The Governor and Cabinet - Florida Department of State

AGENDA

BOARD OF TRUSTEES

DEPARTMENT OF AGRICULTURE & CONSUMER SERVICES

MARCH 13, 2001

Substitute Page

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Item 1 Minutes

Submittal of the Minutes from the July 25, 2000 Cabinet Meeting

(See Attachment 1, Pages 1-2)

RECOMMEND APPROVAL

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Substitute Item 2 Sembler and Sembler, Inc. Aquaculture Facility Lease

SUBSTANTIALLY REWRITTEN

DEFERRED FROM THE FEBRUARY 27, 2001 AGENDA

REQUEST: Consideration of authorization to issue a ten-year sovereignty submerged land aquaculture support facility lease containing 1.3 acres, more or less, and the overlying water column in the Indian River.

COUNTY: Indian River

APPLICANT: Sembler and Sembler, Inc.

Application No. 31-AQ-879

LOCATION: Section 6, Township 31 South, Range 39 East, along the western shore of the Indian River in the Indian River-Malabar to Vero Beach Aquatic Preserve in the town of Sebastian.

CONSIDERATION: $83.80 annually: representing (1) a base annual rental fee of $31.90 per acre or fraction thereof for the parcel including the water column; and (2) an annual surcharge of $20.00, representing $10.00 per acre or fraction thereof, for deposit in the General Inspection Trust Fund pursuant to section 597.010, F.S. Commencing January 1, 2005, the lease fees shall be adjusted every five years, based upon the five-year average change in the Consumer Price Index.

STAFF REMARKS: The applicant is requesting approval of an aquaculture support facility lease to construct and operate an aquaculture facility to grow seed clams, off-load aquaculture products, and moor vessels used in the production of aquaculture products. Sembler and Sembler, Inc., currently produces hard clams on 21.66 acres of sovereignty submerged lands in the Indian River, Indian River County. The lease parcel will be used exclusively to conduct aquaculture activities associated with the company's existing in-water hard clam production facilities and proposed on-shore processing and distribution facility. The requested lease will provide space and a dock for an in-water clam nursery system, vessel dockage, and loading and off-loading activities.

The proposed parcel includes about 1.3 acres of state-owned land extending about 420 feet from the shoreline into the Indian River. The parcel includes the sovereignty submerged lands from the mean high water line to a depth of 4.5 feet, identified as a rectangle approximately 135 feet by 420 feet waterward of the applicant's riparian upland property at Lot 2, Block 1, on the western side of the Indian River. The substrate includes sand shoals, an oyster bar, and seagrass beds. The oyster bar is located parallel to the shoreline and seagrasses are found in patches over the proposed site. The main access dock was designed to extend over and above the oyster bar and the seagrass beds,

Board of Trustees

Dept. of Agriculture & Consumer Services

Agenda – March 13, 2001

Substitute Page Two

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Substitute Item 2, cont.

while the docking facility and the clam nursery system are located further offshore to minimize adverse environmental impacts to seagrass communities.

The proposed parcel is located within the Indian River-Malabar to Vero Beach Aquatic Preserve. Section 258.42 (1)(b), F.S., provides that aquaculture is in the public interest and aquaculture leases may be authorized in aquatic preserves, pursuant to the provision in sections 253.68-253.75. Accordingly, section 253.71(7), F.S., provides that leases granted under this section may contain special lease conditions that provide for "special activities related to aquaculture and resource management". DACS determined that the activities associated with the applicant's request are special activities that are directly related to aquaculture.

Chapter 597.0015, F.S., defines "aquaculture producers" as those persons engaging in the production of aquaculture products and certified under section 597.004, and defines "aquaculture products" as aquatic organisms and any product derived from aquatic organisms that are owned and propagated, grown, or produced under controlled conditions. The applicant is a certified aquaculture producer, and the proposed operations deal exclusively with the production and transport of aquaculture products. Based on this exclusive use, DACS concluded that the proposed facility and operations were directly related to aquaculture.

Additionally, DACS determined that the proposed structures and activities comply with the guidelines established by the Board of Trustees for aquaculture support facility leases.

Sembler and Sembler, Inc., has been associated with the seafood industry in Sebastian for one hundred years and has been involved in commercial hard clam aquaculture for the last 16 years: operating four aquaculture leases in Indian River County, hard clam nursery systems, a processing facility, and distributing aquacultural products. The applicant requested the additional parcel to conduct aquaculture activities associated with the company's planned new aquaculture facility. Currently, on-shore operations are conducted in privately-held facilities that are leased by the company, and leasing represents uncertainty in the company's long-term business plan. The additional parcel will allow the company to link components that are critical to the success of its business plan.

Section 253.68(2)(b), F.S., provides that "it shall be the policy of the state to foster aquaculture development when the aquaculture activity is consistent with state resource management goals, environmental protection, proprietary interests, and the state aquaculture plan." Additionally, section 253.68, F.S., provides that the Board of Trustees may lease submerged lands to which it has title for the conduct of aquaculture activities and grant exclusive use of the bottom and the water column for either commercial or experimental purposes.

The proposed project is located in the Indian River-Malabar to Vero Beach Aquatic Preserve. Section 258.42(1)(b), F.S., provides that aquaculture is in the public interest and that aquaculture leases may be authorized in aquatic preserves.

The application was noticed, pursuant to section 258.70, F.S. No objections were filed for the application.

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

Board of Trustees

Dept. of Agriculture & Consumer Services

Agenda – March 13, 2001

Substitute Additional Page Three

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Substitute Item 2, cont.

(See Attachment 2, Substitute Pages 1-51)

RECOMMEND APPROVAL SUBJECT TO SPECIAL LEASE CONDITIONS

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Substitute Additional Item 3 Establishment of Guidelines for the Issuance of Aquaculture Support Facility Leases in Aquatic Preserves

REQUEST: Consideration to establish interim guidelines to issue sovereignty submerged land aquaculture support facility leases in aquatic preserves.

COUNTY: Statewide

APPLICANT: Department of Agriculture and Consumer Services

STAFF REMARKS: The Board of Trustees adopted chapter 18-21, F.A.C., to set forth guidelines for issuing aquaculture leases. Upon the transfer and delegation of authority to manage aquaculture on sovereignty submerged lands to the Department of Agriculture and Consumer Services (DACS) on July 25, 2000, DACS initiated rule revision. Since this transfer occurred, it has become apparent to staff that further delineation is necessary due, to the maturation of the clam industry. Over the past five years, the clam producing industry has grown to the point that support facilities are needed to continue an adequate and safe flow of products to the market place. Aquaculture support facilities are the next logical step in the farm-to-market chain. Without aquaculture support facilities, farmers will be hindered by inadequate infrastructure to support the growth of the industry. Appropriate planning and design is necessary for the environmentally-sound and economically-viable clam industry to continue. As the Board of Trustees continues to review and develop policy for leasing aquaculture support facilities, these guidelines will assist DACS when applications are received for aquaculture-related activities. These guidelines will serve as interim policy while DACS amends chapter 18-21, F.A.C.

Aquaculture support facilities shall be defined as those structures which are used in the production, harvesting, handling, grading, processing, packaging or shipping of aquacultural products. These support facilities may include hatchery and nursery cultivation systems; intake and discharge pipes, pumps, docks for loading and off-loading aquaculture products; and mooring vessels used by aquaculture producers in planting, growing, harvesting, and transporting aquacultural products.

Currently, an applicant for an aquaculture lease must submit an application to DACS, pursuant to section 253.69, F.S. When evaluating applications for aquaculture support facility leases, DACS recommends that additional guidelines be used for review purposes. Accordingly, DACS proposes to establish the guidelines found in the backup for reviewing and making recommendations for aquaculture leases for the purposes of constructing and operating aquaculture support facilities.

Upon approval of the Board of Trustees, applications for aquaculture support facility leases located in aquatic preserves will be handled as required in section 253.67-253.75, F.S., and chapter 18-21, F.A.C., along with the guidelines contained in the backup of this item.

Board of Trustees

Dept. of Agriculture & Consumer Services

Agenda – March 13, 2001

Substitute Additional Page Four

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Substitute Additional Item 3, cont.

Applications for aquaculture support facility leases requested outside of aquatic preserve areas will be handled as set out in subsections 253.67-253.75, F.S., and chapter 18-21, F.A.C.

Aquaculture is defined in section 597.0015, F.S., as "the cultivation of aquatic organisms." Additionally, aquaculture products are defined as "aquatic organisms and any product derived from aquatic organisms that are owned and propagated, grown, or produced under controlled conditions." An environment with controlled conditions is one in which an aquaculture producer is altering or manipulating some part of the life cycle of an organism in a way that is different from what occurs naturally. Altering or manipulating can be defined as, but is not limited to, speeding up biological occurrences, increasing densities, placing organisms in artificial containers, or using artificially-bred stock.

Section 258.42(1)(b), F.S., provides that aquaculture is in the public interest and that aquaculture leases may be authorized in aquatic preserves. Aquatic preserves were created by the Florida Legislature in Part II of chapter 258, F.S. The Legislature set aside aquatic preserves "for the benefit of future generations." The Legislature further requires, pursuant to section 258.42, F.S., that, "The Board of Trustees of the Internal Improvement Trust Fund shall maintain such aquatic preserves subject to the following provisions:

(1)(a) No further sale, lease, or transfer of sovereignty submerged lands shall be approved or consummated by the trustees except when such sale, lease, or transfer is in the public interest.

(b) For purposes of this subsection, aquaculture is in the public interest and aquaculture leases may be authorized in aquatic preserves pursuant to the provisions in ss.253.68-253.75."

(See Additional Attachment 3, Pages 1-4)

RECOMMEND APPROVAL OF THE ESTABLISHMENT OF GUIDELINES TO ISSUE SOVEREIGNTY SUBMERGED LAND AQUACULTURE SUPPORT FACILITY LEASES IN AQUATIC PRESERVES

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