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AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND


MAY 21, 2002

Substitute Page

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Item 1 Minutes

Submittal of the Minutes from the March 26, 2002 and April 9, 2002 Cabinet Meetings.

(See Attachment 1, Pages 1-13)

RECOMMEND APPROVAL

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Substitute Item 2 David C. Blackburn Conveyance

REQUEST: Consideration of an application for the purchase of an approximately 1,100-square-foot parcel of filled, state-owned, submerged lands.

COUNTY: St. Lucie County
Deed No. 30746 (4965-56)
ERP File No. 561453818
BOT File No. 561453818

APPLICANT: David C. Blackburn

LOCATION: Section 01, Township 35 South, Range 40 East, Thumb Point, in the Florida Atlantic Intracoastal Waterway, Class II waters, within the local jurisdiction of St. Lucie County
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, slow speed zone

CONSIDERATION: $15,000 as established in a Consent Final Judgment entered by the 19th Judicial Circuit on December 22, 1996.

STAFF REMARKS: On February 22, 1988, the applicant submitted an application to construct a 100-foot seawall faced with riprap. The seawall and riprap's proposed location was along an irregular shoreline at approximately the Mean High Water Line (MHWL). This proposed location was to be located at the MHWL, approximately 10 to 15 feet landward of the existing seawalls at the adjacent properties. On April 25 and December 19, 1988, respectively, the Department of Environmental Protection (DEP) issued a proprietary consent and regulatory permit (No. 561453818) for the activity as proposed. These authorizations identified that the seawall was to be located at the MHWL and riprap placed at the toe of the seawall.

On September 30, 1992, DEP's staff conducted a permit compliance inspection at the property and discovered that the seawall and riprap had been built approximately 11 feet waterward of the permitted location, flush with the adjacent seawalls, and backfilled with approximately 163- cubic yards of backfill material. The unauthorized placement of the seawall resulted in the filling of approximately 1,100-square feet of state-owned, submerged lands, in violation of the issued regulatory and proprietary authorizations.

Following unsuccessful staff enforcement efforts to resolve the regulatory and proprietary issues, DEP issued a Notice of Violation and Order for Corrective Actions (NOV) to the applicant on November 29, 1993. After the applicant failed to file a responsive pleading or request a hearing on the NOV, DEP issued a Final Order (Order) to the applicant on June 1, 1994. This Order directed the applicant to remove the seawall, riprap and backfill, and reconstruct the structures as permitted. On June 30, 1994, the applicant appealed the Order to
Board of Trustees
Agenda - May 21, 2002
Substitute Page Two

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Substitute Item 2, cont.

the Fourth District Court of Appeals. On May 2, 1995, DEP filed a Complaint and Petition to Enforce DEP's Final Order with the 19th Judicial Circuit. On July 12, 1995, the Fourth District Court of Appeals upheld the Order in a per curiam opinion.

Settlement discussions continued in 1995 and 1996. During these negotiations, the applicant claimed that the title to the filled lands was held by the City of Fort Pierce, but this claim was reviewed and subsequently disproved by DEP staff. In addition, the applicant alleged potential environmental harm if the seawall was removed. In light of the alleged title and potential environmental harm issues, DEP and the applicant executed a Consent Final Judgment (Judgment) that was entered by the Court in December 1996. This Judgment was intended to bring this contentious matter and unresolved issues to an end by allowing the applicant to choose his course of corrective action. The Judgment required the applicant to: (1) pay a fine for the regulatory violation; and either (2a) relocate the seawall, riprap and fill material and restore the shoreline in accordance with the original permit; or (2b) make application pursuant to chapter 18-21, F.A.C., for the purchase of the filled, state-owned, submerged land. Further, in light of the unresolved issues and in an attempt to resolve this contentious matter, DEP agreed in the Judgment that its Southeast District would recommend to the Board of Trustees that the lands be sold to the applicant for the sum of $15,000. The Board of Trustees is not obligated to follow that recommendation.

While the applicant did pay the administrative fine and allegedly wrote a one page letter to DEP requesting to purchase the filled lands, the applicant neither removed the seawall and fill, nor submitted a proper application pursuant to section 18-21.013, F.A.C., to purchase the filled, state-owned, submerged lands. Consequently, DEP filed a Motion for Contempt, due to the applicant's failure to comply with the Judgment. However, the Court did not find the applicant in contempt. Instead, the Court determined that the terms of the Judgment were not clear as to which application in chapter 18-21, F.A.C., applied to the applicant. At a hearing on November 21, 2000, and via the Order dated January 25, 2001, the Court directed the applicant to either: (1) remove the seawall and fill and restore the shoreline in accordance with the permit; or (2) submit an application pursuant to section 18-21.013, F.A.C., to purchase the filled, state-owned, submerged lands. The applicant has since submitted a complete application to purchase the filled, state-owned, submerged lands.

On January 23, 2001, the applicant filed a Motion for Relief from the Consent Final Judgment (Motion) alleging it is no longer equitable. The applicant identified the same unresolved issues [i.e. title and potential environmental harm] as the bases for the Motion. DEP believes the question of title has been resolved for the following reasons: the applicant represented to DEP that he is the riparian owner in his permit application, and the Court of Appeals upheld DEP's Final Order thus rendering the issue barred in future litigation by collateral estoppel. Additionally, staff has verified that the Board of Trustees' records do not reflect any deed to the City of Ft. Pierce. However, the Court deferred a ruling on the defendant's Motion until the Board of Trustees makes a determination on the application.

The applicant's application to purchase the filled, state-owned, submerged lands pursuant to section 18-21.013, F.A.C., is the issue before the Board of Trustees. The sale of the filled lands must be found to be in the public interest, as required by section 253.115(2), F.S. Public interest is defined in section 18-21.003(40), F.A.C. as: "demonstrable environmental, social, and economic benefits which would accrue to the public at large as a result of a proposed action, and which would clearly exceed all demonstrable environmental, social and economic costs of the proposed action. In determining the public interest in a request for use, sale, lease, or transfer of interest in sovereignty lands or severance of materials from sovereignty lands, the board shall consider the ultimate project and purpose to be served by said use, sale, lease, or transfer of lands or material."

DEP staff is of the opinion that the proposed sale is in the public interest in light of the following: the parcel does not lend itself to public use; the liability of managing a small, isolated, remnant parcel; and the cost and uncertainty of results through litigation. Therefore, DEP staff recommends the sale of the parcel.

Board of Trustees
Agenda - May 21, 2002
Substitute Page Three

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Substitute Item 2, cont.

Section 18-21.013(3)(c)3, F.A.C., indicates DEP shall recommend that the purchase price for filled land be assessed at three times the present appraised value, since the unauthorized fill was placed by the applicant after June 11, 1957. A recent apprasial submitted by the applicant indicates the sale price pursuant to section 18-21.013(3)(c)3, F.A.C., would be $52,800. However, in this case, DEP is bound by the Judgement to recommend that the parcel be sold to the applicant with a purchase price of $15,000. This amount was based on the assumed value of the filled land and is contained in the Judgement. While DEP is bound to recommend a purchase price of $15,000, the Board of Trustees is not obligated to follow that recommendation.

Condition 2 of the terms of the Judgment states, in part, that "…the Southeast District will recommend to the Board that the lands to be sold to Blackburn for the sum of $15,000. Condition 3 of the terms of the Judgment states that if "the sale is approved by the Board of Trustees in accordance with the recommendation, Blackburn shall pay the purchase price within 30 days of the Board of Trustees approval." Condition 4 of the Judgement states that "If the sale is conditioned upon paying an amount greater than $15,000, Blackburn may elect to either pay the amount specified by the Board of Trustees, or restore the site [i.e. remove the seawall, riprap and fill and restore the shoreline to comport with the initial authorizations] as required by Paragraph 5."

If the Board of Trustees decides not to approve the sale of the filled, state-owned, submerged lands, then the applicant is bound by the Judgement to remove the seawall and fill. Any restoration activity must comply with applicable DEP statutes and rules, including water quality and habitat protection criteria. DEP would monitor any restoration activity for compliance with, and enforcement of existing regulations.

The proposed sale has been noticed, as required by section 253.115, F.S. Ninety-five property owners were specifically noticed and six objections were received. The objections addressed resident concerns about environmental impacts and degradation, mangrove destruction, arguments that the applicant should not gain the property improperly, concern that no mitigation has been required, and the general objection that the applicant should not benefit from the unauthorized location of the seawall. While these objections may have merit as individual issues, based on the current situation involving the legal requirements of the lawsuit pending before the Courts, staff maintains the recommendation for sale of the parcel to the applicant as stated in this item.

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

(See Attachment 2, Pages 1-14)

RECOMMEND APPROVAL SUBJECT TO PAYMENT OF $15,000 FOR THE PURCHASE OF THE FILLED PARCEL

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Substitute Item 3 Palm Beach County School Board Deed Restriction Modification

REQUEST: Consideration of a request to modify a deed restriction approved by the Board of Trustees of the Internal Improvement Trust Fund in the conveyance of 19.77 acres of state-owned land to the Board of Public Instruction of Palm Beach County.

COUNTY: Palm Beach
Deed No. 18599

APPLICANT: Palm Beach County School Board

LOCATION: Section 31, Township 43 South, Range 37 East
Board of Trustees
Agenda - May 21, 2002
Substitute Page Four

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Substitute Item 3, cont.

STAFF REMARKS: On January 21, 1941, the Board of Trustees approved the conveyance of 19.77 acres of state-owned land to the Board of Public Instruction of Palm Beach County, now the Palm Beach County School Board (School Board). The conveyance was approved provided the quitclaim deed include a provision restricting use of the property to public school purposes. Lakeshore Middle School was subsequently built on the property.

Students at Lakeshore Middle School were recently relocated to a new school, and the School Board proposes to deed the property to the City of Belle Glade (City) for various community uses. Because the deed restricts use of the property to school purposes, the School Board is requesting that the deed be modified to allow additional public and community uses. Included in the City's plans are lease of the school's media center to the Boys and Girls Club of Belle Glade for youth activities, lease of the band room to the Panhellenic Council of Belle Glade for a program to mentor and tutor students, and lease of the cafeteria to an organization which will provide free medical care to the citizens of Belle Glade. All of the proposed uses will involve non-profit organizations. The outdoor areas of the property will be used for recreational programs similar to other city parks.

The Department of Environmental Protection (DEP), Division of State Lands is recommending modification of the restrictions in Deed Number 18599 to expand the types of public uses allowed on the property to include public recreation, public health, public education, and other community purposes which promote the public health, safety and welfare of the inhabitants of Belle Glade, and which may include the leasing of portions of the property to non-profit organizations and non-profit corporations only for the purposes specified above.

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

(See Attachment 3, Pages 1-8)

RECOMMEND APPROVAL

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Substitute Item 4 Miami Jewish Home and Hospital for the Aged, Inc. Lease Agreement

REQUEST: Consideration of a request for a 75-year lease agreement on four acres, more or less, for the Miami Jewish Home and Hospital for the Aged, Inc., with no option for renewal.

COUNTY: Broward

APPLICANT: Miami Jewish Home and Hospital for the Aged, Inc. (MJHHA)

LOCATION: Section 16, Township 41 South, Range 51 East

STAFF REMARKS: The Board of Trustees approved a 99-year lease (No. 2628) between the Department of Children and Family Services (DCF) and the Board of Trustees on January 4, 1973 for the purposes of operating and maintaining the South Florida State Hospital (SFSH), which consisted of approximately 300 acres.

Among the current facilities on this 300 acres is a medical facility, a campus of 26 buildings for the mentally ill and a Veterans' Administration 120-bed facility.

Miami Jewish Home and Hospital for the Aged, Inc. (MJHHA) proposes to seek federal Housing and Urban Development (HUD) funding to build a desperately needed campus for senior citizens
Board of Trustees
Agenda - May 21, 2002
Substitute Page Five

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Substitute Item 4, cont.

living in Miami-Dade, Broward and Palm Beach Counties. MJHHA will provide affordable housing on the four-acre site and anticipates construction to begin on a $40 million development in the summer of 2002.

In order to receive a HUD Affordable Supportive Housing grant, the MJHHA must have a 75- year lease. This year HUD increased its requirement for leased land grants to a minimum of 75-years. DSL staff verified this policy with HUD's Section 202 Supportive Housing program office. Therefore, this item is requesting four acres, more or less, for 75 years for this use. The four acres to be utilized is currently part of a 26-acre sublease from DCF to Florida Pathways, Inc. (FPI) a not-for-profit corporation, and a wholly-owned subsidiary of MJHHA.

The Board of Trustees approved FPI's sublease on November 9, 1989 for a period of 50 years with one 33-year option for renewal. FPI has agreed to release the four-acre portion of its sublease so that MJHHA may then obtain a 75-year lease from the Board of Trustees. (DCF will also release the four acres from its total lease area.)

If the HUD grant is not received by MJHHA within the next five years, the subject four acres would then revert to DCF.

Several healthcare services associated with the SFSH property have been privatized over the years including MJHHA, which is the parent corporation of Douglas Gardens Senior Housing, Inc. (DGSH). MJHHA is a significant private sector participant in the revitalization of DCF's 300-acre site.

MJHHA maintains that if approved, this lease would accomplish the following:

· It will provide affordable housing to the elderly with limited resources living in Miami-Dade, Broward and Palm Beach Counties.

· It will afford the elderly with limited resources living facilities on a 300-acre campus that provides education, wellness, intergenerational activities, volunteering, accessibility to healthcare, transportation to local community activities, opportunities to participate in research, and community participation in leadership and government politics.

· It will be a "model program" of affordable senior housing and will enhance the 300-acre campus that will enrich the lives of seniors and younger generations of the community.

· It will provide opportunities for minority families to be employed, volunteer, attend classes, have adult day care and also child day care programs available to them.

· It will give the elderly with limited resources living in the community, a better quality of life through community support programs such as Channeling, Pace, etc.

· It will provide quality health care to the elderly with limited resources through the on-site clinic.

· It will partner with minority community service organizations, the City of Pembroke Pines and DCF to provide a wider range of support services.

· It will reduce the risk of Medicaid placement in an institution through the use of healthcare support services on campus.

Board of Trustees
Agenda - May 21, 2002
Substitute Page Six

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Substitute Item 4, cont.

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.

Staff is of the opinion that the above requirement has been met. The elder public citizens of the community will benefit from the services as provided by MJHHA. Numerous letters of public support for this project have been received from political, religious and governmental entities. MJHHA's program will also benefit the DCF and the City of Pembroke Pines by partnering with them in conjunction with their existing programs at the site.

In summary, the proposed lease: (1) will allow seniors to age with dignity without the fear of institutionalization; (2) could reduce the per-capita burden on Medicaid in terms of nursing home utilization; and (3) will benefit DCF and the City of Pembroke Pines by partnering with them in conjunction with the programs that already exist at the site.

A local government comprehensive 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 proposed action is consistent with the adopted plan according to a letter received from the City of Pembroke Pines.

(See Attachment 4, Pages 1-37)

RECOMMEND APPROVAL

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Item 5 The Conservation Fund Option Agreement/Goethe State Forest/ DACS/Division of Forestry's Florida Forever Inholdings and Additions Program

REQUEST: Consideration of an option agreement to acquire 3,225 acres within the Goethe State Forest under the Department of Agriculture and Consumer Services, Division of Forestry's Florida Forever Inholdings and Additions Program from The Conservation Fund, a Maryland Non-Profit Corporation.

COUNTY: Levy

APPLICANT: Department of Agriculture and Consumer Services, Division of Forestry (DOF)

LOCATION: Sections 10, 15, 16, 22, 27 and 34, Township 14 South, Range 17 East

CONSIDERATION: $2,400,000

APPRAISED
BY
SELLER'S
TRUSTEES'
Candler
Arline
APPROVED
PURCHASE
PURCHASE
OPTION
PARCEL
ACRES
(05/22/01)
(05/22/01)
VALUE
PRICE
PRICE
DATE
The Conser-
3,225
$2,432,000
$2,350,000
$2,432,000
$2,290,000*
$2,400,000**
15 days after
vation Fund
(99%)
BOT approval

* In May of 2002, the seller entered into a contract with Levyland LLC for $2,290,000.
** $744 per acre

STAFF REMARKS: This acquisition was negotiated by DOF. The Goethe State Forest has been identified on DOF's approved Florida Forever Inholdings and Additions list.

Board of Trustees
Agenda - May 21, 2002
Substitute Page Seven

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Item 5, cont.

The acquisition of this 3,225-acre inholding of the Goethe State Forest will fill a large void within the Goethe State Forest and will help create more manageable boundaries for the forest. The tract will afford additional areas for wildlife habitat and opportunities for recreational activity. The tract will be managed in accordance with the Goethe State Forest management plan. This acquisition is contingent upon The Conservation Fund (TCF) acquiring the property from Levyland LLC, a Florida Limited Liability Corporation, for $2,290,000. DOF coordinated with TCF in its efforts to acquire this parcel. TCF will receive $110,000 profit in the transaction rather than an overhead payment.

All mortgages and liens will be satisfied at the time of closing. There is an undivided one-half interest in oil, gas and minerals in favor of International Paper Company (IP) that has been outstanding since 1979. The seller has made a diligent effort to acquire the outstanding oil, gas, and mineral rights from IP. To date IP has raised the price of the oil, gas, and mineral rights to an amount that would be cost prohibitive for TCF to acquire. DOF will be able to manage the property with outstanding interests in place, if necessary. There is a drainage easement in favor of the state in the northwest area of the property that DOF says will not affect the management adversely. There is a hunting lease and an apiary lease on the property that will be terminated prior to closing. The appraisers did consider the outstanding oil, gas and mineral rights, the drainage easement and the hunting lease in their appraisals and there was no affect on value. 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.

A title insurance policy, a survey and an environmental site assessment of the property will be provided by DOF.

The property will be managed by DOF as an inholding to the Goethe State Forest.

This acquisition is consistent with section 187.201(23), F.S., the Agriculture section of the State Comprehensive Plan.

(See Attachment 5, Pages 1-34)

RECOMMEND APPROVAL

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Substitute Item 6 McKeithen Option Agreement/McKeithen Site Florida Forever Project/Designation of UF as Managing Agency/Management Policy Statement Confirmation

REQUEST: Consideration of (1) an option agreement to acquire 65.6 acres within the McKeithen Site Florida Forever project from Leon Alexander McKeithen; (2) designation of the University of Florida as the managing agency; and (3) confirmation of the management policy statement.

COUNTY: Columbia

LOCATION: Section 13, Township 03 South, Range 15 East

CONSIDERATION: $159,000

Board of Trustees
Agenda - May 21, 2002
Substitute Page Eight

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Substitute Item 6, cont.

APPRAISED
BY
SELLER'S
TRUSTEES'
Candler
APPROVED
PURCHASE
PURCHASE
OPTION
PARCEL
ACRES
(10/30/01)
VALUE
PRICE
PRICE
DATE
McKeithen
65.6
$169,000
$169,000
**
$159,000 *
150 days after
(94%)
BOT approval

* $2,424 per acre
** This is a portion of a larger ownership. The property has been in the family for over 50 years and was acquired in several
transactions.
*** The present day fee simple value of the property is $210,000.

STAFF REMARKS: The McKeithen Site project is an "A" group project on the 2002 Interim Florida Forever Less-Than-Fee Project List approved by the Board of Trustees on January 29, 2002. The project contains 314 acres. Although 79 percent of the project (248.4 acres) will remain to be acquired if the Board of Trustees approves this agreement, staff will recommend that the project be considered complete and removed from the list, because the remaining 248.4 acres were added to the project at the owner's request and subsequently withdrawn by the owner. This acreage was not considered to be part of the essential parcel.

The property contains one burial preparation mound and two burial mounds which are associated with the McKeithen Weeden Island Culture. The activities that took place on the mounds are considered to have occurred within the period of A.D. 350-500, with testing suggesting a range for village occupation of A.D. 200-750. In the 1960's the site was named McKeithen Site or site 8-Co-17. The site was extensively researched in the late 1970's by several teams from both the University of Florida and Florida International University.

The seller will be retaining a reservation of a life estate on the property. Although this project is identified in the Florida Forever Five-Year Plan as a "Less-than-Fee" project in which the state will acquire a conservation easement, the state's original intent was to acquire the essential parcel in fee simple. During project development, the owner indicated his willingness to consider only a conservation easement, but during negotiations, the owner decided that a life estate was preferable, which coincides with the state's original objective. The life estate will be restricted by covenants, which include but are not limited to the following:

· No dredging of new canals, construction of new dikes, manipulation of natural water courses, nor any activities or uses conducted on the property that would be detrimental to water purity or that could alter natural water level or flow in or over the property;
· No acts or uses detrimental to the use of the property as a water recharge area or spring recharge basin;
· No acts or uses detrimental to the preservation of the structural integrity or physical appearance of any portions of the property having historical, archeological or cultural significance;
· No construction or creation of new roads or jeep trails in wetland areas;
· No conversion of natural areas to agricultural use;
· No hardwood species shall be harvested in wetland areas;
· No soil, trash, liquid or solid waste (including sludge), or hazardous materials, wastes or substances, toxic wastes or substances, pollutants or contaminants shall be dumped or placed on the property;
· No mining or extraction of oil, gas, minerals, peat, etc.;
· No new residential construction or additional mobile homes shall be allowed; and
· The designated manager and the Department of Environmental Protection (DEP), Division of State Lands (DSL) shall be allowed access to the property for the purposes of monitoring compliance of the terms of the deed as well as conducting scientific study and educational research.

There is a mobile home on the property that will remain after the closing; however, it is not included in the acquisition. The appraiser considered the mobile home as personal property and did not include it in the value of the property. The property is encumbered by an easement for the placement of overhead utility transmission lines that bisect part of the tract, north to south. The appraiser considered the easement and was of the opinion that there was no impact on value.
Board of Trustees
Agenda - May 21, 2002
Substitute Page Nine

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Substitute Item 6, cont.

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 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.

This project would help protect the McKeithen Site Archaeological Site and allow the public to experience these important cultural remains. While this is the principal purpose of the proposal, the site does support a mixture of natural and disturbed communities that are of ecological value. Chief among these is a high quality Upland Mixed Forest bordering a small Blackwater Stream (Orange Creek).

Pursuant to section 259.032(9)(e), F.S., staff recommends that the Board of Trustees designate the University of Florida as the managing agency for this site once the Board of Trustees take possession at the termination of the life estate. If unforeseen circumstances prevented the University of Florida from being able to manage the property at the termination of the life estate, due to the projected length of time before the Board of Trustees will take possession, DSL will be the interim manager until a permanent manager is designated. It will be managed as an archaeological site with emphasis on cultural resource preservation, interpretation and education, together with compatible public recreational use and development.

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 primary objective of management of the McKeithen Site proposal is to protect the archaeological sites associated with the property, while also conserving and restoring the natural communities along the banks of Orange Creek. A secondary objective is to provide cultural interpretation and educational opportunities, including research and potentially recreational activities, such as nature tours, hiking, photography and picnicking that are compatible with protection of the natural and cultural resource values of the project.

The proposal 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. Mangers 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 situate them in already disturbed areas when possible.

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

(See Attachment 6, Pages 1-18)

RECOMMEND APPROVAL

Board of Trustees
Agenda - May 21, 2002
Page Ten

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Item 7 Peter Miller, et al vs. BOT/DEP Settlement Agreement

REQUEST: Consideration of a proposed settlement agreement in the case of Peter Miller, et al. v. Board of Trustees of the Internal Improvement Trust Fund and Department of Environmental Protection, Seventh Judicial Circuit (Volusia County) Court Case No. 96-5099-CA, through the purchase of approximately 573.9 acres of land within the Etoniah/Cross Florida Greenway Florida Forever Project.

APPLICANTS: Department of Environmental Protection, Division of State Lands, and Peter T. Miller, James T. Miller, John R. Miller, and Susan Eleanor Miller Thomas

COUNTY: Putnam

LOCATION: Sections 14, 22, 23 and 27, Township 11 South, Range 24 East

CONSIDERATION: $ 900,000

APPRAISED BY
Arline Rogers APPROVED PURCHASE
PARCEL ACRES (02/04/99) (02/04/99) VALUE PRICE
Peter Miller, 573.9 $440,000* $500,000* $500,000 $900,000
et al.

*Excludes the value of the boat ramp

STAFF REMARKS: The Etoniah/Cross Florida Greenway Project is a "B" Group project on the 2002 Interim Florida Forever Full Fee Project List approved by the Board of Trustees on January 29, 2002. This project contains approximately 47,217 acres, of which 21,262 acres have been acquired by the Board of Trustees. After the Board of Trustees approves this agreement, 25,381 acres or 54 percent of the project will remain to be acquired.

The Millers commonly own an approximately 573.9-acre parcel of land located in Putnam County, including 293.2 acres of land flooded by the Rodman Reservoir, 153.1 acres of jurisdictional wetlands, and 127.6 acres of uplands and lake front property. The site extends some 16,800 feet along the Rodman Reservoir. The uplands are scattered throughout the site, are of limited depth, and in many cases are surrounded or isolated by jurisdictional wetlands. Approximately 539.9 acres of the 573.9-acre parcel is located within the barge canal taking area.

In 1966, the Canal Authority of the State of Florida acquired the right to flood approximately 9600 acres of land in Putnam and Marion counties as part of the Cross-Florida Barge Canal Project. The Canal Authority obtained a Judgement of Condemnation, granting the state either fee simple title or perpetual flowage easements to flood private property "in connection with the construction, operation and maintenance of the Cross-Florida Barge Canal Project." In 1968, the Rodman Dam was completed and the land was flooded by the Rodman Reservoir.

In 1990, Congress and the Florida Legislature adopted related legislation to deauthorize the Cross-Florida Barge Canal and to establish the Cross Florida Greenway in its place. The Cross-Florida Barge Canal was officially deauthorized on January 22, 1991, by adoption of a resolution by the Governor and Cabinet, which agreed, on behalf of the State of Florida, to the terms of the federal deauthorization.

On March 19, 1996, the Millers, as fee title owners of property that was subject to the state's flowage easement, filed an inverse condemnation lawsuit alleging that the Board of Trustees and the Department of Environmental Protection (DEP) have "taken their property without just compensation". The Millers alleged that the state's flowage easement had terminated with the deauthorization of the Barge Canal, and that the continued flooding of their property constituted a "taking" for which just compensation was owed. On May 5, 1997, the Circuit Court for Putnam County, Florida, held that the flowage easement over the Millers' property
Board of Trustees
Agenda - May 21, 2002
Page Eleven

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Item 7, cont.

had been terminated, extinguished, and was otherwise null and void due to the Canal's deauthorization. The Millers may have waited too long to file their "taking" claim, and may be barred by the applicable statute of limitations depending upon what date the Court finds the "taking" to have occurred. If the Millers' "takings" claim fails, they may proceed against the Board of Trustees and DEP under a trespass action, seeking damages, costs, and attorney's fees for the continued flooding of the property. If the Millers can reach the merits of their inverse condemnation claim and succeed, the Board of Trustees may be liable for the value of all submerged lands together with whatever wetlands the Court determines to be flooded by the reservoir. The Millers may also be entitled to recover statutory interest from the date of the "taking", along with any severance damages, reasonable costs, and attorneys' fees.

Subject to the Board of Trustees' approval, the parties have agreed to the acquisition of approximately 573.9 acres of the Millers' property for the purchase price of $900,000. This amount exceeds the appraised value of the property by $400,000, but resolves all pending and future litigation, costs, attorneys' fees, interest, and removes any question of a continuing trespass with continuing damages thereon. If the Millers succeed in their "takings" claim, the Court might instruct the jury to value the land as if it were dry, resulting in a much higher price-per-acre for the 293.2 acres of submerged lands and the 153.1 acres of wetlands, a portion of which would be drier than present. In short, the Board of Trustees' potential liability could well exceed the $400,000 added to the appraised value to resolve all pending and future litigation.

Acquisition of this Miller property will accomplish the multiple objectives of acquiring lands identified for acquisition under the Florida Forever program, settling the ongoing litigation with the Millers, and fulfilling the legislature's directive to acquire fee simple title to less-than-fee holdings within the original Cross-Florida Barge Canal lands. In establishing the Cross Florida Greenway, the 1990 Legislature concluded that "public ownership of and access [to the lands within the former Cross-Florida Barge Canal] are necessary and desirable to protect the health, welfare, safety and quality of life of the residents of this state," and encouraged the acquisition of fee simple title to those portions of the Cross-Florida Greenway held in less-than-fee title. Accordingly, section 253.781(3), F.S., states that the Board of Trustees "may acquire by purchase, exchange of other state lands, or the exercise of the power of eminent domain the fee title to lands acquired in less-than-fee title… using state, local or federal funds dedicated to acquiring lands for conservation and recreation."

Some of the more critical terms of the settlement agreement are: (1) purchase of fee simple title to approximately 573.9 acres of land adjacent to and underneath the Rodman Reservoir, the Cross Florida Greenway and the Carravelle Ranch Wildlife Management Area for the total purchase price of $900,000, in furtherance of the legislature's policy of acquiring fee simple title to all less-than-fee title holdings within the Cross Florida Greenway; (2) settlement in full of the pending trespass action arising from, or relating to, the flooding of the property; (3) a release by the Millers of the Board of Trustees and DEP for any future claims arising from, or relating to, the flooding of the property or its use as part of the Cross Florida Greenway; and (4) a release by the Millers for any and all interest, costs, and attorneys' fees. This recommendation of approval is not to be construed as an admission of liability and is offered only for the purpose of negotiating a settlement of the current and potential litigation. The purchase price also remains subject to adjustment based upon a final acreage calculation of the Peter Miller, et al. parcel. The purchase will be done consistent with section 259.041, F.S.

The Office of Greenways and Trails will manage this property as a part of the Cross Florida Greenway.

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

Board of Trustees
Agenda - May 21, 2002
Page Twelve

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Item 7, cont.

(See Attachment 7, Pages 1-23)

RECOMMEND APPROVAL OF THE SETTLEMENT AGREEMENT, WHICH PROVIDES FOR THE PURCHASE OF APPROXIMATELY 573.9 ACRES OF LAND