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AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

OCTOBER 21, 1997


Item 1 Minutes

Submittal of the minutes of the September 9, 1997 Cabinet meeting.

RECOMMEND ACCEPTANCE


Item 2 Quarterly Management Report

DEFERRED FROM THE OCTOBER 9, 1997 AGENDA

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

(See Attachment 2, Pages 1-12)

RECOMMEND ACCEPTANCE


Item 3 Acceptance of Northwest Florida Water Management District Land Acquisition Procedures

DEFERRED FROM THE OCTOBER 9, 1997 AGENDA

REQUEST: Consideration of a recommendation to accept the land acquisition procedures of the Northwest Florida Water Management District with agreed upon modifications as meeting the standards necessary for ownership by the Board of Trustees for acquisitions made pursuant to section 259.041(16), F.S. (1994).

STAFF REMARKS: During the 1994 legislative session, several significant changes to the State's land acquisition procedures were adopted and have been incorporated into section 259.041, F.S. (1994) to facilitate the timely acquisition of conservation and recreation lands. Among those changes were several that will result in the state being able to work more closely with the various water management districts to jointly acquire property. Specifically, section 259.041(16), F.S., provides that the Board of Trustees may agree to accept an undivided interest in property acquired by a water management district without the need of determining whether that title meets all of the Board of Trustees' requirements so long as it was acquired under the water management district's procedures. In addition, section 259.041(1), F.S., allows the Board of Trustees to substitute for its own procedures other reasonably prudent procedures so long as it believes the public's interest is being reasonably protected.

In order to implement these provisions the Department of Environmental Protection (DEP) has developed a three-step process. First, DEP staff meets with staff of the water management district to review its acquisition procedures. Once DEP staff is satisfied that those procedures are adequate, it recommends that the Board of Trustees agree to allow them to be used in lieu of its own procedures pursuant to project specific agreements. Second, DEP staff and water management district staff negotiate project specific agreements under which the water management district acquires land using the agreed upon procedure. These agreements are also submitted to the Board of Trustees for approval. Once the agreement has been approved by the Board of Trustees, the water management district will attempt to acquire land within the respective project using the approved procedures. Third, once the water management district has contracted to purchase parcels under the Board of Trustees approved agreements, DEP staff will submit each purchase agreement to the Board of Trustees for consideration. At Board of Trustees

Agenda - October 21, 1997 Page Two


Item 3, cont.

closing, title to the land will vest jointly in the Board of Trustees and the water management district. Pursuant to the agreement, the Board of Trustees will reimburse the water management district for its share of the purchase price and acquisition costs.

Since September 13, 1994, the Board of Trustees has approved the procedures of the St. Johns River, Southwest Florida and South Florida Water Management Districts pursuant to this process. Since that time, many project specific agreements have been approved by the Board of Trustees under which these water management districts have acquired property on behalf of the Board of Trustees. This alternate process has proven to be successful in streamlining the acquisition process on joint acquisitions with water management districts.

DEP staff is now prepared to recommend that the Board of Trustees also approve the procedures of the Northwest Florida Water Management District (District). DEP staff has met with District staff to review its operations and discuss land acquisition policy, procedures and philosophy. DEP staff has also completed a review of the District's written rules, policies, procedures and the audit performed by the Office of the Auditor General, dated April 11, 1996. The DEP recommends that those procedures, with a few modifications, be considered reasonably prudent and substituted for the procedures provided for in section 259.041, F.S., and section 18-1, F.A.C., to allow the District to acquire lands to be owned jointly by the District and the Board of Trustees. The most significant modification to the District's normal procedures will be a requirement for an appraisal review by a state certified appraiser and the adoption of State Land Acquisition Procedures (section 18-1, F.A.C.) pertaining to the resolution of divergent appraisals. Staff believes that these appraisal procedure modifications adequately address the concerns of the Auditor General and are consistent with sound real estate practices. In addition, DEP staff will contract for all survey work to be conducted in association with subsequent joint acquisition agreements between the District and the Board of Trustees. The appraisal and survey modifications shall be included in all agreements entered into between the Board of Trustees and the District.

If the Board of Trustees concurs with this recommendation, DEP staff will negotiate project specific agreements with the District and present them to the Board of Trustees for consideration.

A consideration of the status of the local government comprehensive plan 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 4, Pages 1-44 submitted with the October 9, 1997 agenda)

(See Attachment 3, Page 45)

RECOMMEND APPROVAL


Item 4 Annual Land Management Review Findings/Checklist for Conducting Reviews

REQUEST:  Consideration of annual land management review findings and checklist for conducting reviews.

COUNTY:  Statewide

Board of Trustees

Agenda - October 21, 1997 Page Three


Item 4, cont.

STAFF REMARKS: Legislation passed during the 1997 session (Ch. 97-164, Laws of Florida) requires the Board of Trustees, acting through the Department of Envrionmental Protection (DEP), to conduct management reviews of selected conservation, preservation and recreation lands titled to the Board of Trustees to determine whether those lands are being managed for the purposes for which they were acquired and in accordance with their adopted management plans. The legislation requires the DEP to submit a report of its findings to the Board of Trustees no later than the second board meeting in October of each year. Although no reviews were conducted during the last fiscal year, the DEP is submitting this report to explain the program to the Board of Trustees; to list the properties selected for review during the next year; and to depict the process and form of the review process.

Staff has selected properties from a database, and review team members have been selected in accordance with the requirements of the legislation. A review checklist to determine if the parcel is being managed for the purpose for which it was acquired and in accordance with its land management plan has been provided to and reviewed by each participating state agency and to the soil and water conservation districts. In order to expedite the review process, management review team staff, along with environmental advisors and site managers, are inspecting the selected properties prior to the formal review to provide information necessary for meeting required objectives.

The DEP land management review team staff has met with representatives of the Water Management Districts and will coordinate reviews where Water Management District lands are adjacent to Board of Trustees lands and when the Board of Trustees has joint ownership of parcels with the Water Management Districts. Four management reviews have been conducted, two each in September and October. Reports of the management review teams are being provided to the managing agencies and to the Land Acquisition and Management Advisory Council, as they are completed.

(See Attachment 4, Pages 1-11)

RECOMMEND ACCEPTANCE


Item 5 Department of Children and Family Services/Olympia Spa and Gulf Resort, Inc., Sublease Agreement

REQUEST: Consideration of a request to approve a sublease agreement between the Department of Children and Family Services and Olympia Spa and Gulf Resort, Inc.

COUNTIES: Gadsden County, Florida, and

Decatur County, Georgia

Lease No. 3381

APPLICANT: Department of Children and Family Services (DCF) and Olympia Spa and Gulf Resort, Inc. (Olympia)

LOCATION: Section 33, Township 04 North, Range 06 West, Gadsden County, Florida, and Lot No. 418 in the 21st. District of Decatur County, Georgia.

CONSIDERATION: A variable percentage of gross monthly revenues to be paid to the Florida State Hospital Welfare Trust Fund.

Board of Trustees

Agenda - October 21, 1997 Page Four


Item 5, cont.

STAFF REMARKS: DCF currently leases 542 acres in Decatur County, Georgia, and Gadsden County, Florida, for the Florida State Hospital. The lands are part of a larger tract purchased by the Board of Commissioners of State Institutions between 1921 and 1928 that has been used for state hospital purposes, watershed protection, and timbering in connection with an offender rehabilitation program at the Apalachee Correctional Institution. Title vested in the Board of Trustees pursuant to chapters 67-269 and 67-2236, both Acts of 1967, Laws of Florida. At present, 1,562 acres in Georgia and 4,767 acres in Florida, are managed by the Department of Corrections and PRIDE in conjunction with the Apalachee Correctional Institution, while DCF manages 88.95 acres in Georgia and 453.05 acres in Florida for the Florida State Hospital.

DCF is proposing to sublease 103.76 acres to Olympia for the continued operation and maintenance of the Seminole Valley Golf Course. The term of the sublease will be for a period of ten years with two five-year renewal options. Historically, there has been a golf course on the grounds of Florida State Hospital since the late 1940s. The first golf course was built with the assistance of a group of doctors at the hospital and was used by hospital staff and by surrounding communities. In the late 1970s, a legislative mandate resulted in the closing of a forensic facility at South Florida State Hospital in Pembroke Pines. Plans for a new facility in that area met with opposition and DCF's predecessor, Department of Health and Rehabilitative Services, was forced to relocate the facility to Florida State Hospital on the grounds of the original golf course. To compensate for the loss of the course, the Legislature elected to appropriate funds to rebuild the golf course elsewhere on the hospital grounds.

The golf course was re-located to a site which covers 88.95 acres in Decatur County, Georgia, and 14.81 acres in Gadsden County, Florida. Construction began in 1983 and the course opened for play on November 13, 1986. Florida State Hospital operated the course from the time of opening until September 14, 1993, when the course was subleased to The Cowles Company of Albany, Georgia. Mr. Cowles suffered tremendous losses (his home and another golf course in Albany) from flooding that occurred in 1994. He subsequently gave notice of cancellation of the sublease. The sublease was then offered to the Master's Corporation which operated the course until November 1996.

The property has been sitting idle since 1996. DCF submitted a Request for Proposal, RFP No. 98-001, and published notice in the Florida Administrative Weekly. Olympia was selected to manage the course. In consideration for the sublease, Olympia will pay a percentage of its gross monthly revenues to the Florida State Hospital Welfare Trust Fund in accordance with the table depicted on page two of the sublease agreement.

A consideration of the status of the local government comprehensive plan was not made for this item. The request is for continued use of a golf course that has been in existence since 1983.

(See Attachment 5, Pages 1-51)

RECOMMEND APPROVAL

Board of Trustees

Agenda - October 21, 1997 Page Five


Item 6 South Florida Water Management District/Atlantic Ridge Ecosystem CARL Project Acquisition Agreement

REQUEST: Authority to enter into an acquisition agreement with South Florida Water Management District for the Atlantic Ridge Ecosystem CARL project.

COUNTY: Martin

LOCATION: Sections 34 and 35, Township 38 South, Range 41 East; Sections 02, 03, 04, 09 through 16, 21, 22 and 24, Township 39 South, Range 41 East; Section 37, Gomez Grant West of Intercoastal Waterway, Township 39 South, Range 41 East; and Sections 18 through 20, 29 and 30, Township 39 South, Range 42 East.

STAFF REMARKS: The Atlantic Ridge Ecosystem CARL project is ranked number 2 on the Bargain/Shared CARL List approved by the Board of Trustees on February 11, 1997, and is funded under the Division of State Lands' Land Acquisition Workplan. The proposed agreement covers 12,514 acres, more or less, of the Atlantic Ridge Ecosystem CARL project owned by multiple owners.

To facilitate the acquisition of this project, the South Florida Water Management District (District) has offered to take the lead in the acquisition of this joint project. Department of Environmental Protection (DEP) staff has prepared an agreement that would allow the District to acquire the Atlantic Ridge Ecosystem CARL project in accordance with section 259.041(16), F.S., utilizing the procedures set out in section 373.139, F.S. On June 15, 1995, the Board of Trustees approved the use of the District's procedures to allow the District to acquire lands to be held jointly by the Board of Trustees and the District.

On June 12, 1997, the Governing Board of the District approved the agreement and execution of the agreement is pending. If approved today, DEP staff will execute the agreement on behalf of the Board of Trustees after the District executes the agreement.

Incorporated into the agreement are a number of assurances that the District is giving the Board of Trustees in return for its consideration of this agreement. The District has agreed to: (1) comply with the procedures set out in section 373.139, F.S.; (2) defend the Board of Trustees against all title and survey disputes or defects and environmental contamination associated with each acquisition negotiated by the District that were either known or should have been known by the District at the time the District acquired the parcel; and, (3) reimburse the Board of Trustees 50 percent of any overpayment of the purchase price if an audit or investigation determines that the purchase price paid exceeded the actual appraised value.

Under the proposed agreement, the District staff will obtain and review appraisals, negotiate a purchase contract and secure the approval of its governing board. The District will provide DSL with a board resolution requesting reimbursement of the Board of Trustees' share of the purchase price. DEP staff will seek approval for the Board of Trustees' share of the purchase price for each parcel the District contracts to purchase. In addition, the agreement provides for the District to be reimbursed 50 percent of all costs associated with its attempt to acquire lands within the project, including all pre-acquisition and closing related costs, with the pre-acquisition costs and certain closing costs being reimbursed even if the District is unsuccessful in acquiring any property. The agreement authorizes DEP staff to reimburse these costs from CARL incidental expense funds previously released by the Board of Trustees. If the Board of Trustees approves a specific purchase, the District will proceed to closing with title to be vested jointly with the District and the Board of Trustees each holding an undivided 50 percent interest.

Board of Trustees

Agenda - October 21, 1997 Page Six


Item 6, cont.

The Atlantic Ridge Ecosystem CARL project will be managed by the Division of Recreation and Parks as a unit of the state park 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 6, Pages 1-18)

RECOMMEND APPROVAL


Item 7 Southwest Florida Water Management District/Cape Haze/Charlotte Harbor CARL Project Acquisition Agreement

REQUEST: Authority to enter into an acquisition agreement with Southwest Florida Water Management District for the Cape Haze/Charlotte Harbor CARL project.

COUNTY: Charlotte

LOCATION: Sections 23 through 27 and 33 through 36, Townshsip 41 South, Range 20 East; Sections 01 through 03, 10 and 12, Township 42 South, Range 20 East; Sections 30 through 35, Township 41 South, Range 21 East; and Sections 02 through 04, 06 and 09 through 11, Township 42 South, Range 21 East

STAFF REMARKS: The Cape Haze/Charlotte Harbor CARL project is ranked number 4 on the Bargain/Shared CARL List approved by the Board of Trustees on February 11, 1997, and is funded under the Division of State Lands' Land Acquisition Workplan. The proposed agreement covers 6,800 acres, more or less, owned by Rontonda Properties.

To facilitate the acquisition of this project, the Southwest Florida Water Management District (District) has offered to take the lead in the acquisition of this joint project. Department of Environmental Protection (DEP) staff has prepared an agreement that would allow the District to acquire the Cape Haze/Charlotte Harbor CARL project in accordance with section 259.041(16), F.S., utilizing the procedures set out in section 373.139, F.S.. On April 11, 1995, the Board of Trustees approved the use of the District's procedures to allow the District to acquire lands to be held jointly by the Board of Trustees and the District.

If the Board of Trustees approves this item, the District staff will present the agreement to the Governing Board of the District for execution at its next Governing Board meeting. Upon receipt of the executed agreement from the District, DEP staff will execute the agreement on behalf of the Board of Trustees.

Incorporated into the agreement are a number of assurances that the District is giving the Board of Trustees in return for its consideration of this agreement. The District has agreed to: (1) comply with the procedures set out in section 373.139, F.S.; (2) defend the Board of Trustees against all title and survey disputes or defects and environmental contamination associated with each acquisition negotiated by the District that were either known or should have been known by the District at the time the District acquired the parcel; and, (3) reimburse the Board of Trustees 50 percent of any overpayment of the purchase price if an audit or investigation determines that the purchase price paid exceeded the actual appraised value.

Board of Trustees

Agenda - October 21, 1997 Page Seven


Item 7, cont.

Under the proposed agreement, the District staff will obtain and review appraisals, negotiate a purchase contract and secure the approval of its governing board. The District will provide DEP's Division of State Lands with a board resolution requesting reimbursement of the Board of Trustees' share of the purchase price. DEP staff will seek approval for the Board of Trustees' share of the purchase price for each parcel the District contracts to purchase. In addition, the agreement provides for the District to be reimbursed 50 percent of all costs associated with its attempt to acquire lands within the project, including all pre-acquisition and closing related costs, with the pre-acquisition costs and certain closing costs being reimbursed even if the District is unsuccessful in acquiring any property. The agreement authorizes DEP staff to reimburse these costs from CARL incidental expense funds previously released by the Board of Trustees. If the Board of Trustees approves a specific purchase, the District will proceed to closing with title to be vested jointly with the District and the Board of Trustees each holding an undivided 50 percent interest.

Parcels purchased under this agreement within the Cape Haze/Charlotte Harbor CARL project will be managed by the DEP's, Division of Marine Resources as a 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 7, Pages 1-9)

RECOMMEND APPROVAL


Item 8 Bell South Telecommunications, Inc./Fort Mose Addition/Division of Recreation and Parks' Additions and Inholdings Project Option Agreement

REQUEST: Consideration of an option agreement to acquire 6.36 acres within the Fort Mose Addition, Division of Recreation and Parks' Additions and Inholdings project from Bell South Telecommunications, Inc.

COUNTY: St. Johns

LOCATION: J. Baya Grant, Sections 56 and 60, Township 07 South, Range 30 East

CONSIDERATION: $54,200

APPRAISED BY

REVIEW Emerson APPROVED PURCHASE OPTION

NO. PARCEL ACRES (09/18/96) VALUE PRICE DATE

717001 BellSouth 6.36 $54,200 $ 54,200 $ 54,200 120 days

after BOT

approval

STAFF REMARKS: The Fort Mose Addition project has been identified on the Division of Recreation and Parks' Additions and Inholdings List. This agreement was negotiated by the Division of State Lands on behalf of the Division of Recreation and Parks under the State Parks' Additions and Inholdings Preservation 2000 program.

The seller will retain a 0.32-acre parcel in the extreme northwest corner of the property which is currently improved with a radio tower communication facility. If the seller ever ceases to use the 0.32-acre parcel as a radio tower communication facility, it will donate the parcel to

Board of Trustees

Agenda - October 21, 1997 Page Eight


Item 8, cont.

the state. Prior to closing, seller will record an Intent to Donate in the Public Records of St. Johns County. The seller is retaining a non-exclusive easement for ingress and egress and utility purposes for the operation and maintenance of the tower site.

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.

A certified survey will be provided by the purchaser and an environmental site assessment will be provided by the seller prior to closing. Purchaser will reimburse the seller's cost of the environmental site assessment, not to exceed $3,500, and the seller's title insurance costs.

The property will be managed by the Division of Recreation and Parks as a part of the Fort Mose State Historic Site.

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

(See Attachment 8, Pages 1-40)

RECOMMEND APPROVAL


Item 9 Wayne and Margie Mixson/Carolyn D. Huff/Florida First Magnitude Springs (Blue Springs) CARL Project Option Agreements

REQUEST:  Consideration of two option agreements to acquire 25.78 acres within the Florida First Magnitude Springs (Blue Springs) CARL project from Wayne and Margie Mixson and Carolyn D. Huff.

COUNTY:  Jackson

LOCATION:  Section 06, Township 04 North, Range 09 West

CONSIDERATION:  $312,000

APPRAISED BY

REVIEW Brown APPROVED PURCHASE OPTION

NO. PARCEL ACRES (06/11/96) VALUE PRICE DATE

717002 Mixson 13.80 $160,000 $160,000 $156,000 120 days

717003 Huff 11.98 $160,000 $160,000 $156,000 after BOT

25.78 $320,000 $312,000 approval

STAFF REMARKS: The Florida First Magnitude Springs (Blue Springs) CARL project is ranked number 13 on the CARL Priority Project List approved by the Board of Trustees on February 11, 1997, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. The project contains 348 acres, of which 231 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 91.22 acres or 26 percent of the project will remain to be acquired.

These properties are subject to outstanding oil, gas and mineral interests in favor of Jno M. Biggerstaff. These outstanding interests affect the entire property. The sellers will attempt to

Board of Trustees

Agenda - October 21, 1997 Page Nine


Item 9, cont.

acquire the outstanding interests prior to closing. In the event the sellers are unable to acquire the outstanding interests, staff recommends acquiring the properties subject to the outstanding interests. The Bureau of Geology determined that the potential for oil, gas and mineral production at these sites is considered low and it does not appear as though these parcels contain any major economic reserves, except for limestone. The Bureau of Appraisal has indicated that the outstanding interests do not affect the market value of the properties. Jackson County has determined that the properties can be effectively managed subject to the outstanding oil, gas and mineral interests.

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.

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

Large springs of clear, continuously flowing water are among Florida's most famous and important natural and recreational resources. The cavernous water-filled rocks of the Floridian Aquifer supply the largest spring. By preserving land around eight of the largest (first-magnitude) springs, this project will protect them--and the Floridian Aquifer--from the effects of commercial, residential, and agricultural runoff; clearcuttting and mining; and unsupervised recreation. This project will ensure that Floridians and visitors from all over the world will be able to enjoy these springs for years to come.

These properties will be managed by Jackson County as a recreational facility.

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 1-37)

RECOMMEND APPROVAL


Item 10 Gerald Fleisher/Rookery Bay CARL Project Option Agreement

REQUEST:  Consideration of an option agreement to acquire 18.7 acres within the Rookery Bay CARL project from Gerald Fleisher.

COUNTY: Collier

LOCATION:  Section 10, Township 51 South, Range 26 East

CONSIDERATION:  $1,050,000

APPRAISED BY

REVIEW Dane Bowen APPROVED PURCHASE OPTION

NO. PARCEL ACRES (03/07/97) (03/28/97) VALUE PRICE DATE

717004 (14F) Fleisher 18.7 $1,122,000 $1,040,000 $1,122,000 $1,050,000 180 days

after BOT

approval

Board of Trustees

Agenda - October 21, 1997 Page Ten


Item 10, cont.

STAFF REMARKS: The Rookery Bay CARL project is ranked number 16 on the CARL Priority Project List approved by the Board of Trustees on February 11, 1997, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. The project contains 13,482 acres, of which 11,152.35 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 2,310.95 acres or 17 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 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.

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

Rookery Bay is an outstanding subtropical estuary in the fastest growing part of Florida. Its mangroves shelter important nesting colonies of water birds, and feed and protect many aquatic animals. These animals, in turn, are the foundation of commercial and recreational fisheries. The Rookery Bay CARL project will protect the bay's water quality and its native plants and animals and will provide recreational opportunities to the people of southwest Florida. As an addition to the Rookery Bay National Estuarine Research Reserve, the project will also further coastal ecosystem research and environmental education.

The property will be managed by the Division of Marine Resources as part of the Rookery Bay National Estuarine Research Reserve.

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

(See Attachment 10, Pages 1-34)

RECOMMEND APPROVAL


Item 11 Jean Jernigan/Shell Island Division of Recreation and Parks' Additions and Inholdings Project Option Agreement/Survey Waiver

REQUEST:  Consideration of (1) an option agreement to acquire 0.32 acre within the Shell Island Division of Recreation and Parks' Additions and Inholdings project from Jean Jernigan; and (2) a request for survey waiver.

COUNTY:  Bay

LOCATION:  Section 31, Township 04 South, Range 14 West

CONSIDERATION:  $16,000

APPRAISED BY

REVIEW Presley APPROVED PURCHASE OPTION

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

717005 Jernigan (FFF) 0.32 $17,000 $17,000 $16,000 180 days

after BOT

approval

Board of Trustees

Agenda - October 21, 1997 Page Eleven


Item 11, cont.

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

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.

A waiver of the requirement for survey of this parcel is being requested pursuant to section 18-1.005, F.A.C., because, in the opinion of the Bureau of Survey and Mapping, the parcel to be acquired meets all of the following conditions:

While this parcel is being recommended for a waiver of survey at this time, should 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. In the event a full survey is waived, a professional land surveyor will inspect the property 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 this property.

An environmental site evaluation and, if necessary, an environmental site assessment will be provided by purchaser prior to closing. The purchaser shall provide title insurance and the seller shall reimburse the purchaser's title insurance costs.

This property will be managed by the Division of Recreation and Parks as an addition to the St. Andrews State Recreational 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 11, Pages 1-21)

RECOMMEND APPROVAL


Item 12 Lewis J. Dorsch/Longleaf Pine Ecosystem (Ross Prairie Sandhills) CARL Project Option Agreement

REQUEST:  Consideration of an option agreement to acquire 5.1 acres within the Longleaf Pine Ecosystem (Ross Prairie Sandhills) CARL project from Lewis J. Dorsch.

Board of Trustees

Agenda - October 21, 1997 Page Twelve


Item 12, cont.

COUNTY:  Marion

LOCATION:  Section 13, Township 17 South, Range 20 East

CONSIDERATION:  $7,650

APPRAISED BY

REVIEW Schlemmer APPROVED PURCHASE OPTION

NO. PARCEL ACRES (10/23/95) VALUE PRICE DATE

717006 Dorsch 5.1 $7,650 $7,650 $7,650 180 days

after BOT

approval

STAFF REMARKS: The Longleaf Pine Ecosystem CARL project is ranked number 11 on the CARL Priority Project List approved by the Board of Trustees on February 11, 1997, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. The project contains 21,167 acres, of which 10,629 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 10,532.9 acres or 50 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 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.

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

Though they once covered much of north and central Florida, old-growth longleaf pine sandhills are now only distant memories, replaced by pine plantations, pastures, and housing developments. Nevertheless, fragments of good sandhills still remain. The Longleaf Pine Ecosystem project will conserve four of the largest and best of these fragments, in so doing helping to ensure the survival of several rare animals like the red-cockaded woodpecker as well as some plants, and giving the public an opportunity to see and enjoy the original, and increasingly rare, natural landscape of Florida's uplands.

The property will be managed as a state forest by the Department of Agriculture and Consumer Services, Division of Forestry.

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

(See Attachment 12, Pages 1-14)

RECOMMEND APPROVAL Board of Trustees

Agenda - October 21, 1997 Page Thirteen


Item 13 Emilio Lopez/Inaki Saizarbitoria and Frank Englert, III/Archie Carr Sea Turtle Refuge CARL Project Option Agreement

REQUEST:  Consideration of an option agreement to acquire 1.03 acres within the Archie Carr Sea Turtle Refuge CARL project from Emilio Lopez, Inaki Saizarbitoria and Frank Englert, III.

COUNTY:  Brevard

LOCATION:  Section 07, Township 30 South, Range 39 East

CONSIDERATION:  $210,000

APPRAISED BY

REVIEW Benson APPROVED PURCHASE OPTION

NO. PARCEL ACRES (07/19/96) VALUE PRICE DATE

717007 Lopez,et al 1.03 $230,000 $230,000 $210,000 180 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 11, 1997, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. The project contains 1,018 acres, of which 487.97 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 529.18 acres or 52 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 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.

A certified survey, environmental site evaluation and, if necessary, an environmental site assessment will be provided by the purchaser prior to closing. The purchaser will 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 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. For thousands of years, these 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.

The property will be managed by U. S. Fish and Wildlife Services as part of the Archie Carr National Wildlife 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 13, Pages 1-27)

RECOMMEND APPROVAL Board of Trustees

Agenda - October 21, 1997 Page Fourteen


Item 14 Florida Game and Fresh Water Fish Commission/Chassahowitzka Wildlife Management Area Option Agreement

REQUEST: Consideration of five option agreements to acquire a total of 16.73 acres within the Chassahowitzka Wildlife Management Area by the Florida Game and Fresh Water Fish Commission under the Preservation 2000 program from five separate owners.

COUNTY: Hernando

APPLICANT: Florida Game and Fresh Water Fish Commission

LOCATION: Sections 01, 13 and 25, Township 21 South, Range 17 East; and Section 27, Township 22 South, Range 17 East

CONSIDERATION: $134,980

APPRAISED BY

REVIEW SELLER/ PORTER APPROVED PURCHASE OPTION

NO. PARCEL ACRES (10/03/96) VALUE PRICE DATE

717008 Roumanis/7 1.48 $62,500 $ 62,500 $ 60,000 (1)

717009 Scofield/8 5.00 8,000 8,000 7,600 (1)

717010 Royal Palm Beach

Colony/15 9.10 22,800 22,800 19,380 (2)

717011 Holland/17 0.69 36,000 36,000 27,000 (1)

717012 Burich/19 0.46 25,000 25,000 21,000 (1)

16.73 $154,300 $134,980

(1) 200 days after BOT approval

(2) 90 days after BOT approval

STAFF REMARKS: These acquisitions were negotiated by the Florida Game and Fresh Water Fish Commission (GFC) under the P2000 program. These parcels are within the Chassahowitzka Wildlife Management Area which is ranked number 14 on the current GFC Acquisition List.

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

Certified surveys and environmental site assessments for each parcel will be provided by the GFC prior to closing.

The acquisition of these parcels removes more private inholdings which enhances the management of the Chassahowitzka Wildlife Management Area, as well as provides additional access off of U. S. Highway 19.

These parcels will be managed by the GFC as an addition to the Chassahowitzka Wildlife Management Area.

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 14, Pages 1-83)

RECOMMEND APPROVAL

Board of Trustees

Agenda - October 21, 1997 Page Fifteen


Item 15 Metro Machine Corporation Status

REQUEST: Consideration of the status of Metro Machine Corporation's conceptual approval granted by the Board of Trustees on September 10, 1996 of a sovereignty submerged lands lease for a proposed commercial dry dock facility to service U. S. Navy ships and to recommend rescinding the conceptual approval.

COUNTY: Nassau

APPLICANT: Metro Machine Corporation

LOCATION: Section 14, Township 03 North, Range 28 East, in the Amelia River, near the city of Fernandina Beach, within the local jurisdiction of Nassau County.

Aquatic Preserve: Fort Clinch State Park, Resource Protection Area 1

Outstanding Florida Waters: Yes, Class III Waters

STAFF REMARKS: Due to a request from the Board of Trustees, the Department of Environmental Protection (DEP) is presenting this item to the Board of Trustees for reevaluation of the conceptual approval of the sovereignty submerged lands lease.

On May 31, 1996 the applicant submitted an application for a sovereignty submerged lands lease and environmental resource permit in anticipation of a U.S. Navy Request for Proposals (RFP) to service Mayport based navy ships. Due to the proposed facility's location in the Fort Clinch State Park Aquatic Preserve the applicant sought conceptual approval of the sovereignty submerged lands lease from the Board of Trustees. The applicant's representative stated that conceptual approval was necessary to bid on the RFP. Following conceptual approval of the sovereignty submerged lands lease by the Board of Trustees on September 10, 1996, the applicant began the process to meet the requirements of the Navy's RFP. On July 24, 1997 the U. S. Navy withdrew its RFP. At this time it is not known whether the U. S. Navy will reissue the RFP. The applicant has stated that its sole business is servicing Navy ships. Without the Navy's RFP the conceptual approval is of no practical significance.

The proposed facility is to service U. S. Navy ships home-ported at Mayport Naval Station. The proposed facility will provide services such as hull cleaning and painting. After receiving conceptual approval from the Board of Trustees, the applicant requested that the DEP process its application for a lease and an individual environmental resource permit. During the process the project has been modified to reduce the dredging quantities. As of October 7, 1997 the applicant had not supplied all of the information requested by DEP. The information not supplied consists of detailed mitigation plans for the creation of an oyster bed and salt marsh, groundwater analysis, and the design of the stormwater treatment system. Upon receipt of a satisfactory response for all of the requested information, the application will be deemed complete and DEP will have 90 days to formulate its intended agency action for the environmental resource portion of the project. As part of the intended agency action, DEP is required to prepare and present an item for a sovereignty submerged lands lease for consideration by the Board of Trustees. Unless the applicant voluntarily withdraws its application, this project will be presented again to the Board of Trustees for a final decision on the sovereignty submerged lands portion of the project. In addition to the information still pending, the applicant's proposal to meet the "clearly in the public interest" criteria is less than originally proposed.

The applicant also applied to the DEP Air Section for an air pollution source construction permit for the proposed facility. The applicant supplied all of the necessary information and has demonstrated that the facility will comply with all pertinent rules and regulations governing an air pollution source. The DEP Air Section sent an Intent to Issue the air permit to the Board of Trustees

Agenda - October 21, 1997 Page Sixteen



Item 15, cont.

applicant on September 26, 1997. The applicant states in the air application that the Navy's RFP includes painting of the ship's superstructure (topside work). It is further stated in this application that all coating work required by the RFP will be connected to the CAPEŽ system.

The DEP recommended conceptual approval based upon the needs of the U.S. Navy. The conceptual approval provided the applicant an opportunity to pursue the necessary permits to meet the needs of the Navy. By withdrawing the RFP, the basis for conceptual approval by the Board of Trustees has been eliminated.

(See Attachment 15, Pages 1-6)

RECOMMEND RESCIND CONCEPTUAL APPROVAL


Item 16 Yachting Promotions, Inc., Special Event Lease

REQUEST: Consideration of a request for a one-month prorated lease for five consecutive years, containing approximately 479,967 square feet for a commercial temporary docking facility associated with an international boat show.

COUNTY: Broward

Lease No. 060027905

Application No. 06-0127045-001

APPLICANT: Yachting Promotions, Inc.

LOCATION: Section 12, Township 50 South, Range 42 East, in New River Sound, Class III Waters, within the local jurisdiction of the city of Fort Lauderdale.

Aquatic Preserve: No

Outstanding Florida Waters: No

CONSIDERATION FOR STAFF'S RECOMMENDATION: Approximately $105,111, representing a negotiated, one-time event fee computed at 20 percent of the applicant's total estimated gross revenues over sovereignty submerged land, and including the initial 25 percent surcharge payment. This fee shall be revised upon receipt of an acceptable survey and/or sketch describing the square footage of the proposed lease area. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable.

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 "Consolidated Notice of Intent to Issue", which is attached. 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 chapter 253, 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."

Board of Trustees

Agenda - October 21, 1997 Page Seventeen


Item 16, cont.

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

The applicant is proposing to construct a commercial temporary docking facility within three contiguous locations in the vicinity of the city of Fort Lauderdale's yachting center north of Port Everglades to be used in conjunction with the Fort Lauderdale International Boat Show as a centralized sales center for public display of vessels by various brokers and dealers. There was a previous regulatory permit for similar boat shows issued on April 6, 1992, which expired on April 6, 1997. It appeared, at that time, as if all proposed activities were contained within the boundaries of TIITF deed 18397-A; however, this boat show over time has expanded outside of the deeded area. The applicant has requested at the maximum a 30-day lease in order to construct the facilities during the first week of the proposed lease term, run the display/sales operation for five days and remove all structures the following week. The applicant has requested a one-month prorated lease for a five-year consecutive term consistent with past Board of Trustees' approval on January 26, 1993 of a similar event. That request was predicated on (1) preexisting agreements with the city of Fort Lauderdale and the U. S. Army Corps of Engineers (COE), that a five-year permit and authorization would be received from the DEP; and (2) the desire to minimize inconvenience to normal users of the waterbody.

Because this authorization is requested by a non-riparian upland property owner and is for a temporary activity, the DEP staff believe that the appropriate form of authorization is not a standard five-year sovereignty submerged lands lease but rather a 30-day special event lease that the Board of Trustees may authorize pursuant to section 18-21.005(1), F.A.C. The vessel owners, brokers or dealers will pay the applicant a rental fee for mooring space within the proposed lease area. There will be a total of approximately 901 boats participating in the event. This has been addressed as a special lease condition. Approximately 117 of these vessels are to be moored over sovereignty submerged lands and range in size to greater than 126 feet in length; the remainder are to be moored over city or other deeded submerged lands. Demonstration of vessel operations will not be allowed since the vessels will be secured to the docks for the term of the sales display. This has been addressed as a specific condition of the regulatory permit.

The waterward extension of the proposed structures will extend approximately 58 percent of the width of the waterbody with the fartherest structure extending 62.5 feet from the centerline of the primary navigation channel. However, since the proposed project is temporary, the COE will issue a permit for the temporary docking facilities once the U. S. Coast Guard permits the temporary relocation of the Atlantic Intracoastal Waterway channel during the boat show. The applicant has also represented that the Florida Marine Patrol will be present to enforce a no-wake area and assist in all aspects of marine authority.

Staff is of the opinion that the proposed project will have minimal impacts in light of the applicant's agreement to: (1) remove all debris, detritus and oil residue from the waterbody before, during and after the boat show; (2) conduct water quality monitoring prior to, during and after the show; (3) prohibit any liveaboards on or any overboard discharge of sewage from those vessels using the facility; and (4) educate the general public on environmental issues such

Board of Trustees

Agenda - October 21, 1997 Page Eighteen


Item 16, cont.

as the importance of seagrasses, the use of marked channels to avoid impacts to shallow submerged land resources and promote safe boating. In addition, the applicant and the Marine Industries Association maintain this project to be in the public interest, as the show will result in a $250 million increase in the economic impact to the city and business community as well as benefit the marine industry at large which reported last year's sales of yachts in excess of $900 million.

According to the Division of Marine Resources, the proposed project is not anticipated to have a significant impact on the endangered manatee provided that the applicant: (1) complies with the standard manatee construction conditions; and (2) installs and maintains informational displays. Items (1) and (2) are conditions in the regulatory permit.

Although the applicant operated a boat show on sovereignty submerged lands in 1996, without having obtained a lease from the Board of Trustees, DEP staff are not recommending assessment of lease fees in arrears or an administrative fine because of the prior action pursuant to the five-year regulatory permit and staff's understanding that the prior activities were within privately-owned submerged lands. However, because of the temporary nature of the activity and the subsequent expansion of the commercial, revenue generating activity, DEP staff recommends that consideration be assessed at 20 percent of the gross boat show revenues generated on sovereignty submerged land.

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 Fort Lauderdale.

(See Attachment 16, Pages 1-39)

RECOMMEND (1) DENIAL OF THE APPLICANT'S REQUEST; AND (2) APPROVAL OF A NON-RENEWABLE 30-DAY SOVEREIGNTY SUBMERGED LAND SPECIAL EVENT LEASE, SUBJECT TO THE SPECIAL APPROVAL CONDITIONS, THE SPECIAL LEASE CONDITIONS, AND PAYMENT OF APPROXIMATELY $105,111.

AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

ST. JOHNS RIVER WATER MANAGEMENT DISTRICT

OCTOBER 21, 1997



Item 1 Ecobank/North Dike/South Dike at East Central Florida Mitigation Bank Status Report

REQUEST: (1) Consideration of the status of the North Dike at East Central Florida Mitigation Bank, and the South Dike at East Central Florida Mitigation Bank, on sovereign submerged lands; and (2) the exclusion of the North Dike at East Central Florida Mitigation Bank and South Dike at East Central Florida Mitigation Bank from the moratorium concerning the use of Board of Trustees' lands for mitigation banking approved by the Board of Trustees on February 25, 1997.

APPLICANTS: Ecobank (North Dike at East Central Florida Mitigation Bank)

Ecobank (South Dike at East Central Florida Mitigation Bank)

COUNTIES: Ecobank (North Dike at East Central Florida Mitigation Bank ) Seminole County, Application No. 4-117-0450A-ERP

Ecobank (South Dike at East Central Florida Mitigation Bank ) Seminole County, Application No. 4-117-0450A-ERP

LOCATIONS: Ecobank (North Dike at East Central Florida Mitigation Bank)

Sections 21, 27 and 28, Township 21 South, Range 33 East

Along the St. Johns River near Puzzle Lake

Aquatic Preserve: No; OFW: No

Ecobank (South Dike at East Central Florida Mitigation Bank)

Sections 27 and 34 Township 21 South, Range 33 East

Along the St. Johns River near Puzzle Lake

Aquatic Preserve: No; OFW: No

STAFF REMARKS: On February 25, 1997, the Board of Trustees established a moratorium on the use of sovereign submerged lands for mitigation banking purposes. At that meeting, the BOARD OF TRUSTEES was told that there were only two mitigation banking projects pending that involved the use of sovereign submerged lands. At a subsequent meeting the BOARD OF TRUSTEES excluded the two existing projects that it knew about from the moratorium. However, in addition to those two projects, there were two applications for mitigation bank projects pending at the St. Johns River Water Management District (SJRWMD) that may involve sovereign submerged lands. In addition, since the implementation of the moratorium, SJRWMD has received a new application for a mitigation bank that likely involves sovereign submerged lands. This agenda item describes the one mitigation bank application that was pending with SJRWMD, at the time that the BOARD OF TRUSTEES established the moratorium, and the new application and makes recommendations as to whether to exclude these projects from the moratorium.

Project description and status of the two mitigation bank proposals follows:

Status of the application by Ecobank for the North Dike at East Central Florida Mitigation Bank. On September 23, 1996, the SJRWMD received a permit application to construct and operate a 346-acre mitigation bank which involves the restoration of St. Johns River floodplain marsh from the existing agriculturally-altered land. Figure 1 shows the location of the project site. Dikes were constructed on the site in the early 1970's and the Board of Trustees

St. Johns River Water Management District

Agenda - October 21, 1997 Page Two


Item 1, cont.

interior was ditched, bedded, and drained with a large pump to facilitate the growth of pasture grasses for cattle. The use of the site as cattle pasture has continued through the present. Figure 2 is an aerial photo of the project site, showing the diked farmlands and the adjacent St.

Johns River. The permit application is now complete and was approved by the SJRWMD Governing Board at their meeting on May 13, 1997.

At its meeting of August 13, 1997, the SJRWMD Governing Board reconsidered and amended the action taken at the May 13, 1997 meeting. This project has been approved to receive 338 mitigation credits. Of these, 203 credits are for restoration of lands which may be considered sovereign and all but 12 of the credits are largely attributable to the removal of the dike on sovereign land which allows for reflooding of both the sovereign lands and uplands. In accordance with section 373.427, F.S., this action will not be final until such time as the Board of Trustees takes action on the authorization to use state lands.

An Ordinary High Water Line (OHWL) survey has not yet been done for this site, but correspondence from the Department of Environmental Protection's Bureau of Survey and Mapping indicates that the site may include sovereign submerged lands. This correspondence sets forth a safe upland line which indicates that approximately half of the subject project is not sovereign lands, while the other half of the property may involve sovereign lands. Therefore, it is likely that the hydrologic restoration due to removal of the dikes involves both sovereign submerged lands and privately owned lands. In this case, there is no feasible way to eliminate the use of the sovereign submerged lands, so the effect of the moratorium would be to delay the project until the moratorium expires.

The restoration of the site would involve removing part or all of the eastern dike to subject the site to the river's hydrologic influence, restoring the topography, and breaching the western dike to allow shunted tributaries (e.g. Turkey Creek) to flow unimpeded across the site. This will result in the site, which is currently pasture, being restored to a floodplain wetland with all of the functions of such a wetland, including water storage, water quality enhancement, and fish and wildlife habitat and food sources. These lands are located within the 10-year floodplain of the St. Johns River, which the SJRWMD has considered a priority for acquisition and restoration. The project abuts upon the Seminole Ranch property owned by SJRWMD and management of these lands could be coordinated with management of the Seminole Ranch lands.

There are significant unresolved issues associated with this application that only the Board of Trustees can address. Originally the applicant proposed to drop their claim to lands that are considered sovereign and to donate upland areas within the bank to the state as compensation for the use of sovereign lands. SJRWMD staff determined that there was very little monetary value associated with this offer of compensation and suggested that it would be more appropriate to follow the example of the Little Pine Island Mitigation Bank, where the Board of Trustees required compensation at a rate of seven percent of gross revenues from the sale of mitigation credits. Also SJRWMD staff suggested that the applicant relinquish any claims it may have to the lands to the east of the dike, including the bottom of the St. Johns River, which are considered to be sovereign. The applicant objected to these proposed compensation suggestions. The SJRWMD Governing Board was not comfortable with these staff suggestions, due to the fact that the Board of Trustees has not yet established a policy regarding compensation for the use of sovereign lands. Therefore, the SJRWMD recommendation to the Board of Trustees to authorize the use of sovereign submerged lands is silent on the question of compensation, leaving it up to the Board of Trustees to decide what compensation will be required.

Board of Trustees

St. Johns River Water Management District

Agenda - October 21, 1997 Page Three


Item 1, cont.

This application was pending at the time that the moratorium was approved by the Board of Trustees. Although there are some policy issues that the Board of Trustees still needs to address on this application, as described above, staff believes that it would not be in the public interest to include this proposed mitigation bank in the moratorium, because delaying the mitigation bank application may result in the loss of natural resource values.

Status of the application by Ecobank for the South Dike at East Central Florida Mitigation Bank. In July, 1997, the SJRWMD received a permit application to construct and operate a 442-acre mitigation bank which involves the restoration of St. Johns River floodplain marsh from the existing agriculturally-altered land. Figure 1 shows the location of the project site. Dikes were constructed on the site in the early 1970's and the interior was ditched, bedded, and drained with a large pump to facilitate the growth of pasture grasses for cattle. The use of the site as cattle pasture has continued through the present. Figure 2 is an aerial photo of the project site, showing the diked farmlands and the adjacent St. Johns River. The permit application is now complete and was approved by the SJRWMD Governing Board at their meeting on August 13, 1997. This project has been approved to receive 431.1 mitigation credits. Of these, 243.2 credits are for restoration of lands which may be considered sovereign and all but 25 of the credits are largely attributable to the removal of the eastern dike (which is on sovereign land) and reflooding of both the sovereign lands and uplands. However, the SJRWMD Governing Board's approval of the mitigation bank permit was conditioned upon the Board of Trustees granting an exception to the moratorium and approving the use of the sovereign submerged lands. In accordance with section 373.427, F.S., this action will not be final until such time as the Board of Trustees takes action on the authorization to use state lands.

An Ordinary High Water Line (OHWL) survey has not yet been done for this site, but correspondence from the Department of Environmental Protection's Bureau of Survey and Mapping indicates that the site may include sovereign submerged lands. This correspondence sets forth a safe upland line which indicates that approximately half of the subject project is not sovereign lands, while the other half of the property may involve sovereign lands. Therefore, it is likely that the hydrologic restoration due to removal of the dikes involves both sovereign submerged lands and privately owned lands. In this case, there is no feasible way to eliminate the use of the sovereign submerged lands, so the effect of the moratorium would be to delay the project until the moratorium expires.

The restoration of the site would involve removing part or all of the eastern dike to subject the site to the river's hydrologic influence, restoring the topography, and breaching the western dike to allow shunted tributaries to flow unimpeded across the site. This will result in the site, which is currently pasture, being restored to a floodplain wetland with all of the functions of such a wetland, including water storage, water quality enhancement, and fish and wildlife habitat and food sources. These lands are located within the 10-year floodplain of the St. Johns River, which the SJRWMD has considered a priority for acquisition and restoration. The project abuts upon the Seminole Ranch property owned by SJRWMD and management of these lands could be coordinated with management of the Seminole Ranch lands.

There are significant unresolved issues associated with this application that only the Board of Trustees can address. Originally the applicant proposed to drop their claim to lands that are considered sovereign and to donate upland areas within the bank to the state as compensation for the use of sovereign lands. SJRWMD staff determined that there was very little monetary value associated with this offer of compensation and suggested that it would be more Board of Trustees

St. Johns River Water Management District

Agenda - October 21, 1997 Page Four


Item 1, cont.

appropriate to follow the example of the Little Pine Island Mitigation Bank, where the Board of Trustees required compensation at a rate of seven percent of gross revenues from the sale of

mitigation credits. Also SJRWMD staff suggested that the applicant relinquish any claims it may have to the lands to the east of the dike, including the bottom of the St. Johns River, which are considered to be sovereign. The applicant objected to these proposed compensation suggestions. The SJRWMD Governing Board was not comfortable with these staff suggestions, due to the fact that the Board of Trustees has not yet established a policy regarding compensation for the use of sovereign lands. Therefore, the SJRWMD recommendation to the Board of Trustees to authorize the use of sovereign submerged lands is silent on the question of compensation, leaving it up to the Board of Trustees to decide what compensation will be required.

Although this application was not pending at the time that the Board of Trustees established the moratorium and there are unresolved issues as described above, staff believes that it would not be in the public interest to include this proposed mitigation bank in the moratorium, because delaying the mitigation bank application may result in the loss of natural resource values.

Recommended action for each proposal:

The Board of Trustees is statutorily charged with the duty to manage and administer state lands and has discretion to approve or deny applications for any proposed activity on state lands. The laws of Florida provide that third parties have no right to conduct activities on state-owned lands. All of the mitigation bank projects described above are for-profit ventures that will result in the restoration or enhancement of environmental values of state-owned lands.

The following recommendations only address whether the moratorium approved by the Board of Trustees on February 25, 1997, should apply to the projects described above. Approval of the staff recommendation should in no way be considered to indicate conceptual or other approval for the specific mitigation banking projects. Specific recommendations on each proposal follow.

Ecobank (North Dike at East Central Florida Mitigation Bank - North)

Staff recommends that this project be excluded from the moratorium.

Ecobank (South Dike at East Central Florida Mitigation Bank - North)

Staff recommends that this project be excluded from the moratorium.


The Department of Environmental Protection (DEP) does not concur with the recommended action by the SJRWMD's Board.

DEP staff met with representatives of Ecobank on August 5, 1997, to discuss the proposed use of sovereign submerged lands at the project site. The applicant has had free use of the submerged lands since completion of the dikes which separated them from the St. Johns River floodplain in 1972. At that meeting, the DEP staff indicated to the applicant in order to use this land for profit under a mitigation bank one of two things must occur: (1) the land below the safe upland line must be deeded in a quitclaim deed to the Board of Trustees and a fee paid for its use; or (2) the applicant could move the boundary of the mitigation bank uphill to the safe Board of Trustees

St. Johns River Water Management District

Agenda - October 21, 1997 Page Five



Item1, cont.

upland line, thereby excising potential Board of Trustees lands and, then, request permission from the Board of Trustees to remove the dike on submerged lands.

DEP staff believes that the items discussed with and presented to the applicant as potentially workable solutions to this problem must be presented to the Board of Trustees for consideration. Because they were not, DEP staff recommends denial of the request to exclude these projects from the moratorium.

RECOMMEND WITHDRAWAL


Item 2 Ecobank/North Dike at East Central Florida Mitigation Bank Use Agreement/Recommended Consolidated Intent

REQUEST: Consideration and approval of a use agreement authorizing the use of sovereign submerged lands for the North Dike at East Central Florida Mitigation Bank.

COUNTY: Seminole County, Application No. 4-117-1450-ERP

APPLICANT: Ecobank

LOCATION: Sections 21, 27 and 28, Township 21 South, Range 33 East

Along the St. Johns River near Puzzle Lake

Aquatic Preserve: No; OFW: No

GENERAL PROJECT DESCRIPTION:

Ecobank seeks authorization to use a portion of sovereign submerged lands for the purposes of constructing and operating a mitigation bank. In conjunction with an Environmental Resource Permit, the authorization to use sovereign submerged lands will allow Ecobank to construct and operate a mitigation bank that includes the removal of a dike and pump system in order to accommodate floodplain restoration.

STAFF REMARKS:

Background

In accordance with section 253.002, F.S., and the rules of the Board of Trustees, the District is serving as the staff to the Board of Trustees for this application to use sovereign submerged lands for the purposes of constructing and operating a mitigation bank. Under the delegation from the Board of Trustees to the District, all applications for mitigation banks on sovereign submerged lands must be presented to the Board of Trustees for its approval.

The applicant is seeking approval for the establishment and operation of a 364.41-acre mitigation bank. This project involves the removal and abandonment of the existing agricultural dewatering/dike system. The Department of Environmental Protection (DEP) has established a safe upland line on this parcel based upon long term stage data for the St. Johns River. The St. Johns River is located immediately to the east of this project site. The applicant has not conducted an ordinary high water line survey on the property. The applicant contends that there are valid federal patent deeds and railroad deeds that conveyed the mitigation bank property, as well as the St. Johns River marshes located to the east of the

Board of Trustees

St. Johns River Water Management District

Agenda - October 21, 1997 Page Six



Item 2, cont.

diked area, into private ownership. Rather than formally contest the extent of sovereign lands on the mitigation bank site, the applicant has decided instead to request authorization from the Board of Trustees to use the sovereign submerged lands for the mitigation bank.

Project Site Description

The proposed mitigation bank is located along the western bank of the St. Johns River in southeastern Seminole County, near Puzzle Lake. The site is completely enclosed by a substantial dike system which was completed around 1972. The dikes are effective, maintained, and have been constructed to an elevation varying between 12 and 13 feet NGVD, which protects the site from the St. Johns River 100-year flood stage. The average width of the dikes from toe of slope to toe of slope is 41 feet. The topography in the interior portion of the site slopes from west to east with the elevations ranging from approximately 7 to 9 feet in the west and 4 to 5 feet in the east. Beds and furrows have been constructed to facilitate the drainage eastward to a pump which dewaters seepage water and rainwater from the site during the wet season. In the dry season, a flapgate culvert is opened and drainage is via gravity flow only.

In addition to excluding the river flood stages, the dike system has served to divert the upslope runoff from west of the site, especially in a small tributary named Turkey Creek which historically flowed across the site. Turkey Creek now is diverted around the North Dike project site by the existing borrow ditch located adjacent to the west side of the western dike. The drained, non-flowing, remnant channel of Turkey Creek remains within the interior of the dike system.

The vegetative communities consist primarily of improved pasture (308.27 acres) which is dominated by pasture grasses (primarily Bahia), and lesser amounts of coinleaf, dog fennel, sand cordgrass, camphorweed, fox-tail grass, and rushes. There are also several small cabbage palm hammocks (totaling 10 acres) located on the higher elevations in the western portion of the site. These are dominated by cabbage palms and contain lesser amounts of red cedar, dog fennel, and frostweed. The existing dikes and borrow canals/ditches within the 346-acre diked area (which is bounded by the outer toe of the dike slopes) total 27.73 acres. There are also 18.41 acres of borrow areas lying eastward of the outer toe of slope of the eastern dike.

Proposed Restoration Activities

1. Exclude cattle which are currently grazing on the property. Record a special warranty deed in favor of the Board of Trustees for the areas within the project located waterward of the safe upland line. Record a conservation easement to the DEP and SJRWMD over the areas within the project located landward of the safe upland line.

2. Excavate the entire eastern dike (7.15 acres) and fill the adjacent borrow canals/ditches (6.34 -acre interior and 18.41-acre exterior) to match the surrounding marsh grade. Excavate the interior maintenance road and fill the adjacent ditches (totaling 11.9 acres) to match the surrounding grade. These activities will result in 43.80 acres of regraded marsh and 285.96 acres of hydrologically-restored marsh.

3. Excavate a 100-foot-wide breach in the western dike (totaling 0.1 acre of regraded channel) and install two earthen plugs in the borrow canal to restore the diverted Turkey Creek flows back into the remnant on-site channel.

Board of Trustees

St. Johns River Water Management District

Agenda - October 21, 1997 Page Seven


Item 2, cont.

4. Implement an aggressive exotic and nuisance species control plan as the vegetation recovers. Replant with appropriate herbaceous species if natural recruitment is ineffective or inadequate.

5. Implement perpetual management and maintenance including exotic and nuisance species control and ecological burning.

Staff Analysis

Pursuant to rule 18-21.004, F.A.C., any activity on sovereign submerged lands must be not contrary to the public interest. The activities proposed by the applicant will restore a natural ecosystem in an area that has been altered for agricultural land uses. This will result in significant environmental benefits in the region. In addition, the restoration will restore floodplain water storage functions and enhance water quality in the St. Johns River. However, breaching of the dikes and conveying the special warranty deed will not necessarily restore public access to these lands, because the applicant maintains their claim of ownership of the river and marsh areas to the east of the site, which have been used for cattle grazing by the riparian land owners, and has withdrawn their offer to drop this claim.

Although the applicant could dispute the state's ownership of the lands within the mitigation bank, they have offered to relinquish any claim to these lands if they can secure authorization to construct the mitigation bank. The applicant will continue to dispute the state's claim to the lands to the east of the project site, including the bottom of the St. Johns River and its contiguous marshes. Mitigation banking provides an incentive for the private sector to restore lands which have been historically degraded by man's activities. Staff believes that this project is a good site for a mitigation bank. Staff believes that it would be in the public interest for the Board of Trustees to authorize this project in order to achieve the significant environmental and water resources benefits described above.

The applicant and staff have not agreed to a compensation package for the use of sovereign submerged lands for this profit making venture. Staff recognizes that the Board of Trustees have not yet established a policy regarding the location of mitigation banks on state-owned lands and the amount of compensation to be charged for operating a mitigation bank on sovereign submerged lands. Staff is aware that the only previous final Board of Trustees' authorization of a private for-profit mitigation bank by a private entity on sovereign submerged lands was the Little Pine Island Mitigation Bank located in Lee County, Florida, where the Board of Trustees required seven percent of the gross revenues from the bank as compensation for the use of sovereign lands. Staff feels that the Board of Trustees is the best entity to establish the amount and form of compensation to be charged for the location of this for-profit mitigation bank on sovereign submerged lands.

Recommendation:

The authorization to use sovereign submerged lands in the case of the Little Pine Island Mitigation Bank was memorialized in a use agreement. Based upon that example, staff recommends that the Board of Trustees approve a use agreement with Ecosystems Land Mitigation Bank II Corporation to implement a mitigation bank on sovereign submerged lands, at an amount and form of compensation the Board of Trustees determines appropriate, with terms and conditions as otherwise described in Appendix A. The use agreement would cover all lands within the mitigation bank site lying waterward of the safe upland line as set forth in the letter from Rod Maddox, DEP, attached hereto as Exhibit 2. Board of Trustees

St. Johns River Water Management District

Agenda - October 21, 1997 Page Eight



Item 2, cont.

Other conditions:

1. Ecosystems Land Mitigation Bank II Corporation must have a conservation easement recorded covering all portions of the property located landward of the safe upland line as set

forth in the Rod Maddox letter attached as Exhibit 2.

2. Prior to undertaking any construction or selling any mitigation credits, Ecosystems Land Mitigation Bank II Corporation must have a special warranty deed executed and recorded conveying to the Board of Trustees all lands within the project area located waterward of the safe upland line as set forth in the Rod Maddox letter attached hereto as Exhibit 2. This special warranty deed must warrant fee simple ownership of the subject lands, free from any liens or encumbrances, except claims of the State of Florida to sovereign submerged lands.

RECOMMEND WITHDRAWAL


Item 3 Ecobank/South Dike at East Central Florida Mitigation Bank Use Agreement/ Recommended Consolidated Intent

REQUEST: Consideration and approval of a use agreement authorizing the use of sovereign submerged lands for the South Dike at East Central Florida Mitigation Bank.

COUNTY: Seminole County, Application No. 4-117-1450AM-ERP

APPLICANT: Ecobank

LOCATION: Sections 27 and 34, Township 21 South, Range 33 East

Along the St. Johns River near Puzzle Lake

Aquatic Preserve: No; OFW: No

GENERAL PROJECT DESCRIPTION:

Ecobank seeks authorization to use a portion of sovereign submerged lands for the purposes of constructing and operating a mitigation bank. In conjunction with an Environmental Resource Permit, the authorization to use sovereign submerged lands will allow Ecobank to construct and operate a mitigation bank that includes the removal of a dike and pump system in order to accommodate floodplain restoration.

STAFF REMARKS:

Background

In accordance with section 253.002, F.S., and the rules of the Board of Trustees, the District is serving as the staff to the Board of Trustees for this application to use sovereign submerged lands for the purposes of constructing and operating a mitigation bank. Under the delegation from the Board of Trustees' to the District, all applications for mitigation banks on sovereign submerged lands must be presented to the Board of Trustees for their approval.

The applicant is seeking approval for the establishment and operation of a 442.35-acre mitigation bank. This project involves the removal and abandonment of the existing agricultural dewatering/dike system. The Department of Environmental Protection (DEP) has established a safe upland line on this parcel based upon long term stage data for the St. Johns River. The St. Johns River is located immediately to the east of this project site. The Board of Trustees

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Agenda - October 21, 1997 Page Nine



Item 3, cont.

applicant has not conducted an ordinary high water line survey on the property. The applicant contends that there are valid federal patent deeds and railroad deeds that conveyed the mitigation bank property, as well as a portion of the St. Johns River marshes which are to the

east of the diked lands, into private ownership. However, rather than formally contest the extent of sovereign lands, the applicant has decided instead to request authorization from the Board of Trustees to use the sovereign submerged lands for the mitigation bank.

Project Site Description

The proposed mitigation bank is located along the western bank of the St. Johns River in southeastern Seminole County, near Puzzle Lake. The site is completely enclosed by a substantial dike system which was completed around 1972. The dikes are effective, maintained, and have been constructed to an elevation of about 10 feet NGVD. The average width of the dikes from toe of slope to toe of slope is 41 feet. The topography in the interior portion of the site slopes from west to east with the elevations ranging from approximately 7 to 9 feet in the west and 4 to 5 feet in the east. A network of drainage ditches have been constructed to facilitate the drainage eastward to a pump which dewaters seepage water and rainwater from the site during the wet season. In the dry season, a flapgate culvert is opened and drainage is via gravity flow only.

In addition to excluding the river flood stages, the dike system has served to divert the upslope runoff from west of the site by blocking Buscombe Creek and two small, unnamed streams which historically flowed across the site. These three streams are now diverted around the South Dike project site by the existing borrow ditch located exterior to the dike.

The vegetative communities consist primarily of improved pasture (373.38 acres) which is dominated by pasture grasses, dog fennel, sand cordgrass, camphorweed, fox-tail grass, and rushes. There is a 3.23-acre remnant of a mixed forested wetland dominated by cypress and swamp tupelo. The existing dikes, canals/ditches, and elevated roads within the 430-acre diked area (which is bounded by the outer toe of the dike slopes) total 54.39 acres. There are also 11.95 acres of borrow areas lying eastward of the outer toe of slope of the eastern dike.

Proposed Restoration Activities

1. Exclude cattle which are currently grazing on the property. Record a special warranty deed in favor of the Board of Trustees for the areas within the project waterward of the safe upland line. Record a conservation easement to the DEP and SJRWMD over the areas within the project landward of the safe upland line.

2. Excavate the entire eastern dike (5.55 acres) and fill the adjacent borrow canals/ditches (6.18-acre interior and 11.95- acre exterior) to match the surrounding marsh grade. Excavate the interior maintenance road and fill the adjacent ditches (totaling 24.03 acres) to match the surrounding grade. These activities will result in 47.71 acres of regraded marsh, 302.38 acres of hydrologically-restored marsh, and 65 acres of hydrologically-restored mixed forested wetlands.

3. Excavate three 100-foot-wide breaches in the western and southern dikes and install two earthen plugs in each of the adjacent exterior ditches to restore the diverted stream flows back across the South Dike project area.

4. Implement an aggressive exotic and nuisance species control plan as the vegetation recovers. Replant with appropriate herbaceous species if natural recruitment is ineffective or inadequate.

Board of Trustees

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Agenda - October 21, 1997 Page Ten



Item 3, cont.

5. Implement perpetual management and maintenance including exotic and nuisance species control and ecological burning.

Staff Analysis

Pursuant to rule 18-21.004, F.A.C., any activity on sovereign submerged lands must be not contrary to the public interest. The activities proposed by the applicant will restore a natural ecosystem in an area that has been altered for agricultural land uses. This will result in significant environmental benefits in the region. In addition, the restoration will restore floodplain water storage functions and enhance water quality in the St. Johns River. However, breaching of the dikes and conveying the special warranty deed will not necessarily restore public access to these lands, because the applicant maintains their claim of ownership of the river and marsh areas to the east of the site, which have been used for cattle grazing by the riparian land owners, and has withdrawn their offer to drop this claim.

Although the applicant could dispute the state's ownership of the lands within the mitigation bank, they have offered to relinquish any claim to these lands if they can secure authorization to construct the mitigation bank. The applicant continues to dispute the state's claim to the lands to the east of the project site, including the bottom of the St. Johns River and its contiguous marshes.

Mitigation banking provides an incentive for the private sector to restore lands which have been historically degraded by man's activities. Staff believes that it would be in the public interest for the Board of Trustees to authorize this project in order to achieve the significant environmental and water resources benefits described above.

The applicant and staff have not agreed to a compensation package for the use of sovereign submerged lands for this profit-making venture. Staff recognizes that the Board of Trustees have not yet established a policy regarding the location of mitigation banks on state owned lands and the amount of compensation to be charged for operating a for-profit mitigation bank on sovereign submerged lands. Staff is aware that the only previous final Board of Trustees' authorization of a private for-profit mitigation bank on sovereign submerged lands was the Little Pine Island Mitigation Bank located in Lee County, Florida, where the Board of Trustees required seven percent of the gross revenues from the bank as compensation for the use of sovereign lands. Staff feels that the Board of Trustees is the best entity to establish the amount and form of compensation to be charged for the location of this for-profit mitigation bank on sovereign submerged lands.

Recommendtion:

The authorization to use sovereign submerged lands in the case of the Little Pine Island Mitigation Bank was memorialized in a use agreement. Based upon that example, staff recommends that the Board of Trustees approve a use agreement with Ecosystems Land Mitigation Bank II Corporation to implement a mitigation bank on sovereign submerged lands, at an amount and form of compensation the Board of Trustees determines appropriate, with terms and conditions as otherwise described in Appendix A. The use agreement would cover all lands within the mitigation bank lying waterward of the safe upland line as set forth in the letter from Rod Maddox, DEP, attached hereto as Exhibit 2. Board of Trustees

St. Johns River Water Management District

Agenda - October 21, 1997 Page Eleven



Item 3, cont.

Other Conditions:

1. Ecosystems Land Mitigation Bank II Corporation must have a conservation easement recorded covering all portions of the property located landward of the safe upland line as set forth in the Rod Maddox letter attached as Exhibit 2.

2. Prior to undertaking any construction or selling any mitigation credits, Ecosystems Land Mitigation Bank II Corporation must have a special warranty deed executed and recorded conveying to the Board of Trustees all lands within the project area located waterward of the safe upland line as set forth in the Rod Maddox letter attached hereto as Exhibit 2. This general warranty deed must warrant fee simple ownership of the subject lands, free of any liens or encumbrances, except claims of the State of Florida to sovereign submerged lands.

RECOMMEND WITHDRAWAL