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AGENDA
BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND
FEBRUARY 27, 2002
2nd Substitute Page

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Item 1 Minutes

Submittal of the Minutes from the December 18, 2001 and January 29, 2002 Cabinet Meetings.

(See Attachment 1, Pages 1-35)

RECOMMEND APPROVAL

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2nd Substitute Item 2 George R. Schell Recommended Consolidated Intent

REQUEST: Consideration of an application for a five?year sovereignty submerged lands lease containing 4,461 square feet, more or less, for a proposed commercial marina to be used in conjunction with an upland boat repair facility.

COUNTY: Brevard
Lease No. 050030943
Application No. 05-170357-001

APPLICANT: George R. Schell
(d/b/a Surfside Yacht Services)

LOCATION: Section 19, Township 26 South, Range 37 East, in the Indian River, Class II Prohibited Shellfish Harvesting Waters, near the city of Melbourne, within the local jurisdiction of Brevard County
Aquatic Preserve: No
Outstanding Florida Waters: No
Designated Manatee County: Yes, without an approved manatee protection plan
Manatee Aggregation Area: No
Manatee Protection Speed Zone: No

CONSIDERATION: $678.07, representing the initial lease fee computed at the base rate of $0.1216 per square foot, and including the initial 25 percent surcharge payment. Sales tax will be assessed, pursuant to section 212.031, F.S. The lease fee may be adjusted based on six percent of the annual rental value pursuant to section 18-21.011(1)(a)1, F.A.C.


STAFF REMARKS: In accordance with rules adopted pursuant to section 373.427(2) and 253.77(2), F.S., the attached "Consolidated Notice of Intent" 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 construct, in two phases, a 12-slip commercial marina along the Indian River to be used primarily in conjunction with an upland boat sales and repair facility. Six of the slips will be used for mooring of vessels for sale, and six of the slips will be available for rental mooring to the general public. The applicant has indicated that vessel testing from the facility will be limited, and in most cases the applicant, who is a licensed boat captain, will operate the vessels. The facility will primarily accommodate recreational type vessels ranging in lengths of between 10 to 25 feet. An area of seagrasses commences about 10 to 15 feet from the mean high water line (MHWL) and continues to approximately 50 feet

Board of Trustees
Agenda - February 27, 2002
2nd Substitute Page Two

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2nd Substitute Item 2, cont.

waterward of MHWL. There is approximately 70 percent coverage of seagrasses along the entire shoreline, with remainder composed of muck and sand bottom. The applicant will extend the docking portion of the marina beyond the seagrass area to avoid impacts to seagrasses. Also, the structure is designed with narrow, elevated access walkways to reduce shading impacts as has been recommended by the National Marine Fisheries Service.

Phase 1 construction of the marina will consist of the installation of a 23-foot-long by 4-foot-wide access ramp that will be located landward of the MHWL, and connected to a 101.83- foot-long by 4-foot-wide main access pier. This access ramp will be elevated 5 feet above mean high water (MHW) over the area that contains seagrasses then slope down to 3 feet above MHW for the remainder of the structure. The main access pier will initially contain two 16-foot-long by 2-foot-wide finger docks that will provide three wet-slips on the northside of the main access pier. Signage will be installed to notify boaters that docking is prohibited except in the three authorized slips. Wooden railings will be installed along both sides of the ramp and main access pier extending from the shore to the first slip. Rope railings from that point east will be installed to prevent additional boat dockage. This has been addressed as a specific condition in the environmental resource permit.

Phase 2 of the project will consist of the construction of a 50-foot-long by 4-foot-wide "T" shaped, terminal platform at the end of the main access pier. This terminal platform will contain two 16-foot-long by 2-foot-wide finger docks on the eastside of the terminal platform for four wet-slips and two wet-slips on the westside of the terminal platform, providing all together six wet-slips at the terminal platform. Also, two more 16-foot-long by 2-foot-wide finger docks will be constructed along the southside of the main access pier, providing three additional wetslips. The dockage provided in both phases of construction will provide a total of 12 wet-slips.

DEP, in an effort to assist the applicant, will issue an environmental resource permit for this phased project. The U. S. Army Corps of Engineers has consulted with the U. S. Fish and Wildlife Service and plans to issue a permit for phase 1 of this project.

The phase 2 construction is contingent on the outcome of a final order regarding a challenge to Brevard County's proposed manatee protection rule. If the outcome of the order results in the posting of new speed zones, the applicant may complete the construction of phase 2. In the event that the ruling does not involve the adoption or posting of new manatee protection speed zones, formal consultation with the U.S. Fish and Wildlife Service will be reinitiated for the federal permit for phase 2 of this project.

The proposed commercial marina qualifies under delegation of authority for authorization to use sovereignty submerged lands. However, the project is located in Brevard County, one of the 13 critical manatee counties identified by the Florida Fish and Wildlife Conservation Commission (FFWCC). Since this project involves construction of a commercial marina in a county where FFWCC has determined that significant progress has not been made by Brevard County toward developing a manatee protection plan, this project must be brought to the Board of Trustees for consideration as a project of "heightened public concern," pursuant to section 18-21.0051(4), F.A.C.

DEP's environmental resource permit will prohibit liveaboards and fueling facilities and will require a sewage pumpout facility. The recommendations of FFWCC regarding protection of manatees have been addressed in the permit. Protection of seagrasses has also been addressed in the permit. The project was noticed, pursuant to chapter 253.115, 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 the compliance agreement between DCA and

Board of Trustees
Agenda - February 27, 2002
2nd Substitute Page Three

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2nd Substitute Item 2, cont.

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 Brevard County Planning and Zoning Office.

(See Attachment 2, Pages 1-29)

RECOMMEND WITHDRAWAL

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Substitute Item 3 The Nature Conservancy Charitable Trust Assignment of Purchase Agreement/Twelvemile Slough Florida Forever Project/Designation of FFWCC as Managing Agency/Confirmation of Management Policy Statement

REQUEST: Consideration of (1) the acceptance of an assignment of a purchase agreement to acquire 7,487 acres within the Twelvemile Slough Florida Forever project from The Nature Conservancy Charitable Trust; (2) designation of the Florida Fish and Wildlife Conservation Commission as the managing agency; and (3) confirmation of the management policy statement.

COUNTY: Hendry

LOCATION: Sections 21 through 23, 25 through 28 and 33 through 36, Township 44 South, Range 29 East; and Sections 01 through 04, Township 45 South, Range 29 East

CONSIDERATION: $11,100,000 ($11,000,000 for the acquisition; $100,000 for the purchase of the assignment of the purchase agreement)

APPRAISED BY SELLER'S TRUSTEES'
Myers Norris APPROVED PURCHASE PURCHASE CLOSING
PARCEL
ACRES (09/07/01) (09/07/01) VALUE PRICE PRICE DATE
A & M 7,487 $11,605,000 $11,300,000
$11,605,000 $5,589,401** $11,100,000* 120 days after
(96%) BOT approval

* $1,483 per acre
** Purchased in 1994

STAFF REMARKS: The Twelvemile Slough project is an "A" group project on the Florida Forever Full Fee Project List approved by the Board of Trustees on May 15, 2001. The project contains 14,000 acres, of which these are the first to be acquired. After the Board of Trustees approves this agreement, 6,513 acres or 47 percent of the project will remain to be acquired.

Pursuant to a multi-party acquisition agreement entered into between the Division of State Lands (DSL) and The Nature Conservancy, Inc. (TNC), TNC has entered into an agreement to purchase this 7,487-acre parcel from A & M of Hendry County Ltd. This acquisition was negotiated by DSL and TNC. After this acquisition is approved, the Board of Trustees will enter into the assignment of purchase agreement from TNC for $100,000, which represents agreed upon compensation to TNC for overhead associated with acquiring the purchase agreement. The Board of Trustees may then purchase the property. The assignment of purchase agreement provides that payment to TNC is contingent upon the Board of Trustees successfully acquiring the property from the owner.

The contract provides for a four-year use-agreement with the seller to graze cattle. The Florida Fish and Wildlife Conservation Commission (FWCC) is the designated manager for this acquisition. Public uses deemed compatible with the purposes for acquisition will be allowed concurrent with the use agreement.

Board of Trustees
Agenda - February 27, 2002
Substitute Page Four

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Substitute Item 3, cont.

The property is improved with metal storage buildings, a mobile home, cattle pens and fencing. The storage buildings and fencing were considered by the appraiser and did not contribute any value to the property. The mobile home and cattle pens were not considered in the appraisal and will be removed at the termination of the use agreement. FWCC has stated that the remaining improvements will not affect the management of the property.

The entire property is encumbered with two outstanding oil, gas and mineral royalty interests with no associated right of entry. The appraisers considered the outstanding oil, gas and mineral interests in their appraisals and concluded that the outstanding rights have no measurable impact on market value. There is a 15-foot-wide Florida Power and Light easement located in the southwestern part of the property as well as one along the east side of S.R. 29 on the west property line. A drainage canal agreement that will expire in 2014 also encumbers the property. The terms of the agreement require the owner of the subject property to be responsible for 60 percent of the cost to maintain the canal, including any equipment purchased to conduct the maintenance, and the owners of the adjacent properties to be responsible for the remaining 40 percent. FWCC, the future managing agency, will be able to manage the property with the outstanding interests in place, if necessary. However, they have determined that they cannot be responsible for costs involved with the maintenance of the canal; therefore, the Board of Trustees and FWCC will be released from any obligations under the terms of the drainage canal agreement prior to closing.

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 survey, an environmental site evaluation and, if necessary, an environmental site assessment will be provided by the purchaser prior to closing. A title insurance policy will be provided by the seller with the purchaser reimbursing the seller's cost of the title insurance policy.

Pursuant to section 259.032(9)(e), F.S., staff recommends that the Board of Trustees designate FWCC as the managing agency for this site. It will be managed as a wildlife management area.

Section 259.032(9)(e), 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 principal purposes of the project are to protect significant natural habitat important to the Florida panther and numerous other species of concern, as well as to preserve the hydrological connection with protected lands to the east and south.

The project should be managed under the multiple-use concept whenever possible. Management activities should be directed first toward conservation of resources and second toward integrating carefully controlled consumptive uses. Managers should control access to the project, thoroughly inventory the resources, and monitor management activities to ensure that they are actually conserving both the archaeological and natural resources. Managers should limit the number and size of educational and recreational facilities, ensure that they avoid the most sensitive resources, and site them in already disturbed areas when possible.
Board of Trustees
Agenda - February 27, 2002
Substitute Page Five

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Substitute Item 3, cont.

The most prominent feature of the proposal is the Twelvemile Slough. Swale, or "river grass" natural community, forms the broad band of emergent sedges, grasses, and herbs that runs east through the southern part of the proposal. Twelvemile Slough proposal is important to many wildlife species, particularly those that require extensive areas of habitat to maintain viable populations. This project is part of the larger Okaloacoochee Slough wetlands that partially serve as the headwaters of the Fakahatchee Strand State Preserve and the Big Cypress National Preserve. The land in this project serves to protect or recharge groundwater and is important habitat for the Florida Panther, snail kite and many other wildlife species. The entire length of the eastern boundary of the project area is contiguous with the Okaloacoochee Slough State Forest/Wildlife Management Area.

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

(See Attachment 3, Pages 1-49)

RECOMMEND APPROVAL

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Substitute Item 4 Hunt Camps Proposed Standard Lease Terms/Delegation of Authority/ Everglades Water Conservation Areas 2 and 3

DEFERRED FROM JANUARY 29, 2002 AGENDA

REQUEST: Consideration of (1) approval of the proposed standard lease terms and conditions and the fee schedule for 27 hunt camps located within Everglades Water Conservation Areas 2 and 3 and which are located on Board of Trustees' property; and (2) delegation of authority to negotiate the final lease terms and conditions and execute the leases, so long as the final lease terms are substantially consistent with those approved by the Board of Trustees.

COUNTIES: Miami-Dade and Broward

STAFF REMARKS: The 2000 Florida legislature passed a law, section 253.03(7)(d), F.S., that requires the state to issue a lease to each of the hunt camp owners within the Everglades Water Conservation Areas 2 and 3. These hunt camps are typically houses and other habitable structures built without authorization on property belonging to the Board of Trustees and the South Florida Water Management District (SFWMD). In Everglades Conservation Areas 2 and 3 there are 77 hunt camps; 9 are on private lands, 27 are on Board of Trustees' land, 17 are on SFWMD land and 24 are on Miccosukee Indian Reservation land. It is the intent of the legislation that all of the camps on public lands be brought under lease.

To be entitled to a lease on hunt camps that existed on or before May 1, 1999, the hunt camp owners were required to notify the SFWMD by January 1, 2001. The SFWMD has confirmed that all the camps were in place on or before May 1, 1999. The law states that the timely remittal of the notification automatically grants to the hunt camp owner a 20-year lease. In the event any hunt camp lease has not been executed by the owner on or before April 30, 2002, staff will take the appropriate action necessary to resolve the issue. The law further states that the lease shall terminate no later than January 1, 2020. Therefore, the term of the leases will be January 1, 2000, to January 1, 2020. At the expiration of the 20-year lease, the Department of Environmental Protection (DEP) shall have the option to renew the leases or require the lessees to remove the structures. It is important to note that section 253.03(7)(d),
Board of Trustees
Agenda - February 27, 2002
Substitute Page Six

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Substitute Item 4, cont.

F.S., also states that the existence or use of these structures will not impede the restoration of the Everglades. Each lease will contain language to that effect.

DEP has coordinated with the SFWMD to draft the terms and conditions of the proposed lease so that there is a consistency of lease terms and fees among all lessees on public lands. While this item is for the 27 camps on Board of Trustees' lands, the Division of State Lands (DSL) is considering entering into an agreement with the SFWMD, subject to SFWMD governing board approval, to administer the leases on the 17 camps located on SFWMD property. If DSL administers these SFWMD leases, DSL will collect and be entitled to the lease fees from the SFWMD leases. These fees will be deposited into the Internal Improvement Trust Fund. If this item is approved by the Board of Trustees, a copy of the proposed lease agreement will be sent to each hunt camp owner along with a letter informing them of the steps required to activate the lease. Typically, staff would have leases executed by the lessee prior to bringing them to the Board of Trustees. Because of the uniqueness of this situation; however, staff feels that it is appropriate to receive approval from the Board of Trustees prior to proceeding with the owners. After meeting with the owners there may be some modifications to the lease terms; therefore, staff is requesting delegated authority from the Board of Trustees to finalize these leases.

The annual lease fee for these leases will be $972.68 per year (which takes into consideration the 2000 and 2001 lease payments) with a 2.75 percent increase each year. The increase is based upon a five-year average of the consumer price index and is consistent with other leases approved by the Board of Trustees. The lease fee is based on appraisal information and stilt house leases previously approved by the Board of Trustees. The first annual payment will be due at lease signing and subsequent annual payments will be due on the first of January each year thereafter.

If this item is approved:

· Unauthorized structures will be brought under lease.
· Lessee will be responsible for installing a self-contained sewage composting system;
· Habitable structures damaged greater than 50 percent will not be allowed to be rebuilt and the remaining portions of the structure must be removed by the lessee or subject to removal at Lessee's expense;
· Structures and connecting docks must be maintained in good repair or subject to removal at Lessee's expense;
· Lessee may remove within 30 days of the execution of this lease agreement all exotic plants or the Lessor has the right but not the obligation to remove mentioned exotic plants;
· Lessee must maintain liability insurance. The policies must name the Lessee, Lessor and the State of Florida as co-insured; and
· The lease fees for the Board of Trustees' lands will generate approximately $601,000 over the 20-year term. If DSL administers the SFWMD leases, another $316,000 will be generated for deposit into the Internal Improvement Trust Fund.

In summary, the requested lease: (1) is in compliance with the requirements of section 253.03(7)(d), F.S.; (2) will safe guard against further expansion into Water Conservation Areas 2 and 3; and (3) will allow for the protection of the state's resources.

(See Attachment 4, Pages 1-24)

RECOMMEND APPROVAL