AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

JUNE 26, 2001

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Item 1 Minutes

Submittal of the Minutes from the May 15, 2001 Cabinet Meeting.

(See Attachment 1, Pages 1-17)

RECOMMEND APPROVAL

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Substitute Item 2 Gate Maritime Properties, Inc., Lease/Easement

REQUEST: Consideration of an application for (1) a five-year sovereignty submerged lands lease containing 23.82 acres, more or less; for a proposed lay berthing facility; (2) a 10-year private easement for a 1.74-acre dredged access channel; and (3) authorization for the severance of 68,000 cubic yards of sovereign material.

COUNTY: Duval

Lease No. 160031722

Private Easement No. 30640

Application No. 16-183955-001-EE

APPLICANT: Gate Maritime Properties, Incorporated

LOCATION: Sections 20 and 29, Township 01 South, Range 28 East, in the St. Johns River, Class III Waters, within the local jurisdiction of the city of Jacksonville

Aquatic Preserve: No

Outstanding Florida Waters: No

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

Manatee Aggregation Area: No

Manatee Protection Speed Zone: Yes, 300-foot slow speed shoreline buffer

CONSIDERATION: $310,715.08, representing (1) $157,715.08 as the initial lease fee computed at the base rate of $0.1216 per square foot, including the initial 25 percent surcharge payment; and (2) $153,000 for the severance of sovereign material computed at the rate of $2.25 per cubic yard pursuant to section 18-21.011(3)(a)2, F.A.C. The consideration shall be adjusted based upon receipt of an acceptable appraisal in order to determine the value of the private easement. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable.

STAFF REMARKS: The applicant is proposing to construct two light traffic piers to create a lay berthing area for military or other U.S. government vessels in response to solicitations from the U.S. government to provide this type of facility. The primary purpose of lay berthing these vessels is to provide for the rapid deployment of vehicles and materials for national defense purposes. The vessels are maintained in a reduced operating status, except during periods when activation is required. In general, a vessel departs the lay berth once per year to conduct short sea trials, and then returns. The piers are not designed for typical maritime cargo loading/unloading, or refurbishing operations, nor are there adjacent upland support facilities, other than vehicle parking.

To create the lay berthing area, the applicant proposes to construct two light traffic piers, dredge the berthing area, and dredge an access channel. The two light traffic piers will have access trestles extending a distance of 185 feet and 110 feet into the river, with "T-shaped" terminal platforms and access walkways extending to two mooring dolphins. The pile-supported piers will provide lay berthing space for up to four 1,000-foot-long by 105-foot-wide

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Substitute Item 2, cont.

vessels. The piers will be equipped with floating 10-foot fenders that will provide a minimum 4-foot standoff under maximum pressure. Fenders will also be stationed between any rafted vessels. The piers and berthing areas will preempt 23.82 acres, more or less, of sovereignty submerged lands.

To provide adequate mooring depths at the facility, the applicant is proposing to dredge 68,000 cubic yards of sovereign material from approximately 28.5 acres. The design depths for the lay berths will be minus 31.0 feet mean low water. The following is the breakdown of the location and size of the dredge areas: approximately 16.0 acres will be within the proposed lease boundaries; approximately 10.76 acres will be within an existing inactive federal shipping channel; and the remaining 1.74-acre area will be located within the requested private easement area. The dredged material will be hydraulically pumped to an existing upland spoil disposal facility owned by the applicant.

Sections 18-21.010(1)(l) and 18-21.011(2), F.A.C., state that the value and fee for a private easement are to be determined by an appraisal, performed by an independent appraisal firm and approved by the Department of Environmental Protection (DEP). Section 18-21.010(2), F.A.C., further states, in part, that easements shall be granted upon such terms and conditions, including payment of the value of the easement, if any, that the Board of Trustees sees fit. Due to the August 2001 bid schedule deadline, and the fact that the Board of Trustees will not meet in July, the applicant cannot obtain an appraisal and receive DEP approval in a timely manner to meet the rule requirements. DEP recommends that the applicant obtain an appraisal to determine the value of the easement following consideration by the Board of Trustees. This has been included as a special approval condition.

There are no submerged resources within the berthing area and areas to be dredged. Existing water depths within the proposed project area range from 20 to 35 feet. The existing shoreline consists of a sand beach that supports a narrow 15- to 30-foot band of salt marsh vegetation. The pile-supported piers will traverse the salt marsh vegetation, and should have minimal effects on the existing vegetation.

As part of the reduced operating status, a minimal crew of 13 to 14 personnel is assigned to each ship. The crew is responsible for general day to day operations and security aboard the vessels. Some or all of the assigned crew members may live aboard the vessels. However, based upon the nature of the vessels, it does not appear that they would constitute a legal or primary residence. Each vessel is equipped with an approved sewage treatment system.

A DEP 10-year wetland resource permit issued on June 16, 1993 previously authorized the proposed activities. The permit did not authorize liveaboards, fueling facilities or sewage pumpout. The applicant also submitted an application for a sovereignty submerged lands lease. There is no record that the application was presented to the Board of Trustees for consideration.

Duval County has an approved manatee protection plan (MPP). The Florida Fish and Wildlife Conservation Commission (FFWCC) has stated that the project would be consistent with the MPP, provided its recommendations for manatee protection are included in the approval. The recommendations of FFWCC regarding protection of manatees have been addressed as special lease conditions. In addition, FFWCC recommended conditions regarding protection of the North Atlantic right whale calving grounds off the coast of Florida and Georgia. The applicant has agreed to the right whale condition. This recommendation has also been included as a special lease condition. There are no seagrasses or resources at the site.

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Substitute Item 2, cont.

The project was not required to be noticed pursuant to section 253.115(1), F.S.; however, the applicant published a notice of the application on May 25, 2001 in the local newspaper and held an open house on June 14, 2001 for interested parties. In response to the public notice in the newspaper, a Consolidated Objections of Riparian Owners signed by 67 residents to the east of the project site was received. A petition objecting to the project signed by 35 residents was also received and an individual letter from a resident. The concerns include riparian rights infringements, that the project is contrary to the public interest (environmental, social and economic issues), material variances from the wetland resource management permit, that the residents are entitled to a hearing, reduction in property values of local residences and degrading the aesthetic value of the federal Timucuan Ecological and Historic Preserve, which are located across the river from the project site. Concern has also been expressed about potential ship generated pollution.

A local government comprehensive plan has been adopted for this area, pursuant to section 163.3167, F.S.; however, the Department of Community Affairs (DCA) determined that the plan was not in compliance. In accordance with the compliance agreement between DCA and the local government, an amendment has been adopted which brought the plan into compliance. The proposed action is consistent with the adopted plan, as amended, according to a letter received from the city of Jacksonville on May 17, 2001.

(See Attachment 2, Pages 1-10)

RECOMMEND APPROVAL SUBJECT TO THE SPECIAL APPROVAL CONDITION, THE SPECIAL LEASE CONDITIONS, AND PAYMENT OF $310,715.08

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Substitute Item 3 Leisure Resorts, Inc./City of West Palm Beach Lease/Waiver of Fees

REQUEST: Consideration of an application for (1) a 25-year extended term sovereignty submerged lands lease, with two 25-year renewal options, containing 927,262 square feet, more or less, for the modification and expansion of an existing commercial marina facility; (2) authorization for the severance of 75,000 cubic yards of sovereign material; (3) authorization for the placement of approximately 480 cubic yards of riprap; (4) waiver of all applicable Parcel A lease fees for the entire term of the lease and extensions; and (5) assessment of the annual lease fees for Parcel B to be paid on a square foot basis, for the entire lease term, to commence upon demolition of the first pier.

COUNTY: Palm Beach

Lease No. 501708759

Permit No. 501708759

APPLICANTS: City of West Palm Beach (City) and Leisure Resorts, Inc.

(d/b/a Palm Harbor Marina)

LOCATION: Section 22, Township 43 South, Range 43 East, in Lake Worth, Class III Waters, within the local jurisdiction of the city of West Palm Beach

Aquatic Preserve: No

Outstanding Florida Waters: No

Designated Manatee Co.: Yes, without an approved manatee protection plan

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Substitute Item 3, cont.

Manatee Aggregation Area: No

Manatee Protection Speed Zone: Yes, Idle/Slow Speed Zone

CONSIDERATION: $404,405.20, representing the total for all applicable fees that could be assessed under rule for: (Parcel A) $350,026.15, representing (1) $261,591.56 as lease fees in arrears with interest from January 1, 1998 forward; (2) $70,747.67 as the initial lease fee computed at the base rate of $0.1216 per square foot; (3) $17,686.92 as the annual lease for the extended term lease calculated as the annual lease fee times 1.25. (The fees calculated exclude the 41,842 square feet of structure, pursuant to the court settlement of the Butler Act Claim); and (Parcel B) $55,379.05, representing (1) $46,149.21 as the initial lease fee computed at the base rate of $0.1216 per square foot, and including the initial 25 percent surcharge payment for the 303,613 square footage of proposed expansion area; and (2) $9,229.84 as the annual lease fee for the extended term lease calculated as the annual lease fee times 1.25. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable. The lease fee may be adjusted based on six percent of the annual rental value pursuant to section 18-21.011, F.A.C. Project qualifies for a waiver of severance fees, pursuant to section 18-21.011(3)(c)1, F.A.C.

STAFF REMARKS: The applicants are proposing to modify and enlarge an existing 160-slip commercial docking facility (Parcel A), consisting of 14.137 acres, and an expansion area (Parcel B), consisting of 6.97 acres. There will be no net increase in the number of available slips. The proposal includes reconfiguring and enlarging slips by removing four existing dock structures and dredging 75,000 cubic yards of material to a depth of minus ten feet mean low water from the existing basin and channel. The existing docks extend 370 to 430 feet in length from the existing bulkhead. Each dock has a "T-shaped" terminus with 68 finger piers extending from the main docks. The applicants would then construct five docking structures to accommodate a total of 160 larger slips. The five main docks will extend 345 to 630 feet in length from the existing bulkhead. Four docks will have "T-shaped" platforms with wave attenuation panels and one dock will have an "L-shaped" platform. The applicants also propose to construct a 1,500-foot-long by 6- to 10-foot-wide marginal dock along the existing bulkhead. All finger piers will be 5-feet wide and the length will vary depending on the designated slip size. The existing marina can accommodate vessels ranging from 30 to 160 feet in length with approximate drafts of 4 to 6 feet. The proposed marina will accommodate vessels ranging from 45 to 200 feet in length with approximate drafts of 4 to 8 feet. Currently the existing facility provides fueling services that will remain after the reconfiguration.

In conjunction with this proposal, the applicants are requesting a 25-year extended term lease, with two 25-year renewal options, waiver of lease fees associated with Parcel A, and a modification of the lease fees for Parcel B. In particular, the City is making this request, because of what it considers to be unique operational constraints (financial and potential legal burdens), that it suffers largely as a result of the City’s historical claims that it had ownership of the submerged lands within the existing marina under the Butler Act.

The existing upland adjacent to the marina is zoned as city center lake front by the City’s zoning code. Immediately west of and adjacent to the marina is a large parking area and marina office. Northwest and adjacent to the marina is property containing a condominium with its associated parking garage and tennis courts. A lease agreement between the applicants contains the provisions which govern the rights of Leisure Resorts, Inc., to construct a leasehold condominium on a portion of the leased premises.

The City commenced construction of the Palm Harbor Marina, pursuant to a permit issued by the War Department (predecessor to the U.S. Army Corps of Engineers), in 1946. The

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Substitute Item 3, cont.

existing facility was completed in 1949. It consists of 5.26 acres of filled uplands and 14.3 acres of marina basin with four main docks that extend from the bulkhead and contain 68 finger piers. In 1968, the City entered into a 99-year lease with West Palm Beach Marina, Inc. (now known as Leisure Resorts, Inc.), a private company, to operate the marina and associated facilities. That lease was amended on May 10, 1974 with an expiration date of May 9, 2073. At the time the City granted the initial lease, and later amended that lease, the City believed it owned the entire marina basin, since the marina was constructed during the effective operation of the Butler Act. By express provision in that lease, the City warranted to Leisure Resorts, Inc., that it had title to the entire leased premises, including the submerged lands. That lease gave Leisure Resorts, Inc., exclusive control and possession of the riparian uplands during the term of that lease.

In 1991 and 1992, Leisure Resorts, Inc., received permits from the U.S. Army Corps of Engineers and the former Department of Environmental Regulation for expansion of the marina. On April 16, 1992, the City made application to the former Department of Natural Resources (DNR) for a disclaimer, since the City believed it held title to the submerged lands. However, DNR denied the City’s request based on its position that the City did not have title to the submerged lands by virtue of the Butler Act. The parties were unable to reach agreement relating to the City’s Butler Act claim and the disagreement continued for a period in excess of six years. It was finally resolved by the Florida Supreme Court in the case styled City of West Palm Beach vs. Board of Trustees of the Internal Improvement Trust Fund, State of Florida Department of Environmental Protection, and Leisure Resort, Inc., in which an opinion was rendered on September 9, 1999. The Court determined that the state owned all of the submerged lands in question, except for the "footprints located immediately beneath the four piers of Palm Harbor Marina."

As a result of this determination, the City is currently involved in litigation with Leisure Resorts, Inc., over Leisure Resorts, Inc’s., claim that the City breached its warranty of title by its failure to secure evidence of ownership of the submerged land which the City leased to Leisure Resorts, Inc. The trial is set for August 2001.

The City currently receives an annual lease fee from Leisure Resorts, Inc., for the non-residential portion of the lease in the amount of $24,150. This amount covers marina facilities located on the uplands, as well as the waterside marina facilities. At the present time, approximately $21,644 that the city receives is attributable to the waterside facilities, using a square footage calculation. This money goes into the City’s general revenue, and it is used for general public purpose, including waterfront and stormwater improvements. The City states that it would constitute a substantial hardship, as well as a financial burden, for the City to have to pay the state sovereignty submerged lands fees of $88,434.59, when those fees will be greater than the City’s annual lease fee received from Leisure Resorts, Inc. Further, the City does not have access to Leisure Resorts, Inc.’s, financial records, and they will have difficulties paying lease fees based on six percent of the annual rental value from the wet slip rental area versus paying the base rate that is calculated on a square foot basis.

Because the City has a lease with Leisure Resorts, Inc., that commenced in 1968, the City will be responsible for paying the sovereignty submerged lands lease fees for Parcel A. To avoid this hardship, the City is requesting the following: (1) the lease fees, including the extended term lease fees be waived for the entire 75-year term requested; and (2) the lease fees in arrears, with interest, from January 1, 1998 to the present be waived.

Section 18-21.011(1)(b)(7), F.A.C., states, "A waiver from payment of annual lease fees for government, research, education or charitable entities that are either not-for-profit or non-

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Substitute Item 3, cont.

profit shall be granted if the following conditions are met: a) Any revenues collected from the activity or use of sovereignty submerged lands are used solely for the purposes of operation and maintenance of the structure; and b) the activity or use of sovereignty submerged lands is consistent with the public purposes of the applicant organization and is not an adjunct to a commercial endeavor." Staff is of the opinion that the applicants do not meet these conditions of section 18-21.011(1)(b)(7), F.A.C., and therefore, annual lease fees can not be waived under this rule. However, staff can recommend a waiver of the lease fees in arrears of $261,591.56 under section 18-21.011(1)(b)11.f., F.A.C., because payment in the amount of the assessment would create a substantial hardship that affects the applicant significantly different than other similarly situated applicants, due to the history of litigation between the Board of Trustees and the City over ownership of the submerged lands. Staff also recommends that the Board of Trustees assess the base fee rather than the six percent of the annual rental value from the wet slips as requested by the applicants, because the City entered into the 99-year lease with Leisure Resorts, Inc., in 1968, which did not require that the lessee disclose its annual wet slip rental value. Therefore, the City is not able to determine the wet slip rental value.

The City’s lease with Leisure Resorts, Inc., does not include the area labeled as Parcel B, which is the area waterward of the existing facility and is the area of proposed expansion. The City does request that the sovereignty submerged lands fee for Parcel B be assessed only on a base rate per square foot amount. Pursuant to section 18-21.011(1)(a)(1), F.A.C., the annual lease fee for standard term leases shall be six percent of the annual rental value from the wet slip rental area, the base fee or the minimum annual fee, whichever is greater. Staff recommends this expansion be treated as all other similar lease expansions, and that all fees required by rule be assessed for Parcel B.

With regards to the lease renewal options requested by the applicants, section 18-21.008(2)(a), F.A.C., provides that extended term leases shall be available for terms up to 25 years. Section 18-21.008(1)(b)3, F.A.C., allows renewals of such leases subject to compliance with the statutes and rules of the Board of Trustees in effect at the time of lease renewal. Therefore, staff can recommend the two 25 year renewal options, but subject to special approval conditions and special lease conditions listed in the attachments.

If the Board of Trustees grants all of the City’s requests, the City will quitclaim to the Board of Trustees all of its rights, title and interest that it may have acquired under the Butler Act to the footprints under the existing pier structures, as these piers are demolished to make way for the proposed structures.

The proposed dredging part of this project would restore the depths in the marina basin and the access channel connecting it to the Atlantic Intracoastal Waterway to minus ten feet at mean low water. The basin was dredged to that depth originally, as authorized by the U.S. Army Corps of Engineers’ permit, in 1946. The applicants have agreed to prohibit dredging in the southern, nearshore portion of the marina to avoid a small shoal area, a portion of which is sparsely vegetated with seagrass. The applicants have agreed to construct that portion of the nearshore marginal dock with grated metal to allow maximum light penetration, and to place a railing along the marginal dock to prohibit mooring in the area. These issues are addressed in DEP’s wetland resource permit.

The spoil material will be dewatered in a self-contained, upland spoil site. The applicants’ agent has stated that the material is primarily silt and is therefore not beach compatible. Once dewatered, the material will be utilized for municipal purposes. Pursuant to section 18-

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Substitute Item 3, cont.

21.011(3)(c), F.A.C., a waiver of the dredge fees may be granted if the material is placed on public property and used for public purposes.

Approximately 480 cubic yards of riprap will be placed along 1,035 linear feet of the applicants’ existing bulkhead under the proposed marginal dock. The proposed riprap is required by DEP’s wetland resource permit to enhance habitat.

The proposed project will extend into the 25-foot riparian setback area of the adjacent property owner on the northern side, the Florida Department of Transportation (FDOT). FDOT issued the required waiver of the 25-foot setback encroachment on May 11, 2001. Florida Power and Light (FPL), the City, and BellSouth have utility lines within the existing marina facility just north of the existing northernmost dock structure. FPL conditionally approved the project on May 14, 2001, subject to accessibility to its cable for repair work on an emergency basis. The City’s Department of Utilities provided a letter of no objection on May 11, 2001. BellSouth, in a letter dated April 14, 2000, stated that any permission granted for the expansion or reconstruction of the marina should be subject to the BellSouth cables as they currently exist. BellSouth and Leisure Resorts, Inc., entered into a settlement stipulation in August 2000, as a result of a lawsuit filed by Leisure Resorts, Inc. Both parties are responsible for certain conditions within the agreement as it pertains to the expansion and renovation of the marina. In the agreement, BellSouth has agreed to execute a letter of no objection, which has not been received to date. This has been addressed as a special approval condition.

DEP’s wetland resource permit requires sewage pumpout facilities, authorizes fueling facilities, but does not authorize liveaboards. Fueling facilities already exist at the marina. The recommendations of the Florida Fish and Wildlife Conservation Commission (FFWCC) regarding the protection of manatees have been addressed in the wetland resource permit, and/or have been included as special lease conditions. FFWCC determined that if conditions were included, its requirements would satisfied. Protection of seagrasses has been addressed in DEP’s wetland resource permit.

Palm Beach County is a designated manatee county, without an approved manatee protection plan. FFWCC has stated that, "While Palm Beach County has made a significant amount of effort in the 1990’s on development of a plan, no significant progress has been made to complete the process in recent years."

The proposed project was noticed to property owners within 500 feet of the proposed marina expansion on February 23, 2001, pursuant to section 253.115, F.S. One objection was received on March 9, 2001, from Arthur M. Bergmann, President of the Board of Directors, Waterview Towers Condominium Association, Inc., writing as the duly elected representative of the 132 member association. The letter stated that the members raised questions about the implications of the construction project and how it would effect them, and they requested additional time to comment. DEP provided the applicants the opportunity to respond to concerns raised. DEP had not received any further objections by the end of the statutory commenting period, March 25, 2001.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S. The Department of Community Affairs determined that the plan was in compliance. The proposed action is consistent with the adopted plan, according to a letter received from the City dated April 20, 2001.

(See Attachment 3, Pages 1-12)

RECOMMEND WITHDRAWAL

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Substitute Item 4 BOT and DEP v. Prosperity I Cruises, Inc. and Fisherman's Wharf of Venice, Inc. Settlement Agreement

REQUEST: Consideration of a proposed settlement in the case of Department of Environmental Protection and the Board of Trustees of the Internal Improvement Trust Fund v. Prosperity I Cruises, Inc. and Fisherman’s Wharf of Venice, Inc., Case No. 98-2085-CA-01, Twelfth Judicial Circuit (Sarasota County), which involves an exchange of quitclaim deeds to submerged lands adjacent to Roberts Bay in Venice, Florida.

COUNTY: Sarasota

LOCATION: Section 07, Township 39 South, Range 19 East, adjacent to Robert’s Bay, Class III Waters, within the local jurisdiction of the city of Venice

Aquatic Preserve: No

Outstanding Florida Waters: No

Designated Manatee County: Yes, with no approved manatee protection plan

Manatee Protection Speed Zone: Slow

STAFF REMARKS: This case arose out of the operation of a cruise ship (a "cruise to nowhere") in the city of Venice, in Sarasota County. The ship was operated by Prosperity I Cruises, Inc., (Prosperity) out of a marina owned by Fisherman’s Wharf of Venice, Inc. (Fisherman’s Wharf). John Konecnik (Konecnik) is the principal owner of Fisherman’s Wharf. The ship made two round trips a day to the Gulf of Mexico. Because of its draft the ship would create turbidity violations in the marina and at various shallow locations on its route to the Gulf of Mexico. It also appeared that the ship’s propeller dredged a hole in the marina.

Fisherman’s Wharf had a lease from the Board of Trustees for the marina. When the lease expired in December 1997, Fisherman’s Wharf did not seek to renew it. Fisherman’s Wharf instead took the position that the land was not sovereign, and therefore, not owned by the Board of Trustees.

In April 1998, the Department of Environmental Protection (DEP) and the Board of Trustees sued Prosperity and Fisherman’s Wharf - Prosperity for causing turbidity violations and Fisherman’s Wharf for trespass and ejectment. Prosperity has since gone out of business, and the ship no longer operates in the area.

During the discovery phase of the litigation, it became apparent that the Board of Trustees’ claim to the submerged lands was tentative, and after consultation with the Attorney General’s Office, DEP attempted to settle the ownership issues. After extensive negotiations, the parties have reached a settlement, contingent on Board of Trustees’ approval.

The submerged lands claimed by Fisherman’s Wharf and Konecnik include the Fisherman’s Wharf marina, and adjacent lands that are presently leased by the Board of Trustees to the Harbor Lights Mobile Home Park, the West Coast Inland Navigation District (WCIND), and JMT Partners, a Florida general partnership. JMT Partners is a company owned by Konecnik. Konecnik and Fisherman’s Wharf are also claiming submerged lands in the Intracoastal Waterway and under a dock that is adjacent to the Waterway.

The settlement would divide the submerged lands so that Fisherman’s Wharf and Konecnik would deed the area that includes those lands leased to the Harbor Lights Mobile Home Park and WCIND to the Board of Trustees. The property being quitclaimed to the Board of Trustees totals approximately 5.31 acres. The Board of Trustees would quitclaim any interest it has in the Fisherman’s Wharf marina, the submerged lands leased to JMT Partners, and the

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Substitute Item 4, cont.

dock adjacent to the Intercoastal Waterway to Konecnik. The property being quitclaimed to Konecnik totals approximately 4.30 acres.

Konecnik and Fisherman’s Wharf plan to add more slips to the marina, and have submitted a permit application to DEP to expand and relocate docks in the marina, fill a small basin in the marina, repair a seawall and conduct maintenance dredging of the marina. In addition, Fisherman’s Wharf will maintenance dredge under the Harbor Lights Mobile Home Park docks that were affected by the prop-dredging. DEP has reviewed the permit application, and anticipates issuing the permit if this settlement is approved by the Board of Trustees. The approval of this settlement will not in any way affect any rights to challenge the permit. That means residents of the Harbor Lights Mobile Home Park will have the opportunity under Chapter 120 of the Florida Statutes to challenge the permit when it is issued. The approval of this agreement does not affect the outcome of any challenge to the permit; the permit will stand or fall on its own merits. However, in the event of a successful challenge to the permit, this settlement agreement will be null and void.

(See Attachment 4, Pages 1-21)

RECOMMEND APPROVAL

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Item 5 BOR/UF-IFAS Conveyance/St. Lucie County

REQUEST: Consideration of a request by the Florida Board of Regents to convey a 12-acre parcel of state-owned land in St. Lucie County to St. Lucie County.

COUNTY: St. Lucie

Deed No. 30697

APPLICANT: St. Lucie County (County)

LOCATION: Section 14, Township 35 South, Range 39 East

CONSIDERATION: $88,800 to be deposited in the Institute of Food and Agricultural Sciences Relocation and Construction Trust Fund.

(AGENDA CONTINUED ON NEXT PAGE)

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Item 5, cont.

STAFF REMARKS: The 1987 Legislature charged the Florida Board of Regents (BOR) with analyzing the effectiveness of transmitting the University of Florida, Institute of Food and Agricultural Sciences (UF/IFAS) programs/research to industries in the state through extension services. The study was completed and approved by BOR in January 1988 and recommended the development of comprehensive centers to be strategically located throughout the state to enhance the delivery of the IFAS food, agriculture and natural resource programs. In 1990, the Legislature passed chapter 90-148, Laws of Florida, authorizing BOR, with the approval of the Board of Trustees, to sell, trade, or exchange state agricultural research and education property, and apply the funds to the relocation and construction of new agricultural research facilities.

The subject property is part of a 720-acre parcel known as the Indian River Research and Education Center (IRREC). The UF/IFAS and the County maintain a cooperative relationship at the IRREC, where the County maintains an Agricultural Extension Office. The County has the need to expand their agricultural extension service and has requested to purchase 12 acres at the southeast corner of the IRREC site. The site is encumbered by a 3.6-acre permanent easement for a gas pipeline. BOR originally stated that the land area was approximately 9 acres; however, this size did not include the easement. The entire site, including that area encumbered by the easement, consists of 12 acres. The 12-acre subject property is not currently utilized by the IRREC, and UF/IFAS supports the County’s request. BOR approved the surplus and sale of the property on September 14, 2000. This request was approved by the Acquisition and Restoration Council on December 19, 2000.

Daniel D. Fuller, MAI and State Certified General Real Estate Appraiser, appraised the property on September 12, 2000. Mr. Fuller estimated the market value of the property at $90,000. Daniel K. Deighan, MAI and State Certified General Real Estate Appraiser, prepared a second appraisal with a market value conclusion of $87,600. The date of value of the second appraisal is March 24, 2001. The property was conveyed to the Board of Trustees in a transaction where no monetary consideration was exchanged. Therefore, pursuant to section 253.034(6)(h), F.S., the sale price shall not exceed the average of two separate appraisals. The average value of the two appraisals is $88,800.

In accordance with section 253.111, F.S., the County and state agencies were notified of the sale. The County is the prospective purchaser of the subject property. Pursuant to section 253.115, F.S., property owners within 500 feet of the subject property were notified of the sale. The Department of Environmental Protection received no objections to the sale.

A consideration of the status of the local government comprehensive plan was not made for this item. The Department of Environmental Protection has determined that surplus land sales are not subject to the local government planning process.

(See Attachment 5, Pages 1-40)

RECOMMEND APPROVAL

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Item 6 City of Belle Glade Conveyance

REQUEST: Consideration of a request to convey a 49.95-acre parcel of state-owned land in Palm Beach County to the City of Belle Glade.

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Item 6, cont.

COUNTY: Palm Beach

Deed Number 30788

APPLICANT: City of Belle Glade (City)

LOCATION: Section 29, Township 43 South, Range 37 East

CONSIDERATION: $212,287.50 to be deposited in the Internal Improvement Trust Fund

STAFF REMARKS: The City acquired 50 acres from the Board of Trustees in 1997 for development as a business park. The land was a portion of the 4,157 acres, more or less, leased to the Florida Department of Corrections (DOC) and subleased to Prison Rehabilitative Industries and Diversified Enterprises, Inc., (PRIDE) at Glades Correctional Institution. In 1999, the City returned with a request for an additional 49.95 acres to expand the business park. El Paso Merchant Energy Company is prepared to build and operate a power generation and/or natural gas transportation facility on the land. DOC and PRIDE agreed to release this additional 49.95-acre parcel. Release by PRIDE was subject to the City constructing a rock-based roadway and drainage conveyance with culvert for its future use of properties to the east of the business park. The City has agreed to do the construction.

Pursuant to section 253.115, F.S., section 18-2.019(5)(a), F.A.C., and section 253.111, F.S., 500-foot landowners, state agencies and the county were notified of the request. No objections were received from the landowners, and neither the county nor any state agency expressed an interest in the property. On June 27, 2000, the Acquisition and Restoration Council recommended approval of the conveyance to the City, subject to the PRIDE conditions on release of the land. Pursuant to section 18-2.018(3)(b), F.A.C., the Board of Trustees may convey an upland parcel if conveyance by sale, gift or exchange provides a greater benefit to the public than its retention.

The City has been leasing the 49.95 acres from the Board of Trustees pending its purchase of the property. Robert J. Callaway, MAI, SRA, CRE, appraised the property on September 13, 2000, at $200,000, or $4,000 per acre. The Department of Environmental Protection (DEP), Bureau of Appraisal obtained additional information regarding recent sales in the vicinity ranging from $4,000 per acre to $6,527 per acre. Based on the new sales information, the City has agreed to pay an additional $250 per acre ($4,250 per acre) for a purchase price of $212,287.50. DEP staff recommends only the slight increase in purchase price because the land is located in an area designated as a Rural Area of Critical Economic Concern (RACEC), pursuant to Executive Order Number 01-26. RACEC’s are rural communities that are important to the overall success of the state’s economy, but face difficulties in supporting or enhancing job creating activities for their residents or generating revenues for education and other critical government services such as infrastructure, transportation and safety.

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

(See Attachment 6, Pages 1-25)

RECOMMEND APPROVAL

Board of Trustees

Agenda - June 26, 2001

Page Twelve

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Item 7 Little Everglades Ranch, Inc., Conveyance

REQUEST: Consideration of a request to convey a 40-acre parcel of state-owned land in Pasco County to Little Everglades Ranch, Inc.

COUNTY: Pasco

Deed No. 30689

APPLICANT: Little Everglades Ranch, Inc., a Florida Corporation

LOCATION: Section 24, Township 24 South, Range 21 East

CONSIDERATION: $46,000 to be deposited in the Internal Improvement Trust Fund

STAFF REMARKS: The subject property was originally conveyed to the Board of Trustees, for no consideration, by the United States as swamp and overflow land (Tampa District Patent No. 6, November 6, 1856). No record of any subsequent conveyance of this tract by the Board of Trustees was found. The Acquisition and Restoration Council (ARC) recommended surplussing this property to be sold to Little Everglades Ranch, Inc., on August 22, 2000.

This 40-acre tract is landlocked with no legal access, and is located within a larger parcel owned by Little Everglades Ranch, Inc.

Little Everglades Ranch, Inc., believed they owned the property when they applied for an environmental resource permit on the several hundred acres of land in Pasco County. The subject property was located within area that is covered by Environmental Resource Permit (ERP) No. 51-01354913-001. The ERP was obtained specifically for peat mining. Little Everglades Ranch, Inc., intends to use the property in conjunction with their surrounding ranch for agricultural purposes, including cattle ranching, crop cultivation and peat mining. After mining, the wetland will be restored to its native state, per the ERP. Pasco County has determined that the proposed use of the subject property would be consistent with its Agricultural/Rural land use designation.

Frank A. Catlett, MAI, SRA and State-Certified General Real Estate Appraiser, appraised the property on November 12, 1999. Mr. Catlett estimated the market value of the property at $44,000. John S. Menard, MAI and State-Certified General Real Estate Appraiser, prepared a second appraisal with a market value conclusion of $48,000. The date of value of the second appraisal is December 22, 2000. Pursuant to section 253.034(6)(h), F.S, the sale price shall not exceed the average of two separate appraisals. The average of the two appraisals is $46,000.

In accordance with section 253.111, F.S., Pasco County and state agencies were notified of the sale and did not express any interest in the property. Pursuant to section 253.115, F.S., property owners within 500 feet of the subject property were also notified and no objections were received.

A consideration of the status of the local government comprehensive plan was not made for this item. The Department of Environmental Protection has determined that surplus land sales are not subject to the local government planning process.

(See Attachment 7, Pages 1-21)

RECOMMEND APPROVAL

Board of Trustees

Agenda - June 26, 2001

Page Thirteen

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Item 8 Sherrouse Ranch, Inc./Ann Sherrouse Option Agreements/Perpetual Conservation Easements/Green Swamp Area of Critical State Concern/Green Swamp CARL Project

REQUEST:  Consideration of two option agreements to acquire perpetual conservation easements over 719.40 acres within the Green Swamp Area of Critical State Concern and the Green Swamp CARL project from Sherrouse Ranch, Inc., and Ann Sherrouse.

COUNTY:  Polk

LOCATION:  Section 15, Township 25 South, Range 24 East and Sections 09, 10 and 15, Township 26, Range 24 East

CONSIDERATION:  $452,000

* The property has been under Sherrouse family ownership for over 50 years.

** This price indicates a sales price for the fee simple interest.

*** $625/ac. The purchase price for the conservation easement on Parcel 4K is 48% of the appraised fee value of $836,000.

****$655/ac. The purchase price for the conservation easement on Parcel 4F is 38% of the appraised fee value of $130,000.

STAFF REMARKS: Effective July 1, 1999, the legislature transferred all activities performed by the Green Swamp Land Authority to the Department of Environmental Protection (DEP) as provided in section 51, chapter 99-247, Laws of Florida. The Green Swamp Area of Critical State Concern contains 322,690 acres, of which 30,907 acres are protected by, or under agreement to be protected by, land protection agreements or conservation easements. After the Board of Trustees approves these agreements, 291,063.60 acres, or 90 percent of the area, will remain to be acquired. These acquisitions also lie within the Green Swamp CARL project boundary, which contains 117,780 acres, of which 26,333.82 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves these agreements, 90,726.78 acres, or 77 percent of the Green Swamp CARL project, will remain to be acquired.

The properties under the proposed conservation easements will allow cattle grazing, improved pasture, sod cultivation and silviculture for both parcels and will be restricted in perpetuity by the following provisions of the easements, which include, but are not limited to, the following:

Additional new construction for Parcel 4K will be limited to two residential structures, no more than two related outbuildings for each, impacting an area limited to 2.5 contiguous acres each including access driveways;

New residential structures for Parcel 4F will be prohibited;

Dumping of trash, waste, hazardous materials and soil will be prohibited;

Mining and excavation will be prohibited, except in relation to allowable construction;

No more intense agricultural use than currently exists on the property will be allowed, (which includes improved pasture, sod cultivation, silviculture and cattle grazing for Parcel 4K, and improved pasture and cattle grazing for Parcel 4F), except as may be specifically reserved to the sellers;

No timber harvesting in any herbaceous or forested wetland area or open water will be allowed;

No acts or uses detrimental to the retention of land or water areas, or to the use of the property as a water recharge area will be allowed; and

Board of Trustees

Agenda - June 26, 2001

Page Fourteen

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Item 8, cont.

No leasing or selling of hunting and fishing rights on the property will be allowed.

All mortgages and liens will be satisfied or subordinated at the time of closing.  In the event the commitments for title insurance, to be obtained prior to closing, reveal any other encumbrances which may affect the value of the properties or the proposed management of the properties, staff will so advise the Board of Trustees prior to closing.

Survey of the properties have been completed. Title insurance policies, environmental site assessments and easement documentation reports will be provided by the purchaser prior to closing. The seller will reimburse $1,000 of the cost of the title insurance for parcel 4K.

The mosaic of cypress swamps, pine forests, and pastures known as the Green Swamp is a vital part of the water supply of Central Florida. This region gives rise to four major river systems (the Withlacoochee, Oklawaha, Hillsborough and Peace) and, because it has the highest groundwater elevation in the peninsula, is important for maintaining the flow of water from the Floridan Aquifer. Preservation by acquiring certain rights to the properties located within the area will protect the Floridan Aquifer and the headwaters of several rivers, and preserve a large area for wildlife.

The conservation easements will be monitored by DEP’s Office of Environmental Services.

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 8, Pages 1-73)

RECOMMEND APPROVAL

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Item 9 Wald Acquisition Agreement/East Everglades CARL Project

DEFERRED FROM THE APRIL 24, 2001 AGENDA

DEFERRED FROM THE MAY 15, 2001 AGENDA

DEFERRED FROM THE JUNE 12, 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

Board of Trustees

Agenda - June 26, 2001

Page Fifteen

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Item 9, cont.

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 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.

Board of Trustees

Agenda - June 26, 2001

Page Sixteen

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Item 9, cont.

The South Florida Water Management District (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 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 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

Board of Trustees

Agenda - June 26, 2001

Substitute Page Seventeen

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Item 9, cont.

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, as submitted with the June 12, 2001 Agenda.)

RECOMMEND APPROVAL

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Substitute Item 10 Maxwell Option Agreement/North Key Largo Hammocks CARL Project

REQUEST: Consideration of an option agreement to acquire 2.8 acres within the North Key Largo Hammocks CARL project from Mary Kaufman Maxwell, Trustee

COUNTY: Monroe

LOCATION: Section 03, Township 60 South, Range 40 East

CONSIDERATION: $61,600

* Acquired August 2, 1985.

** $22,000/ac.

STAFF REMARKS: The North Key Largo Hammocks CARL project was ranked number 1 on the CARL Substantially Complete List approved by the Board of Trustees on February 22, 2000, and is eligible for negotiation under the Division of State Lands’ (DSL) Land Acquisition Workplan. This project contains 4,508 acres, of which 4,264 acres have been acquired or are under agreement to be acquired by the Board of Trustees. After the Board of Trustees approves this agreement, 241.2 acres, or five percent of the project, will remain to be acquired.

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

Board of Trustees

Agenda - June 26, 2001

Substitute Page Eighteen

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Substitute Item 10, cont.

necessary to support and manage the living reefs of the park, and it will conserve an area where the public can enjoy the original landscape of the subtropical Florida Keys.

This project was originally known as New Mahogany Hammock on the first CARL list in 1980. The project was significantly expanded in 1986. By 1992, most property owned by willing sellers had been acquired.

On September 15, 1992, the Board of Trustees directed the Department of Natural Resources (DNR) to exercise the power of eminent domain to acquire all remaining vacant parcels within the project, with an amendment to exclude this parcel, Number 56, from the condemnation resolution, and attempt to resolve our differences by mutual negotiations. Since 1992, DNR, now the Department of Environmental Protection (DEP), and the Attorney General’s Office have been pursuing eminent domain, and have acquired approximately 410 acres by eminent domain.

The state has been negotiating with these owners since the early 1990’s. The Maxwells own and operate a brine shrimp farm on a portion of the property. Its location within the North Key Largo Hammocks is an ideal setting, due to the state’s policy of not allowing the spraying for mosquitoes. Between the brine shrimp farm and the county road is the 2.8 acres of undisturbed hammock that is being acquired. While the parties had agreed to an acquisition proposal shortly after the Board of Trustees’ vote on condemnation, a significant amount of research had to be undertaken to ascertain the ownership of the existing driveway that goes from the county road to the brine shrimp farm in the rear of the property. It was initially thought that the driveway was on lands that had been acquired by the state, and an exchange of an easement across state lands along with a cash boot for the 2.8 acres of hammock was being proposed. As title and survey work was being performed, a question was raised as to the ownership of the road, and further research revealed that, in fact, a significant portion of the driveway was actually within a dedicated county right-of-way. Based on this new information, the acquisition proposal was altered to account for the existence of the county road right-of-way.

On September 14, 1999, in order to induce more property owners to accept DEP’s offers and avoid eminent domain proceedings, the Board of Trustees authorized DSL to extend offers to property owners in the Gulfstream Shores and Knowlson Colony subdivisions on North Key Largo, at a price not to exceed $4,000 over appraised value for each parcel. The $4,000 was based on the highest taxable value assessed by the county, which was in tax year 1991. The taxable value for this parcel cannot be calculated, since it is combined with a contiguous parcel to the east. Staff believes $5,100 over approved value is appropriate, when compared to the cost associated with eminent domain and with the precedent set on September 14, 1999.

In an effort to acquire this property and to avoid costly condemnation proceedings, an agreement was reached that is 10 percent over the approved value. If condemnation was to be pursued, the appraisals would have to be updated and current fair market value would have to be offered. In the condemnation of the Kaliopi property (parcel Number 43, case number 94-20495), 17 acres were awarded $50,000 per acre plus fees. Staff believes that to avoid unnecessary and costly litigation, approval of this transaction is warranted.

The option agreement grants a right of first refusal in favor of the Board of Trustees over the portion of the property which contains the brine shrimp farm, and which is being retained by the seller. At closing, the seller will reserve an easement for a water line that benefits the retained parcel. An addendum to the option agreement further provides that the Board of

Board of Trustees

Agenda - June 26, 2001

Substitute Page Nineteen

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Substitute Item 10, cont.

Trustees will grant a non-exclusive perpetual easement over state-owned land in order to provide access to the parcel being retained by the seller.

This property will be managed by the Division of Recreation and Parks as part of the Key Largo Hammocks State Botanical site.

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 1-33)

RECOMMEND APPROVAL

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Item 11 Gladman Option Agreement/Mike Roess Gold Head Branch State Park

REQUEST: Consideration of an option agreement to acquire 202 acres within the Mike Roess Gold Head Branch State Park, Division of Recreation and Parks’ Additions and Inholdings project from Helen Miriam Gladman.

COUNTY: Clay

LOCATION: Section 35, Township 07 South, Range 23 East

CONSIDERATION: $350,000

* This property was inherited in 1929

** $1,732/ac

*** The contract will end 150 days after the death of Helen Miriam Gladman and the appointment of a personal representative for the estate.

STAFF REMARKS: The Mike Roess Gold Head Branch 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.

The property is currently owned by Mrs. Helen Miriam Gladman, who is 103 years old. Upon her death, a personal representative will be appointed for the estate. Closing will occur within 150 days after the appointment of the representative. The state will deliver the funds to the estate of Mrs. Gladman, and the estate will transfer title to the Board of Trustees.

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.

Board of Trustees

Agenda - June 26, 2001

Page Twenty

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Item 11, cont.

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 owners of an adjacent sand mine operation reportedly attempted to acquire the property from Mrs. Gladman for approximately $600,000. If the property is mined, it is anticipated that the mining would have an adverse impact on the ground water supply in the park.

The property consists of high quality sandhill. If acquired, it will help to maintain viable populations of listed species in the park, such as the Sherman's fox squirrel, indigo snake and gopher tortoise, by maintaining the habitat that these species rely on in the park and on the property. The property preserves, by 5,750 feet, an existing natural habitat connection with adjacent federal land at Camp Blanding. If the property were to be developed or altered in a manner resulting in loss of habitat connection, immigration of key species from Camp Blanding would be diminished. Preservation of the existing habitat connection will help to ensure the long-term viability of wildlife populations in the park. Additionally, acquisition will buffer the existing park from potential sand mine operations and any potential effects such operations might have on park resources. Sandhill is a fairly open, savanna-like habitat. Mining close to the existing park boundary would adversely affect the aesthetic qualities experienced by the park visitor upon entry into the park and along the park drive. The park entrance is approximately 800 feet from the park boundary. The property has rolling topography and would lend itself to passive recreational uses, such as multiple use trails.

The property will be managed by DRP as an addition to the Mike Roess Gold Head Branch 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 11, Pages 1-15)

RECOMMEND APPROVAL

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Item 12 Muncy / Watters Option Agreements / FWCC / Babcock-Webb Wildlife Management Area

REQUEST:  Consideration of an three option agreements to acquire 226.4 acres adjoining the Yucca Pens Unit of the Babcock-Webb Wildlife Management Area by the Florida Fish and Wildlife Conservation Commission from Billy R. Muncy and Dee Anna Muncy, Alton Watters, and Margaret W. Watters.

COUNTIES:  Charlotte and Lee

APPLICANT: Florida Fish and Wildlife Conservation Commission (FWCC)

LOCATION:  Section 21, Township 42 South, Range 23 East and Sections 14 and 16, Township 43 South, Range 23 East

Board of Trustees

Agenda - June 26, 2001

Page Twenty-one

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Item 12, cont.

CONSIDERATION:  $556,560

* No sales of these properties have occurred within the past five years.

** $2,990/ac

*** $1,701/ac

**** $2,366/ac

STAFF REMARKS: These acquisitions were negotiated by FWCC under the P2000 program. The acquisitions were approved by FWCC on June 7, 2001. The parcels adjoin the Yucca Pens Unit of the Babcock-Webb Wildlife Management Area and are on the current FWCC acquisition list. The parcels are also located within the Charlotte Harbor Flatwoods CARL project.

On May 15, 2001, the Department of Environmental Protection (DEP) notified FWCC that, due to project ranking, DEP would no longer be pursuing 53 parcels in the Charlotte Harbor Flatwoods CARL project. DEP requested FWCC pursue these parcels under its Additions and Inholdings program. Because the two Watters parcels had already been negotiated by DEP, FWCC has agreed to pay the purchase price and all purchaser’s closings costs relating to these two acquisitions.

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

Surveys, title insurance policies, environmental site evaluations and, if necessary, environmental site assessments will be provided by the FWCC prior to closing.

Northwest of Fort Myers lies the largest and highest-quality slash-pine flatwoods left in southwest Florida. The pines are home to red-cockaded woodpeckers, black bears, and bald eagles, and an occasional Florida panther ranges the area. The largest population in the world of the rare beautiful pawpaw grows here. Several drainage ditches flow through these flatwoods into the Charlotte Harbor Aquatic Preserve. Public acquisition of these sites will aid in protecting these flatwoods and connecting the Charlotte Harbor State Buffer Preserve with the Babcock-Webb Wildlife Management Area, helping to protect both of these managed areas and the waters of the aquatic preserve.

These acquisitions will also provide additional wildlife habitat, create a more complete pattern of ownership for the wildlife management area, and enhance the overall management of the Babcock-Webb Wildlife Management Area.

Board of Trustees

Agenda - June 26, 2001

Substitute Page Twenty-two

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Item 12, cont.

The properties will be managed by FWCC as additions to the Babcock-Webb Wildlife Management Area for natural resource conservation and resource-based public outdoor recreation within a multiple-use management regime.

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 12, Pages 1-37)

RECOMMEND APPROVAL

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Substitute Item 13 Mizrahi/Sun Trust Bank, Nature Coast/SWFWMD/FWCC Acquisition Agreements/Chassahowitzka Swamp Wildlife Management Area/Weeki Wachee Preserve

REQUEST: Consideration of (1) authorization to enter into an acquisition agreement with Southwest Florida Water Management District and the Florida Fish and Wildlife Conservation Commission, for the Chassahowitzka Swamp Wildlife Management Area Project and Weeki Wachee Preserve Project; and (2) authorization to acquire an undivided 100 percent interest in 1,220 acres within the Chassahowitzka Swamp Wildlife Management Area Project from the Southwest Florida Water Management District for the Nancy H. Mizrahi and Sun Trust Bank, Nature Coast, Trustee, properties.

COUNTY: Hernando

APPLICANT: Florida Fish And Wildlife Conservation Commission (FWCC)

LOCATION: Sections 07, 17, 21, and 28, Township 22 South, Range 17 East

CONSIDERATION: $914,602.50 (Board of Trustees’ 100 percent share of the purchase price, subject to final survey adjustments, at a price of $750 per acre)

STAFF REMARKS: The Chassahowitzka Swamp Wildlife Management Area is eligible for funding under the FWCC Preservation 2000 Additions and Inholdings Program. FWCC approved the agreement and the acquisition of the Mizrahi and Sun Trust parcels on November 7, 2000. The proposed agreement covers approximately 1,220 acres.

To facilitate the acquisition of this joint project, the Southwest Florida Water Management District (District) has taken the lead in its acquisition. The Department of Environmental Protection (DEP) and FWCC have prepared an agreement that would allow the District to acquire the Chassahowitzka Swamp Wildlife Management Area additions and inholdings, in accordance with section 259.041(17), F.S., utilizing the procedures set out in section 373.139, F.S. On April 11, 1995, the Board of Trustees approved the use of the District's procedures to allow the District to acquire lands to be held jointly by the Board of Trustees and the District.

FWCC approved the agreement and the acquisition of these two parcels on November 7, 2000. Upon Board of Trustees' approval, DEP staff will execute the agreement on behalf of the Board of Trustees. The District has agreed to present this acquisition agreement, with a recommendation for approval, to their governing board on June 26, 2001. For purposes of this

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Agenda - June 26, 2001

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Substitute Item 13, cont.

acquisition agreement, FWCC and the District have agreed that an undivided 100 percent title interest in those lands within the project boundary located north of County Road 550 will vest with the Board of Trustees and be managed by FWCC, while the District will retain an undivided 100 percent title interest in and manage those lands located within the project boundary south of County Road 550.

Incorporated into the agreement are a number of assurances that the District is giving the Board of Trustees in return for its consideration of this agreement. The District has agreed to: (1) comply with the procedures set out in section 373.139, F.S.; (2) defend the Board of Trustees against all title and survey disputes or defects and environmental contamination associated with each acquisition negotiated by the District that were either known or should have been known by the District at the time the District acquired the parcel; and (3) reimburse the Board of Trustees 100 percent of any overpayment of the purchase price if an audit or investigation determines that the purchase price paid exceeded the actual appraised value.

Pursuant to the proposed agreement, District staff has obtained and reviewed appraisals, negotiated purchase contracts with the Mizrahi and Sun Trust owners, and will secure the approval of its Governing Board at its next regularly scheduled meeting. Following the District’s Governing Board approval, the District will provide DEP’s Division of State Lands and FWCC with a board resolution requesting reimbursement of 100 percent of the purchase price. DEP staff is seeking approval for FWCC’s share of the purchase price for each parcel the District contracted to purchase. FWCC will fund 100 percent of the acquisition costs for each parcel from its Preservation 2000 funds. In addition, the agreement provides for the District to be reimbursed by FWCC for 100 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 FWCC to reimburse these costs. If the Board of Trustees approves these purchases, the District will proceed to secure Basin Board and Governing Board approval, and complete closing activities with an undivided 100 percent title interest to be vested with the Board of Trustees.

The natural topography and plant cover of the site are common to the physiographic region, and remain essentially intact. Natural plant communities on the property include hydric hammock, scrubby flatwoods, basin swamp, and marsh communities. Dominant plant cover on the site consists of pine and palmetto flatwoods transitioning to marshy prairies and cypress swamps. The potential for listed species, including Florida black bears and southern bald eagles, to be located on or use this property is considered good. Eagle’s Nest Spring, a spring-fed sink lake, is located near the center of the Mizrahi tract. There are no improvements located on these parcels.

Acquisition of these lands will create a more complete pattern of ownership for the wildlife management area, provide additional wildlife habitat, and enhance the overall management of the Chassahowitzka Swamp Wildlife Management Area. The property will be managed by FWCC for natural resource conservation and resource-based public outdoor recreation within a multiple use management regime as part of the Chassahowitzka Swamp Wildlife Management Area.

This acquisition is subject to Preservation 2000 funding being available, and may be withdrawn prior to Cabinet consideration.

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

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Agenda - June 26, 2001

Substitute Page Twenty-four

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Substitute Item 13, cont.

(See Attachment 13, Pages 1-79)

RECOMMEND APPROVAL CONTINGENT UPON THE APPROVAL OF THE SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT GOVERNING BOARD

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Item 14 Silver Harbor Ranch, Inc./Royce Option Agreement/FWCC/Lake Wales Ridge Wildlife and Environmental Area

REQUEST: Consideration of an option agreement to acquire 2,512 acres (subject to the sellers’ right to retain up to 165 acres, as set forth below) adjoining the Lake Wales Ridge Wildlife And Environmental Area by the Florida Fish and Wildlife Conservation Commission under the Preservation 2000 program from Silver Harbor Ranch, Inc., Raymond W. Royce, Catherine S. Royce and Raymond D. Royce.

COUNTY: Highlands

APPLICANT: Florida Fish and Wildlife Conservation Commission (FWCC)

LOCATION: Sections 32 and 33, Township 35 South, Range 30 East; and Sections 03, 04, 05, 08, 09 and 10, Township 36 South, Range 30 East

CONSIDERATION: $6,496,250

* Subject to the sellers’ right to retain up to 165 acres.

** The appraiser has assigned a value of $6,533,000 to the ranch excluding the area the seller has reserved the right to retain

and the $12,000 value of the improvements the seller is removing.

*** The owners have held title to the property for nearly a century.

**** $2,767/acre for 2,347 acres.

STAFF REMARKS: This acquisition was negotiated by FWCC under the P2000 program. FWCC approved the acquisition on June 7, 2001. This property adjoins the Lake Wales Ridge Wildlife And Environmental Area and is on the current FWCC acquisition list.

The seller initially agreed to sell the entire 2,512 acres for $6,900,000. Subsequently, the seller requested the right to retain title to a portion of the property, not to exceed 165 acres in total, prior to closing. The portion of the property the seller has reserved for retention was included in the appraisal of the ranch as a whole. For this reason, staff requested the approved value appraiser to assign a value to the ranch excluding the area designated for retention by the seller. The purchase price was reduced to reflect the decrease in acreage.

All mortgages and liens will be satisfied at the time of closing. Improvements on the site include an office building, a picnic pavilion, an old lodge, two mobile homes, a barn, cattle pens, kennels, a sporting clay tower, irrigation pumps and sheds. The seller will retain ownership of and shall, within 120 days after closing, remove the mobile homes, the rustic lodge, and cattle pens. FWCC, the future managing agency, plans to evaluate and review the remaining improvements for their potential use and historical value during the development of

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Item 14, cont.

the management plan for the property. The property is encumbered with a 50-foot easement for ingress/egress between Virginia Avenue and Lake Istokpoga. According to the appraisers, this easement does not measurably impact the value of the property. There is a hunting lease on the property that will be canceled prior to 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.

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

Silver Harbor Ranch, Inc., consists of 2,512 acres along the western shoreline of Lake Istokpoga in Highlands County. The ranch has been primarily used for cattle grazing, sporting operations, and citrus production in recent years. While approximately nine percent of the ranch, or 223 acres, has been converted to citrus farming, approximately 91 percent, or 2,286 acres, of the property is still intact in native habitat and rangeland pasture. Both the Lake Wales Ridge Wildlife And Environmental Area and the Lake Istokpoga Fish Management Area adjoin the site.

Although portions of the tract have been grazed or disturbed for agricultural use in the past, the ranch is an excellent example of the transition from the Highlands Ridge to the Istokpoga-Indian Prairie physiographic regions, and maintains high habitat diversity. The principle natural vegetation types on the property include sandhill, xeric oak scrub, live oak hammock, slash pine flatwoods, cutthroat grass seep, scrubby flatwoods, bayswamp, swamp thicket, meadow, freshwater marsh, and open upper and lower beach zones of Lake Istokpoga. The endangered cutthroat grass seep located on the property is believed to be the largest and best example of this vegetation type remaining within Florida, which is not in public ownership or otherwise protected.

The Silver Harbor Ranch provides important habitat for a number of listed species. The Florida Natural Areas Inventory has conducted surveys for rare plants and has identified at least ten listed plant species that occur on the ranch. Listed wildlife species documented on the ranch include the Florida black bear, bald eagle (at least two nests), Florida sandhill crane, gopher tortoise, Florida scrub jay, Eastern indigo snake, Sherman’s fox squirrel, wood stork, and sand skink. In addition, based on the presence of suitable habitat and nearby populations, it is believed that additional listed wildlife species, including the Florida mouse, bluetail mole skink, swallow-tailed kite, crested caracara, and limpkin also inhabit the ranch.

The ranch also contains an important archaeological site, a ceremonial and burial mound used by the Pre-Columbian Indians that lived in the region approximately 2,000 years ago. Evidence collected from the site indicates that the mound was used between 1 and 350 A.D., and shows that these early people traded with other Native American groups from the middle Mississippi Valley. This mound is one of the earliest burial mounds identified in this part of the state.

Acquisition of Silver Harbor Ranch will preserve significant natural and historical resources, provide additional habitat that is important to the conservation of many rare and endangered species of wildlife, and protect over four miles of Lake Istokpoga’s shoreline, which is currently undergoing a $3 million FWCC lake restoration project. The acquisition will also connect the Lake Wales Ridge Wildlife And Environmental Area with the Lake Istokpoga Fish

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Item 14, cont.

Management Area, increase public access, provide excellent fish- and wildlife-oriented recreation, create a more complete pattern of ownership for the wildlife environmental area, and enhance the overall management of the Lake Wales Ridge Wildlife And Environmental Area and the Lake Istokpoga Fish Management Area.

The property will be managed by FWCC as an addition to the Lake Wales Ridge Wildlife And Environmental Area for natural resource conservation and resource-based public outdoor recreation within a multiple use management regime.

This acquisition is subject to Preservation 2000 funding being available and may be withdrawn prior to Cabinet consideration.

This acquisition is consistent with section 187.20(10), the Natural Systems and Recreational Lands section of the State Comprehensive Plan

(See Attachment 14, Pages 1-63)

RECOMMEND APPROVAL

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