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AGENDA
BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND
SEPTEMBER 10, 2002

Substitute Page

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Substitute Item 1 Chapter 18-21 Amendments/Rulemaking/State-owned Springs/Springs Run

WITHDRAWN FROM THE MAY 15, 2001 AGENDA
DEFERRED FROM THE MARCH 29, 2001 AGENDA

REQUEST: Consideration of initiating rule making to amend chapter 18-21, F.A.C., to establish management policies, standards, and criteria when reviewing requests for authorization of activities at state-owned springs and spring runs.

APPLICANT: Department of Environmental Protection (DEP)

COUNTY: Statewide

STAFF REMARKS: Recognizing the importance of Florida's springs, both sovereignty and deed-owned, the Legislature appropriated $2,530,439 in the FY 01/02 and FY 02/03. The funding provides for additional water quality monitoring and scientific information, and development and implementation of protective measures at springs.

The impetus for the Springs Initiative is the final report and recommendations for the Florida Springs Task Force (Task Force). The Task Force consisted of sixteen representatives from federal, state and regional agencies, universities, and the private sector, and was created to review environmental, social, and economic issues associated with Florida's springs and to recommend strategies for their protection, enhancement, preservation, and restoration. The Task Force met monthly from September 1999 to September 2000, and produced a final report containing strategies and action steps for public outreach, scientific monitoring, management, regulation, and funding of these initiatives.

Considering the current usage of springs and possible future developments around springs, together with the Task Force's report, DEP staff has developed "Best Management Practices" for the protection of state-owned springs and spring runs. If approved, staff will publish a notice of proposed rule development regarding incorporating specific standards and criteria for authorizing activities at state-owned springs. The notice will include an opportunity for public comment and public workshop. Additionally, staff will continue to look for and consider alternative or additional methods for protecting, enhancing, preserving and restoring the state-owned springs of Florida.

(See Attachment 1, Page 1)

RECOMMEND APPROVAL

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Item 2 Intus Holding A.G., Inc. Option Agreement/North Key Largo Hammocks Florida Forever Project

REQUEST: Consideration of an option agreement to acquire 1.53 acres within the North Key Largo Hammocks Florida Forever project from Intus Holding A.G., Inc.

COUNTY: Monroe

LOCATION: Section 31, Township 60 South, Range 40 East

CONSIDERATION: $368,000

APPRAISED
BY
SELLER'S
TRUSTEES'
Hrabko
Marr
APPROVED
PURCHASE
PURCHASE
OPTION
PARCEL
ACRES
(02/07/02)
(02/08/02)
VALUE
PRICE
PRICE
DATE
Intus Holding
1.53
$420,000
$400,000
$420,000
$800,100*
$368,000**
150 days after
(88%)
BOT approval

* Purchased on June 18, 1997
**$240,523 per acre

Board of Trustees
Agenda - September 10, 2002
Page Two

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Item 2, cont.

STAFF REMARKS: The North Key Largo Hammocks is an "A" group project on the Florida Forever Small Parcels Project List approved by the Board of Trustees on August 27, 2002. This project contains 4,513 acres, of which 4,271.80 acres have been acquired or are under agreement to be acquired by the Board of Trustees. After the Board of Trustees approves this agreement, 239.67 acres or five percent of the project, will remain to be acquired.

This parcel is improved with three partially completed residential dwellings. These dwellings were permitted in the early 1990's. The builder abandoned the project after completion of the exterior walls and no further work was completed. There is also a seawall and a paved drive as well as miscellaneous wood docks along the eastern shoreline of the lagoon. Both appraisers took the improvements into consideration when determining the values. The Department of Environmental Protection's (DEP) Division of Recreation and Parks, (DRP) the future managing agency, has determined that the improvements will not affect the management of the property.

The appraisals were obtained by the Monroe County Land Authority pursuant to a multi-party acquisition agreement. Once the appraisals were received, Monroe County's financial commitments did not allow completion of the negotiations. DEP's Division of State Lands agreed to complete the acquisition based on the appraisals provided by Monroe County.

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

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

The West Indian hardwood forest of the Florida Keys, unique in the United States, is shrinking as development intensifies. The North Key Largo Hammocks project will protect the largest strand of this forest left, with its many tropical plants and rare animals including the endangered American Crocodile; help protect the irreplaceable coral reef in John Pennekamp Coral Reef State Park and the Florida Keys National Marine Sanctuary from the effects of uncontrolled development; and conserve an area where the public can enjoy the original landscape of these subtropical islands.

This property will be managed by DRP as a trailhead for the Florida Keys Overseas Heritage Trail.

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 2, Pages 1-17)

RECOMMEND APPROVAL

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Item 3 South Florida Land Holdings LLC vs. BOT Settlement Agreement

DEFERRED FROM THE AUGUST 27, 2002 AGENDA

REQUEST: Consideration of a land exchange for Florida Forever "A" List lands existing within the Cape Haze/Charlotte Harbor Florida Forever Acquisition Project and proposed settlement in the case of South Florida Land Holdings LLC v. Board of Trustees of the Internal
Improvement Trust Fund. Twentieth Judicial Circuit (Charlotte County) Court Case No. 01-1262 CA.
Board of Trustees
Agenda - September 10, 2002
Page Three

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Item 3, cont.

COUNTY: Charlotte

APPLICANTS: Department of Environmental Protection, Division of State Lands, and South Florida Land Holdings, LLC

LOCATION: The Board of Trustees to receive lands located in Sections 14, 23, 24, 25 and 36, Township 41 South, Range 21 East. Jointly-held Board of Trustees/Southwest Florida Water Management District lands located in Sections 3, 9 and 10, Township 41 South, Range 21 East, to be exchanged.

STAFF REMARKS: On December 16, 1986, the Board of Trustees approved agenda item number 27 (BLA Review number 86-042-741), attached hereto as Exhibit "A", wherein the Board of Trustees accepted General Development Corporation's ("GDC") donation of approximately 414 acres of land located in Charlotte County, Florida. To effectuate this donation, on September 20, 1988, a special warranty deed was executed by and between GDC and the Board of Trustees; however, because Department staff determined the deed contained unacceptable conditions, the deed was not recorded. The conditions required the Board of Trustees to be responsible for all delinquent taxes and special assessments and also restricted certain Board of Trustees' activities.

November 17, 1989, Department staff correspondence indicates that the land donation had "not closed due to problems with the language contained within the deed." Accordingly, Department staff continued to work with GDC on acceptable deed language. GDC, however, was unwilling to cooperate, thus complicating and impeding Department staff's attempt to finalize the donation. GDC's untimely 1990 bankruptcy, wherein GDC was reorganized into Atlantic Gulf Communities Corporation ("AGCC") - Case No. 90-12231-BKC-AJC, further complicated Department staff's attempts to finalize the donation.

The Department staff again attempted "to complete and finalize the donation." Final correspondence between Department staff and AGCC took place in late 1997 and early 1998. The Department staff asked AGCC if the subject property was "still available to be donated." AGCC failed to respond to Department staff's correspondence. The brief chronology above characterizes the challenges Department staff confronted in its attempt to close the 1986 land donation. In summary, a billion dollar bankruptcy and corporate reorganization, coupled with Department staff turnover during the 1990's, precipitated the circumstances involved in this litigation.

Because GDC and its successor in interest, AGCC, failed to cooperate with Department staff in finalizing acceptable deed language, Department staff never recorded the deed. Consequently, when South Florida Land Holdings, LLC (SFLH) purchased the property from AGCC in 1999, SFLH's review of the chain of title did not reveal any prior recorded interests in favor of the Board of Trustees.

During the Fall of 2000, SFLH applied to the Charlotte County Board of Zoning Appeals ("BZA") and requested a special exception to build a marina on the subject property. The Department's Charlotte Harbor Aquatic and State Buffer Preserves' staff received notice of the request and informed Charlotte County that the subject property was state-owned. As a result, in July of 2001, SFLH filed a quiet title action against the Board of Trustees alleging that it owned the property donated to the Board of Trustees in December of 1986.

The Board of Trustees answered SFLH's July 2001 complaint and raised several affirmative defenses. The Court ordered the parties to attempt to mediate the title dispute. Settlement discussions between the parties ensued during the late Fall of 2001, premised upon the notion of a potential land exchange.

Board of Trustees
Agenda - September 10, 2002
Page Four

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Item 3, cont.

Subject to the Board of Trustees' approval, the parties have agreed to the terms described in the settlement agreement attached to this item as Exhibit "B." This agreement resolves all pending and future litigation, costs, attorneys' fees, and interest. In the initial exchange, the Board of Trustees receive approximately 456 acres of Florida Forever "A" List lands in exchange for approximately 210 acres of jointly-owned Board of Trustees/Southwest Florida Water Management District (Board of Trustees/SWFWMD) lands. The jointly-held Board of Trustees/SWFWMD lands present Department staff with consistent and long-term management problems. Specifically, the 210 acres are lands created by upland spoil, which left little natural habitat and a large, invasive plant infestation. Accordingly, Department staff supports exchanging the 210 acres. The SWFWMD's Governing Board approved this settlement agreement at its June 25, 2002, meeting. See signature page of Exhibit "B." Note, also, that in addition to the initial land exchange, the settlement agreement includes a provision (paragraph 5.d.), which requires that the acreage received by the Board of Trustees is equivalent in monetary value to the 210 acres exchanged.

The overview map, attached hereto as Exhibit "C," shows the lands that are being exchanged in the settlement agreement. The map also depicts additional Florida Forever "A" List lands - or lands contiguous to "A" List lands - that have been identified by the Charlotte Harbor Aquatic and State Buffer Preserves' land manager. These additional lands have been identified by the land manager to comply with paragraph 5.d. of the settlement agreement. Finally, the map displays the desired route of mutual easements that are required to access the "BOT Lands." The "BOT Lands" are defined in paragraph 2.g. of the Settlement Agreement, attached hereto as Exhibit "B."

The "BOT Lands" and the additional Florida Forever lands are all located in, or contiguous to, the Cape Haze/Charlotte Harbor Florida Forever "A" list project. Both the "BOT Lands" and the additional Florida Forever lands have been identified by Department staff as essential properties. The "BOT Lands" and additional Florida Forever lands included in the settlement agreement provide essential additions to lands previously acquired through the Environmentally Endangered Lands Program of the 1970s and the Save Our Rivers Program of the 1980s. Most of the lands are wetlands, including mangrove, salt marsh, and salt flats, with occasional uplands including pine flatwoods, and scrub habitats. These lands will aid in the protection or "buffering" of state waters, primarily the Cape Haze and the Gasparilla Sound/Charlotte Harbor Aquatic Preserves, as well as improve the protection and recreational value of the existing state- owned lands. They will also provide a land base for public access by improving connectivity between and among existing state-owned lands. This settlement agreement benefits the Charlotte Harbor area and enhances the management objectives of the Cape-Haze/Charlotte Harbor "A" Listed Project.

Charlotte Harbor, one of the largest and most productive estuaries in Florida, supports an important recreational and commercial fishery, but is rapidly being surrounded by urban development. By conserving coastal wetlands, flatwoods and prairies behind mangrove swamps and salt marshes along Charlotte Harbor, the Cape-Haze/Charlotte Harbor project will help preserve the water quality of the estuary and protect habitat for the Florida manatee and other rare wildlife. In addition, citizens are provided opportunities for public access to enjoy passive, nature based recreational pursuits.

The primary objective of management of the Charlotte Harbor State Buffer Preserve is to preserve and restore the natural systems surrounding Charlotte Harbor. This settlement agreement will aid the Board of Trustees in other specific management objectives, such as helping Department staff to protect the water quality of Charlotte Harbor and its important nursery areas for fish, shellfish and manatee habitat and, also, by providing the public with additional areas for natural-resource-based recreation.

Board of Trustees
Agenda - September 10, 2002
Substitute Page Five

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Item 3, cont.

In sum, the land exchange contemplated in the settlement agreement will accomplish the multiple objectives of acquiring essential lands identified for acquisition under the Florida Forever program, increasing public access to Board of Trustees' lands, and settling the ongoing litigation. Additionally, the combined Board of Trustees and SWFWMD efforts embodied in this agreement demonstrates an interagency commitment that advances two interdependent objectives: (1) natural resource enhancement and protection; and (2) increased natural resource management efficiency.

The Office of Coastal and Aquatic Managed Areas will manage the lands acquired in the settlement agreement as part of the Charlotte Harbor Aquatic and State Buffer Preserves.

These lands acquired as part of this settlement agreement are consistent with Section 187.201 (10), Florida Statutes, the Natural Systems and Recreational Lands' section of the State Comprehensive Plan.

(See Attachment 4 submitted with the August 27, 2002 Agenda)

RECOMMEND APPROVAL OF THE SETTLEMENT AGREEMENT WHICH PROVIDES FOR THE EXCHANGE OF APPROXIMATELY 456 ACRES FOR APPROXIMATELY 210 ACRES OF JOINTLY- OWNED BOARD OF TRUSTEES/SWFWMD LANDS

RECOMMEND APPROVAL

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