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Item 1 DCF/City of Pembroke Pines/Psychotherapeutic Services of Florida, Inc. Sub-Sublease Agreements/Competitive Bid Determination

REQUEST: Consideration of (1) a request by the Department of Children and Families to approve three sub-sublease agreements between the City of Pembroke Pines and Psychotherapeutic Services of Florida, Inc.; and (2) a determination that an award of the sub-subleases without conducting a competitive bid is in the public interest pursuant to section 18-2.018(2)(i), F.A.C.

COUNTY: Broward
Subsublease No. 2628-14-1A – Glades Quad
Subsublease No. 2628-14-1B – Dade Building
Subsublease No. 2628-14-1C – Polk Building

APPLICANTS: Department of Children and Families (DCF), City of Pembroke Pines (City) and Psychotherapeutic Services of Florida, Inc. (PSFI)

LOCATION: Section 16, Township 51 South, Range 41 East; Glades Quad encompassing seven buildings containing 34,239 square feet; Dade Building containing 6,240 square feet; and Polk Building containing 24,530 square feet

CONSIDERATION: PSFI will pay the City $10 per square foot, per year, plus utilities as follows:

Glades Quad: 34,239 square feet at $10 per square foot = $342,390 annually
Dade Building: 6,240 square feet at $10 per square foot = $ 62,400 annually
Polk Building: 24,530 square feet at $10 per square foot = $245,300 annually
TOTAL = $650,090 annually

STAFF REMARKS: DCF currently leases the 300-acre, more or less, South Florida State Hospital (SFSH) in Broward County under Board of Trustees Lease Number 2628. On July 1, 2001, DCF entered into a 50-year sublease with the City for 174.254 acres for the purpose of establishing, operating and maintaining a Health-Care Park.

Prior to the City’s sublease, DCF had subleased the 6,240 square foot Dade Building for one year to Psychotherapeutic Juvenile Services (now renamed PSFI) for the establishment and operation of a residential community program under contract with the Department of Juvenile Justice (DJJ). The sublease was extended for an additional year through June 14, 2001. PSFI, at DCF’s request, submitted a letter of intent to enter into a new sub-sublease for the Dade Building with the City to commence on July 1, 2001, subject to an increase in rent from $4.30 per square foot per year to $10 per square foot per year. The City and PSFI have been working to finalize the new subsublease for the Dade Building, as well as two additional sub-subleases for the Glades Quad, consisting of seven buildings totaling 34,239 square feet, and the Polk Building, containing 24,530 square feet. Each sub-sublease is for a different DJJ program. The Dade Building is the site of the South Florida Intensive Halfway House (SFIHH). SFIHH is a juvenile correctional facility with a capacity to serve 20 high-risk delinquent females committed to DJJ by the courts. The Glades Quad is the site of the Thompson Academy (Academy). The Academy is a juvenile residential facility with a capacity to serve 80 moderate risk delinquent males. The Polk Building is the site of the South Pines Academy (SPA). The SPA is a juvenile residential facility with a capacity to serve 72 moderate risk delinquent males.

Initially thought to be a non-profit corporation, Department of Environmental Protection, Division of State Lands (DSL) staff has since verified that PSFI is a for-profit corporation. DSL does not have delegated authority to approve sub-subleases greater than one-quarter acre in size to for-profit entities. For this reason, approval of the three sub-subleases is being submitted to the Board of Trustees for approval. Pursuant to section 18-2.018(1)(i), F.A.C., the Board of Trustees shall authorize uses of uplands that will generate income or revenue to a private user, or
Board of Trustees
Agenda – December 11, 2002
Page Two

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Item 1, cont.

will limit or preempt use by the general public, on the basis of competitive bidding unless the Board of Trustees determine it to be in the public interest to do otherwise. DJJ has contracted with PSFI to carry out its programs. DJJ currently also subsubleases land from the City for administrative services associated with its programs. Although PSFI could lease land elsewhere, it is preferable to have it co-located with DJJ’s administrative facilities, which will allow onsite DJJ staff to oversee its contractors and keep the three programs in one central location. PSFI’s proposed use is also consistent with the intent of the City’s Health-Care Park. The City has negotiated with PSFI to pay ten dollars per square foot, plus utilities, for its facilities. This rate is based on Department of Management Services rates and is available to all providers at the facility. For these reasons, DSL staff believes that it is in the public interest to sub-sublease directly to PSFI without competitively bidding.

Pursuant to section 18-2.018(1)(a), F.A.C., the decision to authorize the use of Board of Trustees-owned uplands requires a determination that such use is not contrary to the public interest. PSFI provides a wide variety of behavioral health services through more than 40 different programs that operate under private-public partnerships with state and local governments. Collectively, these programs provide behavioral health treatment, rehabilitation, and support services to children, adolescents, adults, and families. PSFI will provide its services to DJJ in the implementation of DJJ’s juvenile treatment programs. For this reason, DSL staff believes the proposed sub-subleases are not contrary to the public interest.

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. A compliance agreement between DCA and the City has been finalized. The proposed action is consistent with the adopted plan according to a letter received from the City of Pembroke Pines.

(See Attachment 1, Pages 1-166)

RECOMMEND APPROVAL

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Item 2 Lorraine Pickett/Joseph Clark Purvis Conveyance

REQUEST: Consideration of a request to convey ten parcels totaling 18.32 acres of state-owned land in Nassau County to Lorraine Pickett and Joseph Clark Purvis.

COUNTY: Nassau
Deed No. 30941
Deed No. 30947

APPLICANTS: Lorraine Pickett and Joseph Clark Purvis

LOCATION: Section 14, Township 01 North, Range 24 East and Section 08, Township 03 North, Range 24 East

CONSIDERATION: $18,775 to be deposited into the Internal Improvement Trust Fund

Board of Trustees
Agenda – December 11, 2002
Substitute Page Three

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Item 2, cont.

STAFF REMARKS: The Board of Trustees originally acquired these parcels of land pursuant to chapter 18296, 1937 Laws of Florida, known as the Murphy Act. The act provided for statutory forfeiture of lands for nonpayment of taxes. Tax certificates unredeemed as of June 9, 1939 were automatically converted to fee simple title in the name of the state. Pursuant to section 253.82, F.S., land (1) to which title is vested in the Board of Trustees through provisions of the Murphy Act, (2) which is 10 acres or less in size, and (3) which has an appraised market value of $250,000 or less, is hereby declared surplus, except for lands determined to be needed for state use.

Pursuant to section 253.034(6)(h), F.S., lands determined to be surplus, which were acquired by a unit of government by gift, donation, grant, quitclaim deed, or other such conveyance where no monetary consideration was exchanged, may be sold based on one appraisal.

In accordance with section 253.111, F.S., Nassau County and state agencies were notified of the sale and did not express any interest in the property.

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 2, Pages 1-24)

RECOMMEND APPROVAL

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Substitute Item 3 Florida Board of Education/Manatee County School Board Conveyance

REQUEST: Consideration of a request by the Florida Board of Education to convey a 195.32-acre parcel of state-owned land in Manatee County to the Manatee County School Board.

COUNTY: Manatee
Deed No. 30965

APPLICANT: Manatee County School Board (MCSB)

LOCATION: Sections 10, 11, 14 and 15, Township 35 South, Range 18 East

CONSIDERATION: $11,990,000 to be deposited in the Institute of Food and Agricultural Sciences Relocation and Construction Trust Fund.

STAFF REMARKS: The 1987 Legislature charged the Florida Board of Regents with analyzing the effectiveness of transmitting the UF/IFAS programs/research to industries in the state through extension services. The study was completed and approved by the Board of Regents 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 the Board of Regents, 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 UF/IFAS agricultural research facilities. The powers
Board of Trustees
Agenda – December 11, 2002
Substitute Page Four

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Substitute Item 3, cont.

and duties of the Board of Regents have been merged into the Florida Board of Education (BOE) under provisions of subsection 1000.01, Florida Statutes.

The Gulf Coast Research and Education Center (GCREC) was established at two locations in 1925 as a joint venture between the State of Florida, Hillsborough County, Manatee County and other agricultural interests across central and southwest Florida, the U.S. and the world. The locations have changed over the years with GCREC (Bradenton site) moving to its present location in 1965 and GCREC (Dover site) moving to its present location in 1960.

The Board of Regents and Legislative reviews in 1986 and 1987-88, and most recently the Office of Program Policy Analysis and Government Accountability, mandated the development of comprehensive centers strategically located throughout the state. The centers will provide a critical mass of faculty services and facilities to increase information and technology transfer capability to clientele and reduce response time for dealing with critical state and agricultural industry problems. As a result of these studies, and a study performed by UF/IFAS “The Effectiveness of the Organizational Structure of the University of Florida Institute of Food and Agricultural Sciences”, it was decided to be in the best long-term interests of GCREC to consolidate the two locations. Additionally, due to the poor conditions of the facilities and problems associated with urban encroachment at both present locations, it was determined to be cost-effective to dispose of both the Bradenton and Dover sites and move to a new location.

The subject property consists of 195.32 acres, more or less, known as the GCREC and was originally acquired by Legislative mandate under chapter 67-269, Laws of Florida as amended by chapter 67-2236, Laws of Florida, whereby the Board of Regents deeded its interests in the property to the Board of Trustees. The Board of Regents, now the BOE, has been the managing agency of the property since March 1972 and has utilized the lands for mid-winter plantings of vegetables, ornamental research plots and other research related work under the UF/IFAS.

MCSB desires to purchase the 195.32 acres to construct, maintain and operate a county high school and also has the funds secured to purchase the property. In an effort to meet MCSB’s construction deadline of no later than April 2003 to break ground, DSL and UF/IFAS staff have been working with MCSB to expedite the sale of this property. The BOE approved the surplus and sale of the property at its October 24, 2002 Board Meeting.

Pursuant to section 253.034(6)(f), F.S., in reviewing lands, the Acquisition and Restoration Council (ARC) shall consider whether the lands would be more appropriately owned or managed by the County or other unit of local government in which the land is located. ARC shall recommend to the Board of Trustees whether a sale, lease or other conveyance to a local government would be in the best interests of the state and local government. At its October 23, 2002 Meeting, ARC approved the recommendation that this property be sold to MCSB.

Pursuant to section 253.034(6)(e), F.S., prior to any decision by the board to surplus lands, ARC shall review and make recommendations to the board concerning the request for surplusing. ARC shall determine whether the request for surplusing is compatible with the resource value of and management objectives for such lands. This request was reviewed by ARC at its October 23, 2002 Meeting. ARC recommended that the Board of Trustees surplus and sell the subject property.

Pursuant to section 253.034(6)(h), F.S., where a unit of government acquired land by gift, donation, grant, quit-claim deed, or other such conveyance where no monetary consideration was exchanged, the price of land sold as surplus may be based on one appraisal. In the event that a single appraisal yields a value equal to or greater than $1 million, a second appraisal is required. Since the subject property was conveyed to the Board of Trustees without monetary
Board of Trustees
Agenda – December 11, 2002
2nd Substitute Page Five

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Substitute Item 3, cont.

consideration, the property’s fair market value from the two appraisals was determined to be $11,990,000.

In accordance with section 253.111, F.S., the County was 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. Additionally, state agencies were noticed. The Department of Environmental Protection (DEP) received only one letter of concern from a nearby property owner expressing concern that future new property owners make provisions to deal with a drainage ditch problem which occurs during heavy rains. Division of State Lands staff prepared and sent a response to the writer and copied MCSB with both letters. No other serious inquiries or concerns were received by the end of the noticing period.

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

(See Attachment 3, Pages 1-26)

RECOMMEND APPROVAL

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Substitute Item 4 DHSMV/Gulf Coast Community College Exchange

REQUEST: Consideration of an after-the-fact request to exchange 2.81 acres of state-owned land for 5.583 acres more or less, of land owned by Gulf Coast Community College in Bay County.

COUNTY: Bay
Deed No. 40097

APPLICANTS: The District Board of Trustees of Gulf Coast Community College (GCCC), a political subdivision of the State of Florida, and the Florida Department of Highway Safety and Motor Vehicles (DHSMV)

LOCATION: Section 07, Township 03 South, Range 13 West

CONSIDERATION: $500,000 to be deposited into the Internal Improvement Trust Fund by GCCC and then transferred to the DHSMV Grants and Donations Trust Fund.

STAFF REMARKS: Pursuant to chapter 253.03, the subject 2.81-acre parcel of state-owned property was acquired on December 1, 1970 for the DHSMV and has been used as a Florida Highway Patrol (FHP) Station and Driver’s License Office since that time. Due to the need
Board of Trustees
Agenda – December 11, 2002
Substitute Page Six

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Substitute Item 4, cont.

for relocation of the Highway Patrol Station in Bay County and the need for GCCC campus expansion, the DHSMV and the GCCC entered into negotiations to facilitate the transfer of GCCC property located on County Road 2321 (CR 2321) in return for the state-owned FHP property located adjacent to the GCCC campus off of Highway 98 and Moody Avenue. The state-owned property is currently leased to DHSMV from the Board of Trustees under lease number 2478.

Pursuant to section 18-2.018(3)(b)4.a.b., F.A.C., a state agency may apply for an exchange of state-owned lands for a parcel of privately-owned uplands by certifying that it needs a parcel of private land for a particular use; and that it manages uplands vested in the Board of Trustees which it wishes to use for a state agency exchange.

The DHSMV submitted a letter of request to the Department of Environmental Protection (DEP) for the land exchange with GCCC in December 1999. The 2.81-acre state-owned parcel is not designated as conservation and will be used by GCCC to expand its campus. The land owned by GCCC is approximately 5.583 acres, more or less, and was undeveloped until the DHSMV built the new FHP Station on GCCC’s property in 2000-2001. The DHSMV had determined that its existing buildings were in need of major repairs and that relocation and replacement of the facilities would be more cost effective than repairing them. Additionally, the CR 2321 property became available and provided for a better location for the FHP. In anticipation of this transfer of title and because of a limited time for expending funds and acquiring the property on CR 2321, DHSMV commenced with building the new FHP Station off of CR 2321. Currently, the new FHP station is complete and the land title transfer is near completion.

For Fiscal Year 2000-2001, House Bill 2145 appropriated funds of an amount not to exceed $555,499 to GCCC for the acquisition of land adjacent to their campus, with the understanding these funds would be transferred to DHSMV to be used as a portion of the construction costs of the new facility. That appropriation was based upon a limited appraisal performed in December of 2000. The appraisal included more land than the 2.81 acres of state-owned land being considered for the exchange. However, $500,000 of the appropriation is the final negotiated amount, based upon this legislation.

Pursuant to chapter 253.034(6)(e) F.S., this request was also reviewed for consideration by the Acquisition and Restoration Council (ARC) during its October 17, 2000 meeting. ARC recommended approval of the land exchange on the consent agenda.

Pursuant to section 253.115(1) F.S., property owners within 500 feet of the subject properties were notified of the exchange on July 5, 2000. No inquiries or objections were received by the end of the noticing period.

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 land exchanges are not subject to the local government planning process.

(See Attachment 4, Pages 1-13)

RECOMMEND APPROVAL

Board of Trustees
Agenda – December 11, 2002
Page Seven

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Item 5 St. Joe Timberland Company of Delaware, L.L.C. Option Agreement/ DACS/DOF’s Florida Forever Inholdings and Additions Program

REQUEST: Consideration of an option agreement to acquire 602 acres adjoining the Lake Talquin State Forest within the Department of Agriculture and Consumer Services, Division of Forestry’s Florida Forever Inholdings and Additions Program from St. Joe Timberland Company of Delaware, L.L.C.

COUNTY: Gadsden

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

LOCATION: Sections 02, 11 and 14, Township 01 North, Range 03 West

CONSIDERATION: $1,175,706

* Unknown, property is part of a larger parent tract
** $1,953 per acre

STAFF REMARKS: This acquisition was negotiated by DOF. The Lake Talquin State Forest has been identified on DOF’s approved Florida Forever Inholdings and Additions list.

All mortgages and liens will be satisfied at the time of closing. There is an easement in favor of Florida Gas Transmission Company and an easement in favor of Florida Power Corporation on the property. DOF has determined that these two easements will not adversely affect management of the property. Prior to closing, St. Joe Timberland shall attempt to have the easements released. 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. Because these issues were discovered during preliminary due diligence, further research may change the facts and scope of each issue and, therefore, DEP staff will review, evaluate and implement an appropriate resolution for these and any other title issues that arise prior to closing.

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

This tract will be managed as an addition to the Lake Talquin State Forest. The acquisition of this 602-acre tract will significantly improve the overall management of the forest. This acquisition provides additional access, ensures a more manageable boundary, and affords additional natural resource conservation and outdoor recreation activities under a multiple use management regime.

The parcel will be managed by DOF as part of the Lake Talquin State Forest.

This acquisition is consistent with section 187.201(22), F.S., the Agriculture section of the State Comprehensive Plan.

(See Attachment 5, Pages 1-40)

RECOMMEND APPROVAL

Board of Trustees
Agenda – December 11, 2002
Substitute Page Eight

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Substitute Item 6 Silver Springs Shores Land Trust Ltd. Option Agreement/Heather Island Preserve Greenways and Trails Florida Forever Project

REQUEST: Consideration of an option agreement to acquire 214.50 acres within the Heather Island Preserve Greenways and Trails Florida Forever project from Silver Springs Shores Land Trust Ltd.

COUNTY: Marion

LOCATION: Sections 03, 10 and 15, Township 16 South, Range 23 East

CONSIDERATION: $2,000,000

* There was an internal transfer in 1997 for a purchase price of $1,450,000 per the documentary stamps on the deed. The property was purchased by one of the partners as trustee in 1996 as part of a larger acquisition and an additional 12 lots were purchased separately on May 15, 1999, for $22,000 per the documentary stamps on the deed.
** $9,324 per acre

STAFF REMARKS: The Heather Island Preserve Greenways and Trails Project has been identified on the Department of Environmental Protection (DEP), Office of Greenways and Trails’ (OGT) Florida Forever approved acquisition list. This acquisition was negotiated by the Division of State Lands on behalf of OGT under the Florida Forever Greenways and Trails program. The project contains 281.5 acres, of which these are the first to be acquired. After the Board of Trustees approves this agreement, 67.0 acres or 24 percent of the project will remain to be acquired.

All mortgages and liens will be satisfied at the time of closing. There are a total of 16 drainage easements indicated on the recorded plat for the property. The easements do not physically exist on the property at this time, but are on paper only and do not appear to be a factor. The appraisers considered the easements in the appraisal and determined that they did not impact value. The OGT has determined that the easements should not affect the management of the property. 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. Because these issues were discovered during preliminary due diligence, further research may change the facts and scope of each issue and, therefore, DEP staff will review, evaluate and implement an appropriate resolution for these and any other title issues that arise prior to closing.

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

This acquisition will provide a vital buffer to the adjacent 5,000-acre Marshall Swamp, which is owned by the Board of Trustees and managed by OGT as part of the Marjorie Harris Carr Cross Florida Greenway. It will also provide public access, which is currently non-existent, to Marshall Swamp for multi-use recreation and will provide a potential connection to other state lands managed by the St. Johns River Water Management District. OGT staff currently has access for management purposes to the north end of Marshall Swamp via a private agreement with Rayonier, Inc. Once public access is acquired, Marshall Swamp will be added as a unit to the Ocklawaha River Wildlife Management Area that was established this year through a partnership with the Florida Fish and Wildlife Conservation Commission. Marshall Swamp is a mixed wetland hardwood forest and marsh area with outstanding wildlife populations located along the west side of the Ocklawaha River.

Board of Trustees
Agenda – December 11, 2002
Substitute Page Nine

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Substitute Item 6, cont.

Located in the center of Marshall Swamp is a former 3,000-acre muck farm. Wildlife and waterfowl experts from the Florida Fish and Wildlife Conservation Commission, Ducks Unlimited, St. John’s River Water Management District, U.S. Fish and Wildlife Service and the U.S. Department of Agriculture have toured the former muck farm and determined that it has excellent potential for a waterfowl and wading bird management area.

The muck farm was established during the 1950's by the construction of a nine-mile long perimeter dike. It was briefly used for cattle grazing until a hurricane flooded the property in the early 1960's and was subsequently acquired for the Cross Florida Barge Canal project. Because this farm was short lived and did not involve the production of row-crops, there is no long-term accumulation of pesticides, herbicides and the associated problems that ensue when attempting to conduct wetlands restoration for wildlife. The primary limiting factor at this time is a lack of reasonable access to the public.

The Silver Springs Shores property is a parcel of high ground, comprised of oak hammock, xeric scrub, pine flatwoods, freshwater marsh and hardwood wetlands, that provides an area of refuge for all types of wildlife, including the Florida black bear, during periods of high water when the adjacent swamp is flooded.

If this property is not acquired, the subject area could potentially be developed which would impede public access to and adversely affect management of adjacent state-owned lands.

By providing public access to the multi-use recreational opportunities available in the Marshall Swamp area of the Cross Florida Greenway, this acquisition furthers the mission of OGT, which is “To facilitate the establishment of a statewide system of greenways and trails that provides all Floridians and visitors public access to a greenway or trail within 15 minutes of their home, workplace, or tourist destination. The recreational opportunities within this project include hiking and equestrian trails, and seasonal hunting. Trailhead facilities to support these activities will be provided.

OGT will be the manager of the property, which will be managed as an addition to the Marjorie Harris Carr Cross Florida Greenway.

OGT’S Application Process

Applicants apply for OGT’s 1.5 percent annual allocation of Florida Forever funding through a competitive application process. The applicants must meet criteria specified by statute (chapter 260, F.S.) and detailed by rule in chapter 62S-1, F.A.C. Applications are initially reviewed and assigned points by OGT staff and biologists and then forwarded to the Florida Greenways and Trails Council (Council) for review and approval. The Council consists of 21 members as outlined in chapter 260, F.S. At a public meeting, the Council evaluates and ranks the projects before recommending a final acquisition list. The list is then forwarded to the Secretary of DEP for final approval.

In order to be eligible, applicants must present a willing seller certificate for 80 percent of the ownership and a willing land manager certificate. Projects are evaluated based on several factors including their importance and function within the statewide system (see below); public access; whether the project is part of a planned phase of an existing or ongoing greenways or trails project; potential for cost sharing in acquisition, development, operation or maintenance; location (proximity to other publicly-owned lands, etc.); type of interest to be acquired (fee simple, less than fee, etc.), recreational opportunities to be provided; and ecological, historical and cultural features.

Board of Trustees
Agenda – December 11, 2002
Substitute Page Ten

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Substitute Item 6, cont.

The Statewide Plan for the Florida Greenways & Trails System

In 1999, the Florida Legislature adopted the five-year implementation plan for the Florida Greenways and Trails System. The broad vision underlying the plan is summed up in its subtitle, “Connecting Florida’s Communities with Greenways and Trails.”

This plan was developed through the work and consensus of a broad range of groups and stakeholders such as recreational users, conservation groups, private landowners, etc. The foundation for its development consists of various legislative actions and efforts that occurred throughout the more than 20 years prior to its adoption. OGT is charged with overseeing implementation of the plan in coordination with the Council.

A key component of the implementation plan includes the identification and prioritization of the ecological and recreational opportunity areas throughout the state. These areas have been identified, mapped and prioritized and are the basis for evaluating project applications.

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

(See Attachment 6, Pages 1-1-35)

RECOMMEND APPROVAL

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Item 7 Raymond E. Lee Option Agreement/Wekiva-Ocala Greenway Florida Forever Project

REQUEST: Consideration of an option agreement to acquire 346.82 acres within the Wekiva-Ocala Greenway Florida Forever project from Raymond E. Lee.

COUNTY: Lake

LOCATION: Sections 13, 14, 23 and 24, Township 18 South, Range 28 East

CONSIDERATION: $728,322

* Unknown, property was acquired through a family deed.
** $2,100 per acre

STAFF REMARKS: The Wekiva-Ocala Greenway project is an “A” group project on the Florida Forever Project List approved by the Board of Trustees on August 27, 2002. The project contains 74,359 acres, of which 39,740 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 34,272.18 acres or 46 percent of the project will remain to be acquired.

All mortgages and liens will be satisfied at the time of closing. There is an outstanding life estate in the oil, gas, and mineral reservations in favor of W.P. Edgerton. If necessary, the seller will extinguish this outstanding reservation prior to closing. The Wekiva River Protection Area prohibits any oil, gas or mineral mining. Therefore, the life estate in the oil, gas and mineral reservations was not considered to have a measurable affect on the market
Board of Trustees
Agenda – December 11, 2002
Substitute Page Eleven

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Item 7, cont.

value of the property This property has no legal access, which was considered by the appraiser, but can be accessed through adjacent state-owned land. The property also has a utility easement, several improvements including a small cabin and two barns, two septic tanks, and is under a monthly lease that will be terminated prior to closing. The appraiser took all these factors into consideration and determined that they had no affect on the value of the property. The Department of Agriculture and Consumer Services, Division of Forestry (DOF), has determined that it will be able to manage the property with the life estate, oil, gas and mineral reservations, improvements and utility easement, pursuant to the completion of the terms of the option agreement. 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. Because these issues were discovered during preliminary due diligence, further research may change the facts and scope of each issue and, therefore, DEP staff will review, evaluate and implement an appropriate resolution for these and any other title issues that arise prior to closing.

A title insurance policy, surveys, environmental site evaluations and, if necessary, environmental site assessments will be provided by the purchaser prior to closing.

The springs, rivers, lakes, swamps and uplands stretching north from Orlando to the Ocala National Forest are an important refuge for the Florida black bear, as well as other wildlife such as the bald eagle, swallow-tailed kite, Florida scrub jay and wading birds. Public acquisition of the Wekiva-Ocala Greenway will protect these animals, and the Wekiva and the St. Johns River basins by protecting natural corridors connecting Wekiwa Springs State Park, Rock Springs Run State Reserve, the Lower Wekiva River State Reserve and Hontoon Island State Park with the Ocala National Forest. It will also provide the people of the booming Orlando area with a large, nearby natural area in which to enjoy camping, fishing, swimming, hiking, canoeing and other recreational pursuits.

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

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

(See Attachment 7, Pages 1-36)

RECOMMEND APPROVAL

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Substitute Item 8 A. P. DeSalvo, Trustee Option Agreement/Estero Bay Florida Forever Project

DEFERRED FROM THE NOVEMBER 13, 2002 AGENDA

REQUEST: Consideration of an option agreement to acquire 60 acres within the Estero Bay Florida Forever project from A. P. DeSalvo, Trustee.

COUNTY: Lee

LOCATION: Section 20, Township 46 South, Range 25 East

CONSIDERATION: $1,800,000 (Board of Trustees’ share of the total purchase price of $2,000,000)

* Price based on past application to change the designation of the property on the Future Land Use Plan of Lee County
** Purchased property on 9/24/98
*** $30,000 per acre
Board of Trustees
Agenda – December 11, 2002
Substitute Page Twelve

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Substitute Item 8, cont.

STAFF REMARKS: The Estero Bay Florida Forever project is an “A” group project on the Florida Forever Full Fee Project List approved by the Board of Trustees on August 27, 2002. This project contains 15,572 acres, of which 6,705.9 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 8,806.1 acres or 57 percent of the project will remain to be acquired.

Mr. DeSalvo took title to the parcel as Trustee of the Estero 60 Acre Land Trust on September 24, 1998. Although he had purchased it from the Personal Representative of the Estate of Mabel T. Stephens a/k/a Mabel Stephens, a/k/a Mabel T. Stevens, deceased, it was an arms-length transaction. In the early spring of 1999, Mr. DeSalvo began the process for making application to the Board of Commissioners of Lee County (County Board) to amend the Future Land Use Map from Rural to Outlying Suburban, with plans to construct 120 dwelling units, 2 dwelling units per acre. His application for amendment to the Future Land Use Map was presented in the September 2000 County Board agenda cycle.

In September 2000, a boundary amendment to the Estero Bay project was submitted by the Department of Environmental Protection (DEP)’s Office of Coastal and Aquatic Managed Areas (CAMA) and approved at the October 17, 2000 Acquisition and Restoration Council meeting. This boundary amendment included an addition of 160 acres (4 owners of 4 parcels) to the Estero Bay project. Mr. DeSalvo’s parcel was one of the 4 parcels included within the amendment. Shortly after the project had been mapped, and before appraisals were ordered, the Estero Bay Florida Forever project shifted from a category “A” to a category “B” project, and all negotiation efforts with Mr. DeSalvo and other owners were placed on hold.

In January 2002, after a fourteen-month process, Mr. DeSalvo’s application to amend the Future Land Use Map was denied. The County Board made two recommendations and encouraged Mr. DeSalvo to re-apply in the September 2002 County Board agenda cycle, with the indication that should he comply with the recommendations, the application would be approved. Mr. DeSalvo committed to rezoning of the property to Residential Planned Community with a clustering of units, and providing central sewer to the site. Both of the appraisals reflect value based on the current Land Use Plan of Rural and Urban Community as well as the Outlying Suburban (Proposed Land Use Amendment) with the highest and best use being the residential development of approximately 120 dwelling units. Under the threat of immediate development, and in an effort to acquire this critical parcel, DEP’s Division of State Lands (DSL) staff negotiated and reached an agreement with Mr. DeSalvo. As part of the negotiations, Mr. DeSalvo agreed to withdraw his application plans for the 120 dwelling unit development in exchange for a quick closing. Recently, Mr. DeSalvo notified DSL staff he has proceeded with his application to amend the Future Land Use Map. Upon approval of this option agreement by the Board of Trustees, and prior to the closing date, he has agreed to withdraw this application.

In response to the Board of Trustees’ concerns about the price of land the state is attempting to acquire, Mr. DeSalvo and the beneficiaries of the trust have agreed to lower the purchase price by $50,000, for a total purchase price of $2,000,000; and on November 19, 2002, the County Board agreed to contribute $200,000 toward the acquisition.

On May 24, 2002, CAMA submitted an application to the U.S. Fish and Wildlife Service for a Coastal Wetlands Conservation Grant. The proposed federal grant assistance for the acquisition of the DeSalvo parcel will be $649,609, or 32 percent of the option price. $1,150,391, or 58 percent of the option price, will be paid from DEP’s Florida Forever Fund, and $200,000, or 10 percent of the option price, will be paid by Lee County. On August 27, 2002, the Board of Trustees approved authorization to encumber specific parcels as a condition of the federal grant and was contingent upon the Board of Trustees approving the respective acquisitions. CAMA expects approval of the grant within the next thirty days. Mr. DeSalvo
Board of Trustees
Agenda – December 11, 2002
Substitute Page Thirteen

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Substitute Item 8, cont.

has been advised of the pending application for federal funding and has agreed to the purchase price at less than appraised value.

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

The parcel is among the remaining essential acquisition properties within the Estero Bay Florida Forever project. The parcel contains pine flatwoods, palmetto prairie and freshwater cypress slough. The Mullock Creek Slough, a cypress slough that occurs in the northeastern and southeastern portions of the parcel, is a part of the greater water body, Mullock Creek, which is a tributary of Estero Bay. The parcel was added to the project boundary primarily due to the need to restore the slough. In addition to the nesting, feeding, roosting, cover and migration resting areas these communities provide, the state-threatened gopher tortoises occur on the property. Additionally, the site contains at least one state-threatened orchid species, the crestless plume orchid.

Estero Bay is one of the most productive estuaries in the state, and is the state’s first aquatic preserve, designated in 1966. Its mangroves shelter important nesting colonies of water birds, and feed and protect many aquatic animals. These animals, in turn, are the foundation of a commercial and sport fishery. Important archaeological remains of the Calusa Indians dot the area. Public Acquisition of the Estero Bay project will protect the bay’s water quality, its native plants and animals, its archaeological sites, and will provide recreational opportunities to the people of the rapidly growing Fort Myers area.

This property will be managed by CAMA as an addition to the Estero Bay State Buffer Preserve.

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

(See Attachment 8, Pages 1-36)

RECOMMEND APPROVAL

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Item 9 The Nature Conservancy Charitable Trust Assignment of Option Agreement/Appraisal of LKGP After Acceptance/Bombing Range Ridge Florida Forever Project

REQUEST: Consideration of (1) the acceptance of an assignment of an option agreement to acquire 4,845 acres within the Bombing Range Ridge Florida Forever project from The Nature Conservancy Charitable Trust; and (2) allowing the appraisal of the Lake Kissimmee Groves Partnership (LKGP) parcel after acceptance of the assignment of the option agreement.

COUNTY: Polk

LOCATION: Sections 22, 23, 25 through 28 and 32 through 36, Township 30 South, Range 30 East
Board of Trustees
Agenda – December 11, 2002
Page Fourteen

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Item 9, cont.

CONSIDERATION: $10,174,375 ($7,174,375 for the acquisition of the Scott parcel; $2,900,000 for the acquisition of the LKGP Property; and up to $100,000 for the purchase of the option agreement based on the final purchase price).

* The final survey revealed an increase in acreage.
** The Approved Value was adjusted to reflect the increase in acreage.
*** The LKGP parcel will be appraised after the acceptance of the option but before establishing the final purchase
price of the parcel.
**** The Board of Trustees’ maximum purchase price. $1,648 per acre / Scott parcel and $6,744 maximum per acre / LKGP
parcel.

STAFF REMARKS: The Bombing Range Ridge project is an “A” group project on the Florida Forever Full Fee Project List approved by the Board of Trustees on August 27, 2002. The project contains 41,748 acres, of which 4,167 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 32,736 acres or 78 percent of the project will remain to be acquired.

Pursuant to a multi-party acquisition agreement entered into between the Division of State Lands (DSL) and The Nature Conservancy Charitable Trust (TNC), TNC has acquired an option to purchase a 4,415-acre parcel from Ms. Meredith L. Scott, as Successor Trustee, and a 430-acre parcel from the Lake Kissimmee Groves Partnership, a Florida general partnership (LKGP). After this acquisition is approved, the Board of Trustees will acquire the option from TNC for $100,000, which represents agreed upon compensation to TNC for overhead associated with acquiring the option. The Board of Trustees may then exercise the option and purchase the property. The assignment of the option agreement provides that payment to TNC is contingent upon the Board of Trustees successfully acquiring the property from the owner.

The final purchase price for the Scott parcel will be based on $1,625 per gross final surveyed acre not to exceed $7,400,250. The final purchase price for the LKGP parcel will be 88 percent of the DSL Approved Value, not to exceed $2,900,000. If the final purchase price for the LKGP parcel is less than $2,400,000, LKGP may terminate the option agreement as to the LKGP parcel only. The maximum purchase price to be paid by the Board of Trustees for both parcels under any conditions is $10,300,250.

The South Florida Water Management District (District) has acquired by eminent domain that portion of the seller’s property within the project area with frontage on Lake Kissimmee and the Kissimmee River that lies below an elevation of 55 feet above sea level. Title to this land is vested in the District pursuant to an Order of Taking dated December 28, 2001, entered by the Tenth Judicial Circuit Court, Case Number G 99-1492. Title to the land acquired by the District is subject to those reserved easements and other reserved rights of Scott described in that Partial Settlement Agreement between Scott, the District and others dated August 3, 2000, as amended. The Board of Trustees will acquire the Scott parcel, together with the reserved easements and other reserved rights of Scott, which include an easement for ingress and egress to the waters of Lake Kissimmee abutting the Scott parcel for access to the water, the right to navigate, fish, bathe and use the waters for domestic household purposes. Scott’s reserved easement and other rights are subordinate to the rights of the District to flood the District’s property for Kissimmee River restoration.

Board of Trustees
Agenda – December 11, 2002
Page Fifteen

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Item 9, cont.

Title to that portion of the Scott parcel formerly the common elements of the Lake Kissimmee Shores Condominium is encumbered by the rights of five parties, each with a 1/70 interest in the common elements. Each of these five parties own a lot on Lake Kissimmee with two lots improved with residences. The Board of Trustees will acquire the common elements, which include Kissimmee Shores Road (a road providing access to the Scott and LKGP parcels, the five waterfront lots and another citrus grove), free and clear of the interests of third parties except the five remaining lot owners. Access to the out-parcels will be by easement approved by DSL and the lead project manager. Any required road repairs will be made by Scott prior to closing by the Board of Trustees. Maintenance of the road will be the responsibility of the lead project manager with contribution by the owners of the LKGP parcel and the other citrus grove, owned by Arnold Groves and Ranch, Ltd.

The property is improved with a vacant house. No value was attributed to the house by the appraisers.

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. Because these issues were discovered during preliminary due diligence, further research may change the facts and scope of each issue and, therefore, DEP staff will review, evaluate and implement an appropriate resolution for these and any other title issues that arise prior to closing.

Pursuant to chapter 259.041(7), F. S., before the appraisal of parcels approved for purchase, the Secretary of Environmental Protection or the Director of the Division of State Lands may enter into option contracts to buy such parcels. DEP will obtain appraisals for the LKGP parcel after acceptance of the assignment from TNC by the Board of Trustees. Said appraisals will be approved by the Bureau of Appraisal prior to establishing the final purchase price for the LKGP parcel as provided in the option agreement.

The purchaser will provide a survey prior to closing. The seller will provide a title insurance policy and an environmental site assessment prior to closing. At closing, the purchaser will reimburse the seller’s cost of the title insurance policy.

Public acquisition of this property will conserve and protect significant habitat for native species and endangered and threatened species. Additionally, public acquisition will provide recreational areas bordering Lake Kissimmee, including recreational trails for natural resource-based recreation. These parcels are considered to be the anchor parcels of the project and are important to the overall success of the project.

This project connects the Avon Park Air Force Range, Lake Kissimmee State Park, Three Lakes Wildlife Management Area and the South Florida Water Management District’s Kissimmee River lands. It provides critical habitat for at least 20 rare animals, including red-cockaded woodpeckers, snail kites, Florida scrub-jays and grasshopper sparrows. The scrub ridge is a recharge area for water resources adjacent to the project that include the Kissimmee River, Lake Rosalie, Tiger Lake, Lake Walk-in-Water and several creeks and marshes.

The property will be managed by the Department of Agriculture and Consumer Services’ Division of Forestry as lead manager in coordination with the Florida Fish and Wildlife Conservation Commission

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

(See Attachment 9, Pages 1-75)

RECOMMEND APPROVAL
Board of Trustees
Agenda – December 11, 2002
Substitute Page Sixteen

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Substitute Item 10 St. Charles Yacht Club, Inc. Private Easement

REQUEST: Consideration of an application for (1) authorization for a 20?year sovereignty submerged lands private easement containing 590,163 square feet (13.5 acres), more or less, for an existing navigation channel; and (2) authorization to dredge 1,926 cubic yards of sovereignty material.

COUNTY: Lee
Easement No. 40018
Application No. 36-0129209-002

APPLICANT: St. Charles Yacht Club, Inc., a Florida Non-Profit Corporation

LOCATION: Section 35, Township 45 South, Range 23 East, in the Caloosahatchee River, Class III Waters, within the local jurisdiction of Lee County
Aquatic Preserve: No
Outstanding Florida Waters: No
Designated Manatee County: Yes, without an approved manatee protection plan
Manatee Aggregation Area: No
Manatee Protection Speed Zone: Yes, idle/slow speed zone

CONSIDERATION: $17,881.79, representing (1) $13,548.29 for the easement with no enhanced value; and (2) $4,333.50 for the severance of 1,926 cubic yards of sovereignty material computed at the rate of $2.25 per cubic yard, pursuant to section 18?21.011(3)(a)2, F.A.C.

STAFF REMARKS: The applicant is requesting: (1) after-the-fact authorization for an existing private navigational access channel presently used in conjunction with a private yacht club docking facility (Lease No 360011449 / St. Charles Yacht Club, Inc.) and adjacent upland private yacht club; and (2) authorization to maintenance dredge 1,926 cubic yards of sovereignty material to maintain sufficient depths (-5 feet mean low water) for navigation in the channel.

Section 18-21.0051(2)(c), F.A.C., essentially states that the Department of Environmental Protection (DEP) has delegated authority from the Board of Trustees to review and take final agency action on applications for private easements unless they exceed five acres. The proposed easement for the existing channel will be 13.5 acres, thereby exceeding DEP’s delegated authority from the Board of Trustees.

Vessels using the channel and leased docking facility include private recreational boats ranging from 30 feet long to 70 feet long. The existing lease prohibits gambling ships / "cruises to nowhere." A standard lease condition in the applicant’s existing lease prohibits discrimination at the docking facility.

The existing navigational access channel was originally created by removal of approximately 25,600 cubic yards of sovereignty material to provide navigational access to a commercial docking facility in an adjacent man-altered cove. The Board of Trustees approved the channel dredging on March 12, 1968. The Board of Trustees subsequently approved a lease (no. 360011449) for the docking facility on January 9, 1979. Because the channel was dredged pursuant to a Board of Trustees’ permit and prior to requirement to obtain an easement from the Board of Trustees, the channel is not considered to be unauthorized. The requested easement will include the existing channel and 28 aids to navigation. The lease (no. 360011449) for the docking facility associated with the channel has been subsequently renewed
and modified by the former Department of Natural Resources and the current DEP to reflect changes in ownership, to extend the term to 25 years, to reduce the lease area to more accurately reflect the preempted area, and to prohibit gambling ships / "cruises to nowhere."
Board of Trustees
Agenda – December 11, 2002
2nd Substitute Page Seventeen

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Substitute Item 10, cont.

The Board of Trustees approved the reduction in lease area on January 25, 1994. The applicant/lessee is in compliance with the existing lease.

The area to be dredged includes approximately 2,000 linear feet between markers 17 and 28. The applicant does not qualify for a waiver of the dredge fee pursuant to section 18-21.011(3)(c), F.A.C.; therefore, a special approval condition requires the applicant to pay the dredge fee prior to receipt of a fully executed easement. There are no significant benthic resources (e.g., seagrasses) in or adjacent to the area proposed to be dredged. The spoil material will be disposed of at an appropriate self-contained upland site.

The applicant has submitted an estimate for the value of the easement and DEP has accepted the conclusion of value of $13,548.29 for the easement with no enhanced value.

The proposed private easement was not noticed, pursuant to section 253.115, F.S., because of the exemption from noticing requirements for existing activities completed prior to March 27, 1982, pursuant to section 253.115(5)(e), F.S.

DEP issued the applicant a letter on November 30, 2001, stating that the proposed maintenance dredging is exempt from the need to obtain a regulatory permit.

Recommendations from the Florida Fish and Wildlife Conservation Commission, Bureau of Protected Species Management, regarding protection of manatees include requiring the applicant to comply with the standard manatee protection construction conditions for all in-water construction. This is addressed as a special easement condition.

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 from Lee County.

(See Attachment 10, Pages 1-13)

RECOMMEND APPROVAL SUBJECT TO THE SPECIAL APPROVAL CONDITION, THE SPECIAL EASEMENT CONDITIONS, AND PAYMENT OF $17,881.79

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Substitute Item 11 Blackwater Manor, Ltd. Recommended Consolidated Intent

REQUEST: Consideration of an application for (1) authorization to modify an existing 25-year sovereignty submerged lands lease to: (a) replace the existing one-slip commercial docking facility with a 16-slip ownership-oriented docking facility; (b) increase the preempted area from 11,082 square feet to 36,415 square feet, more or less, for an existing commercial marina; (c) reduce the term of the lease from 25 to 5 years; (d) terminate a proprietary conservation easement from the lessee’s shoreline; (e) place a new proprietary conservation easement along the lessee’s shoreline; and (f) authorize, after-the-fact, the unauthorized preemption of 13,994 square feet of sovereignty submerged lands; and (2) authorization for the severance of 2,657 cubic yards of sovereignty material.

Board of Trustees
Agenda – December 11, 2002
Substitute Page Eighteen

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Substitute Item 11, cont.

COUNTY: Collier
Lease No. 111404055
ERP File No. 11-0179315-001

APPLICANT: Blackwater Manor, Ltd., a Florida Limited Partnership

LOCATION: Section 03, Township 50 South, Range 25 East, in the Gordon River/Naples Bay, Class II waters not approved for shellfish harvesting, within the local jurisdiction of the city of Naples
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, idle/slow speed zone

CONSIDERATION: $62,527.78, representing (1) $5,326.43 as the initial lease fee computed at the base rate of $0.1246 per square foot, and including the initial 25 percent surcharge payment for the additional area; (2) $15,979.29 as the one-time premium pursuant to section 18-21.011(1)(c), F.A.C.; (3) $5,978.25 for the severance of 2,657 cubic yards of sovereignty material computed at the rate of $2.25 per cubic yard, pursuant to section 18?21.011(3)(a)2, F.A.C., (4) $19,993.81 as lease fees in arrears, with interest, for the unauthorized use of sovereignty submerged lands from January 27, 1995 through September 30, 2003, pursuant to a temporary use agreement (TUA), which has been paid; and (5) $15,250 as administrative fines for the unauthorized use of sovereignty submerged lands pursuant to the TUA, which has been paid. 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 gross rental income pursuant to section 18-21.011(1)(a)1, F.A.C.

STAFF REMARKS: In accordance with rules adopted pursuant to sections 373.427(2) and 253.77(2), F.S., the attached "Recommended Consolidated Notice” contains a recommendation for issuance of both the permit required under part IV of chapter 373, F.S., and the authorization to use sovereignty submerged lands under chapter 253, F.S. The Board of Trustees is requested to act on those aspects of the activity which require authorization to use sovereignty submerged lands. If the Board of Trustees approves the request to use sovereignty submerged lands and the activity also qualifies for a permit, the Department of Environmental Protection (DEP) will issue a “Consolidated Notice of Intent to Issue” that will contain general and specific conditions. If the Board of Trustees denies the use of sovereignty submerged lands, whether or not the activity qualifies for a permit, DEP will issue a “Consolidated Notice of Denial.”

The lessee is requesting authorization to modify an existing 25-year sovereignty submerged lands lease by: (1) replacing the existing one-slip commercial docking facility with a 16-slip ownership-oriented docking facility; (2) increasing the lease area from 11,082 square feet to 36,415 square feet; (3) reducing the term from 25 years to 5 years; (4) terminating a proprietary conservation easement along the lessee’s shoreline adjacent to sovereignty submerged lands; and (5) requesting after-the-fact authorization for the preemption of approximately 13,994 square feet of sovereignty submerged lands. The lessee also proposes to maintenance dredge 2,657 cubic yards of sovereign material in the Gordon River.

This expansion is in conjunction with the existing upland marina, boat repair and 240-unit dry storage facility. The modified docking facility on sovereignty submerged lands will be used for no more than 16 private recreational vessels and charter fishing vessels ranging from 30 feet long to 90 feet long. The existing lease prohibits gambling ships / "cruises to nowhere" and they will continue to be prohibited in the modified lease. Approximately 125 additional boat slips for private recreational vessels and charter fishing vessels ranging from 20 feet long
Board of Trustees
Agenda – December 11, 2002
Substitute Page Nineteen

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Substitute Item 11, cont.

to 60 feet long are located in an existing privately-owned, man-made basin. The proposed modified docking facility will reduce this number to 89 boat slips on privately-owned submerged lands.

The Board of Trustees originally approved the lease on November 14, 1991. That lease was issued to Rosie O’Shea Naples, Inc., which had a lease on the riparian upland property from the upland property owner, Philip C. Morse, Jr. DEP modified the lease in 1996 by: (1) extending the term of the lease from 5 to 25 years; (2) changing the lessee; and (3) including additional decking pursuant to DEP Consent Order No. 95-2778. DEP subsequently renewed and modified the lease on June 6, 2000, to reflect a change in upland ownership to Blackwater Manor, Ltd. The lease expires on November 14, 2021.

The pending request to modify the lease resulted from a pending sale of the facility to a new owner, who proposes to upgrade the facility from a commercial marina to a mixed-use residential and commercial development. As approved by the city of Naples, the proposed development on the lessee’s uplands will include 59 residential units, a residential yacht club, retail space, office space, and a restaurant. Final details pertaining to the relationship of the residential use and the docking facility to be constructed on sovereignty submerged lands, the man-made basin and the man-made canal have not been completed. Therefore, a special lease condition will provide that prior to commencement of any construction of new docking facilities on sovereignty submerged lands associated with the leased facility, the lessee shall remit to DEP a complete copy of the recorded Declaration of Condominium documents as submitted to the Florida Department of Business and Professional Regulation, Division of Land Sales, Condominiums and Mobile Homes. Those condominium documents shall clearly specify the relationship of all pertinent aspects of the condominium to the proposed docking facilities on sovereignty submerged lands. In addition, the lessee has created a draft Declaration of Covenants and Restrictions stating that the lessee will form either a master property owners association or a condominium association that will be responsible for maintenance of all common areas within the development, including the docking facility subject to the modified sovereignty submerged lands lease. Therefore, the docking facility is an ownership-oriented facility pursuant to section 18-21.003(36), F.A.C.

Section 18-21.004(4)(a)1.e., F.A.C., limits the area of sovereignty submerged lands leased for the docking facility to a square footage amounting to 40 times the lessee’s riparian waterfront footage (the 40:1 rule). Since the lessee has 921 linear feet of riparian shoreline, the docking facility may only preempt 36,840 square feet. The total area preempted by the docking facility is 36,415 square feet. Therefore, the lessee’s request to preempt 36,415 square feet of sovereignty submerged lands for the docking facility is consistent with the rule.

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

As part of the consideration for Board of Trustees approval of the initial lease in 1991, the riparian upland owner at that time granted a proprietary Deed of Conservation Easement to the Board of Trustees. The conservation easement was not specifically required by chapter 18-21, F.A.C.; that rule only requires a conservation easement for ownership-oriented facilities. It was granted to the Board of Trustees in response to a recommendation by the former Department of Natural Resources, Division of Marine Resources (DMR). At that time, DMR stated no objection to the lease provided that the following conditions were met for manatee protection: (1) compliance with the standard manatee protection construction conditions; (2) no impact to resources such as seagrasses from the proposed project; (3) installation of manatee awareness signs; and (4) placement of a conservation easement along the shoreline to prohibit construction of additional docking facilities on sovereignty submerged lands.
Board of Trustees
Agenda – December 11, 2002
Substitute Page Twenty

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Substitute Item 11, cont.

Conditions (1) and (3) were addressed through special lease conditions in the initial lease. Condition (2) was addressed through the absence of seagrass at the project site. Condition (4) was addressed through a special approval condition for the initial lease. After the initial lease was approved in 1991, Collier County adopted and implemented a Manatee Protection Plan that was approved by the DMR in 1995.

The current Florida Fish and Wildlife Conservation Commission (FFWCC) recommended on July 25, 2001, that the lessee: (1) comply with the standard manatee protection construction conditions for all in-water construction; (2) install and maintain permanent manatee information and/or awareness sign(s) in accordance with FFWCC requirements; and (3) install and maintain a laminated copy of the “Collier County Manatee Protection Speed Zone” poster. These items are addressed in DEP’s environmental resource permit. On July 2, 2002, the FFWCC recommended that the total number of boat slips at the site be limited to 126. This is addressed in DEP’s environmental resource permit. FFWCC also stated that the proposed project appears to be consistent with the approved manatee protection plan. On August 20, 2002, FFWCC stated no objection to terminating the existing conservation easement contingent upon the lessee agreeing to: (1) eliminate existing upland dry boat storage and prohibit future upland dry storage; and (2) removal of the existing private boat ramp in the lessee’s man-made basin. These items have been addressed in DEP’s environmental resource permit. The lessee will enter into an escrow agreement with DEP to address item number (1) as further explained in special lease condition number one. Additionally, a special lease condition will require the lessee to ensure that the renter of any slip at the docking facility enters into a signed agreement, between the lessee and the renter, stating that the slip renter agrees to comply with all local, state and federal manatee protection speed zones.

DEP would not typically recommend that the Board of Trustees terminate an existing conservation easement. However, in this case, there are several factors that support terminating the existing conservation easement: (1) this is a highly urbanized area, the project shoreline is seawalled, and there are no significant benthic resources such as seagrasses that are protected by the existing conservation easement; (2) the conservation easement was intended as a manatee protection measure prior to adoption of a FFWCC-approved manatee protection plan, such a plan has subsequently been adopted, and FFWCC has agreed to the termination of the conservation easement subject to the manatee protection efforts agreed to by the lessee; (3) proposed restrictions in the lease, the new conservation easement, and the environmental resource permit will result in increased protection to sovereignty submerged land resources, manatees and water quality because of: (a) the net reduction of 261 boats at the project site (240 dry storage units and 21 wetslips); and (b) overall water quality improvements addressed in DEP’s environmental resource permit that include removal of contaminated sediments in the basin, implementation of a stormwater management system, improved flushing in the basin by reducing and reconfiguring the basin, and removal of boat houses in the basin (thereby increasing dissolved oxygen levels). Additionally, a special lease condition and a specific condition in DEP’s environmental resource permit require completion of these net improvement measures prior to commencement of construction of the new docks on sovereignty submerged lands. In this way, the lessee will make environmental improvements before receiving income from new docking facilities on sovereignty submerged lands. The procedure for terminating the conservation easement has been addressed in DEP’s environmental resource permit and as a special lease condition. The existing conservation easement will not be terminated until the lessee complies with that procedure. Therefore, in light of the aforementioned environmental improvements and procedural safeguards, DEP recommends that the Board of Trustees terminate the existing conservation easement and approve the lessee’s requested lease modification.

A May 7, 2001 site inspection by DEP staff revealed that trash and debris had been pushed into a mangrove fringe and a construction barge was moored on sovereignty submerged lands outside of the leased area. Upon notification by DEP, the lessee corrected these problems without formal enforcement by DEP. DEP staff subsequently identified two additional
Board of Trustees
Agenda – December 11, 2002
Substitute Page Twenty-one

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Substitute Item 11, cont.

violations: (1) a 19.5-foot-long by 12.5-foot-long floating jet ski platform and a 35.8-foot-long by 6-foot-wide floating wood dock had been constructed along the lessee's riverfront shoreline outside of the lease area without regulatory or proprietary authorization from DEP; and (2) unauthorized mooring along the lessee's riverfront shoreline outside of the lease area preempting approximately 13,994 square feet of sovereignty submerged lands. Additional lease violations included 326 square feet of non-water dependent activities including the sale of alcohol, the construction of 140 square feet of non-water dependent structures (i.e. fixed benches on the dock waterward of the restaurant), and construction of walkways (between the restaurant and the authorized dock). These violations did not entail significant adverse environmental impacts to sovereignty submerged lands. On August 27, 2002, DEP issued Consent Order No. 02-1007 that required the lessee to pay a $1,000 regulatory civil penalty, $250 for DEP’s costs, $19,993.81 as lease fees in arrears, including interest, and $15,250 as an administrative fine for the unauthorized use of sovereignty submerged lands consistent with the administrative fine methodology adopted by the Board of Trustees on August 14, 1990, and modified on June 2, 1992. The fines/penalties have been paid. These structures and associated mooring areas are within the area the lessee proposes to include in the modified lease. A TUA was also issued to the applicant by DEP for the period extending from January 27, 1995, the approximate date the unauthorized mooring began, to September 30, 2003. The TUA required payment of the lease fees in arrears and referenced payment of the administrative fines required to be paid by Consent Order No. 02-1007. To reduce the likelihood of future violations at the site, DEP’s environmental resource permit requires the lessee to designate an Environmental Compliance Officer (ECO) who will be responsible for water quality at the permitted facility and for ensuring compliance with all aspects of the DEP-approved Slip Rental Agreement.

The lessee proposes to dredge 2,657 cubic yards of sovereignty material to provide adequate water depth (approximately –6 feet NGVD) for the vessels proposed to be moored along the lessee’s Gordon River shoreline. The lessee does not qualify for a waiver of the dredge fees pursuant to section 18-21.011(3)(c), F.A.C.; therefore, a special approval condition requires the lessee to pay dredge fees to DEP prior to receipt of a fully executed modified lease. The material to be dredged consists of sand, silt and cap rock. Blasting to remove the cap rock is specifically prohibited in DEP’s environmental resource permit. There are no significant benthic resources in or adjacent to the area proposed to be dredged. The spoil material will be disposed of at an appropriate self-contained upland site.

The existing lease prohibits fueling facilities and liveaboards, but authorizes a sewage pumpout facility. DEP’s environmental resource permit requires a sewage pumpout facility, prohibits liveaboards, and authorizes fueling facilities over sovereignty submerged lands. Therefore, the modified lease will authorize sewage pumpout facilities and fueling facilities, but will continue to prohibit liveaboards. The permit will also authorize activities in the lessee’s existing man-made, privately-owned basin and existing man-made, privately-owned canal, including: removal of 14 existing boathouses from the basin; filling in 5,200 cubic yards of privately-owned submerged lands in the basin to enhance flushing; a reduction and reconfiguration from 126 fixed to 59 floating boat slips within the basin; the addition of 30 wet slips and a shore-parallel dock in the canal; and the dredging of the approximately 17,343 cubic yards from the basin and canal. These activities will decrease the over water structures in the man-made marina basin from 36,314 square feet to 17,583 square feet. The permit also requires elimination of approximately 240 dry boat storage slips on the lessee's upland property. The permit also incorporates several requirements designed to prevent and/or reduce water quality impacts, thereby resulting in a net improvement to water quality at the site.

The current modified lease request was not required to be noticed due to an exemption for lease modifications, pursuant to section 253.115(5)(i), F.S.

Board of Trustees
Agenda – December 11, 2002
Substitute Page Twenty-two

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Substitute Item 11, cont.

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 Naples.

(See Attachment 11, Pages 1- 54)

RECOMMEND APPROVAL SUBJECT TO THE SPECIAL APPROVAL CONDITION, THE SPECIAL LEASE CONDITIONS, AND PAYMENT OF $27,283.97

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Item 12 18-21, F.A.C., Proposed Rulemaking/Telecommunication Lines/Conduits

DEFERRED FROM THE JUNE 12, 2001 AGENDA
WITHDRAWN FROM THE OCTOBER 30, 2001 AGENDA

REQUEST: Consideration of a request to publish a Notice of Proposed Rulemaking for proposed amendments, attached, to chapter 18-21, F.A.C., regarding installation of offshore telecommunication lines and conduits, establishing special consideration areas in the coastal waters of Palm Beach and Broward Counties, an exclusion area in the coastal waters of Miami-Dade (south of Sunny Isles) and Monroe Counties, statewide application and easement fees, and delegation of decision-making authority for installation in special consideration areas.

COUNTY: Statewide

APPLICANT: Department of Environmental Protection (DEP)

STAFF REMARKS: Initial Notice of Proposed Rule Development was published in the February 16, 2001, issue of the Florida Administrative Weekly. On March 13, 2001, the DEP presented a report to the Board of Trustees on the status of establishing preferred zones for installation of telecommunication fiber optic cables in the coastal waters of Florida and assessing fees for such use of sovereignty submerged land. At that time, the Board of Trustees directed DEP to consider establishing preferred installation areas, appropriate fees, and ways to streamline the review and approval process, while maintaining protection of Florida’s unique environmental resources. Initial concepts for rule amendments were presented for public comment at workshops held on April 20, April 25, May 22, and September 28, 2001. Comments received at these workshops were considered in developing a draft rule that was on the Board of Trustees agenda for October 30, 2001. However, the draft rule was withdrawn at that meeting and staff has continued working with the industry to refine the draft rule. Of note, the term “fiber optic cables” has been replaced with “telecommunication lines” to ensure that the rule will not be outdated by changes in cable technology.

Proposed Revisions to Chapter 18-21, F.A.C.
Special Consideration Areas:
The southeast coast is the preferred landing area in Florida for international telecommunication lines linking Florida to the Caribbean and Central and South America. The industry indicates that four to twenty-four new cables may be installed in the coastal waters of Florida over the next ten years, with a most likely need of six to eight new cable landings on the southeast coast. Initial rule development efforts were directed at establishing special consideration areas exclusively in Miami-Dade, Broward, and Palm Beach Counties. Discussion at the public workshops made it apparent that these proposals inadvertently encouraged installations in areas
Board of Trustees
Agenda – December 11, 2002
Page Twenty-three

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Item 12, cont.

of southeast Florida containing the northern extent of the only natural coral reef system in North America. These reefs are widely recognized to be under stress and are in decline for a number of reasons. Therefore, many comments were received that suggested encouraging offshore telecommunication lines to be located in any waters in Florida, provided such installations did not adversely affect resources or exclude other existing and traditional uses of sovereignty submerged lands.

Three reef tracts, parallel to the beach, can be found along the southeast coast of Florida. In general, the reefs have increasing relief and biological diversity with water depth. The DEP also became aware that gaps through the reef systems exist in several locations off of southeast Florida. As a result, the DEP contracted with Dr. Ray McAllister (Professor Emeritus, Florida Atlantic University) to map the location of those gaps. Dr. McAllister and DEP staff, assisted by volunteers with an interest in the protection of Florida’s reefs, identified twenty-one reef-gaps through the third deepest reef terrace offshore of Broward and Palm Beach Counties during July-August 2001. From these, five reef gap special consideration areas were selected based on consideration of: (1) an equitable distribution of landing sites along the southeast coast; (2) the extent of the benthic resources in the gaps of the third reef offshore of the southeast coast; (3) the existence and quality of benthic resources within the gaps; (4) the size of the gaps; (5) likely Intracoastal Waterway crossing sites; (6) possible horizontal directional drill staging areas; and (7) avoiding conflicts with competing uses of sovereignty submerged lands such as beach restoration and nourishment borrow areas, artificial reefs, and military exclusion zones." In addition, consideration was given to the fact that cables need some distance between them, especially in deeper waters, and to ensure that there are sufficient numbers of upland property owners to avoid a monopoly on potential upland landing sites. The reef gaps identified as special consideration areas at this time are: Lake Worth Gap in northern Palm Beach County (1,672 yards wide), Boynton Beach Gap in southern Palm Beach County (90 to 95 yards wide), Delray Gap in southern Palm Beach County (508 yards wide), Turtle Gap in southern Palm Beach County (154 yards wide), and South Broward Gap in southern Broward County (1,225 yards wide).

The establishment of special consideration areas for telecommunication lines and associated conduits will serve as a management tool for the Board of Trustees to help minimize the individual and cumulative impacts of telecommunication lines coming into southeast Florida from offshore. To provide incentives for telecommunication lines to be located in the special consideration areas, the proposed amendments delegate to staff the authority to take final agency action on applications to install telecommunication lines in the special consideration areas. Authority to take final agency action on telecommunication lines and conduits located outside of the special consideration areas would remain with the Board of Trustees.

In addition to establishing special consideration areas, an exclusion area in which no telecommunication lines will be allowed is proposed in the coastal waters of Miami-Dade County south of Sunny Isles and throughout all of Monroe County to ensure protection of reefs in those waters from impacts associated with the installation of telecommunication lines.

Demonstration of Need:
In order to partially meet the water dependency provisions of rule 18-21.004(1)(d), F.A.C., the proposed amendments require documentation of the need for a landing site in the form of contracts or letters of commitment demonstrating that an offshore telecommunications line will be installed and connected to an upland distribution network. Individual landing sites are limited to no more than six telecommunication lines and conduits unless the applicant can affirmatively demonstrate that the landing site will support a larger number of such lines and conduits and that the routing through the territorial sea will cause no more than minimal individual and cumulative impacts. Further, the proposed amendments provide that no more than one empty conduit will be allowed per approved telecommunication line except in special consideration areas, where two empty conduits may be installed per approved
Board of Trustees
Agenda – December 11, 2002
Page Twenty-four

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Item 12, cont.

telecommunication line. This is intended to balance the efficiency of installing empty conduits while equipment is on-site vs. limiting the proliferation of unused conduits.

Application Requirements:
Application requirements for both public and private easements for offshore telecommunication lines are amended to: require satisfactory evidence of need; provide for submission of a sketch in lieu of a survey for installations in special consideration areas provided that a legal description and survey are submitted upon completion of construction; require a $15,000 application fee for installation of any telecommunication line and associated conduit, including installing telecommunication lines in previously authorized empty conduits; and provide that the application fee shall be revised annually based on the Consumer Price Index.

In addition, the public noticing provisions for all public and private easements are revised to reflect current statutory requirements and to provide that the applicant may notice the proposed project, in lieu of the Board of Trustees, provided certain conditions are met. Further, the application requirements for all private easements are amended to provide that a calculation of the easement fee, not payment of the easement fee, must be part of the application.

Private Easement Fees:
The proposed amendments establish a minimum private easement fee for offshore telecommunication lines of $5.06, to be revised annually based on the Consumer Price Index, per linear foot for each telecommunication line and/or conduit. This fee is based on a minimum easement width of ten feet and is to be increased proportionally for easements of greater widths. This is a one-time payment for the term of the easement to be granted. Further, this easement fee is based on a combination of the estimated appraisal value of the easement area and the enhanced value fee required by rule 18-21.011(2)(b)2, F.A.C. The easement fee is applicable to all private easements for offshore telecommunication lines in the territorial sea statewide, regardless of location.

Rulemaking
Upon the Board of Trustees' approval of the request to publish the proposed rule amendments, a Notice of Proposed Rulemaking, including an opportunity for a public hearing, will be published in the Florida Administrative Weekly and the DEP Internet Official Notice site, and distributed to the interested parties mailing list. Staff will return to the Board of Trustees for final rule adoption including any changes to the proposed rule that may result from comments received as a result of the Notice.

(See Attachment 12, Pages 1-8)

RECOMMEND APPROVAL