The Governor and Cabinet - Florida Department of State

AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

JULY 25, 2000

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Item 1 Minutes

Submittal of the Minutes from the June 13, 2000 Cabinet Meeting

(See Attachment 1, Pages 1-20)

RECOMMEND ACCEPTANCE

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Item 2 Sarasota Yacht Club Recommended Consolidated Intent

REQUEST: Consideration of an application for a modification of a five-year sovereignty submerged lands lease for an existing private yacht club docking facility to increase the number of wetslips from 84 to 108 and increase the preempted area from 182,086 square feet to 244,137 square feet, more or less.

COUNTY: Sarasota

Lease No. 580578403

Application No. 58-01620873-001

APPLICANT: Sarasota Yacht Club

LOCATION: Section 26, Township 36 South, Ranges 17 East, in Sarasota Bay, Class II Waters, within the local jurisdiction of the city of Sarasota

Aquatic Preserve: No

Manatee Area idle/slow speed/caution zone: No Outstanding Florida Waters: Yes

CONSIDERATION: $30,716.57 as the initial lease fee computed at the base rate of $0.1183 per square foot, including the 25 percent surcharge payment for the additional area. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable.

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

Approval by the Board of Trustees is requested only for those aspects of the activity which require authorization to use sovereignty submerged lands. If the Board of Trustees approves the request to use sovereignty submerged lands, and the activity also qualifies for an environmental resource permit, the "Consolidated Notice of Intent" will be issued and will contain general and specific conditions. In the event the Board of Trustees denies the use of sovereignty submerged lands, whether or not the activity otherwise qualifies for an

Board of Trustees

Agenda – July 25, 2000 Page Two

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Item 2, cont.

environmental resource permit, the DEP will issue a "Consolidated Notice of Denial" for both the environmental resource permit and the authorization to use sovereignty submerged lands.

The lessee is proposing to expand the existing 84-slip, private yacht club docking facility by constructing 24 additional slips, thereby creating a 108-slip facility. The initial lease was approved by the Board of Trustees on October 18, 1983. The most recent modification to the existing sovereignty submerged lands lease, approved under delegation of authority by the DEP on February 11, 1997, incorporated 142,986 square feet of registered, grandfathered structures into the existing 39,100 square feet, for a total lease area of 182,086 square feet. The proposed addition is 62,051 square feet, for a new total lease area of 244,137 square feet.

The upland facility consists of a clubhouse and dining room. The existing docking facility contains three docks extending an average of 280 feet into the waterbody. The proposed construction over sovereignty submerged lands includes: three 97-foot-long by 10-feet-wide walkout extensions from the existing docks; three 120-foot-long by 10-foot-wide terminal "Ts" at the end of each dock; and two 40-foot-long by 3-foot-wide catwalks at each dock.

The proposed project will have no impact on submerged resources. In addition, the water depths at the site of the proposed expansion are greater than -11 feet at mean low water. The types of vessels using the facility are recreational, ranging from 45 to 60 feet in length with a 4-foot draft.

The DEP environmental resource permit requires sewage pumpout facilities, prohibits liveaboards at the proposed slips (original permit does not prohibit liveaboards for the existing slips), and authorizes fueling facilities. The recommendations of the Florida Fish and Wildlife Conservation Commission regarding manatees have been addressed in the environmental resource permit.

This item is being presented to the Board of Trustees for consideration because the proposed expansion of slips exceeds the 10 percent delegation of authority threshold, pursuant to section 18-21.0051(2)(a), F.A.C.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S.; however, the Department of Community Affairs (DCA) determined that the plan was not in compliance. In accordance with the compliance agreement between DCA and the local government, an amendment has been adopted which brought the plan into compliance. The proposed action is consistent with the adopted plan as amended according to a letter received from the city of Sarasota.

(See Attachment 2, Pages 1-22)

RECOMMEND APPROVAL SUBJECT TO PAYMENT OF $30,716.57

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Item 3 Support Terminals Operating Partnership, Inc. Recommended Consolidated Intent

REQUEST: Consideration of an application for (1) a five-year sovereignty submerged lands lease containing 106,426 square feet, more or less, for a berthing area and mooring dolphins at an existing commercial petroleum storage and distribution facility; (2) authorization to dredge 800 cubic yards of sovereignty materials; and (3) waiver of the severance fee.

Board of Trustees

Agenda – July 25, 2000 Page Three

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Item 3, cont.

COUNTY: Duval

Lease No. 162572119

Application No. 16-164433-001-ES

APPLICANT: Support Terminals Operating Partnership, L.P.

LOCATION: Section 50, Township 01 South, Range 27 East, in the St. Johns River, Class III Waters, within the local jurisdiction of the city of Jacksonville

Aquatic Preserve: No

Outstanding Florida Waters: No

Manatee Aggregation Area: No

Manatee Protection Speed Zone: No

CONSIDERATION: $15,737.75, representing the initial lease fee computed at the base rate of $0.1183 per square foot and including the 25 percent surcharge payment. The project qualifies for a waiver of the severance fees pursuant to 18-21.011(3)(c), F.A.C. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable.

The applicant operates an existing commercial petroleum storage and distribution facility on the St. Johns River in Duval County. The applicant is requesting a sovereignty submerged lands lease for a large ship berthing area adjacent to a terminal platform and the construction of four mooring dolphins and two breasting dolphins. Four existing mooring dolphins will be removed and replaced by the new dolphins. The project also involves the dredging of approximately 800 cubic yards of sovereignty materials from the berthing area. The dredged material will be disposed of at Bartram Island, a Jacksonville Port Authority publicly-owned spoil disposal island, and qualifies for a waiver of the severance fee pursuant to 18-21.011(3)(c), F.A.C.

The existing 12,425.87-square-foot dock was granted a Board of Trustees’ disclaimer [No. 29816(4546-16)], pursuant to the Butler Act, for the footprint of the dock. The existing dock

Board of Trustees

Agenda – July 25, 2000 Substitute Page Four

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Item 3, cont.

had five associated mooring dolphins. The legal description in the disclaimer did not include these associated mooring dolphins. Portions of the existing dock and two of the dolphins were damaged and one dolphin was destroyed in a 1990 maritime accident. The applicant is proposing to rebuild the dock in its existing footprint on the disclaimed lands. The existing mooring dolphins will be removed and replaced with a total of six new dolphins. The new dolphins will be located outside of the disclaimed lands and are included in the proposed lease area and as part of this consideration.

The applicant was issued a wetland resource permit, 162572119, on September 9, 1995 to expand the dock and barge mooring areas and dredge approximately 5,700 cubic yards of material. The wetland resource permit expires on September 9, 2000. The activities authorized in this permit were never undertaken, pending the outcome of the application for the Butler Act disclaimer and the necessary authorization to use sovereignty submerged lands. Since that time, the applicant has reduced the scope of activities at the dock by eliminating the previously permitted barge mooring areas and reducing the dredging area. The revised proposal will now provide mooring for one large vessel along the terminal platform.

Although the wetland resource permit was issued, the sovereign submerged lands lease has not been granted. Therefore, the applicant cannot construct the structures approved in the wetland resource permit. Therefore, the environmental resource permit and sovereignty submerged lands authorization, if approved, will supercede the issued wetland resource permit.

The DEP environmental resource permit does not authorize sewage pumpout and fueling facilities or liveaboards. The upland fuel storage and distribution operations are subject to federal and locally delegated City of Jacksonville regulations for fuel containment and spill prevention and response plans. The recommendations of the Florida Fish and Wildlife Conservation Commission regarding protection of manatees are addressed in the permit. The project was required to be noticed pursuant to section 253.115(5), F.S. However, there are no property owners within 500 feet of the proposed lease.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S.; however, the Department of Community Affairs (DCA) determined that the plan was not in compliance. In accordance with a compliance agreement between the DCA and the local government, an amendment has been adopted which brought the plan into compliance. The proposed dock is consistent with the adopted plans amended according to a letter received from the City of Jacksonville dated November 21, 1995.

(See Attachment 3, Pages 1-22)

RECOMMEND APPROVAL SUBJECT TO PAYMENT OF $15,737.75

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Substitute Item 4 Hawkins Avenue Corporation/Wood-Hopkins Contracting Co. Lease

REQUEST: Consideration of an application for (1) a five-year sovereignty submerged land lease containing 129,084 square feet, more or less, for a proposed commercial/industrial docking facility; (2) authorization for the severance of 17,205 cubic yards of sovereign material; and (3) authorization for the placement of 495 linear feet of bulkhead at the approximate mean high water line (MHWL).

Board of Trustees

Agenda – July 25, 2000 Substitute Page Five

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Substitute Item 4, cont.

COUNTY: Duval

BOT No. 162245689

Application No. 16-147715-004-DF

APPLICANT: Hawkins Avenue Corporation, a Georgia corporation

(d/b/a Wood-Hopkins Contracting Company)

LOCATION: Section 24, Township 01 South, Range 27 East, in the St. Johns River, Class III Waters, within the local jurisdiction of the city of Jacksonville

Aquatic Preserve: No

Outstanding Florida Waters: No

Manatee Aggregation Area: No

Manatee Protection Speed Zone: Yes, Slow Speed Minimum Wake within 300 feet of shore, Channel Exempt.

CONSIDERATION: $57,799.55, representing (1) $19,088.30 as the initial lease fee computed at the base rate of $0.1183 per square foot and including the initial 25 percent surcharge payment and (2) $38,711.25 for the severance of sovereign material computed at the rate of $2.25 per cubic yard pursuant to section 18-21.011(3)(a)2, F.A.C. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable.

STAFF REMARKS: The applicant is proposing to construct a commercial/industrial docking facility to be used in conjunction with a proposed upland marine contracting company. Wood-Hopkins Marine Contracting Company specializes in building bridges, constructing roll-on/roll-off facilities, and the repair and maintenance of vessels, along with other related marine contracting activities. Proposed upland activities include the construction of two buildings, a parking lot, an access road, and rail construction access. Activities on sovereignty submerged land include the construction of 495 linear feet of bulkhead at the approximate MHWL, the dredging of 2.53 acres of river bottom, and the installation of a 350-foot-long by 75-foot-wide concrete dock.

The applicant is proposing to dredge 17,205 cubic yards of sovereign material to create water depths sufficient for mooring tugboats and barges. Berths (mooring and maneuvering areas) will be dredged to a depth of -20 feet NGVD. Depths currently range from +6 feet NGVD at the proposed bulkhead location to -20 feet NGVD at the terminus of the proposed dock. The spoil will be used for backfill landward of the proposed bulkhead.

Wood-Hopkins Contracting Company, a subsidiary of the applicant, was issued permits (16-16318-2E and 16-16319-2E) from the former Department of Environmental Regulation (DER) for the construction of a similar project on December 9, 1979 and July 27, 1979, respectively. A sovereignty submerged land lease (No. 160163182) was approved by the former Department of Natural Resources (DNR) on December 17, 1979, that authorized the preemption of 53,702 square feet of sovereignty lands. However, the construction was delayed, the permits expired, and the sovereignty submerged land lease was cancelled on December 7, 1988.

The applicant submitted a new DER permit application for the current proposed project on November 16, 1992. The DNR began to receive preliminary submerged land lease information from the applicant on January 26, 1993. On February 24, 1993, the applicant received a letter from the Department of Community Affairs (DCA) advising that the applicant’s property, a 37-acre parcel including the project site, was within the Blount Island/Dames Point Areawide Development of Regional Impact (DRI) proposed by the City of

Board of Trustees

Agenda – July 25, 2000 Substitute Page Six

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Substitute Item 4, cont.

Jacksonville (City) with the Jacksonville Port Authority (JPA) serving as agent for the City. An Application for Development Approval (ADA) had been filed and was pending review and adoption by City Council. Pursuant to section 380.06(5), F.S., no development of any area covered by the Blount Island/Dames Point Areawide ADA could be undertaken until the development order for that project became effective or an agreement with DCA was established. The submerged lands lease file was placed in an "inactive" status on May 24, 1993 until the DRI review could be completed and submerged lands lease surveys submitted.

The DEP wetland resource permit for the current proposed project was issued to Wood-Hopkins Contracting Company on June 30, 1994. On June 16, 1999, the permit (No. 16-147715-002-DF) was modified to extend the term of the permit from five years to ten years. The permit (No.16-147715-003-DF) was transferred to the applicant on July 7, 1999. The applicant received a "Clearance Letter" from DCA on February 14, 2000 indicating that the Wood-Hopkins development is not required to undergo DRI review. On April 24, 2000, the permit was modified to relocate the proposed dock 25 feet to the north in order to provide a 25-foot setback of the lease boundary from the south riparian line.

The DEP modified wetland resource permit requires sewage pumpout facilities, prohibits liveaboards, and prohibits over-water fueling facilities. The recommendations of the Fish and Wildlife Conservation Commission regarding protection of manatees have been addressed in the specific conditions of the wetland resource permit and as special lease conditions of the lease. There are no seagrasses or other significant submerged biological resources at the site. The project was noticed, pursuant to section 253.115, F.S.

(See Attachment 4, Pages 1-6)

RECOMMEND DEFERRAL

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Item 5 Hurlburt Field Special Operations Center/USAF Recommended Consolidated Intent

REQUEST: Consideration of an application for authorization of a 20-year sovereignty submerged lands management agreement involving (1) placing fill onto sovereignty submerged lands to create a 4.3 acre emergent marsh mitigation site, including the placement of a 1,405-foot-long riprap, perimeter breakwater; and (2) after-the-fact authorization for the filling of sovereignty submerged lands for two previously created emergent marsh mitigation sites, with perimeter breakwaters, covering 3.4 acres and 1.2 acres, respectively.

COUNTY: Okaloosa

Application No. 46-0151212-002-DF

BOT No. 46-0221531

Management Agreement No. MA-46-131

Board of Trustees

Agenda – July 25, 2000 Page Seven

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Item 5, cont.

APPLICANT: United States Air Force, Hurlburt Field Special Operations Center

LOCATION: Section 13, Township 02 South, Range 25 West, in Santa Rosa Sound, Class III Waters, within the local jurisdiction of Okaloosa County

Outstanding Florida Water: No

Aquatic Preserve: No

CONSIDERATION: No fees required for the Management Agreement at this time.

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

Approval by the Board of Trustees is requested only for those aspects of the activity which require authorization to use sovereignty submerged lands. If the Board of Trustees approves the request to use sovereignty submerged land and the activity also qualifies for a wetland resource permit, the Consolidated Notice of Intent will be issued and will contain general and specific conditions. In the event the Board of Trustees denies the use of sovereignty submerged lands, whether or not the activity otherwise qualifies for a wetland resource permit, the DEP will issue a "Consolidated Notice of Denial" for both the wetland resource permit and the authorization to use sovereignty submerged land.

The applicant proposes to place 18,235 cubic yards of fill onto 187,308 square feet (4.3 acres) of sovereignty submerged lands to create an emergent marsh mitigation site, including the placement of 2,290 cubic yards of riprap around 1,405 linear feet of the perimeter of the marsh as a protective breakwater. The marsh will be a modification to the DEP permit no. DF-0151212-001-46, which involved impacts to 29.14 acres of jurisdictional wetlands, resulting from the filling of freshwater wetlands to allow for expansion of various special operations facilities. The marsh will consist of swordgrass (Scirpus americanus), saltmeadow cordgrass (Spartina patens), smooth cordgrass (Spartina alterniflora), and black needle rush (Juncus roemerianus) planted on three-foot centers. A monitoring plan is proposed, which includes quantitative and qualitative monitoring of the marsh to ensure its success. The surface of the proposed marsh will be raised to 0.5 feet below the level of the mean high water line (MHWL). The proposed project will not pose a hazard to navigation and will be clearly marked by United States Coast Guard (USCG) approved navigation markers. The applicant also requests after-the-fact authorization for the previous construction of two existing emergent marsh areas that were required by the DEP as mitigation for other fill projects. These mitigation marsh sites are adjacent to the proposed project site and will be included in the management agreement. One site consist of 16,997 cubic yards of fill placed onto 148,104 square feet (3.4 acres) of sovereignty submerged lands, including the placement of 997 cubic yards of riprap as a perimeter breakwater. This site extends 203 feet waterward of the MHWL. The second site involved the placement of 8,609 cubic yards of fill onto 52,272

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Agenda – July 25, 2000 Substitute Page Eight

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Item 5, cont.

square feet (1.2 acres) of sovereignty submerged lands, including the placement of 609 cubic yards of riprap as a perimeter breakwater. This site extends 252 feet waterward of the MHWL. Both of these previously created marshes are very successful and support a diverse and productive fauna and flora. These existing marsh mitigation sites do not pose a danger to navigation.

The applicant owns all upland property within five hundred feet of the proposed creation area, therefore, noticing was not conducted.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S.; however, the Department of Community Affairs (DCA) determined that the plan is not in compliance. In accordance with the compliance agreement between DCA and the local government, an amendment has been adopted which brought the plan into compliance. The proposed action is consistent with the adopted plans amended according to a letter received from the Okaloosa County Board of County Commissioners.

(See Attachment 5, Pages 1-25)

RECOMMEND APPROVAL SUBJECT TO THE SPECIAL APPROVAL CONDITION AND MANAGEMENT PLAN

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Substitute Item 6 Brickell Key Marina/Swire Properties Recommended Consolidated Intent

REQUEST: Consideration of an application for a five-year sovereignty submerged lands lease containing 204,861 square feet, more or less, for a proposed private use, access restricted commercial marina.

COUNTY: Miami-Dade

Application No. 13-0132744-001

APPLICANT: Swire Properties, Inc.

d/b/a Brickell Key Marina

LOCATION: Section 07, Township 54 South, Range 42 East, in Biscayne Bay, Class III Outstanding Florida Waters, within the local jurisdiction of the City of Miami

Aquatic Preserve: Biscayne Bay, Resource Protection Area 1

Manatee Area slow speed zone.

Outstanding Florida Waters: Yes, Class III

STAFF REMARKS: The Board of Trustees authorized a rule amendment on September 14, 1995, to "link" the two processes of regulatory and proprietary reviews and authorizations. The rule became effective October 12, 1995. As a result of this linkage, the recommended Department of Environmental Protection (DEP) regulatory permit decision and the recommendation to the Board of Trustees on the proprietary authorization are contained in one document, the "Consolidated Notice of Denial," which is attached. The attached consolidated intent contains a recommendation for denial of a permit under Part IV of chapter 373, F.S., and a recommendation for denying authorization to use sovereignty submerged lands under chapter 253 and 258, F.S., for the activity described therein. This recommendation is provided to the Board of Trustees pursuant to section 373.427(2), F.S. A description of the

Board of Trustees

Agenda – July 25, 2000 Substitute Page Nine

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Substitute Item 6, cont.

requested activity is provided in Section I, "Description of the Proposed Activity." The specific basis for recommending denial of the authorization to use sovereignty submerged lands is contained in Section III, "Reasons for Denial."

If the Board of Trustees approves the request to use sovereignty submerged lands and the activity also qualifies for an environmental resource permit, a "Consolidated Notice of Intent" will be issued and will contain general and specific conditions. In the event the Board of Trustees denies the use of sovereignty submerged lands, whether or not the activity otherwise qualifies for an environmental resource permit, the DEP will issue the "Consolidated Notice of Denial" for both the environmental resource permit and the authorization to use sovereignty submerged lands.

The applicant is proposing to construct a 112-slip commercial marine facility on the western shoreline of Brickell Key Island, located just south of the mouth of the Miami River in downtown Miami. The lease area, 204,861 square feet, will be divided into three separate parcels, with two parcels located north of an 840-foot-long by 66-foot-wide private bridge connecting the island to the mainland, and one parcel on the south side of the bridge. Parcel One is the northernmost parcel and contains 10,301 square feet. Parcel Two is located immediately north of the bridge and contains 102,910 square feet. Parcel Three is located immediately south of the bridge and contains 91,560 square feet. The applicant owns 4,525 linear feet of the shoreline on Brickell Key as verified by Dade County tax records. The marina will be used in conjunction with upland private residential units, a proposed hotel, and some commercial activities. The applicant proposes to limit 46 of the 106 private slips for powerboats, with remaining private slips for sailboat mooring only. Six slips in Parcel One will be dedicated to marine law enforcement vessels. Each slip is proposed to have a wastewater pump-out, connected to the island’s collection system. The applicant describes the marina as a "docks only" facility. No fueling or boat-repair facilities, liveaboards, or other such activities are proposed. The applicant’s consultant has stated that the marina will be solely for the use of the island’s residents and guests of the hotel. Public access to the island is restricted. Vehicle or pedestrian access to the island is limited to the private bridge that leads to a manned security gate. During visits to the island, staff have noted no public parking areas. The application states that a water taxi also stops at the island. Currently, the upland uses are a combination of private residential units, offices, and commercial retail activities. A hotel is being built on the south end of the island near the proposed lease area.

A 3.5-acre public park is proposed near the marina on the west side of the island, pursuant to a 1975 development order. The applicant proposes to retain approximately two feet of the riparian shoreline along the top of a seawall surrounding the island. In addition, a 20- to 30- foot-wide strip of upland located adjacent to and upland of the applicant’s two-foot strip will be conveyed to the City of Miami (City) for a public park. This conveyance is pending.

A wetland resource permit for a 53-slip marina was originally issued by the then Department of Environmental Regulation on May 28, 1985. A concurrent application for a sovereignty submerged lands lease was submitted on November 2, 1982, to the then Department of Natural Resources for processing. Because of an inability to adequately address the rule requirements of "extreme hardship" and "public interest", this application was subsequently deactivated. The applicant requested that the lease file be reactivated on January 25, 1989. The application was, however, again deactivated on September 25, 1990, because of the inability to meet the "extreme hardship" provisions of the rule.

The proposed project will be located on a bridged coastal island and is, therefore, not subject to the coastal island rule.

Board of Trustees

Agenda – July 25, 2000 Substitute Page Ten

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Substitute Item 6, cont.

The proposed project will be located in Biscayne Bay Aquatic Preserve, established under section 258.397, F.S. As such, activities in this aquatic preserve must be consistent with the provisions of the statutes and rules governing the preserve. Section 258.397(3)(a), F.S., states that "No further sale, transfer, or lease of sovereignty submerged lands in the preserve shall be approved or consummated by the board, except upon a showing of extreme hardship on the part of the applicant and a determination by the board that such sale, transfer, or lease is in the public interest." In addition, section 18-18.006(3)(b), F.A.C., states "There shall be no further use, sale, lease, or transfer of interests in sovereignty submerged lands unless an applicant affirmatively demonstrates sufficient facts to support a finding by the board that: (i) an extreme hardship exists for the applicant at the time the application is filed; (ii) the use, sale, lease, or transfer of interest and the project planned in conjunction with the use, sale, lease or transfer of interest is in the public interest; and (iii) the project planned in conjunction with the use, sale, lease, or transfer of interest is consistent with these rules and management plans when developed for the preserve."

The purpose of the facility is to provide dockage exclusively for residents of the island and for hotel guests. The entire facility will be owned, operated, and maintained by the Swire Properties, not the City. As such, the marina is an amenity associated with an upland, access restricted, commercial activity; owned, operated, and maintained by a private entity; with little, if any, access for the public at large. Rule clearly defines the project to be a private, "commercial/industrial dock" marina as defined in rule 18-18.004(7), F.A.C.

Staff is of the opinion that the proposed project contradicts the requirements of section 258.397(3)(a), F.S., and section 18-18.006(3)(b), F.A.C., which both state that leases in the Biscayne Bay Aquatic Preserve must meet the test of extreme hardship, as defined in section 18-18.004(11), F.A.C. The rule allows some latitude for projects which are a public necessity, when such projects are necessary to protect public health and safety and there is no alternative.

The applicant asserts that the project meets the extreme hardship test because the City is proposed to be co-lessee, which makes the marina a public project, and the City has endorsed the marina as part of a downtown revitalization, claiming it to be a public necessity. However, based on the submitted information, the City is not qualified to be a co-lessee since the City does not have the requisite riparian upland property interest required by statute and rule. After conveyance of the park property, the City still will not be a riparian upland owner, as the applicant will retain a two-foot wide strip of property along the upland edge of the seawall. The applicant has also not shown public necessity, pursuant to 18-18.004(22), F.A.C., by demonstrating how this access-restricted commercial marina is required for the protection of the health and safety of the public. Furthermore, the applicant has not provided evidence that no other reasonable alternatives exist. Absent the demonstration of public necessity, the applicant has not provided any other demonstration of how the project meets the test of extreme hardship.

Section 18-18.006(3)(b), F.A.C., requires that a lease in Biscayne Bay must be in the public interest, pursuant to section 18-18.004(20), F.A.C., and defines such as demonstrating environmental, social, and economic benefits to the public at large, which would clearly exceed all similar cost.

Application of the balancing test results in the costs of the proposed marina exceeding the benefits. Costs include: private preemption of almost five acres of public land from public use; increased boat traffic congestion in and near a navigation channel; shading impacts to seagrass, macroalgal habitat, other hard bottom benthic communties; and, potential impacts to

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Agenda – July 25, 2000 Substitute Page Eleven

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Substitute Item 6, cont.

the West Indian manatee. The Florida Fish and Wildlife Conservation Commission has recommended against a commercial or public marina at the site. Minimal benefits are expected. The primary benefit is a proposed conservation easement to extend along 4,106 linear feet of the island shoreline. However, this conservation easement is of limited value, since it is not likely that additional docking activities or facilities could be approved along the island. The applicant proposes to offset shading impacts by providing artificial substrate for new algal growth in another site within the project area. Staff is of the opinion that this project is not clearly in the public interest.

In summary, staff’s opinion is that the proposed project will have no net public benefit and is not itself a public project, and meets neither the extreme hardship nor the public interest tests necessary for approval.

An objection to the project was received from Friends of the Everglades on August 14, 1998. The objection stated that the project did not meet the "extreme hardship" criteria of section 18-18.006(3)(b), F.A.C., and that the City of Miami did not have sufficient interest in the uplands to be considered a co-applicant or co-lessee.

A second objection to the project, in the form of a copy of a letter from the Save the Manatee Club (SMC) to the United States Army Corps of Engineers, was received on December 21, 1998. The objection stated that the project was not consistent with the Dade County Manatee Protection Plan, that the project was not in the public interest, and the mitigation measures proposed at that time were insufficient to offset potential manatee impacts.

A third objection to the project was received from Miami-Dade County Department of Environmental Resources Management on September 14, 1998. The objection stated that the project would adversely impact manatees and was inconsistent with the Miami-Dade County Manatee Protection Plan.

A DEP environmental resource permit application has been processed concurrently with the lease application. Both applications were deemed complete on May 5, 2000. Based on staff’s recommendation to the Board of Trustees that the lease application be denied, and the concerns about the use of the facility and manatee impacts, staff will also recommend denial of the environmental resource permit application.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S. The Department of Community Affairs (DCA) determined that the plan is in compliance. The City has sent letters supporting the project. No local permits have been issued for the project, however.

(See Attachment 6, Pages 1-3)

RECOMMEND DEFERRAL

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Item 7 Florida Keys National Marine Sanctuary Annual Status Report

REQUEST: Submittal of the Florida Keys National Marine Sanctuary Annual Status Report.

COUNTY: Monroe

Board of Trustees

Agenda – July 25, 2000 Page Twelve

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Item 7, cont.

STAFF REMARKS: On January 28, 1997, the Governor and Cabinet, sitting as the Board of Trustees of the Internal Improvement Trust Fund, approved the Florida Keys National Marine Sanctuary Management Plan for implementation in state waters and adopted a resolution containing conditions for that approval. One of the conditions was that the Florida Department of Environmental Protection, in cooperation with the National Oceanic and Atmospheric Administration, submit to the Board of Trustees an annual status report of the sanctuary. Final federal rules and regulations for the sanctuary became effective July 1, 1997. This is the third annual report.

A major issue discussed in this report is the development of the proposed 151-square-nautical-mile Tortugas Ecological Reserve. In addition to sanctuary-wide regulations and no take and no anchoring restrictions, a requirement for a free entry permit would apply in the proposed reserve. A request for consideration of a Department recommendation on the proposed Tortugas Ecological Reserve will be presented to the Board of Trustees early next year.

(See Attachment 7, Pages 1-34)

RECOMMEND ACCEPTANCE

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Item 8 Office of Greenways and Trails Public-Private Partnership Authorization/Cross Florida Greenway

REQUEST: (l) Conceptual approval of a public-private partnership to utilize approximately 500 acres on the Cross Florida Greenway for recreational activities; and (2) waiver of the competitive bid requirements.

APPLICANT: Department of Environmental Protection (Department)

Office of Greenways and Trails

COUNTIES: Citrus and Levy

STAFF REMARKS:. The enabling legislation of the Marjorie Harris Carr Cross Florida Greenway (CFG) authorizes conservation and preservation activities and a broad array of recreational and "user-oriented activities", such as golf, tennis, baseball, archery, target shooting and playground activities, and "resource-based activities", such as fishing, camping, hunting, boating, bicycling, nature studying, horseback riding and hiking.

Some limited trails, trailheads, camping facilities and baseball fields now exist, and there are trails established from Dunnellon to U.S. 441 in Marion County, crossing approximately 120 miles of the corridor. Within the next year, significant additional infrastructure will be constructed, which will not only increase public access to this tract, but will also facilitate access to other public lands.

Several months ago, the Department was approached by a private interest group, Rapid Pursuits, Inc., with a proposal to develop a water park (Park) on the west end of the CFG east of Inglis Lock. Rapid Pursuits, Inc., proposes to develop a whitewater rafting, kayaking and canoeing course on disturbed upland portions of the former canal lands. Specifically, the upland spoil bank on the north side of the barge canal will be required. No wetlands or sovereign submerged lands are being sought in this lease. Special attention will be given to protecting the manatee and the resources of the Withlacoochee River. The whitewater course

Board of Trustees

Agenda – July 25, 2000 Page Thirteen

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Item 8, cont.

will be a year-round course and will provide recreational whitewater activities to residents and visitors alike. Rapid Pursuits, Inc., has also begun discussions with the Florida Olympic Committee (Florida 2012) to utilize this facility as the venue for the 2012 Summer Olympics. Rapid Pursuits, Inc. has the full support of Florida 2012 on this project. Furthermore, Florida 2012 recognized early on that a whitewater venue is crucial to winning the Olympic bid. Since there is no natural whitewater sufficient for an Olympic venue in the State of Florida, it necessitates that artificial whitewater be created. After a search for possible whitewater venues in the state, Florida 2012 determined that the Rapid Pursuits, Inc. location was the best and only location available to create whitewater, and quickly decided to support Rapid Pursuits, Inc. in this quest to create a whitewater park.

Florida will be submitting a bid to be the host for the 2012 Olympics. The bid is due to the U.S. Olympic Committee by December 15, 2000, and their recommendation to the International Olympic Committee is due in December 2001. The International Olympic Committee must make their final decision before 2004 in order to allow sufficient time for the host site to prepare for the Olympics. The Park must have a positive commitment by the State in order to be considered by the U.S. Olympic Committee as the nominee. Construction must be completed well in advance of the Olympics to allow for adjustments, possible changes and training. Furthermore, this whitewater park will provide revenues to the State, to be used towards the expansion and development of the CFG regardless of whether or not Florida receives the Olympic bid. Given Florida’s climate, this facility will be available for year round Olympic and professional training. Eight to ten national and international competitions will be held at the site each year. Additionally, rough water rescue training will be offered to the U.S. Coast Guard, U.S. Military, Red Cross and any other rescue entity seeking a site for training. Charity events and special prices for disabled, challenged or terminally-ill individuals will be a priority. All of these functions help to make the Park self-sufficient, thereby eliminating the need for State financial support. In fact, this public-private venture will generate income for the State, while providing an outstanding recreational facility. Rapid Pursuits, Inc. estimates that this facility will cost $100,000,000 to construct. The entire venture will be at the expense of the private entity and will cost the taxpayers nothing. Also, based on similar projects, it is estimated that the facility will bring in $400,000,000 annually, above and beyond the user fees, to the local area.

Rapid Pursuits, Inc., has also begun discussions with a private utility company interested in developing a private water treatment facility, which will not only service this recreational development, but will also provide sufficient capacity to serve parts of Levy and Citrus Counties. This proposal presents an outstanding opportunity to develop recreational facilities in a public-private partnership, and will have a tremendous impact on the overall economy of the surrounding areas.

Rapid Pursuits, Inc., has initiated a feasibility study, which will cost approximately $300,000, and has begun discussions with a number of private interests for financing and investment opportunities. Consequently, it is critical that they have an immediate indication that there is support from the Board of Trustees for the long-term use of CFG lands. Section 253.7825, F.S., states that the Cross Florida Greenways State Recreation and Conservation Areas must be managed as a multiple-use area pursuant to section. 253.034(2)(a), F.S. Another public-private partnership on the Greenway which has been authorized by law is the Florida Horse Park and Agricultural Museum, which is also being considered as a component of Florida's bid for the 2012 Olympics.

Board of Trustees

Agenda – July 25, 2000 Page Fourteen

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Item 8, cont.

Pursuant to section 18-2.018(2)(I), F.A.C., the Board of Trustees shall award authorization for uses of state-owned land on the basis of competitive bidding, rather than negotiation, unless otherwise determined to be in the public interest. Research has proven that there are no alternative sites to choose from and that this site is the only appropriate site for the whitewater venue. Rapid Pursuits, Inc. has contracted with architects and engineers of John Anderson, veteran Olympic whitewater canoeist and course designer; Edward D. Stone and Associates (EDSA), planners/landscape architects; and Utilities, Inc. of Florida, the largest privately-owned wastewater treatment company in the United States to design and engineer the facility. These contracts specifically contain non-disclosure/non-compete language that prohibits them from working with or talking to anyone other than Rapid Pursuits, Inc. Finding alternate designers would be very difficult and extremely time-consuming. Therefore, it is unlikely that there will be competing proposals if this were to be put out to bid.

Rapid Pursuits, Inc. has spent the past six months and approximately $100,000 working full-time to bring this project to its present status. It would take even longer for a different company, starting from scratch, as did Rapid Pursuits, Inc., to get up to speed, get contractors on board, and get back to this point. The Olympic deadlines clearly preclude this. In addition, the U.S. Olympic Committee has made it clear that once a bid has been submitted, the International Olympic Committee does not allow changes in event venues. Staff believes that the development of this public-private partnership and the need to expedite the development of this facility due to time constraints imposed by the Olympic Committee for the potential Olympics site justifies a waiver of the competitive bidding requirements.

Upon conceptual approval, staff will begin negotiations with Rapid Pursuits, Inc. regarding site issues and financial consideration. Staff will return to the Board of Trustees for approval of a 50-year sublease. Staff will provide quarterly reports on this project. If it appears that this project will not be developed, and a lease will not be executed within a year, staff will return to the Board of Trustees requesting denial of the proposal.

(See Attachment 8, Pages 1-4)

RECOMMEND CONCEPTUAL APPROVAL

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Item 9 Miller Purchase Agreement/Etoniah/Cross Florida Greenway CARL Project

REQUEST: Consideration of a purchase agreement to acquire 1,432.8 acres within the Etoniah/Cross Florida Greenway CARL project from Peter T. and Linda C. Miller.

COUNTY: Putnam

LOCATION: Sections 25, 26, 35 and 36, Township 10 South, Range 25 East

CONSIDERATION: $1,375,000

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Goodman Benson APPROVED PURCHASE PURCHASE CLOSING

NO. PARCEL ACRES (11/02/99) (07/22/99) VALUE PRICE PRICE DATE

001306 Miller 1,432.8 $1,396,000 $1,317,000 $1,396,000 * $1,375,000 120 days

after BOT

* The seller inherited the property. Approval

Board of Trustees

Agenda – July 25, 2000 Page Fifteen

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Item 9, cont.

STAFF REMARKS: The Etoniah/Cross Florida Greenway CARL project is ranked number 14 on the CARL Priority Project List approved by the Board of Trustees on February 22, 2000, and is eligible for negotiation under the Division of State Lands’ Land Acquisition Workplan. The project contains 43,564 acres, of which 15,234.4 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 26,897.6 acres or 61 percent of the project will remain to be acquired.

The Department of Environmental Protection’s (DEP) Office of General Counsel negotiated this acquisition. The seller is a party to a pending lawsuit regarding a separate parcel. There is no pending litigation on the subject parcel. The contract was negotiated to pay the owner $960 per acre, and includes a provision for an upward adjustment based on the final survey, if the final surveyed acres exceed the acres estimated at the time of appraisal. The adjustment will be based on the $960 negotiated price per acre.

All mortgages and liens will be satisfied at the time of closing. The planted pine timber has been planted pursuant to certain cost-sharing forestry programs, including the Forestry Incentive Program and the Forest Stewardship Program, administered by the U.S. Department of Agriculture (USDA). The timber affected shall be managed, harvested and removed in compliance with applicable USDA cost-sharing forestry programs. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to the DEP the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them appropriately. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for any title issues that arise prior to closing.

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

Though partially logged and planted in pine, the large expanse of flatwoods, sandhills, and scrub in central Putnam County, extending to the Cross-Florida Greenway along the Oklawaha River, is important for the survival of many kinds of wildlife and plants. The Greenway itself is a unique strip of land for recreation and conservation that makes a cross-section of the peninsula from the Withlacoochee River to the St. Johns. Public acquisition of the Etoniah/Cross Florida Greenway project will conserve the Putnam County land as well as fill in gaps in the Greenway; ensure that wildlife such as Florida black bear and scrub jays and plants such as the Etoniah rosemary will have areas in which to live; and provide recreation for the public ranging from long-distance hiking trails to fishing, camping, and hunting.

This property will be managed by the DEP’s Office of Greenways and Trails as an addition to the Cross Florida Greenway.

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 1-34)

RECOMMEND APPROVAL

Board of Trustees

Agenda – July 25, 2000 Page Sixteen

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Item 10 Fraushuer Quitclaim Deed

REQUEST: Consideration of a request to quitclaim 2.29 acres, more or less, in Duval County to Louis A. Frashuer and Nancy D. Frashuer.

COUNTY: Duval

Deed Number 30575

APPLICANTS: Louis A. Frashuer and Nancy D. Frashuer

LOCATION: Section 18, Township 01 South, Range 29 East

CONSIDERATION: $47,889, to be deposited in the Conservation and Recreation Lands Trust Fund

STAFF REMARKS: In 1989, the Board of Trustees acquired 580.28 acres of land from Fairfield Communities, Inc. (Fairfield), as part of the Fort George Island CARL project. The legal description in the deed included a 2.29-acre portion of Lot 504 that was not owned by Fairfield. The contract surveyors failed to note the 2.29-acre "less and except" in the legal description within the deed of the land when it was conveyed from John Michael Hughes to Fairfield in 1985. The 1985 deed describes "part of Five Hundred Four (504), except any part thereof lying East of a Southerly projection of the East line of Lot Two Hundred Two (202)." All of Lot 504 was included in the 1989 deed from Fairfield to the Board of Trustees. Commonwealth Land Title Insurance Company (Commonwealth) has provided a survey of the 2.29-acre less and except parcel and is prepared to reimburse the Board of Trustees. The purchase price of the 580.28 acres was $12,134,948.82, or $20,912.23 per acre. Multiplying 2.29 acres times $20,912.23 per acre results in a value of $47,889 as the prorated portion of the amount insured by Commonwealth. Commonwealth initially forwarded the Board of Trustees a check for this amount; however, the check was returned, pending receipt of a survey of the 2.29-acre parcel and Board of Trustees’ approval of the quitclaim.

Commonwealth reports that in 1996, Mr. Hughes included the 2.29 acres in a land sale to Louis A. and Nancy D. Frashuer; therefore, it has requested that the deed from the Board of Trustees be to the Frashuers.

Because the proposed action is for the purpose of clearing the Frashuers’ title and is not a land sale, the deed does not contain a mineral reservation pursuant to section 270.11, F.S.

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 10, Pages 1-25)

RECOMMEND APPROVAL

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Item 11 Lastition Disclaimer/Chapter 18-21.019, F.A.C./Lands Lost Due To Avulsion

REQUEST: Issuance of a disclaimer to a 0.01-acre parcel of privately-owned land to Jacqueline Lastition, pursuant to section 18-21.019, F.A.C.

Board of Trustees

Agenda – July 25, 2000 Page Seventeen

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Item 11, cont.

COUNTY: Palm Beach

APPLICANT: Jacquelyn Lastition

LOCATION: Section 26, Township 40 South, Range 42 East

STAFF REMARKS: The applicant is requesting the issuance of a disclaimer to 0.01-acre of land pursuant to section 18-21.019(4), F.A.C., Applications for Lands Lost Due to Avulsion. An avulsive event is the sudden or perceptible loss of or addition to land by the action of water, or a sudden change in the bed of a lake or the course of a stream. In 1998, a thunderstorm occurred causing the seawall of the subject parcel to fail, and 0.01-acre (441 square feet) of land was lost as a result.

Staff has determined that all of the criteria in the rule have been met for the parcel. These include: proof of ownership; the necessary proof that the loss happened less than five years prior to the date the application was filed; documentation supporting the fact that the loss was due to an avulsive event(s); documentation supporting the location of the mean high water line prior to and after the avulsive event(s); and a legal description showing that the quantity of land does not exceed one acre.

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

(See Attachment 11, Pages 1-11)

RECOMMEND APPROVAL

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Item 12 Dockter Easement/DACS/DOF/Goethe State Forest

REQUEST: Consideration of a perpetual non-exclusive easement containing 0.52 acres, to Gerald D. Dockter and Catherine A. Dockter for ingress and egress.

COUNTY: Levy

Easement Number 30592

APPLICANTS: Gerald D. Dockter and Catherine A. Dockter

LOCATION: Section 34, Township 13 South, Range 17 East

CONSIDERATION: $1,500, to be deposited in the Internal Improvement Trust Fund

STAFF REMARKS: The Department of Agriculture and Consumer Services, Division of Forestry (Forestry), manages the Goethe State Forest under Board of Trustees Lease Number 3976. Mr. and Mrs. Dockter own 80 acres that are shut off from legal ingress and egress by Goethe State Forest. The Dockters have requested an easement to give legal access to their property. The proposed easement will be along an existing private dirt road, known locally as South East 12th Lane, that is maintained by the abutting landowners. The first twenty-five feet of South East 12th Lane is owned by the Board of Trustees and is the area over which the easement is requested. Forestry does not object to the issuance of this easement.

Board of Trustees

Agenda – July 25, 2000 Page Eighteen

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Item 12, cont.

Pursuant to section 704.01(2), F.S., an owner of land cannot be denied access to his/her property and may lawfully use and maintain an easement by means of the nearest practical route. Although there has been no judicial determination that the applicant is entitled to a statutory way of necessity, Department of Environmental Protection’s staff has reviewed the matter, and the applicant’s property meets the criteria for a statutory way of necessity.

The Department of Environmental Protection’s Bureau of Appraisal completed a valuation of the easement area. The value of the easement area was determined to be $1,456. The Division of State Lands' staff negotiated with the applicant a final easement fee of $1,500.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S. The proposed action is consistent with the adopted plan according to a letter received from the county.

(See Attachment 12, Pages 1-15)

RECOMMEND APPROVAL

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Item 13 Miller/Capital City Trust Company/St. Joseph Bay Estates, Inc. Option Agreements/St. Joseph Bay Buffers CARL Project

REQUEST: Consideration of three option agreements to acquire 663.1 acres within the St. Joseph Bay Buffers CARL project from Wilton R. Miller, Capital City Trust Company, and St. Joseph Bay Estates, Inc.

COUNTY: Gulf

LOCATION: Sections 25 and 36, Township 08 South, Range 11 West

CONSIDERATION: $2,481,700

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Brown Rogers APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (03/21/00) (04/07/00) VALUE PRICE PRICE DATE

001303 Miller/3 21.7 $ 434,000 $ 434,000 * $ 421,000 120 days

001304 Cap. City/6 378.5 $1,324,750 $1,325,000 $1,325,000 * $1,272,000 after BOT

001305 St. Joe Bay/9 262.9 $ 814,990 $ 740,000 $ 814,990 * $ 788,700 approval

663.1 $2,573,990 $2,481,700

* Wilton R. Miller originally bought these three parcels as part of an approximately 1,188-acre tract for $1,475,000 in 1972.

Since then, these three parcels have been transferred internally (company names, retirement accounts and individually).

STAFF REMARKS: The St. Joseph Bay Buffer CARL project is ranked number 9 on the CARL Priority Project List approved by the Board of Trustees on February 22, 2000, and is eligible for negotiation under the Division of State Lands’ (DSL) Land Acquisition Workplan. The project contains 5,378 acres, of which 1,451.60 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves these agreements, 3,263.3 acres or 61 percent of the project will remain to be acquired.

Board of Trustees

Agenda – July 25, 2000 Page Nineteen

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Item 13, cont.

chapter 259, F.S., acquisitions and to resolve them appropriately. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for these and any other title issues that arise prior to closing.

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

The pine flatwoods, swamps, and scrub on the shore of St. Joseph Bay, with their concentration of rare plants, have largely escaped the residential development that is filling the nearby coast with vacation homes. The St. Joseph Bay Buffer project will protect the water quality and productive seagrass beds of the bay by protecting the undeveloped land around and in it, in so doing also ensuring the survival of dozens of rare plants, protecting one of the best preserved archaeological sites in northwest Florida, and giving the public opportunities to enjoy the natural beauty of the bay.

These properties will be managed by the DEP’s Office of Coastal and Aquatic Managed Areas as an addition to the St. Joseph Bay 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 13, Pages 1-60)

RECOMMEND APPROVAL

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Item 14 Austrian Development of Florida, Inc. Option Agreement/Washington Oaks State Gardens

REQUEST: Consideration of an option agreement to acquire 10.54 acres within the Washington Oaks State Gardens, Division of Recreation and Parks’ Additions and Inholdings project from Austrian Development of Florida, Inc.

COUNTY: Flagler

LOCATION: Section 17, Township 10 South, Range 31 East

CONSIDERATION: $475,000

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Rogers APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (01/25/00) VALUE PRICE PRICE DATE

001302 Austrian 10.54 $475,000 $475,000 $1,455,636* $475,000 60 days after

Development BOT approval

* The sellers’ purchase price includes additional 5.36-oceanfront acres and a residence. The seller was in a partnership and bought out the partners’ shares for approximately $800,000. The seller then satisfied a bank loan at foreclosure for $655,636, making the purchase price approximately $1,455,636.

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

Board of Trustees

Agenda – July 25, 2000 Page Twenty

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Item 14, cont.

Considering the possibility of imminent development, the Trust for Public Land (TPL) initiated negotiations with the seller and entered into an option agreement prior to an appraisal being done. Once the appraisal was completed, the state entered into negotiations with the TPL to acquire the option. It then became apparent to the TPL that its option with the seller was above the DSL-approved value; therefore, the TPL let its option expire. The Division of State Lands began negotiations with the seller.

All mortgages and liens will be satisfied at the time of closing. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to the Department of Environmental Protection (DEP) the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them appropriately. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for any title issues that arise prior to closing.

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

The property will be managed by the Division of Recreation and Parks as an addition to the Washington Oaks State Gardens.

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 14, Pages 1-16)

RECOMMEND APPROVAL

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Item 15 TNC Assignment of Option Agreement/FWCC Managing Agency Designation/Management Policy Statement Confirmation/St. Joe Timberland CARL Project

REQUEST: Consideration of (1) acceptance of an assignment of option agreement to acquire 8,840.9 acres within the St. Joe Timberland CARL project from The Nature Conservancy, Inc.; (2) designation of the Florida Fish and Wildlife Conservation Commission as the managing agency of the site; and (3) confirmation of the management policy statement.

COUNTY: Jefferson

LOCATION: Sections 01, 02, 11 through 14, 23 through 26, 35 and 36, Township 02 South, Range 03 East; Sections 18, 19, 30, and 31, Township 02 South, Range 04 East; Sections 02 and 11, Township 03 South, Range 03 East

CONSIDERATION: $16,366,704 ($16,266,704 for the acquisition; $100,000 for the purchase of the option agreement)

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Diskin Ryan APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (04/07/00) (01/18/00) VALUE PRICE PRICE DATE

001307 St. Joe- 8,840.9 $15,862,000 $17,500,000 $17,500,000 * $16,366,704 09/10/00

Wacissa

* The seller acquired the property decades ago.

Board of Trustees

Agenda – July 25, 2000 Page Twenty-one

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Item 15, cont.

STAFF REMARKS: The St. Joe Timberland CARL project is ranked number 7 on the CARL Priority Project List approved by the Board of Trustees on February 22, 2000, and is eligible for negotiation under the Division of State Lands’ (DSL) Land Acquisition Workplan. The project contains 56,288 acres, of which these are the first to be acquired by the Board of Trustees. After the Board of Trustees approves this agreement, 47,447.1 acres or 84 percent of the project will remain to be acquired.

Pursuant to a multi-party acquisition agreement entered into between the DSL and The Nature Conservancy, Inc. (TNC), TNC has acquired an option to purchase the parcel from St. Joe Timberland Company of Delaware. 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. At closing, the seller will grant access for the property at locations shown on Exhibit "E" of the option agreement. The seller shall retain the right of ingress and egress along the western perimeter and the northeast perimeter for access to their remaining lands. The seller’s reserved ingress and egress shall be exclusively used for silviculture and land management activities. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to the Department of Environmental Protection (DEP) the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them appropriately. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for any title issues that arise prior to closing.

A title insurance policy, an environmental site evaluation and, if necessary, an environmental site assessment will be provided by the seller prior to closing. The purchaser shall provide a survey of the property.

The St. Joe Company is one of the largest landowners in Florida. Public acquisition of the St. Joe Timberlands project will consolidate the St. Joe ownerships already included in other CARL projects, thus helping to preserve large undeveloped tracts of land for native plants and animals and giving the public an opportunity to experience large natural areas throughout north Florida.

Pursuant to section 259.032(9)(b)2., F.S., staff recommends that the Board of Trustees designate Florida Fish and Wildlife Conservation Commission as the managing agency for this site. It will be managed as a wildlife management area providing opportunities for canoeing, swimming, fishing, hunting and nature appreciation.

On December 9, 1999, the Land Acquisition and Management Advisory Council approved the creation of the St. Joe Timberland CARL project. The project includes the St. Joe Timberland ownerships in many active CARL projects. The sites lie in the Panhandle from Bay and Washington County to Taylor County, except for the Tico site in Brevard County. This site’s management will be consistent with the Wacissa/Aucilla River Sinks project management policy statement.

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

Board of Trustees

Agenda – July 25, 2000 Substitute Page Twenty-two

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Item 15, cont.

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 Wacissa/Aucilla River Sinks project was included in the 2000 CARL Annual Report adopted by the Board of Trustees on February 22, 2000. Staff recommends that the Board of Trustees confirm the management policy statement as written.

The primary goals of management of the Wacissa/Aucilla River Sinks CARL project are: to conserve, protect, manage, or restore important ecosystems, landscapes, and forests, in order to enhance or protect significant surface water, coastal, recreational, timber, fish or wildlife resources which local or state regulatory programs cannot adequately protect; to provide areas, including recreational trails, for natural-resource-based recreation; and to preserve significant archaeological or historical sites.

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 15, Pages 1-45)

RECOMMEND APPROVAL

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Substitute Item 16 Two Assignments of Option Agreements/TNC/Perdido Pitcher Plant Prairie CARL Project

REQUEST: Consideration of the acceptance of two assignment of option agreements to acquire 356.1 acres within the Perdido Pitcher Plant Prairie CARL project from The Nature Conservancy, Inc.

COUNTY: Escambia

LOCATION: Sections 10 and 11, Township 03 South, Range 31 West

CONSIDERATION: $3,235,770 ($3,177,000 for the acquisitions; $58,770 for the purchase of the option agreements)

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Rogers Nolan APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (03/02/99) (03/12/99) VALUE PRICE PRICE DATE

001308 Sisson/29 157.5 $1,450,000 $1,475,000 $1,475,000 * $1,377,000 10/02/00

Eisner & Rogers Martin

Krawitz (09/09/99) (09/15/99)

001309 2A & 2B 198.6 $1,830,000 $1,750,000 $1,830,000 $430,000** $1,800,000 10/15/00

356.1 $3,305,000 $3,177,000

* Inherited in 1972

** Acquired in 1994 and 1995

STAFF REMARKS: The Perdido Pitcher Plant Prairie CARL project is ranked number 4 on the CARL Priority Project List approved by the Board of Trustees on February 22, 2000, and is eligible for negotiation under the Division of State Lands’ (DSL) Land Acquisition Workplan. This project contains 5,797 acres, of which 3,234.3 acres have been acquired.

Board of Trustees

Agenda – July 25, 2000 Substitute Page Twenty-three

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Substitute Item 16, cont.

After the Board of Trustees approves this agreement, 2,206.6 acres or 38 percent of the project will remain to be acquired.

Pursuant to a multi-party acquisition agreement entered into between the DSL and The Nature Conservancy, Inc. (TNC), TNC has acquired an option to purchase a parcel from Paul S. Krawitz and Steven M. Eisner, and an option to purchase a parcel from John P. Sisson and Spencer A. Ingram, as co-trustees of the John P. Sisson Charitable Remainder Trust 2000. After these acquisitions are approved, the Board of Trustees will acquire the option for the Krawitz and Eisner parcel from TNC for $30,000, and for the Sisson and Ingram parcel from TNC for $28,770, which represents agreed upon compensation to TNC for overhead associated with acquiring the options. The assignment of option agreements provide that payment to TNC is contingent upon the Board of Trustees successfully acquiring the properties from the owners. The assignment of option agreements further provides that in no event will the purchase price for the options and the purchase price of the properties exceed the DSL approved value of the properties.

All mortgages and liens will be satisfied at the time of closing. There are outstanding oil, gas and mineral interests on the Krawitz and Eisner parcel, as well as a power line easement in favor of the Gulf Power Company as recorded in OR Book 409, page 886. The appraisers took these interests into consideration when determining the value of the property. The Division of Recreation and Parks (DRP), the future managing agency, has determined that the interests and the access easement will not affect the management of the property. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to the Department of Environmental Protection (DEP) the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them appropriately. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for these and any other title issues that arise prior to closing.

Surveys, title insurance policies, environmental site evaluations and, if necessary, environmental site assessments will 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. Public acquisition of the Perdido Pitcher Plant Prairie CARL 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.

These properties will be managed by the DRP as part of the Tarkiln Bayou State 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 16, Pages 1-84)

RECOMMEND APPROVAL

Board of Trustees

Agenda – July 25, 2000 Substitute Page Twenty-four

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Substitute Item 17 Hitchcock Sublease/DCF/Sunland Training Center

REQUEST: Consideration of (1) after-the-fact approval of an existing three-year sublease to Ms. Jeanne Hitchcock, containing 2,557 square feet, more or less; and (2) a new sublease to Ms. Hitchcock to extend her use of the sublease lands for an additional two years, with the option to renew the sublease on a year-to-year basis for an additional four years.

COUNTY: Jackson

Sublease Number 2513-01

APPLICANT: Jeanne Hitchcock, d/b/a Along the Way Too

LOCATION: Section 18, Township 05 North, Range 09 West

CONSIDERATION: $250 per month, to be deposited in the Welfare Trust Fund at Sunland Center-Marianna

STAFF REMARKS: The Department of Children and Family Services (DCF) currently leases the Sunland Training Center (Center) under Board of Trustees’ Lease Number 2513. Center staff began exploring methods to establish a day care center at the facility as early as 1986. In 1995, Center staff were advised that there were two methods for providing the desired day care services: (1) have a state-sponsored day care center operated for the children of state employees only; or (2) arrange with a private provider for day care that is open to the public, but also provides a discount to Center employees.

In April 1995, the DCF began coordination with the Department of Management Services (DMS) which administers, pursuant to chapter 110.151, F.S., state-sponsored day care facilities. DMS day care facilities are limited to serving only the children of state employees. A Request for Proposal (RFP) was prepared and mailed to all licensed day care operators in Jackson County. One complete response was received from Ms. Jeanne Hitchcock. The DMS reviewed the response, but found it insufficient because (1) there were not enough state employees to adequately support a profitable day care center; (2) the day care facility would compete with the private sector, and an adequate local market existed to serve the Center; (3) projections for Year One start-up enrollment were unlikely to be reached; (4) preschoolers would make up 80 percent of the enrollment, whereas the DMS requires that no one age group make up more than 75 percent of enrollment; (5) staff-to-child ratios were not met; and (6) the budget proposal was built on unrealistic expectations of income from the 67 children to be served. The DMS recommended that the Center reject the RFP response, not issue another RFP, and look at alternative use of the space.

The DCF chose instead to consider the second alternative for day care services that allowed children of non-state employees to use the facility. On July 16, 1997, letters were sent to the same vendors that received the original RFP and again, Ms. Jeanne Hitchcock was the only person to respond. The DCF contacted the Department of Environmental Protection (DEP), Division of State Lands (DSL) regarding the necessary Board of Trustees’ approval to issue a sublease for the day care facility. DEP staff notified the DCF that written approval by the Board of Trustees was not required. The DCF proceeded to issue the sublease to Ms. Hitchcock, who has been successfully operating the day care facility since September 30, 1997.

On March 16, 1999, a DCF Inspector General’s report confirmed that the DCF had the authority to sublease space for the day care center, and that it was not required to participate in the state-sponsored child care program administered by the DMS. However, it also determined that the Center and the DCF District 2 staff failed to properly complete required coordination and to properly execute the sublease as required by operating procedures then in effect. Contrary to what DSL staff had originally told the DCF, the sublease to Ms. Hitchcock required the review

Board of Trustees

Agenda – July 25, 2000 Substitute Page Twenty-five

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Substitute Item 17, cont.

and approval of the Board of Trustees, since the sublease was issued to a for-profit entity. Many of the old Board of Trustees’ leases, including Lease Number 2513, authorize the managing agencies to further sublease land so long as the agreement and/or sublease effectively carries out and furthers the general purposes of the lease. However, in 1970, the standard lease language was revised to allow further subleasing "subject to the written notice to and right of rejection by the lessor." DSL staff believes that this additional caveat was not noted by the DSL staff member initially contacted by the DCF regarding the need for Board of Trustees’ approval of subleases.

In an effort to bring the sublease into compliance and to provide for continued management of the day care facility by Ms. Hitchcock, the DCF is requesting after-the-fact approval of the existing sublease, which is scheduled to terminate on September 4, 2000, and approval of a new sublease to Ms. Hitchcock that will allow her to continue operating the facility for an additional two years, with the option to renew the sublease on a year-to-year basis for an additional four years. The new lease has been reviewed and approved as to form and legality by DEP legal staff.

By allowing children of non-state employees to attend the day care center, Ms. Hitchcock has been able to establish a successful business. The DCF receives a monthly sublease fee of $250, which is placed in the Welfare Trust Fund at Sunland Center-Marianna for use by the Center. Since no other serious responses were received during the initial RFP process in 1997, this figure was arrived at by the DCF based on an estimated cost to Sunland for utilities, maintenance and upkeep of the building, including the surrounding grounds. In exchange for the low rate, the facility provides reduced childcare rates for employees at the Center and other state employees in the area. The facility has received perfect scores over the last two years on inspections of its program, and has received satisfactory ratings from the Jackson County Health Department on its food service and child day care facility inspection reports.

Pursuant to section 18-2.018(2)(i), F.A.C., the Board of Trustees shall authorize uses of uplands that will generate income or revenue to a private user, or will limit or preempt use by the general public, on the basis of competitive bidding unless the Board of Trustees determines it to be in the public interest to do otherwise. The DCF elected to negotiate with Ms. Hitchcock for a continuation of her existing lease rather than competitively bid a new lease because (1) she has delivered quality services in good faith since September 30, 1997; (2) she has over ten years experience in daycare operations; (3) surveys conducted by state and county officials resulted in excellent ratings during all inspections; and (4) it is in the best interest of the children to maintain continuity in their care providers and surroundings. For these reasons, DSL staff concurs that direct negotiation of the lease extension is in the public interest.

Pursuant to section 18-2.018(1)(a), F.A.C., the decision to authorize the use of Board of Trustees-owned uplands requires a determination that such use is not contrary to the public interest. In addition to serving its employees, the DCF has indicated that the daycare facility increases the availability of quality childcare services in the northeast section of Marianna; is available to the general public for each age group; and supports low-income families by offering subsidized childcare services through Early Childhood Service. To assess the needs of daycare services for Jackson County, DSL staff contacted Early Childhood Services and learned that there are over 200 children in Jackson County on a waiting list for daycare services. If the existing sublease is terminated, it would create even more children on the waiting list. Additionally, the DEP’s Inspector General’s office reviewed the sublease contract and informed DSL staff that there appears to be no prohibition to the sublease in the original lease to the DCF and that the sublease seems to be providing a positive service to Sunland Center and the community at large. The on-site facility allows employees to visit their children during the day at mealtime and for breaks, which provides an added employee benefit

Board of Trustees

Agenda – July 25, 2000 Substitute Page Twenty-six

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Substitute Item 17, cont.

at no cost to the state. For these reasons, DSL staff concurs that the proposed sublease is not contrary to the public interest.

Pursuant to section 18-2.019(5)(a), F.A.C., before a parcel of land is offered for lease, sublease or sale to a local or federal unit of government or a private party, it shall first be offered to state agencies. Pursuant to section 18-2.019(5)(b)1., F.A.C., this provision shall be waived in instances where a managing agency proposes subleasing property and that sublease is directly related to the purpose of the primary lease, as certified by the sublessor. State agencies were not notified because the daycare facility’s primary purpose is to serve the employees of the DCF facility. In the event the sublease for the daycare facility is terminated, the DCF would use the site for alternative programs and it would not be considered surplus for other agency use.

A local government comprehensive plan (plan) has been adopted for this area pursuant to section 163.3167, F.S. The Department of Community Affairs has determined that the plan is in compliance. The Center is currently designated "Industrial" on Jackson County’s Future Land Use Map, and in order to comply with the land use categories of the Comprehensive Plan, the land use designation for the facility should be "Public." However, based on its existence prior to the adoption of the plan, the Center currently holds a vested status according to a letter received from Jackson County.

(See Attachment 17, Pages 1-83)

RECOMMEND APPROVAL

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Item 18 Core Development, Inc. Land Exchange

REQUEST: Consideration of an exchange of 0.23 acre (2 parcels) of state-owned submerged land for a 32-acre parcel of privately-owned submerged land and cash payment in the amount of $135,000.

COUNTY: Sarasota

LOCATION: Section 24, Township 36 South, Range 17 East

CONSIDERATION: $135,000 to be deposited into the Internal Improvement Trust Fund

STAFF REMARKS: Core Development, Inc. (Core) has expressed a desire to own 0.23 acres of sovereignty submerged land within the City of Sarasota (City). Pursuant to chapter 253.12(2)(a)(b) F.S., the Board of Trustees may sell and convey such submerged lands if determined by the Board of Trustees to be in the public interest. Core is the owner of the uplands connected to the 0.23 acre sovereignty submerged land parcels and is in the process of building a Ritz-Carlton hotel. The sovereignty submerged parcels are needed in the construction of the Ritz-Carlton and will be filled, then utilized as a part of the deck, garden, terrace and pool areas. The Ritz-Carlton hotel will have 266 rooms and 50 condominiums. Sarasota County and the City support the proposed exchange, as the hotel is a vital part of the City’s downtown redevelopment plan. Over the next two years, the construction of the hotel is projected to provide more than $65,000,000 of new construction into the City. Upon completion, the hotel expects to generate annual revenues in excess of $32,000,000 and will

Board of Trustees

Agenda – July 25, 2000 Page Twenty-seven

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Item 18, cont.

employ between 400 and 450 people, with an estimated annual payroll in excess of $10,000,000.

The Southwest Florida Water Management District (SWFWMD) and Biological Research Associates (on behalf of Core) have conducted field inspections and prepared reports describing the biological and ecological features of the 0.23 acre. The purpose of the field inspections was to identify significant biological and ecological features, such as oyster beds, clam beds, productive marine habitats, grass flats and nursery or feeding grounds for marine life. Both reports concluded that the 0.23 acre is primarily a tidal sand flat, with a fringe area of black and red mangroves (0.01 acre), and contains no significant biological or ecological features. The 0.23-acre parcel is part of an approximate one-acre parcel of sovereignty submerged land that has become somewhat isolated by the conveyance by the Board of Trustees of submerged lands to the north and west of the Ritz-Carlton hotel project. Based on the foregoing conclusions, and the economic benefits to Sarasota County, staff has made a determination that the conveyance would be in the best interest of the public.

Core is proposing to give the Board of Trustees, in exchange for the sovereignty submerged land, a 32-acre parcel of privately-owned submerged land in Roberts Bay and a cash payment in the amount of $135,000. Field inspections and biological and ecological reports of the 32-acre parcel in Roberts Bay show that the parcel has significant environmental resources, is within an Outstanding Florida Water, has vegetation throughout the site and provides high quality habitat for fishes, birds, crustaceans and other species.

Core has a permit application pending before SWFWMD for Phase Two of the Ritz-Carlton construction, and cannot proceed without the 0.23 acre of sovereignty submerged lands. The United States Army Corps of Engineers (COE) has reviewed the proposed fill of the 0.23 acre, and has determined that these activities may be authorized upon the following events: (1) the State’s verification of Coastal Zone Management; (2) receipt of State 401 water quality certification; (3) the previously authorized phase and mitigation have been constructed in accordance with the COE permit; and satisfaction under the Rivers and Harbors Act that the proposed activity will not interfere with navigation.

The exchange was noticed pursuant to chapter 253.111 and chapter 253.115, F.S., and three objections have been received.

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

(See Attachment 18, Pages 1-23)

RECOMMEND APROVAL

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Item 19 Suwannee County Option Agreement/Department of Corrections

DEFERRED FROM THE APRIL 25, 2000 AGENDA

DEFERRED FROM THE MAY 9, 2000 AGENDA

DEFERRED FROM THE JUNE 13, 2000 AGENDA

WITHDRAWN FROM THE JUNE 26, 2000 AGENDA

Board of Trustees

Agenda – July 25, 2000 2^nd Substitute Page Twenty-eight

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Item 19, cont.

REQUEST: Consideration of an option agreement to acquire 316.75 acres for the benefit of the Department of Corrections from Suwannee County.

COUNTY: Suwannee

APPLICANT: Department of Corrections (DOC)

LOCATION: Section 12, Township 03 South, Range 14 East

CONSIDERATION: $156,500 (The DOC’s share of the total purchase price of $332,587)

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Candler APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (09/21/99) VALUE PRICE PRICE DATE

001301 Suwannee 316.75 $348,000 $348,000 $332,587 $156,500 60 days after

County BOT approval

STAFF REMARKS: As a result of identifying a need for a corrections facility in the Suwannee County area of the state in 1993, Suwannee County (County) entered into an option agreement with W. K. Daugherty, the owner of the property. The option was extended several times, with the County paying additional option money. In 1999, the DOC agreed to contribute $156,500 toward the purchase. At the time of the last extension, Mr. Daugherty advised the County that he would not extend the option, and that the transaction would have to close no later than March 7, 2000. Due to the limited time period to close on the property, the County decided to proceed to close, with a purchase price of $332,587, and then to convey the property to the Board of Trustees for the same price that the DOC had agreed to contribute. Title to the property acquired will vest in the Board of Trustees. Funds for this acquisition were appropriated by the 1998 Florida Legislature and are still available.

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 title insurance policy and an environmental site assessment of the property will be provided by the DOC prior to closing. A survey of the property has already been provided by the County.

This property will be managed by the DOC as a corrections facility.

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

(See Attachment 19, Pages 1-28)

RECOMMEND APPROVAL

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2^nd Substitute Item 20 Florida State University Ringling Center for Cultural Arts Lease/BOR

REQUEST: Consideration of a 50-year lease to the Board of Regents for the Florida State University Ringling Center for Cultural Arts, containing 54 acres, more or less.

COUNTY: Sarasota

Lease Number 4292

Board of Trustees

Agenda – July 25, 2000 2^nd Substitute Page Twenty-nine

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2^nd Substitute Item 20, cont.

APPLICANT: Board of Regents on behalf of Florida State University

LOCATION: Sections 01 and 02, Township 36 South, Range 17 East

STAFF REMARKS: The Department of State (DOS) has been leasing the John and Mable Ringling Museum of Art under Board of Trustees’ Lease Number 2637 since 1973. The property was acquired from the estate of John Ringling. The DOS subleased the land in 1987

to the Board of Trustees of the John and Mable Ringling Museum of Art (Board), which was created pursuant to section 265.26, F.S. During the 2000 legislative session, the Board’s enabling legislation was repealed, and the Florida State University Ringling Center for Cultural Arts (Center) was created, pursuant to section 240.711, F.S. Operation of the Center became the responsibility of Florida State University (FSU) on July 1, 2000.

The Department of Environmental Protection (DEP), Division of State Lands has prepared Lease Number 4292 to the Board of Regents, on behalf of the FSU, for the Center. The Center is composed of the John and Mable Ringling Museum of Art, which includes the art museum, the Ca’ d’Zan (Ringling residence), and the Ringling Museum of the Circus. The Center also includes the Florida State University Center for the Fine and Performing Arts, which includes the Asolo Theater and the FSU Center for the Performing Arts. The lease requires that the Center be managed pursuant to section 240.711, F.S., and in compliance with the terms and conditions of the Last Will and Testament of John Ringling, which is attached as an exhibit to the lease.

DEP has been delegated the authority to approve state agency management plans; however, when an issue is of significant public interest, it shall be brought before the Board of Trustees. Because of the level of public interest in the Center, the management plan required to be submitted by FSU pursuant to section 253.034, F.S., will be submitted to the Board of Trustees for approval. Until such time as the plan is approved, FSU’s management of the Center lands will be limited to activities identified in the Board of Trustees’ Interim Management Activities List. Because of the special circumstances and interest in this transaction, should FSU desire to do something not included in the approved activities list, that request will be brought to the Board of Trustees.

A consideration of the status of the local government comprehensive plan was not made for this item. DEP has determined that the proposed action implements section 240.711, F.S., and does not involve a change in land use.

(See Attachment 20, Pages 1-50)

RECOMMEND APPROVAL

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Substitute Item 21 City of Panama City Release of Deed Restriction/St. Andrews Marina

REQUEST: Consideration of a release of deed restriction for the City of Panama City’s Downtown Marina and the St. Andrews Marina.

COUNTY: Bay

Deed Number 28495

APPLICANT: City of Panama City

Board of Trustees

Agenda – July 25, 2000 Substitute Page Thirty

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Substitute Item 21, cont.

LOCATION: Sections 01 and 08, Township 04 South, Ranges 14 and 15 West

CONSIDERATION: Annual payment of three percent of gross revenues received by the City of Panama City from all municipal commercial or retail activities; and, 15 percent of gross revenues received from all non-municipal commercial and retail activities or $15,000, whichever is greater

STAFF REMARKS: On February 12, 1991, the Board of Trustees granted registration for the entire Downtown Marina as a grandfather facility, pursuant to the provisions of section 18-21.00405, F.A.C., and issued a quitclaim deed for the two parcels of filled, formerly sovereignty submerged lands, to the City of Panama City (City) as part of an effort to clear up title issues involving lands within the City's Downtown Marina and St. Andrews Marina sites. The Downtown Marina site is approximately 22 acres and the St. Andrews Marina site is approximately four acres in size. The Board of Trustees recognized that the City had existing leases with private entities for commercial activities occurring on the filled parcels located at the Downtown Marina site, and specified that as the existing leases for non-public purposes expired, future uses of the site would be restricted to public purposes. Therefore, the quitclaim deed contains a public purpose restriction, since the parcels were conveyed without compensation because of the public nature of the use of the sites.

During the Department of Environmental Protection (DEP), Division of State Lands (DSL) review of the file to convert the registered grandfather facility to a sovereignty submerged lands lease, a potential violation of the public purpose restriction on the upland portion of the property was discovered at the Downtown Marina in March, 1998. In May 1998, DSL staff met with City representatives to discuss the options available to allow the City to continue to allow commercial uses on the upland portion of the property at the Downtown Marina and at the St. Andrews Marina. Options included the sale of the land to the City, or a release of the public purpose deed restriction by the Board of Trustees to allow commercial uses.

An agreement was reached on February 15, 2000, between the City and DSL staff, subject to approval by the Board of Trustees; and on May 23, 2000, the City approved a Resolution. A release of the deed restriction will enhance the City's effort to promote economic growth and development for the downtown area. Subsequently, DSL staff recommends a release of the deed restriction to allow commercial and retail use of the parcels located at the Downtown Marina and the St. Andrews Marina. The release of the deed restriction shall be subject to the Board of Trustees receiving, annually, three percent of gross revenues received by the City from all municipal commercial or retail activities with the exception of revenues received from fuel operations and boatslip rentals (boatslip rentals are covered under an existing submerged lands lease), and 15 percent of gross revenues received by the City from all non-municipal commercial and retail activities. In no event shall the annual revenue received by the Board of Trustees be less than $15,000. The City shall continue to abide by the terms and conditions of the existing sovereignty submerged land leases for the operation of commercial marinas, and will continue to provide office and marina space at no cost to the State of Florida at the Downtown Marina.

(See Attachment 21, Pages 1-52)

RECOMMEND DEFERRAL

Board of Trustees

Agenda – July 25, 2000 Substitute Page Thirty-one

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Substitute Item 22 Blackburn v. West Coast Inland Navigation District/BOT/USA/Sarasota County Settlement Agreement

REQUEST: Consideration of a request to approve a Settlement Agreement in the case of John Henry Blackburn v. West Coast Inland Navigation District, the Board of Trustees of the Internal Improvement Trust Fund, the United States of America, and Sarasota County (as Intervenor), Sarasota County, Circuit Court, Civil Division, Case No. 97-587-CA-01, involving an exchange of filled sovereignty submerged land for submerged land to which ownership is disputed.

COUNTY: Sarasota

APPLICANT: Department of Environmental Protection (DEP)

LOCATION: Section 15, Township 38 South, Range 18 East, where Blackburn Point Road bisects Little Sarasota Bay and Dryman Bay.

CONSIDERATION: All remaining submerged lands within Government Lot 2, Section 15, Township 38 South, Range 18 East located in Little Sarasota Bay and Dryman Bay.

STAFF REMARKS: John Henry Blackburn (Blackburn) filed suit against West Coast Inland Navigation District (WCIND), the Board of Trustees of the Internal Improvement Trust Fund (Board of Trustees), and the United States of America (USA) to quiet title to upland and submerged land. Sarasota County moved to intervene, and was permitted to do so by the Circuit Court of the Twelfth Judicial Circuit in and for Sarasota County, Civil Division.

This property consists of possible uplands and submerged lands that were altered, pursuant to the construction of Blackburn Point Road in 1926 and dredging of the Intracoastal Waterway in 1962. Blackburn’s predecessor in interest, John S. Blackburn, was conveyed Government Lots 1 and 2 in Section 15, Township 38 South, Range 18 East in Sarasota County on April 29, 1890 through a patent from the USA. Section 15 is a fractional section. The description of Government Lots 1 and 2 in the patent included sovereignty submerged lands; however, because the state owned those lands in 1890, the deed from the United States could not have conveyed them. Within the sovereignty submerged portions of Government Lots 1 and 2 there were at least three mangrove formations. Blackburn claims that these mangrove formations were uplands included in the patent to his predecessor in interest, John S. Blackburn. Whether these formations were upland islands or on sovereignty submerged lands has never been determined. At some time between 1890 and 1926, John S. Blackburn conveyed his interest in Government Lots 1 and 2 to the Blackburn Point Holding Company (BPHC).

On February 6, 1926, the BPHC conveyed in fee simple a portion of Government Lot 2 in Section 15 to Sarasota County for use as a right-of-way to construct Blackburn Point Road. The description of this conveyance began above the mean high water line at the eastern boundary of Section 15 and extended 3,500 feet into Little Sarasota Bay to the "shore line" as described in the deed. This description placed the right-of-way across open water and two of the three mangrove formations. At some time in or after 1926, Sarasota County constructed Blackburn Point Road within the description of the right-of-way conveyed by BPHC in 1926. The County later extended Blackburn Point Road past the right-of-way. Blackburn Point Road was fully completed before May 29, 1951. It is the opinion of staff that all of Blackburn Road and the adjacent fill is owned by Sarasota County pursuant to the Butler Act.

In 1961, the Board of Trustees conveyed a perpetual canal right-of-way easement (TIITF #22942) located in Section 15 to the WCIND. The perpetual easement permitted the WCIND to dredge a canal and deposit the spoil in an area along Blackburn Point Road. The WCIND in

Board of Trustees

Agenda – July 25, 2000 Substitute Page Thirty-two

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Substitute Item 22, cont.

turn conveyed a perpetual canal right-of-way easement to the USA over the same lands. Pursuant to the Intracoastal Waterway System, the USA dredged a canal and deposited spoil adjacent to Blackburn Point Road. Evidence is unclear whether the deposition of spoil created upland anew or added to existing upland. As a result of canal dredging and construction of Blackburn Point Road, a small land formation and cove were created adjacent to Blackburn Point Road, south of the right-of-way line as described in the 1926 conveyance. This small land formation also is situated over the same area as the mangrove formations. Title has never been quieted to this land formation or Blackburn Point Road.

No further action was taken by the Board of Trustees until the suit to quiet title was filed by Blackburn in 1997. Settlement negotiations were undertaken, were attended by representatives of each party, and were approved by staff. A settlement agreement was reached, subject to approval by the Board of Trustees.

The Settlement Agreement consists of an exchange. The Board of Trustees shall issue a disclaimer and Blackburn shall issue a quit claim deed to Sarasota County for whatever interest they may have in 20,641 square feet (0.47 acres) of property identified as Parcel B on the attached survey. The Board of Trustees and Sarasota County shall issue disclaimers to Blackburn for 31,193 square feet (0.716 acres) of property identified as Parcel C on the attached survey. The Board of Trustees, Blackburn and Sarasota County shall acknowledge the easement issued by the Board of Trustees in favor of the WCIND and all parties shall be subject to all conditions of that easement. Any disclaimer or certificate issued by the Board of Trustees shall retain the Canal Right-of-Way Easement in favor of the WCIND. Blackburn shall pay any application fees due to the Board of Trustees for all disclaimers identified in this Settlement Agreement.

In exchange for the disclaimers to be issued by the Board of Trustees (covering no more that 1.19 acres of property), Blackburn shall grant the Board of Trustees a quitclaim deed to all submerged land located in Little Sarasota Bay and Dryman Bay, Sarasota County, Florida, to which he has alleged a claim of title. This represents an exchange ratio of approximately 39 to 1. Blackburn shall bring all docks and other water dependent structures extending from Parcel C into compliance with DEP Rules and Sarasota County Regulations within a period of 180 days from the receipt of a disclaimer or certificate from the Board of Trustees (pending approval of this Agreement) including removal of any unauthorized structures, if necessary. Blackburn will also pay any lease fees in arrears, plus interest, that have accrued on the preempted area from September 30, 1984 until the present date. Blackburn has reserved the right to apply for disclaimers, certificates of title, or quitclaim deeds to other properties he may own pursuant to section 253.12, F.S. This Settlement Agreement is contingent upon approval by the Board of Trustees, and will not go forward until such time.

It is in the Board of Trustees’ best interest, in light of the uncertainty surrounding title to the disputed lands and former islands or formations, to approve this agreement. The Board of Trustees will gain clear title to approximately 39 times as much submerged property in exchange for its interest in the subject parcel. The Board of Trustees will also retain the right to impose lease fees for structures situated on submerged land adjacent to Parcel C. The alternative to approving this Settlement Agreement is further costly litigation and trial, the results of which are uncertain. In view of the foregoing reasons, staff recommends approval of the Settlement Agreement. The Board of Trustees is authorized to issue disclaimers or certificates of title under section 253.12, F.S. The Board of Trustees is authorized to exchange lands under section 253.42, F.S.

(See Attachment 22, Pages 1-10)

RECOMMEND APPROVAL OF THE SETTLEMENT AGREEMENT

Board of Trustees

Agenda – July 25, 2000 Substitute Page Thirty-three

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Substitute Item 23 BOR / FSU / St. Joe Company Option Agreement / Lease / Sublease/ Florida State University Schools, Inc. Ground Lease

REQUEST: Consideration of (1) an option agreement to acquire 50.04 acres, more or less, for the benefit of the Florida Board of Regents, on behalf of Florida State University, from The St. Joe Company; (2) a 50-year lease to the Florida Board of Regents, containing 50.04 acres, more or less; (3) a 50-year sublease between the Florida Board of Regents and Florida State University Schools, Inc., containing 50.04 acres, more or less; and (4) a 35-year ground lease between Florida State University Schools, Inc., and the City of Tallahassee, containing 50.04 acres, more or less.

COUNTY: Leon

Lease Number 4293

APPLICANT: Florida State University (FSU)

LOCATION: Section 21, Township 01 South, Range 01 East

CONSIDERATION: $5,000,000 (to be confirmed by a Department of Environmental Protection, Division of State Lands (DSL) appraisal)

STAFF REMARKS: This acquisition was negotiated by FSU. Funds for this acquisition were appropriated by the 1994 and 1995 Florida Legislature and are still available. The acquisition was approved by the Florida Board of Regents (BOR) on May 17, 2000.

For several years, FSU has been acquiring land to expand its campus. Of the ten universities that are part of the State University System, FSU has the smallest campus. An inadequate land base has hampered its ability to offer efficient and effective services and to expand to meet the rising needs of its student population.

In order to meet its core mission and increase the effective size of its campus, FSU has been working on a plan to relocate its developmental research school, locally known as Florida High. Florida High currently occupies approximately 24 acres along the northwest corner of the FSU campus, space which, in FSU's opinion, could more appropriately be used for more traditional university-related programs.

In order to provide alternative space for Florida High, FSU has negotiated an option agreement with The St. Joe Company to purchase approximately 50.04 acres of land within the Southwood Development, a multi-use development being constructed in southeast Tallahassee adjacent to the Capital Circle Office Center (Southwood Office Complex). Under the terms of the option agreement, The St. Joe Company is obligated to provide road access to the site as well as all necessary storm water retention facilities. In addition, The St. Joe Company is also obligated to provide additional on-site improvements estimated at $1,232,500, off-site improvements within the Southwood Development estimated at $1,180,200, and off-site improvements outside the boundaries of the Southwood Development estimated at $2,460,000.

FSU is committed to having the new school open in time for the 2001-2002 school year. To accommodate this time line, it was necessary to enter into a contract to purchase the land before appraisals could be done. Based upon other sales as well as a recent exchange of land with the Board of Trustees, The St. Joe Company believes that the land will appraise for more than $5 million, especially when the added value of road access, storm water retention and the additional improvements outlined above are taken into consideration. Under the terms of the option agreement, closing will not occur until after the required appraisals have been completed. The closing will occur in two phases. At the first phase closing, The St. Joe

Board of Trustees

Agenda – July 25, 2000 Substitute Page Thirty-four

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Substitute Item 23, cont.

Company will convey fee simple title to the Board of Trustees based on the current market value of the land with an escrow being held until the completion of the improvements can be provided. The escrow amount withheld will be the difference of the amount paid for the current land value and the $5 million appropriation to FSU for the acquisition. Upon completion of the improvements, the second phase closing will occur upon the issuance of an updated appraisal reflecting the property as improved. The remaining balance of the escrow withheld will be released based on the current value provided that the land has an improved market value of not less than $5 million and in no event will the total amount paid by the Board of Trustees exceed a total of $5 million including the escrow.

On May 24, 2000, Florida State University Schools, Inc. (FSU Charter School), was incorporated as a Florida not for profit corporation, with the initial board of directors being the current board of Florida High. FSU anticipates granting a 15-year charter to the FSU Charter School in accordance with section 228.056(4)(e), F.S. Once granted its charter, the FSU Charter School will constitute a "public school" within its own "special school district" in accordance with section 228.015, F.S. Notwithstanding this, the FSU Charter School will remain under the control of FSU.

The City, by resolutions adopted May 24, 2000, and July 12, 2000, has agreed to act as the issuer of bonds on behalf of the FSU Charter School to finance the costs of construction for a new charter school facility on the land. The facility will be financed through the contribution of the land acquired by FSU at the Southwood development, a contribution of approximately $5 million by The St. Joe Company, and approximately $23 million in net bond proceeds provided by the City's Lease Revenue Bonds. These bonds will be repaid using the FSU Charter School's capital outlay funds.

In order to provide the FSU Charter School access to the land to be acquired by FSU, the Board of Trustees will provide a 50-year lease to the BOR for and on behalf of FSU for the purpose of developing the charter school. The BOR will then provide a sublease to the FSU Charter School for the same term of 50 years. As part of the bond financing structures, the FSU Charter School will enter into a ground lease with the City, which will in turn enter into a lease purchase agreement with the FSU Charter School. Both the ground lease to the City and the lease purchase agreement with the FSU Charter School will be absolutely assigned by the City to a bond trustee. The term of the ground lease to the City will equal the period of time the bonds are to be outstanding, plus ten years, subject to early termination if the bonds are retired prior to or at maturity. In addition, the BOR and FSU will have the right to pay off the bonds and take over the facility and the ground lease in the event of a default or a non-appropriation of charter school capital outlay funds or developmental research school capital outlay funds by the Legislature.

In order to facilitate the bond financing, the state lease will need to provide for the financing of the facility. The state lease provides that, upon failure of the State of Florida to appropriate sufficient charter school capital outlay funds and or developmental research school capital outlay funds to enable the FSU Charter School to make lease payments in any fiscal year during the term of the lease purchase agreement, or upon a default by the FSU Charter School thereunder, or upon an event of non-appropriation thereunder, the lease purchase agreement will terminate, and the bond trustee may exercise remedies with respect to the leased premises including, but not limited to, excluding the FSU Charter School from possession thereof during the remaining term of the ground lease, and the bond trustee shall have the right to relet the leased premises for the remaining term of the ground lease to an alternate tenant so long as the proposed use of the acquired land is permitted under the applicable zoning for the land and the

Board of Trustees

Agenda – July 25, 2000 2^nd Substitute Page Thirty-five

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Substitute Item 23, cont.

development order, without the prior consent of the Board of Trustees or the BOR, although the bond trustee will provide notice to the Board of Trustees of such reletting of the land. This

language is a requirement of the municipal bond insurer, and will result in the bonds being rated "AAA" by one or more nationally recognized credit rating agencies, and is reflected in Section 37 of the state lease.

FSU has provided a survey, commitment for title insurance and environmental site assessment to the DSL.

All mortgages and liens will be satisfied at the time of closing. The commitment for title insurance does not reveal any encumbrances which may affect the value of the property or the proposed management of the property, other than those anticipated to be released as part of the real estate closing.

This parcel will be managed by FSU on behalf of the BOR through a sublease to the FSU Charter School.

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

(See Attachment 23, Pages 1-73)

RECOMMEND APPROVAL

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2^nd Substitute Item 24 City of Tallahassee Conveyance/Easement

REQUEST: Consideration of (1) the conveyance of 15.99 acres to the City of Tallahassee; (2) the issuance of a perpetual non-exclusive easement to the City of Tallahassee over 22.46 acres; and (3) the proceeds from the conveyance being split between the Department of Health and the Department of Children and Families on a 50/50 basis.

COUNTY: Leon

LOCATION: Section 29, Township 01 North, Range 01 East

CONSIDERATION: $3,100,000, to be deposited into the Internal Improvement Trust Fund

STAFF REMARKS: The City of Tallahassee (City) is pursuing the extension of Blair Stone Road in an effort to alleviate traffic congestion on the east side of Tallahassee. In designing the extension route, the City found it most expedient to cross state-owned property at the "old Sunland Hospital" site bounded on the south by East Mahan Drive (US Highway 90 East) and on the north by Miccosukee Road. The 15.99 acres proposed for conveyance to the City for the Blair Stone Road Northern Extension includes a three story 2,400 square foot office building currently leased to the Department of Health and the Department of Children and Families. In conjunction with the road building project, the City will need to construct a storm water facility covering 24.46 acres. The City has requested an easement over 22.46 acres of state-owned land for the storm water facility and two additional acres of state-owned land will be utilized in consideration for use of the facility for future state development. The total state ownership at the "old Sunland Hospital" site is approximately 102 acres. The Department of Law Enforcement (FDLE) has an office building on a portion of the site leaving, after conveyance of 15.99 acres to the City and development of a storm water facility on 24.46 acres, approximately 35 developable acres in state ownership.

Board of Trustees

Agenda – July 25, 2000 2^nd Substitute Page Thirty-six

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2^nd Substitute Item 24, cont.

In exchange for the conveyance of the property and the easement for the storm water facility, the City is offering the Board of Trustees the following:

$3,100,000 cash at closing.

The City will allow the Department of Health and the Department of Children and Families to remain in the office building, rent free, for two years.

The City will assume full responsibility for the perpetual operation and maintenance of the storm water facility and will provide capacity for future development of the state-owned 35-acre remainder parcel.

Provide two accesses from the 35-acre remainder state-owned parcel onto Blair Stone Road Northern Extension.

The transfer of the development rights from the Phillips Road storm water treatment facility area to the 35-acre state-owned remainder parcel.

The City will provide an additional eastbound only exit onto Miccosukee Road from north of the FDLE building.

The City will provide a storm water pipe connection for the storm water line along the right-of-way of the Blair Stone Extension adjacent to the property leased to FDLE to accommodate future development.

The City will abandon and convey title to the Board of Trustees a portion of the rights-of way of Adams and St. Augustine Streets needed to assist in the security of the Capitol.

The City agrees to abandon and convey to the Board of Trustees the portion of the right-of-way of Phillips Road located on the state-owned site.

The City agrees to lobby the Legislature for funds to demolish the Sunland Hospital building which is estimated to cost in the range of $2,000,000.

The City agrees to absorb all fees for developmental review connected with two buildings not to exceed 50,000 square feet to be built on the 35-acre state-owned remainder site.

Since offices of the Department of Health and the Department of Children and Families will be displaced by this conveyance if approved by the Board of Trustees, they are requesting a 50/50 split of the proceeds.

The Land Acquisition and Management Council approved the conveyance to the City on February 3, 2000.

Issues have been raised by local citizens regarding the existence of a sinkhole on the state-owned parcel and the potential impacts of the proposed use of the property. The City has conducted engineering and geological studies which have concluded that impacts will be negligible. Florida Geological Survey staff have reviewed the studies. Based on the geological information contained within the reports staff indicated there is no information to suggest anything contrary to the City’s findings. Department of Environmental Protection staff have also indicated that a general permit for the stormwater management facility was issued on January 9, 1998, and the pond site appears to be an inactive Karst feature with no direct hydraulic connection to the aquifer and the soils appear to be stable. Further, the pond was considered to be an existing stormwater facility before the general permit was issued for stormwater treatment.

The City has determined that Blair Stone Road is a vital link in the community’s transportation network and that it is an important and significant project that provides several benefits including relief of traffic congestion on several major arterial roadways (i.e. Magnolia Drive, Capital Circle, Centerville Road); provides for planned development of the community; and

Board of Trustees

Agenda – July 25, 2000 Substitute Additional Page Thirty-six A

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2^nd Substitute Item 24, cont.

provides an alternative corridor that will assist in the preservation of Centerville Road, a canopy road. Additionally, the project as proposed includes amenities which will result in a net positive effect on the environment through stormwater retrofit of existing adjacent neighborhoods and protection and enhancement of floodplains and wetlands. The design of this roadway represents collaborative effort among city staff, a citizen advisory committee, and input from others having interest in the project whose objectives were to mitigate the impact on adjacent neighborhoods and minimize environmental impact. The roadway features extensive landscaping and buffering, noise walls., bridges over wetlands, and excess capacity in the stormwater treatment facilities for treatment of stormwater from existing adjacent neighborhoods. Pursuant to chapter 18-2.018(3)(b)(1)(c), F.A.C., the conveyance of this parcel provides a greater benefit to the public than its retention in state ownership. In addition, pursuant to chapter 18-2.018(1)(a), F.A.C., staff recommends that the Board of Trustees determine that the issuance of the easement is not contrary to the public interest.

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 this conveyance is not subject to the local government planning process.

(Attachment 24, Pages 1-49)

RECOMMEND APPROVAL

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Substitute Item 25 City of Miami/Dinner Key Boatyard Lease/Disclaimer

REQUEST: Consideration of an application for (1) after-the-fact authorization of a 20-year extended term lease, with a 20-year renewal option, containing 152,747.8 square feet, more or less, for a municipal/commercial marina; (2) a 20-year waiver of a Board of Trustees’ deed restriction, with a 20-year renewal option, containing 134,370.4 square feet, more or less, of

(AGENDA CONTINUED ON NEXT PAGE)

Board of Trustees

Agenda – July 25, 2000 Substitute Page Thirty-seven

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Substitute Item 25, cont.

deeded submerged lands associated with the marina; (3) a Butler Act disclaimer for a portion of filled, formerly submerged, sovereignty lands encompassing 66,788 square feet, more or less; (4) after-the-fact authorization for the severance of 650 cubic yards of sovereign material and waiver of the severance fee; (5) after-the-fact authorization for the construction and replacement of 1,200 linear feet of bulkhead and for the placement of 160 linear feet of riprap along the bulkhead; and (6) an affirmative finding that extreme hardship exists and the project is in the public interest.

COUNTY: Dade

BOT Application No.: 132846159

Permit Nos. 132846159 and 13-0143446-001

APPLICANT: City of Miami (City)

(a/k/a Dinner Key Boatyard)

LOCATION: Sections 21-23, 27 and 35, Township 54 South, Range 41 East, in Biscayne Bay, Class III Waters, within the local jurisdiction of the city of Miami

Aquatic Preserve: Biscayne Bay, Resource Protection Area 3

Manatee Area slow speed zone: Yes

Outstanding Florida Waters: No

CONSIDERATION: $34,178.86, representing (1) $15,178.86 as the initial lease fee, including the annual lease fee for the proposed extended term lease calculated as the annual lease fee times 1.20, computed at the base rate of $0.1183 per square foot, discounted 30 percent because of the first-come, first-served nature of the facility; and (2) an annual payment of $19,000 as the negotiated fee for the proposed waiver of deed restriction or six percent of gross revenues, whichever is greater. The project qualifies for waiver of the severance fee pursuant to section 18-21.011(3)(c), F.A.C. Sales tax will be assessed pursuant to section 212.021, F.S., if applicable. The fee for the extended term lease and waiver of deed restriction areas shall be based on a rate per square foot for the lease area, negotiated fee for the waiver area or six percent of the gross rental income for both areas, pursuant to section 18-21.011(1)(a)1, F.A.C. The fee for the lease area may be revised upon receipt of an acceptable survey. A 25 percent surcharge payment pursuant to section 18-21.011(1)(b)3, F.A.C., is not recommended for this lease, because of the misidentification of the deed boundary and missed opportunity for the City to have registered this facility under the grandfathered registration program.

STAFF REMARKS: The City is requesting approval of six items relating to the reconstruction and development of an existing marina destroyed by Hurricane Andrew in 1992. The marina predates the adoption of legislation creating the Biscayne Bay Aquatic Preserve. The project, with this request, has been reviewed and approved by the Governor’s Financial Emergency Oversight Board which is responsible for assisting in the City’s financial recovery.

Part of the City’s request is for the after-the-fact authorization of a 20-year extended term lease, with a 20-year renewal option, for a 152,747.8-square-foot parcel of (non-deeded) sovereignty submerged lands currently used as a municipally-owned and operated public marina, known as the Dinner Key Boatyard Marina. The City is also requesting a 20-year waiver, with a 20-year renewal option, of a restriction contained in Board of Trustees’ deed (Deed No. 19448) that currently prohibits privatization of a 134,370.4-square-foot parcel of previously conveyed sovereignty submerged lands located contiguous to and currently used as part of the marina. Approval of the City’s request, particularly for the lease and waiver, would allow the City to finalize plans to lease the operation of the entire marina facility and associated uplands to a private entity as an economic development project that is part of the City’s financial recovery plan. Waiver of the deed restriction would be in the form of a

Board of Trustees

Agenda – July 25, 2000 Substitute Page Thirty-eight

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Substitute Item 25, cont.

Release of Restriction and Reverter Agreement to be consistent with other agreements between the City and the Board of Trustees for other similar activities in the area.

In conjunction with this request, the City is seeking approval of a disclaimer for a portion of filled, formerly submerged, sovereignty lands encompassing 66,788 square feet, more or less that also is being used as part of the marina complex. Additionally, the City is requesting after-the-fact authorization for the severance of 650 cubic yards of sovereign material previously removed from the marina basin. The City is requesting a waiver of the severance fee for this material. After-the-fact authorization is also sought for the City’s prior construction and replacement of 1,200 linear feet of bulkhead and placement of 160 linear feet of riprap along the bulkhead within the marina. The submerged lands currently used for the City’s marina complex contains 55 boat slips and approximately 70 mooring pilings for recreational and pleasure watercraft. The slips will continue to be rented to the public on a first-come, first-served basis.

On February 24, 1949, the Board of Trustees issued Deed No. 19448 to the City, which authorized the conveyance of a large parcel of sovereignty submerged lands within Biscayne Bay. The portion of this request involving the waiver of deed restriction, which contains 134,370.4 square feet, is located within this deeded area. The deed contained a restriction which limited the use of the submerged land to "never sell or convey or lease the land or any part thereof to any private person, firm or corporation for any private use or purpose, it being the intention of this restriction that the said lands shall be used solely for public purposes, including municipal purposes and not otherwise." The deed further restricted the City to "not give or grant any license or permit to any private person, firm or corporation to construct or make by any means, any islands, fills, embankments, structures, buildings or other similar things within or upon the …lands for any private use or purpose, as distinguished from any public or municipal use or purpose."

The City built a marina at this site in 1949. The City conducted the marina operations, but leased the adjacent uplands to a private commercial interest (Merrill-Stevens Boatyard). In 1989, the City cancelled the upland lease and has maintained control of the entire facility since that time. In 1992, Hurricane Andrew destroyed much of the marina. The City, after obtaining regulatory permits, began reconstruction of the marina with some modifications of the previous structure configurations. Because the deeded 134,370.4-square-foot parcel lies waterward of the larger non-deeded 152,747.8-square-foot parcel, the Department of Environmental Protection (DEP) staff believed, at the time, that all of the marina structures were located within the boundaries of the deeded area; therefore, staff did not require the City to obtain any proprietary authorization for the use of the submerged lands. It was later determined that the deed did not encompass the entire marina facility. The Board of Trustees’ deed was bounded on the West by the US Harbor line, which is a line historically established by the War Department (now the U.S. Army Corps of Engineers) on November 24, 1939. This line was to establish the maximum allowable waterward extent of bulkheads and seawalls to avoid impacting navigation. The 152,747.8-square-foot (non-deeded) portion of the marina is located between the seawall and the US Harbor Line and is the subject of this lease request. The 134,370.4-square-foot portion of the marina, which is waterward of the US Harbor Line, is the subject of the waiver of deed restriction.

During discussions, between the City and DEP staff, to resolve pending issues at this site, the City indicated its plans for a private company, Grove Harbor Marina and Caribbean Marketplace, L.L.C. (Grove Harbor), to lease and develop a parcel of adjacent upland property and to operate the marina. A lease between the City and Grove Harbor has been executed for the upland property and marina, but assuming operation of the marina by Grove Harbor is pending Board of Trustees’ approval of this request. The lease the City has with Grove Harbor specifies lease fees based on a minimum annual fee or a percentage of the gross

Board of Trustees

Agenda – July 25, 2000 Substitute Page Thirty-nine

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Substitute Item 25, cont.

revenue of various aspects of the proposed development. The fees change, based on the year during the term, to allow the lessee to build an income base. For example, in Lease year 4, the City will receive 12 percent of the gross revenue from the marina, 5 percent from the marine fueling facility and 10 percent of the gross revenue from the boatyard, activities located predominately on the upland property. In year 10, these percentages change to 15, 5, and 10 percent respectively.

Reconstruction of the western portion of the marina facility has been completed under regulatory permit (Permit No. 132846159). The remainder of the facility within the deeded area has been permitted but not constructed. The City has agreed to pay the negotiated fee of an annual payment of $19,000 or six percent of gross revenues whichever is greater on the deeded portion of the marina and to pay lease fees on the non-deeded portion of the marina, based on the provisions of section 18-21.011(1), F.A.C., which requires assessment of a per square foot rate and the fees based on the gross rental income value. This measure is consistent with other similar waivers the Board of Trustees granted to the City (Coral Reef Yacht Club, No. 19448-E and Bay Shore Properties, Inc., No. 19448-D). The majority of the docking structures located within the deeded area are not built as yet.

At one point, the City had conducted dredging activity at this marina facility without a required regulatory permit. This violation of the regulatory rules has been corrected and addressed by a Consent Order (OGC FILE No. 00-0026). The dredging activity was handled as a regulatory violation, and was not considered a proprietary violation, because it was believed that the activity was located within the deeded area at the time. The requirements for the Consent Order have been mutually agreed upon and the Consent Order was approved by the City Commission on June 8, 2000 and is now under review by the Oversight Board established by the Governor’s Office and then will be pending the signature process. A March 29, 2000 site inspection confirmed that the reconstructed portion of the facility is consistent with the permit conditions and, subject to the execution of the Consent Order, the City should be in compliance with the regulatory requirements of its permits.

The City is requesting a 20-year extended term lease and a 20-year waiver of deed restriction, both with a 20-year renewal option, to coincide with the City’s proposed 40-year lease with Grove Harbor. To qualify for an extended term lease, an applicant must be in compliance with the requirements of section 18-21.008(2), F.A.C. The requested 20-year renewal options for both the lease area and waiver of deed restriction area are expected to be crucial to the financing plans of Grove Harbor, because the renewal options would provide consistency with the 40-year lease term between the City and Grove Harbor. Such requests are uncommon, because section 18-21.008, F.A.C., provides for extended term leases, as well as, lease renewals subject to the lessee’s compliance with the lease term and the statutes and rules of the Board of Trustees in effect at the time of lease renewal. Since the rules already provides for renewals, subject to compliance, staff does not object to the renewal options. Language in both the lease and the Release of Restriction and Reverter agreement will track the existing requirements regarding compliance and also condition the renewal in both the deeded and non-deeded areas to any and all future rules or requirements of the Board of Trustees or its successor. Therefore, staff would recommend approval of the requested 20-year extended term lease and 20-year waiver of deed restriction.

The City is also seeking a disclaimer pursuant to the Butler Act (Chapter 8537, Acts of 1921) and section 253.129, F.S., for an approximate 66,788-square-foot parcel of formerly submerged, sovereignty land that was filled in the 1930s. An approximate 15,180-square-foot portion of this filled area was dredged or dug some years later to create a boat basin that now is part of the marina basin. A U.S. Coast and Geodetic Survey Topographic Map dated 1935 and aerial photographs dated 1948 are supporting evidence that this area was filled prior to the repeal of the Butler Act in Dade County, which was June 11, 1957.

Board of Trustees

Agenda – July 25, 2000 Substitute Page Forty

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Substitute Item 25, cont.

The City is also requesting the Board of Trustees’ after-the-fact authorization for (1) the severance of 650 cubic yards of sovereign material that was dredged from the northwestern portion of the lease area; (2) the reconstruction and placement of 1,200 linear feet of bulkhead along the western face of the marina basin; and (3) the placement of 160 linear feet of riprap along the bulkhead. These activities were permitted without any proprietary authorization during the period that it was believed that the activity was located within the deeded area.

The City has also requested a waiver of the severance fee for the 650 cubic yards of sovereign material located in the northwestern portion of the lease area. Pursuant to section 18-21.011(3)(c), F.A.C., a waiver of the severance fee may be granted if the materials are placed on public property and used for public purposes, or if the dredged material has no economic value. The material that was dredged was determined by Metro-Dade Department of Environmental Resources Management to contain toxic materials, and the City was required to pay a fee for disposal of the material. The material is considered to have no economic value, and staff recommends that the dredge fees be waived.

The existing and proposed marina structures are located in the Biscayne Bay Aquatic Preserve, and would normally be subject to being in the public interest and subject to an extreme hardship test, pursuant to sections 258.397, F.S., and 18-18.006, F.A.C. It is the City’s position that, since this project is largely an after-the-fact reconstruction of a marina that would have qualified as a grandfathered facility under the state’s grandfathered registration programs of 1983 and 1990, that a demonstration of public interest and extreme hardship should not be required. Nevertheless, such a finding has been made.

Staff did a public interest analysis and finds that the project is in the public interest because the marina will (1) provide continued and improved public access to Biscayne Bay; (2) provide continued marine waterfront recreational and visitations opportunities for the general public; (3) revitalization of the upland property and facilities will have a positive impact on the city; (4) the marina development supports the restoration of two historic structures included in the National Register of Historic Places; and (5) development of additional recreational and marine related business opportunities and tax bases, beyond what could be accomplished by municipal efforts, through cooperative efforts with local business entities. Additional measures associated with public interest and mitigation consideration for the regulatory permits include (1) restoration and enhancement of previously altered habitat by removal of exotic vegetation; (2) enhanced shoreline habitat from a previously altered area by utilization of riprap; and (3) required provision for sewage pumpout facilities for marine vessels.

Further, regarding the extreme hardship requirement, staff is also of the opinion that the project qualifies because without approval of the request, a significant contractual and financial burden will impact the City as a result of the misidentification of the deed line. If the error had not occurred and it was known by the parties involved of the correct location of the deed boundary, then the City could have registered the portion of the facility over sovereignty submerged lands as a grandfathered facility. As such, an extreme hardship demonstration would not have been required. In fact, after Hurricane Andrew, the City received and expended funds from the Federal Emergency Management Agency (FEMA) to reconstruct the facility within both the lease and deeded areas. Should this request be unsuccessful, the City would have to absorb the financial burden of both removing the structures and repaying FEMA. Hardship additionally stems from the fact that the expansion of slips into the deeded area is required for the viability of the economic redevelopment of the upland. This includes the restoration of two structures listed in the National Register of Historic Places and the creation of a public market place as a business incubator. The City advises without the marina development as a project component, the upland portion is infeasible, and the entire project would likely be cancelled.

Board of Trustees

Agenda – July 25, 2000 Substitute Page Forty-one

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Substitute Item 25, cont.

The original regulatory permit authorizing the construction of the marina was granted in October 1996. It was subsequently modified in October 1998 to increase the scope of dredging and relocation of riprap. The modified DEP environmental resource permit also authorized fueling facilities and prohibited liveaboards. The regulatory permit review included the review of a variety of environmental issues, including the potential impact of the endangered manatee and storm water specifically as it pertains to increased loading of contaminants into Biscayne Bay Aquatic Preserve. Permit conditions were included to address these concerns including the submission of a Water Quality Net Improvement Plan to reduce the adverse effects of copper and cadmium and to increase circulation at the proposed project site. The plan also addressed additional measure to reduce the overall impacts to water quality. The Florida Fish and Wildlife Conservation Commission, Office of Environmental Services, regarding protection of manatees, stated that this site is identified as a recommended site for marina development and expansion, with no vessel restrictions. This is consistent with the Dade County Manatee Protection Plan, adopted by the Dade County Board of County Commissioners and approved by DEP. The previously issued regulatory permit is consistent with the proprietary authorization of the current request. The proprietary project was noticed pursuant to section 253.115, F.S. The comment period closed on March 31, 2000, and no objections were received.

(See Attachment 25, Pages 1-19)

RECOMMEND APPROVAL OF (1) THE 20-YEAR EXTENDED TERM LEASE, WITH A 20-YEAR RENEWAL OPTION, SUBJECT TO THE SPECIAL APPROVAL CONDITIONS, THE SPECIAL LEASE CONDITION AND PAYMENT OF $15,178.86; (2) THE 20-YEAR WAIVER OF DEED RESTRICTION, WITH A 20-YEAR RENEWAL OPTION, SUBJECT TO THE SPECIAL APPROVAL CONDITION, THE WAIVER OF DEED RESTRICTION CONDITIONS, AND AN ANNUAL PAYMENT OF $19,000 OR SIX PERCENT OF GROSS REVENUES, WHICHEVER IS GREATER; (3) THE DISCLAIMER OF FILLED, FORMERLY SUBMERGED, SOVEREIGNTY LANDS; (4) AFTER-THE-FACT AUTHORIZATION FOR THE SEVERANCE OF 650 CUBIC YARDS OF MATERIAL, CONSTRUCTION OF THE BULKHEAD AND PLACEMENT OF RIPRAP; (5) A WAIVER OF THE SEVERENCE FEE; AND (6) AN AFFIRMATIVE FINDING THAT EXTREME HARDSHIP EXISTS AND THE PROJECT IS IN THE PUBLIC INTEREST

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Item 26 Mobro Marine, Inc. Recommended Consolidated Intent

DEFERRED FROM THE JUNE 13, 2000 AGENDA

REQUEST: Consideration of an application for (1) a modification of a five-year sovereignty submerged lands lease to increase the preempted area from 21,050 square feet to 324,362.86 square feet, more or less; and (2) the construction of a marine railway for an existing commercial barge facility.

Board of Trustees

Agenda – July 25, 2000 Substitute Page Forty-one A

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Item 26, cont.

COUNTY: Clay

Lease No. 100003048

Application No. 10-149470-001-ES

APPLICANT: Mobro Marine, Inc.

LOCATION: Section 38, Township 06 South, Range 26 East, in the St. Johns River, Class III Waters, within the local jurisdiction of the City of Green Cove Springs

Aquatic Preserve: No

Outstanding Florida Waters: No

Manatee Aggregation Area: No

Manatee Protection Speed Zone: No

CONSIDERATION: $288,560.22, representing (1) $44,772.87 as the initial lease fee computed at the base rate of $0.1183 per square foot and including the 25 percent surcharge

(AGENDA CONTINUED ON NEXT PAGE)

Board of Trustees

Agenda – July 25, 2000 Page Forty-two

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Item 26, cont.

payment for the additional area; (2) $226,287.35 as lease fees in arrears, including interest, for the unauthorized use of 112,254.98 square feet of sovereignty submerged lands from April 6, 1987 through May 23, 2000; and (3) $17,500 as an administrative fine for the unauthorized use of sovereignty submerged lands. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable.

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

The lessee is proposing to modify an existing lease to construct a pile-supported marine railway at its existing commercial barge facility. The marine railway will be 200 feet long by 50 feet wide, and will be used to move the lessee’s largest barges onto the upland property for maintenance and repairs. The existing facility operations involve the mooring of barges for temporary storage and repairs, and the mooring of associated support vessels. The facility has an existing dry dock platform (synchrolift), that is used to lift barges out of the water for repairs, and also to move barges onto the upland property for maintenance and repairs. The

existing synchrolift was approved by the Board of Trustees on January 21, 1975, under marina license ML 10-30-3048, which authorized the preemption of 12,896 square feet, more or less, of sovereignty submerged lands. The marina license was subsequently converted to a sovereignty submerged lands lease which was renewed on January 22, 1985. File records from 1991 indicate that the preempted area for the synchrolift was increased to 21,050 square feet, more or less, apparently the result of a specific purpose survey of the area.

The lessee submitted an application for an environmental resource permit in December 1998 to construct a marine railway. During DEP staff’s review of the railway application and the project site, significant discrepancies were found relating to the lessee’s 21,050-square-foot sovereignty submerged lands lease area. The discrepancies included the unauthorized mooring of barges and vessels, preempting a much larger area of sovereignty submerged lands (estimated total of 333,662 square feet, more or less) than was covered under the 21,050-square-foot lease, and that a modified sovereignty submerged lands lease related to a subsequent expansion of the initial lease was not properly executed and recorded by the lessee.

Board of Trustees

Agenda – July 25, 2000 Page Forty-three

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Item 26, cont.

Subsequently, the actual preempted area was determined by a certified survey to be 324,362.86 square feet, more or less.

On February 4, 1999, the DEP sent written notification of the unauthorized mooring activities to the lessee. On October 13, 1999, the DEP and the lessee entered into a temporary use agreement (TUA) for the estimated 333,662-square-foot area preempted by the facility operations. The expiration date of the TUA is August 1, 2000, or upon proper execution of a modified sovereignty submerged lands lease, if approved. The lessee submitted a payment of $38,571.33 as lease fees for the estimated 333,662-square-foot area. However, the lease feesin arrears and an administrative fine due for the unauthorized use of the sovereignty submerged lands for the period April 6, 1987 to May 23, 2000 is $226,287.35 and $17,500, respectively. These fees and fines are included herein as part of this item for consideration by the Board of Trustees along with consideration of the authorization for the marine railway and overall lease modification. The DEP did not collect payment of these additional fees and fine, as is typically a part of executing a TUA, due to the amount involved and because of the history of the project as indicated by the lease file.

In addition to the background discussed above, information in the lease file for this facility indicates that on April 6, 1987 and March 11, 1988 staff of the former Department of Natural Resources (DNR) conducted compliance inspections of the facility. The compliance inspection reports state that the lessee was docking and mooring vessels outside of the leased premises. On June 3, 1988, the DNR notified the lessee, in writing, that the facility was not in compliance with the terms and condition of the existing lease (21,050 square feet). The notice requested the removal of all vessels moored outside of the leased premises and removal of existing offshore cluster piles, or the submittal of an application to expand the lease area. The lessee submitted a lease modification request on or about August 1988. However, the application was eventually deactivated by DNR on March 14, 1989 for failure of the lessee to submit requested additional information to complete the application. The file was sent to the DNR investigative section, and a compliance inspection and appropriate enforcement proceedings were requested, if necessary.

The DNR file does not indicate that any enforcement actions were ever initiated, or that the file was reactivated, or that a new application was submitted. However, on November 30, 1992, the DNR sent a modified lease instrument for a 25-year term to the lessee that authorized the preemption of 212,107.88 square feet, more or less, of sovereignty submerged lands (inclusive of the existing 21,050 square foot lease). The DNR file also does not contain sufficient documentation or information to determine the specific sequence of events leading to this modified lease. The lessee did not sign and return the modified lease, therefore it was not fully executed and recorded. Nevertheless, DEP has sent invoices to the lessee for the yearly lease fees due for the 212,107.88-square-foot area. The lessee has been paying the annual fees and the fees are current. Since the lease was not executed properly, but the yearly lease fees have been paid, there exists a "tenancy at will" situation at this facility, pursuant to chapter 83, F.S. The "tenancy at will" runs year-to-year, as the lessee submits annual lease fees and the lessor accepts payment.

In addition to the 212,107.88-square-foot area covered in the non-executed lease, an additional 112,254.98 square feet, more or less, has been used as mooring area, and has been preempted by the facility operations. The DNR file does not indicate why this area was not included in the non-executed 1992 modified lease. It may be due to the DNR interpretation of preempted area at that time, although this can not be confirmed. However, under the current rule this area is considered to be preempted and is included in this request to the Board of Trustees. The

Board of Trustees

Agenda – July 25, 2000 Page Forty-four

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Item 26, cont.

DEP is recommending that lease fees in arrears, plus interest, totaling $226,287.35 be collected for the period from April 6, 1987 to May 23, 2000.

The non-executed 1992 modified lease term was for a 25-year period. Based upon the unauthorized mooring activities and failure to execute the 1992 lease modification, the lessee has not complied with section 18-21.008(2)(b), F.A.C., and therefore does not qualify for an extended term lease. The DEP recommends the lease be granted for a five-year term. Also, the barge repair facility is not a marina open to the public on a first-come, first-serve basis and does not qualify for a 30 percent discount on the lease fees, pursuant to the qualifying criteriaof section 18-21.011(1)(b)2, F.A.C. Therefore, DEP recommends that the 30 percent discount on the lease fees granted in the non-executed 1992 modified lease be eliminated.

In addition to the above, section 18-21.011(1)(b)3, F.A.C., requires a one-time surcharge equivalent to 25 percent of the base fee for all leases and new additional areas. The lessee was not billed for the 25 percent surcharge on the additional preempted area (191,057.59 square feet) authorized by the (non-executed) 1992 modified lease. Therefore, payment of $3,080.80 for the 25 percent surcharge is included in this consideration. Payment of $3,319.94 as the 25 percent surcharge for the additional 112,254.98 square feet of preempted area is also included in this consideration.

Due to the history of non-compliance at this facility, the DEP is recommending additional measures to prevent future unauthorized activities on sovereignty submerged lands. The DEP recommends the removal of all existing offshore cluster/mooring piles outside of the leased premises. The DEP also recommends that the lessee adequately mark (i.e. with buoys or other

suitable system) the lease boundaries to clearly delineate the limits of the leased premises. These two measures have been addressed as special approval conditions.

The DEP environmental resource permit does not authorize sewage pumpout facilities or liveaboards. Upland fueling facilities already exist at the facility and are authorized in the existing lease instrument. The recommendations of the Florida Fish and Wildlife Conservation Commission regarding protection of manatees are addressed in the permit and special lease conditions. The project was not required to be noticed, pursuant to section 253.115(5)(i), F.S.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S.; however, the Department of Community Affairs (DCA) determined that the plan was not in compliance. In accordance with a compliance agreement between the DCA and the local government, an amendment has been adopted which brought the plan into compliance. The proposed marine railway is consistent with the adopted plan as amended according to a letter received from Clay County dated March 17, 1999.

RECOMMEND WITHDRAWAL

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