January 26, 1993. On February 24, 1993, the applicant received a letter from the Department of Community Affairs (DCA) advising that the applicant’s property, a 37-acre parcel including the project site, was within the Blount Island/Dames Point Areawide Development of Regional Impact (DRI) proposed by the City of Jacksonville (City) with the Jacksonville Port Authority (JPA) serving as agent for the City. An Application for Development Approval (ADA) had been filed and was pending review and adoption by the City Council. Pursuant to section 380.06(5), F.S., no development of any area covered by the Blount Island/Dames Point Areawide ADA could be undertaken until the development order for that project became effective or an agreement with DCA was

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Agenda – September 12, 2000 Page Eight

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Item 5, cont.

established. The submerged lands lease file was placed in an "inactive" status on May 24, 1993 until the DRI review could be completed and submerged lands lease surveys submitted.

The DEP wetland resource permit for the current proposed project was issued to Wood-Hopkins Contracting Company on June 30, 1994. On June 16, 1999, the permit was modified to extend the term of the permit from five years to ten years. The permit was transferred to the applicant on July 7, 1999. The applicant received a "Clearance Letter" from DCA on February 14, 2000 indicating that the Wood-Hopkins development is not required to undergo DRI review. On April 24, 2000, the permit was modified to relocate the proposed dock 25 feet to the north in order to provide a 25-foot setback of the lease boundary from the south riparian line.

The DEP modified wetland resource permit requires sewage pumpout facilities, prohibits liveaboards, and prohibits over-water fueling facilities. The recommendations of the Florida Fish and Wildlife Conservation Commission (FFWCC), Bureau of Protected Species Management, regarding protection of manatees have been addressed in the specific conditions of the wetland resource permit and as special conditions of the lease. In addition, Duval County has adopted and implemented a manatee protection plan that has been approved by the FFWCC. The FFWCC has determined that the proposed project is consistent with the plan. There are no seagrasses or other significant submerged biological resources at the site.

The project was noticed pursuant to section 253.115, F.S., and five objections were received. The main objection concerned potential erosion as the result of the dredging and from potential heavy water traffic. Other concerns included noise pollution, depreciation of upland property values, and traffic. It is staff’s opinion that the erosion concerns due to increased water traffic are unwarranted. There will be very little increase in commercial river traffic, as the barges/tugboats will either be moored in front of the applicant’s property or at the job site. Given the nature of the applicant’s business, movement of the vessels may be weeks or even months apart. It is staff’s opinion that the remaining issues should be addressed by the appropriate local government agency regulating upland property zoning. However, the applicant has designed the proposed project so as to minimize any interference with the neighboring community. It is proposed to construct a main entry road to the property that will alleviate traffic on the neighborhood roads. In addition, the applicant has designed a landscaped buffer zone on its property to further ensure adequate protection for the community.

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’s Planning and Development Department.

(See Attachment 5, Pages 1-6)

RECOMMEND APPROVAL SUBJECT TO THE SPECIAL LEASE CONDITIONS AND PAYMENT OF $57,799.55

 

 

 

 

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Agenda – September 12, 2000 Page Nine

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Item 6 Sadler Point Marina, Inc., Lease

REQUEST: Consideration of an application for an after-the-fact authorization for a ten-year sovereignty submerged lands lease containing 68,678 square feet, more or less, for an existing commercial marina and boat repair facility.

COUNTY: Duval

Lease No. 16000047T

APPLICANT: Sadler Point Marina, Inc.

LOCATION: Section 42, Township 03 South, Range 26 East, in the Ortega River, Class III Waters, within the local jurisdiction of the city of Jacksonville

Aquatic Preserve: No

Outstanding Florida Waters: No

A Manatee County: Yes, with an approved manatee protection plan

Manatee Aggregation Area: No

Manatee Protection Speed Zone: Yes

CONSIDERATION: $7,718.38, representing the initial lease fee computed at the base rate of $0.1183 per square foot, discounted 30 percent because of the first-come, first-served nature of the facility and including the initial 25 percent surcharge payment. 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.

STAFF REMARKS: The applicant is requesting authorization for an existing registered grandfathered commercial marina and boat repair facility on sovereignty submerged lands. The facility was previously registered as a grandfathered facility by a predecessor in title. The marina consists of 67 wet slips associated with two main wooden access piers, measuring approximately 260 feet and 300 feet long, with two T-head docks and associated finger piers. According to the applicant, one of the existing slips is reserved for the use of the Florida Fish and Wildlife Conservation Commission at no charge. A minimum of 90 percent of all slips will be maintained on an open to the public, first-come, first-served basis, and this requirement has been included as a special lease condition. The marina accommodates small recreational and pleasure type vessels.

The shoreline has two concrete finger piers which are used to support a travel lift. The travel lift and a forklift are used to remove boats from the water for repair/maintenance and for an existing 38-slip dry storage building. A small wooden finger pier is located adjacent to the travel lift area and is used for the temporary mooring of vessels utilizing the travel lift. The facility includes an existing nonwater dependent building along the bulkheaded shoreline which preempts approximately 740 square feet of sovereignty submerged lands. The building serves as a ship’s carpenter and rigging shop, and houses electrical services to the existing docks. The upland property contains a metal building housing the 38 dry storage slips, an office and retail building, and a boat repair yard. There are no construction activities or structural changes proposed at the marina as part of this request for a sovereignty submerged lands lease.

In 1963, the subject area was converted from a sawmill into a marina and boatyard complex. In May 1984, a predecessor in title submitted an application for grandfather registration of the existing marina structures. The application remained incomplete until April 1986 when the former Department of Natural Resources (DNR) verified that the facility qualified for grandfather registration and issued grandfather registration number 160016 to Carl E. Smith and Robert E. Belyea, then owners of the property. The nonwater dependent building was registered as part of the grandfathered facility. Grandfathered nonwater dependent uses are

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Agenda – September 12, 2000 Page Ten

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Item 6, cont.

assessed lease fees as water dependent uses when grandfather status is lost for any reason pursuant to section 18-21.011(1)(b)6, F.A.C.

Records indicate that between 1984 and 1999, the riparian upland property of the marina changed titles eight times. In August 1989, former DNR staff discovered that the marina had been sold based upon a local newspaper article. Further investigation by the former DNR staff revealed that the marina had also changed ownership in April 1985. Therefore, the grandfather registration for the marina was lost, pursuant to section 18-21.00405(1)(a), F.A.C., in April 1985, because of the change in ownership of the upland riparian property. The marina has been operating on sovereignty submerged lands without a lease since that time. Several attempts at enforcement were made by the former DNR staff to bring this marina facility under lease, including a 1992 lawsuit filed in Duval County Circuit Court against former upland owners, Aspen Wind, Inc., and Research Services Institute, Inc. The frequent changes in ownership, coupled with financial problems associated with the marina, have contributed to the difficulty in pursuing enforcement and completing the execution of a lease.

On March 18, 1992, a regulatory permit exemption (File No. 162100812) was verified by the former Department of Environmental Regulation to repair functional dock walkways, finger piers, and pilings that had been damaged by a fire at the facility. Aspen Wind, Inc never undertook the repair work.

During routine compliance inspections in March 1998, by DEP district staff, it was revealed that this facility did not have a sovereignty submerged lands lease. On May 27, 1998, a Temporary Use Agreement (TUA) was executed with Marine Development Corporation, d/b/a Sadler Point Marina, the previous owner of the facility. The TUA temporarily authorized the existing structures and marina operations. Lease fees in arrears were collected for the period from January 1, 1998 to March 25, 1999. Several attempts were made after the execution of the TUA to complete the lease application; however, the TUA expired on March 25, 1999.

On September 28, 1999, the upland property was sold to Sadler Point Marina, Inc. A TUA was executed with the new upland owner on December 2, 1999, and lease fees have been collected from the date of sale. The facility is in compliance with the terms of the TUA and lease fees in arrears have been collected through September 28, 2000. DEP district staff has met with the current property owner, and based on their experience with the owner (applicant), staff feels that a submerged lands lease will be complied with when executed. The current owner is a longstanding resident and business owner in the community who is familiar with the requirements and responsibilities of a sovereignty submerged lands lease. The current owner is the president of Lamb’s Yacht Center, Inc., which is authorized by lease (No. 160620529).

On January 25, 2000, a regulatory permit exemption (No. 16-162766-001-EE) was verified by DEP to repair functional dock walkways, finger piers, and pilings that had been damaged by the fire at the facility. Repairs have been completed on one of the two existing docks damaged by the previous fire. The repair work was completed in accordance with the exemption. All of the repair work was confined to the area authorized by the TUA.

The project is located within the 25-foot riparian setback area. Since this is an existing facility and no expansion is proposed, staff concludes that this previously registered grandfather structure is not subject to the current riparian setback standards pursuant to section 18-21.002, F.A.C.

Since the facility is existing and no expansion is proposed, no regulatory permits are required, and the applicant is not requesting authorization for liveaboards or fueling facilities. The

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Item 6, cont.

marina is equipped with a mobile sewage pumpout facility that discharges into the city of Jacksonville’s sewer system. The recommendations of the Florida Fish and Wildlife Conservation Commission (FFWCC), Bureau of Protected Species Management, regarding protection of manatees are addressed as special lease conditions. In addition, Duval County has adopted and implemented a manatee protection plan that has been approved by the FFWCC. The FFWCC has determined that the proposed project is consistent with the plan. The project was not required to be noticed pursuant to section 253.115(5)(g), F.S.

A consideration of the status of the local government comprehensive plan was not made for this facility. The DEP has determined that an existing grandfathered structure is not subject to the local government planning process.

(See Attachment 6, Pages 1 - 6)

RECOMMEND APPROVAL SUBJECT TO THE SPECIAL LEASE CONDITIONS AND PAYMENT OF $7,718.38

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Item 7 Vanderbilt Partners, Ltd., Lease

REQUEST: Consideration of an application for (1) a five-year sovereignty submerged lands lease containing 68,587 square feet, more or less, for a proposed private residential docking facility and mitigation areas; (2) authorization for the severance of 1,947 cubic yards of sovereign material; and (3) authorization for the placement of 591 cubic yards of riprap.

COUNTY: Collier

Lease No. 112373039

APPLICANT: Vanderbilt Partners, Ltd., a Florida Limited Partnership

(d/b/a Regatta at Vanderbilt Beach)

LOCATION: Section 32, Township 48 South, Range 25 East, in Vanderbilt Lagoon, Class II waters, within the local jurisdiction of Collier County

Aquatic Preserve: No

Outstanding Florida Waters: No

A Manatee County: Yes, with an approved manatee protection plan

Manatee Aggregation Area: No

Manatee Protection Speed Zone: Yes

CONSIDERATION: $34,483.82 representing (1) $10,142.30 as the initial lease fee computed at the base rate of $0.1183 per square foot, and including the initial 25 percent surcharge payment; and (2) $24,341.52 as the one-time premium pursuant to section 18-21.011(1)(c), F.A.C. The project qualifies for a waiver of the severance fee pursuant to section 18-21.011(3)(c)1, 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. Fees may be revised upon receipt of an acceptable survey and legal description.

STAFF REMARKS: The applicant is proposing to: (1) construct a 56-slip private residential docking facility; (2) dredge 1,947 cubic yards of sovereign material; (3) place the dredged material on sovereignty submerged lands to create a mitigation area; and (4) install 591 cubic

Board of Trustees

Agenda – September 12, 2000 Page Twelve

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Item 7, cont.

yards of riprap. The docking facility will be used for private recreational vessels. There will be twelve 25-foot-long boat slips, thirty-six 30-foot-long boat slips and eight 40-foot-long boat slips.

The associated upland development is a Planned Unit Development (PUD) consisting of three residential condominiums, Regatta at Vanderbilt Beach I, II and III. The developer will retain ownership of a 10-foot-wide parcel of upland extending along the entire shoreline of the marina and upland development. The uplands will also contain a commons area, and businesses and professional offices that will be located on a commercial parcel designated in the PUD. The project is known as the Regatta at Vanderbilt Beach Complex. The complex includes 205 condominium residential units, 38 non-residential cabana units, and 28 non-residential garage units. Use of the boat slips will be restricted to owners of the condominium units, garage units, and cabana units. Therefore, the docking facility is an ownership oriented facility pursuant to sections 18-21.003(36) and 18-21.004(4), F.A.C

The applicant also proposes to dredge 2,055 cubic yards of material, of which 1,947 cubic yards is sovereign material, to create a depth of -4.2 feet mean low water (MLW) at the docking facility. The depth of the area proposed to be dredged currently ranges from -2.1 feet MLW to -4.3 feet MLW. There are no significant benthic resources such as seagrasses in the area to be dredged. The Department of Environmental Protection (DEP) modified wetland resource permit requires the dredged material to be deposited on sovereignty submerged lands along a portion of the applicant’s northern shoreline at an appropriate elevation to create a wetland planter as mitigation for the docking facility construction and dredging. The mitigation area will be planted with red mangroves and cordgrass and will be stabilized by placing a vinyl sheet panel and riprap at the toe of the fill. The permit’s mitigation requirement also requires riprap to be placed along the applicant’s remaining shoreline. The mitigation area will preempt 31,701 square feet of sovereignty submerged lands and will be included in the overall lease area. The initial lease fee for the 31,701-square-foot mitigation area will be $4,687.79. The applicant’s submerged lands lease survey and legal description erroneously excluded approximately 5,380 square feet of this area from the lease. Therefore, a special approval condition has been included to require receipt of an acceptable survey and legal description. Special lease conditions have been included to require the applicant to: (1) maintain the mitigation area and riprap along the shoreline free of exotic vegetation and debris; and (2) install and maintain educational displays on the covered gazebo in the mitigation area or in close proximity to one or more of the access ramps to the docking facility.

Section 18-21.011(3)(c)1, F.A.C., allows for a waiver of the severed dredge material payment to be requested and approved when the materials are being placed on public property and used for public purposes. The dredged sovereign material will be placed on sovereign lands, and the mitigation area may indirectly serve a public purpose by improving water quality in the lagoon. Therefore, the applicant qualifies for a waiver of the severance fee.

Section 18-21.004(4)(a)1.e., F.A.C., limits the area of sovereignty submerged lands leased for the docking facility to a square footage amounting to 40 times the applicant’s riparian waterfront footage (the 40:1 rule). Since the applicant has 998 linear feet of riparian shoreline, the docking facility may only preempt 39,920 square feet. The total area preempted by the docking facility and mitigation area is 68,587 square feet. The 40:1 rule was intended to apply only to docking facilities and not activities such as mitigation areas. Therefore, the mitigation area was not included in the 40:1 calculation for the docking facility, and the applicant’s request to preempt 36,886 square feet of sovereignty submerged lands for the docking facility is consistent with the rule.

Board of Trustees

Agenda – September 12, 2000 Page Thirteen

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Item 7, cont.

Section 18-21.004(4)(a)7, F.A.C., requires the applicant to record a conservation easement along the riparian shoreline to prohibit future construction or expansion of the facility in excess of the 40:1 preempted area to shoreline ratio. This has been included as a special approval condition.

The proposed project was noticed pursuant to section 253.115(5), F.S. Thirty-seven property owners were specifically noticed and three objections were received in response to the noticing. Twelve additional objections were received in response to a local newspaper article about the proposed project. The objections received expressed concerns about adverse impacts to water quality and navigation from the docks and additional boat traffic, and about the mitigation area. The applicant responded to these concerns as follows: (1) the DEP regulatory permit included a water quality certification for the docking facility and mitigation area; (2) the docking facility and mitigation area will extend approximately 25 percent of the width of the lagoon, thus leaving 75 percent available for navigation. Staff is of the opinion that the concerns raised in the objections received have been adequately addressed by the applicant.

To further respond to the objections, the applicant submitted a revised lease request to reduce the number of wet slips from 60 to 56, and to reduce the configuration of the mitigation area. DEP notified each of the 15 objectors and provided a copy of the revised survey and legal description of the docking facility and mitigation area. To date, two written responses have been received from the objectors. The objections continue to express concerns about water quality, navigation, and the mitigation area. Staff maintains that the concerns raised in the objections have been adequately addressed by the applicant.

The DEP wetland resource permit prohibits liveaboards and fueling facilities, but requires sewage pumpout facilities. Recommendations from the Florida Fish and Wildlife Conservation Commission (FFWCC) regarding manatee protection have been addressed in the specific conditions of the wetland resource permit and as special lease conditions in the lease. Additionally, Collier County has adopted and implemented a manatee protection plan that has been approved by the FFWCC. The FFWCC has determined that the proposed project is consistent with that plan.

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 the 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 Collier County.

(See Attachment 7, Pages 1-11)

RECOMMEND APPROVAL SUBJECT TO THE SPECIAL APPROVAL CONDITIONS, THE SPECIAL LEASE CONDITIONS AND PAYMENT OF $34,483.82

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Item 8 Florida Greenways and Trails System Delegation of Authority/Designation of Public Conservation/Recreation Lands or Waterways

REQUEST: Consideration of a request to delegate authority to the Secretary of the Department of Environmental Protection, or his designee, to (1) request designation of public

Board of Trustees

Agenda – September 12, 2000 Page Fourteen

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Item 8, cont.

conservation or recreation lands or waterways owned by the Board of Trustees of the Internal Improvement Trust Fund as part of the Florida Greenways and Trails System; (2) provide written consent to designate public conservation or recreation lands or waterways owned by the Board of Trustees of the Internal Improvement Trust Fund as part of the Florida Greenways and Trails System; (3) enter into designation agreements pursuant to section 62S-1.400, F.A.C.; and (4) request that lands be removed from designation.

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

LOCATION: Statewide

STAFF REMARKS: In 1993, the Florida Greenways Commission began an effort to bring together public and private partners to create a statewide system of greenways and trails with recreational connections between urban and rural areas and ecological linkages between state and national parks, forests, rivers, wetland systems, and other protected areas. In 1995, the Florida Legislature created the Florida Greenways Coordinating Council (FGCC) to finish the work of the Commission and designated the Department of Environmental Protection (DEP) as the lead state agency responsible for creating a statewide system of greenways and trails. In 1998, the DEP and FGCC completed the mandated five-year implementation plan, "Connecting Florida Communities with Greenways and Trails", and in 1999, the Florida Legislature directed DEP to carry out the recommendations contained in the plan (section 260.016(2)(e), F.S.).

Section 260.016(2)(d), F.S., directs DEP to develop and implement a process for designation of lands and waterways as part of the statewide system of greenways and trails (system). On July 11, 2000, section 62S-1.400, F.A.C., Designation of Public Conservation or Recreation Lands and Waterways, was adopted. The objectives of the designation process are: to ensure that designated components further the purposes, goals and objectives of the system; to ensure the system is inclusive and as interconnected as possible; to encourage voluntary partnerships in conservation, development and management of system components; to provide recognition for individual components and those partners involved; and to raise public awareness of the conservation and recreational benefits of the system components. It is important to note that designation is strictly voluntary, and lands can be removed from designation upon the written request of the landowner. It should be further noted that designation will not impact the management of Board of Trustees’ lands, and approval by the land manager is required.

The Office of Greenways and Trails is now prepared to begin designating lands and waterways into the Florida Greenways and Trails System, and is requesting activities related to landowner consent for Board of Trustees’ lands be delegated to the Secretary of the Department of Environmental Protection or his designee.

(See Attachment 8, Pages 1-17)

RECOMMEND APPROVAL

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Item 9 Little Palm Island Associates, Ltd., Disclaimer/Chapter 18-21.019, F.A.C./Lands Lost Due To Avulsion

REQUEST: Consideration of (1) issuance of a disclaimer to a 0.09-acre parcel of privately- owned land pursuant to section 18-21.019, F.A.C.; and (2) delegation of authority to the

Board of Trustees

Agenda – September 12, 2000 Substitute Page Fifteen

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Item 9, cont.

Secretary of the Department of Environmental Protection, or his designee, to issue disclaimers for privately-owned lands that were lost due to avulsion pursuant to section 18-21.019(4), F.A.C., where appropriate and delivering document(s) to the Board of Trustees for signature.

COUNTY: Monroe

APPLICANT: Little Palm Island Associates, Ltd.

LOCATION: Section 8, Township 67 South, Range 29 East

STAFF REMARKS: The applicant is requesting the issuance of a disclaimer to 0.09-acre of land pursuant to section 18-21.019(4), F.A.C., Applications for Lands Lost Due to Avulsion. An avulsive event is the sudden or perceptible loss of or addition to land by the action of water, or a sudden change in the bed of a lake or the course of a stream. On March 14, 1993, the "No-Name" storm occurred causing the sudden loss of land. Although historic photographs depict a larger land mass that may have been lost in the 1993 storm, the applicant is seeking 0.09-acre (4,020 square feet) of land based on a field survey completed in June of 1986. The avulsed lands described in the disclaimer were located landward of the mean high water line on a date not more than five years prior to the date of application. The application was submitted on July 30, 1996, but it was not until recently that a valid survey was submitted to the Department of Environmental Protection (DEP) for approval.

Staff has determined that all of the criteria in the rule has been met for the parcel. These include: proof of ownership; the necessary proof that the loss happened less than five years prior to the date the application was filed; documentation supporting the fact that the loss was due to an avulsive event(s); documentation supporting the location of the mean high water line prior to and after the avulsive event(s); and a legal description showing that the quantity of land does not exceed one acre.

There are currently no other pending disclaimer applications for avulsion. Staff proposes to process future applications by: (1) issuing disclaimers for avulsion pursuant to section 18-21.019(4), F.A.C., where appropriate and delivering document(s) to the Board of Trustees for signature; and (2) placing those applications that are controversial or questionable on the Board of Trustees’ agenda for formal consideration.

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

(See Attachment 9, Pages 1-28)

RECOMMEND APPROVAL

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Substitute Item 10 City of Panama City Release of Deed Restriction/Downtown Marina and St. Andrews Marina

DEFERRED FROM THE JULY 25, 2000 AGENDA

REQUEST: Consideration of a 20-year release of deed restriction, with 20-year renewals thereafter, for the City of Panama City’s Downtown Marina and St. Andrews Marina.

Board of Trustees

Agenda – September 12, 2000 Substitute Page Sixteen

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Substitute Item 10, cont.

COUNTY: Bay

Deed Number 28495

APPLICANT: City of Panama City

LOCATION: Sections 01 and 08, Township 04 South, Ranges 14 and 15 West

CONSIDERATION: The greater of (1) a single annual payment of $15,000; or (2) a total of: (a) three percent of gross revenues received by the City of Panama City from all municipal commercial/retail activities, and (b) 15 percent of gross revenues received from all non-municipal commercial/retail activities.

STAFF REMARKS: On February 12, 1991, the Board of Trustees granted registration for the entire Downtown Marina as a grandfather facility, pursuant to the provisions of section 18-21.00405, F.A.C., and issued a quitclaim deed for the two parcels of filled, formerly sovereignty submerged lands, to the City of Panama City (City) as part of an effort to clear up title issues involving lands within the City's Downtown Marina and St. Andrews Marina sites. The Downtown Marina site is approximately 22 acres and the St. Andrews Marina site is approximately four acres in size. The Board of Trustees recognized that the City had existing leases with private entities for commercial activities occurring on the filled parcels located at the Downtown Marina site, and specified that as the existing leases for non-public purposes expired, future uses of the site would be restricted to public purposes. Therefore, the quitclaim deed contains a public purpose restriction, since the parcels were conveyed without compensation because of the public nature of the use of the sites.

In March 1998, staff of the Department of Environmental Protection's (DEP), Division of State Lands (DSL) reviewed the Downtown Marina's file to convert the registered grandfathered facility to a sovereignty submerged lands lease. At that time, a potential violation of the public purpose restriction on the upland portion of the property was discovered. In May 1998, DSL staff met with City representatives to discuss the options available to allow the City to continue to allow commercial/retail uses on the upland portion of the property at the Downtown Marina and allow future commercial/retail uses on the uplands at the St. Andrews Marina since both marinas were subject to the same public purpose deed restriction. Options included the sale of the land to the City or a release of the public purpose deed restriction by the Board of Trustees to allow commercial/retail uses.

An agreement was reached on February 15, 2000, between the City and DSL staff, to release the public purpose restriction from the deed for a period of 20 years, with 20-year renewals thereafter, subject to approval by the Board of Trustees. Subsequently, on August 22, 2000, the City approved a resolution to confirm its agreement with the conditions contained in the Release of Restriction and Reverter, in exchange for the removal of the public purpose use restriction. A release of the deed restriction will enhance the City's effort to promote economic growth and development for the downtown area. Accordingly, DSL staff recommends that the Board of Trustees find that it is in the public interest to release the deed restriction to allow commercial/retail use of the parcels located at the Downtown Marina and the St. Andrews Marina. The release of the deed restriction shall be subject to the Board of Trustees receiving, annually, three percent of gross revenues received by the City from all municipal commercial/retail activities (with the exception of revenues received from fuel operations and boat slip rentals: boat slip rentals are covered under an existing sovereignty submerged lands lease), and 15 percent of gross revenues received by the City from all non-municipal commercial/retail activities, or $15,000, whichever is greater. Therefore, in no event shall the annual revenue received by the Board of Trustees be less than $15,000. The

Board of Trustees

Agenda – September 12, 2000 Substitute Page Seventeen

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Substitute Item 10, cont.

City shall continue to abide by the terms and conditions of the existing sovereignty submerged land leases for the operation of commercial marinas, and will continue to provide office and marina space at no cost to the State of Florida at the Downtown Marina. In addition, the City shall not permit the uplands (filled, formerly sovereignty submerged lands) to be used or occupied for any purpose, activity or business other than those stated in the Release of Restriction and Reverter contained in the backup to this agenda item and those authorized by the sovereignty submerged lands leases, unless such use is previously consented to by the Board of Trustees and the Release of Restriction and Reverter is modified accordingly; nor shall the City knowingly permit any nuisances or illegal operations of any kind on the uplands.

A consideration of the status of the local government comprehensive plan was not made for this item. DEP has determined that the proposed request is not subject to the local government planning process.

(See Attachment 10, Pages 1-49)

RECOMMEND DEFERRAL

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Item 11 Miller/Shine Purchase Agreement/Etoniah/Cross Florida Greenway CARL Project

REQUEST:  Consideration of a purchase agreement to acquire 1,312.5 acres within the Etoniah/Cross Florida Greenway CARL project from Joe C. Miller II and Judith G. Shine.

COUNTY:  Putnam

LOCATION:  Sections 14, 24, 25 and 29, Township 10 South, Range 25 East; Section 30, Township 10 South, Range 26 East; and Sections 12 and 13, Township 11 South, Range 24 East

CONSIDERATION:  $1,195,000

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Goodman Benson APPROVED PURCHASE PURCHASE CLOSING

NO. PARCEL ACRES (11/02/99) (07/22/99) VALUE PRICE PRICE DATE

001410 Miller/ 1,312.5 $1,195,000 $1,160,000 $1,195,000 * $1, 195,000 120 days

1,2,5&7 after BOT

Approval

* The sellers inherited the property.

STAFF REMARKS: The Etoniah/Cross Florida Greenway CARL project is ranked number 14 on the CARL Priority Project List approved by the Board of Trustees on February 22, 2000, and is eligible for negotiation under the Division of State Lands’ Land Acquisition Workplan. The project contains 43,564 acres, of which 16,667.2 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement and another agreement in the Etoniah/Cross Florida Greenway project being presented today, 23,292.3 acres or 53 percent of the project will remain to be acquired.

The Department of Environmental Protection’s (DEP) Office of General Counsel negotiated this acquisition. There is no pending litigation on the subject parcel. The contract was negotiated to pay the owner $910 per acre, and includes a provision for an adjustment based on

Board of Trustees

Agenda – September 12, 2000 Page Eighteen

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Item 11, cont.

the final survey and timber cruise. The adjustment will be based on the $910 negotiated price per acre.

All mortgages and liens will be satisfied at the time of closing. The planted pine timber has been planted pursuant to certain cost-sharing forestry programs, including the Forestry Incentive Program and the Forest Stewardship Program, administered by the U.S. Department of Agriculture (USDA). The timber affected shall be managed, harvested and removed in compliance with applicable USDA cost-sharing forestry programs. 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 appropriately. 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.

Though partially logged and planted in pine, the large expanse of flatwoods, sandhills, and scrub in central Putnam County, extending to the Cross-Florida Greenway along the Oklawaha River, is important for the survival of many kinds of wildlife and plants. The Greenway itself is a unique strip of land for recreation and conservation that makes a cross-section of the peninsula from the Withlacoochee River to the St. Johns. Public acquisition of the Etoniah/Cross Florida Greenway project will conserve the Putnam County land as well as fill in gaps in the Greenway; ensure that wildlife such as Florida black bear and scrub jays and plants such as the Etoniah rosemary will have areas in which to live; and provide recreation for the public ranging from long-distance hiking trails to fishing, camping, and hunting.

This property will be managed by the DEP’s Office of Greenways and Trails as an addition to the Cross Florida Greenway.

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 11, Pages 1-35)

RECOMMEND APPROVAL

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Item 12 BOR/FSU/Seminole Boosters, Inc./McDonald Purchase Agreements

REQUEST: Consideration of two purchase agreements to acquire 1.73 acres for the benefit of the Florida Board of Regents and Florida State University from Seminole Boosters, Inc., and Daniel D. McDonald, Jr., et al.

COUNTY: Leon

APPLICANT: Florida State University

LOCATION: Section 35, Township 01 North, Range 01 West

 

 

Board of Trustees

Agenda – September 12, 2000 Page Nineteen

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Item 12, cont.

CONSIDERATION: $1,995,900

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Carlton Brown APPROVED PURCHASE PURCHASE CLOSING

NO. PARCEL ACRES (02/23/00) (02/29/00) VALUE PRICE PRICE DATE

001411 Seminole 1.62 $1,960,200 $1,875,000 $1,960,200 $500,000 * $1,960,200 150 days

Boosters/156 after BOT

(11/23/99) approval

001412 McDonald/96 0.11 $41,950 $ 41,950 ** $ 35,700

1.73 $ 2,002,150 $1,995,900

* The seller acquired the property in 1998 for $475,000 plus in-kind consideration in the form of five years of credit for Golden Chief membership in the Seminole Boosters, Inc. organization. Since acquiring the property the seller has completely renovated the shell of the old warehouse and constructed an office building at a reported total cost of $1,484,480.

** The seller acquired the property in 1995 as part of an estate.

STAFF REMARKS: These acquisitions were negotiated by Florida State University (FSU). Funds for these parcels were appropriated by the 1994-1995 Florida Legislature and are still available.

Improvements on the Seminole Boosters, Inc., (Boosters) property (Parcel 156) consist of a 14,518-square-foot office building, an 8,823-square-foot warehouse, associated parking with ingress and egress aisles and a retention pond. The property is currently being leased by FSU for its Library Technical Services and will continue to be used for this purpose.

The Boosters acquired the property in 1998 in order to secure the property and expedite the relocation of the library building from its former location. It was necessary to relocate the library building in order for FSU to complete its intramural and women’s intercollegiate athletics facilities. The Boosters constructed a building of special purpose design for the specific purpose of checking in, cataloging and storing books designated for the Strozier library and they completely renovated the shell of the old warehouse. Library Technical Services provides acquisitions, binding, cataloging, central accounting, mail distribution and document processing to support all campus libraries. Additionally, it provides remote storage, retrieval and access for 36,000 volumes of materials, a collection that is increasing at an annual rate of 10,000 volumes. The facilities are being leased to FSU until the property is acquired by the state.

The McDonald property (Parcel 96) is unimproved. The long-range plan is to develop the site for student housing. It will be used for parking in the interim.

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.

FSU will provide surveys for both parcels, and a title insurance policy and environmental site assessment for the McDonald parcel prior to closing. The title insurance policy and the environmental site assessment for the Boosters’ parcel will be provided by the seller prior to closing. FSU will reimburse the seller’s costs for the title insurance policy and the environmental site assessment for the Boosters’ parcel.

These parcels will be managed by FSU as a part of the existing campus through a lease to the Florida Board of Regents.

Board of Trustees

Agenda – September 12, 2000 Page Twenty

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Item 12, cont.

These acquisitions are consistent with section 187.201(01), F.S., the Education section of the State Comprehensive Plan.

(See Attachment 12, Pages 1-50)

RECOMMEND APPROVAL

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Item 13 Camel's Garden Purchase Agreements/Cayo Costa Island CARL Project

REQUEST: Consideration of eight purchase agreements to acquire 2.54 acres within the Cayo Costa Island CARL project from Camel’s Garden.

COUNTY: Lee

LOCATION:  Section 18, Township 44 South, Range 21 East; and Section 13, Township 44 South, Range 20 East

CONSIDERATION: $298,000

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Bowen APPROVED PURCHASE PURCHASE CLOSING

NO. PARCEL ACRES (04/11/00) VALUE PRICE PRICE DATE

001401 L18/B10 & 0.30 $44,000 $ 44,000 * $ 36,000 60 days after

L19/B10 BOT approval

001402 L28/B6 & 0.30 $44,000 $ 44,000 * $ 36,000 "

L9/B6

001403 L4/B11 & 0.30 $44,000 $ 44,000 * $ 36,000 "

L5/B11

001404 L2/B7 & 0.30 $44,000 $ 44,000 * $ 36,000 "

L3/B7

001405 L1/B14; 0.44 $60,000 $ 60,000 * $ 48,000 "

L2/B14 &

L19/B15

001406 L6/B11 & 0.30 $42,000 $ 42,000 * $ 34,000 "

L12/B16

001407 L1/B5 & 0.30 $44,000 $ 44,000 * $ 36,000 "

L2/B5

001408 L27/B1 & 0.30 $44,000 $ 44,000 * $ 36,000 "

L20/B7 ____ ______ _______

TOTALS 2.54 $366,000 $298,000

* The property was purchased in two multiple transactions in 1993 for a total of $240,000

STAFF REMARKS: The Cayo Costa Island CARL project is ranked number 6 on the CARL Mega/Multiparcel Project List approved by the Board of Trustees on February 22, 2000, and is eligible for negotiation under the Division of State Lands’ Land Acquisition Workplan. The project contains 1,932 acres, of which 1,909 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves these agreements, 20.46 acres, or one percent, of the project will remain to be acquired.

 

Board of Trustees

Agenda – September 12, 2000 Page Twenty-one

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Item 13, cont.

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 appropriately. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for any title issues that arise prior to closing.

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

A chain of sandy barrier islands, including Cayo Costa and North Captiva, protects the entrance to Charlotte Harbor, one of the largest and most productive estuaries in Florida. Public acquisition of the Cayo Costa Island CARL project will protect the beaches, dunes and hammocks of these islands - the largest barrier islands in natural condition in southwest Florida - while giving the residents and tourists a beautiful natural shore to enjoy for years to come.

These properties will be managed by the Division of Recreation and Parks as a part of Cayo Costa 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 13, Pages 1-70)

RECOMMEND APPROVAL

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Item 14 TNC Assignment of Option Agreement (Worldwide)/Highlands Hammock State Park

REQUEST: Consideration of the acceptance of an assignment of an option agreement to acquire 884.80 acres within the Highlands Hammock State Park, Division of Recreation and Parks’ Additions and Inholdings project from The Nature Conservancy, Inc.

COUNTY: Highlands

LOCATION: Sections 02, 03 and 10, Township 35 South, Range 28 East

CONSIDERATION: $2,388,500 ($2,350,000 for the acquisition; $38,500 for the purchase of the option agreement)

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Rex Waller APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (01/14/00) (12/21/99) VALUE PRICE PRICE DATE

001413 Worldwide 884.80 $2,650,000 $2,250,000 $2,650,000 $7,204,746 * $2,388,500 60 days

after BOT

* Acquired in 1996 as part of a multiple-parcel acquisition. approval

STAFF REMARKS: The Highlands Hammock State Park project has been identified on the Division of Recreation and Parks’ Additions and Inholdings List. This agreement was negotiated by The Nature Conservancy, Inc. (TNC) on behalf of the Division of State Lands (DSL) for the Division of Recreation and Parks (DRP) under the State Parks Additions and Inholdings Preservation 2000 program.

Board of Trustees

Agenda – September 12, 2000 Page Twenty-two

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Item 14, cont.

Pursuant to a multi-party acquisition agreement entered into between the DSL and TNC, TNC has acquired an option to purchase the parcel from Worldwide Investment Group, Inc. After this acquisition is approved, the Board of Trustees will acquire the option from TNC for $38,500, 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. The unimproved platted right-of-ways within the property shall be vacated by Highlands County prior to closing, but contingent upon title to the property vesting in the Board of Trustees. 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 appropriately. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for this and any other title issues that arise prior to closing.

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

The property will be managed by the DRP as a part of the Highlands Hammock State Park.

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 14, Pages 1-35)

RECOMMEND APPROVAL

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Item 15 TNC Assignment of Option Agreement (Myers)/Lake Wales Ridge Ecosystem (Sun Ray) CARL Project

REQUEST:  Consideration of the acceptance of an assignment of an option agreement to acquire 83.77 acres within the Lake Wales Ridge Ecosystem (Sun Ray) CARL project from The Nature Conservancy, Inc.

COUNTY:  Polk

LOCATION:  Section 18, Township 32 South, Range 28 East

CONSIDERATION:  $473,800 ($460,000 for the acquisition; $13,800 for the purchase of the option agreement)

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Waller String APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (4/22/98) (4/22/98) VALUE PRICE PRICE DATE

001414 Myers 83.77 $675,000 $660,000 $475,000* $225,000** $473,800 30 days after

BOT approval

* The approved value of the property for the land only is $475,000. The appraisers considered in their estimates of value approximately $200,000 in sewer connection fee credits associated with the property, which were obtained as a result of the owner providing to Polk County real property, engineering, and other information for a wastewater treatment facility.

** The property was acquired in 1991.

Board of Trustees

Agenda – September 12, 2000 Page Twenty-three

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Item 15, cont.

STAFF REMARKS: The Lake Wales Ridge Ecosystem (Sun Ray) CARL project is ranked number 1 on the CARL Mega/Multiparcel Project List approved by the Board of Trustees on February 22, 2000, and is eligible for negotiation under the Division of State Lands’ (DSL) Land Acquisition Workplan. This project is divided into three ranking groups (Priority, Mega/Multiparcel and Less-Than-Fee) which together contain 43,089 acres, of which 20,426.1 acres have been acquired or are under agreement to be acquired by the Board of Trustees. After the Board of Trustees approves this agreement, 22,579.13 acres or 52 percent of the project will remain to be acquired.

Pursuant to a multi-party acquisition agreement entered into between the DSL and The Nature Conservancy, Inc. (TNC), TNC has acquired an option to purchase this 83.77-acre parcel from Ted Myers and Jeanette I. Myers. After this acquisition is approved, the Board of Trustees will acquire the option from TNC for $13,800, which represents agreed upon compensation to TNC for overhead associated with acquiring the option. The Board of Trustees may then exercise the option and purchase the property. The assignment of option agreement provides that payment to TNC is contingent upon the Board of Trustees successfully acquiring the property from the owner.

All mortgages and liens will be satisfied at the time of closing. Closing on this property is contingent upon the simultaneous closing of the Davis tract, a 70.41-acre tract that is adjacent to this property on the north side. Acquisition of the Davis tract is being presented for consideration on the September 26, 2000 Delegation Report. 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 appropriately. 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 and an environmental site assessment will be provided by the seller prior to closing. The purchaser will provide a survey and will reimburse the seller’s cost of the title insurance policy and the cost of the environmental site assessment, not to exceed $5,000.

The high, sandy, Lake Wales Ridge, stretching south from near Orlando almost to Lake Okeechobee, was originally covered with a mosaic of scrub, flatwoods, wetlands, and lakes. The scrub is unique in the world - it is inhabited by many plants and animals found nowhere else - but it has almost completely been converted to citrus groves and housing developments. The Lake Wales Ridge Ecosystem CARL project is designed to protect the best remaining tracts of this scrub and the ecosystems associated with it, thereby preserving several endangered species and allowing the public to see examples of the unique original landscape of the ridge.

The property will be managed by the Florida Fish and Wildlife Conservation Commission under a single-use concept as a unit of the Lake Wales Ridge Ecosystem.

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 15, Pages 1- 33)

RECOMMEND APPROVAL

 

Board of Trustees

Agenda – September 12, 2000 Substitute Page Twenty-four

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Substitute Item 16 BOR/UF-IFAS/City of Apopka Option Agreement

REQUEST: Consideration of an option agreement to acquire 23.38 acres for the benefit of the Florida Board of Regents and the University of Florida/Institute of Food and Agricultural Sciences from the City of Apopka.

COUNTY: Orange

APPLICANT: University of Florida/Institute of Food and Agricultural Sciences (UF/IFAS)

LOCATION: Section 19, Township 21 South, Range 28 East

CONSIDERATION: $450,000

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Huddleston MacMillan APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (01/20/00) (02/08/00) VALUE PRICE PRICE DATE 001409 City of 23.38 $400,000 $467,600 $467,600 * $450,000 10/20/00

Apopka

* The parcel was acquired as part of a larger tract in 1988.

STAFF REMARKS: The Department of Environmental Protection, Division of State Lands (DSL) negotiated this acquisition. Funds for the acquisition were appropriated during the 1999 Legislative session and are still available.

The parcel is bordered on three sides by the existing UF/IFAS Mid-Florida Research and Education Center property. The purchase of this parcel would prevent the land from being developed for a use that is not compatible with the research operations. Also, the land is ideal for the establishment of the vineyard that will be moved from Leesburg. The Board of Regents and the Legislature in 1986 and 1988 mandated the development of comprehensive centers strategically located throughout the state. These centers would provide critical mass of faculty, facilities and services to increase information and technology transfer capability to clientele, and reduce response time for dealing with state and agriculture industry problems. The proposed acreage will be incorporated with the previously purchased property in order to consolidate the Apopka Research and Education Center, Leesburg Research Unit and the Sanford Research Unit. This will allow for maximum utilization of the site, allowing for development of the soon-to-be initiated teaching programs and consolidation of the research activities at one site.

The property was originally appraised in July 1997, and valued at $205,500. The UF/IFAS attempted to acquire the property from the City of Apopka (City) at that time but no agreement was reached on a purchase price because the City felt the changing market conditions were not reflected in the offer. A second appraisal was obtained in the fall of 1998 to address the changes in the market including the addition of municipal water and sewer lines in front of the property resulting in utilities being directly available to the site. The second appraisal valued the property at $245,000. The UF/IFAS again attempted to acquire the property but was unable to reach an agreement because the City noted the market conditions were changing rapidly and the offer again did not reflect the value. One such change in the market conditions was construction starting on the Western Beltway that is proposed to extend from Interstate 4 in Seminole County southward through west Orange County and connect at Interstate 4 near Walt Disney World. A portion of the beltway is currently under construction from US 441 to State Road 50 and abuts the state-owned property immediately east of the subject parcel. In order to address the impact of the new roadway, two appraisals were obtained in the spring of 2000 and were utilized for this acquisition. The UF/IFAS requested that the DSL negotiate for the parcel and the purchase was subsequently agreed to by the City.

Board of Trustees

Agenda – September 12, 2000 Substitute Page Twenty-five

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Substitute Item 16, cont.

During the meeting at which the acquisition of the subject parcel was negotiated, the UF/IFAS and the City discussed the feasibility of the City being granted an easement on 2.25, more or less, acres of state-owned land west of Binion Road. Subsequent to this meeting, a decision was made to grant a 50-year sublease instead of an easement. While not a condition of the option agreement, the UF/IFAS agreed to initiate a request to grant a 50-year sublease to the City over the UF/IFAS-managed land. The Board of Trustees has delegated authority to the DSL to approve subleases to local governments. Subleases, such as the one being granted to the City, have historically been granted for no consideration when given for a public purpose. The proposed 50-year sublease will give the City the authority to use the land for public recreational purposes.

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 survey, an environmental site assessment and a title insurance policy will be provided by the University of Florida prior to closing.

This property will be managed by the UF/IFAS as part of the Mid-Florida Research and Education Center through a lease to the Florida Board of Regents.

This acquisition is consistent with section 187.201(01), F.S., the Education section of the State Comprehensive Plan.

(See Attachment 16, Pages 1-26)

RECOMMEND APPROVAL

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Substitute Item 17 Brevard County Purchase Agreement/Indian River Lagoon Blueway (Mullet Creek) CARL Project

REQUEST:  Consideration of a purchase agreement to acquire 182 acres within the Indian River Lagoon Blueway (Mullet Creek) CARL project from Brevard County.

COUNTY:  Brevard

LOCATION:  Sections 26, 35 and 36, Township 29 South, Range 38 East

CONSIDERATION:  $1,575,000

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Rex Boyle APPROVED PURCHASE PURCHASE CLOSING

NO. PARCEL ACRES (10/11/99) (10/29/99) VALUE PRICE PRICE DATE

001415 Mullet Creek 182 $1,350,000 $1,575,000 $1,575,000 $1,850,000* $1,575,000 10/02/00

Brevard Co./

Downey

* The County’s purchase price for Mr. Downey’s 50 percent interest.

STAFF REMARKS: The Indian River Lagoon Blueway CARL project is ranked number 9 on the CARL Bargain/Shared Project List approved by the Board of Trustees on February 22,

Board of Trustees

Agenda – September 12, 2000 Substitute Page Twenty-six

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Substitute Item 17, cont.

2000, and is eligible for negotiation under the Division of State Lands’ Land Acquisition Workplan. The project contains 5,178 acres in Phase I, of which 996.95 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 3,999.05 acres or approximately 77 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 appropriately. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for any title issues that arise prior to closing.

Brevard County (County) obtained, by donation, a 50 percent undivided interest in the property in 1995 from George Batchelor. In 1997, the owner of the outstanding 50 percent undivided interest in the property, John Downey, filed a partition action against the County seeking a division of each parties' interest in the property. Only after Mr. Downey established a 100 percent undivided interest in a portion of the property would he be able to move forward with plans to sell or develop the property. The Board of Trustees is also a party to the lawsuit by virtue of a counterclaim for declaratory judgment filed by the County. The County filed the counterclaim as it was interested in as little property as possible ending up in undivided private ownership and wanted to give the state the opportunity to make a claim to whatever portion of the property might be legitimately sovereign. The County raised the issue of the possibility that some of the islands contained spoil or were spoil islands and stated that, as the County was in doubt as to the extent of its ownership, a partition of the property should not be done without a declaratory judgement to determine all the ownership interests in the property. The County also stated that a determination of state-ownership of part of the property could significantly affect a just partition. In addition, the plaintiff claimed ownership of the bottomland of Mullet Creek itself because of the total acreage figures contained in the vesting deeds from the state and the federal government as to the various portions of the property. Review of historical photographs clarified that the islands do not contain sovereign spoil. The state has moved for summary judgement on the issue of its ownership of sovereign submerged lands located adjacent to the property to be partitioned in response to Mr. Downey’s continuing assertion of ownership of the bottomland of Mullet Creek. Pursuant to a mediated settlement agreement in the partition action, Mr. Downey and the County each obtained an appraisal of the property based on the following scenarios: (a) assuming GML (government managed lands) zoning, (b) assuming PUD one unit per acre zoning, (c) existing zoning, and (d) with a determination of transfer development right values under each scenario. The County Board of Commissioners subsequently approved an option agreement for the purchase of Mr. Downey's 50 percent interest for $1,850,000 based on the appraisals obtained during the partition action. This closing will be simultaneous with the closing between the County and Mr. Downey, and will be contingent on the dismissal of the partition action by all parties.

A title insurance policy, a survey and an environmental site assessment will be provided by the seller prior to closing. The purchaser will reimburse the seller for 50 percent of the approved costs associated with the title insurance policy and environmental site assessment, contingent on closing. The purchaser will also reimburse the seller for all approved costs associated with the survey, not to exceed $30,000, contingent on closing.

Public acquisition would 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

Board of Trustees

Agenda – September 12, 2000 Substitute Page Twenty-seven

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Substitute Item 17, cont.

Indian River, and the area is important for many migratory birds as well as for oceanic and estuarine fishes. Additionally, public acquisition would provide natural resource-based recreation in a developing area of Florida.

This property will be managed by the Brevard County Parks and Recreation Department for passive recreation and conservation. Additionally, the County will develop and implement a restoration plan for the property.

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 17, Pages 1-30)

RECOMMEND APPROVAL

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Item 18 Life of the South Corp. v. Board of Trustees and DEP/DEP v. Life of the South Corp., Steve Conner, Magnolia Dunes, and Georgia-Pacific Corp. Partial Settlement Agreement

REQUEST: Consideration of a proposed partial settlement in the case of Life of the South Corporation v. Board of Trustees of the Internal Improvement Trust Fund and Department of Environmental Protection v. Life of the South Corporation, Steve Conner, Magnolia Dunes and Georgia-Pacific Corporation, Seventh Judicial Circuit (Putnam County) Court Case No. 96-5334-CA, through the purchase of 2,292 acres of land in Putnam County under the CARL program.

COUNTY: Putnam

LOCATION: Sections 04 through 08, 17 and 18, Township 11 South, Range 25 East

APPLICANTS: Department of Environmental Protection, Division of State Lands, and Steve W. Conner

CONSIDERATION: $1,477,000

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Arline Rogers APPROVED PURCHASE PURCHASE CLOSING

NO. PARCEL ACRES (06/08/00) (06/08/00) VALUE PRICE PRICE DATE

001418 Conner 2,292 $1,250,000 $1,375,000 $1,375,000 $1,147,000* $1,477,000 09/19/00

$4,311,000**

* Conner’s Purchase Price: Testimony and evidence reveal that Conner’s purchase of a portion of the property was not an arm’s length transaction.

** Life of the South’s Purchase Price: Life of the South purchased 4,375 acres which contained the 2,292 acres currently owned by Conner.

STAFF REMARKS: The Etoniah/Cross Florida Greenway CARL project is ranked number 14 on the CARL Priority Project List approved by the Board of Trustees on February 22, 2000, and is eligible for negotiation under the Division of State Lands’ Land Acquisition Workplan. The project contains 43,564 acres, of which 16,667.2 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, and another agreement in the Etoniah/Cross Florida Greenway project being presented today, 23,292.3 acres or 53 percent of the project will remain to be acquired.

Board of Trustees

Agenda – September 12, 2000 Page Twenty-eight

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Item 18, cont.

In 1966, the Canal Authority of the State of Florida acquired the right to flood land in Putnam and Marion counties as part of the Cross-Florida Barge Canal Project. The Canal Authority obtained a Judgment of Condemnation, which granted the state a perpetual easement to flood a portion of the property "in connection with the construction, operation and maintenance of the Cross-Florida Barge Canal Project." In 1968, the Rodman Dam was completed and the land was flooded by the Rodman Reservoir.

In 1990, Congress and the Florida Legislature adopted related legislation to deauthorize the Cross-Florida Barge Canal and to establish the Cross Florida Greenway in its place. The Cross-Florida Barge Canal was officially deauthorized on January 22, 1991, by adoption of a Resolution by the Governor and Cabinet which agreed, on behalf of the State of Florida, to the terms of the federal deauthorization.

In establishing the Cross Florida Greenway, the 1990 Legislature concluded that "public ownership of and access [to the lands within the former Cross-Florida Barge Canal] are necessary and desirable to protect the health, welfare, safety and quality of life of the residents of this state," and encouraged the acquisition of fee simple title to those portions of the Greenway held in less-than-fee title. Accordingly, section 253.781(3), F.S., states that the Board of Trustees "may acquire by purchase, exchange of other state lands, or the exercise of the power of eminent domain the fee title to lands acquired in less-than-fee title . . . using state, local or federal funds dedicated to acquiring lands for conservation and recreation."

On October 4, 1996, Life of the South Corporation, a Georgia Insurance Company (Life of the South), filed suit against the Department of Environmental Protection (DEP) and the Board of Trustees alleging that the DEP and the Board of Trustees had "taken" its property without just compensation because of continued flooding of its lands without any connection to the "… operation and maintenance of the Cross-Florida Barge Canal Project."

On May 23, 1997, the Circuit Court issued an Order declaring that the state’s flowage easement over Life of the South’s property was extinguished and became null and void upon the deauthorization of the Cross-Florida Barge Canal. On June 23, 1999, Life of the South reached a settlement agreement with the DEP and the Board of Trustees whereby Life of the South agreed to sell and the Board of Trustees agreed to buy 4,375 acres of land, including approximately 2,303 acres included within the former Cross-Florida Barge Canal flowage easement area. The entire 4,375 acres are located within the boundary of the Etoniah/Cross Florida Greenway CARL project. The settlement agreement was approved by the Board of Trustees during its regularly scheduled Cabinet Meeting on August 12, 1999.

While the agreement provided no specific timeframes within which the sale of the property was to close, Life of the South insisted that a closing must occur prior to December 31, 1999, due to pressure it was receiving from its re-insurer to divest itself of the property. The DEP’s contractor, American Home & Title (AHT) began to encounter extensive delays in researching the title to the Life of the South property due to the numerous title issues and the (previously undisclosed) large number of prior separate ownerships contained within the tract. After several proposed closing dates required postponement, AHT contracted with Gullett Title Co. in Palatka, the company that had done the original title search when Life of the South purchased the property in 1995.

On December 10, 1999, Life of the South executed a pay-as-cut timber contract with Georgia-Pacific Corporation (Georgia-Pacific), selling the timber on the property. On December 17, 1999, Life of the South closed on a sale of the property to two separate buyers. The eastern portion of the property (approximately 2,000 acres) was sold to Magnolia Dunes, L.L.C., a

Board of Trustees

Agenda – September 12, 2000 Page Twenty-nine

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Item 18, cont.

limited liability corporation held by the Alford family in Palatka. The western portion of the property (approximately 2,300 acres) was sold to Steve W. Conner, the timber manager of the property during Life of the South’s term of ownership.

Staff immediately filed a Counterclaim against Life of the South in the existing litigation, alleging a breach of the settlement agreement and seeking specific performance of the agreement along with preliminary and permanent injunctive relief. Third-party Complaints were also filed against Georgia-Pacific, Conner and Magnolia Dunes seeking specific performance of the contract with Life of the South, and alleging that Conner and Magnolia Dunes tortiously interfered with the Board of Trustees’ contract with Life of the South. Life of the South countered with the position that the Board of Trustees had either terminated or breached the contract by failing to close. Staff’s motion for preliminary injunction, seeking to enjoin any further timbering, development or conveyance of any portion of the property, pending final resolution of the litigation, was denied by the Circuit Court on July 25, 2000, following four full days of hearings spread over approximately four months. The case is set for trial on the Circuit Court’s February, 2001 trial docket.

The 2,292-acre Conner tract includes an approximately 1,885-acre flowage easement area, all of which is within the Etoniah/Cross-Florida Greenway CARL land acquisition project. The property consists of 1,466 acres of jurisdictional wetlands, including 351 acres of land beneath the Rodman Reservoir. The remaining 826 acres are uplands. This property was identified, mapped, surveyed and appraised for purchase under the CARL program. Acquisition of the Conner acreage will accomplish the multiple objectives of acquiring lands identified for acquisition under the CARL program, settling the ongoing litigation with Conner, securing ownership to lands necessary for the restoration of the Ocklawaha River, and satisfying the legislative directive of acquiring fee simple title to less-than-fee lands within the Cross Florida Greenway (section 253.781(3), F.S.).

Subject to Board of Trustees’ approval, the parties have agreed to the acquisition of 2,292 acres of Conner’s property (including the portion subject to the lawsuit) for the purchase price of $1,477,000. This amount exceeds the appraised value of the property by $102,000, but resolves pending and future litigation, costs, attorneys’ fees, and removes any question of a continuing trespass with damages thereon. If Conner was to proceed with a trespass claim, the Board’s liability could well exceed the $102,000 added to the appraised value to resolve all pending and future litigation.

Some of the more critical terms of the settlement agreement are: (1) purchase of fee simple title to 2,292 acres of land within and adjacent to the Cross Florida Greenway and the Carravelle Ranch Wildlife Management Area for the total purchase price of $1,477,000, in furtherance of the Legislature’s policy of acquiring fee simple title to all less-than-fee title holdings within the Cross Florida Greenway; (2) settlement in full of Board of Trustees’ pending specific performance action arising from Conner’s purchase of this property; (3) a release by Conner of the Board of Trustees and the DEP for any present and future trespass claims arising from the flooding of the property or its use as part of the Cross Florida Greenway; (4) agreement by the parties to bear their own costs and attorneys’ fees; and (5) a deadline of September 19, 2000 to close on the purchase of the property. This recommendation of approval is not to be construed as an admission of liability by either party and is offered only for the purpose of negotiating a settlement of the litigation and potential litigation.

The proposed settlement agreement represents a partial settlement of the overall case. If approved, the Board of Trustees will purchase the 2,292 acres of land now owned by Steve

Board of Trustees

Agenda – September 12, 2000 Page Thirty

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Item 18, cont.

Conner in settlement of the state’s Third-party Complaint against Conner. The remainder of the lawsuit will proceed unless further agreements can be reached between the remaining parties.

This property will be managed by the Office of Greenways and Trails as a part of the Cross Florida Greenway.

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 18, Pages 1-63)

RECOMMEND APPROVAL OF THE ACQUISITION OF 2,292 ACRES OF LAND AND PARTIAL SETTLEMENT OF THE PENDING LITIGATION FOR THE AMOUNT OF $1,477,000 UNDER THE TERMS OF THE PROPOSED SETTLEMENT AGREEMENT.

 

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