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AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

MAY 29, 1996

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Item 1 Minutes

Submittal of the minutes of the April 9, 1996 Cabinet meeting.

RECOMMEND ACCEPTANCE

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Item 2 Quarterly Management Report

Submittal of the Quarterly Management Report for the third quarter, FY 1995-96.

(See Attachment 2, Pages 1-14)

RECOMMEND ACCEPTANCE

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Item 3 BOR/UF/BOT/Bennett Purchase Agreement

REQUEST: Consideration of a purchase agreement among the Florida Board of Regents, University of Florida and the Board of Trustees to acquire 927 acres of land from R. D. and Jacqueline Bennett.

COUNTY: Jackson

APPLICANT: University of Florida

LOCATION: Section 01, Township 05 North, Range 10 West and Section 36, Township 06 North, Range 10 West

CONSIDERATION: $835,000

REVIEW NO.609001    
           APPRAISED BY                    
         ROGERS       KETCHAM    APPROVED    PURCHASE        CLOSING
ACRES   (11/14/95)  (11/14/95)    VALUE       PRICE           DATE 
927     $835,000    $810,000    $835,000     $835,000        200 days after                                                                                                                                                                                                                                                                                                                             BOT approval









STAFF REMARKS: This acquisition was negotiated by the University of Florida, Institute of Food and Agriculture Sciences (UF/IFAS). Funds for this acquisition were appropriated by the Florida Legislature and are still available.

The subject property is pasture land with the only improvements consisting of perimeter and interior field fencing and gates. These ancillary improvements are considered typical for this type of land and were not given a separate value but the existence of these improvements was recognized and considered in the overall land valuation.

The southern 240 acres of this property is subject to a reservation in favor of the United States of America with respect to all of the uranium, thorium and other materials essential to the production of fissionable material and the right to mine the same. This same reservation exists on property adjacent to the eastern side of the 240 acres and currently owned by the Board of Trustees and under lease to UF/IFAS. The Bureau of Geology has advised that there is little to no likelihood that uranium or thorium exist in the area. Staff, with the assistance of and at the expense of UF/IFAS, will attempt to obtain, post closing, the release of the reservation on both the subject property and the adjacent Board of Trustees' parcel.

Board of Trustees

Agenda - May 29, 1996

Page Two

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Item 3, cont.

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

A certified survey and environmental site assessment will be provided by UF prior to closing.

This property will be managed by the University of Florida, Institute of Food and Agricultural Sciences as a cattle research facility through a lease to the Florida Board of Regents.

These acquisitions are consistent with section 187.201(01), F.S., the Education section of the State Comprehensive Plan.

(See Attachment 3, Pages 1-24)

RECOMMEND APPROVAL

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Item 4 Archie Carr Sea Turtle Refuge CARL Project/Hatala Option Agreement

REQUEST: Consideration of an option agreement to acquire 1.97 acres within the Archie Carr Sea Turtle Refuge CARL project from Leonard J. and Constance C. Hatala.

COUNTY: Indian River

LOCATION: Section 03, Township 31 South, Range 39 East

CONSIDERATION: $ 357,000

REVIEW NO.609002
                          APPRAISED BY
                     (Sutte)      APPROVED      PURCHASE   OPTION 
 SELLER    ACRES    (11/15/94)     VALUE         PRICE      DATE 
 Hatala    1.97     $357,000     $357,000       $357,000    10/15/96











STAFF REMARKS: The Archie Carr Sea Turtle Refuge CARL project is ranked number 3 on the CARL Priority Project List approved by the Board of Trustees on February 14, 1995, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. This project contains 948 acres, of which 322.04 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 623.99 acres or 65.82 percent of the project will remain to be acquired.

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

A certified survey, environmental site assessment and title insurance policy will be provided by the purchaser.

Although sea turtle nesting occurs from the southern tip of Texas to the southern coast of Virginia, a 20-mile stretch of beach in Brevard and Indian River Counties, Florida, is one of the most significant nesting areas for Loggerhead Sea Turtles in the world; the most significant nesting area for Green Sea Turtles in the western hemisphere and an occasional nesting area for the Leatherback Sea Turtle, one of the largest and rarest sea turtles. Stretches of quiet, undisturbed sandy beaches, with little or no artificial light, are essential to the reproductive

Board of Trustees

Agenda - May 29, 1996

Page Three

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Item 4, cont.

success and survival of sea turtles. For thousands of years, sea turtles have returned each year to these beaches to lay their eggs and continue the species. The Archie Carr Sea Turtle Refuge project is designed to help protect the habitat and assure the continued survival of these endangered sea turtles. The proposed acquisition would add to several public ownerships protecting undeveloped Atlantic Coast shoreline.

Indian River County, with support from other agencies, will manage the site with all management activities being directed toward the preservation of the sea turtle nesting beaches.

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 4, Pages 1-20)

RECOMMEND APPROVAL

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Item 5 Wekiva-Ocala Greenways CARL Project/Donald L. Jung Option Agreement

REQUEST:  Consideration of an option agreement to acquire approximately 1,096.3 acres within the Wekiva-Ocala Greenways CARL project from Donald L. Jung, Trustee.

COUNTY:  Lake

LOCATION:  Sections 34 and 35, Township 17 South, Range 29 East

CONSIDERATION:  $1,450,000

REVIEW NO. 609003
                        APPRAISED BY
                       Hupp       Arline     APPROVED    PURCHASE   OPTION
PARCEL       ACRES   (08/31/95)  (08/31/95)   VALUE       PRICE      DATE 
Jung, Tr.   1,096.3  $1,644,500  $1,645,000 $1,645,000 $ 1,450,000  09/30/96









STAFF REMARKS: The Wekiva-Ocala Greenways CARL project is ranked number 7 on the CARL Priority Project List approved by the Board of Trustees on February 14, 1995, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. The Wekiva-Ocala Greenways project contains 28,050 acres, of which 10,853.82 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 16,099.88 acres or 57.39 percent of the project remains to be negotiated.

A title search of the property revealed that approximately 476 acres are encumbered by outstanding oil, gas and mineral interests held by Volaco, Inc. The Bureau of Geology has indicated that the potential for economic oil and gas production in the area is considered slim and the potential for economic mineral development in the area is considered low. The Bureau of Appraisal has indicated that the outstanding interests do not affect the market value of the property and the managing agency indicates that the outstanding interests do not affect management of the subject property. Staff recommends acquiring these properties subject to the outstanding interests.

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

Board of Trustees

Agenda - May 29, 1996

Page Four

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Item 5, cont.

A certified survey and the environmental site assessment will be provided by the purchaser prior to closing.

These properties will be managed by the Division of Recreation and Parks as a state preserve.

The springs, rivers, lakes, swamps, and uplands stretching north from Orlando to the Ocala National Forest are an important refuge for the Florida black bear, as well as other wildlife such as the bald eagle, swallow-tailed kite, Florida scrub jay and wading birds. The Wekiva-Ocala Greenway will protect these animals and the Wekiva and the St. Johns river basins by protecting natural corridors connecting Wekiva Springs State Park, Rock Springs Run State Reserve, the Lower Wekiva River State Preserve and Hontoon Island State Park with the Ocala National Forest. It will also provide the people of the booming Orlando area with a large, nearby natural area in which to enjoy camping, fishing, swimming, hiking, canoeing and other recreational pursuits.

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

(See Attachment 5, Pages 1-24)

RECOMMEND APPROVAL

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Item 6 Tate's Hell Carrabelle Tract CARL Project/Southern Pine Plantations of Georgia, Inc./TNC Option Agreement

REQUEST: Consideration of the acquisition of an option agreement to acquire 14,958 acres within the Tate's Hell Carrabelle Tract CARL project from The Nature Conservancy (TNC).

COUNTIES: Franklin and Liberty

LOCATION: Sections 19 - 23 and 26 - 35, Township 05 South, Range 04 West; and

Sections 21 - 29 and 33 - 36, Township 05 South, Range 05 West

CONSIDERATION: $7,651, 650 ($7,576,650 for the acquisition; $75,000 for the purchase of the option agreement)

REVIEW NO. 609004

               APPRAISED BY
           King        Rogers   APPROVED    PURCHASE     OPTION 
ACRES     (01/09/96) (08/23/95)  VALUE       PRICE        DATE 
14,958    $8,601,000 $7,939,700 $8,601,000 $7,651,650    6/17/96







STAFF REMARKS: The Tate's Hell Carrabelle Tract CARL project is ranked number 9 on the CARL Priority Project List approved by the Board of Trustees on February 14, 1995, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. This project contains 214,520 acres, of which 90,611 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 108,951 acres or 50.79 percent of the project will remain to be negotiated.

Pursuant to a multi-party acquisition agreement entered into between the Division of State Lands and TNC, TNC has acquired an option to purchase 14,958 acres within the Tate's Hell Carrabelle Tract CARL project from Southern Pine Plantations of Georgia, Inc., a Georgia corporation. After this acquisition is approved, the Board of Trustees will acquire the option from TNC for $75,000, which represents TNC's costs associated with acquiring the option. The Board of Trustees may then exercise the option and purchase the property. The assignment of option agreement provides that payment to TNC is contingent upon the Board of Trustees Board of Trustees

Agenda - May 29, 1996

Page Five

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Item 6, cont.

successfully acquiring the property from the owner. The assignment of option agreement further provides that in no event will the purchase price for the option and the purchase price of the property exceed the statutory maximum value of the property.

Title information revealed that outstanding oil, gas and mineral interests and a timber-cutting agreement encumber the property. Based upon available title information, it appears that two outstanding mineral interests retain a surface right of entry. Both such interests affect the same 320-acre portion of the subject property. An undivided one-half interest is claimed by Max and Rosenia Kilbourn, and an undivided one-fourth interest is claimed by Exxon Corporation. The seller has made arrangements to purchase the interest claimed by Mr. and Mrs. Kilbourn, and will convey this interest to the Board of Trustees at closing. The seller has discussed with Exxon Corporation the possibility of donating its oil, gas and mineral interests to the Board of Trustees at closing. It is unknown at this time whether Exxon Corporation will agree to this donation. Available title information also discloses various outstanding oil, gas and mineral interests for which the surface right of entry has been barred by the Marketable Record Title Act (chapter 712, F.S.). These interests for which the surface right of entry is barred affect only a portion of the subject property. A mineral study has been conducted on the property and reviewed by the Bureau of Geology. The only mineral found to have economic importance at the present time is limestone. The potential for mining on this property is possible since there is an active mining operation in close proximity to the site, and the fact that the seller will be retaining 650 acres of the subject property to conduct mining operations. The Bureau of Appraisal has reviewed the mineral study and the appraisals have incorporated a mineral value as part of the overall value. The Division of Forestry, the managing agency, has determined that the property can be effectively managed without obtaining a release of the outstanding mineral interests or the timber-cutting agreement.

The owner is retaining 650 acres with access to be provided over the property the Board of Trustees has contracted to purchase from Coastal Timber Resources, Ltd. The contract requires that the Board of Trustees grant to seller a perpetual non-exclusive easement over a portion of Timber Road No. 16, for ingress and egress to the 650 acres. This easement will be granted in return for the seller agreeing to retain 650 acres in the location requested by the managing agency and TNC. Originally the seller wanted to retain 650 acres in an area that would have adversely affected the headwaters of Womack Creek. The seller will also reserve perpetual non-exclusive easements over various timber roads around the perimeter of the 650-acre parcel.

The contract contains a right of first refusal in favor of the Board of Trustees with respect to the 650-acre parcel which is being retained by the seller. This right of first refusal is a continuing right (i.e., it will continue even if the Board of Trustees elects not to exercise its right), which is granted for a term of approximately 90 years.

All mortgages and liens encumbering the subject property will be satisfied at the time of closing. Staff has been advised that various lending institutions and creditors will retain a security interest in the seller's interests under the timber-cutting agreement referenced above, and in the timber which is to be cut pursuant to this agreement. These timber interests are excluded from the rights and interests which will be acquired by the Board of Trustees in this transaction. In the event the commitment for title insurance, to be obtained prior to closing, reveals any other encumbrances which may affect the value of the property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

A certified survey will be provided by the seller prior to closing with the purchaser reimbursing the seller for 50 percent of the actual, reasonable cost of the survey. An environmental site assessment will be provided by the seller prior to closing.

The remote flatwoods and swamps spreading for miles through Franklin County from the Apalachicola to the Ochlockonee rivers, though logged, are critical to the survival in north Florida of black bear and other wildlife that need large unpopulated areas. The Tate's Board of Trustees

Agenda - May 29, 1996

Page Six

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Item 6, cont.

Hell/Carrabelle Tract will conserve most of this land, maintaining a link of undeveloped land with the Apalachicola National Forest and the Apalachicola National Estuarine Research Reserve, preserving the water quality of creeks that flow into productive Apalachicola Bay, and letting the public hunt, fish, canoe, or simply view the plants and animals in this uniquely large landscape.

The Tate's Hell property will be managed as a state forest by the Division of Forestry under multiple-use concepts.

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 1-53)

RECOMMEND APPROVAL

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Item 7 Tate's Hell Carrabelle Tract CARL Project/Rex Lumber Company Option Agreement

REQUEST: Consideration of the acquisition of an option agreement to acquire 23,759.98 acres within the Tate's Hell Carrabelle Tract CARL project from Rex Lumber Company.

COUNTIES: Franklin and Liberty

LOCATION: Sections 13-15, 22-26, 35 and 36, Township 05 South, Range 04 West; Sections 19, 20 and 27-34, Township 05 South, Range 03 West; Sections 25, 26 and 34-36, Township 06 South, Range 05 West; Sections 01, 02, 11-15, 21-24 and 27-33, Township 06 South, Range 04 West; Sections 03-08 and 19, Township 06 South, Range 03 West; Sections 01-03 and 09-14, Township 07 South, Range 05 West; Sections 04-08 and 18, Township 07 South, Range 04 West

CONSIDERATION: $24,850,000

REVIEW NO. 609005
                   APPRAISED BY
            Miller      Griffith    APPROVED     PURCHASE    OPTION 
ACRES      (11/03/95)  (09/01/95)    VALUE        PRICE       DATE 
23,759.98    $27,330,000  $25,548,492    $27,330,000    $24,850,000   10/31/96




STAFF REMARKS: The Tate's Hell Carrabelle Tract CARL project is ranked number 9 on the CARL Priority Project List approved by the Board of Trustees on February 14, 1995, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. This project contains 214,520 acres, of which 105,569 have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 85,191.02 acres or 39.71 percent of the project will remain to be negotiated.

Preliminary title information revealed that outstanding mineral interests and a timber-cutting agreement encumber portions of the property. Based upon the preliminary title information, there are five outstanding mineral interests which have surface right of entry and two royalty interests which affect various portions of the property.

The Bureau of Geology has advised staff that the only mineral found to have economic importance at the present time is limestone and that the potential for oil and gas production is slim. The potential for mining on this property is possible because there is a 162-acre active mining operation adjacent to this site. The seller intends to donate the 162-acre mined site to

Board of Trustees

Agenda - May 29, 1996

Page Seven

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Item 7, cont.

the Board of Trustees after reclamation has been completed. The Bureau of Appraisal has reviewed the mineral evaluation and the appraisals have incorporated a mineral value as part of the overall value. The Division of Forestry, the managing agency, believes that the property can be effectively managed without obtaining a release of the outstanding mineral interests or the timber-cutting agreement. Additionally, members of the CARL staff have recommended acquiring the property subject to these outstanding mineral interests.

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

A certified survey will be provided by the seller prior to closing with the purchaser reimbursing the seller for the actual, reasonable cost of the survey. An environmental site assessment and title insurance will be provided by the seller prior to closing.

The remote flatwoods and swamps spreading for miles through Franklin County from the Apalachicola to the Ochlockonee rivers, though logged, are critical to the survival in north Florida of black bear and other wildlife that need large unpopulated areas. The Tate's Hell/Carrabelle Tract will conserve most of this land, maintaining a link of undeveloped land

with the Apalachicola National Forest and the Apalachicola National Estuarine Research Reserve, preserving the water quality of creeks that flow into productive Apalachicola Bay, and letting the public hunt, fish, canoe, or simply view the plants and animals in this uniquely large landscape.

The Tate's Hell property will be managed as a state forest by the Division of Forestry under multiple-use concepts.

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

(See Attachment 7, Pages 1-39)

RECOMMEND APPROVAL

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Item 8 Tate's Hell Carrabelle Tract CARL Project/Christian/Christian/Wooten/TPL Option Agreements

REQUEST: Consideration of the acquisition of two option agreements to acquire 1,529.6 acres within the Tate's Hell Carrabelle Tract CARL project from The Trust For Public Land (TPL).

COUNTY: Franklin

LOCATION: Sections 13, 16, 20-23 and 26-29, Township 07 South, Range 05 West

CONSIDERATION: $852,800 ($820,000 for the acquisitions; $32,800 for the purchase of the option agreements)

                           APPRAISED BY 
                   King       Griffith       APPROVED PURCHASE  OPTION
         ACRES   (08/07/95) (06/06/95)        VALUE    PRICE     DATE 
609006   213.5   $112,941                   $112,941  $105,000  90 days after
609007 1,316.1   $759,059    $727,500       $759,059  $715,000  BOT approval
       -------                              --------  --------
       1,529.6                              $872,000  $820,000






Board of Trustees

Agenda - May 29, 1996

Page Eight

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Item 8, cont.

STAFF REMARKS: The Tate's Hell Carrabelle Tract CARL project is ranked number 9 on the CARL Priority Project List approved by the Board of Trustees on February 14, 1995, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. This project contains 214,520 acres, of which 129,328.98 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 83,661.42 acres or 39 percent of the project will remain to be negotiated.

Pursuant to a multi-party acquisition agreement entered into between the Division of State Lands and TPL, TPL has acquired two options to purchase 1,529.6 acres within the Tate's Hell Carrabelle Tract CARL project from Wayne F. Christian, Don R. Christian and Olin Wooten. After this acquisition is approved, the Board of Trustees will acquire the options from TPL for $32,800, which represents TPL's costs associated with acquiring the options. The Board of Trustees may then exercise the options and purchase the property. The assignment of option agreements provide that payment to TPL is contingent upon the Board of Trustees successfully acquiring the property from the owners. The assignment of option agreements further provide that in no event will the purchase price for the options and the purchase price of the property exceed the statutory maximum value of the property.

Preliminary title information revealed that outstanding mineral interests encumber the property. Based on the preliminary title information, there are three outstanding mineral reservations, one royalty interest and five oil, gas and mineral leases which affect the property. The royalty interest has no right of entry. It appears that the reserved mineral interests retain rights of entry since a Notice of Claim has been filed. Based upon the Notice of Claim, it appears that the outstanding mineral reservations are claimed by ten individual owners living near Wewahitchka, Florida. A Notice of Claim has also been filed by St. Joseph Land and Development Company. The five oil, gas and mineral leases (some of which may have expired) are held by either Exxon Corporation or Amoco Production Company. All of the oil, gas and mineral leases contain a right of entry for exploration, mining and drilling. The contract requires the seller to make diligent efforts to acquire or extinguish all oil, gas and mineral interests with surface rights of entry. The property was appraised subject to these outstanding mineral interests. Staff is in the process of having the Bureau of Geology conduct a mineral study. Upon obtaining the results of this mineral study, staff will provide copies to the Bureau of Appraisal and the Division of Forestry (the managing agency) for their consideration. The managing agency has not yet reviewed or commented upon the various referenced mineral interests, because neither the mineral study nor updated title information on the outstanding mineral interests is presently available. In the event that the mineral study or the comments of the managing agency reveal anything which will affect the value of the property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

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

A certified survey will be provided by the purchaser prior to closing. An environmental site assessment will be provided by the seller prior to closing, with the purchaser reimbursing the seller for the actual, reasonable cost of the environmental site assessment.

The remote flatwoods and swamps spreading for miles through Franklin County from the Apalachicola to the Ochlockonee rivers, though logged, are critical to the survival in north Florida of black bear and other wildlife that need large unpopulated areas. The Tate's Hell/Carrabelle Tract will conserve most of this land, maintaining a link of undeveloped land with the Apalachicola National Forest and the Apalachicola National Estuarine Research Reserve, preserving the water quality of creeks that flow into productive Apalachicola Bay, and letting the public hunt, fish, canoe, or simply view the plants and animals in this uniquely large landscape.

Board of Trustees

Agenda - May 29, 1996

Page Nine

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Item 8, cont.

The Tate's Hell property will be managed as a state forest by the Division of Forestry under multiple-use concepts.

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

(See Attachment 8, Pages 1-52)

RECOMMEND APPROVAL

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Item 9 Florida First Magnitude Springs (Weeki Wachee) CARL Project/Equity Brokers, Inc. Option Agreement

REQUEST:  Consideration of an option agreement to acquire approximately 0.689 acre within the Florida First Magnitude Springs (Weeki Wachee) CARL project from Equity Brokers, Inc.

COUNTY:  Hernando

LOCATION:  Section 35, Township 22 South, Range 17 East

CONSIDERATION:  $38,000

REVIEW NO. 609008
            APPRAISED BY
              (Dohring)    APPROVED    PURCHASE    OPTION 
SELLER ACRES (05/18/95)     VALUE       PRICE       DATE 
Equity 0.689 $ 60,000      $ 60,000   $ 38,000    06/30/96


STAFF REMARKS:  The Florida First Magnitude Springs (Weeki Wachee) CARL project is ranked number 14 on the CARL Priority Project List approved by the Board of Trustees on February 14, 1995, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan.  The Weeki Wachee portion of the project contains 1,266.65 acres, of which 585.46 acres have been acquired or are under agreement to be acquired.  After the Board of Trustees approves this agreement, 680.49 acres or 53.7 percent of this portion of the project will remain to be negotiated.

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

A certified survey and environmental site assessment will be provided by the purchaser.

Florida has approximately thirty first magnitude springs which discharge on average at least 100 cubic feet of water per second. Commercial, residential and agricultural run-off, clearcutting, mining, and unsupervised recreation can degrade the water quality of these springs and harm the Florida Aquifer. The First Magnitude Springs project is aimed at protecting eight of these thirty springs by acquiring land around or near the headwaters.

The Weeki Wachee Springs group forms the headwaters of the Weeki Wachee (or Weekiwachee) River. The area around the Weeki Wachee Springs pool has been extensively developed and is a well-known tourist attraction; however, at present the upper river is relatively pristine and includes natural communities such as scrub, xeric hammock, depression marsh, spring-run stream and aquatic caves. In addition to the recreational activities associated with the headspring attraction, hiking, bicycling, fishing, picnicking, canoeing, camping, nature appreciation and natural resource education can be accommodated.

Board of Trustees

Agenda - May 29, 1996

Page Ten

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Item 9, cont.

This property will be managed by Florida Game and Fresh Water Fish Commission in conjunction with the Chassahowitzka 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 9, Pages 1-19)

RECOMMEND APPROVAL

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Item 10 Kissimmee Prairie/River CARL Project/South Florida Water Management District Acquisition Agreement

REQUEST:  Authority to enter into an Acquisition Agreement with South Florida Water Management District for the Kissimmee Prairie/River CARL project.

COUNTY:  Okeechobee

LOCATION: Sections 01-03, 11-15, 21-28 and 31-36, Township 33 South, Range 32 East; Sections 02-11, 14-23 and 26-35, Township 33 South, Range 33 East; Sections 01 and 02, Township 34 South, Range 31 East; Sections 01-06, Township 34 South, Range 32 East; Sections 02, 03, 05 and 06, Township 34 South, Range 33 East.

STAFF REMARKS:  The Kissimmee Prairie/River CARL project is ranked number 6 on the CARL Bargain\Shared Project List approved by the Board of Trustees on February 13, 1996, and is anticipated to be eligible for negotiation under the Division of State Lands' FY96/97 Land Acquisition Workplan. The project contains 48,347 acres divided into a river parcel and a prairie parcel. This proposed agreement covers the 36,659.95-acre prairie parcel. The South Florida Water Management District (District) is acquiring the 11,674.25-acre river parcel as part of the Kissimmee River Restoration Project.

To facilitate the acquisition of this project the District has offered to take the lead in the acquisition of the prairie parcel. Staff has prepared an agreement that would allow the District to acquire the prairie parcel in accordance with section 259.041(16), F.S., utilizing the procedures set out in section 373.139, F.S. On June 15, 1995, the Board of Trustees approved the use of the District's procedures to allow the District to acquire lands to be held jointly by the Board of Trustees and the District.

On May 9, 1996, District staff was authorized by its Governing Board to execute the agreement. If the Board of Trustees approves this item, staff will execute the agreement on behalf of the Board of Trustees. Request for approval of the purchase is anticipated to be presented to the Board of Trustees on June 13, 1996.

Incorporated into the agreement are a number of assurances that the District is giving the Board of Trustees in return for its consideration of this agreement. The District has agreed to: (1) comply with the procedures set out in section 373.139, F.S.; (2) defend the Board of Trustees against all title and survey disputes or defects and environmental contamination associated with each acquisition negotiated by the District that were either known or should have been known by the District at the time the District acquired the parcel; and (3) reimburse the Board of Trustees its pro-rata ownership percentage of any overpayment of the purchase price if an audit or investigation determines that the purchase price paid exceeded the actual appraised value.

The entire project is owned by the Latt Maxcy Corporation. Under the proposed agreement,

Board of Trustees

Agenda - May 29, 1996

Page Eleven

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Item 10, cont.

the District and Board of Trustees will jointly acquire the prairie parcel. The Board of Trustees'

percentage of the purchase price of the prairie parcel will also be used to establish the percentage of its share of the costs associated with the purchase and the percentage of ownership the Board of Trustees will hold in the prairie parcel. The District had intended to acquire the river parcel under the Save Our Rivers program and leave the entire prairie parcel to be acquired under the CARL program. The District has agreed to contribute five million dollars towards the purchase of the prairie parcel. It is estimated that the Board of Trustees' share of the prairie parcel will be about seventy-five percent.

Under the proposed agreement, the District staff may obtain and review appraisals, negotiate a purchase contract and secure the approval of its Governing Board. The District has already secured and reviewed appraisals provided by The Nature Conservancy (TNC) and TNC, on behalf of the District, has entered into two separate agreements with the owner to purchase both the prairie and river parcels. The District's Governing Board will provide the Department of Environmental Protection with a resolution covering the assurances noted in the previous paragraph and requesting a reimbursement of the Board of Trustees' share of the purchase price including the cost of acquiring TNC's option. Staff will request an approval for the Board of Trustees' share of the purchase price for the prairie parcel. In addition, the agreement provides for the District to be reimbursed its pro-rata percentage of all costs associated with its attempt to acquire lands within the project, including all pre-acquisition and closing related costs, with the pre-acquisition costs being reimbursed even if the District is unsuccessful in acquiring the property. The agreement authorizes the Division of State Lands staff to reimburse these costs from CARL incidental expense funds.

This prairie parcel will be managed by the Division of Recreation and Parks as a state preserve for the conservation and preservation of its natural resources.

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 10, Pages 1-6)

RECOMMEND APPROVAL

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Item 11 Jordan Ranch CARL Project/Southwest Florida Water Management District Acquisition Agreement

WITHDRAWN FROM APRIL 23, 1996 AGENDA

REQUEST: Consideration of (1) additional modifications to the Southwest Florida Water Management District procedures as approved by the Board of Trustees on April 11, 1995; and (2) an acquisition agreement with Southwest Florida Water Management District for the Jordan Ranch CARL project.

COUNTY: Citrus

LOCATION: Sections 14, 15, 22, 23, 25-27, 29, 34 and 35 Township 17 South, Range 19 East.

STAFF REMARKS: The Jordan Ranch CARL project is ranked number 8 on the Bargain/Shared CARL List approved by the Board of Trustees on February 13, 1996, and is anticipated to be eligible for negotiation under the Division of State Lands' FY96/97 Land Acquisition Workplan. The proposed agreement covers the entire 2,899.64-acre Jordan Ranch CARL project.

Board of Trustees

Agenda - May 29, 1996

Page Twelve

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Item 11, cont.

To facilitate the acquisition of this project, the Southwest Florida Water Management District (District) has offered to take the lead in the acquisition of this joint project. On April 11, 1995, the Board of Trustees approved the use of the District's procedures to allow the District to acquire lands to be held jointly by the Board of Trustees and the District. At that time the Department of Environmental Protection (DEP) recommended that the District's procedures, with a few modifications, be substituted for the procedures provided for in section 259.041, F.S., and section 18-1, F.A.C., to allow the District to acquire lands to be owned jointly by the District and the Board of Trustees. The most significant modification to the District's normal procedures was a requirement for an independent appraisal review. Following a review of the first joint acquisition done by the District, staff has also recommended some modifications to the District's surveying requirements. The Division of State Lands (DSL) staff has prepared an agreement, including the procedural modifications noted, that would allow the District to acquire the Jordan Ranch CARL project in accordance with section 259.041(16), F.S., utilizing the procedures set out in section 373.139, F.S.

If the Board of Trustees approves this item, the District staff will present the agreement to the Governing Board of the District for execution at its next Governing Board meeting. Upon receipt of the executed agreement from the District, DSL staff will execute the agreement on behalf of the Board of Trustees.

Incorporated into the agreement are a number of assurances that the District is giving the Board of Trustees in return for its consideration of this agreement. The District has agreed to: (1) comply with the procedures set out in section 373.139, F.S.; (2) defend the Board of Trustees against all title and survey disputes or defects and environmental contamination associated with each acquisition negotiated by the District that were either known or should have been known by the District at the time the District acquired the parcel; and (3) reimburse the Board of Trustees 50 percent of any overpayment of the purchase price if an audit or investigation determines that the purchase price paid exceeded the actual appraised value.

Under the proposed agreement, the District staff will obtain and review appraisals, negotiate a purchase contract and secure the approval of its Governing Board. The District's Governing Board will provide DSL with a resolution covering the assurances noted in the previous paragraph and requesting reimbursement of the Board of Trustees' share of the purchase price. DSL staff will request a release of funds for the Board of Trustees' share of the purchase price for each parcel the District contracts to purchase. In addition, the agreement provides for the District to be reimbursed 50 percent of all costs associated with its attempt to acquire lands within the project, including all pre-acquisition and closing related costs, with the pre-acquisition costs being reimbursed even if the District is unsuccessful in acquiring any property. The agreement authorizes staff to reimburse these costs from CARL incidental expense funds previously released by the Board of Trustees. If the Board of Trustees authorizes the release of funds, the District will proceed to closing with title to be vested jointly with the District and the Board of Trustees, each holding an undivided 50 percent interest.

The Jordan Ranch CARL project will be managed by the Division of Forestry as a state forest.

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

(See Attachment 11, Pages 1-8)

RECOMMEND APPROVAL

Board of Trustees

Agenda - May 29, 1996

Page Thirteen

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Item 12 J. H. Keith Bullock Surplus Land Sale

REQUEST: Consideration of (1) an offer to purchase a parcel of surplus state land; and (2) waiver of the competitive bidding requirement as outlined in rule 18-2.011 (2) (b), F.A.C.

COUNTY: Escambia

APPLICANT: J. H. Keith Bullock

LOCATION: A portion of Arpent Lots 36 and 37 in the Old City Tract located at 24 West Chase Street in Pensacola, Florida, being in Section 46, Township 02 South, Range 30 West.

State Lands Inventory Number 17-0200.0.

CONSIDERATION: $112,000, representing the appraised market value less the estimated cost of asbestos abatement, to be deposited in the Internal Improvement Trust Fund.

STAFF REMARKS: Title to this lot and two-story structure, which is commonly known as the Civil Service Building, was vested in the Board of Trustees by virtue of a quitclaim deed from the Florida Development Commission dated June 6, 1972. The Board of Trustees subsequently leased the property to Escambia County to be used as an auxiliary building for public county offices. A 1988 safety survey revealed asbestos contamination of this building and the county relocated its offices to a new facility. The building has remained vacant since that time and continues to deteriorate.

Division of State Lands staff offered this property for sale by sealed competitive bid on May 11, 1993. No bids were submitted. Staff continued to make the parcel available for sale by posting a sign on the property. An offer to purchase this parcel in the amount of $100,000 was made and approved by the Board of Trustees on February 10, 1994. This purchase was contingent upon the buyer/developer's successful bid of the new federal courthouse project in Pensacola. That bid was awarded to another developer and this sale never materialized.

Staff recently received an offer from J. H. Keith Bullock to purchase the property. Rule 18-2.011(2)(b) requires that properties larger than five acres in size or with a market value greater than $100,000 be competitively bid unless a determination is made by the Board of Trustees that competitive bidding for the property is not in the public interest. It is staff's recommendation that the competitive bidding requirement be waived and this property be sold directly to the applicant in accordance with the terms of the offer for the following reasons:

1. A determination has been made by Mr. William Langley, staff appraiser, that the market in the area has not improved since the original appraisal was performed in 1992;

2. The property has been competitively bid unsuccessfully;

3. The presence of asbestos, as well as structural damage from a recent hurricane, discourages potential buyers; and

4. Staff has received reports that vagrants are using the property.

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

(See Attachment 12, Pages 1-23)

RECOMMEND APPROVAL

Board of Trustees

Agenda - May 29, 1996

Page Fourteen

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Item 13 City of Riviera Beach Dedication Modification/Palm Beach Seaport Aquarium, Inc.

REQUEST: Conceptual approval of (1) a modification or release of Dedication No. 24438-A to allow a seaport aquarium; and (2) the City of Riviera Beach's assignment of 1.114 acres, more or less, of the dedicated lands to Palm Beach Seaport Aquarium, Inc., to be used only for aquarium purposes.

COUNTY: Palm Beach

Dedication No. 24438-A

APPLICANT: City of Riviera Beach

LOCATION: Section 23, Township 42 South, Range 43 East, within the local jurisdiction of the City of Riviera Beach

CONSIDERATION: To be negotiated

STAFF REMARKS: In 1977, the Board of Trustees (BOT) dedicated to the City of Riviera Beach approximately 14 acres of submerged lands. For many years, it was not uncommon for the BOT to dedicate submerged lands to local governments, often for no consideration, if they were conveyed with public purpose restrictions. Dedication No. 24438-A is an example of that practice and contains specific language referencing use of the property for municipal park and recreational purposes including, but not necessarily limited to, a marina complex, concessions and associated facilities operated by the City of Riviera Beach or leased and under the regulation or control of the city. The city has located a marina on a portion of the dedicated lands. The remaining dedicated area consists of submerged lands waterward of an existing city park.

As part of a waterfront redevelopment project located within an Enterprise Zone, the city has contracted with Palm Beach Seaport Aquarium, Inc., to locate a world class aquarium along its waterfront. The conceptual project design shows a portion of the aquarium structure extending from the upland out into the submerged land subject to the dedication. The aquarium would be built and operated by a not-for-profit corporation and is projected to cost between 80 and 120 million dollars.

The City of Riviera Beach is proposing to assign a portion of the dedicated area to the seaport aquarium. Since the aquarium would not be operated by the city, or leased or under the regulation or control of the city, and because it is a private use, it is not strictly consistent with the dedication. The city is requesting and staff is recommending modification of the dedication to allow the city to assign it to Palm Beach Seaport Aquarium, Inc., contingent on the following conditions:

1 1. Palm Beach Seaport Aquarium, Inc., must obtain all permits required by law for the proposed development;

2. Palm Beach Seaport Aquarium, Inc., shall make annual progress reports to the Department of Environmental Protection outlining the progress of the proposed development until the completion of construction; and

3. The assignment will become effective upon execution; provided, however, that the assignment shall automatically terminate if development of the site is not commenced within five years of the execution date of the modification.

An appraisal will be prepared to determine the value of the Board of Trustees' interest in the 1.114-acre parcel. This information will be used to negotiate the amount of consideration to be paid to the BOT. Final terms and conditions will be brought to the BOT for its consideration.

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

Board of Trustees

Agenda - May 29, 1996

Page Fifteen

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Item 13, cont.

was not in compliance. A compliance agreement between DCA and the local government has been finalized. The proposed action is consistent with the adopted plan according to a letter received from the City of Riviera Beach.

(See Attachment 13, Pages 1-18)

RECOMMEND CONCEPTUAL APPROVAL

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Item 14 BOT v. Sunland Estates, Inc., et al Settlement Agreement/JHT Subdivision

REQUEST: Consideration of a partial settlement in the case of Board of Trustees of the Internal Improvement Trust Fund v. Sunland Estates, et al.

COUNTY: Monroe

LOCATION: Section 21, Township 60 South, Range 40 East

CONSIDERATION: $300,000

STAFF REMARKS: JHT Subdivision is located within the boundaries of the North Key Largo CARL project. The Department of Environmental Protection (DEP) has been authorized to acquire, by the exercise of the power of eminent domain, if necessary, all remaining undeveloped land within the project boundaries. In preparing to acquire the lots within the JHT Subdivision, the DEP discovered that several of the lots appeared to occupy lands that had been created by illegal fill. In 1992, the DEP initiated a quiet title suit against several lot owners to determine title.

WRH Mortgage, Inc., as receiver for Miami National Bank, foreclosed upon and then sold to WRH Properties, Inc., lots 1,2,3,5,6,7,8,9,12,13,14,15,19, and 20 in the JHT Subdivision. Lots 1,2,3, 19 and 20 are among those the DEP believes were illegally filled and are subject to the quiet title suit. The remaining lots are not impacted by the quiet title suit but have been identified for acquisition. WRH Properties, Inc. is not a willing seller and, to acquire these lots, the DEP will have to pursue the quiet title suit and then proceed to condemn whatever lots the court determines WRH properties, Inc. owns.

The DEP has negotiated a settlement agreement with WRH Properties, Inc. under which the DEP will pay WRH Properties, Inc. $300,000 and WRH Properties, Inc. will convey by warranty deed lots 5,6,7,8,9,12,13,14 and 15 and will quitclaim its interest in lots 1,2,3,19 and 20 as well as its interest in Tracts A and B and the canal located within the JHT Subdivision. The DEP recommends this settlement as it will avoid the necessity and uncertainty of pursuing the quiet title suit as well as the costs associated with having to bring a condemnation suit. An appraisal done in 1992 estimates a retail value for each unimproved lot to be $29,000. The cost of condemning lots in the North Key Largo CARL project, including land value plus costs and attorneys fees, has been averaging 115 percent to 130 percent of the DEP's appraisals.

Approval of this settlement agreement will resolve all issues involving lots owned by WRH Properties, Inc. However, litigation concerning other portions of JHT Subdivision will remain pending.

This property will be managed by the Division of Recreation and Parks.

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

(See Attachment 14, Pages 1-19)

RECOMMEND APPROVAL