Submittal of the minutes of the February 10, 1998 Cabinet meeting.

COUNTY: Monroe

LOCATION: Section 05, Township 66 South, Range 29 East

CONSIDERATION: $90,000

APPRAISED BY

REVIEW Marr APPROVED PURCHASE CLOSING

NO. PARCEL ACRES (11/17/97) VALUE PRICE DATE

805003 Lot 1 0.19 $45,000 $45,000 $45,000 6 months after

Lot 2 0.17 $45,000 $45,000 $45,000 BOT approval

0.36 $90,000 $90,000

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

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

The subtropical pine forests of rapidly developing Big Pine Key and the islands around it are the home of the endangered Key deer as well as of many Caribbean plants found nowhere else in the country. Rich coral reefs and other hardbottom communities flourish in the shallow water around the islands. The Coupon Bight/Key Deer CARL project will protect the remaining undeveloped land on Big Pine and No Name Keys, without which, the Key deer will

not survive; protect the water quality of the Coupon Bight Aquatic Preserve and the other waters surrounding the islands; and provide the public an area to appreciate the unique natural world of this part of Florida.

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

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

(See Attachment 2, Pages 1-7)

RECOMMEND APPROVAL

REQUEST:  Consideration of two purchase agreements to acquire 86.2 acres within the Belle Meade CARL project from Marvin V. and Beverly J. Mielke and Owen Kenneth Sloan.

COUNTY:  Collier

LOCATION:  Sections 06 and 23, Township 50 South, Range 27 East

CONSIDERATION:  $175,360

APPRAISED BY

REVIEW Catlett APPROVED PURCHASE CLOSING

NO. PARCEL ACRES (09/17/97) VALUE PRICE DATE

805010 Mielke/480 40.4 $101,000 $101,000 $ 92,920 6 months

805011 Sloan/465 45.8 $ 90,000 $ 90,000 $ 82,440 after BOT

86.2 $191,000 $175,360 approval

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 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 1-11)

RECOMMEND APPROVAL

COUNTY:  Citrus

LOCATION:  Section 17, Township 18 South, Range 17 East

CONSIDERATION:  $1,606,500

APPRAISED BY

REVIEW Schaefer Dohring APPROVED PURCHASE OPTION

NO. PARCEL ACRES (08/25/95) (07/19/95) VALUE PRICE DATE

805008 Souria/59 12.22 $1,330,000 $1,570,000 $1,570,000 $1,491,500 180 days

after BOT

(11/22/95) approval

805009 Zuban/57 6.19 $ 120,000 $ 120,000 $ 115,000

18.41 $1,690,000 $1,606,500

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 property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

The ragged coastline of Citrus County, with its salt marshes, clear spring runs, hammocks, and flatwoods, is being affected by the explosive growth of this part of the state. The Florida Springs Coastal Greenway project will conserve the natural landscape of this coast, protecting

the water quality of the spring runs and estuaries where endangered manatees congregate, preserving natural lands that link with conservation lands to the south, and providing scenic areas in which the public can enjoy fishing, hiking, or learning about the natural world of this coast.

These properties will be managed by Division of Marine Resources as a part of the Crystal River State Buffer Preserve.

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

(See Attachment 4, Pages 1-56)

RECOMMEND APPROVAL

COUNTIES: Citrus and Hernando

LOCATION: Sections 13, 14, 15, 22, 23, 26, 27, 28, 33, 34 and 35, Township 20 South, Range 18 East; and Sections 03 and 04, Township 21 South, Range 18 East

CONSIDERATION: $14,859,335 ($14,759,335 for the acquisitions; $100,000 for the purchase of the option agreement)

APPRAISED BY

REVIEW Hunnicut Rogers APPROVED PURCHASE OPTION

NO. ACRES (09/05/96) (07/31/96) VALUE PRICE DATE

805001 5,242.8 * $17,300,000 $17,300,000 $18,350,000 * $14,759,335 120 days

after BOT

* As a result of the discovery of a miscalculation in the total acreage, the number approval

of acres was increased by 299.70 acres and the value was revised on 12/04/97.

Pursuant to a multi-party acquisition agreement entered into between the Division of State Lands (DSL) and The Nature Conservancy, Inc. (TNC), TNC has acquired an option to purchase this 5,242.8-acre parcel from Sugarmill Woods, Inc., a Florida corporation and LOVE-PGI Partners, L.P., a Missouri limited partnership. After this acquisition is approved, the Board of Trustees will acquire the option from TNC for $100,000, which represents agreed upon compensation to TNC for overhead associated with acquiring the option. The assignment of option agreement provides that payment to TNC is contingent upon the Board of Trustees successfully acquiring the property from the owner. The assignment of option agreement further provides that in no event will the purchase price for the option and the purchase price of the property exceed the DSL approved value of the property.

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 or proposed management of the property, staff will so advise the Board of Trustees prior to closing.

A certified survey and an environmental site assessment shall be provided by the seller prior to closing. Purchaser shall reimburse seller for 50 percent of the DSL approved cost of survey, not to exceed $29,985.

The Brooksville Ridge in west-central Florida supports some of the last large tracts of longleaf-pine sandhills in Florida, unique forests full of northern hardwood trees, and many archaeological sites. The Annutteliga Hammock project will conserve the remaining fragments of the forests between the Withlacoochee State Forest and the Chassahowitzka Wildlife Management Area, thereby protecting habitat for Florida black bears and many sandhill-dwelling plants and animals and giving the public a large area for recreation in the original landscape of this fast-growing region.

Section 259.032(9)(b)2., F.S., requires that the Board of Trustees, concurrent with its approval of the initial acquisition agreement within a project, "evaluate and amend, as appropriate, the management policy statement for the project as provided by section 259.035, F.S., consistent with the purposes for which the lands are acquired." The management policy statement for this project was included in the 1998 CARL Annual Report adopted by the Board of Trustees on February 10, 1998. Staff recommends that the Board of Trustees confirm the management policy statement as written.

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 1-63)

COUNTY: Hernando

LOCATION: Sections 03, 04, 07, 09, 10 and 16, Township 21 South, Range 18 East

CONSIDERATION: $5,823,510 ($5,751,000 for the acquisitions; $72,510 for the purchase of the option agreement)

APPRAISED BY

REVIEW Rogers Catlett APPROVED PURCHASE OPTION

NO. ACRES (09/12/97) (09/10/97) VALUE PRICE DATE

805002 1,584.9 $ 7,130,000 $ 6,795,000 $ 7,130,000 $ 5,751,000 180 days after

BOT approval

Pursuant to a multi-party acquisition agreement entered into between the Division of State Lands (DSL) and The Nature Conservancy, Inc. (TNC), TNC has acquired an option to purchase this 1,584.9-acre parcel from S & D Florida Seville, LTD., a Texas limited partnership. After this acquisition is approved, the Board of Trustees will acquire the option from TNC for $72,510, which represents agreed upon compensation to TNC for overhead associated with acquiring the option. The assignment of option agreement provides that payment to TNC is contingent upon the Board of Trustees successfully acquiring the property from the owner. The assignment of option agreement further provides that in no event will the purchase price for the option and the purchase price of the property exceed the DSL approved value of the property.

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 or proposed management of the property, staff will so advise the Board of Trustees prior to closing.

A certified survey and a title insurance policy will be provided by the purchaser prior to closing. Seller shall provide an environmental site assessment and reimburse 50 percent of the purchaser’s survey costs.

The Brooksville Ridge in west-central Florida supports some of the last large tracts of longleaf-pine sandhills in Florida, unique forests full of northern hardwood trees, and many archaeological sites. The Annutteliga Hammock project will conserve the remaining fragments of the forests between the Withlacoochee State Forest and the Chassahowitzka Wildlife Management Area, thereby protecting habitat for black bear and many sandhill-dwelling plants and animals and giving the public a large area for recreation in the original landscape of this fast-growing region.

The property will be managed by the Game and Fresh Water Fish Commission as a wildlife management 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 6, Pages 1-31)

COUNTY:  Lake

LOCATION: Sections 13, 14, 15, 18, 23, 24, 25, 26, 27, and 34, Township 17 South, Range 28 East; Sections 03 and 10, Township 18 South, Range 28 East; Section 07, Township 18 South, Range 29 East; and Sections 17, 18, 19 and 20, Township 17 South, Range 29 East

CONSIDERATION:  $5,500,000

APPRAISED BY

REVIEW Clayton Goodman APPROVED PURCHASE OPTION

NO. PARCEL ACRES (10/23/97) (10/23/97) VALUE PRICE DATE

805005 Clemmons 3,582.56 $5,580,000 $6,100,000 $6,100,000 $5,500,000 180 days after

BOT approval

This property is subject to outstanding oil, gas and mineral interests in favor of Leon R. Bass, Frieda R. Bass, and Emma G. Ford, et al. These outstanding interests affect approximately 273.05 acres. The seller will attempt to acquire the outstanding interests prior to closing. In the event seller is unable to acquire the outstanding interests, staff recommends acquiring the property subject to the outstanding interests. The Bureau of Geology determined that the potential for oil, gas and mineral production at this site is considered slight. The Bureau of Appraisal has indicated that the outstanding interests do not affect the market value of the property. The Department of Agriculture and Consumer Services, Division of Forestry (DOF), the managing agency, has determined that the property can be effectively managed subject to the outstanding oil, gas and mineral interests. Portions of this property, north of State Road 42, are within both the Wekiva-Ocala Greenway CARL project and the proclaimed boundary of Ocala National Forest.

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

The 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 part of the Seminole National Forest.

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

(See Attachment 7, Pages 1-42)

RECOMMEND APPROVAL

COUNTIES:  Charlotte and Lee

LOCATION:  Sections 01, 02, and 03, Township 43 South, Range 23 East and Section 36, Township 42 South, Range 23 East

CONSIDERATION:  $5,800,000

APPRAISED BY

REVIEW Hrabko Bowen APPROVED PURCHASE OPTION

NO. PARCEL ACRES (08/08/96) (08/08/96) VALUE PRICE DATE

805006 Zemel Phase I 2,544.43 $6,350,000 $5,980,000 $6,350,000 $5,800,000 150 days after

BOT approval

Approximately 316 acres of the property are subject to one-half outstanding oil, gas and mineral interests in favor of the Estate of T. M. Stevens. The Bureau of Geology determined the resources with the most potential for commercial development are sand and shell. Albeit the probability is low, there could be some potential for oil and gas production in this region of Florida even though none has been discovered thus far. The Bureau of Appraisal has indicated that the one-half outstanding interests in mineral rights and mineral rights reservations does not negatively affect the value of the property. The Florida Game and Fresh Water Fish Commission (GFC) has determined that the property 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 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.

Northwest of Fort Myers lies the largest and highest-quality slash-pine flatwoods left in southwest Florida. The pines are home to red-cockaded woodpeckers, Florida black bears, and bald eagles, and an occasional Florida panther ranges the area. The largest population of the rare beautiful pawpaw grows here. Several drainage ditches flow through these flatwoods into the Charlotte Harbor Aquatic Preserve. The Charlotte Harbor Flatwoods project will protect these flatwoods and connect the Charlotte Harbor State Buffer Preserve with the Cecil M. Webb Wildlife Management Area, helping to protect both of these managed areas and the waters of the Aquatic Preserve.

This property will be managed by the GFC as part of the Cecil M. Webb Wildlife Management 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 8, Pages 1-74)

RECOMMEND APPROVAL

COUNTY:  Collier

LOCATION:  Section 23, Township 51 South, Range 25 East

CONSIDERATION:  $82,500

APPRAISED BY

REVIEW Dane APPROVED PURCHASE OPTION

NO. PARCEL ACRES (01/28/97) VALUE PRICE DATE

805012 Miller/106 0.85 $85,000 $85,000 $82,500 180 days after

BOT approval

There are no improvements on the property; however the seller also holds an undivided one-fourth ownership interest and access to a 650 square-foot dock located on adjacent state-owned lands. Acquisition of this parcel will give the state sole ownership and access to the dock. The Rookery Bay National Estuarine Research Reserve, the future managing agency, intends to use the dock to provide access to the site for management purposes and to assist the reserve in providing managed public access to the 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 waiver of the requirement of survey for 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 subdivision or in a section in which the controlling land corners have been recently survey by Coastal Engineering Consultants, Inc., and the survey drawing is acceptable for computing acreage;
• the parcel is in its natural unimproved condition;
• although the interior parcel lines were not surveyed, it appears that the boundaries of the parcel do not adjoin fences or improvements other than those managed by the state; and
• the parcel was visually inspected on February 12, 1998.

While this parcel is being recommended for a waiver of survey at this time, should the title commitment and field inspection reveal a substantive surveying or surveying related issue which impacts the parcel, a certified survey 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.

This 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 9, Pages 1-41)

RECOMMEND APPROVAL

REQUEST: Consideration of a purchase agreement to acquire 6.56 acres by the Board of Trustees for the benefit of the Florida Board of Regents and University of Florida/Institute of Food and Agricultural Sciences from James Kenneth Faulk and Vergie K. Faulk.

COUNTY: Hillsborough

APPLICANT: University of Florida

LOCATION: Section 15, Township 32 South, Range 19 East

CONSIDERATION: $104,000

APPRAISED BY

REVIEW Pallardy APPROVED PURCHASE CLOSING

NO. PARCEL ACRES (05/22/97) VALUE PRICE DATE

805004 Faulk 6.56 $104,000 $104,000 $104,000 200 days after

BOT approval

Improvements on the property include a 1,320 square-foot, three bedroom, two bath, 1996

model manufactured home; 800 and 960 square-foot metal buildings on concrete slabs; and numerous fish tanks and fish ponds.

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, an environmental site assessment and a title insurance policy will be provided by UF prior to closing.

This property will be managed by UF/IFAS as part of the Ruskin Aquaculture Laboratory 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 10, Pages 1-27)

COUNTY:  Franklin

LOCATION:  Sections 09 and 16, Township 07 South, Range 04 West

CONSIDERATION:  $________

APPRAISED BY

REVIEW Watson APPROVED PURCHASE CLOSING

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

805013 St. Joe 348.87 $_______ $_______ $_______ 100 days after

BOT approval

This property is subject to outstanding oil, gas and mineral interests in favor of Humble Oil and Refining Company. These outstanding interests affect approximately 299 acres. The Bureau of Geology determined that based on the geologic database, they do not believe there is a potential for large scale economic development of any industrial minerals at this site. If a site specific investigation were conducted and found that limestone was within a few feet of the surface, then it could have some value. Locally, the overlying sands and clayey sand as well as the organics might be used as fill material or for horticultural purposes. Based on the present understanding of the geology of the area, the potential for oil or gas production still remains uncertain. DC, the managing agency, has no objection to managing the property subject to the outstanding oil, gas and mineral interests. In the course of extensive research, DC has determined that this is the only economically feasible site acceptable to both the state and Franklin County.

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, a title insurance policy and an environmental site assessment will be provided by DC prior to closing. Based on verbal communication with their consultant, DC does not foresee any contamination of the site. However, if contaminants are discovered, DC is willing to assume responsibility for the monitoring and clean-up.

This property will be managed by DC as a correctional institution.

This acquisition is consistent with section 187.201 (07), F.S., the Public Safety section of the State Comprehensive Plan.

(Attachments will be submitted separately.)

RECOMMEND APPROVAL

COUNTY: Escambia

LOCATION: Sections 01 through 07, Township 03 South, Range 32 West

CONSIDERATION: $__________ ($__________ for the acquisition; $_______ for the purchase of the option agreement)

APPRAISED BY

REVIEW Rogers Altenpohl APPROVED PURCHASE OPTION

NO. ACRES (10/30/97) (09/24/97) VALUE PRICE DATE

805007 906.7 $________ $________ $________ $_________ 04/01/98

Pursuant to a multi-party acquisition agreement entered into between the Division of State Lands (DSL) and The Nature Conservancy, Inc. (TNC), TNC has acquired an option to purchase

this 906.7-acre parcel from Trilogy Corporation, a Florida corporation. After this acquisition is approved, the Board of Trustees will acquire the option from TNC for $______, which represents agreed upon compensation to TNC for overhead associated with acquiring the option. The assignment of option agreement provides that payment to TNC is contingent upon the Board of Trustees successfully acquiring the property from the owner. The assignment of option agreement further provides that in no event will the purchase price for the option and the purchase price of the property exceed the DSL approved value of the property.

This property is subject to outstanding oil, gas and mineral interests in favor of numerous parties. These outstanding interests affect approximately 790 acres, of which 493 acres are encumbered by leases. Based on information available at the time of appraisal, the outstanding interests do not affect the market value of the property. The Bureau of Geology has also been consulted and its findings are based primarily on information and reports contained in the Florida Geological Survey (FGS) geologic database as well as the experience and knowledge of the FGS staff members. They advise that the subject parcel is located several miles southwest of one of Florida’s major oil producing regions, the Jay Field of northwest Florida. Four test wells were drilled just east of the subject parcel and were plugged and abandoned several years ago because they were dry. The potential for shallow oil and deep oil and gas production at this location remains unknown, with the greatest potential for commercial industrial mineral development being the sands. Staff is also securing a mineral interest title search to assist in further evaluating the outstanding interests and leases. Prior to closing, all research and analysis will be reviewed with the Bureau of Geology, the Bureau of Appraisal, and the Division of Recreation and Parks (DRP), the future managing agency, to determine if the property can be effectively managed subject to the outstanding oil, gas and mineral interests and that those interests do not affect the market value of the 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 other encumbrances which may affect the value or proposed management of the property, staff will so advise the Board of Trustees prior to closing.

A certified survey, environmental site assessment and title insurance shall be provided by the purchaser prior to closing.

The pine flatwoods and swamps west of Pensacola are interrupted by wet grassy prairies dotted with carnivorous pitcher plants, some of the last remnants of a landscape unique to the northern Gulf coast. The Perdido Pitcher Plant Prairie project will conserve these prairies and the undeveloped land around them, helping to protect the water quality of Perdido Bay and Big Lagoon, and giving the public a wealth of opportunities to learn about and enjoy this natural land.

Pursuant to section 259.032(9)(b)2., F.S., staff recommends that the Board of Trustees designate DRP as the managing agency for this site. It will be managed for the conservation of its natural resources and for public recreation purposes.

Section 259.032(9)(b)2., F.S., requires that the Board of Trustees, concurrent with its approval of the initial acquisition agreement within a project, "evaluate and amend, as appropriate, the management policy statement for the project as provided by section 259.035, F.S., consistent with the purposes for which the lands are acquired." The management policy statement for this project was included in the 1997 CARL Annual Report adopted by the Board of Trustees on February 11, 1997. Staff recommends that the Board of Trustees confirm the management policy statement as written.

This property will be managed by DRP as a state park, providing opportunities for swimming, fishing, boating, camping, hiking and nature appreciation.

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

(Attachments will be submitted separately.)

REQUEST: Consideration of a request to convey 2.52 acres, more or less, of state-owned land to Jefferson County.

COUNTY: Jefferson

Deed No. 29989

APPLICANT: Jefferson County

LOCATION: Section 31, Township 02 North, Range 05 East

STAFF REMARKS: On July 6, 1955, Jefferson County (County) deeded 2.52 acres, more or less, to the State of Florida for the use and benefit of the State Road Department (Department). The deed specified that, if the Department ever abandoned the land, title would revert to the County. In 1967, the property was conveyed to the Board of Trustees by the Department pursuant to chapter 67-269, General Laws of 1967. The Department of Transportation (DOT), as successor to the State Road Department, has been managing the property as a maintenance yard. DOT recently moved its facility to a site in Gadsden County and requested that the Board of Trustees convey the property to the County pursuant to the conditions of the 1955 deed. DOT will retain use of a one-acre parcel adjacent to the property that was acquired under a separate deed. A communications tower is located on that site.

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

REQUEST: Consideration of a request to convey 9,384 acres of Board of Trustees land to the South Florida Water Management District for inclusion in the Everglades Construction Project.

COUNTY: Palm Beach

Deed No. 29996

APPLICANT: South Florida Water Management District

STAFF REMARKS: The Florida Legislature, in the Everglades Forever Act (EFA), declared that it is necessary for the public health and welfare that the Everglades water and water-related resources be conserved and protected. It was recognized at that time that certain public lands might be needed for the treatment and storage of water prior to its release into the Everglades Protection Area. To accomplish this, the South Florida Water Management District (SFWMD) was given the responsibility of implementing the Everglades Construction Project and of acquiring whatever land it needed to meet the goals of the EFA.

The SFWMD has requested that five parcels of Board of Trustees’ land be deeded to it to accommodate its plans for the project. The Everglades Nutrient Removal Area (3,742 acres) and Brown’s Farm (5,370 acres) have been under lease to the SFWMD so that certain phases of work could be commenced, but will now be conveyed in fee title for completion of the project. A 3.63-acre parcel, currently under lease to the Florida Game and Fresh Water Fish Commission (Commission), is needed for a discharge canal at the base of STA-6. The Commission has agreed to release the parcel from its lease. A 27.2-acre unleased parcel is needed for the S5A Diversion Project. A 241.17-acre parcel, needed for the discharge canal that will serve STA-5, is currently subject to a memorandum of agreement between the SFWMD, Board of Trustees and Commission and is managed in conjunction with the Commission’s Rotenberger Tract. These lands could be placed under long-term lease or easement to accomplish the purposes of the Everglades Construction Project; however, staff believes that, because of the significant alteration of the land which is to take place and the potential for future contamination, it would not be in the best interest of the Board of Trustees to continue to hold title. In addition, the SFWMD has requested title to facilitate eviction of squatters that have moved on to the property. The deed will contain language to the effect that title will revert to the Board of Trustees, at its sole option, if the land ceases to be used for the purposes set forth in the Everglades Forever Act.

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

(See Attachment 14, Pages 1-14)

REQUEST: Consideration of a request to: (1) determine that two 50-year easements are compatible with the purposes for which the Point Washington lands were acquired; and (2) issue a 50-year easement to Alabama Electric Cooperative, Inc., and a 50-year easement to Choctawhatchee Electric Cooperative, Inc., containing 5.81 acres, more or less.

COUNTY: Walton

Easement Numbers 29979 and 29980

LOCATION: Section 33, Township 02 South, Range 19 West.

CONSIDERATION: $7,274.54 to be deposited into the Internal Improvement Trust Fund

STAFF REMARKS: When the Board of Trustees acquired the Point Washington property, the acquisition included an existing Choctawhatchee Electric Cooperative, Inc. (CHELCO) powerline which parallels State Road 283 and extends from State Road 30A to a Gulf Power Company transmission line north of U. S. Highway 98. The powerline has been in place for many years although no official easement exists for a portion of the property covered by the powerline. The portion having an official easement is for a 20-foot-wide right-of-way which was given to CHELCO in September 1941 by St. Joe Paper Company. The powerline serves the Okaloosa and Walton County areas. Rapid development has taken place in Okaloosa and Walton Counties which has substantially increased the demand for power and stressed the existing facilities. The Seaside and Grayton Beach areas, including the state park, have experienced brownouts. To provide additional electrical service to the area, Alabama Electric Cooperative, Inc. (AEC) is proposing to install a large-scale transmission line, in conjunction with a new substation, which will bring additional power to the area. CHELCO will relocate its smaller distribution lines to the larger AEC structures to continue serving its customers. The AEC structures will follow the same alignment as the current CHELCO line, but will be moved closer to the highway at the Department of Agriculture and Consumer Services, Division of Forestry’s (DOF) request. A small portion of CHELCO’s existing line crosses State Road 283 as it approaches U. S. Highway 98. CHELCO has agreed to move this portion of the easement to the east side of the highway to provide a continuous easement on one side of the highway. CHELCO is requesting an easement from the Board of Trustees at this time to make its use of state-owned land official.

The proposed easement will cross portions of Point Washington State Forest, which is managed by DOF, and a portion of the Grayton Beach State Recreation Area, which is managed by the Department of Environmental Protection (DEP), Division of Recreation and Parks.

The easement fee, which is the appraised market value of the easement, will be paid to the Board of Trustees by AEC. Since CHELCO is merely relocating an existing powerline, an easement fee will not be assessed.

Pursuant to section 259.101(7)(a), F.S., the Board of Trustees may authorize the granting of a lease, easement, or license for the use of any lands acquired pursuant to section 259.101(3), F.S., for any other incidental public or private use that is determined by the board to be compatible with the purposes for which such lands were acquired. The Division of State Lands requested that the managing agencies provide a recommendation to the Board of Trustees regarding the compatibility of the easements with the purposes for which the lands were acquired. The Division of Recreation and Parks has indicated that the easements are not incompatible with park purposes and it has no objection to the easements. The DOF, in recognition of the facts that the powerline was on the property at the time of acquisition and that the proposed new alignment would not interfere with the management of the property as a state forest, has indicated that the proposed easement is compatible with the purpose for which the property was acquired.

The proposed easements were approved by the Land Acquisition and Management Advisory Council on December 5, 1997.

An additional benefit to the managing agencies will be the receipt of funds generated from the removal of trees from the easement area, mulch, if any, and upgraded electrical power service to the state-owned facilities.

CHELCO has agreed to release the blanket easements that are located within the Point Washington State Forest in the vicinity of the new easement.

In light of the foregoing, it has been determined that the proposed easements are consistent with both the Board of Trustees’ Incompatible Use of Natural Resource Land Policy and Use of Natural Resource Lands by Linear Facilities Policy.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S., and the proposed action is consistent with the adopted plan.

(See Attachment 15, Pages 1-55)

REQUEST: Authorization to encumber specific parcels of state-owned land as a condition for the receipt of federal grant money.

COUNTY: Statewide

APPLICANT: Department of Environmental Protection (DEP)

STAFF REMARKS: When state land is purchased or restored using federal grant dollars or is used as a match for the federal funds, the federal government requires that the land purchased, restored or pledged as a match be used only for the purposes specified in the grant agreement. The federal requirements preclude the grant recipient from altering the use of those lands or from disposing of or encumbering them without the concurrence of the granting agency. The matching grants listed below require Board of Trustees’ approval because acquisition with federal grant dollars or the use of state land for a restoration project or as a grant match will result in certain restrictions on the future use of Board of Trustees’ property. Staff has reviewed these grants and has determined that the objectives of the state’s environmental land acquisition and management programs will be served if approval is granted. The grant conditions are consistent with the program needs that were established when the lands were originally selected for acquisition and will not limit the managers’ ability to carry out their management responsibilities.

The objective of the Hendry and Mullock Creek proposal is to acquire 1,651 acres in the Estero Bay CARL project. The acquisition of this freshwater marsh, hydric flatwoods, oak hammock and salt flats will improve water quality by reducing non-point pollution related to residential, agriculture and commercial upstream sources. The land will serve as a filtering and

buffering zone for runoff prior to discharge into the brackish bays of Estero Bay Aquatic Preserve. This is a partnership acquisition with DEP, the United States Fish and Wildlife Service (USFWS), The Nature Conservancy and Lee County participating. As part of the match for the federal grant money, The Nature Conservancy will donate 640 acres of land valued at $760,000 and Lee County will donate 105 acres of land valued at $104,990 to the Board of Trustees. Six hundred fifty-seven thousand one hundred seventy-five dollars ($657,175) from the CARL Trust Fund and $1,000,000 from the USFWS will be used to acquire the remaining 906 acres and to do some exotic plant control on the acquired property. Title to the property will vest in the Board of Trustees but, since federal funds are being used, all 1,651 acres will be restricted to the conservation objectives of the project and no change in use or future development can take place without the consent of the USFWS. In the event the grant is approved, DEP will be required to certify that the federal acquisition procedures will be followed.

The objective of the Cow Slough Connection proposal is to acquire 880 acres in the Estero Bay CARL project. The acquisition of this freshwater and saltwater marsh, hydric flatwoods, mangrove sloughs, maritime hammocks, and salt flats will ensure long-term protection of the upland and wetland communities associated with this area. The land will serve as a filtering and buffering zone for runoff prior to discharge into the brackish bays of Estero Bay Aquatic Preserve. This is a partnership acquisition with DEP, the USFWS and Lee County participating. As part of the match for the federal grant money Lee County will donate 160 acres of land valued at $180,080 to the Board of Trustees. Two million nine hundred twenty-five thousand seventy-five dollars ($2,925,075) from the CARL Trust Fund and $1,000,000 from the USFWS will be used to acquire the remaining 720 acres and to do some exotic plant control on the acquired property. Title to the property will vest in the Board of Trustees but, since federal funds are being used, all 880 acres will be restricted to the conservation objectives of the project and no change in use or future development can take place without the consent of the USFWS. In the event the grant is approved, DEP will be required to certify that the federal acquisition procedures will be followed.

The objective of the Sarasota Bay - Hog Creek proposal is to provide long-term conservation and management of 68 acres of vital wetlands and seagrass meadows within the Sarasota Bay National Estuary Program Region through the restoration and enhancement of the Sarasota Bay ecosystem. This proposal also is to acquire four acres within the Hog Creek area. This is a partnership restoration and acquisition project with $194,750 from the Department of Community Affairs, Florida Communities Trust, $150,000 from Sarasota County, and $650,000 from the USFWS going towards the purchase and restoration. Since federal funds are being used, all 72 acres will be restricted to the conservation objectives of the project and no change in use or future development can take place without the consent of the USFWS. Title to the property will not vest in the Board of Trustees. It is possible, however, that if the local government ever converted the land to a use not authorized under the grant the Board of Trustees would be required to take title.

The objective of the Henderson Creek proposal is to acquire 444 acres of environmentally sensitive lands surrounding the headwaters of Henderson Creek. The acquisition of this property is important to the Rookery Bay National Estuarine Research Reserve in that it will

result in improved water quality by reducing non-point pollution related to residential, agriculture and commercial upstream sources. The land will serve as a filtering and buffering zone for runoff prior to discharge into the Henderson Creek Estuary. This is a partnership acquisition with $687,500 from the CARL Trust Fund, $360,000 from Collier County and $914,112 from the USFWS going toward the purchase and some minor restoration. The restoration will include the removal of a power line access road, restoration of access with an at-grade GeoWeb road and some exotic plant removal. Title to the property will vest in the Board of Trustees but, since federal funds are being used, all 444 acres will be restricted to the conservation objectives of the project and no change in use or future development can take place without the consent of the USFWS. In the event the grant is approved, DEP will be required to certify that the federal acquisition procedures will be followed.

The objective of the Tampa Bay Buffer to Terra Ceia Aquatic Preserve, et al., proposal is to acquire 1,107 acres along the shores or in the watershed of Tampa Bay. The acquisition of mangrove forests, tidal marshes, and salt barrens will improve the water quality by reducing the non-point pollution related to residential, agriculture and commercial upstream sources. The land will serve as a filtering and buffering zone for runoff prior to discharge into Tampa Bay.

Site #1 – Terra Ceia Acquisition: This is a partnership acquisition with $308,324 from the CARL Trust Fund and $504,731 from the USFWS going toward the purchase of 802 acres on Rattlesnake Key and Joe’s Island. Title to the property will vest in the Board of Trustees but, since federal funds are being used, all 802 acres will be restricted to the conservation objectives of the project and no change in use or future development can take place without the consent of the USFWS. In the event the grant is approved, DEP will be required to certify that the federal acquisition procedures will be followed.

Site #2 - Emerson Point: This is a restoration project to remove exotics. It will use state and Water Management District funds. At this time, funding is requested from the federal Coastal Wetlands Grant Program, and, if received, the property will be restricted to the conservation objectives of the project and no change in use or future development can take place without the consent of the USFWS.

Site #3 - Wolf Branch Creek: Restoration of this site will be accomplished with cooperation from the Southwest Florida Water Management District (SWFWMD), DEP and Hillsborough County. At this time, funding is requested from the federal Coastal Wetlands Grant Program, but it is uncertain if state-owned submerged lands will be affected.

Site #4 - Clam Bayou: Restoration of this site will be accomplished with cooperation from the SWFWMD, DEP and the City of Gulfport. At this time, funding is requested from the federal Coastal Wetlands Grant Program, but it is uncertain if state-owned submerged lands will be affected.

The objective of the Queens Island Phase I proposal is to acquire approximately 131 acres in the Indian River Lagoon Region, an estuary of national significance. The acquisition of coastal salt marsh, mangrove swamps, maritime forest, and coastal strands and dunes will preserve, protect, and restore the natural barrier island communities. This land would add an additional

buffer to the shoreline of the Indian River. This is a partnership acquisition with $689,498 from the South Florida Water Management District (SFWMD), $460,390 from St. Lucie County, and $914,112 from the USFWS. Title to the property will not vest in the Board of Trustees. It is possible, however, that if the local government ever converted the land to a use not authorized under the grant the Board of Trustees would be required to take title.

The objective of the Middle Cove Park proposal is to acquire 201 acres in the Indian River Lagoon Region, an estuary of national significance. The acquisition of mangrove swamps and salt marsh will preserve and protect coastal wetlands. This land would improve tidal inundation frequency and the exchange of organic productivity between the wetland and the estuary. In addition, it would improve water quality in the marsh and permit more species of marine and estuarine organisms to utilize the site. This is a partnership acquisition with $519,725 from the Department of Community Affairs, Florida Communities Trust and $419,725 from USFWS. Title to the property will not vest in the Board of Trustees. It is possible, however, that if the local government ever converted the land to a use not authorized under the grant the Board of Trustees would be required to take title.

The objective of the Kings Island Preserve proposal is to acquire 190 acres in Indian River Lagoon Region, an estuary of national significance. The acquisition of mangrove swamps, salt marsh, and maritime forest will protect, restore, and guarantee continued tidal connection of Kings Island to the Indian River Lagoon. The land would be an additional buffer to the Ft. Pierce Inlet State Recreation Area from developmental impacts. This is a partnership acquisition with $816,400 from the Department of Community Affairs, Florida Communities Trust, $216,400 from St. Lucie County, and $600,000 from the USFWS. Title to the property will not vest in the Board of Trustees. It is possible, however, that if the local government ever converted the land to a use not authorized under the grant the Board of Trustees would be required to take title.

The objective of the Withlacoochee State Trail proposal is to construct a recreational facility consisting of restrooms, picnic shelters and informational kiosks at the Withlacoochee State Trail trailhead. This project will be federally funded for $90,000. Title to the property is vested in the Board of Trustees and will be restricted to the recreation objectives of the project and no change in use or future development can take place without federal approval.

The objective of the Marion County Urban Greenway Transportation Enhancement Project proposal is to construct a recreational facility consisting of a paved trail, parking, side trails, rest areas, restrooms, picnic shelters and informational kiosks at the intersection of State Road 464 and State Road 35. This project will be funded by the Federal Highway Administration for $1,000,000 and by Marion County for $45,000. Title to the property is vested in the Board of Trustees and will be restricted to the recreation objectives of the project and no change in use or future development can take place without federal approval.

The objective of the Jacksonville-Baldwin Trail proposal is to construct a welcome center, two parking areas at each trailhead, paving on the trail, kiosks, drainage structures and placement

of informational signs in Baldwin and Jacksonville. This project will be funded by the Federal Highway Administration for $1,760,000 and by the Florida Department of Transportation for $440,000. Title to the property is vested in the Board of Trustees and will be restricted to the recreation objectives of the project and no change in use or future development can take place without federal approval.

The objective of the St. Marks Trailhead proposal is to preserve and develop a turpentine depot site and structures for the interpretation of the historical use of the St. Marks Trail corridor and to provide support facilities for the St. Marks Trail. This project will be federally funded for $250,000. Title to the property is vested in the Board of Trustees and will be restricted to the recreation objectives of the project and no change in use or future development can take place without federal approval.

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

(See Attachment 16, Pages 1-15)

REQUEST: Issuance of a quitclaim deed to a 0.006 acre (244 square feet) parcel of privately-owned land lost as a result of artificial erosion.

COUNTY: Martin

APPLICANT: Norman P. Alexander and Carol J. Alexander

LOCATION: Section 22, Township 40 South, Range 42 East

CONSIDERATION: $1,839.76

STAFF REMARKS: The applicant is requesting to purchase lands lost as a result of the deteriorated condition of an existing bulkhead, the presence of adjacent bulkheads and secondary wave action constituting artificial erosion.

Staff has determined that all of the criteria in chapter 18-21.019(5), F.A.C. have been met. These include proof of ownership; documentation supporting the location of the mean high water line prior to and after artificial erosion; documentation demonstrating the adjacent shoreline bulkhead is armored; a legal description showing the quantity of land does not exceed one-half acre; the tax assessed value from the county property appraiser’s records; and a Department of Environmental Protection (DEP)/United States Army Corps of Engineers joint permit approving improvements at this site.

The land to be reclaimed is a historically privately-owned upland lot within a subdivided residential community. There are no apparent indications of any public easement previously existing at this site.

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 17, Pages 1-19)

REQUEST: Consideration of an application for a disclaimer for submerged lands beneath a dock encompassing 1,789 square feet or 0.041 acre, more or less.

COUNTY: Manatee

APPLICANT: Pier Point Homeowners Association, Inc.

LOCATION: Section 25, Township 34 South, Range 16 East

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

An aerial photograph dated 1940 shows the dock in existence. The dock is still in existence and is in current use.

Staff recommends that because the lands subject to this disclaimer are subject to the inalienable public trust under which the Grantor acquired and holds title to sovereignty lands, a notice be included in the disclaimer providing that, if at any time or for any reason, the lands described herein are no longer bulkheaded or filled-in or permanently improved, and said lands are no longer being used or intended to be used for the purposes contemplated by the Butler Act, Grantor shall have the right to reclaim all right, title and interest in and to said lands as part of the public trust lands.

The Department of Environmental Protection (DEP) is currently engaged in rulemaking to adopt language providing for such notice. The applicant has agreed to accept this language in the disclaimer rather than waiting for a conclusion of the rulemaking process.

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

(See Attachment 18, Pages 1-11)

REQUEST: Permission to publish a proposed rule related to disclaimers, quitclaim deeds, and certificates to clear title given by the Board of Trustees to applicants who qualify for such conveyances under the Butler Act and Chapter 253, Florida Statutes.

COUNTY: Statewide

STAFF REMARKS: On June 26, 1997, the Board of Trustees executed a disclaimer under the Butler Act to Support Terminals Operating Partnership, L.P. (Support Terminals), for the footprint of a pier, which had been determined by staff to be a permanent improvement under the Butler Act and case law construing that Act. The disclaimer instrument contained language making it subject to the inalienable Public Trust. It also contained the following language:

On July 3, 1997, Support Terminals filed a petition for administrative hearing with the Division of Administrative Hearings alleging that the above-stated language was an "agency statement" not adopted as a rule and the Board of Trustees’ reliance on it violated section 120.54(1), F. S. The petition demanded that the Board of Trustees not be permitted to rely on the agency statement and demanded attorney’s fees and costs. Support Terminals also filed a petition for administrative hearing with the Board of Trustees, alleging that its substantial interests were affected by the agency statement under section 120.569, F. S. Staff forwarded that petition to the Division of Administrative Hearings. Since the Board of Trustees was already in rulemaking on this rule (18-21.019, F.A.C., related to forms of applications), the Board of Trustees moved for abatement while the agency statement was addressed in rulemaking. Both cases have remained in abatement since July of 1997.

Staff analyzed the rule and the new Administrative Procedures Act (APA), and found that the new APA requires the Board of Trustees’ interpretation of the Butler Act to be adopted by rule. Therefore, a Notice of Rule Development was published in the Florida Administrative Weekly on November 26, 1997. Section 18-21.019, F.A.C., was promulgated in 1995, and minor revisions were made in 1996 and 1998. However, the rule was not updated to conform to common law since two appellate cases interpreting the Butler Act were still pending. In those cases, dredging of submerged navigable water bottoms was alleged to be a "permanent improvement" under the Butler Act. [See Board of Trustees of the Internal Imp. Trust Fund v. Key West Conch Harbor, Inc. 683 So. 144 (Fla. 3d DCA 1996); the second case, City of West Palm Beach v. Board of Trustees of the Internal Imp. Trust Fund, et al., Case No. 95-3813 (Fla. 4th DCA Aug. 27, 1997) remains on appeal.]

Staff drafted language for the rule, which it distributed at a public workshop on December 19, 1997. Many comments and three exhibits were received at the workshop which were made a part of the record. In response to those comments, several changes were made to the draft rule. There is likely to be continued controversy over the "notice" provision in the disclaimer form which states that if the lands are no longer filled-in, bulkheaded, or permanently

improved, and not used for the purposes intended by the Butler Act, the Board of Trustees shall have the right to reclaim all right, title and interest in those lands.

The amendments to subsection (1), applying to Butler Act disclaimers, provide that applications for disclaimers may be made for "permanent improvements" as well as for filled-in and bulkheaded lands; the standards and criteria, including definitions, upon which such applications will be evaluated for approval or denial; the exceptions to the rule; a revised application form; and a new form of disclaimer the Board of Trustees will issue if such applications are approved. The amendments to subsection (2), applying to quitclaim deeds under section 253.12(6), F. S., provide standards and criteria, including definitions, under which applications for quitclaim deeds will be evaluated for approval or denial; the exceptions to the rule; a revised application form; and a new form of quitclaim deed the Board of Trustees will issue if such applications are approved. The amendments to subsection (3), applying to certificates to clear title to filled formerly submerged lands filled prior to 1975, provide the standards and criteria, including definitions, upon which applications for certificates will be evaluated for approval or denial; the exceptions to the rule; a revised application form; and a new form of certificate the Board of Trustees will issue if such applications are approved. The amendments will also provide a revised application form and a new form of disclaimer for lands lost due to avulsion, and provide a revised application form and a new form of quitclaim deed for lands lost due to artificial erosion or artificial erosion and avulsion. It will conform the title of the rule to the content of it, and it will correct some minor and technical errors.

Staff believes that this revision will make this rule much more user friendly and will allow people to know whether they may be entitled to a disclaimer, quitclaim deed, or certificate by reading the rule. At the present time, standards and criteria are contained in the application forms and in case law. People often have to hire attorneys to read and interpret the case law on the Butler Act, Bulkhead Act, and Certificate Act to determine if they are eligible for a conveyance. Further, chapter 120 now requires all of this to be adopted by rule. (See ss. 120.52, 120.54, 120.56, 120.595, F. S.)

Support Terminals continues to object to any language it alleges to be "reversionary," and it has stated that it will likely file a challenge to the proposed rule once it is published. Other attorneys throughout the state also disagree with the Board of Trustees’ interpretation and may also oppose that portion of the rule. If this item is approved, publication of the proposed rule is scheduled for April 10, 1998.

(See Attachment 19, Pages 1-50)

REQUEST: Consideration of approval to publish: (1) a Notice of Proposed Rulemaking regarding amendments to chapter 18-21, F.A.C., that specify standards, criteria, and processing requirements for extended term, sovereignty submerged land leases, to add procedures for reviewing and taking action on applications for standard term leases, and to amend the methodology for calculating lease fees; and (2) a Notice of Proposed Rule Development followed by a Notice of Proposed Rulemaking on revisions to section 18-21.002, F.A.C., regarding the standards of chapter 18-21 to be used by staff and by the Board of Trustees itself when acting on applications to use sovereignty submerged lands.

On November 7, 1996, the Board of Trustees directed staff to: (1) make recommendations for the revision of the rules that address, at a minimum, the fees charged for the leases and easements, including those issued for public utilities; (2) justify the public benefit of extended term leases; and (3) explain the need and public benefit of special discounts. Regarding the first item, staff has not yet developed a recommendation, but will present one to the Board of Trustees at a later time. To address the second and third items, DEP staff has prepared two reports (attached).

The "Report on the Benefits of Extended Term Leases" evaluates the benefits and concerns of extended term leases in response to previously stated concerns that long term commitments of sovereignty submerged lands should not limit the Board of Trustees’ proprietary and fiduciary roles. Staff’s evaluation, as presented in the above report, is that those concerns are adequately addressed through the 1988 special lease conditions that are included in all extended term leases issued since that date. These conditions allow for extended term leases to be modified: to conform to adoption or revision of statutes, rules, and standards; to conform to adoption or revision of rules regarding assessment of lease fees; and to remove any structure declared to be a public nuisance. The conclusion in the report is that extended term leases provide a number of advantages to lessees, the Board of Trustees, staff, the public, local governments, and the environment. As part of the examination of materials to prepare the report, staff examined a survey of marina leases conducted by the state of California. That report found that, of 17 states who responded to the survey, only two (Louisiana and Florida) have a lease term of five years; the other states have lease terms ranging from 10 to 66 years.

The report on "Evaluation of the 30 Percent Discount" evaluates the need and public benefit of special discounts. Specifically, the report evaluates various options that have been or could be considered for eliminating or modifying the 30 percent discount that is currently available to any facility that is open to the public on a first-come, first-serve basis. This evaluation includes a summary of prior failed rulemaking efforts that attempted to eliminate the 30 percent discount. Staff recommends continuing the 30 percent discount only for docking facilities that rent wet slips to the general public. Staff believes that the original intent of the discount was to provide an incentive for docking facilities to remain open to the public, and to discourage conversion of such facilities to private uses such as yacht clubs. However, under current rule language, any facility that is open to a general class of public users receives the discount, whether or not the facility provides access for traditional public uses such as boating and fishing; examples of such facilities include restaurants that have a courtesy dock. Staff recommends that facilities that are not primarily engaged in promoting the public’s access to sovereignty submerged lands be excluded from receiving the 30 percent discount.

Based on DEP staff evaluation of the issues in those reports, it is recommended that chapter 18-21 be amended to formally adopt standards and criteria governing extended term leases. A draft of the proposed rule amendments is attached. Staff believes these amendments address the Board of Trustees’ concerns regarding long term commitments of sovereignty submerged lands, while providing significant benefits to lessees, staff, and the environment. These amendments are described below.

A Notice of Proposed Rule Development was published on February 14, 1997. The DEP conducted two public workshops on March 13 and 14, 1997, in Pinellas and Palm Beach Counties to present preliminary rule language and to gather comments and suggestions. Two follow-up public workshops were conducted on May 14 and 15, 1997, in Tallahassee and West Palm Beach to discuss the proposed rule and to receive public comments. The proposed rule incorporates public input received at those workshops.

These reports and a previous draft of the extended term lease rule were circulated to staff of the Joint Administrative Procedures Committee (JAPC), and the rule was noticed for the Board of Trustees’ meeting on August 28, 1997. JAPC staff expressed concerns that the rule draft was not specific enough, and that the rule draft standards and criteria were too discretionary. JAPC staff also voiced similar concerns with certain other existing provisions of chapter 18-21. On the other hand, the DEP became aware of concerns that the rule draft might limit the Board of Trustees’ options in considering whether to grant, deny, assign, or renew leases. Staff withdrew the item from the scheduled Board of Trustees’ meeting in an effort to reconcile these differences. The current draft of the rule amendments contains more specifics and particularity in an effort to address the concerns voiced by JAPC staff. To ensure that the Board of Trustees retains flexibility in its proprietary and fiduciary responsibilities in the management of sovereignty submerged lands, new language has been drafted, and is proposed to be added into section 18-21.002, F.A.C., "Scope and Effective Date" (attached) that will provide: (1) that staff to the Board of Trustees (the DEP and water management districts), when acting under a delegation of authority, must base their decisions on the specific

provisions and criteria of chapter 18-21 (other than those in subsection 18-21.002(2)); and (2) that when the Board of Trustees itself acts on applications to use sovereignty submerged lands, it shall have the ability to consider four additional public interest standards, including:

• the demonstrable environmental, social, and economic benefits and costs of the proposal;
• the impacts of the ultimate project and the purpose to be served by the proposal;
• the impact of the proposal on public health, safety, and welfare; and
• the applicant’s past record of compliance with statutes and rules relating to sovereignty submerged lands.

This drafted language has not been published as a Notice of Proposed Rule Development.

Upon approval by the Board of Trustees, a Notice of Proposed Rulemaking on Extended Term Leases will be published in the Florida Administrative Weekly. The notice will include an opportunity for a public hearing, which likely will be held in April 1998. Staff anticipates returning to the Board of Trustees for final rule adoption on June 9, 1998. In addition, a Notice of Proposed Rule Development on the proposed amendment to section 18-21.002 would be published in the Florida Administrative Weekly, followed by publication of a Notice of Proposed Rulemaking. That notice would include an opportunity for a public hearing. The date of the public hearing and anticipated Board of Trustees rule adoption on the section 18-21.002 language has not yet been scheduled.

(See Attachment 20, Pages 1-43)

REQUEST: Consideration of approval to publish a Notice of Proposed Rulemaking regarding amendments to chapter 18-21, F.A.C., that address the procedures, fees, forms of authorization, and standards applicable to the construction, operation, and removal of special events on sovereignty submerged lands.

Section 18-21.004, Management Policies, Standards, and Criteria, is being revised to:

• enable applications for special events to be made by persons who are not upland riparian owners and to eliminate minimum setback requirements from the upland owner’s riparian rights line; and
• to provide standards that minimize impacts to navigation, riparian rights, biological resources, and shoreline erosion.

Section 18-21.005, Procedures-Forms of Consent, is being modified to create the following types of authorizations for special events:

• Class I automatic consent of use would be granted, and no application would be required, for special events, such as boat races, whether or not they are revenue generating/income related: (1) that do not involve construction or reconfiguration of structures, (2) that involve preemption that is necessary for public safety, and (3) where the applicant has obtained, when required, a permit from the U.S. Coast Guard.
• Class II consent of use (written) is required if the event involves the construction of structures, is not revenue-generating, and either preempts 1,000 square feet or less of sovereignty submerged lands or preempts 1,000 square feet or less of sovereignty submerged lands for every 100 linear feet of shoreline.
• Class III single event lease is required if the activity does not qualify for a Class I or II authorization and the authorization is sought for one special event of not more than 30 days and involves the construction of no more than 50 slips or a preempted area of no more than 50,000 square feet.
• Class IV special events lease is required if an event does not qualify for a Class I, II, or III authorization, or the applicant requests authorization to conduct more than one event during a lease term of up to five years. An annual boat show likely would require this form of authorization.

However, special events that may be authorized by an existing lease will not require one of the above special event authorizations, provided that the existing lease document does not preclude the event and the income generated by the event is reported on the annual wet slip certification.

A new section 18-21.0082, Application for Special Event Authorizations, is proposed which specifies the application requirements for special event authorizations. The procedures are nearly identical to the existing consent of use and lease application requirements with four significant differences:

• in recognition that many special events will be conducted by entities who do not own the riparian uplands, a "Consent for Special Event" form has been developed for the upland owner to grant permission to the applicant to conduct the temporary special event involving the construction of structures within the upland owner’s riparian area;
• a detailed sketch, instead of a survey, would be acceptable for a special event lease;
• applicants for Class III and Class IV authorizations will be required to publish notice of a special event in a local newspaper; and
• to ensure that the Board of Trustees can remove unauthorized structures or repair damage resulting from a special event conducted by a non-riparian entity, financial

When more than one event is authorized under a Class IV special events lease, an annual certification would be required, which would include:

• an updated schedule of dates for subsequent special events;
• the names of any new property owners within 500 feet of the area preempted by the event;
• a requirement to provide new Consent for Special Event forms from newly affected riparian upland owners;
• a statement of compliance with terms and conditions of the lease;
• an identification of changes in the size, number or design of the structures, or changes of use; and
• an identification of changes in the numbers, sizes, drafts, and types of vessels associated with the event.

The draft rule provides for reconfigurations of structures within the boundaries of a Class III single event lease or Class IV special events lease, provided the reconfiguration avoids resources identified in the event authorization, thus eliminating a need to obtain a new or modified authorization.

Staff considered several different fee structures for special events, including applying a gross rental income rate of greater than seven percent, or increasing the base square footage rate. However, staff was unable to collect detailed data on the direct and indirect costs and profit margins associated with conducting a special event that would justify any changes to the fee assessment methodology described above. Section 253.03(11), F.S., provides that the Board of Trustees may assess and collect reasonable fees for state lands authorizations, commensurate with the actual costs. Staff is of the opinion that the costs associated with special events are similar to those associated with processing and administering other leases of sovereignty submerged lands, such as marina leases. Therefore, staff recommends applying a similar fee structure to special events as is currently applied to other sovereignty submerged lands leases.

Upon approval by the Board of Trustees, a Notice of Proposed Rulemaking will be published in the Florida Administrative Weekly. The notice will include an opportunity for a public hearing which will be held on or before April 17, 1998. Staff anticipates returning to the Board of Trustees for final rule adoption on June 9, 1998.

(See Attachment 21, Pages 1-16)

Submittal of the minutes of the December 16, 1997 Cabinet meeting.

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.

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. 4-117-0450AM-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 an application to modify one of these banks, including additional 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 modification to that 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 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 its 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. The SJRWMD Governing Board’s approval of this mitigation bank permit is conditioned upon the Board of Trustees approving the use of 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 (DEP) 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.

Subsequent to the SJRWMD Governing Board action on the permit, SJRWMD and DEP staff have negotiated with the applicant regarding appropriate compensation to be paid the Board of Trustees for the use of sovereign submerged lands. A recommendation regarding compensation is presented in the staff report on each project.

This application was pending at the time that the moratorium was approved by the Board of Trustees. 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 modify and enlarge the North Dike bank by 442 acres with the restoration of additional St. Johns River

floodplain marsh from existing agriculturally-altered land in an area known as South Dike. Figure 1 shows the location of the South Dike 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 its 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. 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 DEP’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.

Subsequent to the SJRWMD Governing Board action on the permit, SJRWMD and DEP staff have negotiated with the applicant regarding appropriate compensation to be paid the Board of Trustees for the use of sovereign submerged lands. A recommendation regarding compensation is presented in the staff report on each project.

Although this application was not pending at the time that the Board of Trustees established the moratorium, the project was being planned prior to the moratorium and the first phase of this bank was pending at the time that the moratorium was imposed. 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.

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

Board of Trustees

lands. All of the mitigation bank projects described above 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 follows.

Staff recommends that this project be excluded from the moratorium.

Staff recommends that this project be excluded from the moratorium.

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. 4-117-0450-A-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

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.

In accordance with section 253.002, F.S., and the rules of the Board of Trustees, the St. Johns River Water Management District (SJRWMD) 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 SJRWMD, 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), in letters from Rod Maddox dated December 17, 1996 and August 13, 1997 (Exhibit 2), has established a safe upland line on this parcel based upon long term stage data for the St. Johns River. The approximate boundary of the safe upland line is shown on Exhibit 3. 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 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.

1. Exclude cattle which are currently grazing on the property. Record a general warranty deed in favor of the Board of Trustees for the areas waterward of the safe upland line, including the area within the mitigation bank and the area waterward of the dike that is claimed by Lee Ranch, as depicted on Exhibit 3. 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 acres interior and 18.41 acres 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.

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.

Section 18-21.001(5), F.A.C., states the intent of the Board of Trustees to seek just compensation for the use of state-owned lands for private profit-making purposes and section 18-21.004(1)(c), F.A.C., provides that equitable compensation shall be required for leases and easements which generate revenues, moneys or profits for the user.

Prior to the sale of any mitigation credits, the applicant is required to provide to the Board of Trustees a general warranty deed for all of the lands claimed by Lee Ranch lying east or waterward of the safe upland line as established by DEP, including the lands within the mitigation bank and the lands waterward of the dike that are claimed by Lee Ranch, as depicted on Exhibit 3. Exhibit 3 contains a map depicting the approximate boundary of those lands which the applicant proposes to deed to the Board of Trustees, a legal description for Lee Ranch and a legal description for the lands to be deeded to the Board of Trustees. The resolution of title issues would result in an avoided cost to the state of $200,000 to $500,000, which is the estimated costs of conducting an ordinary high water survey and other costs of litigation. In addition to clearing title to the lands considered to be sovereign, this project will involve the expenditure of over $1,400,000 for restoration of the historic floodplain wetland system. These benefits should be considered a base fee, in addition to which cash compensation is proposed as follows.

Of the 338 mitigation credits for this mitigation bank permit, 203 credits are for restoration of sovereign submerged lands. In the Pine Island Mitigation Bank case, the Board of Trustees received seven percent of the gross revenues as a fee for the use of sovereign submerged lands. This precedent was used as a starting point for negotiations with the applicant. However, there is substantial uncertainty in this case regarding the market for mitigation credits and the profitability of the project. Should market conditions drive credit prices below $10,000, the project could lose money. Should market conditions allow Ecobank to sell credits for more than $20,000, they should make very substantial profits. Therefore, to address the uncertainty regarding market conditions and the profitability of this project, staff is recommending a sliding scale fee schedule that varies based upon the sales price of the credits.

The sliding scale fee schedule allows Ecobank to make a profit, if this venture is capable of making a profit, and allows the Board of Trustees an equitable share in profits generated from the use of state lands. If the project has little or no profits, the Board of Trustees would not receive substantial cash compensation, but would have the lands restored and would have the Lee Ranch drop its claim to state lands. The resolution of title issues on this property would result in avoided costs of up to $500,000 for the state (estimate for North and South Dike projects combined). These costs would include the costs of conducting and ordinary high water survey and legal fees associated with a quiet title action. The construction and management costs for the restoration work are estimated to be $1,400,000 for the combined North and South Dike projects. If the project makes a good profit (credit prices between $15,000 and $20,000) the Board of Trustees would receive about seven percent of the gross revenue for credits associated with restoration of state lands and should the project make extraordinary levels of profit (credit prices > $20,000 each), the Board of Trustees would receive additional compensation up to 14 percent of the gross revenue associated with state land credits.

The first major release of credits (68.8 credits) is for the recording of conservation easements and exclusion of cattle from the bank lands. Since these credits do not involve any restoration work on sovereign lands, but rather the preservation by conservation easement of uplands, no fee is required associated with these 68.8 credits. This should also help to reduce the uncertainty associated with the project and allow Ecobank to recover some of its costs for land and construction. For the remaining 269.2 credits, it is recommended that Ecobank pay the Board of Trustees a variable fee based on the sales price of the credits as follows (Note that five percent of 269.2 credits is equivalent to seven percent of 203 credits):

Credit sales price Fee percent of gross revenue* Fee per credit

$10,000 0 0

$15,000 5 $750

$20,000 5 $1,000

$25,000 7.5 $1,875

$30,000 and above 10 $3,000 and up

*For credit prices which fall between figures in the left hand column, straight line interpolation of fee percent of gross revenue should be utilized, for example, for a credit sales price of $12,500 dollars, the fee percent of gross revenue would be 2.5 percent.

Should Ecobank enter into any agreement to sell multiple credits for different prices, then the required fee for those credits shall be based upon the average price and revenue of all of the credits sold under such an agreement. For example, should Ecobank sell one credit for $1,000,000, with an agreement to sell 49 future credits for $1 each, the actual sales price of the 49 credits would be considered to be $20,001 per credit, which is the average for the 50 credits.

Pursuant to section 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.

Although the applicant could dispute the state’s ownership of the lands waterward or east of the safe upland line as depicted on Exhibit 3, they have offered to relinquish any claim to these lands if they can secure authorization to construct the mitigation bank.

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.

(See Attachment 3, Pages 1-17)

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 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 dated December 17, 1996 from Rod Maddox of the DEP attached hereto as Exhibit 2.

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 dated December 17, 1996, attached as Exhibit 2.

2. Prior to undertaking any construction or selling any mitigation credits, Ecosystems Land Mitigation Bank II Corporation must have a general warranty deed executed and recorded conveying to the Board of Trustees all lands within Lee Ranch located waterward (east) of the safe upland line depicted on Exhibit 3, including the lands within the mitigation bank and the lands waterward of the dike that are claimed by Lee Ranch. This general 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. Acceptance by the Board of Trustees of the general warranty deed shall not be an acknowledgment of the asserted claim by Lee Ranch to ownership of sovereignty submerged lands.

3. For each mitigation credit sold, except for the first 68.8 credits, Ecosystems Land Mitigation Bank II Corporation shall pay a fee for the use of sovereign submerged lands based upon the following schedule.

Credit sales price Fee as percent of gross revenue* Fee per credit

$10,000 0 0

$15,000 5 $750

$20,000 5 $1,000

$25,000 7.5 $1,875

$30,000 and above 10 $3,000 and up

*For credit prices which fall between figures in the left hand column, straight line interpolation of fee percent of gross revenue shall be utilized, for example, for a credit sales price of $12,500 dollars, the fee percent of gross revenue would be 2.5 percent.

4. Should Ecosystems Land Mitigation Bank II Corporation enter into any agreement to sell multiple credits for different prices, then the required fees to the Board of Trustees shall be based upon the average price and revenue of all of the credits sold under such an agreement. For example, should Ecosystems Land Mitigation Bank II Corporation sell one credit for $1,000,000, with an agreement to sell 49 future credits for $1 each, the Board of Trustees would consider the actual sales price of the 49 credits to be $20,001 per credit, which is the average for the 50 credits.

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. 4-117-0450AM-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

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.

In accordance with section 253.002, F.S., and the rules of the Board of Trustees, the St. Johns River Water Management District (SJRWMD) 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 SJRWMD, 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 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), in letters from Rod Maddox dated December 17, 1996 and August 13, 1997 (Exhibit 2), has established a safe upland line on this parcel based upon long term stage data for the St. Johns

River. The approximate boundary of the safe upland line is shown on Exhibit 3. 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 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.

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.

1. Exclude cattle which are currently grazing on the property. Record a general warranty deed in favor of the Board of Trustees for the areas waterward of the safe upland line, including the area within the mitigation bank and the area waterward of the dike that is claimed by Lee Ranch, as depicted on Exhibit 3. 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 acres interior and 11.95 acres 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.

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

Section 18-21.001(5), F.A.C., states the intent of the Board of Trustees to seek just compensation for the use of state-owned lands for private profit-making purposes and section 18-21.004(1)(c), F.A.C., provides that equitable compensation shall be required for leases and easements which generate revenues, moneys or profits for the user.

Prior to the sale of any mitigation credits, the applicant is required to provide to the Board of Trustees a general warranty deed for all of the lands claimed by Lee Ranch lying east or waterward of the safe upland line as established by DEP, including the lands within the mitigation bank and the lands waterward of the dike that are claimed by Lee Ranch, as depicted on Exhibit 3. Exhibit 3 contains a map depicting the approximate boundary of those lands which the applicant proposes to deed to the Board of Trustees, a legal description for Lee Ranch and a legal description for the lands to be deeded to the Board of Trustees. The resolution of title issues would result in an avoided cost to the state of $200,000 to $500,000, which is the estimated costs of conducting an ordinary high water survey and other costs of litigation. In addition to clearing title to the lands considered to be sovereign, this project will involve the expenditure of over $1,400,000 for restoration of the historic floodplain wetland system. These benefits should be considered a base fee, in addition to which cash compensation is proposed as follows. (Note: These costs are the combined costs for the North and South Dike projects.)

Of the 431.1 mitigation credits for this mitigation bank permit, 243.2 credits are for restoration of sovereign submerged lands. In the Pine Island Mitigation Bank case, the Board of Trustees received seven percent of the gross revenues as a fee for the use of sovereign submerged lands. This precedent was used as a starting point for negotiations with the applicant. However, there is substantial uncertainty in this case regarding the market for mitigation credits and the profitability of the project. Should market conditions drive credit prices below $10,000, the project could lose money. Should market conditions allow Ecobank to sell credits for more than $20,000, they should make very substantial profits. Therefore, to address the uncertainty regarding market conditions and the profitability of this project, staff is recommending a sliding scale fee schedule that varies based upon the sales price of the credits.

The sliding scale fee schedule allows Ecobank to make a profit, if this venture is capable of making a profit, and allows the Board of Trustees an equitable share in profits generated from the use of state lands. If the project has little or no profits, the Board of Trustees would not receive substantial cash compensation, but would have the lands restored and would have the Lee Ranch drop its claim to state lands, as described above. If the project makes a good profit (credit prices between $15,000 and $20,000) the Board of Trustees would receive about seven

percent of the gross revenue for credits associated with restoration of state lands and should the project make extraordinary levels of profit (credit prices > $20,000 each), the Board of Trustees would receive additional compensation up to 14 percent of the gross revenue associated with state land credits.

The first major release of credits (84.5 credits) is for the recording of conservation easements and exclusion of cattle from the bank lands. Since these credits do not involve any restoration work on sovereign lands, but rather the preservation by conservation easement of uplands, no fee is required associated with these 84.5 credits. This should also help to reduce the uncertainty associated with the project and allow Ecobank to recover some of its costs for land and construction. For the remaining 346.6 credits, it is recommended that Ecobank pay the Board of Trustees a variable fee based on the sales price of the credits as follows (Note that five percent of 346.6 credits is equivalent to seven percent of 243.2 credits):

Credit sales price Fee percent of gross revenue* Fee per credit

$10,000 0 0

$15,000 5 $750

$20,000 5 $1,000

$25,000 7.5 $1,875

$30,000 and above 10 $3,000 and up

*For credit prices which fall between figures in the left hand column, straight line interpolation of fee percent of gross revenue should be utilized, for example, for a credit sales price of $12,500 dollars, the fee percent of gross revenue would be 2.5 percent.

Should Ecobank enter into any agreement to sell multiple credits for different prices, then the required fee for those credits shall be based upon the average price and revenue of all of the credits sold under such an agreement. For example, should Ecobank sell one credit for $1,000,000, with an agreement to sell 49 future credits for $1 each, the actual sales price of the 49 credits would be considered to be $20,001 per credit, which is the average for the 50 credits.

Pursuant to section 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.

Although the applicant could dispute the state’s ownership of the lands waterward or east of the safe upland line, as depicted on Exhibit 3, they have offered to relinquish any claim to these lands if they can secure authorization to construct the mitigation bank.

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.

(See Attachment 4, Pages 1-17)

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 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 dated August 13, 1997 from Rod Maddox of the DEP attached hereto as Exhibit 2.

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 dated August 13, 1997, attached as Exhibit 2.

2. Prior to undertaking any construction or selling any mitigation credits, Ecosystems Land Mitigation Bank II Corporation must have a general warranty deed executed and recorded conveying to the Board of Trustees all lands within Lee Ranch located waterward (east) of the safe upland line, depicted on Exhibit 3, including the lands within the mitigation bank and the lands waterward of the dike that are claimed by Lee Ranch. 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. Acceptance by the Board of Trustees of the general warranty deed shall not be an acknowledgment of the asserted claim by Lee Ranch to ownership of sovereignty submerged lands.

3. For each mitigation credit sold, except for the first 84.5 credits, Ecosystems Land Mitigation Bank II Corporation shall pay a fee for the use of sovereign submerged lands based upon the following schedule

Credit sales price Fee as percent of gross revenue * Fee per credit

$10,000 0 0

$15,000 5 $750

$20,000 5 $1,000

$25,000 7.5 $1,875

$30,000 and above 10 $3,000 and up

* For credit prices which fall between figures in the left hand column, straight line interpolation of fee percent of gross revenue shall be utilized, for example, for a credit sales price of $12,500 dollars, the fee percent of gross revenue would be 2.5 percent.

4. Should Ecosystems Land Mitigation Bank II Corporation enter into any agreement to sell multiple credits for different prices, then the required fees to the Board of Trustees shall be based upon the average price and revenue of all of the credits sold under such an agreement. For example, should Ecosystems Land Mitigation Bank II Corporation sell one credit for $1,000,000, with an agreement to sell 49 future credits for $1 each, the Board of Trustees would consider the actual sales price of the 49 credits to be $20,001 per credit, which is the average for the 50 credits.