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AGENDA
BOARD OF TRUSTEES OF
THE INTERNAL IMPROVEMENT TRUST FUND
SEPTEMBER 11, 2001

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Item 1 Green Surplus Land Sale

REQUEST: Consideration of a request to surplus an 80-acre parcel of state-owned land in Alachua County.

COUNTY: Alachua

APPLICANT: Jesse M. Green

LOCATION: Section 24, Township 07 South, Range 18 East

CONSIDERATION: $85,000 to be deposited in the Internal Improvement Trust Fund

STAFF REMARKS: The Board of Trustees owns this parcel by virtue of a patent from the U.S. Congress for swamp and overflowed lands. A certificate of Board of Trustees ownership was recorded in the public records of Alachua County on September 17, 1991. No record of any subsequent conveyance of this tract by the Board of Trustees was found. On October 17, 2000, the Acquisition and Restoration Council recommended that this property be surplussed and sold to Jesse M. Green.

The Department of Environmental Protection's (DEP) Division of State Lands received a request to surplus and convey this 80-acre tract in Alachua County to Jesse M. Green in order to give Mr. Green a clear chain of title to the property. Mr. Green acquired his property in 1984, and his deed's legal description included the Board of Trustees-owned 80-acre tract. The title work done in preparation for his purchase did not disclose the Board of Trustees' ownership. Mr. Green has been paying real estate taxes on the property and farming the property since 1984, as well as fencing and building a barn on the property. When title work was again completed for his ownership in order to obtain a mortgage in early 1999, the Board of Trustees' ownership of the 80 acres was discovered.

DEP staff conducted a site inspection of the property, and determined that the property is currently being used as a cow pasture. The property appears high and dry, with one wet area that is less than one-fourth acre in size, and is used by Mr. Green as a watering hole for his cows. The closest significant water body to the property is the Santa Fe River, which is approximately five miles away. The property does not have legal access, and there are no state-owned or managed lands in close proximity. Conveyance of the property to a person other than Mr. Green would cause an undue hardship on Mr. Green. This parcel is not currently under lease.

James L. Bolton, MAI, SRA and State-Certified General Real Estate Appraiser, appraised the property on February 8, 2001. Mr. Bolton estimated the market value of the property at $80,000. Andrew V. Santangini Jr., MAI, and State-Certified General Real Estate Appraiser, prepared a second appraisal with a market value conclusion of $80,000. The date of value of the second appraisal is February 8, 2001. Pursuant to section 253.034(6)(h), F.S., lands determined to be surplus pursuant to this subsection which were acquired by a unit of government by gift, donation, grant, quit-claim deed, or other such conveyance where no monetary consideration was exchanged, may be sold based on one appraisal. Staff negotiated a purchase amount of $85,000.

In accordance with sections 253.111 and 253.034(6)(f), F.S., Alachua County and state agencies were notified of the sale and did not express any interest in the property. Pursuant to section 253.115, F.S., property owners within 500 feet of the subject property were also notified and no objections were received.

Board of Trustees
Agenda - September 11, 2001
Page Two

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Item 1, cont.

A consideration of the status of the local government comprehensive plan was not made for this item. DEP has determined that surplus land sales are not subject to the local government planning process.

(See Attachment 1, Pages 1-15)

RECOMMEND APPROVAL.

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Item 2 Hillsborough County Option Agreement/Managing Agency Designation/ Management Policy Statement Confirmation/Alderman's Ford Addition Florida Forever Project

REQUEST: Consideration of (1) an option agreement to acquire 951.50 acres within the Alderman's Ford Addition Florida Forever project from Hillsborough County; (2) designation of Hillsborough County as the managing agency; and (3) confirmation of the management policy statement.

COUNTY: Hillsborough

LOCATION: Sections 10 through 14, Township 30 South, Range 21 East; Section 18, Township 30 South, Range 22 East

CONSIDERATION: $1,532,100 (Board of Trustees' share of County's purchase price)

APPRAISED
BY
SELLER'S
TRUSTEES'
Hicks
Entreken
APPROVED
PURCHASE
PURCHASE
OPTION
PARCEL
ACRES
(07/01/90)
(07/01/90)
VALUE
PRICE
PRICE
DATE
Sheldon
531.38
$1,490,000
$1,430,000
$1,490,000
$1,477,200
$738,600*
150 days after
BOT approval
(07/01/93)
(07/02/93)
Joo
343.70
$1,340,000
$1,350,000
$1,350,000
$1,396,923
$ 675,000**
Dohring
(10/13/94)
West
76.42
$250,000
$ 245,000
$ 237,000
$ 118,500***
951.50
$3,085,000
$3,111,123
$1,532,100
(101%)
(50%)

* $1,390 per acre (The Board of Trustees' share of the $2,780/acre purchase price)
** $1,964 per acre (The Board of Trustees' share of the $4,064/acre purchase price)
*** $1,550 per acre (The Board of Trustees' share of the $3,101/acre purchase price)


STAFF REMARKS: The Alderman's Ford Addition project is a "B" group project on the Florida Forever Full Fee Project List approved by the Board of Trustees on May 15, 2001, and as a partner acquisition, is eligible for negotiation. The project contains 1,329 acres, of which these are the first to be acquired by the Board of Trustees. After the Board of Trustees approves this agreement, 375 acres or 28 percent of the project will remain to be acquired.

Pursuant to a multi-party agreement entered into between the Division of State Lands (DSL) and Hillsborough County (County), the County purchased the properties from Cathryn G. Sheldon in 1990; from Sally H., Leah H., Joe W. and Myoung J. Joo in 1993; and from John West in 1995. If this item is approved, the Board of Trustees will reimburse the County for the lesser of 50 percent of the approved value or 50 percent of the County's purchase price. In

Board of Trustees
Agenda - September 11, 2001
Page Three

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Item 2, cont.

no event will the Board of Trustees' purchase price exceed 50 percent of the approved value. Title to the property acquired will vest in the Board of Trustees.

All mortgages and liens will be satisfied at the time of closing. The southeastern portion of the Joo parcel contains a mobile home, owned and occupied by a site security officer employed by the County. The officer and the mobile home will remain on the site. Since the mobile home is not the property of the County, it was not included in the appraisal. Additional improvements consist of fencing, a partial irrigation system, storage shed and cow pen. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to the Department of Environment 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.

A title insurance policy, a survey and an environmental site assessment will be provided by the seller. The purchaser will reimburse 50 percent of the seller's cost for the title insurance policy, the survey and the environmental site assessment.

Eastern Hillsborough County, in the growing Tampa Bay area, is a region of agriculture and phosphate mines, with a few natural areas left. The Alderman's Ford Addition project will add one of the natural areas - hardwood forests and flatwoods along the Alafia River - to a county park, protecting habitat for wildlife and the extremely rare Florida golden aster, helping to maintain the water quality of the river, and providing more areas for the public to enjoy anything from nature study to hiking and horseback riding.

Pursuant to section 259.032(9)(b)2., F.S., staff recommends that the Board of Trustees designate Hillsborough County as the managing agency for this site. It will be managed as a county park and recreation area, with such uses as hiking, bicycling, camping and nature study.

Section 259.032(9)(b)2., F.S., requires that the Board of Trustees, concurrent with its approval of the initial acquisition agreement within a project, "evaluate and amend, as appropriate, the management policy statement for the project as provided by section 259.035, F.S., consistent with the purposes for which the lands are acquired." The management policy statement for this project was included in the 2001 Florida Forever Annual Report adopted by the Board of Trustees on May 15, 2001. Staff recommends that the Board of Trustees confirm the management policy statement as written.

The primary goal of management of the Alderman's Ford Addition project is to provide areas, including recreational trails, for natural-resource-based recreation. The project will be managed under the single-use concept of protecting or restoring the Alafia River, hardwood and pine forests, and sensitive species, while allowing recreation that will not degrade these natural resources. Growing-season burns will be necessary to preserve and restore fire-dependent communities. The project has the location (next to Alderman's Ford County Park), size, and shape to fulfill the primary management goal.

This property will be managed by the County as a county park and recreation area, with such uses as hiking, bicycling, camping and nature study.

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

Board of Trustees
Agenda - September 11, 2001
Page Four

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Item 2, cont.

(See Attachment 2, Pages 1-37)

RECOMMEND APPROVAL.


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Substitute Item 3 Eminent Domain Authorization/Delegation of Authority/Golden Gate Estates/Save Our Everglades (Phases VII & VIII) Florida Forever Project

REQUEST: Consideration of a request to (1) direct the Department of Environmental Protection to acquire fee simple title to all remaining land within the portion of the Save Our Everglades Florida Forever project (Phases VII and VIII) lying south of I-75 on which two bona fide offers have been made by the exercise of the power of eminent domain pursuant to the provisions of chapters 259, 73 and 74, F.S.; and (2) delegate authority to the Secretary of the Department of Environmental Protection to accomplish the acquisition as described herein through negotiation or condemnation, including authority to prepare and execute all necessary parcel-specific condemnation resolutions.

COUNTY: Collier

STAFF REMARKS: The Save Our Everglades project is an "A" group project on the Florida Forever Small Parcel Project List approved by the Board of Trustees on May 15, 2001. That portion of the project lying south of I-75, commonly referred to as Golden Gate Estates South, contains 55,566.2 acres, of which 48,568.69 acres have been acquired or are under agreement to be acquired, leaving 6,997.51 acres, or 13 percent, remaining to be acquired. The Golden Gate Estates South portion of this project includes the Southern Golden Gate Estates subdivision and surrounding acreage tracts bordered by I-75 to the north, US-41 to the south and the Fakahatchee Strand and Belle Meade Florida Forever projects to the east and west, respectively.

On January 23, 2001, the Board of Trustees recognized that (1) property within the Save Our Everglades Florida Forever project lying south of I-75 is of special importance to the state; (2) the acquisition of the land is necessary to protect hydrological connections among Big Cypress National Preserve, Fakahatchee Strand State Preserve, and Everglades National Park, and to protect and restore the Everglades, which is an endangered natural resource of unique value to the state; and (3) the failure to acquire this property will result in irreparable loss to the state and seriously impair the state's ability to manage or protect other state-owned lands. DEP has been directed to proceed with the acquisition of the parcels in Phases VII and VIII.

Public acquisition is essential to continue the conservation, preservation and restoration of this endangered portion of the western Everglades ecosystem that is a vital component of the Comprehensive Everglades Restoration Plan (CERP). Conserving this land is critical to the ecosystem in the western Everglades, its wildlife and the water quality throughout the area.

In 1996, the hydrological restoration plan was identified as a "Critical Project" under the Federal Water Resources Development Act making it eligible for federal funds. The project was subsequently added to CERP.

The acquisition will allow the restoration of significant wetlands crucial to the reestablishment of the historic water flow pattern in the western Everglades. Nearly half of this region's water flows into Everglades National Park.

Board of Trustees
Agenda - September 11, 2001
Substitute Page Five

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Substitute Item 3, cont.

Purchasing this portion of the Save Our Everglades Florida Forever project will also help preserve and restore the fresh water flow necessary for maintaining the rich productivity of Gulf Coast estuaries, such as Rookery Bay and Ten Thousand Islands. Moreover, the timely implementation of the hydrological restoration plan will restore important habitat for numerous endangered and threatened species, including the Florida panther, one of the world's most endangered mammals.

Public acquisition of this portion of the Save Our Everglades Florida Forever project will preserve a large piece of South Florida's unique ecosystem. Ultimately, this will contribute to the formation of a continuous public conservation corridor extending across South Florida from the Gulf Coast to approximately ten miles from the Atlantic Ocean. It will help protect the western Everglades ecosystem from encroachment of residential, commercial and industrial development.

In 1999, the Big Cypress Basin Board advised DEP that the hydrologic restoration was scheduled to commence as early as October 2002, and 100 percent public ownership would be required. After multiple rounds of appraisals and offers over the last fifteen years, nearly 4,000 parcels in Southern Golden Gate Estates and the surrounding area still remained to be acquired. Due to the relatively large number of remaining parcels, a plan was developed to increase the percentage of parcels acquired by voluntary means while assuring that all lands are acquired by October 2002. The first step in the plan was to seek authority from the Board of Trustees to offer amounts in excess of the appraised value, in an effort to acquire as much property as possible without having to resort to the use of eminent domain. On July 11, 2000, the Board of Trustees authorized the Director of DSL, or her designee, to extend bona fide offers and approve any contract for the sale and purchase of land at $5,000 over or up to 125 percent of the appraised value, whichever is greater, when the purchase price per parcel does not exceed $50,000, and at up to 125 percent of the appraised value when the purchase price per parcel exceeds $50,000.

In anticipation that a substantial portion of the remaining parcels will still require the use of eminent domain to assure that all lands are in public ownership by the time the restoration is to begin, preliminary meetings have been held with the Chief Judge in Collier County. Current projections are that it may take nearly two years to process the parcels that cannot be acquired voluntarily through the court system of Collier County. To assure a constant flow of parcels to the Office of the Attorney General, the plan contemplates the processing of parcels in multiple phases over the next 18 months.

On the advice of the Office of the Attorney General, appraisals were updated to assure that offers would satisfy the bona fide offer requirement and second bona fide offers were tendered to the 462 owners (469 parcels) in Phase VII, and to the 186 owners (186 parcels) in Phase VIII on July 26, 2001. The initial mailing and follow-up negotiations with the owners within Phase VII resulted in the successful negotiation and approval of contracts for 164 of the 469 parcels or 35 percent of Phase VII. Negotiations for the acquisition of the 305 remaining parcels in Phase VII have reached an impasse; however, the bona fide offer requirement of section 259.041(14), F.S., has been satisfied. The initial mailing and follow-up negotiations with the owners within Phase VIII resulted in the successful negotiation and approval of contracts for 54 of the 186 parcels or 29 percent of Phase VIII. Negotiations for the acquisition of the 132 remaining parcels in Phase VIII have reached an impasse; however, the bona fide offer requirement of section 259.041(14), F.S., has been satisfied. In the event one or more of the parcels placed under contract cannot close for any reason, the authority requested today covers all 655 parcels in Phases VII and VIII. Parcels under contract will be

Board of Trustees
Agenda - September 11, 2001
Substitute Page Six

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Substitute Item 3, cont.

held by DSL, and only parcels that have reached impasse or parcels that cannot be closed by voluntary means will be turned over to the Office of the Attorney General.

Section 259.041(14), F.S., authorizes the Board of Trustees, by majority vote of all of its members, to direct DEP to exercise its power of eminent domain pursuant to the provisions of chapters 73 and 74, F.S. Eminent domain may be used to acquire any of the property on the Florida Forever "A" group project list if (1) the state has made at least two bona fide offers to purchase the land through negotiation and an impasse between the state and the land owner has been reached; and (2) the land is of special importance to the state because (a) it involves an endangered or natural resource and is in imminent danger of being developed; (b) it is of unique value to the state and failure to acquire the property would constitute an irreparable loss to the state; or (c) the failure to acquire the property would seriously impair the state's ability to manage or protect other state-owned lands.

The parcels included in Phases VII and VIII of the Save Our Everglades Florida Forever project lying south of I-75 meet these criteria: (1) the state has made at least two bona fide offers and has been unable to acquire these parcels through negotiation; and (2) in section 373.4592(1), F.S., the legislature has recognized that the Everglades ecological system is unique in the world and one of Florida's great treasures. They also recognize that the CERP is important for restoring the Everglades ecosystem and sustaining the environment, economy, and social well-being of South Florida. The Everglades ecological system is endangered as a result of adverse changes in water quality, and in the quantity, distribution, and timing of flows and, therefore, must be restored and protected. The hydrological restoration of these lands is an essential component of the CERP.

Pursuant to the Board of Trustees' eminent domain policy, DSL has mailed proper notice to all owners of record in Phases VII and VIII at least 45 days preceding this Board of Trustees' meeting. In accordance with the eminent domain policy, the notice advised the owners that homesteaded property was exempt from eminent domain without the owner's written permission. As of September 5, 2001 at 5:00 p.m., only 8 responses to the written notice had been received. While 6 of the owners representing 6 parcels objected to the use of eminent domain, they only represent one percent of the remaining ownerships in Phases VII and VIII. Additionally, none of the respondents claimed the property involved to be their homestead. Based on research of tax records by staff, there does not appear to be any homesteaded property within Phases VII and VIII. If it is later determined that there is any homesteaded property and the owner has not given written consent, that parcel will be excluded from the eminent domain process unless the Board of Trustees waives its policy on homestead property. If the Board of Trustees approves this item, DSL intends to amend its existing contract with the Office of the Attorney General to handle the condemnation of these parcels. Once second bona fide offers are tendered on additional groups of parcels, staff will return to the Board of Trustees periodically to seek authority to pursue those parcels that have reached impasse or parcels that cannot be closed by voluntary means. It is anticipated that there may be as many as ten such groups or phases.

The property will be managed by the Department of Agriculture and Consumer Services, Division of Forestry as an addition to Picayune State Forest. The South Florida Water Management District will coordinate the implementation of the hydrologic restoration project.

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

(See Attachment 3, Pages 1-28)

RECOMMEND APPROVAL

Board of Trustees
Agenda - September 11, 2001
Substitute Page Seven

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Substitute Item 4 Pier 81 Marina, Inc., Recommended Consolidated Intent

DEFERRED FROM THE AUGUST 28, 2001 AGENDA

REQUEST: Consideration of an application to modify an existing 25-year sovereignty submerged lands lease to (1) assign the lease to the current riparian upland owner; (2) consolidate two commercial marina leases into one lease and cancel one of the leases; and (3) increase the lease area for a private commercial marina from 109,721 square feet, more or less, to 156,972 square feet, more or less.

COUNTY: Collier
Lease No. 110011195
ERP No. 11-0141447-001

APPLICANT: Pier 81 Marina, Inc.

LOCATION: Section 05, Township 52 South, Range 26 East, in the Marco River, Class II waters, within the local jurisdiction of the city of Marco Island

Aquatic Preserve: No

Outstanding Florida Waters: No

Designated Manatee COUNTY: Yes, with an approved manatee protection plan

Manatee Aggregation Area: No

Manatee Protection Speed Zone: Yes, idle/slow speed zone

CONSIDERATION: $23,537.53, representing (1) $20,524.23 as the initial lease fee computed at the base rate of $0.1216 per square foot, and including the initial 25 percent surcharge payment for the additional area; and (2) $3,013.30 as the annual lease fee for the extended term lease calculated as the annual lease fee times 1.25, pursuant to section 18-21.011(1)(a)1, F.A.C. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable. The lease fee may be adjusted based on six percent of the gross rental income pursuant to section 18-21.011(1)(a)1, F.A.C.

STAFF REMARKS: In accordance with rules adopted pursuant to sections 373.427(2) and 253.77(2), F.S., the attached "Consolidated Notice of Intent to Issue" contains a recommendation for issuance of both the permit required under part IV of chapter 373, F.S., and the authorization to use sovereignty submerged lands under chapter 253, F.S. The Board of Trustees is requested to act on 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 a permit, the Department of Environmental Protection (DEP) will issue a "Consolidated Notice of Intent to Issue" that will contain general and specific conditions. If the Board of Trustees denies the use of sovereignty submerged lands, whether or not the activity qualifies for a permit, DEP will issue a "Consolidated Notice of Denial."

The applicant is proposing to modify existing lease no. 110011195 by: (1) incorporating the 57,850-square-foot area from lease no. 110956205 into this lease; and (2) leasing an additional 47,251 square feet of sovereignty submerged lands. Lease no. 110011195 would then contain 156,972 square feet. Lease no. 110956205 would then be cancelled.

Lease no. 110011195, containing 51,871 square feet, authorizes a 79?slip commercial docking facility for an upland restaurant, ship's store, and retail shop. Private recreational, commercial fishing, and rental boats, ranging in length from 17 to 80 feet, historically used that facility. The lease was originally approved by the Board of Trustees on May 2, 1978. The lease has subsequently been renewed and modified to include unregistered grandfathered structures and to reflect changes in upland ownership. The existing lease does not prohibit cruises to nowhere. All of the structures were removed by the applicant pursuant to an environmental resource permit (no. 11-0141447-002) issued by DEP on October 1, 1999.

Board of Trustees
Agenda - September 11, 2001
Substitute Page Eight

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Substitute Item 4, cont.

Lease no. 110956025, containing 57,850 square feet, authorizes a partially, over-water restaurant and a 36?slip commercial docking facility for an upland restaurant. The existing lease does not prohibit cruises to nowhere. The lease was originally approved by the Board of Trustees on May 6, 1980. The lease has subsequently been renewed and modified to include unregistered grandfathered structures and to reflect changes in upland ownership. All of the structures were removed by the applicant, pursuant to an environmental resource permit (no. 11-0141447-002) issued by DEP on October 1, 1999.

There will be four multi-slip docks -- A, B, C, and D -- connected by a marginal access dock. Dock A is designed to accommodate one 107-foot-long wet slip, seven 55-foot-long wet slips, and nine 44-foot-long wet slips. Dock B is designed to accommodate one 86-foot-long wet slip and eighteen 39-foot-long wet slips. Dock C is designed to accommodate nineteen 39-foot-long wet slips. Dock D is designed to accommodate one 107-foot-long wet slip, seven 55-foot-long wet slips, and nine 44-foot-long wet slips. The docking facility will have 72 designated wet slips and one temporary mooring slip, for a total of 73 wet slips. This represents a reduction of 42 wet slips from the 115 slips currently authorized by the two existing leases. The modified lease will prohibit cruises to nowhere.

The docking facility will be owned and operated as a private commercial marina in conjunction with the applicant's riparian upland commercial marina property. A Development Agreement for this project, approved by the city of Marco Island on September 21, 1998, limits use of the docking facility to private recreational vessels. Access to the docking facility will be limited to slip owners/lessees and their guests. Rental boats, tour boats, charter boats, public gas or fuel sales, excursion boats, boat sales, and public marina stores will be prohibited. The boat slips may be sold or leased to any private boat owner wanting to keep their boat at the docking facility, on a non-exclusive basis. The upland marina property will include a dockmaster building and vehicle parking. The dockmaster building will provide bathrooms, showers and laundry facilities for marina patrons. The dockmaster will be responsible for security of the boats, and for providing assistance to boat slip owners/lessees. Fuel sales shall be also limited to wet slip owners/lessees and their guests.

A standard condition in sovereignty submerged lands leases clearly states the Board of Trustees' interest in the lands being leased, as follows:

Lessee shall make no claim of title or interest to said lands hereinbefore described by reason of occupancy or use thereof, and all title and interest to said land hereinbefore described is vested in the Lessor. The Lessee is prohibited from including, or making any claim that purports to include, said lands described or the Lessee's leasehold interest in said lands into any form of private ownership, including but not limited to any form of condominium or cooperative ownership. The Lessee is further prohibited from making any claim, including any advertisement, that said land, or the use thereof, may be purchased, sold, or re-sold.

A special lease condition will require the boat slip rental agreement between the applicant and boat slip owners/renters to also clearly state the Board of Trustees' ownership of the submerged lands at the marina, and that the boat slip owner/renter does not obtain any title to, or interest in, sovereignty submerged lands. The purchase agreement for each wet slip will also state that use of each slip is subject to renewal of the lease by the Board of Trustees, and if the lease is not renewed, use of the slip terminates.

Board of Trustees
Agenda - September 11, 2001
Substitute Page Nine

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Substitute Item 4, cont.

The Development Agreement authorizes a separate corporation -- Pier 81 Development Corporation -- to own and operate a 76-unit condominium (Pier 81 Condominium) currently under construction adjacent to the landward side of the upland marina property. The upland marina property and associated docking facility will be operated separately from the condominium. The Development Agreement states that purchasers of residential units in the adjacent Pier 81 Condominium will be allowed to lease or purchase boat slips at the marina. This is reflected in the Planned Unit Development (PUD) approval that is incorporated into the Development Agreement.

The Declaration of Condominium for Pier 81 Condominium does not contain any language pertaining to use of the docking facility. However, it states that there is an easement in favor of the Pier 81 Condominium association allowing unit owners pedestrian and vehicular access to a previously proposed boardwalk adjacent to the condominium property and located on the Marco River. The Declaration of Condominium further provides that each unit owner will have the right to use and enjoy the previously proposed boardwalk. The DEP expressed concerns to the applicant about the easement representing a potential encumbrance of sovereignty submerged lands. As a result, the applicant has agreed to a special approval condition requiring the applicant to provide documentation, acceptable to DEP, evidencing that there are no encumbrances of sovereignty submerged lands at the project site, including, if necessary, the modification of the Declaration of Condominium for Pier 81 Condominium. Another special approval condition will require the applicant to provide documentation from the City of Marco Island indicating that this change is consistent with the Development Agreement entered into between the City of Marco Island and the applicant, and the Planned Unit Development approved by the City of Marco Island. The applicant has also agreed to redesign the boardwalk so that its configuration, dimensions and function are that of a marginal dock providing access to the boat slips. The marginal dock will be eight feet wide except for four triangular shaped areas, approximately 150 square feet each that have been designed to provide handicapped access to the boat slips at Docks B and C consistent with the Americans with Disabilities Act.

Pursuant to section 18-21.004(4)(a), F.A.C., the 76-unit condominium would be limited to 27 wet slips, if the docking facility was proposed to be used in conjunction with the condominium. To ensure that the docking facility is consistent with the rule, a special lease condition has been included to prohibit the applicant from selling or leasing more than 27 slips to owners of Pier 81 Condominium units. Another special lease condition will require the applicant to provide annual reports to DEP containing the names and addresses of all unit owners in Pier 81 Condominium and of all boat owners using the docking facility, along with the vessel registration numbers of all vessels using the docking facility. These conditions are consistent with previous Board of Trustees actions pertaining to these types of projects.

DEP's environmental resource permit will authorize fueling facilities and sewage pumpout facilities, which are authorized in existing lease no. 110011195 and will remain authorized in the modified lease. The environmental resource permit and the modified lease will prohibit liveaboards. However, the environmental resource permit will authorize overnight occupancy of vessels. Therefore, the lease will include a special lease condition to authorize vessels to be occupied on an overnight basis.

Specific conditions in the environmental resource permit will require the applicant to develop and implement a Marina Operations Plan acceptable to DEP prior to commencement of construction of the docking facility. The Marina Operations Plan will require: a dockmaster to be present daily; fuel spill containment equipment; sewage pumpout facilities; and training for marina staff in all phases of marina operations.

Board of Trustees
Agenda - September 11, 2001
Substitute Page Ten

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Substitute Item 4, cont.

Recommendations from the Florida Fish and Wildlife Conservation Commission (FFWCC), Bureau of Protected Species Management, regarding protection of manatees have been addressed in DEP's environmental resource permit and/or in the lease. In addition, Collier County has an approved manatee protection plan. FFWCC has stated that the proposed project appears to be consistent with the approved manatee protection plan.

A proposed special lease condition will require the applicant to ensure that the purchaser/renter of any slip at the docking facility enters into a signed agreement, between the lessee and the purchaser/renter, stating that the slip purchaser/renter agrees to comply with all local, state, and federal manatee protection speed zones.

The proposed project will be located within the 25-foot setback area from the adjacent riparian lines on both sides of the project. The applicant has obtained a waiver from the affected adjacent property owner to the south. A special approval condition requires the applicant to obtain a setback waiver in a format acceptable to DEP from the affected adjacent property owner to the north.

The current modified lease request was not required to be noticed due to an exemption for lease modifications, pursuant to section 253.115(5)(i), F.S.
A June 13, 2001 inspection showed that each of the leased docking facilities had been removed. Prior to removal of the facilities, each lessee was in compliance with the respective lease.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S. The Department of Community Affairs determined that the plan was in compliance. The proposed action is consistent with the adopted comprehensive plan according to a letter received from the city of Marco Island.

(See Attachment 4, Pages 1-41)

RECOMMEND APPROVAL SUBJECT TO THE SPECIAL APPROVAL CONDITIONS, THE SPECIAL LEASE CONDITIONS, AND PAYMENT OF $23,537.53

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Substitute Item 5 David G. & Rita Law Lease Revocation

REQUEST: Authorization to revoke an existing 25-year sovereignty submerged land lease containing 30,296 square feet, more or less.

COUNTY: Collier
Lease No. 111536925
Lessee: David G. Law and Rita Law (d/b/a Goodland Bay Marina)

APPLICANT: Department of Environmental Protection (DEP)


Board of Trustees
Agenda - September 11, 2001
Substitute Page Eleven

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Substitute Item 5, cont.

LOCATION: Section 18, Township 52 South, Range 27 East, in Blue Hill Creek, Class II Waters, within the local jurisdiction of Collier County

Aquatic Preserve: Yes, Rookery Bay, Resource Protection Area III

Outstanding Florida Waters: Yes

Designated Manatee COUNTY: Yes, with an approved manatee protection plan

Manatee Aggregation Area: No

Manatee Protection Speed Zone: Yes, idle/slow speed zone

STAFF REMARKS: This request is being presented for Board of Trustees' consideration because of the lessee's flagrant and repetitive violations of the lessee's sovereignty submerged lands lease, Florida Statutes, and Florida Administrative Codes. The lessee has shown a pattern of non-compliance since acquiring title to the riparian upland property on June 28, 1988. The current violations were initially discovered by DEP in 1998. The current violations were initially discovered by DEP in 1998. Since 1999, DEP has been diligently working with the lessee, the lessee's agent, the lessee's legal counsel, and the lessee's engineer to achieve compliance with the sovereignty submerged lands lease and the Consent Orders entered into between DEP and the lessee. Compliance with a few of the requirements of the sovereignty submerged lands lease and Consent Orders have been achieved. However, DEP has documented additional unauthorized construction and activities undertaken by the lessee during the enforcement process, resulting in additional violations. Therefore, DEP has begun the process of revoking the lessee's lease. On August 3, 2001, DEP provided the lessee a 30-day notice (received by the lessee on August 6, 2001) of lease termination required under paragraph 13 of the modified lease (effective date October 30, 2000). The notice further stated that the lease would be revoked upon action by the Board of Trustees. The following is a brief history of this project, the unauthorized activities, and DEP's attempts to resolve these violations.

In 1988, the lessee and the former Department of Environmental Regulation (DER) entered into a Consent Order (No. 88-0993) to resolve violations of chapter 403, F.S. Corrective actions required by that Consent Order were completed by the lessee in March 1993. In 1989, the former Department of Natural Resources (DNR) observed unauthorized uses of sovereignty submerged lands at the site. These and additional unauthorized uses of sovereignty submerged lands were more fully documented by DNR during 1991 site inspections. In 1992, DNR and the lessee entered into a Temporary Use Agreement. The lessee paid lease fees in arrears and $24,363 in administrative fines for the unauthorized use of sovereignty submerged lands (16 violations). The administrative fine amount was a reduction of the $42,278 in administrative fines that DNR could have assessed for those violations.

On January 26, 1993, the Board of Trustees authorized a five-year sovereignty submerged lands lease containing 30,296 square feet. That lease included an existing unregistered grandfathered commercial docking facility, the lessee's proposed expansions to that facility, and after-the-fact authorization for the lessee's unauthorized expansions (structures and activities) identified by DNR prior to that Board of Trustees action. That Board of Trustees approval resolved several violations of chapter 253, F.S., and chapters 18-20 and 18-21, F.A.C. The marina, as authorized by the Board of Trustees, included 22 wet slips, dock structures, a travel lift, and unauthorized fill. The portion of the marina on sovereignty submerged lands currently includes 25 wetslips and associated dock structures, fueling facilities, a travel lift/fork lift facility, and unauthorized areas of filled, formerly submerged sovereignty lands. There are approximately 20 additional wet slips in a privately-owned man-made canal on the north side of the lessee's upland property, and the lessee's upland marina-related structures and activities (tackle shop, dry storage barn, etc.).

Board of Trustees
Agenda - September 11, 2001
Substitute Page Twelve

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Substitute Item 5, cont.

The survey in the attachments to the request approved by the Board of Trustees in 1993 showed eight-foot-wide floating docks. To minimize shading impacts to the aquatic preserve, a special approval condition required the lessee to submit a revised survey showing existing and proposed structures approved by the Board of Trustees, with floating docks having a maximum width of four feet. Prior to the lease being executed by DNR, the lessee requested modifications to the project as approved by the Board of Trustees to: (1) allow the floating docks to be authorized at eight feet instead of four feet for stability and liability insurance purposes; and (2) change the lease term from 5 to 25 years. The special approval condition requiring a revised survey was deleted by DNR because the original survey dated June 19, 1991, approved by the Board of Trustees, already showed the floating docks at the requested eight-foot width. DNR notified the Cabinet Aides of the lessee's request, stating that DNR would approve the lessee's request, pursuant to a delegation of authority, if no concerns were expressed by the Cabinet Aides. No concerns were received by DNR, and DNR subsequently executed the 25-year lease on May 4, 1993. On September 14, 1999, DEP modified the lease, pursuant to a delegation of authority, to add special lease conditions prohibiting "cruises to nowhere" gambling vessels within the lease.

A September 22, 1998 site inspection of the lessee's marina by DEP staff revealed that the existing facility was not in compliance with the terms and conditions of the existing lease. Subsequent DEP staff inspections on May 10, 1999, June 4, 1999, October 18, 1999, January 21, 2000, May 11, 2000, and May 23, 2000 revealed that several violations of chapters 253, 258, 373, or 403, F.S., and chapters 18-20 and 18-21, F.A.C., had occurred at the site. Those violations are described in Attachment I, History of Non-Compliance, Pages 3-6, OGC Case No. 99-1944, Regulatory - ERP and Proprietary Consent Order Violations.

DEP sent a warning letter to the lessee on July 29, 1999, enumerating the violations, directing the lessee to cease all violations immediately, and requesting a meeting with the lessee. Staff met with the lessee on October 21, 1999, March 9, 2000 and May 17, 2000 to further discuss these violations and the lessee's intent to install and hook up an above ground fuel storage tank (AST). DEP informed the lessee and the lessee's legal counsel that prior authorization from DEP would be required to install fuel piping and electric lines on sovereignty submerged lands within the lease. An Environmental Resource Permit application was provided to lessee's legal counsel on March 9, 2000.

DEP subsequently negotiated a Consent Order (No. 99-1944) with the lessee and the lessee's legal counsel, that was entered into by DEP and the lessee on July 13, 2000. The Consent Order provided the lessee the option to perform in-kind service in lieu of making cash payment of the civil penalties ($28,250). The lessee failed to provide an acceptable in-kind service proposal. On October 27, 2000, DEP provided the lessee with written notice that: (1) lessee must provide an acceptable in-kind proposal within 15 days; or (2) lessee must make cash payment of the civil penalties to DEP. The lessee did not submit an acceptable in-kind service proposal or the cash payment. On November 27, 2000, DEP notified the lessee that an in-kind proposal was not received by the deadline, and that the $28,250 civil penalty was therefore due within 30 days of the lessee's receipt of the notice. The civil penalty was due on December 31, 2000, and has not been submitted by the lessee to date.

Consent Order (No. 99-1944) paragraph 33 contained a payment plan (four payments of $8,437.50) for the $33,750 in administrative fines. The third payment, due on January 2, 2001, was not received until April 13, 2001. Pursuant to paragraph 33 of Consent Order No. 99-1944, failure to make any payments (payment due on January 2, 2001, received on April 13, 2001) in a timely manner will accelerate the balance, which will become immediately due. Therefore, the final payment of $8,437.50 in administrative fines (originally due on July 7, 2001) became due immediately, but has not been received to date.

Board of Trustees
Agenda - September 11, 2001
Substitute Page Thirteen

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Substitute Item 5, cont.

A March 15, 2000, on-site inspection by DEP staff revealed that the lessee had installed fuel piping and electric lines on sovereignty submerged lands without prior authorization by DEP. On October 3, 2000, DEP provided the lessee with another Consent Order (No. 00-0843) to resolve this violation. This Consent Order did not include administrative fines, civil penalties, or DEP costs as an incentive to achieve compliance by lessee without additional financial burdens to lessee. On October 18, 2000, an on-site inspection by Collier County staff revealed that a 3-foot-wide by 20-foot-long access walkway was constructed on sovereignty submerged land without prior authorization from DEP. That walkway was installed to provide access to marina personnel from the above ground fuel storage tank to the docking facility and to provide structural support for the fuel piping. Because of this additional violation, DEP notified lessee's legal counsel on November 3, 2000, that DEP would not enter into the original Consent Order (No. 00-0843) that was executed by the lessee, since the access walkway had been constructed and the new fuel system had been put into use without a permit or other form of consent from DEP or the Board of Trustees. Instead, a revised Consent Order (No. 00-0843) was created to resolve those and additional violations. The revised Consent Order entered into by DEP and the lessee on December 20, 2000, authorized the 3-foot-wide by 20-foot-long access walkway and the new fuel system to comply with fire codes. The revised Consent Order contained civil penalties ($750), administrative fines ($1,750) and DEP costs ($250), totaling $2,750. These amounts were due on January 19, 2001 but have not been submitted by lessee to date.

With the exception of approximately 20 boat slips located in a man-made canal on the north side of the lessee's upland property, the marina is located in an aquatic preserve, and therefore, must be shown to be clearly in the public interest, pursuant to section 258.42, F.S., and section 18-20.004(1)(b), F.A.C. The Board of Trustees' January 26, 1993 determination that approval of the lease was in the public interest was based on the following items agreed to by the Lessee: (1) place five culverts in Rookery Bay National Estuarine Research Reserve (RBNERR) to reestablish surface water transport and tidal flushing; (2) mark three channels by installing nine pilings to protect seagrasses in RBNERR; (3) install and maintain an informational display informing boaters using the facility of the presence of grassbeds and shoal areas in Rookery Bay Aquatic Preserve; and (4) maintain the existing shoreline in a natural condition, free and clear of manmade trash and debris. After the Consent Order (No. 99-1944) was entered into by the DEP and the lessee, the lessee complied with above items (3) and (4). However, the lessee failed to conduct above items (1) and (2). Item (1) was subsequently not needed because RBNERR removed the portion of road where the lessee was to install the flushing culverts. Item (2) was subsequently conducted by another entity. Therefore, DEP negotiated alternative public interest activities with the lessee. On October 30, 2000, DEP executed a modified lease to allow the lessee to conduct alternative public interest activities to those approved by the Board of Trustees on January 26, 1993. The alternative public interest activities consisted of: (1) lessee's proposed purchase and donation of $14,994.84 worth of equipment and material for prescribed fire management and invasive plant control to RBNERR; and (2) lessee's proposed purchase and donation of $5,266 worth of navigational signage to the Collier County Natural Resources Program. This signage was to replace aids to navigation in the Faka Union Canal channel in the adjacent Cape Romano-Ten Thousand Islands Aquatic Preserve. The alternative public interest proposals were required to be completed by December 29, 2000. Item (1) was completed on August 22, 2001, and Item (2) was completed on July 31, 2001; both have been confirmed by DEP. The modified lease executed by DEP requires the lessee to record the lease; however, lessee has not yet recorded the lease.

A May 1, 2001 on-site inspection by DEP staff revealed additional non-compliance with Florida Statutes, Florida Administrative Codes, the lessee's sovereignty submerged lands lease

Board of Trustees
Agenda - September 11, 2001
Substitute Page Fourteen

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Substitute Item 5, cont.

and the Consent Orders. Specifically, Lessee: (1) had begun constructing a modified western stormwater treatment/retention area without the required Environmental Resource Permit from DEP; (2) had begun fueling vessels with diesel fuel over sovereignty submerged lands prior to completing several corrective actions required by Consent Order No. 00-0843. Those corrective actions included: (a) obtaining a Discharge Prevention and Response Certificate, pursuant to section 376.065, F.S. (Consent Order No. 00-0843, Attachment I, No.4b); (b) installing an emergency fuel shutoff switch at the diesel dispensing nozzle located on the dock (Consent Order No. 00-0843, Attachment I,No.4c); and (c) failure to store the diesel fuel nozzle in an upright position (Consent Order No. 00-0843, Attachment I, No.4f) [the May 1, 2001, site inspection revealed that the diesel nozzle was lying on top of the fuel hose (not in an upright position), and fluid was observed dripping from the diesel nozzle into the aquatic preserve]; (3) was power washing the bottom of a large vessel, allowing the boat bottom cleaning wash water to discharge to the aquatic preserve (Consent Order No. 99-1944, paragraphs 39 and 53-5); (4) was allowing the mooring of a vessel on the eastern side of the travel lift/fork lift and another vessel in Slip 31 that extended outside of the lease area (Consent Order No. 99-1944, paragraph 50); and (5) was allowing vehicle parking north of the restaurant on filled, formerly submerged sovereignty lands (Consent Order No. 99-1944, paragraph 51).

On November 17, 2000, and again on June 8, 2001, DEP notified the lessee of his non-compliance with regulatory and proprietary statutes and rules, the lessee's sovereignty submerged lands lease, the Consent Orders (Nos. 99-1944 and 00-0843). These notifications also provided the lessee 30 days to achieve compliance in order to avoid initiation of procedures to revoke the lease and removal of lessee's structures from sovereignty submerged lands.

A July 30, 2001 site inspection by DEP staff and the associated file review revealed continued non-compliance with most of the corrective actions contained in the Consent Orders (Nos. 99-1944 and 00-0843). The portions of that non-compliance that have not been corrected to date have been listed below. Each item is indicated as a proprietary (lease) violation, regulatory (permit) violation, or both.

(1) Lessee's failure to properly record a modified sovereignty submerged lands lease containing the alternative public interest projects detailed in Consent Order No. 99-1944 and the modified lease (proprietary violation).

(2) Paragraph No. 36 (Consent Order No. 99-1944) -- lessee's failure to purchase and donate $14,994.84 worth of equipment and material for prescribed fire management and invasive plant control to the RBNERR by December 29, 2000. DEP received a copy of a check dated July 30, 2001 for $1,830.30 to Forestry Suppliers. On August 3, 2001, DEP confirmed receipt of the check for $1,830.30 by Forestry Suppliers. DEP received a copy of a check dated August 13, 2001 for $13,164.54 to Elite Fire and Safety Equipment, Inc. On August 22, 2001, DEP confirmed receipt of the check for $13,164.54 by Elite Fire and Safety Equipment, but DEP has not received confirmation that the checks have cleared. The checks total $14,994.84 for alternative public interest (proprietary violation).

(3) Paragraph No. 39 (Consent Order No. 99-1944) -- lessee's failure to maintain the shoreline free of all trash and debris, including any materials from boat bottom cleaning, sanding and painting. On the May 1, 2001 and July 30, 2001 site inspections, barnacles and debris (the shoreline has a blue tint from bottom paint waste) from boat bottom cleaning activities were observed along the shoreline (proprietary violation).

Board of Trustees
Agenda - September 11, 2001
Substitute Page Fifteen

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Substitute Item 5, cont.

(4) Paragraph No. 39 (Consent Order No. 99-1944) -- lessee's failure to prevent wash water and any material from boat bottom cleaning (marine life such as oysters, barnacles and algae, and bottom paint chips), sanding and painting operations from being disposed of along the shoreline or in surface waters. On July 30, 2001, the boat bottom cleaning activities were observed adjacent to the western stormwater treatment area. Unpermitted construction of enlarging the western stormwater treatment area was observed at the May 1, 2001 site inspection. Unauthorized boat bottom cleaning wash water is being discharged into the western stormwater treatment area. DEP has not been able to determine whether all boat bottom cleaning wash water has ceased being discharged to surface waters. Additionally, no information has been provided to DEP documenting that the collected bottom paint chips and sandings are being properly disposed (proprietary and regulatory violation).

(5) Paragraph No. 40 (Consent Order No. 99-1944) -- a non-water dependent roof remains over a former non-water dependent retail/tackle (ships) store (proprietary violation).

(6) Paragraph No. 43, a-e (Consent Order No. 99-1944) -- lessee's failure to remove fill placed amongst the mangroves, reform and slope the shoreline behind the mangroves, install a filtercloth underliner and stabilize the remaining fill slope with riprap. This corrective activity has been attempted, but not in compliance with the conditions of the consent order. The toe (base) of the riprap is at or within the mangrove trunks, not one foot landward. Additionally, riprap has been relocated from within the mangroves to waterward of the mangroves, not to a contained upland site (proprietary and regulatory violation).

(7) Paragraph No. 45-1 (Consent Order No. 99-1944) -- lessee's failure to provide to DEP a detailed written statement of the procedures used to empty the sewage pumpout including exact location where waste is disposed and a drawing showing the waste disposal location. This information was to be incorporated into the marina operation and maintenance plan (proprietary violation).

(8) Paragraph No. 45-2 (Consent Order No. 99-1944) -- lessee's failure to maintain the on-site treatment and disposal system (septic system). On July 30, 2001, DEP staff observed a fluid discharge flowing from the septic tank manhole cover to the ground. The discharge was reported to the Collier County Environmental Health and Engineering Department. Collier County staff subsequently sampled the ponded water on the lessee's uplands, and on August 23, 2001, Collier County staff sent the lessee an Official Notice to Abate a Sanitary Nuisance. The notice stated that the lessee had interfered with the drainfield design (by paving over the drainfield), that the drainfield had apparently failed, and that standing water around the septic system contained high levels of fecal coliform bacteria. The notice requires the lessee to apply for a septic system repair permit within 72 hours of receipt of the notice (proprietary violation).

(9) Paragraph No. 46 (Consent Order No. 99-1944) -- lessee's failure to provide to DEP a copy of the "Sea Cock Log" and an example of the actual seal used to ensure that the seacocks remain in the closed position (proprietary violation).

(10) Paragraph No. 49 (Consent Order No. 99-1944) -- lessee's failure to achieve the success criteria for the mangroves required to be planted and provide the initial planting report (proprietary and regulatory violation).


Board of Trustees
Agenda - September 11, 2001
Substitute Page Sixteen

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Substitute Item 5, cont.

(11) Paragraph No. 50 (Consent Order No. 99-1944) -- lessee's failure to ensure that all vessels moored at the Goodland Bay Marina are moored within the lease area. On October 6, 2000, January 5, 2001 and May 1, 2001, DEP staff observed a vessel moored in Slip 31 that extended waterward of the lease boundary. On May 1, 2001, DEP staff observed a vessel moored adjacent to the east side of the concrete travel lift launching piers that extended beyond the lease boundary. On July 30, 2001, DEP staff observed three vessels (52-foot long landing craft, 45-foot long and 42-foot long vessels) moored outside the northern lease area. The lease extends 35 feet to 37 feet beyond the waterward limit of the docks in this area (proprietary violation).

(12) Paragraph No. 51 (Consent Order No. 99-1944) -- lessee's failure to obtain prior Board of Trustees' authorization to pave the filled, formerly submerged sovereignty lands in the northeast corner of the lease area. When the Board of Trustees approved the initial lease, this filled area was unpaved. On January 5, 2001 a pickup truck and boating equipment were being stored on these filled, formerly submerged, sovereignty lands. On May 1, 2001, DEP staff observed a car being parked on these filled, formerly submerged, sovereignty lands. On July 30, 2001, an inflatable boat and trailer were observed being stored on these filled, formerly submerged, sovereignty lands (proprietary violation).

(13) Paragraph No. 53-1 (Consent Order No. 99-1944) -- lessee's failure to provide acceptable and legible drawings of the existing stormwater system (proprietary and regulatory violation).

(14) Paragraph No. 53-2 (Consent Order No. 99-1944) -- lessee's failure to provide an acceptable elevation survey showing where all existing stormwater and water generated by the marina is routed (proprietary and regulatory violation).

(15) Paragraph No. 53-3 (Consent Order No. 99-1944) -- lessee's failure to identify all piping and/or hoses that extend into or discharge to surface waters (proprietary and regulatory violation).

(16) Paragraph No. 53-4 (C.O. No. 99-1944) -- lessee's failure to install acceptable permanent survey markers. On May 1, 2001 and July 30, 2001, DEP staff observed temporary survey markers consisting of nails and r-bar, circled with orange spray paint. The permanent survey markers have yet to be installed. The temporary survey markers are located waterward of the survey approved by the Board of Trustees on January 26, 1993. There is now a discrepancy as to the location of the original mean high water line. This discrepancy needs to be resolved, to determine which survey is accurate (June 19, 1991 or the 2001 survey). DEP's July 24, 2001 Request for Additional Information (RAI) Item No. 42-c requests that this discrepancy be addressed (proprietary and regulatory violation).

(17) Paragraph No. 53-5 (Consent Order No. 99-1944) -- lessee's failure to cease all discharges from hull cleaning and maintenance activities into Waters of the State that are occurring in the travel lift and fork lift areas. On July 30, 2001, the boat bottom cleaning activities were observed adjacent to the western stormwater treatment area. Unpermitted construction consisting of enlarging the western stormwater treatment area was observed at the May 1, 2001 site inspection. Unauthorized boat bottom cleaning wash water is being discharged into the western stormwater treatment area. Evidence of boat bottom cleaning activities (barnacles and debris (the shoreline has a blue tint from bottom paint waste)) still exists in the travel/fork lift area. DEP has been unable to determine that all boat bottom cleaning wash water has ceased being discharged to surface waters (proprietary and regulatory violation).

Board of Trustees
Agenda - September 11, 2001
Substitute Page Seventeen

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Substitute Item 5, cont.

(18) Paragraph No. 53-6 (Consent Order No. 99-1944,) -- lessee's failure to evaluate the western treatment/retention area and adequately document that the stormwater/retention areas are entirely on the lessee's uplands and not over any portion of sovereignty submerged lands (proprietary and regulatory violation).

(19) Paragraph No. 53-7 (Consent Order No. 99-1944) -- lessee's failure to provide a complete application, including the appropriate application fee, to bring the stormwater system into full compliance with Part IV of chapter 373, F.S. An application to upgrade the stormwater system was received by DEP on June 27, 2001. The application was incomplete, and DEP sent a 43-item RAI to the applicant on July 24, 2001 (proprietary and regulatory violation).

(20) Paragraph No. 53-8 (Consent Order No. 99-1944) -- lessee's failure to provide DEP with a Stormwater System Management and Maintenance Plan (proprietary and regulatory violation).

(21) Paragraph No. 54 (Consent Order No. 99-1944) -- lessee's failure to remove an unauthorized 16-foot by 12-foot concrete pad from sovereignty submerged lands (proprietary and regulatory violation).

(22) Paragraph No. 55 (Consent Order No. 99-1944) -- removal of the portion of the concrete slab for the above ground fuel storage tank extending over sovereignty submerged lands (if the lessee's most recent survey contradicting the previous DEP-approved survey is determined by DEP to be acceptable, the AST concrete slab would no longer be located on sovereignty submerged lands, and thus not a violation of the lease, section 253.77, F.S., and chapter 18-21, F.A.C. (proprietary violation).

(23) Paragraph No. 56 (Consent Order No. 99-1944) -- lessee's failure to provide DEP a Marina Operation and Management Plan (proprietary and regulatory violation).

(24) Paragraph No. 58 (Consent Order No. 99-1944) -- lessee's failure to provide DEP an acceptable survey and legal description for the modification of the sovereignty submerged lands lease (proprietary violation).

(25) Paragraph No. 58 (Consent Order No. 99-1944) -- lessee's failure to provide DEP a complete application for the modification of the sovereignty submerged lands lease (proprietary violation).

(26) Paragraph No. 58 (Consent Order No. 99-1944) -- lessee's failure to provide DEP a $200 processing fee for the modification of the sovereignty submerged lands lease (proprietary violation).

These outstanding non-compliance items are discussed in more detail in Attachment I, History of Non-compliance, pages 7-17, OGC Case No. 99-1944. The attachments discuss the type of violation, administrative fines, civil penalties, DEP costs, and other information.

In addition to the lease violations, DEP determined that the lessee was in violation of underground fuel storage tank rules. The underground storage tank was located within 100 feet of the mean high water line, resulting in increased likelihood of contamination to waters in the Rookery Bay Aquatic Preserve. On October 4, 1999, Mr. Law (the lessee) was arrested (Collier County Court Case No. 99-9061) and charged with three misdemeanor violations: (1) discharge of a pollutant to groundwater (section 376.302(1)(a), F.S.); (2) failure to

Board of Trustees
Agenda - September 11, 2001
Substitute Page Eighteen

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Substitute Item 5, cont.

demonstrate financial responsibility (section 376.302(1)(b), F.S., and section 62-761.400(3)a, F.A.C.); and (3) violation of release detection standards (section 376.302(1)(b), F.S., and section 62-761.600(1)(d), F.A.C.). On April 5, 2000, Mr. Law entered into a plea agreement and pled no contest to resolve the charges. DEP and the lessee entered into a separate Consent Order (No. 99-1892) on April 4, 2000 for those violations. The lessee has not submitted the final $21,701 payment of the civil penalties required under that Consent Order that was due on May 1, 2001. Additional details are provided in Attachment II, History of Non-Compliance, Pages 2 & 3, Collier County Court Case No. 99-9061 and OGC Case No. 99-1892.

Since 1999, DEP has been diligently working with the lessee, the lessee's agent, the lessee's legal counsel, and the lessee's engineer to achieve compliance with the sovereignty submerged lands lease and Consent Orders (Nos. 99-1944 and 00-0843). Compliance with a few of the requirements of the sovereignty submerged lands lease and Consent Orders has been achieved. However, DEP is concerned with the demonstrated flagrancy and repetitive nature of the violations, including lessee's undertaking of additional unauthorized construction and activities during the enforcement process resulting in additional violations. Therefore, DEP has begun the process of revoking the lessee's lease. On August 3, 2001 (see Attachment II), DEP provided the lessee 30-day notice (received by the lessee on August 6, 2001) of lease termination required under paragraph 13 of the modified lease (effective date October 30, 2000). The notice further stated that the lease would be revoked upon action by the Board of Trustees.

Section 18-21.0051, F.A.C., sets forth the delegations of authority from the Board of Trustees to DEP regarding the use of sovereignty submerged lands. Those delegations of authority do not specifically speak to the revocation of leases. Additionally, section 18-21.0051(4), F.A.C. states in pertinent part that the delegations set forth in that rule are not applicable to a specific action that may reasonably be expected to result in a heightened public concern, because of its potential effect on the environment, natural resources, or controversial nature or location. It is DEP's opinion that this action may reasonably be expected to result in heightened public concern, and therefore should be considered by the Board of Trustees. In light of the lessee's (1) demonstrated failure to comply with the lease and Consent Orders, (2) record of previous violations of regulatory and proprietary statutory and rule requirements dating back to 1988, and (3) undertaking of additional unauthorized construction and activities during the enforcement process, DEP recommends that the Board of Trustees authorize DEP to revoke the lessee's lease.

Chapter 253, F.S., and the rules promulgated thereunder provide that sovereignty submerged lands may only be leased for private uses so long as such use is not "contrary to the public interest." Chapter 258, F.S., and chapter 18-20, F.A.C., provide that the Board of Trustees determine that leasing of sovereignty submerged lands in aquatic preserves must be clearly in the public interest. The Board of Trustees determined that the original lease was clearly in the public interest when the lease was approved on January 26, 1993, contingent upon completion of the public interest requirements set forth in the special lease conditions approved by the Board of Trustees, which were not completed. However, because of the flagrancy and repetitive nature of the violations and the associated impacts to the aquatic preserve, DEP is of
the opinion that this lease should no longer be considered to be clearly in the public interest, but instead should be considered to be contrary to the public interest.

If the Board of Trustees approve DEP's recommendation to revoke the lease, all structures on sovereignty submerged lands will be required to be removed at the lessee's expense, as required in paragraph 20 of the October 30, 2000 modified lease. Structures to be removed

Board of Trustees
Agenda - September 11, 2001
Substitute Page Nineteen

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Substitute Item 5, cont.

would include the marginal docks and finger piers, fueling facilities, travel lift/fork lift facilities, and illegal fill. Approximately 20 boat slips in the privately-owned canal on the north side of the lessee's upland property, and the lessee's upland marina-related structures and activities (tackle shop, dry storage barn, etc.), will remain.

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

(See Attachment 5, Pages 1-105)

RECOMMEND APPROVAL OF THE STAFF REQUEST TO REVOKE THE LESSEE'S SOVEREIGNTY SUBMERGED LANDS LEASE


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