Cabinet Affairs

AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

DECEMBER 4, 1997

Item 1 Minutes

Submittal of the minutes of the October 21, 1997 Cabinet meeting.

RECOMMEND ACCEPTANCE

Item 2 Carolyn R. Carter/David Lee Henderson/Belle Meade CARL Project Purchase Agreements/Survey Waiver

REQUEST:  Consideration of (1) two purchase agreements to acquire 79.45 acres within the Belle Meade CARL project from Carolyn R. Carter and David Lee Henderson; and (2) a request for survey waiver for the Carter parcel.

COUNTY:  Collier

LOCATION:  Sections 27 and 35, Township 50 South, Range 27 East

CONSIDERATION:  $148,635

APPRAISED BY

REVIEW Dane Catlett APPROVED PURCHASE CLOSING

NO. PARCEL ACRES (11/28/95) (03/26/97) VALUE PRICE DATE

720007 Carter/371 40.15 $72,270 $ 72,270 $ 72,000 6 months

720008 Henderson/459 39.30 $78,600 $ 78,600 $ 76,635 after BOT

79.45 $150,870 $148,635 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 11, 1997, and is eligible for purchase under the Division of State Lands' Land Acquisition Workplan.  This project contains 19,227 acres, of which 10,624.6 acres have been acquired or are under agreement to be acquired.  After the Board of Trustees approves these agreements, and other agreements in the Belle Meade project presented today, 7,132.25 acres or 37 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 of survey for the Carter 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 meets all of the following conditions:

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

While the Carter 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 the Board of Trustees

Agenda - December 4, 1997 Page Two

Item 2, cont.

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 the property.

A certified survey for the Henderson parcel, title insurance policies, environmental site evaluations and, if necessary, environmental site assessments for both parcels, will be provided by the 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, 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 2 Pages 1-16)

RECOMMEND APPROVAL

Item 3 Mohamad I. Abdelazim/James A. McTague/Belle Meade CARL Project Option Agreements

REQUEST:  Consideration of two option agreements to acquire 1,390.7 acres within the Belle Meade CARL project from Mohamad I. Abdelazim and James A. McTague.

COUNTY:  Collier

LOCATION:  Sections 03 and 10, Township 50 South, Range 27 East; and Section 23, Township 51 South, Range 27 East

CONSIDERATION:  $3,081,520

APPRAISED BY

REVIEW Catlett Dane APPROVED PURCHASE OPTION

NO. PARCEL ACRES (09/05/95) (09/22/95) VALUE PRICE DATE

720005 Abdelazim/63 1,268.8 $2,920,000 $2,537,600 $2,920,000 $2,886,520 120 days

after BOT

approval

(11/28/95)

720006 McTague/282 121.9 $ 219,420 $ 219,420 $ 195,000 6 months

1,390.7 $3,139,420 $3,081,520 after BOT

approval

Board of Trustees

Agenda - December 4, 1997

Page Three

Item 3, cont.

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 11, 1997, and is eligible for purchase under the Division of State Lands' Land Acquisition Workplan.  This project contains 19,227 acres, of which 10,624.6 acres have been acquired or are under agreement to be acquired.  After the Board of Trustees approves these agreements and other agreements in the Belle Meade project presented today, 7,132.25 acres or 37 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.

Certified surveys, title insurance policies, environmental site evaluations and, if necessary, environmental site assessments, will be provided by the purchaser prior to closing. The seller of the McTague parcel will reimburse purchaser's title insurance cost.

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, 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 3, Pages 1-40)

RECOMMEND APPROVAL

Item 4 Conway D. Kittredge, Trustee/Wekiva-Ocala Greenway CARL Project Option Agreement

REQUEST:  Consideration of an option agreement to acquire 646.31 acres within the Wekiva-Ocala Greenway CARL project from Conway D. Kittredge, Trustee.

COUNTY:  Lake

LOCATION:  Sections 05 through 07, and 18, Township 18 South, Range 29 East

CONSIDERATION:  $1,460,000

Board of Trustees

Agenda - December 4, 1997 Page Four

Item 4, cont

APPRAISED BY

REVIEW Hupp Arline APPROVED PURCHASE OPTION

NO. PARCEL ACRES (01/27/97) (01/09/97) VALUE PRICE DATE

720001 Royal 646.31 $1,487,000 $1,250,000 $1,487,000 $1,460,000 185 days after

Trails BOT approval

STAFF REMARKS: The Wekiva-Ocala Greenway CARL project is ranked number 7 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 67,269 acres, of which 27,556 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 39,066 acres or 58 percent of the project will remain to be acquired.

An improvement on the property consists of a small frame building (approximately 400 square feet). The Bureau of Appraisal has determined there is no contributory value associated with the improvement. The Department of Agriculture and Consumer Services, Division of Forestry (DOF), the managing agency, has indicated they are willing to manage the property with the improvement. DOF will ascertain the use of the improvement as part of its overall state forest management planning process.

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

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

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

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

(See Attachment 4, Pages 1-24)

RECOMMEND APPROVAL

Board of Trustees

Agenda - December 4, 1997 Page Five

Item 5 The Conservancy of Southwest Florida, Inc./Rookery Bay CARL Project Option Agreement/Survey Waiver

REQUEST:  Consideration of (1) an option agreement to acquire 1.73 acres within the Rookery Bay CARL project from The Conservancy of Southwest Florida, Inc.; and (2) a request for survey waiver.

COUNTY:  Collier

LOCATION:  Section 06, Township 52 South, Range 26 East; and Section 01, Township 52 South, Range 25 East

CONSIDERATION:  $1,298

APPRAISED BY

REVIEW Bowen APPROVED PURCHASE OPTION

NO. PARCEL ACRES (07/01/92) VALUE PRICE DATE

720010 Conservancy/141 1.73 $1,298 $1,298 $1,298 180 days

after BOT

approval

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 purchase under the Division of State Lands' Land Acquisition Workplan.  This project contains 13,482 acres, of which 11,190.1 acres have been acquired or are under agreement to be acquired.  After the Board of Trustees approves this agreement, 2,290.17 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 waiver of the requirement for a 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:

• the parcel is surrounded by state-owned lands or surrounded by land the state intends to acquire;
• the referenced parcel is located within a subdivision or in a section in which the controlling land corners have been recently surveyed by Southern Mapping Technology, 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 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.

A title insurance policy, 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.

Board of Trustees

Agenda - December 4, 1997 Page Six

Item 5, cont.

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.

This property will be managed by the Division of Marine Resources as part of the Rookery Bay National Esturarine 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 5, Pages 1-18)

RECOMMEND APPROVAL

Item 6 Rodney S. Schwartz/Diana J. Yeager/Eugene Schwartz/Helene Schwartz/Don Pedro Island Division of Recreation and Parks' Additions and Inholdings Project Option Agreement

REQUEST: Consideration of an option agreement to acquire 98.57 acres within the Don Pedro Island Division of Recreation and Parks' Additions and Inholdings project from Rodney S. Schwartz, Diana J. Yeager, Eugene Schwartz, and Helene Schwartz.

COUNTY: Charlotte

LOCATION: Section 34, Township 41 South, Range 20 East; and Section 03, Township 42 South, Range 20 East

CONSIDERATION: $2,250,000

APPRAISED BY

REVIEW Hettema Dane APPROVED PURCHASE OPTION

NO. PARCEL ACRES (02/12/97) (04/08/97) VALUE PRICE DATE

720002 1055-89 1.07 $ 75,000 $ 70,000 $ 75,000 180 days

1056-89 97.50 $2,340,000 $2,438,000 $2,438,000 after BOT

98.57 $2,513,000 $2,250,000 approval

STAFF REMARKS: The Don Pedro 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 certified survey, an 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.

The property will be managed by the Division of Recreation and Parks as an addition to the Don Pedro Island State Recreational Area.

Board of Trustees

Agenda - December 4, 1997 Page Seven

Item 6, cont.

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 1-41)

RECOMMEND APPROVAL

Item 7 Anne T. Harrison/Shell Island Division of Recreation and Parks' Additions and Inholdings Project Option Agreement/Survey Waiver

REQUEST:  Consideration of (1) an option agreement to acquire 0.13 acre within the Shell Island Division of Recreation and Parks' Additions and Inholdings project from Anne T. Harrison; and (2) a request for survey waiver.

COUNTY:  Bay

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

CONSIDERATION:  $12,000

APPRAISED BY

REVIEW Presley APPROVED PURCHASE OPTION

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

720003 Harrison (XX) 0.13 $13,000 $13,000 $12,000 180 days

after BOT

approval

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:

• the parcel is surrounded by State-owned land or surrounded by land the State intends to acquire;
• the referenced parcel is located within a platted subdivision and the plat 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 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

Board of Trustees

Agenda - December 4, 1997 Page Eight

Item 7, cont.

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.

A title insurance policy, an environmental site evaluation and, if necessary, an environmental site assessment will be provided by purchaser prior to closing. 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 7, Pages 1-21)

RECOMMEND APPROVAL

Item 8 Norma F. Ericson/Kylene S. Wing/Landis Holdings, Incorporated/Stetson University/Division of Forestry Purchase Agreement

REQUEST: Consideration of a purchase agreement to acquire 83.1 acres by the Department of Agriculture and Consumer Services, Division of Forestry, under the P-2000 program from Norma F. Ericson, Kylene S. Wing, Landis Holdings, Incorporated and Stetson University.

COUNTY: Citrus

APPLICANT: Department of Agriculture and Consumer Services, Division of Forestry

LOCATION: Section 13, Township 20 South, Range 19 East

CONSIDERATION: $210,000

APPRAISED BY

REVIEW PARCEL Brown APPROVED PURCHASE CLOSING

NO. NAME ACRES (07/07/92) VALUE PRICE DATE

720004 Ericson, et al 83.1 $210,000 $210,000 $210,000 120 days after

BOT approval

STAFF REMARKS: This acquisition was negotiated by the Department of Agriculture and Consumer Services, Division of Forestry (DOF), under its Preservation 2000 Additions and Inholdings 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 certified survey and an environmental site assessment of the property will be provided by the DOF prior to closing.

Board of Trustees

Agenda - December 4, 1997 Page Nine

Item 8, cont.

Once acquired, this property will be managed by the DOF as part of Withlacoochee State Forest. This parcel is adjacent to the Withlacoochee State Forest and will consolidate state forest boundaries in the area, provide access, and improve overall management of the forest. This property will be managed for natural resource conservation and outdoor recreation activities under a multiple use management regime.

This acquisition is consistent with section 187.201(23), F.S., the Agriculture section of the State Comprehensive Plan.

(See Attachment 8 Pages 1-35)

RECOMMEND APPROVAL

Item 9 Echelon International Corporation/BOT/BOR/FSU Purchase Agreement

REQUEST: Consideration of a purchase agreement to acquire two acres by the Board of Trustees for the benefit of the Florida Board of Regents and Florida State University from Echelon International Corporation.

COUNTY: Gadsden

APPLICANT: Florida State University

LOCATION: Section 15, Township 01 North, Range 02 West

CONSIDERATION: $300,000

APPRAISED BY

REVIEW GRIFFITH CARLTON APPROVED PURCHASE CLOSING

NO. PARCEL ACRES (08/12/97) (09/05/97) VALUE PRICE DATE

720009 Echelon 2.0 $569,000 $581,000 $581,000 $300,000 90 days

International after BOT

Corp/140 approval

STAFF REMARKS: This acquisition was negotiated by Florida State University (FSU). The 1997 Florida Legislature specifically appropriated $300,000 for the acquisition of this parcel.

The 10,406 square foot, two-story recording studio located on the property was completed in 1987 and is still considered "state of the art" and "world class". The original cost to construct the studio building is reported to have approached $1.2 million, excluding land value. FSU has leased the property from Echelon International Corporation (Echelon) for several years. The lease will be terminated at closing. Echelon has agreed to make some improvements to the studio. Under separate agreement with the FSU Foundation (Foundation), the Foundation will reimburse Echelon for those improvements which will solely benefit FSU. The purchase agreement acknowledges that Echelon intends to claim a noncash charitable contribution to the State of Florida on this acquisition.

Echelon has requested and FSU has agreed to seek the appropriate authorizations to name the studio building "The Jack B. Critchfield Hall".

The known encumbrances on the property are a Development of Regional Impact for Gadsden Station (DRI), which was approved by the Department of Community Affairs (DCA), Gadsden

Board of Trustees

Agenda - December 4, 1997 Page Ten

Item 9, cont.

County and the Apalachee Regional Planning Council (ARPC) in 1988, and an access and utility easement which services the subject property. The seller, at the request of the Department of Environmental Protection, Division of State Lands' staff, sought to have the subject property removed from the DRI. Both DCA and ARPC advised that because the property was developed it could not be removed from the DRI. FSU, the managing agency, has reviewed both of these encumbrances and has determined neither will impact the proposed management of the property. The contract fee appraisers and contract fee review appraiser took these known encumbrances into consideration when appraising the subject property. 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 certified survey will be provided by FSU. An environmental site assessment and a title insurance policy will be provided by the seller prior to closing with FSU reimbursing the seller's title insurance cost.

This parcel will be managed by FSU as a part of the existing campus through a lease to the Florida Board of Regents.

This acquisition is consistent with section 187.201(01), F.S., the Education section of the State Comprehensive Plan.

(See Attachment 9, Pages 1-27)

RECOMMEND APPROVAL

Item 10 City of Sarasota Lease Modification

REQUEST: Consideration of a request for the (1) ratification of a contract approved by the Board of Trustees in 1983 granting the applicant rights to operate a marina at a fee of three percent of gross receipts until July 31, 2012; (2) approval of a modification to a lease agreement between the applicant and Jack Graham, Inc.; and (3) modification, consistent with the contract, of a five-year sovereignty, submerged lands lease to contain a total of 617,385 square feet, more or less, to incorporate the registered grandfather structures, and to extend the term to July 31, 2027 (30 years).

COUNTY: Sarasota

Lease No. 581022443

APPLICANT: City of Sarasota

LOCATION: Section 19, Township 36 South, Ranges 17 and 18 East, in Sarasota Bay, Class III waters, within the local jurisdiction of the City of Sarasota.

CONSIDERATION: (1) $85,184.99, representing (a) $10,767.14, as the annual lease fee computed at the base rate of $0.1101 per square foot for 139,706 square feet, discounted 30 percent because of the first-come, first-served nature of the facility; (b) $26,917.85, as the one-time extended lease term payment for 139,706 square feet calculated at 2.5 times the lease fee; (c) $47,500, as the one-time extended lease term payment for 477,679 square feet

Board of Trustees

Agenda - December 4, 1997 Page Eleven

Item 10, cont.

(registered grandfather structures/preempted area) calculated at 2.5 times $19,000 (the average from the last two years of compensation from the gross receipts of the marina operations area);

(2) three percent of the gross receipts from marina operations, exclusive of fuel sales, per year for the registered grandfather structures/preempted area (477,679 square feet) to July 31, 2012; and (3) on August 1, 2012, lease fees for the grandfather structure/preempted area will be assessed at the prevailing rate pursuant to section 18-21.011, F.A.C, in effect at that time. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable.

Fees are current on the existing lease for 139,706 square feet through July 31, 1998, and are in compliance with the terms and conditions of the contract dated June 10, 1983.

STAFF REMARKS: In 1964, the Board of Trustees dedicated through two separate instruments certain filled, formerly submerged lands to the City of Sarasota (City) to be developed as a municipal park and to be used for recreational purposes and a breakwater. Included in the dedications was a stipulation that the City could grant concessions and leases for facilities built or to be built on said land provided such concessions or leases were approved by the Board of Trustees. The Board of Trustees also approved a marina development plan and operating agreement at the same time one of the dedications was approved. The marina development plan included the construction of buildings on the uplands and docking structures on submerged lands. The submerged lands were not included in the dedication. Throughout the years, the Board of Trustees has approved several amended operating agreements between the City and Jack Graham, Inc., the operator of the marina.

On June 10, 1983, when the City requested that the Board of Trustees approve an amendment to its operating agreement with Jack Graham, Inc., the Board of Trustees conditioned its approval upon Jack Graham, Inc., entering into a separate contract with the Board of Trustees under which Jack Graham, Inc., would pay the Board of Trustees three percent of the gross receipts attributable to the marina operations area, excluding fuel sales. That contract remains in effect through July 31, 2012.

In 1985, the City registered the docking structures within the marina operations area under the grandfather program. The grandfather status will expire at the end of 1997 and the marina operations area will be required to come under lease at that time. Since the 1983 contract with Jack Graham, Inc., calls for lease payment to the Board of Trustees of three percent of the gross receipts attributable to the marina operations area, it is staff's recommendation that normal lease fees not be assessed within the marina operations area until that contract expires in 2012.

In 1995, the City and Jack Graham, Inc., agreed to extend the term of their operating agreement since Jack Graham, Inc, would be investing a substantial amount of money (approximately $1,000,000) into improvement of the marina facility. Because of the stipulation in the original dedication requiring Board of Trustees approval of the operating agreement, the City is submitting the proposed amendment to the Board of Trustees for consideration. The effect of the amendment is to extend the term of the agreement, which currently is set to expire on July 31, 2012, to July 31, 2027. The original dedication permits the City to grant leases for up to 30 years.

In 1986, Jack Graham, Inc., leased an area of submerged land outside of but adjacent to the marina operations area directly from the Board of Trustees. The structures located within the area of this sovereignty, submerged land lease constitute an extension of the structures within the marina operations area. In 1996, this sovereignty, submerged land lease was assigned by Jack Graham, Inc., to the City, and the lease was renewed to expire in 2001. The City has Board of Trustees

Agenda - December 4, 1997 Page Twelve

Item 10, cont.

agreed that the grandfather area be incorporated into the existing lease. This would result in the entire facility being under a single lease to the City, with the City having a separate operating agreement with Jack Graham, Inc.

The applicant is requesting that the Board of Trustees extend the term of the sovereignty, submerged land lease until July 31, 2027, so that it will run concurrently with the operating agreement between the City and Jack Graham, Inc. While there may be some benefit to having the sovereignty, submerged land lease and the operating agreement have the same expiration date, section 18-21.008(1)(b)2., F.A.C., only allows leases for terms up to 25 years. Therefore, staff cannot recommend that the submerged land lease be extended beyond the year 2022.

Staff further recommends that the applicant be assessed an appropriate fee for extending the term of the lease in accordance with the Board of Trustees' action on April 12, 1988. A special lease condition will be incorporated into the lease to address the appropriate fee for extending the term of the lease.

During a site inspection conducted on July 18, 1997, the Department of Environmental Protection (DEP) determined that four existing docking structures, while approved by the Board of Trustees in 1983, were constructed without the necessary regulatory permits. Therefore, a consent order, authorizing the after-the-fact construction, was executed by DEP and the City on November 4, 1997, with the stipulation that the City pay $900 for the permit fee, civil penalty, and costs and expenses.

Although violations have occurred, staff does not recommend that the Board of Trustees impose an administrative fine because the violations were regulatory and not proprietary since the additional docks and slips were authorized by the Board of Trustees in 1983.

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

(See Attachment 10, Pages 1-64)

RECOMMEND (1) APPROVAL OF INCORPORATING THE PROVISIONS OF THE 1983 CONTRACT BETWEEN THE BOARD OF TRUSTEES AND JACK GRAHAM, INC., INTO THE LEASE TO BE MODIFIED IN LIEU OF RATIFYING THE CONTRACT; (2) APPROVAL OF THE MODIFIED LEASE AGREEMENT BETWEEN THE APPLICANT AND JACK GRAHAM, INC.; (3) (A) APPROVAL TO MODIFY THE SOVEREIGNTY, SUBMERGED LAND LEASE TO INCORPORATE THE GRANDFATHER STRUCTURES SUBJECT TO THE PAYMENT OF THREE PERCENT OF GROSS RECEIPTS FROM MARINA OPERATIONS UNTIL JULY 31, 2012, AND (B) DENIAL OF THE APPLICANT'S REQUEST TO EXTEND THE TERM OF THE SOVEREIGNTY, SUBMERGED LAND LEASE TO JULY 31, 2027. (4) APPROVAL TO EXTEND THE TERM OF THE SOVEREIGNTY, SUBMERGED LAND LEASE TO JULY 31, 2022, SUBJECT TO APPLICABLE EXTENDED TERM FEES AND SPECIAL LEASE CONDITIONS.