AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

JUNE 12, 2001

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Item 1 Minutes

Submittal of the Minutes from the April 10, 2001, and April 24, 2001 Cabinet Meetings.

(See Attachment 1, Pages 1-26.)

RECOMMEND APPROVAL

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Substitute Item 2 Moody/Martin Offer Acceptance/Land Sale/DOC/Decatur County, Georgia Property

REQUEST: Consideration of acceptance of an offer submitted by Ron D. Moody and Ronald J. Martin in the amount of $346,000 for a 330.6-acre parcel (Parcel C) of state-owned land consisting of unimproved land in Decatur County, Georgia and leased to the Department of Corrections.

COUNTY: Decatur County, Georgia

Deed No. 30791

LOCATION: Land District 21 located in all or part of the following Land Lots: 342, 343, and 344

CONSIDERATION: $346,000 to be deposited in the Florida Department of Corrections Grants and Donations Trust Fund

STAFF REMARKS: The Board of Trustees acquired the Apalachee Correctional Institution property in Decatur County, Georgia (Georgia property) through a series of transactions in the 1920s and 1930s for a nominal amount of money. From 1983 through 1997 the property was under sublease to Prison Rehabilitation Industrial Diversified Enterprises (PRIDE) from the Department of Corrections (DC). While under sublease to PRIDE, portions of the property were timbered. In 1997, PRIDE requested release from the sublease and since that time the property has not been actively managed by the DC. The property has been divided into three separate parcels, as it is not contiguous. At this time, only the sale of Parcel C is being proposed.

Chapter 2000-166, Laws of Florida, provides that DC, with approval of a majority of the Board of Trustees, may sell, trade, exchange or otherwise dispose of the Georgia property; the proceeds are to be directed to DC's Grants and Donations Trust Fund; and subject to specific appropriations, the proceeds are to be used to acquire, construct, equip, maintain or improve DC's correctional facilities.

The Land Acquisition and Management Advisory Council approved the surplusing of the Georgia property on February 11, 1999. Pursuant to section 253.111, F.S., state agencies and the Decatur County Georgia Board of County Commissioners were noticed that the property was available for sale. Notice of the availability of the property was also given to the property owners within 500 feet, in accordance with sections 253.115, F.S., and no objections were received.

The property was appraised by Clay B. Ketcham, MAI, SRA on February 14, 2001. The market value for the parcel found by Mr. Ketcham for the Parcel C land and timber was $417,008 ($119,508 timber value). Greg Crumley, MAI, SRA, ARA provided an additional appraisal of the parcel on February 8, 2001. Mr. Crumley found the market value of Parcel

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to be $275,000 (including timber value). The appraisals were reviewed by William E. Carlton, III, MAI, SRA on February 26, 2001. Mr. Carlton found that the land value provided by Mr. Ketcham was acceptable and the combined land and timber value provided by Mr. Crumley was acceptable.

As set forth in sections 18-2.020(2)(b), F.A.C., "Disposal of surplus land shall be competitively bid except that parcels five acres or less in size or with a market value of $100,000 or less may be sold by any reasonable means, including open or exclusive listing with real estate dales services, competitive bid, auction, and negotiated direct sales." Bid packages were mailed on May 4, 2001, to over 130 potential purchasers with the bids due on May 25, 2001, at 11:00 AM.

Listed below are all offers on Parcel C received in order of the bids received:

RECOMMEND APPROVAL OF THE OFFER RECEIVED FROM RON D. MOODY AND RONALD J. MARTIN IN THE AMOUNT OF $346,000

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Substitute Item 3 Florida Gas Transmission Company Utility Easements

REQUEST: Consideration of a request for (1) five 50-year non-exclusive utility easements; and (2) two three-year temporary utility easements to Florida Gas Transmission Company for a natural gas transmission pipeline.

COUNTIES: Seminole, Gilchrist, Citrus, Lake

Easement Numbers 30721, 30722, 30723, 30724, 30725, 30786 and 30787

APPLICANT: Florida Gas Transmission Company (FGT)

LOCATION: Seminole State Forest - Sections 22, 24, 25, 27, 28 and 34, Township 19 South, Range 28 East, and Sections 19, 20, 21, and 30, Township 19 South, Range 29 East; Annuteliga Hammock - Sections 15, 22, 27, and 34, Township 20 South, Range 18 East; Florida Nature Coast Trail - Section 18, Township 10 South, Range 15 East; Lower Wekiva River State Preserve - Section 39, Township 19 South, Range 29 East; and Lecanto Sandhills - Section 21, Township 19 South, Range 18 East

CONSIDERATION: Easement fees to be determined by appraisal and deposited pursuant to sections 253 and 259, F.S.; and mitigation/compensation to be determined by the affected managing agency.

STAFF REMARKS: FGT is expanding its existing underground natural gas pipeline system by adding approximately 167 miles of pipeline, additional compression and appurtenances in Mississippi, Alabama and Florida. The purpose of the expansion is to meet increased demand for natural gas, largely for electrical power generation. The project will produce environmental benefits of cleaner air from burning natural gas instead of coal or oil, and the

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reduced risk of oil spills through surface transportation and handling of refined oil. In particular the project's Sanford Lateral will provide natural gas necessary to repower the Florida Power and Light Company Sanford power plant, increasing electrical output and decreasing air pollutant emissions. Also, the project's Loop G will provide additional gas necessary to support the Tampa Electric Company Bayside conversion from coal to natural gas.

The Phase 5 expansion will cross five state-owned parcels. The first is the Florida Nature Coast Trail managed by the Department of Environmental Protection (DEP), Division of Recreation and Parks (DRP) under Board of Trustees' Lease Number 4193. The second is the Lower Wekiva River State Preserve, also managed by DRP under Board of Trustees' Lease Number 2950. The third is Seminole State Forest, managed by the Department of Agriculture and Consumer Services, Division of Forestry (DOF) under Board of Trustees' Lease Number 3936. The fourth is Annuteliga Hammock, also managed by DOF under Board of Trustees' Lease Number 3316. The last property is the Lecanto Sandhills, recently acquired by the Board of Trustees and designated for management by DOF.

The Board of Trustees will grant to FGT two initial three-year temporary construction easements based on survey sketches of the pipeline route. Once the pipeline is installed, FGT will provide as-built surveys of the final pipeline route and will execute 50-year easements for each of the properties crossed by the pipeline.

Pursuant to section 18-2.018, F.A.C., the decision to authorize the use of Board of Trustees' owned uplands requires a determination that such use in not contrary to the public interest.

In siting linear facilities, owners and operators must avoid locating on state-owned natural resource lands unless no other practical and prudent alternative is available; must take steps to minimize impacts to such lands; and must provide to the managing agency that measure of additional money, land, or services necessary to offset the actual adverse impacts reasonably expected to be caused by the construction, operation and maintenance of the facility. These requirements are included as special conditions in the temporary easement instruments.

The Florida Nature Coast Trail is a linear facility adjacent to State Road 26, which runs perpendicular to the pipeline and, thus, cannot be avoided. FGT proposes to bore under the trail to avoid impact. The bore will commence to the north of the trail, just outside the fence line, and end on the south side of State Road 26. The land use type is open land, and no wetlands or streams were identified on the property. Minor surface disturbance within the trail boundary from equipment movement may occur; however, all disturbed areas will be restored to as good or better condition. The appraised value of the easement, as determined by DEP, Bureau of Appraisal (Appraisal), will be provided. DRP has requested no additional compensation due to lack of impacts to the trail.

The project's Sanford Lateral crosses the Lower Wekiva River State Preserve. The pipeline is located at the extreme southern end of the property, twenty feet north of and along an existing fence line. The easement is collocated with an existing firebreak and the State Road 46 right-of-way. Thus, the pipeline will not cause habitat fragmentation, is located in a previously disturbed area, should not cause impacts to sensitive areas, and will not disrupt management activities or resource-based activities. The primary land use type is a firebreak within a hardwood-conifer mixed community. The Federal Energy Regulatory Commission's suggested alternative to move the pipeline to the south side of State Road 46 was not recommended because: impacts to the park would still occur because of space needed for Wekiva River directional drilling; the alternative would restrict gas flow by requiring the installation of four

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ninety degree bends in the pipeline; and environmental impacts would be similar. The appraised value of the easement, as determined by Appraisal, will be provided.

To install the gas pipeline as proposed, several structures and "pseudo-structures" will have to be moved and then replaced when the gas pipeline project is completed. These include gopher tortoise burrows, approximately 1.1 miles of barbed wire fence, approximately 100 yards of hiking trail, a staff residence area, a kiosk at the trail head, a parking area and associated fencing, and an honor payment system structure. DRP has estimated the cost of moving and replacing these items at approximately $25,000. As mitigation, DRP has also requested that FGT restore a three-mile fence line/fire lane, a portion of Sulfur Spring, and a 20-acre pasture in Rock Springs Run State Reserve. DRP's estimated cost for these projects is approximately $87,000.

The Sanford Lateral also crosses the Seminole State Forest. On the Seminole State Forest property, the pipeline easement is collocated and overlapping with an existing FGT pipeline right-of-way. A DRP suggested alternative of moving the pipeline to the south side of State Road 46 was not recommended because: impacts would simply be shifted to Rock Springs Run State Park and other state-owned lands and would not be within an existing utility corridor, and environmental impacts would be similar. The pipeline is located at the extreme southern end of the state forest along State Road 46 and FGT's existing 12-inch lateral. Thus, the pipeline will not cause habitat fragmentation; is located in a previously disturbed area; should not cause impacts to sensitive areas; and will not disrupt management activities or resource-based activities. The primary land use type is pasture and a hardwood-conifer mixed community. The appraised value of the easement, as determined by Appraisal, will be provided. In addition to the easement fee, FGT will provide the following mitigation projects: removal of a tramway and associated culverts that cross Blackwater Creek and its floodplain; removal of a road and culvert that crosses Palm Springs Run; plugging ditches installed for previous agricultural operations; and ecosystem restoration. DOF has also made specific restoration recommendations including restoration of workspace and permanent easement areas. FGT has also agreed to designate for this portion of the project a state forest liaison and to participate in a pre-construction meeting and periodic coordination meetings with state forest staff.

Loop G of the pipeline project crosses the Withlacoochee State Forest/Annuteliga Hammock. Thirty feet of the pipeline easement and the pipeline are located within an existing Florida Power Corporation (FPC) power line easement. The remaining twenty feet of pipeline easement is located on state lands between the FPC power line right-of-way and the proposed 400-foot Suncoast 2 right-of-way. The opposite (west) side of the FPC corridor has an existing FGT pipeline and numerous residences. The pipeline is located as far within the FPC right-of-way as possible and along the extreme west side of the state forest. Thus, the pipeline will not cause habitat fragmentation; is located in a previously disturbed area; should not cause impacts to sensitive areas; and will not disrupt management activities or resource-based activities. The primary land use type is utility corridor adjacent to longleaf pine-xeric oak community. The appraised value of the easement, as determined by Appraisal will be provided. In addition to the easement fee, DOF has requested, and FGT will provide, compensation in the form of the purchase of one acre of replacement land for each acre of permanent easement and restoration of the permanent easement as agreed with DOF. FGT has also agreed to designate for this portion of the project a state forest liaison and to participate in a pre-construction meeting and periodic meetings with state forest staff.

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Loop G also crosses the recently acquired Lecanto Sandhills parcel. This acquisition was raised late in the siting process, but FGT showed that impacts to this parcel could not be avoided or further minimized. Like the Annuteliga Hammock crossing, the pipeline is collocated with an existing FPC power line easement. The pipeline is located on the east side of and as far within the FPC easement as possible so as to impact a shorter and more narrow segment of state-owned lands than would be impacted by utilizing the west side of the FPC easement. Although only recently acquired, FGT and DOF have been able to assess the likely impacts to the parcel and have developed a compensation proposal. Compensation includes purchase of one acre of replacement land for each acre of permanent easement and restoration of the permanent easement as agreed with DOF. FGT has also agreed to designate for this portion of the project a state forest liaison and to participate in a pre-construction meeting and periodic coordination meetings with state forest staff.

As set forth above, applicants for linear facilities are required to compensate the Board of Trustees for utility easements. DEP staff has contracted for appraisals of the easement areas; however, additional time is required for review and approval of the appraisals. FGT is under time constraints requiring that construction start by August 2001. For this reason, FGT is requesting approval of the easements subject to final approval of the appraisals by Appraisal. Easement fees will be deposited pursuant to Chapters 253 and 259, F.S.

On May 17, 2001, the Acquisition and Restoration Council approved a determination that FGT's pipeline request complies with the Board of Trustees' Linear Facilities Policy and that, pursuant to section 259.101(7)(a), F.S., the crossings of the Florida Nature Coast Trail, and Lecanto Sandhills are compatible with the intent for which the lands were purchased.

A consideration of the status of the local government comprehensive plan was not made for this item. DEP has accepted the applicant's claim of preemption by regulation under the Federal Energy Regulatory Commission process.

(See Attachment 3, Pages 1-117)

RECOMMEND APPROVAL SUBJECT TO RECEIPT OF EASEMENT ACCEPTABLE TO DEP, BUREAU OFAPPRAISAL

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Substitute Item 4 Moncrief Option Agreement/Wekiwa Springs State Park

REQUEST: Consideration of an option agreement to acquire six acres within the Wekiwa Springs State Park, Division of Recreation and Parks' Additions and Inholdings project from the Russell L. Moncrief Trust and the Kathleen K. Moncrief Trust.

COUNTY: Seminole

LOCATION: Section 39, Township 19 South, Range 29 East

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CONSIDERATION: $578,200

* Approved value does not include business enterprise and furniture, fixtures and equipment.

** Owned since 1984

STAFF REMARKS: The Wekiwa Springs State Park project has been identified on the Division of Recreation and Parks' Additions and Inholdings List. This agreement was negotiated by the Division of State Lands (DSL) on behalf of the Division of Recreation and Parks (DRP) under the State Parks' Additions and Inholdings Preservation 2000 program.

All mortgages and liens will be satisfied at the time of closing. The property is currently being used as a recreational park with canoe and cabin rentals. DRP is purchasing the real estate only. Seminole County has agreed to contribute $121,800 toward the acquisition but will not retain any interest in the real property. On May 8, 2001, the Seminole County Board of County Commissioners met and agreed to enter into this joint acquisition. The next meeting of the Seminole County Board of County Commissioners will be on June 12, 2001. Based on their approval of May 8, 2001, it is expected that the option agreement will be executed by Seminole County. Execution of the contract is contingent upon Seminole County approval.

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, a survey, an environmental site evaluation and, if necessary, an environmental site assessment will be provided by the seller prior to closing.

The Wekiva River, which has been placed under the management protection of the State Park system, is distinguished by the relative purity of its waters and the recreational opportunities it provides. It is a designated Outstanding Florida Water, an aquatic preserve, and a nationally designated Wild and Scenic River. There has been a long-standing effort by the state, the St. Johns River Water Management District, local governments and others to protect the Wekiva River and its basin. Public access to the river is limited. Acquisition of Katie's Landing will ensure continued availability of an established access to the northern reaches of the river and provide the park with a canoe access area.

The property will be managed by DRP as an addition to the Wekiwa Springs 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 4, Pages 1-32.)

RECOMMEND APPROVAL

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Substitute Item 5 Harmon Bros. Rock Company, Inc. Option Agreement/Fakahatchee Strand Preserve State Park

REQUEST: Consideration of an option agreement to acquire 115.56 acres within the Fakahatchee Strand Preserve State Park, Division of Recreation and Parks' Additions and Inholdings project from Harmon Bros. Rock Company, Inc.

COUNTY: Collier

LOCATION: Section 12, Township 52 South, Range 29 East

CONSIDERATION: $1,378,000

*The property was acquired between 1978 and 1983.

STAFF REMARKS: The Fakahatchee Strand Preserve State Park project has been identified on the Division of Recreation and Parks' Additions and Inholdings List. This agreement was negotiated by the Division of State Lands on behalf of the Division of Recreation and Parks (DRP) under the State Parks' Additions and Inholdings Preservation 2000 program.

All mortgages and liens will be satisfied at the time of closing. The property is currently an active limerock mine. DRP has agreed to allow the removal of the limerock inventory and reclamation pursuant to the provisions of permit 76P-1090 issued by the U.S. Army Corps of Engineers for a period of up to three years after the date of closing. Above ground storage tanks currently in use will be removed within the three-year time period. The seller will be responsible for any cleanup of hazardous materials as a result of the removal. The seller has agreed that the obligation to cleanup and monitor the property shall survive the closing. The Board of Trustees will provide the follow-up for the cleanup of the storage tanks. There is a metal shop/office building that will stay on the property. No value was given for the building by the appraiser.

All mortgages and liens will be satisfied at the time of closing. A one-acre parcel on the southwest portion of the property is encumbered with a seven-year reservation, which was given in lieu of a life estate. The value of this one-acre, seven-year reservation is $9,100. An oil and gas reservation, in favor of J. Currey Oil Company and reserved in April 1949, encumbers 114.856 acres of the property. There is also a Florida Power and Light easement on the southwest corner of the property. The appraiser has determined that the oil and gas reservation and the Florida Power and Light easement do not have any adverse impact on value. 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, a survey, an environmental site evaluation and, if necessary, an environmental site assessment will be provided by the purchaser prior to closing.

Fakahatchee Strand is a highly pristine strand swamp rich in listed species and critical to the survival of the Florida panther. For this reason, every effort is made to locate public-use facilities in suitable locations. The Harmon Mine is a highly disturbed site that, upon restoration, will allow for facility development and recreational activities at the south end of

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Substitute Item 5, cont.

the preserve without infringing on the preserve's natural qualities. The seller will be responsible for completing restoration of the site pursuant to his permits. The property also contains a portion of the historic Jane's Scenic Drive.

The property will be managed by DRP as an addition to the Fakahatchee Strand Preserve 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 5, Pages 1-70)

RECOMMEND APPROVAL

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Substitute Item 6 National Audubon Society, Inc. Option Agreement/Kissimmee Prairie Preserve State Park

REQUEST: Consideration of an option agreement to acquire 7,307.61 acres within the Kissimmee Prairie Preserve State Park, Division of Recreation and Parks' Additions and Inholdings project from the National Audubon Society, Inc.

COUNTY: Okeechobee

LOCATION: Section 01, Township 34 South, Range 33 East; Sections 24, 25 and 36, Township 33 South, Range 33 East; Sections 19, 20, 29 through 32, Township 33 South, Range 34 East; and Sections 04, 05, 06, Township 34 South, Range 34 East

CONSIDERATION: $2,740,000

* Approximately 6,070 acres were purchased in 1980 for $3,550,950.

STAFF REMARKS: The Kissimmee Prairie Preserve State Park project has been identified on the Division of Recreation and Parks' Additions and Inholdings List. This agreement was negotiated by the Division of State Lands (DSL) on behalf of the Division of Recreation and Parks (DRP) under the State Parks' Additions and Inholdings Preservation 2000 program.

During final negotiations with the National Audubon Society (Audubon), an adjacent property owner expressed an interest in purchasing Sections 04, 05 and 06, Township 34 South, Range 34 East (approximately 800 acres). The adjacent property owner offered the National Audubon Society approximately twice the approved value per acre and agreed to place the property under a conservation easement. Audubon has agreed to pay additional appraisal costs, if any, to determine the value of the approximately 800 acres. They have also agreed to the deduction of 100 percent of approved value for the acreage from the purchase price. Terms of the proposed conservation easement and any other management issues that will affect the purchase property, due to the deduction of the 800 acres, will be coordinated between Audubon and DRP, the future managing agency, to mutually resolve management and

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resource issues prior to closing. If the Board of Trustees approves this acquisition, DSL staff will prepare an amendment to the contract to remove the acreage and require Audubon to cause the adjoining owner to place an appropriate conservation easement in favor of The Nature Conservancy (TNC) on the removed acreage.

All mortgages and liens will be satisfied at the time of closing. The property is encumbered with a conservation overlay that was placed on the property by Okeechobee County. This was done after seller purchased the property. This factor caused the property value to decrease from seller's original price. There is also a conservation easement granted to TNC on a portion of the property. TNC has agreed to grant a release of the conservation easement at 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.

Audubon has agreed, and the contract will be amended to provide, that the net proceeds from the sale of the property shall be deposited into a restricted account to be managed as part of Audubon's endowment funds. Income from this restricted account will be distributed for use annually consistent with Audubon's overall endowment policies. Income will be used to fund resource management projects at Kissimmee Prairie Preserve through grants to the Division of Recreation and Parks and deployment of Audubon staff, and to fund education and science programs within the greater Kissimmee River ecosystem.

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

The addition of the Ordway Sanctuary to the Kissimmee Prairie Preserve State Park allows unified management of a contiguous block of habitat. Located along the east bank of the Kissimmee River, the preserve occurs in the heart of Florida's grassland-palmetto country. Long noted for its natural range and grazing qualities as well as for its frequent fires, these prairie lands represent a part of Florida's natural and cultural heritage that has all but disappeared. The preserve is critical for the survival of many rare prairie-adapted species. These species include the Florida grasshopper sparrow, snail kite, Florida sandhill crane and crested caracara. The preserve may prove to be the largest and highest quality tract of habitation in the world for the endangered Florida grasshopper sparrow.

The property will be managed by DRP as an addition to the Kissimmee Prairie Preserve 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 6, Pages 1-23)

RECOMMEND APPROVAL

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Item 7 Waterside Holdings, Inc./Tidal Investments, Inc./D's Design of Tallahassee, Inc./Equity Management and Realty of Tallahassee, Inc. Option Agreements/Apalachicola Bay CARL Project

REQUEST:  Consideration of four option agreements to acquire five acres within the Apalachicola Bay CARL project from Waterside Holdings, Inc., Tidal Investments, Inc., D's Design of Tallahassee, Inc., and Equity Management and Realty of Tallahassee, Inc.

COUNTY:  Franklin

LOCATION:  Section 35, Township 09 South, Range 07 West; and Section 02, Township 10 South, Range 07 West

CONSIDERATION:  $636,750

* Acquired May 1997.

** Acquired September 1989 and July 1993 in multiple lot transactions.

*** Acquired August 1998. Not an arms length transaction.

STAFF REMARKS: The Apalachicola Bay CARL project was ranked number 15 on the CARL Priority Project List approved by the Board of Trustees on September 12, 1991, and was removed from the 1992 CARL list because the project was 90 percent complete. The project is funded under the Division of State Lands' Land Acquisition Workplan as a 90 percent complete project, and is eligible for acquisition pursuant to section 259.032(8), F.S. This project contains 41,989 acres, of which 37,833.18 acres have been acquired or are under agreement to be acquired.  After the Board of Trustees approves these agreements, 4,150.82 acres, or ten 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.

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

The Apalachicola River and the bays at its mouth are some of the most significant natural areas in the southeast. The exceptionally productive Apalachicola Bay supports one of the largest sport and commercial fisheries in Florida -- producing up to 90 percent of Florida's oysters -- and it is the economic base of Franklin County. This proposed acquisition is one of the few remaining available upland properties adjacent to the Nick's Hole area, which is an embayment on the north side of St. George Island. This area is the most productive area per acre on the entire Apalachicola Bay, which is one of the most productive, if not the most productive, estuarine ecosystems in the northern hemisphere on the basis of productivity per acre. The Nick's Hole area is also the most susceptible area to pollution because of a shallow sill at its mouth that limits flushing, thus making it prone to the accumulation of pollutants. Public

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Item 7, cont.

acquisition of the Apalachicola Bay CARL project will help protect the water quality and biological resources of this sensitive area by conserving undeveloped bayfront land on St. George Sound. Acquisition of these parcels, which adjoin state-owned land, will further this effort by preventing development in this sensitive area.

These properties will be managed by DEP's Office of Coastal and Aquatic Managed Areas as a part of the Apalachicola National Estuarine Research Reserve.

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 7, Pages 1-55)

RECOMMEND APPROVAL

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Item 8 Leto Brothers Family Partnership LTD Assignment of Option Agreement/Highlands Hammock State Park Inholdings and Additions Project

REQUEST: Consideration of the acceptance of an assignment of an option agreement to acquire 249.3 acres within the Highlands Hammock State Park Additions and Inholdings project from the Leto Brothers Family Partnership LTD.

COUNTY: Highlands

LOCATION: Sections 05 and 08, Township 35 South, Range 28 East

CONSIDERATION: $780,200 ($760,000 for the acquisition, $20,200 for the purchase of the option agreement)

STAFF REMARKS: The Highlands Hammock State Park Addition 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.

Pursuant to a multi-party acquisition agreement entered into between DSL and TNC, TNC has acquired an option to purchase this 249.3-acre parcel from the Leto Brothers Family Partnership LTD. After this acquisition is approved, the Board of Trustees will acquire the option from TNC for $20,200 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. The assignment of option agreement further provides that in no event will the purchase

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Item 8, cont.

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

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

The proposed property, which will be managed by DRP as part of Highlands Hammock State Park, is a part of what was originally a CARL project that was added to the State Park Additions and Inholdings Land Acquisition List in 1995, due to lack of funds in the CARL Program. The property is good quality hammock on the north end and pasture extending south. The hammock is similar to the habitat within the park and has resource connection with the park, including hydrological connection. It also represents half of a notch in the south boundary of the park. Land uses in the notch have a greater effect on resources in the park than lands further south. The southern extension of the property will help tie the old park on the north with the newer park lands on the south, thereby helping to create an upland wildlife and people corridor between the two.

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 8, Pages 1-35)

RECOMMEND APPROVAL

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Item 9 TNC Assignment of Option Agreement (St. Joe)/DACS/DOF/Tate's Hell State Forest Additions and Inholdings Project

REQUEST: Consideration of the acceptance of an assignment of an option agreement to acquire 3,450.6 acres within the Tate's Hell State Forest Additions and Inholdings project by the Department of Agriculture and Consumer Services, Division of Forestry under the Preservation 2000 program from The Nature Conservancy, Inc.

COUNTY: Franklin

APPLICANT: Department of Agriculture and Consumer Services, Division of Forestry (DOF)

LOCATION: Sections 03 through 05, 07 through 10, 17, 18, 20 and 21, Township 08 South, Range 06 West

CONSIDERATION: $6,492,000 ($6,417,000 for the acquisition, $75,000 for the purchase of the option agreement)

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Agenda - June 12, 2001

Page Thirteen

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Item 9, cont.

* Seller has owned property more than five years.

STAFF REMARKS: This acquisition was negotiated by The Nature Conservancy, Inc. (TNC) for DOF under its Preservation 2000 Additions and Inholdings program.

Pursuant to a multi-party acquisition agreement entered into between the Division of State Lands (DSL), DOF and TNC, TNC has acquired an option to purchase this 3,450.6-acre parcel from St. Joe Timberland Co., Inc., (St. Joe), a Florida corporation. After this acquisition is approved, the Board of Trustees will acquire the option from TNC for $75,000, 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. Preliminary title work indicated that a number of parties hold fractional oil, gas and mineral rights to areas within the subject property. Four rights-of-way are included on the property, along with two drainage ditch easements and one drainage and borrow pit easement to the state, plus three power line and distribution easements to Florida Power Corporation. The appraisers have determined that the easements, right-of-way and oil, gas and mineral reservations do not have a negative impact on the value of the property. 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. A survey will be provided by the purchaser prior to closing.

This property, which will be managed by DOF as part of Tate's Hell State Forest, is adjacent to the Tate's Hell State Forest and will consolidate state forest boundaries in the area, and provide access and improve overall management of the forest. This purchase connects hydrologic and wildlife corridors between state-owned lands. The property will be managed for natural resource conservation and outdoor recreation activities under a multiple-use management regime.

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

(See Attachment 9, Pages 1-42)

RECOMMEND APPROVAL

Board of Trustees

Agenda - June 12, 2001

Substitute Page Fourteen

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Substitute Item 10 Wald Acquisition Agreement/East Everglades CARL Project

DEFERRED FROM THE APRIL 24, 2001 AGENDA

DEFERRED FROM THE MAY 15, 2001 AGENDA

REQUEST: Consideration of authorization to acquire a 100 percent interest in 18.41 acres (120 lots) within the East Everglades CARL project from Morton L. Wald.

COUNTY: Miami-Dade

LOCATION: Section 17, Township 54 South, Range 39 East

CONSIDERATION: $816,000

STAFF REMARKS: The East Everglades CARL project is ranked number 4 on the CARL Mega/Multiparcel Project List, as the list appears in the 2000 Interim CARL Report approved by the Board of Trustees on October 24, 2000, and is funded under the Division of State Lands' Land Acquisition Workplan. The area known as the East Coast Buffer covers 59,088 acres. Of this, 2,189 acres will be protected by mitigation and 33,817 acres are of a lower priority, including land owned by local governments and acres that may not need to be acquired. Of the remaining 23,082 acres proposed for acquisition, 18,415.10 acres have been acquired. After the Board of Trustees approves this acquisition, 4,648.49 acres, or 20 percent of the area, will remain to be acquired.

The East Coast Buffer consists of approximately 59,088 acres of marshes, reservoirs, and groundwater recharge areas in Palm Beach, Broward and Miami-Dade counties. However, the most significant aspect of the East Coast Buffer is its role in restoring the Everglades. In 1992, Congress authorized the U.S. Army Corps of Engineers (COE) to conduct a restudy of the Central and Southern Florida Project. The reconnaissance report for this restudy was completed in 1994 and COE incorporated the East Coast Buffer into its analysis, referring to the area as the "Water Preserve Areas." The Final Restudy Report and Programmatic Environmental Impact Statement for the restudy were released on April 7, 1999, for final public review and comment. The report received a favorable review by the Department of Environmental Protection (DEP) and other agencies and was submitted to Congress on July 1, 1999, under the title of the Comprehensive Everglades Restoration Plan (CERP). Congress authorized the CERP, as part of the Water Resource Development Act of 2000, to provide the framework for Everglades restoration. Further detailed study of the Water Preserve Area project component has been authorized by Congress, and a final detailed plan will be prepared by September 2001.

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

The subject land is needed for the CERP's Bird Drive Basin project component. This is one of the 68 project components that comprise the CERP. The CERP puts more water in the

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Agenda - June 12, 2001

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Substitute Item 10, cont.

Everglades and reduces groundwater flows coming out of the Everglades to prevent flooding of the adjacent private lands. The Bird Drive Basin project is integral to the overall Everglades restoration effort by providing several hydrologic functions.

· It will replace groundwater recharge which is critical to the West Dade Wellfield and the drinking water supply for Dade County.

· It will reduce seepage from the Everglades National Park's buffer areas.

· It will complement flood protection in the basin.

· It will provide water supply deliveries to the South Dade Conveyance System and Northeast Shark River Slough for Everglades National Park restoration.

The Bird Drive Basin project component accomplishes these functions by capturing runoff from the western C-4 Basin and accepting advanced treated inflows from the West Miami-Dade Wastewater Treatment Plant into the recharge area. A seepage management system will be constructed around the east and southern perimeters of the recharge area to allow water supply deliveries to the South Dade Conveyance System and Northeast Shark River Slough.

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

As provided for in the acquisition agreement, on December 14, 2000, the Governing Board of the District adopted Resolution 2000-105, requesting the Board of Trustees' purchase price for the parcel, reimbursement of 100 percent of its pre-acquisition costs and reimbursement of 100 percent of its closing costs. Pursuant to the acquisition agreement, the pre-acquisition and closing costs will be reimbursed from CARL incidental expense funds. The District's resolution contains all of the assurances required by the acquisition agreement.

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

The Central and Southern Florida Project was authorized 50 years ago to provide flood protection and fresh water to south Florida. This project accomplished its intended purpose and allowed people to more easily live on the land; however, it did so at a tremendous ecological cost to the Everglades. While the population has risen from 500,000 in the 1900s to more than 6 million today, the number of native birds and other wildlife have dwindled, and some have vanished. The Water Resources Development Acts of 1992 and 1996 provided COE with the authority to review the current Central and Southern Florida Project. COE was

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Substitute Item 10, cont.

asked to develop a comprehensive plan to restore and preserve South Florida's natural ecosystem while enhancing water supplies and maintaining flood protection. Resulting from this effort, the CERP calls for a series of water system improvements over more than 20 years, with an estimated cost of $7.8 billion. The CERP will incorporate a number of restoration projects already underway. It will be the most ambitious ecosystem restoration effort ever undertaken in the United States. Its fundamental goal is to capture most of the fresh water that now flows unused to the Atlantic Ocean and the Gulf of Mexico, and to deliver it to the natural system, agricultural areas or urban areas, when needed.

The East Coast Buffer portion of the East Everglades CARL project will be managed by the District in conjunction with COE Everglades restoration projects. As local sponsor for the restoration projects, the District is required to hold a title interest sufficient to meet COE certification requirements. While COE would prefer the sponsor to hold fee title, section 259.101(3)(g), F.S., states that title to lands acquired with P2000 funds under the CARL program must vest in the Board of Trustees. The acquisition agreement includes a provision whereby the Board of Trustees will convey to the District an easement, consistent with section 253.034(4), F.S., for any lands acquired under this agreement that are to become part of a COE-approved Everglades restoration project. DEP staff is currently working with COE and the District to develop an easement sufficient for COE certification. COE will require the easement to include a statement that the land interest will not be impaired during the life of the project, and that COE is granted an irrevocable right to enter the project lands for the purpose of constructing, inspecting, completing, operating, repairing, maintaining, replacing or rehabilitating the projects. In the event that COE determines that fee title by the District is required to meet certification requirements, statutes would need to be amended to permit entities other than the Board of Trustees to hold title to lands acquired with P2000 funds under the CARL program.

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

(See Attachment 10, Pages 1-58)

RECOMMEND DEFERRAL

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Item 11 TPL Acquisition Agreement (Long Branch Farms)/Jennings State Forest Additions Project

REQUEST: Consideration of authorization to acquire an undivided 50 percent interest in 1,830 acres within the Jennings State Forest Additions Project from The Trust for Public Land.

COUNTY: Clay

APPLICANT: Department of Agriculture and Consumer Services, Division of Forestry (DOF)

LOCATION: Sections 01, 09, 10, 11 and 12, Township 04 South, Range 23 East

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Agenda - June 12, 2001

Page Seventeen

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Item 11, cont.

CONSIDERATION: $1,841,212.50 (Board of Trustees' 50 percent share of $3,660,000 purchase price together with 50 percent share of $22,425.00 in closing costs)

STAFF REMARKS: The Jennings State Forest Additions Project is eligible for funding under the DOF Preservation 2000 Additions and Inholdings Program.

On April 24, 2001, the Board of Trustees authorized staff to enter into an acquisition agreement with the St. John's River Water Management District (District) to acquire the Long Branch Farms parcel within the Jennings State Forest Addition project in accordance with section 259.041(17), F.S., utilizing the procedures set out in section 373.139, F.S. Pursuant to the terms of the acquisition agreement, the District contracted to purchase the Long Branch Farms ownership at 95 percent of the approved value. Title to the property acquired will vest jointly, with the Board of Trustees holding an undivided 50 percent fee simple interest and the District holding an undivided 50 percent fee simple interest. The Board of Trustees' purchase price will be 50 percent of the contract price negotiated by the District plus 50 percent of the costs incurred in the purchase of the property.

As provided for in the acquisition agreement, on May 9, 2001, the Governing Board of the District adopted Resolution No. 2001-28, requesting the Board of Trustees' share of the purchase price for the Long Branch Farms parcel. DOF will fund its share of the acquisition costs for this parcel from its Preservation 2000 funds. In addition, the agreement provides for the District to be reimbursed by DOF 50 percent of all costs associated with its attempt to acquire lands within the project, including all pre-acquisition and closing related costs, with the pre-acquisition costs and certain closing costs being reimbursed even if the District is unsuccessful in acquiring any property. The agreement authorizes DOF to reimburse these costs. If the Board of Trustees approves this purchase, the District will proceed to closing with title to be vested jointly, with the District and the Board of Trustees with each holding an undivided 50 percent interest.

Pursuant to the Acquisition and Ownership Agreement, District staff has obtained and reviewed appraisals; negotiated a purchase contract with The Trust for Public Land and secured the approval of its Governing Board. The Governing Board of the District adopted, and has executed the Agreement of Purchase and Sale document. The District has provided DEP's Division of State Lands and DOF with a board resolution requesting reimbursement of the Board of Trustees' share of the purchase price. DEP staff is seeking approval for DOF's share of the purchase price for each parcel the District contracted to purchase.

A portion of this property is encumbered by a four year timber harvesting agreement which covers select merchantable pine timber in specified areas, additionally, an encumbrance exists for an easement allowing the removal of sand and clay from a portion of the property. This easement expires December 31, 2001. The effects of these encumbrances have been reviewed by the managing agency, and they are willing to manage the property subject to these encumbrances.

This property provides a desirable management and habitat adjacent to Jennings State Forest, areas currently managed by DOF. The property would provide for a more manageable boundary configuration in this area, and contains important watershed and ravine systems that

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Page Eighteen

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Item 11, cont.

compliment the existing state forest. The landscape is a mosaic of natural pine, pre-merchantable pine plantations, and mixed hardwood hammock located on historical sandhill and flatwood community types.

The property will be managed by DOF as part of the Jennings State Forest.

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

(See Attachment 11, Pages 1-81)

RECOMMEND APPROVAL

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Item 12 Georgia Southern & Florida Railroad Company Purchase Agreement/ Palatka to Lake Butler Project/P2000 Rails-to-Trails Program

REQUEST: Consideration of a purchase agreement to acquire approximately 611.27 acres (48.6 miles) of abandoned railroad right-of-way within the Palatka to Lake Butler project under the Preservation 2000 Rails-to-Trails program from Georgia Southern and Florida Railroad Company.

COUNTIES: Union, Bradford, Clay and Putnam

APPLICANT: Department of Environmental Protection, Office of Greenways and Trails (OGT)

CONSIDERATION: $1,375,000 (If the closing occurs on or before June 30, 2001, the purchase price will be $1,375,000. If the closing occurs after June 30, 2001 but prior to August 31, 2001, the purchase price will be $1,475,000)

* Adjusted for title defects and encroachments.

** The property was acquired by the seller in numerous deeds at different times; therefore, it is difficult to determine

the purchase price.

STAFF REMARKS: The Rails-to-Trails program was created by a resolution of the Governor and Cabinet on March 4, 1986, and enacted into law by the Florida Legislature in 1987. The greenways and trails acquisition program began as a mechanism to acquire abandoned railroad rights-of-way for the purpose of developing recreational trails in Florida. In 1991, the program was expanded to include additions to the Florida National Scenic Trail (FNST). In 1996, with amendments to chapter 260, F.S., the program was expanded to include the acquisition of all greenways and trails (as broadly defined in the law).

This acquisition was the seventh negotiated acquisition under the Rails-to-Trails program and was to be the fifth acquired under the Florida Preservation 2000 program. The corridor consists of approximately 48.6 miles of abandoned railroad right-of-way through four counties, beginning approximately two miles north of the St. Johns River in Palatka and extending northwesterly through Florahome, Keystone Heights and Hampton to State Road 238 in Lake

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Item 12, cont.

Butler. This segment is a key component of a 208-mile greenway connecting the Okeefenokee Swamp to Teneroc State Reserve via the Marjorie Harris Carr Cross Florida Greenway. It will provide an essential link for the FNST, one of only eight national scenic trails in the country. The Florida Trail Association and the U.S. Forest Service recently completed the preferred routing study for the FNST. In that study, the Palatka to Lake Butler corridor was identified as the only viable route for the FNST in this area of the state.

In 1995, the Suwannee River Water Management District initiated a greenway visionary program to explore the feasibility of creating a regional greenway network in the Suwannee River valley. The Palatka to Lake Butler project would provide an excellent opportunity to connect this regional system with other parts of the state.

On March 28, 1996, the Board of Trustees approved the acquisition of 650.78 acres of abandoned railroad right-of-way (corridor) from Georgia Southern and Florida Railway Company (GSFR) for $924,000. At the time of the Board of Trustees' approval, the corridor had an appraised maximum approved value of $1,500,000 that was adjusted downward to $1,181,000 as a result of title deficiencies and encroachments cut out of the transaction.

Between March of 1996 and June of 2000, the transaction was working its way through the closing process. The closing of this transaction was protracted due to a number of complicated title, survey and environmental issues that were discovered during the performance of due diligence.

At the time of final preparation for closing, the Division of Recreation and Parks (DRP), the proposed manager of the property, learned of the opportunity to apply for federal TEA-21 funds (formerly known as ISTEA funds) for trail development. One of the requirements to qualify for these funds is that the property be acquired for 100 percent of the current appraised value. Negotiated purchase prices at less than appraised value are permitted if the seller is told the appraised value and assured that the property is not under the threat of condemnation. In this case, where the price was negotiated without this disclosure, the seller had to be advised and given the opportunity to terminate the contract because the current appraised value was not being paid.

On June 22, 1999, the Board of Trustees approved the use of federal acquisition procedures when acquiring lands for which federal TEA-21 funds would be sought (federalized projects). This project is now considered federalized because it is contemplated that DRP will apply for TEA-21 federal funds. If the application is approved, it is anticipated that DRP will receive approximately $7,000,000 over a three to five year period. These funds will be used to pave and develop the corridor into a recreational trail.

To qualify this acquisition for TEA-21 funding the Division of State Lands (DSL) had to offer to pay the current fair market value of the property or give the seller the right to terminate the existing contract with the assurance that the power of eminent domain would not be exercised. In an effort to qualify for the federal funding and hold to the $924,000 purchase price, DSL staff unofficially notified GSFR of staff's intent to seek federal funding with the required disclosure on appraisals and of the seller's right to terminate the contract if the below appraised value purchase price was not acceptable. GSFR indicated that if such a notice were sent they would not agree to proceed with the transaction under its current terms and would elect to terminate the contract. GSFR's primary concern was the age of the 1994 appraisals and suggested that appraisals reflecting current fair market value should be obtained for negotiation purposes. In lieu of sending the official notice, DSL, OGT and GSFR agreed to a re-negotiated transaction based on updated appraisals to ascertain the current fair market value of

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Item 12, cont.

the property. One condition added to the transaction was GSFR's desire to retain an exclusive fiber optic and communication easement over the corridor. The appraisers considered the proposed easement in the update of the appraisal.

Upon receipt of the updated appraisals, DSL staff entered into negotiations with GSFR. They were provided the required notice that the offer being tendered was less than appraisal and if not accepted, we would not pursue eminent domain to acquire the property. While the final negotiated purchase price is $451,000 over the contract purchase price from 1996, it provides the only available mechanism to qualify for approximately $7,000,000 in federal TEA-21 funds.

The purchase agreement being presented to the Board of Trustees today will constitute a novation of the 1996 agreement. GSFR will retain an exclusive fiber optic and communications easement over the entire corridor and will convey title to the corridor to the Board of Trustees. Since all the due diligence and problem resolution has been performed the transaction can close by June 30, 2001 if the Board of Trustees approves the agreement.

The Office of Greenways and Trails had a Level I Environmental Site Assessment (ESA) performed on the property. The Level I report indicated five areas that needed further testing. OGT obtained a Level II ESA on the five sites. The Level II testing revealed that only two areas were contaminated. One area was contaminated by the nearby, closed Santa Fe municipal solid waste landfill that was operated by Bradford County. This site is being monitored and the March 2000 Semiannual results continue to show a stable (if not somewhat diminishing) groundwater plume along the western boundary of the closed facility. The other area was contaminated from the nearby Downtown Lake Butler petroleum site that is being remediated under the State Petroleum Cleanup Program. Completion of cleanup efforts at this site is estimated at 10 years. The report concluded that none of the detected contaminants should prevent use of the rail corridor for its intended purpose.

Recent testing of the rail corridor has revealed the presence of arsenic in the soil beneath the corridor. This is not uncommon with rail corridors and the levels present are not inconsistent with previous rail corridor acquisitions. The concentration levels of the arsenic were found to be primarily concentrated in the center of the rail corridor and rapidly dissipating within 20 feet of the centerline of the corridor. The soil samples indicated, for the most part, that the arsenic level was below the maximum acceptable level for recreational use. While arsenic is a contaminant, it is relatively stable. The managing agency is aware of the condition and will use all appropriate measures, which may include paving and placing clean fill on the soil to cap and contain the contaminant, to best protect the health and safety of the public. These measures will be determined through the normal park planning and design process.

A review of the survey of the corridor indicated several encroachments of various types. Among the encroachments are pine trees planted by timber companies, mobile homes, porches and fences. As a part of its normal procedures, DSL cuts areas with these types of encroachments from the acquisition and proceeds to closing; however, in this case, GSFR will not agree to retain title to the encroachment areas. OGT staff approached the Rails to Trails Conservancy (RTC) about it taking title to the encumbered areas. RTC has agreed to take title to the cut out areas directly from GSFR at the time of the closing with the Board of Trustees.

The property will be managed as the Palatka to Lake Butler Rail-Trail by DRP through OGT.

This trail will pass through 11 small towns, cross eight creeks and pass within one mile of 11 lakes. It will provide opportunities for bicycling, hiking and equestrian activities, as well as alternative transportation use.

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Agenda - June 12, 2001

Page Twenty-one

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Item 12, cont.

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

(See Attachment 12, Pages1-32)

RECOMMEND APPROVAL

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Item 13 Jordan Exchange Agreement/Donation/Cross Florida Barge Canal Property/Withlacoochee Cross Florida Greenway Connector Project

REQUEST: Consideration of an exchange agreement to acquire 6.27 acres, which contemplates the acceptance of a donation of 0.46 acre, within the Withlacoochee Cross Florida Greenway Connector project under the Preservation 2000 Greenways and Trails Program from Joseph T. Jordan, Trustee, and Scott Jordan, in exchange for two parcels of surplus Cross Florida Barge Canal property totaling 6.17 acres.

COUNTY: Citrus

APPLICANT: Department of Environmental Protection, Office of Greenways and Trails (OGT)

LOCATION: Section 02, Township 17 South, Range 18 East

CONSIDERATION: Value-for-value (The Board of Trustees will compensate the Jordans for the $2,160 difference in value.)

* Purchased as a part of a larger parcel in 1989.

**Acquired in 1970 through Eminent Domain with several other parcels.

STAFF REMARKS: The Withlacoochee Cross Florida Greenway Connector project has been identified on the Department of Environmental Protection (DEP), OGT approved acquisition list. This acquisition was negotiated by the Division of State Lands (DSL) on behalf of OGT under the Preservation 2000 Florida Greenways and Trails program.

On August 12, 1999, the Board of Trustees approved the surplusing of the two Cross Florida Barge Canal (Barge Canal) parcels. This exchange was contemplated at the time the parcels were surplused. Pursuant to sections 253.111 and 253.783, F.S., the parcels were offered to Citrus County, which responded with no interest. Pursuant to section 253.783, F.S., after Barge Canal parcels are offered to a county they are next offered to the original owner or heirs. The surplus parcels were originally purchased by the Canal Authority via eminent domain from Sam Jordan. Joseph T. Jordan and Scott Jordan are heirs of Sam Jordan.

Pursuant to section 253.783(2)(b), F.S., the sale of the surplus parcels to the heirs of Sam Jordan was advertised in three newspapers of general circulation along the canal route and a

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Item 13, cont.

local newspaper in Citrus County. The advertisements ran February 15, 2001, through March 2, 2001.

The transaction between the Board of Trustees and the Jordans will be a value-for-value exchange. The approved value of the Board of Trustees-owned parcel (Parcel Two, also referred to as Tracts B1 & B2) is $38,840. The approved value of the Jordan-owned parcel (Parcel One, also referred to as Tract A) is $41,000. At closing, the Board of Trustees will pay the Jordans $2,160, which is the difference in value between the parcels being exchanged. Along with the conveyance of Parcel One, the Jordans will, at no additional cost, convey a 1.34-acre easement to the Board of Trustees for ingress and egress. In addition, at the time of closing the Jordans will donate approximately 0.46 acre to the Board of Trustees, which together with Parcel One and the easement, will provide the state access to Cross Florida Greenway lands and the Withlacoochee River. Along with the conveyance of Parcel Two, the Board of Trustees will convey a 0.23-acre easement over a portion of the donated parcel back to the Jordans for ingress and egress to Parcel Two.

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 DEP the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them as appropriate. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for any title issues that arise prior to closing.

A survey, a title insurance policy, an environmental site evaluation and, if necessary, an environmental site assessment, will be provided by the Board of Trustees prior to closing for Parcel One. The survey, title insurance policy and environmental site assessment for Parcel Two, if desired, will be provided by the Jordans prior to closing.

Parcel One will be managed by OGT as part of the Marjorie Harris Carr 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 13, Pages 1-29)

RECOMMEND APPROVAL

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Substitute Item 14 H. Smith, Inc., et al v. BOT Settlement Agreement

REQUEST: Consideration of a request to approve a Settlement Agreement in the case of H. Smith, Inc. et al. v. The Board of Trustees of the Internal Improvement Trust Fund, Seventh Judicial Circuit in and for St. Johns County, Division 55, Case No. 99-2235, involving an exchange of perpetual easements for marshlands above the mean high water line to which ownership is disputed.

COUNTY: St. Johns

APPLICANT: Department of Environmental Protection (DEP)

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Agenda - June 12, 2001

Substitute Page Twenty-three

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Substitute Item 14, cont.

LOCATION: Section 27 and Section 34, Township 5 South, Range 29 East near and around Marshall Creek in the Guana River Marsh Aquatic Preserve, and the Guana, Tolomato, and Matanzas National Estuarine Preserve

CONSIDERATION: All remaining unsurveyed marsh lands within Section 27 and Section 34, Township 5 South, Range 29 East located in St Johns County totaling 119 acres, more or less.

STAFF REMARKS: H. Smith, Inc. (Smith) filed suit against the Board of Trustees in 1999 to quiet title to upland marsh. This property consists of marshlands west of the Tolomato or North River in St. Johns County. The marshlands are located approximately between the mean high water line (MHWL) of the Tolomato River and an upland meander line set by United States government surveys in 1854. The lands west of the marsh were conveyed by four separate interfering Spanish land grants beginning in 1786. Pursuant to terms of the Treaty of Amity, Settlements, and Limits entered into between the United States and the Kingdom of Spain on February 22, 1819, the United States ratified all confirmed Spanish land grants. All four grants were ratified by the United States between 1825 and 1828.

At issue in the litigation is whether the four separate Spanish land grants were intended to extend to the MHWL of the Tolomato River and include upland marshes west of the river. The legal descriptions of the Spanish land grants state that the bank or shore of the Tolomato River is the boundary of the grant; however, sketches of those descriptions included with the grant appear to exclude the marsh. Title to the marsh would have been granted to the state of Florida, pursuant to the Swamp Lands Act of 1850, if judicial interpretation of the four separate Spanish land grants concludes marsh was not intended to be conveyed; otherwise, Plaintiffs in this case can deraign title to the upland marsh to a 1926 decree pro confesso quieting title in a predecessor in interest.

No action was taken by the Board of Trustees until the suit to quiet title was filed by Smith in 1999. Settlement negotiations were undertaken, were attended by representatives of each party and approved by staff. A settlement agreement was reached, subject to approval by the Board of Trustees.

The Settlement Agreement consists of an exchange. Smith will convey to the Board of Trustees, by quitclaim deed, any interest it may have in approximately 119 acres of upland marsh. The Board of Trustees will convey to Smith, by quitclaim deed, any interest it may have in approximately 19.5 acres of uplands lying west of the edge of the marsh. The upland to be conveyed by the Board of Trustees is not marshland, but is located within the meander line set by the U.S. government. This upland acreage would not have been included in the Swamp Lands Act deed conveying the adjacent acreage to the state of Florida. The Board of Trustees will grant two perpetual easements across the marsh for boardwalks with terminal platforms. Both boardwalks will be open to the public. The Settlement Agreement contemplates that each easement granted by the Board of Trustees will contain enough area to provide sufficient upland interest for a lease of adjacent sovereignty submerged lands. Both easements will grant Smith riparian rights in the easement area. Any requests by Smith to lease adjacent sovereignty submerged lands will be subject to aquatic preserve rules as set forth in chapter 18-20 F.A.C.

The proposed area for the boardwalk across the northern portion of the property is approximately 10,800 square feet (6' x 1,800'), with approximately 9,600 square feet on sovereignty submerged land. The proposed area for boardwalk across the southern portion of the property is approximately 26,700 square feet (6' x 4,450'), with approximately 7,500 square feet on sovereignty submerged land. Over half of the boardwalk across the southern portion of the property is located in section 35, Township 5 South, Range 29 East. Title to

Board of Trustees

Agenda - June 12, 2001

Substitute Page Twenty-four

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Substitute Item 14, cont.

this section is not disputed and is not a part of the Settlement Agreement. In both the northern and southern portions of the property, the easement area will be confined to the area needed for the boardwalk, except where more shoreline is needed to satisfy the current 10 to 1 ratio of shoreline linear feet to square feet pre-empted sovereignty submerged land. Neither boardwalk will have docking or marina facilities for motorized vessels; however, it is contemplated that one of the boardwalks will provide a launch area for kayaks, canoes, or other similar small, non-motorized vessels. Any easement will require Smith to provide environmental education at the boardwalk area, as currently set forth in the Marshall Creek Development of Regional Impact Order (DRI) for the property.

Also within the Settlement Agreement is an understanding that staff will provide reasonable cooperation to Smith for the purpose of obtaining any mitigation credits that it may be able to associate with the conveyance of any interest it may have in the marsh. Pursuant to the Settlement Agreement, Smith will also apply for a Notice of Proposed Change in the DRI. The current DRI issued to Smith does not include the approximately 19.5 acres of upland property that is not marsh land, but is located within the meander line set by the U.S. government. Title to this land is not included within the approximately 119 acres of marshland to be conveyed to the Board of Trustees. This Settlement Agreement is contingent upon approval by the Board of Trustees, and will not go forward until such time.

It is in the Board of Trustees' best interest, in light of the uncertainty surrounding title to the disputed lands to approve this Settlement Agreement. The Board of Trustees will gain clear title to approximately 119 acres of upland marsh property in exchange for two easements that will provide viewing boardwalks for public access to the marsh area. The Board of Trustees will also retain the right to impose lease fees for structures situated on submerged land adjacent to easement areas. The alternative to approving this Settlement Agreement is further costly litigation and trial, the results of which are uncertain. In view of the foregoing reasons, staff recommends approval of the Settlement Agreement. The Board of Trustees is authorized to execute easements of state-owned land under section 253.03, F.S. The Board of Trustees is authorized to exchange lands under section 253.42, F.S.

(See Attachment 14, Pages 1-10)

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Item 15 Fiber Optic Cables Status Report on Zone Establishment and Fee Assessment/Notice of Proposed Rulemaking to Amend Chapter 18-21, F.A.C.

REQUEST: Consideration of (1) a report on the status of establishing zones for installation of fiber optic cables on sovereignty submerged lands in southeast Florida and assessment of fees; and (2) a request to publish a Notice of Proposed Rulemaking for amendments to chapter 18-21, F.A.C., regarding establishment of zones and assessment of fees.

COUNTY: Statewide

APPLICANT: Department of Environmental Protection (DEP)

STAFF REMARKS: DEP is proposing to amend chapter 18-21, F.A.C., Sovereignty Submerged Lands Management, to establish zones and fees for the placement of fiber optic cables (FOCs) on sovereignty submerged lands in the coastal waters of Southeast Florida.

Board of Trustees

Agenda - June 12, 2001

Page Twenty-five

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Item 15, cont.

DEP is also undertaking a related rulemaking effort to amend chapter 62-341, F.A.C, to establish a new environmental resource noticed general permit streamlining the regulatory approval of fiber optic cables in coastal waters.

Background

DEP presented a report to the Board of Trustees on March 13, 2001, on the status of establishing preferred zones for fiber optic cables in the coastal waters of Florida and assessing fees for such use of sovereignty submerged land. At that time, the Board of Trustees directed DEP to continue with developing the concepts of zones, assessment of appropriate fees, and streamlining the approval process. The Board of Trustees also asked DEP to make Florida the fastest, cheapest, most FOC-friendly state, but to balance this appeal with protection of Florida's environment and natural resources. Since then, staff has developed draft amendments to chapter 18-21, F.A.C., and presented them for discussion and public comment at two public workshops, held on April 20 and 25, 2001. The proposed amendments were revised and presented to a follow up public workshop held May 22, 2001. Comments and suggestions from those workshops were considered in developing the attached draft rule. DEP is now proposing to publish a Notice of Proposed Rulemaking, including the text of the proposed rule amendments, in the Florida Administrative Weekly (FAW). The Notice of Development of Proposed Rules was published in the February 16, 2001, issue of the FAW.

Proposed Revisions to Chapter 18-21, F.A.C.

Zones:

The proposed amendments to chapter 18-21, F.A.C., include provisions for an expedited form of authorization and reduced fees for offshore FOCs located in three zones in the coastal waters of Southeast Florida. According to the FOC industry, approximately four to twenty-four new cables may be installed in the coastal waters of Florida over the next ten years, with a most likely need of only eight cable landings on the southeast coast. Originally, five zones throughout the coastal waters of Florida were considered. As part of the rulemaking effort, the number of zones was initially reduced to four and then to three, all located in the coastal waters of Palm Beach and Miami-Dade Counties. The southeast coast is the preferred landing area in Florida for international FOC projects linking Florida to the Caribbean region, Central America, and South America.

The proposed zones were selected based on a consideration of the extent of and gaps in the hardbottom and reef communities in the vicinity of the zones, proximity to state and federal managed areas, critically eroding beaches and potential sand sources, recreational and commercial fishing areas, and anchorages. The proposed zones were also established based on a consideration of where existing cables and conduits are located. The establishment of zones will serve as a management tool for the Board of Trustees, helping to avoid and minimize the uncontrolled siting of offshore fiber optic cable lines coming into Florida, and the resulting cumulative impacts. The zones will be five- to ten-mile wide areas, in recognition that cables need some distance between them - especially in deeper waters - and to ensure that there are sufficient numbers of upland property owners to avoid anti-competitive restrictions for the cable companies in selecting potential terrestrial routes.

Two zones are currently being proposed in the coastal waters of Palm Beach County; a third zone is proposed in the coastal waters of northern Miami-Dade County. More zones may be considered in the future. Interested parties can petition the Board of Trustees to establish additional zones or modify existing ones. That process would also require Board of Trustees' approval, and amendments to chapter 18-21, F.A.C.

Board of Trustees

Agenda - June 12, 2001

Page Twenty-six

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Item 15, cont.

Forms of Authorization:

Individual easements will be issued for installation of FOCs and conduits. An easement gives the grantee the authorization for the specified purpose, and does not grant exclusive use of the entire easement area. For other easements, where a subsequent use is deemed compatible with a use authorized by an easement, a subsequent easement can be issued that may cover all or a portion of the same area. However, we do not expect to issue overlapping easements for FOCs because each will only be approximately 10 feet wide, or wide enough to provide the protection needed for that cable. Conflicting uses, such as easements for borrow sites, will not be allowed to overlap, and will be established some distance apart.

For projects located within a zone, the authority to grant the sovereign submerged lands authorization would be delegated to DEP staff. Upon issuance of the appropriate environmental resource permit authorizing construction of an FOC project, a temporary letter of consent would be issued initially, with a condition that an easement be executed within six months of installation. Projects outside the zones would be considered of heightened public concern and, therefore, would require Board of Trustees' consideration and authorization, as they have in the past.

Fees:

Application fees of $15,000 would be required for all FOC project easement applications, whether located inside or outside of a zone, anywhere in the territorial sea. The annual easement fee for projects located within a zone would be $100 per cable or stand-alone conduit. For projects outside zones and inside Palm Beach, Broward or Miami-Dade Counties, the annual easement fee would be based on a formula using the appraised value of the upland property; these fees are expected to be much higher, approximately $800,000 per year, depending on the upland landing site. The easement fees will be deposited into the Internal Improvement Trust Fund and DEP may, in its annual legislative budget request, include a request for those same funds to be used by the Office of Coastal and Aquatic Managed Areas for projects related to the study and protection of coral reefs.

Background of Proposed Noticed General Permit (Chapter 62-341, F.A.C.)

To expedite regulatory permitting for all offshore FOCs, DEP is proposing to add a new environmental resource noticed general permit in chapter 62-341, F.A.C., for installation of FOCs and associated conduits located in the territorial seas, including connections to manhole landings in the first uplands reached (referred to as a beach manhole). This new general permit will also establish and provide: limitations on allowable impacts; "best management practices" for directional drilling and cable laying operations; inspection and reporting requirements; mitigation requirements; and water quality and habitat protections. The general permit includes requirements for avoidance and minimization of impacts to environmental resources, and specifically requires that potential sand source areas be identified and avoided. The proposed general permit will be a pre-issued permit and will cover the installation, operation and maintenance of cables and conduits. A general permit allows activities to commence 30 days after a complete notice is submitted to DEP. This rulemaking will not require approval by the Board of Trustees; however, it will continue through the rulemaking process in conjunction with the related proposed amendments to chapter 18-21, F.A.C.

A draft of the proposed rule amendments to chapter 18-21, F.A.C., is attached. The comments and suggestions from the April and May 2001 workshops were considered in developing the final draft rule. Upon approval of the proposed amendments by the Board of Trustees, a Notice of Proposed Rulemaking, including the text of the proposed rule, on FOCs will be published in the FAW and distributed to those on the interested parties mailing list.

Board of Trustees

Agenda - June 12, 2001

Page Twenty-seven

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Item 15, cont.

The notice will include an opportunity for a public hearing, which could possibly be held in late August 2001. If a public hearing is requested resulting in changes to the proposed rule, staff anticipates returning to the Board of Trustees for final rule adoption possibly in late October 2001.

(See Attachment 15, Pages 1-12)

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