The Governor and Cabinet - Florida Department of State

Cabinet Affairs

AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

JUNE 26, 1997

Item 1 Minutes

Submittal of the minutes of the May 13, 1997 Cabinet meeting.

RECOMMEND ACCEPTANCE

Item 2 Quarterly Management Report

Submittal of the Quarterly Management Report for the third quarter, SFY 1996-97.

(See Attachment 2, Pages 1-14)

RECOMMEND ACCEPTANCE

Item 3 Walton County Land Disposition Determination

DEFERRED FROM MAY 28, 1997 AGENDA

REQUEST: Consideration of a request to determine that a 420-acre, more or less, parcel of state-owned land in Walton County no longer needs to be preserved in furtherance of the intent of the Florida Preservation 2000 Act.

COUNTY: Walton

APPLICANT: Division of State Lands

LOCATION: A portion of Sections 30 and 31, Township 02 South, Range 19 West

STAFF REMARKS: Title to this property was acquired in 1992 through the Preservation 2000 land acquisition program as part of the Topsail Hill and Point Washington Conservation and Recreation Lands (CARL) projects. On May 19, 1992, the Board of Trustees authorized the Division of State Lands to negotiate either directly with the Resolution Trust Corporation (RTC) or through The Nature Conservancy (TNC) to acquire roughly 18,000 acres of land in south Walton County held by the RTC. All but approximately 400 acres was located within the Topsail Hill and Point Washington CARL projects. Representatives of Walton County appeared at the Cabinet meeting and objected to the state purchasing land within the Point Washington project, stating that the state's acquisition would remove too much land from the county tax rolls. The Board of Trustees, while approving the agenda item, did request that the Florida Coastal Management Program's Interagency Management Committee (IMC) review the purchase to determine whether any lands acquired by the state could be returned to the county tax rolls.

The IMC established a work group to study the matter. On March 23, 1993, the Board of Trustees approved the IMC's two recommendations. First, the IMC recommended that only those lands outside the original CARL project boundary, with the exception of a few parcels containing active red-cockaded woodpecker colonies, should be declared surplus. Second, the IMC endorsed a proposed county supported planning process involving all of south Walton County. County representatives had been working with the legislature to obtain funds for a planning exercise that would result in additional recommendations for both the acquisition and disposition of land in south Walton County.

Board of Trustees

Agenda - June 26, 1997 Page Two

Item 3, cont.

In 1993, the Legislature appropriated $800,000 to establish the South Walton Conservation and Development Trust (Trust). The Trust consisted of twelve members, six appointed by the Governor and six appointed by Walton County. The Trust met for over a year and adopted a final report in December 1994. The report recommended that: (1) the state acquire an additional 881 acres in south Walton County (not including additional acquisition in Topsail Hill) for conservation purposes; (2) the state dispose of 2,789 acres not considered absolutely necessary for the Point Washington project; and (3) a general future land use map and development concept be developed for all lands in south Walton County that would not ultimately be in state ownership.

In 1995, the Legislature appropriated an additional $250,000 to support a county initiative to implement the recommendations of the Trust. The primary results of that effort, undertaken by the South Walton Ecosystem Steering Committee, were twofold. First, the Committee developed a detailed plan for a proposed town center, including a library, government buildings, and other structures west of SR 331 and north of US 98 on lands that were and were not under state ownership. Second, it recommended further environmental studies on other lands recommended to be declared surplus by the Trust. These studies, performed under contract with the Florida Natural Areas Inventory (FNAI), determined that many of the areas recommended for disposition by the Trust contained significant natural resources. The majority of the work of the South Walton Ecosystem Steering Committee was finished on October 31, 1996.

The Land Acquisition Advisory Council (LAAC) held two public hearing on changing the boundaries of the South Walton Ecosystem CARL project. The first hearing was held in Walton County of August 23, 1996, with approximately 400 people in attendance. Those in attendance expressed almost unanimous support for not disposing of any lands purchased for conservation purposes. Those who attended the second hearing in Tallahassee on August 30, 1996, also voiced strong support for retaining these lands. The LAAC also took public testimony at an additional meeting on October 30, 1996, again with strong support for retaining conservation lands in Walton County. Throughout all of the public testimony, most speakers supported the concept of a town center in south Walton County even though they were generally opposed to disposing of conservation lands.

On December 5, 1996, the LAAC adopted new boundaries to the South Walton Ecosystem CARL project. On February 11, 1997, the Board of Trustees approved the new boundary for the South Walton Ecosystem project. The new CARL boundary: (1) expanded the north-south corridor from Topsail Hill to Choctawhatchee Bay to include more red-cockaded woodpeckers; (2) excluded land owned by St. Joe Paper Company around Topsail Hill and Deer Lake that had been removed from consideration for purchase as part of a settlement agreement for the condemnation proceedings for other land in Topsail Hill and Deer Lake; (3) excluded some areas that had been developed since the original purchase; (4) slightly expanded the greenway between Topsail Hill and Point Washington State Forest; and (5) excluded all land within the proposed town center site. The lands originally proposed for surplus by the IMC remain outside the CARL acquisition boundaries.

At the same time the Board of Trustees approved the new boundary for the South Walton Ecosystem CARL project, Governor Chiles directed the Department of Environmental Protection (DEP) to return to the Board of Trustees within 90 days with a plan for disposition of 820 acres removed from the project boundary. Division of State Lands (DSL) staff subsequently met with representatives from the Division of Forestry, Walton County and the Department of Community Affairs to discuss the steps necessary to begin disposing of the land. DSL staff developed a timeline that indicated that more than 90 days would be required to complete the survey, appraisal, and public noticing requirements for disposing of Board of Trustees

Agenda - June 26, 1997 Page Three

Item 3, cont.

public lands. The group elected to focus on the 420-acre parcel proposed for development by Walton County as a town center and the initial determination, pursuant to subsection 259.101(6), F.S., whether "such lands no longer need to be preserved in furtherance of the intent of the Florida Preservation 2000 Act."

On April 11, 1997, the Division of Forestry forwarded a request to DSL for release of the acreage outside the new CARL boundary. On April 24, 1997, the Land Management Advisory Council (LMAC) considered a request that the Board of Trustees determine that the 420 acres encompassed within the proposed town center site are no longer needed in furtherance of the intent of the Florida Preservation 2000 Act. Objections were received from representatives from the Audubon Society, Florida Wildlife Federation and Sierra Club. LMAC, in recognition of the fact that important resources exist on the town center site, voted to recommend that the Board of Trustees determine that the 420 acres are no longer needed in furtherance of the intent of the Preservation 2000 Act, provided, that the town center plan be reviewed and modified if necessary to ensure that: (1) the most highly valued natural resources on the site are preserved; (2) critical habitat connections to lands on the west side of the new town center are maintained; and (3) state of the art stormwater treatment design features are included that will protect the resources of Choctawhatchee Bay and jurisdictional wetlands. LMAC also recommended that the town center plan be reviewed by a multi-agency/stakeholder review team and modified as necessary to ensure that the above resource protection measures be implemented.

The Department of Community Affairs has offered to coordinate setting up the review team to review the town center plan as well as assure that the town center plan is consistent with the local comprehensive plan. While the town center plan is being reviewed, staff will coordinate with the county to obtain a list of landowners within 500 feet of the parcel, and the name of a newspaper of general circulation in the county, and initiate the public noticing requirements of section 253.115, Florida Statutes. Survey and appraisal work will be initiated and the requirements for repaying the Preservation 2000 Fund will be addressed prior to returning to LMAC and the Board of Trustees for a final surplus land designation. The remaining 400 acres removed from the CARL boundary will be reviewed by LMAC and the Board of Trustees as a separate item after an analysis of the resources on the site can be completed.

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

A copy of South Walton County's New Town Master Plan of Development is on file with the Office of the Attorney General.

RECOMMEND DEFERRAL

Item 4 The Nature Conservancy, Inc./Grafton Groves, Inc./Assignment of Option Agreement/Lake Wales Ridge Ecosystems (Flat Lake) CARL Project

DEFERRED FROM JUNE 12, 1997 AGENDA

REQUEST: Consideration of an assignment of an option agreement to acquire approximately 120.5 acres within the Lake Wales Ridge Ecosystems (Flat Lake) CARL project from The Nature Conservancy, Inc. (TNC).

COUNTY: Lake

Board of Trustees

Agenda - June 26, 1997 Page Four

Item 4, cont.

LOCATION: Section 12, Township 23 South, Range 26 East

CONSIDERATION: $445,475 ($432,500 for the acquisition; $12,975 for the purchase of the option agreement)

APPRAISED BY

REVIEW String Phillips APPROVED PURCHASE OPTION

NO. PARCEL ACRES (05/25/95) (04/17/95) VALUE PRICE DATE

711001 Grafton 120.5 $485,000 $420,000 $485,000 $432,500 120 days

Groves, Inc. after BOT approval

STAFF REMARKS: The Lake Wales Ridge Ecosystems CARL project is ranked number 1 on the CARL Priority Project List approved by the Board of Trustees on February 13, 1996, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. This project contains 33,031 acres, of which 1,250 acres have been acquired by Southwest Florida Water Management District and 12,512 acres have been acquired or are under agreement to be acquired by the Board of Trustees. If the Board of Trustees approves this agreement, 19,148.5 acres or 58 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 TNC, TNC has acquired an option to purchase this 120.5-acre parcel from Grafton Groves, Inc., a Florida corporation. After this acquisition is approved, the Board of Trustees will acquire the option from TNC for $12,975, which represents agreed upon compensation to TNC for overhead associated with acquiring the option. The Board of Trustees may then exercise the option and purchase the property. The assignment of option agreement provides that payment to TNC is contingent upon the Board of Trustees successfully acquiring the property from the owner. The assignment of option agreement further provides that in no event will the purchase price for the option and the purchase price of the property exceed the DSL approved value of the property.

At the time of closing, the sellers will convey to the purchaser, at no additional cost, a 30-foot wide, perpetual, non-exclusive easement for the purpose of access over other lands belonging to the seller.

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

The certified survey will be provided by the purchaser. The environmental site assessment will be provided by the seller with the purchaser reimbursing the seller's approved environmental site assessment costs in excess of $2,500.

The high, sandy, Lake Wales Ridge, stretching south from near Orlando almost to Lake Okeechobee, was originally covered with a mosaic of scrub, flatwoods, wetlands, and lakes. The scrub is unique in the world - it is inhabited by many plants and animals found nowhere else - but it has almost completely been converted to citrus groves and housing developments. The Lake Wales Ridge Ecosystems CARL project is designed to protect the best remaining tracts of this scrub and the ecosystems associated with it, thereby preserving several endangered species and allowing the public to see examples of the unique original landscape of the ridge.

Board of Trustees

Agenda - June 26, 1997 Page Five

Item 4, cont.

This property will be managed by the Department of Agriculture and Consumer Services, Division of Forestry under a multiple-use management regime as part of the state forest system.

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 1-40 submitted with the June 12, 1997 agenda, and Attachment 4, Additional Pages 41-42)

RECOMMEND APPROVAL

Item 5 The Nature Conservancy, Inc. Purchase Agreement/Coupon Bight/Key Deer CARL Project

REQUEST: Consideration of a purchase agreement to acquire approximately 11.10 acres within the Coupon Bight/Key Deer CARL project from The Nature Conservancy, Inc. (TNC).

COUNTY: Monroe

LOCATION: Sections 22, 23 and 26, Township 66 South, Range 29 East

CONSIDERATION: $165,074

APPRAISED BY

WARONKER

(12/21/91)

REVIEW (05/21/94) APPROVED PURCHASE CLOSING

NO. OWNER ACRES (02/05/97) VALUE PRICE DATE_____

711004 TNC 11.10 $194,400 $194,400 $165,074 6 months after BOT approval

STAFF REMARKS: The Coupon Bight/Key Deer CARL project is ranked number 2 on the CARL Mega-Multiparcel Project List approved by the Board of Trustees on February 13, 1996, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. This project contains 1,827 acres, of which 419 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 1,397 acres or 76 percent of the project will remain to be acquired.

On March 12, 1996, the Board of Trustees exercised its authority under section 259.041(1), F.S., to waive the normal appraisal procedures and to substitute other reasonably prudent procedures. This enabled the Division of State Lands to utilize approved appraised values that were based on land use regulations in effect as of January 1, 1996, in Monroe County and Big Pine Key, Florida.

A waiver of the requirement for a survey of all parcels within this project was approved by the Board of Trustees on September 15, 1992. While these parcels have been approved for a

Board of Trustees

Agenda - June 26, 1997 Page Six

Item 5, cont.

waiver of survey, should a site inspection of these properties, by a professional land surveyor, reveal any evidence of improvements or potential boundary issues; or, should the title commitment reveal a substantive surveying or surveying related issue which impacts any given parcel, a certified survey will be provided by the purchaser prior to closing.

A title insurance policy will be provided by purchaser. An environmental site assessment may be provided by purchaser prior to closing. A mass environmental site assessment was performed on this project and no contaminants were discovered. Prior to closing, the managing agency will perform a site inspection and, as in prior purchases in this project, unless contaminants are found, a site specific environmental site assessment will not be performed.

The subtropical pine forests of rapidly developing Big Pine Key and the islands around it are the home of the endangered Key Deer as well as of many Caribbean plants found nowhere else in the country. Rich coral reefs and other hardbottom communities flourish in the shallow water around the islands. The Coupon Bight/Key Deer CARL project will protect the remaining undeveloped land on Big Pine and No Name Keys, without which, the Key deer will not survive; protect the water quality of the Coupon Bight Aquatic Preserve and the other waters surrounding the islands; and provide the public an area to appreciate the unique natural world of this part of Florida.

This property will be managed by the U.S. Fish and Wildlife Service as a part of the National Key Deer Refuge.

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

(See Attachment 5, Pages 1-15)

RECOMMEND APPROVAL

Item 6 Cohen Purchase Agreements/Survey Waivers/Belle Meade CARL Project

REQUEST: Consideration of (1) two purchase agreements to acquire 127.50 acres within the Belle Meade CARL project from Donald B. Cohen and Eugene E. and Lee E. Cohen; and (2) a request for survey waivers.

COUNTY: Collier

LOCATION: Section 17, Township 50 South, Range 27 East

CONSIDERATION: $223,125

APPRAISED BY

REVIEW PARCEL (Dane) APPROVED PURCHASE CLOSING

NO. NO. OWNER ACRES (11/28/95) VALUE PRICE DATE

711002 246 Cohen,D.B. 85.50 $153,900 $153,900 $149,625 6 months

711003 249 Cohen,E.&L. 42.00 $ 75,600 $ 75,600 $ 73,500 after BOT

127.50 $229,500 $223,125 approval

STAFF REMARKS: The Belle Meade CARL project is ranked number 3 on the CARL Priority Project List approved by the Board of Trustees on February 13, 1996, and is eligible

Board of Trustees

Agenda - June 26, 1997 Page Seven

Item 6, cont.

for purchase under the Division of State Lands' Land Acquisition Workplan. This project contains 19,227 acres, of which 9,234 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves these agreements, 9,866 acres or 51 percent of the project will remain to be acquired.

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

A waiver of the requirement for surveys of both parcels is being requested pursuant to section 181.005, F.A.C., because, in the opinion of the Bureau of Survey and Mapping, the parcels to be acquired meet all of the following conditions:

the parcels are surrounded by state-owned land or surrounded by land the state intends to acquire;
the parcels or the parent tracts have been surveyed since 1900, and the survey drawings are acceptable for computing acreage;
the parcels are in their natural unimproved condition; and
the boundaries of the parcels do not adjoin fences or improvements other than those managed or intended to be managed by the state.

While these parcels are being recommended for a waiver of survey at this time, should the title commitments reveal a substantive surveying or surveying related issue which impacts the parcels, certified surveys will be provided by the purchaser prior to closing. In the event full surveys are waived, a professional land surveyor will inspect the properties for any visible evidence of improvements or potential boundary issues. In cooperation with the managing agency, the Division of State Lands will acquire any special purpose survey work necessary for the effective management of the properties.

Environmental site assessments and title insurance policies will be provided by purchaser prior to closing.

The cypress swamps and old-growth slash pine flatwoods in the Belle Meade project, extending to the fast-developing suburbs of Naples, are still important for such endangered wildlife as Florida panthers, red-cockaded woodpeckers, and Florida black bear. Belle Meade is also the watershed for Rookery Bay. The Belle Meade CARL project will conserve the westernmost large natural area in southwest Florida, protect some of the southernmost populations of several rare animals, and help protect the quality of the subtropical estuary of Rookery Bay by preserving the critical hydrological connection from the flatwoods and swamps to the bay, while providing a large area for recreation in a natural environment to residents of and visitors to rapidly urbanizing southwest Florida.

These properties will be managed by the Department of Agriculture and Consumer Services, Division of Forestry as part of the Picayune Strand State Forest.

These acquisitions are consistent with section 187.201(10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 6, Pages 1-14)

RECOMMEND APPROVAL

Board of Trustees

Agenda - June 26, 1997 Page Eight

Item 7 Hillsborough County Option Agreement/Waiver of Appraisal Requirements/ Little Manatee River Addition Project

REQUEST: Consideration of (1) an option agreement to acquire 383.69 acres within the Little Manatee River Addition, Division of Recreation and Parks' Additions and Inholdings project from Hillsborough County (County); and (2) a request for waiver of the appraisal requirements on parcel A-2 in accordance with section 259.041(1), F.S.

COUNTY: Hillsborough

LOCATION: Section 19, Township 32 South, Range 20 East; Section 24, Township 32 South, Range 19 East; and Section 19, Township 32 South, Range 19 East

CONSIDERATION: $351,534 (Board of Trustees' 50 percent share of the County's purchase price)

APPRAISED BY

REVIEW Catlett Pierson APPROVED PURCHASE OPTION

NO. PARCEL ACRES (12/14/95) (01/14/96) VALUE PRICE DATE

711005 A-1 382.29 $1,220,000 $840,000 $1,008,000 $695,068 180 days

A-2 1.40 N/A N/A 8,000* 8,000 after BOT

383.69 $1,016,000 $703,068 approval

* Not Appraised

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

The County purchased 382.29 acres from Finn M.W. Casperson and 1.40 acres from Nancy L. Mixon. Pursuant to a multi-party acquisition agreement entered into between the County and the DSL, the Board of Trustees' purchase price is 50 percent of the County's purchase price for the properties or 50 percent of the approved value, whichever is less. Since the County's purchase price is less than the approved value, the Board of Trustees' purchase price represents 50 percent of the County's purchase price.

Parcel A-2 was purchased by the County without the benefit of a current appraisal approved by the DSL. The County performed an internal review of values utilizing sales in the area and the review justified a market range between $7,000 and $9,000. The second indicator of the market range was a comparison of the tax assessed value of $8,400 and an appraisal performed in 1992 that indicated a value of $9,000. It is the opinion of staff that a new appraisal of Parcel A-2 would have no benefit other than to further justify the contract purchase price. Staff recommends that pursuant to section 259.041(1) F.S., the Board of Trustees waive the requirement for an appraisal of Parcel A-2 and find that the public's interest is reasonably protected because there is sufficient market data available to support the purchase price and the transaction can be completed without incurring additional appraisal costs.

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

A certified survey and environmental site assessment will be provided by the County prior to closing. The County will be reimbursed for 50 percent of the costs of the survey, environmental site assessment and title policy.

Board of Trustees

Agenda - June 26, 1997 Page Nine

Item 7, cont.

The property will be managed by the Division of Recreation and Parks as an addition to Little Manatee River State Recreation Area.

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 1-24)

RECOMMEND APPROVAL

Item 8 Brevco Properties, Inc. Option Agreement/Archie Carr Sea Turtle Refuge CARL Project

REQUEST: Consideration of an option agreement to acquire approximately 20.5 acres within the Archie Carr Sea Turtle Refuge CARL project from Brevco Properties, Inc.

COUNTY: Brevard

LOCATION: Section 14, Township 29 South, Range 38 East

CONSIDERATION: $700,000

APPRAISED BY

REVIEW Sutte Benson APPROVED PURCHASE OPTION

NO. PARCEL ACRES (05/29/96) (05/31/96) VALUE PRICE DATE

711006 Brevco 20.5 $850,000 $852,000 $852,000 $700,000 120 days after

BOT approval

STAFF REMARKS: The Archie Carr Sea Turtle Refuge CARL project is ranked number 2 on the CARL Priority Project List approved by the Board of Trustees on February 13, 1996, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. The Archie Carr Sea Turtle Refuge project contains 948 acres, of which 547.04 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 380.46 acres or 40 percent of the project remains to be negotiated.

The certified survey and the environmental site assessment will be provided by the purchaser prior to closing. The purchaser will also reimburse the seller's title insurance costs.

Although sea turtle nesting occurs from the southern tip of Texas to the southern coast of Virginia, a 20-mile stretch of beach in Brevard and Indian River Counties, Florida, is one of the most significant nesting areas for Loggerhead Sea Turtles in the world; the most significant nesting area for Green Sea Turtles in the western hemisphere; and an occasional nesting area for the Leatherback Sea Turtle, one of the largest and rarest sea turtles. Stretches of quiet, undisturbed sandy beaches, with little or no artificial light, are essential to the reproductive success and survival of sea turtles. For thousands of years, sea turtles have returned each year to these beaches to lay their eggs and continue the species. The Archie Carr Sea Turtle Refuge project is designed to help protect the habitat and assure the continued survival of these endangered sea turtles.

Board of Trustees

Agenda - June 26, 1997 Page Ten

Item 8, cont.

The property will be managed by Brevard County as conservation lands pursuant to the Environmentally Endangered Lands referendum.

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 1-31)

RECOMMEND APPROVAL

Item 9 Garrod Option Agreements/Charlotte Harbor CARL Project

REQUEST: Consideration of two option agreements to acquire approximately 294.97 acres within the Charlotte Harbor CARL project from Karl N. and Mary Lou Garrod and Donald E. and Eloise K. Garrod, Trustees.

COUNTY: Charlotte

LOCATION: Section 05, Township 42 South, Range 23 East

CONSIDERATION: $636,150

APPRAISED BY

REVIEW Norris Corson APPROVED PURCHASE OPTION

NO. PARCEL ACRES (09/03/96) (09/03/96) VALUE PRICE DATE

711007 K. Garrod/46 147.47 $420,000 $407,500 $420,000 $354,950 120 days

711008 D. Garrod/47 147.50 $355,000 $300,000 $355,000 $281,200 after BOT

294.97 $775,000 $636,150 approval

STAFF REMARKS: The Charlotte Harbor CARL project is ranked number 5 on the CARL Substantially Complete Project List approved by the Board of Trustees on February 13, 1996, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. The Charlotte Harbor project contains 25,492 acres, of which 20,920 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves these agreements and other agreements in the Charlotte Harbor project presented today, 3,377.41 acres or 13 percent of the project will remain to be acquired.

Improvements on the property consist of a 1,135 square foot, single-family residence, a 1,826 square foot barn and a small shed. The Division of Marine Resources, the future managing agency, intends to use the barn as a workshop, and convert the residence into office space. Because of its condition, management staff plans to remove the existing shed.

The certified surveys and the environmental site assessments will be provided by the purchaser prior to closing.

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 cities and

Board of Trustees

Agenda - June 26, 1997 Page Eleven

Item 9, cont.

residential developments, which could harm this important resource. By conserving mangrove swamps and salt marshes, the Charlotte Harbor project will help preserve the water quality of the estuary, protect habitat for the Florida manatee and other rare wildlife, and provide residents and visitors to the area with opportunities for boating, fishing, and other recreational pursuits.

These properties will be managed by the Division of Marine Resources as an addition to the Charlotte Harbor State Buffer Preserve.

These acquisitions are consistent with section 187.201 (10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 9, Pages 1-53)

RECOMMEND APPROVAL

Item 10 Dennis J. Fullenkamp/Venice Service Corporation Option Agreements/ Survey Waiver/Charlotte Harbor CARL Project

REQUEST: Consideration of (1) two option agreements to acquire approximately 899.62 acres within the Charlotte Harbor CARL project from Dennis J. Fullenkamp, Trustee and Venice Service Corporation; and (2) a request for survey waiver for the Fullenkamp parcel.

COUNTY: Charlotte

LOCATION: Section 32, Township 41 South, Range 23 East;

Sections 01, 12 and 13, Township 43 South, Range 22 East; and

Sections 06 and 07, Township 43 South, Range 23 East

CONSIDERATION: $3,035,000

APPRAISED BY

REVIEW Norris Corson APPROVED PURCHASE OPTION

NO. PARCEL ACRES (09/03/96) (09/03/96) VALUE PRICE DATE

711009 Fullenkamp 18.00 $ 153,000 $ 153,000 $ 135,000 120 days

711010 Venice 881.62 $ 3,350,000 $3,000,000 $3,350,000 $2,900,000 after BOT

899.62 $3,503,000 $3,035,000 approval

A waiver of the requirement for a survey of the Fullenkamp parcel is requested pursuant to section 18-1.005, F.A.C., because in the opinion of the Bureau of Survey and Mapping, the

Board of Trustees

Agenda - June 26, 1997 Page Twelve

Item 10, cont.

Fullenkamp parcel meets all the following conditions:

the parcel is surrounded by state owned land on three sides and the right of way of State Road 765 (Burt Store Road);
the referenced parcel is located in Section 32, Township 41 South, Range 23 East, which was surveyed in 1987 by Charlotte Engineering and Surveying, Inc. and the survey drawing is acceptable for computing acreage;
the parcel is in its natural unimproved condition; and
the boundary of the parcel does not adjoin fences or improvements other than those managed by the state.

While a waiver of survey for the Fullenkamp parcel is recommended at this time, should a field inspection or the title commitment reveal a substantive surveying or surveying related issue which impacts the parcel, a certified survey will be provided by the purchaser prior to closing.

The certified survey for the Venice Service Corporation parcel and the environmental site assessments for both parcels will be provided by the purchaser prior to closing.

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 cities and residential developments, which could harm this important resource. By conserving mangrove swamps and salt marshes, the Charlotte Harbor project will help preserve the water quality of the estuary, protect habitat for the Florida manatee and other rare wildlife, and provide residents and visitors to the area with opportunities for boating, fishing, and other recreational pursuits.

These properties will be managed by the Division of Marine Resources as an addition to the Charlotte Harbor State Buffer Preserve.

These acquisitions are consistent with section 187.201 (10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 10, Pages 1-59)

RECOMMEND APPROVAL

Item 11 Department of Juvenile Justice/Camelot International, Inc. Option Agreement

REQUEST: Consideration of a "best estimate" option agreement to acquire nine acres by the Board of Trustees for the benefit of the Department of Juvenile Justice from Camelot International, Inc.

COUNTY: Pasco

APPLICANT: Department of Juvenile Justice (DJJ)

LOCATION: Sections 23 and 26, Township 26 South, Range 18 East

CONSIDERATION: $725,000 best estimate (To be appraised by DJJ)

Board of Trustees

Agenda - June 26, 1997 Page Thirteen

Item 11, cont.

STAFF REMARKS: Identifying a need for a juvenile facility in the Pasco County area of the state, the Department of Juvenile Justice, with the assistance of the Division of State Lands (DSL), negotiated this acquisition in accordance with sections 39.074 and 253.025, F. S. Funds for this acquisition were appropriated by the 1996 Florida Legislature and are still available for this acquisition.

Section 39.074, F. S., authorizes DJJ to negotiate and enter into option agreements prior to obtaining an appraisal and review appraisal. DJJ is currently requesting the requisite appraisals. In the event the approved value based upon the appraisals obtained by DJJ does not support the offer of $725,000, the option agreement provides for the purchase price to be adjusted downward. However, if the purchase price falls below $725,000, the seller has the option to terminate the agreement. DJJ based its offer of $725,000 upon the assessed value of the property as well as a 1994 appraisal of the property performed for a bank lending money to the seller.

Pasco County has approved zoning for DJJ to utilize the property and to place from 32 to 40 beds on the property. Six of the structures currently located on the property, consisting of five masonry and one mobile home known as "the office," will remain on the property and be used by DJJ. The remaining structures will be removed.

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

A survey and environmental site assessment of the property will be provided by DJJ prior to closing.

This property will be managed by DJJ as a juvenile justice facility.

This acquisition is consistent with section 187.201(02), F.S., the Children section of the State Comprehensive Plan.

(See Attachment 11, Pages 1-22)

RECOMMEND APPROVAL

Item 12 Clay County Port, Inc. Disclaimer

REQUEST: Consideration of an application for a disclaimer for a parcel of filled lands and of submerged lands beneath twelve docks encompassing 64.7 acres, more or less.

COUNTY: Clay

LOCATION: Section 38, Township 06 South, Range 26 East

APPLICANT: Clay County Port, Inc.

STAFF REMARKS: The applicant has requested a disclaimer to filled lands and an area under docks as "permanent improvements" pursuant to the Butler Act (Chapter 8537, Acts of 1921) and section 253.129, F.S. The courts in several recent decisions (e.g., Jacksonville Shipyards and Industrial Plastics) have held that wharfs and docks constructed prior to the

Board of Trustees

Agenda - June 26, 1997 Page Fourteen

Item 12, cont.

repeal of the Butler Act constitute "permanent improvements" for which disclaimers are appropriate.

An aerial photograph dated April 1949 shows the fill in place and the docks in existence. The docks are still in existence and are in current use.

Staff recommends that because the lands subject to this disclaimer are subject to the inalienable public trust under which the Grantor acquired and holds title to sovereignty lands, a provision be included in the disclaimer providing that, if Grantee permanently abandons any of the improvements on and above said sovereignty lands and as a result of the abandonment said improvements deteriorate and wash away through a gradual, imperceptible process, all right, title and interest in the lands beneath the improvements shall automatically and immediately vest in Grantor, without notice to Grantee, and Grantee shall forfeit all right, title and interest in and to said lands.

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 the proposed action is not subject to the local government planning process.

(See Attachment 12, Page 1-16)

RECOMMEND APPROVAL

Item 13 Florida Rock Industries, Inc. Lease Extension

DEFERRED FROM JUNE 12, 1997 AGENDA

REQUEST: Consideration of a request to extend the term of that portion of lease number 2429 assigned to Florida Rock Industries, Inc., to provide for two additional 10-year renewal options and increased rental/royalty payments.

COUNTY: Dade

Lease Number 2429

APPLICANT: Florida Rock Industries, Inc.

LOCATION: A portion of Sections 22 and 23, Township 53 South, Range 39 East

CONSIDERATION: Minimum annual rental payment (until depletion) of $250,000 against a royalty of $.34 per long ton of rock mined or seven percent of the net sales price (gross sales receipts by definition) of rock sold, whichever is greater.

STAFF REMARKS: On April 14, 1970, the Board of Trustees leased 1,000 acres, more or less, to Seminole Rock Products, Inc., (Seminole) for limerock mining. The lease was granted for an initial term of ten years, with two additional 10-year extensions. In return, Seminole agreed to pay $25,000 in rent for each of the first two years of the lease and $40,000 per year thereafter. Under the lease, these rental payments were to be credited annually against royalties of seven cents per short ton or four percent of sales, whichever was greater. Mining of the property commenced in 1972.

Board of Trustees

Agenda - June 26, 1997 Page Fifteen

Item 13, cont.

On June 17, 1974, the Board of Trustees consented to Seminole subleasing its leasehold interest to Vulcan Materials, Inc. (Vulcan). On February 27, 1987, Seminole formally assigned its rights under the lease to Vulcan, which then became the sole lessee.

On May 17, 1996, Vulcan executed a partial assignment of its rights under lease number 2429 to Florida Rock Industries, Inc., (FRI). Vulcan assigned to FRI "that part of Section 22, Township 53 South, Range 39 East described in the Lease" and the "West 150 feet of the South 2,260 feet of Section 23, Township 53 South, Range 39 East, less the South 660 feet thereof." This assigned area was characterized in the assignment as "Section 22." Vulcan retained for its own use the balance of the leasehold, that is, all remaining portions of Section 23 covered by the lease. Vulcan and FRI agreed to a pro rata division of the leasehold rents and royalties as applicable.

FRI is now requesting that the Board of Trustees amend that portion of lease number 2429 assigned to FRI to extend the term to allow two additional 10-year terms in which to carry out mining activities in Section 22 of the leasehold. In return for the Board of Trustees' grant of this lease amendment, FRI is willing to provide substantially greater rental/royalty payments compared to the original compensation which has not changed since 1970.

Because FRI desires to build a new rock crushing plant in the vicinity of the leased area, FRI would be able to produce sized stone from Section 22 instead of unsized roadbase/fill material. Because sized stone has a greater value than the roadbase material that has historically been produced by Vulcan from Section 23 of the property, FRI would be able to offer the Board of Trustees a higher market value rate of return on an extended lease for Section 22.

FRI and the Division of State Lands have negotiated a fixed annual rental payment to be credited against annual royalties calculated on a per long ton mined basis or percentage of sales, whichever is greater. FRI will guarantee a minimum annual rental payment (until depletion) of $250,000 against a royalty of $.34 per long ton of rock mined or seven percent of the net sales price (gross sales receipts by definition) of rock sold, whichever is greater. FRI will supply monthly operating reports showing the tonnage mined from the Section 22 leasehold during the previous month. As soon as royalties exceed the $250,000 guaranteed rental payment, FRI will furnish the Board of Trustees with monthly royalty payments in accordance with the monthly reports of mined material. Should actual tonnage mined on an annual basis by FRI be worth less than $250,000, no carry forward of rental credit will apply, and under no circumstances will the Board of Trustees' return on the lease be less than $250,000.

Ordinarily, a new lease would be offered on the basis of competitive bidding upon the expiration of the existing lease. However, because FRI is already the lessee of the property and is the owner of other parcels in the vicinity of Section 22, it is in a better position than other producers to maximize the return to the State in both the short and the long term. FRI estimates that approximately 30 million long tons of limerock reserves remain in the Section 22 leasehold. If the lease amendment is approved, FRI will construct the new crushed stone plant and expects to mine on average 1.8 million long tons per year. At the proposed $.34 per long ton royalty rate, the income stream would be approximately $612,000 per year. If the lease amendment is not approved, FRI has indicated that it will accelerate its mining of Section 22 under the existing royalty schedule until the expiration of the lease in April, 2000. FRI anticipates that mining could occur at the rate of 3,125,000 short tons per year until expiration, yielding approximately $245,000 per year for the remaining three years of the lease. Thus, under the proposal, the State will receive more revenue for less rock until the expiration date of the existing lease and will have greater remaining reserves to generate future royalties at the higher rate.

The area under lease to FRI has also been discussed as possible exchange property for land FRI owns in the Pennsuco Wetlands to the west. An effort to preserve the Pennsuco Wetlands as

Board of Trustees

Agenda - June 26, 1997 Page Sixteen

Item 13, cont.

a hydrologic buffer to the Everglades is under way by the Department of Environmental Protection, Dade Environmental Resource Management, and the U.S. Army Corps of Engineers. As yet, no agreement has been reached regarding the terms of such an exchange. Approval of this lease modification will not adversely affect future negotiations regarding the exchange.

(See Attachment 6, Pages 1-11 submitted with the June 12, 1997 agenda)

RECOMMEND APPROVAL

Item 14 City of Miami/Parrot Jungle and Gardens, Inc. Deed Restrictions Modification/Watson Island

REQUEST: Consideration of a request to modify deed restrictions for a parcel of land encompassing 18.6 acres, more or less, on Watson Island, to allow the City of Miami (City) to lease a portion of the parcel to Parrot Jungle and Gardens, Incorporated (Parrot Jungle).

COUNTY: Dade

Dedication No. 19447

APPLICANT: City of Miami

LOCATION: Section 31, Township 53 South, Range 42 East, Biscayne Bay Aquatic Preserve, Class III waters, within the local jurisdiction of the City of Miami.

STAFF REMARKS: On July 23, 1996, the Board of Trustees approved a partial modification of restrictions which would allow moving Parrot Jungle to Watson Island. Following the Board of Trustees' approval of the Partial Modification, the City determined that the Partial Modification contains several terms and provisions which require clarification. Clarification has been proposed as follows:

1. Under the existing agreement, the City is required to guarantee that Parrot Jungle will obtain all permits for the development. The proposed modification recognizes that ownership of the development may change, but not the nature of the operation, and requires the City to guarantee that Parrot Jungle or its successors and/or assigns will obtain the required permits.

2. Under the existing agreement, development of Parrot Jungle must occur within five years of execution of the Partial Modification. The proposed modification clarifies the meaning of "completed" and provides a notification and resolution process in the event of unavoidable delays which are caused by circumstances beyond the control of the City.

3. The proposed modification clarifies the City's payment schedule, which does not commence until Parrot Jungle opens to the public.

4. The Board of Trustees and the City recognize that the City is entitled to basic notice and opportunity for a hearing before the Board of Trustees in case of default. The proposed modification outlines the procedures that will be followed in case of default.

Board of Trustees

Agenda - June 26, 1997 Page Seventeen

Item 14, cont.

5. The proposed modification now allows Parrot Jungle, or its successors and assigns, to cure defaults and specifies the procedure for such cure.

6. The proposed modification recognizes the lease between the City and Parrot Jungle and acknowledges that the relocation and development of Parrot Jungle may be accomplished in accordance with that lease.

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

A copy of the Lease and Development Agreement between the City of Miami, Florida and Parrot Jungle and Gardens, Inc. is being transmitted to each Cabinet office under separate cover.

(See Attachment 14, Pages 1-14)

RECOMMEND APPROVAL

Item 15 Donald J. DeMaria/Scott S. Hutchinson Live Rock Aquaculture Lease

REQUEST: Issuance of a ten-year sovereignty, submerged land live rock aquaculture lease containing 0.15 acre, more or less.

COUNTY: Monroe

Application No. 44-AQ-310

APPLICANTS: Donald J. DeMaria and Scott S. Hutchinson

LOCATION: Approximately nine miles west-south-west of Key West, near Boca Grande Bar, in the Atlantic Ocean, Class III Outstanding Florida Waters, within the local jurisdiction of Monroe County, at the following (latitude/longitude) coordinates:

NW - 24°26.04.055"N NE - 24°26'04.594"N

81°57'18.813"W 81°57'17.692"W

SW - 24°26'03.519"N SE - 24°26'03.877"N

81°57'16.225"N 81°57'17.845"W

CONSIDERATION: $20.58 annually, representing (1) an initial lease fee of $15.58, at a rate of $15.58 per acre or fraction thereof; and (2) an annual surcharge of $5, representing $5 per acre or fraction thereof, for deposit in the Marine Resource Conservation Trust Fund pursuant to s. 370.16(4)(b), F.S. The lease fees shall be adjusted every five years, based upon the five-year average change in the Consumer Price Index.

STAFF REMARKS: The applicants are requesting approval of a commercial aquaculture lease to cultivate and harvest artificial live rock within a 0.15-acre parcel of sovereignty, submerged land, in the Atlantic Ocean. The proposed project involves the placement of approximately 40 tons of quarried non-indigenous rock per year that will be obtained from a local upland borrow pit, in order to recruit larval marine organisms from a corridor of hard bottom habitat adjacent to the proposed lease site. Once a desired rock growth stage has been achieved, the applicant will harvest the rocks and sell them in conjunction with the aquarium trade.

Board of Trustees

Agenda - June 26, 1997 Page Eighteen

Item 15, cont.

The harvest of wild live rock is banned in both state and federal waters. As such, persons such as the applicants, whose livelihoods are dependent on the harvest of live rock, will be put out of business, unless such harvest takes place on approved live rock aquaculture leases in state waters, and permitted sites in federal waters.

The proposed project is located within Monroe County, designated as Outstanding Florida Waters; as such, no dredge/fill permit should be issued if such activity damages the viability of a living stony coral community, soft coral community, sponge bed, or marine seagrass community. The field staff determined that no adverse impacts to those resources would occur because the site is void of seagrass beds and such other significant resources. This position was reaffirmed when the staff of the Submerged Lands and Environmental Resources Permitting Program indicated that the proposed project qualifies for a deminimus exemption, indicating that no adverse environmental impacts are anticipated from the proposed activities, and providing that special lease conditions are implemented.

The proposed project site is 45 feet in depth. Pursuant to the special lease conditions, no more than 25 percent of the water column shall be preempted by rock materials, and a clearance of six feet at mean low water to provide for public navigation across the project site.

Chapter 258.42, F. S., states that aquaculture is presumed to be in the public interest and is limited to activities that do not result in adverse environmental impacts. The Department of Environmental Protection (DEP) has not applied a more stringent standard to aquaculture leases in other waters of the state than it has in aquatic preserves. The presumption that aquaculture is in the public interest has been extended to Outstanding Florida Waters.

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

(See Attachment 15, Pages 1-14)

RECOMMEND APPROVAL SUBJECT TO FINAL ACTION BY THE U. S. ARMY CORPS OF ENGINEERS AND THE ENVIRONMENTAL RESOURCE PERMITTING PROGRAM, AND COMPLIANCE WITH THE SPECIAL LEASE CONDITIONS

Item 16 St. Lucie County Port and Airport Authority Recommended Consolidated Intent

REQUEST: Consideration of an application for a modification of a five-year sovereignty submerged land lease to (1) increase the preempted area from 38,052 square feet to 43,124 square feet, more or less, for an existing public boat/commercial boat mooring facility; (2) extend the term of the lease to 25 years; and (3) modify a special lease condition.

COUNTY: St. Lucie

Lease Number 561391568

Application Number 562947406

APPLICANT: St. Lucie County Port and Airport Authority

Board of Trustees

Agenda - June 26, 1997 Page Nineteen

Item 16, cont.

LOCATION: Sections 2 and 3, Township 35 South, Range 40 East, Fort Pierce Inlet, Class III waters, St. Lucie County

Aquatic Preserve: No

Outstanding Florida Water: No

CONSIDERATION: $6,074.55 representing (1) $4,887.56 as the initial lease fee computed at the base rate of $0.1101 per square foot, and including the initial 25 percent surcharge for the additional area; and (2) $1,186.99 as the annual extended lease term payment calculated at .25 times the lease fee. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable. The lease fee may be adjusted based on seven percent of the rental rate pursuant to section 18-21.011, F.A.C.

STAFF REMARKS: The Board of Trustees authorized a rule amendment on September 14, 1995, to link the two processes of regulatory and proprietary reviews and authorizations. The rule became effective October 12, 1995. As a result of this linkage, the recommended Department of Environmental Protection (DEP) regulatory permit decision and the recommendation to the Board of Trustees on the proprietary authorization are contained in one document, the attached "Consolidated Notice of Intent to Issue." The attached consolidated intent contains a recommendation for issuance of a permit under Part IV of chapter 373, F.S., and a recommendation for granting authorization to use sovereignty submerged lands under chapters 253 and 258, F.S., for the activity described therein. This recommendation is provided to the Board of Trustees pursuant to section 373.427(2), F.S. A description of the requested activity is provided in Section I, "Description of the Proposed Activity." The specific basis for recommending approval of the authorization to use sovereignty submerged lands is contained in Section III "Background/Basis for Issuance."

Approval by the Board of Trustees is requested only for those aspects of the activity that require authorization to use sovereignty submerged lands. If the Board of Trustees approves the request to use sovereignty submerged lands and if the activity also qualifies for an environmental resource permit and no challenges are successful, the Consolidated Notice of Intent will be issued and will contain general and specific conditions. If the Board of Trustees denies the use of sovereignty submerged lands, whether or not the activity otherwise qualifies for an environmental resource permit, DEP will issue a "Consolidated Notice of Denial" for both the environmental resource permit and the authorization to use sovereignty submerged lands.

The lessee is proposing to expand the public boat/commercial boat mooring facility, containing 38,052 square feet, by adding 5,072 square feet for a total lease area of 43,124 for the mooring of commercial vessels. The existing lease area consists of two commercial docks, a T-shaped dock and an L-shaped dock within the existing lease area. The proposed expansion involves the lease area around the T-shaped dock only, and will include the addition of 16 mooring dolphins to increase the mooring area.

The purpose of the piling installation is to allow for the safe mooring of a 162-foot-long offshore excursion vessel on the northern side of the existing wooden "T" dock, and an 85-foot-long river excursion vessel on the south side of the "T" dock. The remaining area along the access walkway leading to the "T" will be open to the public for temporary, daytime mooring. The lessee has advised that this facility will provide space for ships operating as "Cruises to Nowhere." The commercial slips will be available for overnight mooring.

The lessee is also requesting approval to modify the existing five year sovereignty submerged land lease by extending the term to 25 years. Because the lessee is in compliance with the terms and conditions of the existing lease, and since the proposed extended lease is consistent Board of Trustees

Agenda - June 26, 1997 Page Twenty

Item 16, cont.

with the extended term lease policy, staff recommends approval of the requested lease modification.

The lessee has requested a modification of special lease condition 30 to change the language to allow overnight mooring on the landward side of the T-shaped dock. Accordingly, paragraph 30 (d) and (e) will be revised as follows:

(d) Public access and temporary docking shall be authorized along the landward 150 feet of the northern T-shaped dock. The Lessee shall ensure that only temporary, daytime docking will be allowed at the public portion of the northern T-shaped dock. Overnight or permanent mooring is prohibited along the access dock landward of the pilings that make up the commercial slips. Overnight commercial mooring is authorized in the three slips at the end of the T-shaped dock.

(e) The Lessee will install and maintain a sewage pumpout facility pursuant to the Department of Environmental Regulation Permit Number 561391568.

The DEP environmental resource permit prohibits fueling facilities. Overnight docking is permitted only on the commercial terminal "T" portion of the dock. A sewage pumpout facility is required, pursuant to DER Permit Number 561391568. The recommendations of the Division of Marine Resources regarding protection of manatees are included in the environmental resource permit. The project was not required to be noticed.

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 is 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 DCA dated October 16, 1996.

(See Attachment 16, Pages 1-30)

RECOMMEND APPROVAL SUBJECT TO THE SPECIAL LEASE CONDITIONS AND PAYMENT OF $6,074.55.

Item 17 L. Allan Bazzy (d/b/a Bradenton Beach Marina) Lease Modification

REQUEST: Consideration of an application for (1) a modification of a fiveyear sovereignty submerged land lease to increase the preempted area from 22,114 square feet to 84,414 square feet, more or less, for an existing commercial multi-slip marina/docking facility; and (2) authorization for the placement of 102 cubic yards of riprap.

COUNTY: Manatee

Lease Number 410555143

Application Number 412689053

APPLICANT: L. Allan Bazzy, as Trustee of the L. Allan Bazzy Trust Agreement

(d/b/a Bradenton Beach Marina)

Board of Trustees

Agenda - June 26, 1997 Page Twenty-one

Item 17, cont.

LOCATION: Section 4, Township 35 South, Range 16 East, in Sarasota Bay, Class II Outstanding Florida Waters, within the local jurisdiction of the town of Bradenton Beach, Manatee County.

Aquatic Preserve: No

Manatee Area idle/slow speed/caution zone: Yes

Outstanding Florida Waters: Yes

CONSIDERATION: $20,720.60, representing (1) $8,220.60 as the initial lease fee computed at the base rate of $0.1101 per square foot, discounted 30 percent because of the first-come, first-served nature of the facility, and including the initial 25 percent surcharge payment for the additional area; and (2) $12,500 as an administrative fine for the unauthorized use of sovereignty submerged land. The lessee has paid $5,903 through a Temporary Use Agreement (TUA) for the unauthorized use of sovereignty submerged land, including a $2,500 administrative fine and $3,403 as lease fees in arrears and forward through November 27, 1997. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable. The lease fee may be adjusted based on seven percent of the rental rate pursuant to section 18-21.011, F.A.C.

STAFF REMARKS: The lessee is proposing to expand an existing 16slip commercial marina facility by adding 20 boat slips, thereby creating a 36-slip facility over sovereignty submerged lands. The current sovereignty submerged land lease allows for 18 slips, but two slips have been eliminated. The expanded facility would be used in conjunction with the lessee's 75-slip dry dock marina facility located on the lessee's riparian uplands. The proposed new expansion, totaling 40,104 square feet of preempted area, would add the following structures to the existing marina: (1) a 248 feet long x 10 feet wide access pier; (2) ten 16 feet long x 3 feet wide finger piers; (3) a 90 feet long x 12 feet wide terminal platform at the end of the access pier; and (4) 30 mooring pilings. Also proposed is the placement of 102 cubic yards of rubble rip-rap along the lessee's riparian shoreline. The proposed 20-slip dock would replace an existing dock utilized for temporary mooring.

The lessee is also requesting after-the-fact authorization for the existing preemption of 22,196 square feet of sovereignty submerged lands. A December 5, 1995 site inspection of the lessee's marina by Department of Environmental Protection (DEP) proprietary staff revealed the existing facility was not in compliance with the terms and conditions of the existing lease. The lessee had added the following structures to the existing marina without authorization, the majority of which extended outside the lease area: (1) two decks totaling approximately 1,120 square feet; (2) three floating docks of 148 feet long x 5 feet wide, 61 feet long x 5 feet wide and 48 feet long x 4 feet wide. In addition, the lessee had begun construction of a building (later to become a restaurant) over one of the decks within the boundaries of the existing sovereignty submerged land lease. A verbal notice of the violations was given by DEP staff to the lessee. A second site inspection conducted on February 21, 1996, revealed the following structures had also been constructed since the December 5, 1995, site inspection: two perimeter docks measuring 245 feet long x 1 foot wide and 62 feet long x 2 feet wide. An April 10, 1996, site inspection for the purpose of fully delineating the extent of all violations revealed that the lessee had violated the terms and conditions of his lease by operating a restaurant, a non-water dependent structure (the incomplete building found at the December 5, 1995, site inspection), over submerged lands. A warning letter enumerating the violations was sent by the Southwest District Office to the lessee on May 2, 1996. The lessee was advised that he was in violation of paragraph 17 of his sovereignty submerged lands lease which specifically prohibits restaurant or dining activities to occur within his lease area. The warning letter directed the lessee to cease all violations immediately. Staff met with the lessee twice (June 11, 1996 and July 25, 1996) following the warning letter to discuss what additional requirements he must meet to come into compliance Board of Trustees

Agenda - June 26, 1997 Page Twenty-two

Item 17, cont.

through a Consent Order and TUA. However, at the June 11th meeting and in a follow up letter on June 19th, DEP legal counsel again specifically directed the lessee to cease the operation of the restaurant. As the lessee had not ceased the operation of the restaurant, a letter revoking his lease was sent on August 2, 1996. Upon ceasing the operation of the restaurant by the lessee and relocating it to the lessee's riparian upland property within 30 days of the lease termination notice, staff gave oral notice to the lessee that the lease termination notice was rescinded. The lessee has since entered into a TUA for the other unauthorized structures lying outside the boundaries of the lease area totaling 12,584 square feet, and paid a total of $5,903 for the unauthorized use of sovereignty submerged land, including a $2,500 administrative fine and $3,403 as lease fees in arrears and forward through November 27, 1997. After the TUA had been executed, staff became aware of an additional 9,612 square feet of existing preempted area (for a total of 22,196 square feet) utilized as vessel turning areas that should be included in the request for after-the-fact authorization. Staff recommends that lease fees for the additional turning areas be assessed forward from the effective date of the lease modification, since it was an oversight by staff that resulted in the shortage of lease fees in arrears being collected through the TUA.

Although a TUA has been issued and fees and fines have been collected, DEP is concerned with the flagrancy of the violation, the fact that the lessee continued operation of the restaurant in direct violation of his lease and after receiving written notice to cease and desist by district staff. Since the lessee willfully violated his lease, staff recommends the Board of Trustees assess an additional $10,000 fine over the $2,500 fine already collected from the lessee. The Board of Trustees adopted an administrative fine policy on August 14, 1990. Based on that policy, staff is requesting the Board of Trustees assess an administrative fine for the unauthorized use of sovereignty submerged lands resulting from the construction of the docks and the mooring of vessels outside the lease boundaries. Staff proposed calculating the administrative fine, pursuant to Board of Trustees' policy, at the rate of $0.50 per square foot. However, because the fine is more than the maximum base fine, the maximum base fine of $2,500 will apply. A multiplier of one is applied since staff is recommending approval of the previously unauthorized activity ($2,500). A multiplier of four is applied because the lessee continued the violation after receiving written notice from DEP ($10,000). The total recommended administrative fine is $12,500, of which the applicant has already paid $2,500.

DEP also considered whether the lessee's request for after-the-fact authorization of 22,196 square feet of preempted area and the proposed 20-slip dock totaling 40,104 square feet of preempted area should be denied due to the flagrancy of the violation. Staff believes that the lessee should be credited with the level of cooperation he provided the DEP beginning with the two meetings between him and staff on June 11, 1996 and July 25, 1996, when he agreed to comply and take the necessary steps to relocate his restaurant to his riparian uplands. The lessee contends that a sublease with the restaurant tenant and the prospect of a legal suit by the tenant prevented him from taking immediate action to comply with the May 2, 1996, warning letter. In light of the lessee's cooperation in removing the restaurant and entering into the TUA, and because of no record of previous violations having been committed at his site dating back to November 17, 1983, staff is proposing that the lessee be allowed to modify his existing lease to include the existing previously unauthorized structures and proposed 20-slip dock, subject to the payment of the additional $10,000 fine.

All of the proposed slips will be maintained on an open to the public, first-come, first-served basis and this has been addressed as a special lease condition.

The DEP wetland resource permit does not authorize liveaboards and fueling facilities associated with the proposed structures. The DEP regulatory consent order for the unauthorized structures

Board of Trustees

Agenda - June 26, 1997 Page Twenty-three

Item 17, cont.

requires sewage pumpout facilities. The recommendations of the Division of Marine Resources have been addressed in the wetland resource permit or are included as special lease conditions in the existing lease. There are no seagrasses/resources within the proposed expansion area. The project was not required to be noticed.

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 is 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. A local permit has been received for the proposed action which has therefore been determined to be consistent with the adopted plan.

(See Attachment 17, Page 1-53)

RECOMMEND APPROVAL OF A MODIFIED LEASE FOR 84,414 SQUARE FEET SUBJECT TO THE SPECIAL LEASE CONDITION, AND PAYMENT OF $8,220.60 AS THE INITIAL LEASE FEE AND $10,000 ADDITIONAL ADMINISTRATIVE FINE.