REQUEST:  Consideration of three option agreements to acquire five acres within the Apalachicola Bay CARL project from Nicholas Yonclas, Equity Management and Realty of Tallahassee, Inc., and Tidal Investments, Inc.

STAFF REMARKS: The Apalachicola Bay CARL project was ranked number 15 on the CARL Priority Project List approved by the Board of Trustees on September 12, 1991, and was removed from the 1992 CARL list since the project was 90 percent complete. The project is funded under the Division of State Lands’ Land Acquisition Workplan as a 90 percent complete project.

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

REQUEST: Issuance of a five-year sovereignty, submerged land mining/restoration lease.

COUNTY: Polk

Lease No. 540218264

APPLICANT: IMC/Agrico - Department of Environmental Protection (DEP)

LOCATION: Lake Hancock, a meandered lake encompassing parts or all of Sections 31 and 32, Township 28 South, Range 25 East; Sections 12 and 13, Township 29 South, Range 24 East and Sections 4, 5, 6, 7, 8, 9, 16, 17, 18, 19, 20 and 21, Township 29 South, Range 25 East and the sovereignty submerged lands of Saddle Creek from Lake Hancock to the confluence with Peace Creek within Sections 19, 29, 30, 32 and 33, Township 29 South, Range 25 East.

CONSIDERATION: Reclamation of Lake Hancock by removal or immobilization of the polluted sediments which currently average 2.5 feet deep over the 4,553-acre lake.

STAFF REMARKS: Chapter 86-307, Laws of Florida, recognized the advanced state of eutrophication and generally undesirable condition of Lake Hancock, Polk County, the existence of state-owned mineral resources beneath a portion of the lake, and directed the evaluation of the potential to extract those resources and use the proceeds to accomplish improvement of the water quality in the lake. The results of this evaluation were published in December 1987, and identified approximately six million tons of phosphate ore; developed/costed out various mining alternatives; developed/costed out various reclamation alternatives, including sediment removal and drawdown without mining and concluded that, at the then prevailing price of phosphate rock, the mining/reclamation of the lake was not economically feasible. It also identified the cost of restoration without mining and with the circumstances which existed at that time as $19 million. Projection of these costs and conditions to 1998 suggests that it would cost approximately $30 million to restore the lake without mining.

It should be noted that subsequent to the above study, significant improvements to the quality of the surface water flowing into Lake Hancock have been accomplished. The major domestic wastewater effluent sources, the primary cause of the condition of Lake Hancock, have been removed from the lake. Only one domestic wastewater treatment plant remains permitted to discharge into the lake on an intermittent basis, and it is scheduled to cease such discharges during the next five years. Banana Lake, one of the direct contributors of poor quality water to Lake Hancock, has been restored to a much better water quality. The other tributaries flowing into the lake, Lake Lena Run and Saddle Creek, are receiving ever increasing scrutiny to further reduce nonpoint source loadings (stormwater runoff) into the lake.

In the spring of 1997, the DEP requested that IMC/Agrico, a phosphate mining company which operates the processing plant nearest Lake Hancock (this plant, Noralyn/Clear Springs, was the one used in the 1986/87 study to develop the costs model) reevaluate the 1987 report in light of current economic conditions. IMC/Agrico responded by letter on June 23, 1997, stating "Our preliminary analysis of the report and our evaluation of the feasibility of mining the lake indicate that the project would have marginal economics and would be technically challenging; but that it could be done." The letter pointed out that the Noralyn/Clear Springs processing facility was scheduled to be closed down in late 1998 (this date was subsequently revised to mid-1999) because of exhaustion of the reserves served by the facility. They went on to state that while IMC/Agrico was willing to assume the commercial risks inherent to the project, satisfactory resolution of a number of important issues, which they enumerated, would be a precondition for the company to commit to the project. The issues fell into two categories with six issues in the realm of regulatory and four in the areas of policy and constraints. The DEP proposes to lead an Ecosystem Management/Team Permitting effort, pursuant to Sections 26 and 27 of Chapter 97-164 Laws of Florida, to address the six regulatory issues. Two of the four remaining issues have been determined to be resolvable and the other two are addressed in this agenda item.

The Polk County Board of County Commissioners voted unanimously on September 30, 1997, to "...join with FDEP and the phosphate industry to evaluate the feasibility of restoration of Lake Hancock as an adjunct to the mining of the lake" and authorized the staff of their Department of Natural Resources and Drainage to assist in the effort.

Old Florida Plantation, the land owner whose property lies between IMC/Agrico’s ownership and Lake Hancock, has been cooperative and representatives of the interested parties are currently examining the routes of access for the draglines and mining infrastructure which will be mutually acceptable.

IMC/Agrico stated that the project would be marginally feasible only if the royalties on the sovereign minerals were waived. The 1987 report supports this statement. It is estimated that the royalties would amount to something between $5.4 to 7.6 million. This amount may be considered as payment for removing or immobilizing the sediment from the unmined portion of the lake. The cost of removal or immobilizing the sediment without mining is projected from the 1987 estimates to be $30 million; approximately 47 percent (2,136 acres) of the lake is anticipated to be mined and reclaimed, leaving 53 percent (2,417 acres) to experience sediment removal or immobilization at a prorated cost of $15.9 million. This cost of $6,587 per acre to restore Lake Hancock is approximately the amount spent per acre ($7,800) to restore Banana Lake.

Development of sinkholes is a not uncommon occurrence in this part of Polk County. It has been reported that one has occurred in the southwestern portion of Lake Hancock. IMC/Agrico expressed its unwillingness to accept unlimited liability for sinkholes which might occur during a mining/reclamation project, but General Counsel from DEP advised IMC/Agrico that the state cannot relieve them of any liability which they might incur during the mining and restoration of Lake Hancock. The DEP cannot assume any liabilities which might accrue to any contractor mining/restoring the lake. Staff would suggest a lease provision directing the company to fill any sinkholes which might occur in the same manner currently used in the area.

Staff would also suggest a lease condition prohibiting mining activities in a zone 50 feet waterward of the shoreline with the lake level at 98.5 feet MSL or 50 feet waterward of the shoreline vegetation, whichever is most waterward, except for access and dike tieouts.

The lease would become effective on receipt of the required permits.

The lease would provide that the portion of the lake not being actively mined be available for traditional uses including commercial fishing.

There is a small but active commercial fishery targeting exotic Tilapia spp. that objects to the proposal to alter the existing water quality of the lake. They note that decreasing the nutrients will adversely impact the species which are their target. Tilapia spp. are common in water bodies in this part of the state.

(See Attachment 2, Pages 1-38)

REQUEST:  Consideration of an option agreement to acquire 501.4 acres within the Miccosukee Canopy Road Greenway under the Preservation 2000 Florida Greenways and Trails program from The Trust For Public Land (TPL), a California non-profit corporation.

STAFF REMARKS: The Miccosukee Canopy Road Greenway project is identified on the Florida Greenways and Trails program approved acquisition list. The Miccosukee Canopy Road Greenway acquisition represents the twelfth negotiated project under the Florida Greenways and Trails program and the tenth acquisition made by this office under the Florida Preservation 2000 program. This agreement was negotiated by the Office of Greenways and Trails. TPL holds an option to purchase the subject property from Powerhouse, Incorporated. TPL’s obligation to convey the property to the Board of Trustees is contingent upon their acquiring fee simple title to the property prior to closing this transaction.