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AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

MAY 13, 1997


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Item 1 Minutes

Submittal of the minutes of the March 25, 1997 Cabinet meeting.

RECOMMEND ACCEPTANCE


Item 2 Three Option Agreements/Wekiva-Ocala Greenway CARL Project

REQUEST:  Consideration of three option agreements to acquire 170 acres within the Wekiva-Ocala Greenway CARL project from three separate owners.

COUNTY:  Lake

LOCATION:  Section 19, Township 18 South, Range 29 East and Section 33, Township 18 South, Range 28 East

CONSIDERATION:  $386,000

APPRAISED BY

REVIEW Goodman Clayton Hupp APPROVED PURCHASE OPTION

NO. PARCEL ACRES (08/22/94) (02/22/95) (03/31/95) VALUE PRICE DATE

708001 Simpson 160 $322,500 $352,000 $352,000 $332,000 120 days

708002 Reed 5 $27,500* $ 27,500 $ 27,000 after BOT

708003 Mechling 5 $27,500 $ 27,500 $ 27,000 approval

170 $407,000 $386,000

* appraisal revised on 04/10/97

STAFF REMARKS: The Wekiva-Ocala Greenway CARL project is ranked number 7 on the CARL Priority Project List approved by the Board of Trustees on February 13, 1996, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. The project contains 68,578 acres, of which 26,248 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves these agreements, 42,160 acres or 61 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 commitments for title insurance, to be provided prior to closing, reveal any encumbrances which may affect the value of the properties or the proposed management of the properties, staff will so advise the Board of Trustees prior to closing.

The certified surveys and environmental site assessments will be provided by the purchaser prior to closing.

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.

These properties will be managed by the Department of Agriculture and Consumer Services, Division of Forestry as a part of the Seminole State Forest.

Board of Trustees

Agenda - May 13, 1997 Page Two


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Item 2, cont.

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

(See Attachment 2, Pages 1-54)

RECOMMEND APPROVAL


Item 3 Allman Option Agreement/Archie Carr Sea Turtle Refuge CARL Project

REQUEST:  Consideration of an option agreement to acquire approximately 0.90 acre within the Archie Carr Sea Turtle Refuge CARL project from Teddy Ann and John B. Allman, Co-Trustees.

COUNTY:  Brevard

LOCATION:  Section 06, Township 30 South, Range 39 East

CONSIDERATION:  $205,000

APPRAISED BY

REVIEW Benson APPROVED PURCHASE OPTION

NO. PARCEL ACRES (07/19/96) VALUE PRICE DATE

708004 Allman 0.90 $ 210,000 $ 210,000 $ 205,000 120 days after

BOT approval

STAFF REMARKS: The Archie Carr Sea Turtle Refuge CARL project is ranked number 2 on the CARL Priority Project List approved by the Board of Trustees on February 13, 1996, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. The Archie Carr Sea Turtle Refuge project contains 948 acres, of which 546.14 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 400.96 acres or 42 percent of the project remains 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.

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

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 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 property will be managed by U.S. Fish and Wildlife Service as part of the Archie Carr National Wildlife Refuge.

Board of Trustees

Agenda - May 13, 1997 Page Three


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Item 3, cont.

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

(See Attachment 3, Pages 1-23)

RECOMMEND APPROVAL


Item 4 Joseph Messenger Purchase Agreement/Survey Waiver/Belle Meade CARL Project

REQUEST:  Consideration of (1) a purchase agreement to acquire 60.40 acres within the Belle Meade CARL project from Joseph Messenger, Individually and as Trustee; and (2) a request for survey waiver.

COUNTY:  Collier

LOCATION:  Section 07, Township 50 South, Range 27 East

CONSIDERATION:  $98,800

APPRAISED BY

REVIEW PARCEL (Dane) APPROVED PURCHASE CLOSING

NO. NO. OWNER ACRES (11/28/95) VALUE PRICE DATE

708005 136 Messenger 60.40 $108,720 $108,720 $98,800 6 months after BOT

approval

STAFF REMARKS:  The Belle Meade CARL project is ranked number 3 on the CARL Priority Project List approved by the Board of Trustees on February 13, 1996, and is eligible for purchase under the Division of State Lands' Land Acquisition Workplan.  This project contains 19,227 acres, of which 8,974 acres have been acquired or are under agreement to be acquired.  After the Board of Trustees approves this agreement, 10,193 acres or 53 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 or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

A waiver of the requirement for survey of this parcel is being requested pursuant to section 18­1.005, F.A.C., because, in the opinion of the Bureau of Survey and Mapping, the parcel to be acquired meets all of the following conditions:

Board of Trustees

Agenda - May 13, 1997 Page Four


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Item 4, cont.

While this parcel is being recommended for a waiver of survey at this time, should the title commitment reveal a substantive surveying or surveying related issue which impacts the parcel, a certified survey will be provided by the purchaser prior to closing. In the event a full survey is waived, a professional land surveyor will inspect the property for any visible evidence of improvements or potential boundary issues. In cooperation with the managing agency, the Division of State Lands will acquire any special purpose survey work necessary for the effective management of the property.

An environmental site assessment and title insurance policy will be provided by the purchaser prior to closing.

The cypress swamps and old-growth slash pine flatwoods in the Belle Meade project, extending to the fast-developing suburbs of Naples, are still important for such endangered wildlife as Florida panthers, red-cockaded woodpeckers, and Florida black bear. Belle Meade is also the watershed for Rookery Bay. The Belle Meade CARL project will conserve the westernmost large natural area in southwest Florida, protect some of the southernmost populations of several rare animals, and help protect the quality of the subtropical estuary of Rookery Bay by preserving the critical hydrological connection from the flatwoods and swamps to the bay, while providing a large area for recreation in a natural environment to residents of and visitors to rapidly urbanizing southwest Florida.

This property will be managed by the Department of Agriculture and Consumer Services, Division of Forestry as part of the Picayune Strand 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 4, Pages 1-12)

RECOMMEND APPROVAL


Item 5 The Nature Conservancy (Worldwide Investment Group, Inc.) Purchase Agreement/Waiver of Marketability/Survey Waiver/Lake Wales Ridge Ecosystems (Carter Creek) CARL Project

REQUEST: Consideration of (1) a purchase agreement to acquire approximately 78.73 acres within the Lake Wales Ridge Ecosystems (Carter Creek) CARL project from The Nature Conservancy, Inc. (TNC); (2) a request to waive the marketability of title requirement of section 259.041(6), F.S. for the purchase of 15 parcels with a tax deed in the title history; and (3) a request for survey waiver.

COUNTY: Highlands

LOCATION: Sections 33 and 34, Township 33 South, Range 29 East; Sections 03, 04, 09, 10 and 11, Township 34 South, Range 29 East

CONSIDERATION: $184,500 Board of Trustees

Agenda - May 13, 1997 Page Five


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Item 5, cont.

APPRAISED BY

REVIEW Baker APPROVED PURCHASE CLOSING

NO. PARCEL ACRES (05/10/93) VALUE PRICE DATE

708006 Worldwide 78.73 $ 184,500 $ 184,500 $ 184,500* 30 and 90 days

after BOT approval

* Purchase price shall equal TNC's purchase price ($175,290.63) plus the estimated sum of TNC's direct expenses in acquiring the property, agreed upon compensation to TNC for overhead associated with the purchase of the property and TNC's holding costs. The final purchase price will likely be lower than indicated because it is primarily dependent on the length of time TNC holds the property.

STAFF REMARKS: The Lake Wales Ridge Ecosystems CARL project is ranked number 1 on the CARL Priority Project List approved by the Board of Trustees on February 13, 1996, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. This project contains 33,031 acres, of which 1,250 acres have been acquired by Southwest Florida Water Management District and 12,433.8 acres have been acquired or are under agreement to be acquired by the Board of Trustees. After the Board of Trustees approves this agreement, 19,268.5 acres or 58.3 percent of the project will remain to be acquired.

TNC has a contract to purchase approximately 134 acres, containing 114 subdivision parcels from Worldwide Investments, Inc., a Florida corporation. After this acquisition is approved, the Board of Trustees will acquire 78.73 acres (or 67 parcels) from TNC. TNC is acquiring the additional area (47 parcels) with mitigation funds for TNC ownership and management. The agreement contemplates a two phase closing on the 67 parcels where TNC will convey 57 parcels at the initial closing, and convey the remaining 10 parcels at the subsequent closing. The Board of Trustees purchase price for each closing is the sum of TNC's purchase price for the property, TNC's direct expenses in acquiring the property, TNC's holding costs, and agreed upon compensation to TNC for overhead associated with the purchase of the property. The agreement provides that in no event will the Board of Trustees' purchase price for the property exceed the DSL approved value of the property. The parcels are being closed in two phases to reduce direct expenses and holding costs associated with parcels eligible for a waiver of survey. In order to meet the initial closing date, the agreement provides the flexibility to shift parcel(s) from the initial closing to the subsequent closing. In the event any parcel(s) are shifted from one phase to another, the amount paid at each closing shall be adjusted accordingly. The agreement is contingent upon TNC acquiring the property from Worldwide Investment Group, Inc.

The property contains 15 parcels with tax deeds less than four years old in the chain of title. The title policy to be issued will contain exceptions for the rights of prior owners, mortgage holders and lien holders as to these 15 parcels, based upon the existence of a tax deed in the chain of title for each parcel. Title insurance companies are generally unwilling to insure the title with regard to the tax sale on the basis that they are unable to ascertain whether each and every technical requirement of the law has been met. While title marketability is a requirement under section 259.041, F.S., that section allows the Board of Trustees to waive that requirement provided that the public's interest is reasonably protected. While there is some risk associated with the acquisition of any property with less than perfect title, over the last fifteen years the Division of State Lands has acquired several thousand properties at tax deed sales or with tax deeds in the chain of title and the Board of Trustees have not lost any property acquired with a tax deed in the chain of title. Fifteen of the parcels involved with this transaction were acquired via tax deed by a predecessor in title on or before August, 1995 and the likelihood of a challenge at this point is remote. Staff recommends that pursuant to section 259.041, F.S., the Board of Trustees approve the waiver of marketability because the risk associated with proceeding is minimal and thus the public's interest is reasonably protected.

Board of Trustees

Agenda - May 13, 1997 Page Six


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Item 5, cont.

A waiver of the requirement for a survey of the parcels included in the first phase closing is requested pursuant to section 18-1.005, F.A.C., because, in the opinion of the Bureau of Survey and Mapping, the parcels to be acquired meet all of the following conditions:

While the first phase parcels are being recommended for a waiver of survey at this time, should the title commitment reveal a substantive surveying or surveying related issue which impacts the parcels, a certified survey will be provided by the purchaser prior to closing.

The survey for the second phase closing will be provided by the purchaser. The title commitment will be provided by the seller and the purchaser will reimburse the cost of the title commitment, not to exceed the minimum promulgated rate. The environmental site assessment will be provided by the seller and the purchaser will reimburse the approved cost of the assessment, not to exceed $15,000.

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 or proposed management of the property, staff will so advise the Board of Trustees prior to closing.

The high, sandy, Lake Wales Ridge, stretching south from near Orlando almost to Lake Okeechobee, was originally covered with a mosaic of scrub, flatwoods, wetlands, and lakes. The scrub is unique in the world - it is inhabited by many plants and animals found nowhere else - but it has almost completely been converted to citrus groves and housing developments. The Lake Wales Ridge Ecosystems CARL project is designed to protect the best remaining tracts of this scrub and the ecosystems associated with it, thereby preserving several endangered species and allowing the public to see examples of the unique original landscape of the ridge.

This property will be managed by the Florida Game and Fresh Water Fish Commission under a single-use concept as part of a wildlife and environmental 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 5, Pages 1-44)

RECOMMEND APPROVAL

Board of Trustees

Agenda - May 13, 1997 Page Seven


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Item 6 Tampa Bay Area Research and Development Authority/Leasehold Encumbrance/Estoppel Certificate DOA

REQUEST: Consideration of (1) a proposal to encumber a leasehold interest in order to obtain financing to construct a hotel on Board of Trustees' land under lease to the Tampa Bay Area Research and Development Authority; and (2) delegation of authority to the Director, Division of State Lands, to execute the estoppel certificate.

COUNTY: Hillsborough

Lease No. 3209

APPLICANT: Tampa Bay Area Research and Development Authority

LOCATION: Sections 08 and 09, Township 28 South, Range 18 East

STAFF REMARKS: The Tampa Bay Area Research and Development Authority (Authority) was formed pursuant to the provisions of Chapter 159, Part V, F.S. On November 8, 1982, the Board of Trustees leased approximately 87 acres (previously under lease to the Board of Regents for the University of South Florida) to the Authority for development of a research and development park. The lease required that a Plan of Development be submitted to the Board of Trustees for approval. That plan was completed by The Urban Studio of Tampa and was approved by the Board of Trustees on November 5, 1985. It provided for conference facilities, including overnight guest accommodations. Subsequently, in 1995, the Authority subleased property within the park to John Q. Hammons Hotels Two, L.P. (Hammons), for the purpose of constructing a conference center and hotel.

Hammons has arranged to obtain construction financing from Provident Bank of Ohio. The lender has requested an estoppel certificate from the Board of Trustees as a condition of the loan. The form of the certificate is being presented to the Board of Trustees because approval of proposals to encumber leasehold interests with mortgages or financing arrangements has not been delegated. Staff has reviewed the estoppel certificate and determined that the statements it makes are accurate with regard to the existing lease and sublease.

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

(See Attachment 6, Pages 1-6)

RECOMMEND APPROVAL


Item 7 Support Terminals Operating Partnership, L.P. Disclaimer

REQUEST: Consideration of an application for a disclaimer for a parcel of submerged lands beneath a dock encompassing 12,425.87 square feet (0.29 acre) more or less.

COUNTY: Duval

LOCATION: Section 50, Township 01 South, Range 27 East

APPLICANT: Support Terminals Operating Partnership, L.P., Limited Partnership

Board of Trustees

Agenda - May 13, 1997 Page Eight


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Item 7, cont.

STAFF REMARKS: The applicant has requested a disclaimer to the area under a dock as "permanent improvements" pursuant to the Butler Act (Chapter 8537, Acts of 1921) and section 253.129, F.S. The courts in several recent decisions (e.g., Jacksonville Shipyards and Industrial Plastics) have held that wharfs and docks constructed prior to the repeal of the Butler Act constitute "permanent improvements" for which disclaimers are appropriate.

Aerial photographs dated May, 1943, and January, 1952, show the dock in existence. Currently the dock is in disrepair resulting from a 1990 maritime accident. The current owner anticipates making repairs after a disclaimer is issued.

Staff recommends that because the lands subject to this disclaimer are subject to the inalienable public trust under which the Grantor acquired and holds title to sovereignty lands, a provision be included in the disclaimer providing that, if Grantee permanently abandons any of the improvements above and as a result of the abandonment said improvements deteriorate and wash away through a gradual, imperceptible process, all right, title and interest in the lands beneath the improvements shall automatically and immediately vest in Grantor, without notice to Grantee, and Grantee shall forfeit all right, title and interest in and to said lands.

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

(See Attachment 7, Page 1-12)

RECOMMEND APPROVAL


Item 8 Designation of High Density Aquaculture Lease Areas/Twenty-four Shellfish Aquaculture Leases

REQUEST: Approval to (1) use approximately 35.72 acres of sovereignty submerged lands, more or less, for shellfish aquaculture in a designated high-density lease area in Volusia County; and (2) issue 24 aquaculture leases to eligible participants in the local Aquaculture Demonstration and Training Project (Project Oak Hill).

COUNTY: Volusia

APPLICANTS: 24 lease applicants

LOCATION: Sections 4 and 9, Township 19 South, Range 35 East, in Mosquito Lagoon, Class III waters, near the City of Oak Hill, within the local jurisdiction of Volusia County.

CONSIDERATION: The lease fee for all of the proposed leases represents (1) a base annual rent of $15.58 per acre or fraction thereof; and (2) an annual surcharge, representing $5 per acre or fraction thereof for deposit in the Marine Resource Conservation Trust Fund. Pursuant to section 370.16(4)(b), F. S., each applicant's lease fee shall be adjusted on January 1, 2000, and every five years thereafter, based upon the five-year average change in the Consumer Price Index.

STAFF REMARKS: Because of the constitutional limitations on coastal net-fishing, the HarborBranch Oceanographic Institution, Inc. (HBOI) is training eligible displaced net fishers to

Board of Trustees

Agenda - May 13, 1997 Page Nine


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Item 8, cont.

perform shellfish cultivation activities. This program is funded by a contract with the Department of Labor and Employment Security via the Job Training Partnership Act. This includes payment of the $200 application processing fee for the individual and joint lease applicants, and payment of the first annual rental fees.

Department of Environmental Protection (DEP) staff took the lead in identifying a high density lease area that is suitable for commercial shellfish aquaculture activities. This site is recommended for approval by DEP staff since no adverse impacts are anticipated on seagrasses, existing shellfish beds, or other sensitive habitats. Conflicts with other water-related users are anticipated to be minimal. If approved, this site would be subdivided into individual parcels that would be leased by the DEP to the qualified graduates of the training program. The affected local governmental authority is in full support of project.

Section 253.68, F.S., declares that it shall be the policy of the state to foster aquaculture development when the aquaculture activity is consistent with state resource management goals, environmental protection, proprietary interests, and the state aquaculture plan.

Each participant's record was reviewed to determine violations associated with marine resources and public health. Four participants were found to have marine resource violations. DEP staff informed the Private Industry Council (PIC) about those violations. However, the PIC decided to allow these individuals to participate in the training program. The DEP agrees with the action of the PIC because considerable effort and expense has been put forth in training, and issuing leases to these individuals offers a mechanism to allow affected fishermen to work within the law. However, maintaining the lease will be contingent upon these individuals remaining free of resource violations. The lease instrument will contain specific provisions for automatically terminating the lease in the event that the lessee is adjudicated guilty on a future marine resource or public health violation.

A consideration of the status of any local government comprehensive plans was not made for this item. The DEP has determined that the proposed actions are not subject to the local government planning process.

(See Attachment 8, Pages 1-16)

RECOMMEND: APPROVAL TO ISSUE AQUACULTURE LEASES IN A HIGH-DENSITY LEASE AREA TO ELIGIBLE APPLICANTS SUBJECT TO APPLICABLE LAW AND RULE REQUIREMENTS, FINAL ACTION BY THE U. S. ARMY CORPS OF ENGINEERS, AND COMPLIANCE WITH THE SPECIAL LEASE CONDITIONS.