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AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

MAY 25, 1999


Item 1 Minutes

Submittal of the Minutes of the April 13, 1999 Cabinet Meeting.

RECOMMEND ACCEPTANCE


Item 2 Pier B Development Corp. Lease Modification

REQUEST: Consideration of an application for a modification of a 25-year sovereignty submerged lands lease to increase the preempted area from 109,756 square feet to 164,008 square feet for a proposed expansion of an existing commercial marina facility.

COUNTY: Monroe

Lease No. 440020075

ERP No. 44-0142062-002

APPLICANT: Pier B Development Corp., a Florida corporation

LOCATION: Section 22 , Township 68 South, Range 25 East, in Key West Harbor, Class III waters, within the local jurisdiction of the City of Key West

Aquatic Preserve: No

Manatee Area idle/slow speed/caution zone: No

Outstanding Florida Waters: Yes

CONSIDERATION: $20,527.20 as the initial lease fee computed at the base rate of $0.1156 per square foot for the 164,008 square-foot area, and including the initial 25 percent surcharge payment for the 54,252 square-foot expansion area. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable. The lease fee may be adjusted based on six percent of the annual rental value, pursuant to section 18-21.011, F.A.C.

STAFF REMARKS: The lessee is proposing to expand an existing commercial marina facility by increasing the preempted area from 109,756 square feet to 164,008 square feet. The lease contains two lease areas. Lease area 2A currently provides for berthing of cruise ships up to 875 feet long. Lease area 2B provides for mooring of recreational vessels, commercial charter boat vessels and a gambling ship ("Vegas West"). The proposed expansion will be to lease area 2A to provide for berthing of cruise ships up to 1,000 feet long along the western face of Pier B. Lease area 2B will not be modified.

Pier B was built prior to 1970 for use by the United States Navy. The pier and associated uplands were purchased from the federal government by a private developer (Pritam Singh, a/k/a Truman Annex Company) on March 11, 1987. The Board of Trustees initially approved a 25-year sovereignty submerged lands lease on January 22, 1987, for 17,507 square feet. On February 6, 1990, the Board of Trustees approved a 25-year sovereignty submerged lands lease modification (no. 440002595) for an existing commercial docking facility, including the submerged lands adjacent to Pier A, Pier B, and Pier Bravo, for a total area of 114,671 square feet.

On January 22, 1991, the Board of Trustees approved a 25-year sovereignty submerged lands lease modification for the same lease to expand the existing commercial marina to 328,512 square feet. That modification did not include changes to Pier B. The lease was also assigned to Truman Annex Retail Development Company. On March 30, 1994, Pier B Development Corp. purchased Pier B.

On March 31, 1994, the Board of Trustees approved a 25-year sovereignty submerged land lease modification, under a delegation of authority (DOA) for lease no. 440002595, splitting the lease area into four separate leases and reassigning the leases from Truman Annex Retail Development Corp. to: North Basin Development Corp. (lease no. 440002595), Pier Bravo Development Corp. (lease no. 440020085), South Basin Development Corp. (lease no. 440020095) and Pier B Development Corp. (lease no. 440020075).

The lessee applied to the Department of Environmental Protection (DEP) on June 18, 1998, for a permit/water quality certification and authorization to use sovereignty submerged lands to construct a pier extension of approximately 12,416 square feet, install four new breasting dolphins and one new mono-pile mooring dolphin. The project included a request to expand by 54,252 square feet the sovereignty submerged lands lease (no. 440020075) at Pier B. The original purpose of the project was to accommodate larger cruise ships (up to 1,000 feet long), eliminate the berthing loads on the existing structure and improve maneuverability of the cruise ships during docking and departures. During the permit process, turbidity created by the cruise ships became a concern for DEP. As a result of negotiations between DEP and the lessee, the lessee provided DEP with reasonable assurance that there will be a net improvement in water quality as a result of pier expansion by: (1) the lessee providing DEP documentation showing a reduction in turbidity generation in the order of 75 to 80 percent once the pier expansion is complete; (2) project revisions designed to deflect and breakup the prop wash energy from ships' propulsion systems; and (3) the lessee's agreement to follow best management practices during the maneuvering of ships docking and departing from the pier.

As mitigation and public interest for the permit application, the lessee agreed to: (1) monitor turbidity levels within the Key West Channel for each ship that docks and departs from the pier; and (2) contribute a monetary donation of $16,088 to the Florida Keys Environmental Trust Fund, for the purpose of restoring approximately 30,940 square feet (0.71 acre) of wetlands within the Key West Salt Ponds Habitat Restoration Area.

As a result of the above project modifications, the lessee agreed to pursue the project in two phases. Phase One would be the request to construct the pier expansion within the existing lease boundary, but not to allow for mooring of more or larger cruise ships. Phase Two would be a subsequent request to modify the sovereignty submerged lands lease to increase the lease area to accommodate the larger cruise ships. On April 8, 1999, the lessee withdrew the request to modify the sovereignty submerged lands lease until Phase Two. As a result, DEP issued an Environmental Resource Permit (no. 44-0142062-001) for the revised project on April 9, 1999.

The permit granted regulatory and proprietary authorization for construction of the pier extension. The proprietary authorization, a consent of use, was issued pursuant to a DOA because the pier extension did not increase the number of slips, substantially change the use of the facility from that currently authorized in the existing lease, or authorize berthing of vessels outside of the existing sovereignty submerged lands lease area.

On April 13, 1999, the lessee applied to DEP for Phase Two to modify the sovereignty submerged lands lease by increasing the preempted area from 109,756 square feet to 164,008 square feet, to provide for berthing of the larger cruise ships.

An April 14, 1999 inspection showed that the lessee is in compliance with the existing lease. All fees are current through February 6, 2000.

The existing lease authorizes fueling facilities and sewage pumpout facilities, but prohibits liveaboards. However, the waterbody is classified as an Outstanding Florida Water (OFW) and is therefore subject to section 62-312.430(2), F.A.C. That rule prohibits fuel storage or pumping facilities located on over­water structures within OFWs. There are currently no such over-water facilities within lease area 2A. For consistency with the DEP regulatory rule, staff recommends that the lease be modified to prohibit fueling facilities within lease area 2A. Should this staff recommendation be approved, the following special lease condition will be included in the lease:

Fueling facilities, including fuel storage or fuel pumping devices, shall be prohibited within lease area 2A.

Recommendations from DEP's Division of Marine Resources regarding manatee protection include requiring the lessee to: (1) comply with the standard manatee protection construction conditions for all in-water construction; and (2) install and maintain permanent manatee informational displays and awareness signs. These items will be addressed in the modified lease as special lease conditions.

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 is not in compliance. In accordance with the Compliance Agreement between DCA and the local government, an amendment has been adopted which brought the plan into compliance. The proposed action is consistent with the adopted plan as amended according to a letter received from the City of Key West.

(See Attachment 2, Pages 1-5)

RECOMMEND APPROVAL SUBJECT TO THE SPECIAL LEASE CONDITIONS AND PAYMENT OF $20,527.20


Item 3 SunTrust Bank, Southwest Florida (d/b/a Orange Harbor Mobile Home Park) Lease Modification/Survey Waiver

WITHDRAWN FROM THE JANUARY 26, 1999 AGENDA

REQUEST: Consideration of an application for (1) a modification of an existing five­year sovereignty submerged lands lease to increase the preempted area from 26,116 square feet to 209,212 square feet, more or less, for an existing commercial docking facility; and (2) a waiver of the survey requirement.

COUNTY: Lee

Lease No. 360009925

APPLICANT: SunTrust Bank, Southwest Florida, a Florida corporation, as Trustee

(d/b/a Orange Harbor Mobile Home Park)

LOCATION: Sections 34 and 35, Township 43 South, Range 25 East, in the Caloosahatchee River and the Orange River, Class III waters

Aquatic Preserve: No

Manatee Area idle/slow speed/caution zone: Yes

Outstanding Florida Waters: No

CONSIDERATION: $29,476.38 as the initial lease fee computed at the base rate of $0.1156 per square foot, and including the initial 25 percent surcharge payment for the additional area.

Sales tax will be assessed pursuant to section 212.031, F.S., if applicable. If the staff recommendation regarding the survey and legal description is approved, fees will be verified upon receipt of an acceptable survey.

STAFF REMARKS: The lessee is proposing to modify an existing 42­slip commercial docking facility by: (1) increasing the preempted area from 26,116 square feet to 209,212 square feet; and (2) increasing the number of wet slips from 42 to 75.

On July 18, 1978, the Board of Trustees approved a sovereignty submerged lands lease containing 2,841 square feet, more or less, to construct and operate a commercial docking facility for the upland mobile home park. The lessee rents mobile home lots to residents; therefore, the mobile home park is a revenue generating/income related activity pursuant to section 18-21.003(44), F.A.C. The rule also states that any activity (such as a docking facility) on sovereignty lands which serves as an accessory to an upland revenue generating activity is also considered to be a revenue generating/income related activity. Therefore, use of the submerged land requires a lease pursuant to section 18-21.005(1)(b)2, F.A.C. Although the lessee does not charge the mobile home residents a fee to use the docks adjacent to their mobile homes, the lot rent is higher for waterfront lots than non-waterfront lots.

Under a delegation of authority (DOA), the lease was renewed and modified by the former Department of Natural Resources (DNR) on August 29, 1988, to include in the lease unregistered grandfathered structures consisting of five finger piers and a marginal dock and boat ramp, increasing the lease area to 6,960 square feet. Although these structures are located near those authorized in the original lease, they were not included in the original survey or lease. There is no record of any site inspection being performed at this facility between 1978 and 1988.

From 1978 until 1994, individual Orange Harbor Mobile Home Park (Park) residents applied for and obtained regulatory exemptions from the Department of Environmental Regulation and proprietary consent of use letters from DNR and the Department of Environmental Protection (DEP) for "single-family" type docks. Although a lease would have been required pursuant to section 18-21.005(1)(b)2, F.A.C., another rule section, 18-21.005(1)(a), F.A.C., states that docks that are exempt from regulatory permitting are exempted from any requirement to make application for consent of use, and such consent is granted by the Board of Trustees. In the applications from Park residents, it was indicated that they were the riparian upland owners, and there were no clear indications of the rental nature of the mobile home park. Therefore, the applications were reviewed as if the structures were private, single-family docks associated with single-family lots, when in fact the uplands were owned by SunTrust Bank and constituted a revenue generating/income related activity pursuant to the rule. SunTrust Bank has indicated to DEP staff that responsibility for construction and maintenance of the individual docks was left to each waterfront resident.

In 1994, a Park resident submitted an application for a boat lift at the dock located adjacent to his mobile home. The application revealed that he was not the upland owner, that in fact SunTrust Bank owned the lots. DEP staff's subsequent research of property records revealed that the mobile home park was owned entirely by SunTrust Bank, without any individually-owned lots. DEP staff performed a complete shoreline inventory and contacted SunTrust Bank, informing them that the lease must be modified to include all of the structures on sovereignty submerged lands adjacent to the park. SunTrust Bank willingly complied with the requirement to modify the lease accordingly.

Under a DOA, the lease was modified by DEP on June 5, 1995, to: (1) eliminate from the lease a marginal dock and four finger piers (six wet slips preempting 3,276 square feet) that were deteriorating and no longer needed by the Park because of lack of user demand; and (2) include in the lease all of the other structures built by the individual lot renters. These structures consisted of 31 fishing piers and 28 docks. This modification increased the lease area to 23,171 square feet. Lease fees in arrears for these structures were paid by the lessee. Interest on the lease fees in arrears was not assessed because of the past authorizations issued.

The lease was again modified by DEP under a DOA on January 21, 1998, to convert five of the fishing piers to docks, increasing the lease area to 26,116 square feet. The modified lease now accurately reflects all existing structures.

The overall facility currently consists of a four-slip docking facility and boat ramp at one of the mobile home park's common areas, two fishing piers adjacent to two other common areas, and numerous individual docks and fishing piers, each adjacent to individual mobile home lots. All of these existing structures are within the existing lease. The lessee's proposed lease modification will: (1) convert 21 existing fishing piers to docks adjacent to individual mobile home lots by allowing mooring at the structures; (2) authorize some of the existing docks to be reconfigured or expanded; (3) authorize construction of new docks; and (4) include the area of sovereignty submerged lands between each structure consistent with sections 18-21.003(38) and 18-21.004(1)(c), F.A.C. The modified lease will provide a total of 75 wet slips for exclusive use of mobile home park residents. The boat ramp and remaining fishing piers will also remain for the exclusive use of mobile home park residents.

As a commercial operation, the lessee passes on the annual lease fee to the waterfront lot renters. Most of the mobile home park residents are retirees, many on fixed incomes. There is a continual turnover of park residents, and new waterfront lot renters often desire to change the configuration of the dock or fishing pier adjacent to their respective lots. They also want to minimize the annual lease fee by designing each dock's lease area to be as small as possible. This has resulted in continuous lease modifications to change the preempted area to accommodate new or relocated boat slips or larger vessels at various individual structures. Therefore, future requests for additional lease modifications were anticipated to occur frequently throughout the term of the modified lease.

Minimizing the lease area raises three concerns. First, the previous frequent lease modifications required significant staff time; future lease modifications would also require Board of Trustees' reviews. Second, it has not adequately included all of the preempted area in the lease as required by sections 18-21.003(38) and 18-21.004(1)(c), F.A.C. Because many of the docks are located close together, the area between the docks that is currently excluded from the lease is also realistically preempted from traditional public uses. However, the Board of Trustees and DEP typically require such areas to be included in sovereignty submerged lands leases. Therefore, continuing to allow these areas to be excluded from the lease raises a third concern: inconsistency with other Board of Trustees and DEP authorizations. To address these concerns, the applicant has agreed to modify the lease to include the areas between those docks whose proximity to one another effectively preempts public use. Staff and the lessee estimate that this will add approximately 168,290 square feet to the lease area, resulting in an additional annual lease fee of $19,454.32. Because of this lease fee increase, the Park residents do not agree with including the additional preempted area in the lease.

Staff has considered whether a net environmental benefit would result from replacing the existing docks, adjacent to individual mobile homes, with one or more multi-slip docking facilities. However, this alternative would concentrate pollutants, raise potential navigation concerns, and result in an extensive and costly permitting process for SunTrust Bank that would ultimately be passed onto the Park's waterfront residents. Therefore, staff does not recommend this alternative.

Section 18-21.008(1)(a)4, F.A.C., requires a survey and legal description to be submitted with all lease applications. Pursuant to Board of Trustees' action on May 14, 1991, the Board of Trustees authorized a waiver of the survey requirement in the following situations: (1) when unregistered grandfathered structures are brought under lease (regardless of total square footage of sovereignty submerged lands preempted); and (2) when existing or proposed facilities are brought under lease that preempt less than 3,000 square feet.

A survey was required for the original lease and the 1988 lease modification because those actions occurred prior to creation of the survey waiver. When the remaining unauthorized unregistered grandfathered structures were brought under lease in 1995, a survey was not required because staff interpreted the survey waiver to apply to unauthorized unregistered grandfathered structures. Unauthorized unregistered grandfathered structures are those where a lease is the appropriate authorization for the use of sovereignty submerged lands, and the riparian upland owner did not apply for the lease by April 1, 1991.

The currently proposed lease modification includes construction of new structures (docks and boat lifts). These structures do not qualify for a waiver of the survey requirement because: (1) they are new structures (not unregistered grandfathered); and (2) while they are less than 3,000 square feet, the overall leased facility exceeds 3,000 square feet. However, the lessee has requested a waiver of the survey requirement because of the anticipated expense of the survey. The expense associated with surveys was considered by the Board of Trustees when the survey waiver was approved in 1991. To avoid the expense and delay associated with preparation of a survey for the currently proposed lease modification, DEP required the applicant to submit a sketch and description consistent with the survey waiver requirements. A special approval condition has been included requiring submission of an acceptable survey and legal description.

An October 19, 1998, inspection showed that the applicant is in compliance with the existing lease. All fees are current through July 1999.

The DEP issued a letter to the lessee, dated October 20, 1998, stating that the proposed additional docks and boat lifts were exempt from regulatory permitting requirements.

The modified lease request was not required to be noticed because of an exemption for lease modifications pursuant to section 253.115(5)(i), F.S. However, DEP received 23 letters from Park residents expressing the following concerns: (1) the lease modification process entailed significant delays preventing them from building/modifying their docks; (2) because they own the individual structures adjacent to their mobile homes, the structures are not commercial and therefore should not be subject to the lease requirement; and (3) because of item (2), they should not have to pay lease fees. DEP sent each of these 23 residents a letter responding to these concerns. DEP also provided a follow-up letter including a preliminary draft agenda item for their review. That agenda item was also provided to Representative Bruce Kyle's office and the Park management to be posted in the Park for review by all Park residents.

On March 18, 1999, DEP held a three-hour public meeting with the lessee, an aide to Representative Kyle, and over 200 park residents. The residents asked numerous questions about authorizations to use sovereignty submerged land. Two options for the lessee were identified at the meeting: (1) pursue the lease modification discussed in this agenda item; or (2) await the findings of a DEP sufficient title interest working group to determine whether the individual structures could be authorized by a consent of use instead of a lease. Option (1) would allow the park residents to modify their structures in the near future, after the modified lease is issued. Option (2) would prohibit modification of the leased structures until the sufficient title interest working group findings are completed, which could entail significant time delays because of potential rulemaking. By the end of the meeting, it appeared that the lessee and the residents looked favorably on option (1), and many of the residents stated that they had a much better understanding of the costs and benefits of modifying the submerged land lease to include additional preempted area. Subsequently, DEP requested and received the lessee's written intent to pursue option (1).

Recommendations from the Division of Marine Resources regarding manatee protection include requiring the lessee to: (1) comply with the standard manatee protection construction conditions for all in-water construction; (2) install and maintain manatee informational displays; and (3) restrict use of the boat ramp to mobile home park residents. Items (1) and (3) will be addressed in the lease as special lease conditions. Item (2) is addressed by a special lease condition in the existing lease requiring the lessee to maintain the existing manatee informational displays throughout the term of the modified lease and any subsequent renewals.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S.; however, the Department of Community Affairs (DCA) determined that the plan was not in compliance. In accordance with the compliance agreement between the DCA and the local government, an amendment has been adopted which brought the plan into compliance. The proposed action is consistent with the adopted plan as amended according to a letter received from Lee County.

(See Attachment 3, Pages 1-8)

RECOMMEND (1) APPROVAL SUBJECT TO THE SPECIAL APPROVAL CONDITION, THE SPECIAL LEASE CONDITIONS, AND PAYMENT OF $29,476.38; AND (2) DENIAL OF THE SURVEY WAIVER


Item 4 City of Key West/Houseboat Row Interim Status Report

REQUEST: Consideration of an interim report on the status of the City of Key West's plan to remove houseboats from Houseboat Row.

APPLICANT: City of Key West

COUNTY: Monroe

STAFF REMARKS: On July 28, 1998, the Board of Trustees considered a petition by the City of Key West (City) to stay ejectment of the structures on Houseboat Row (HBR). The Board of Trustees had prevailed in the case of the City of Key West and Board of Trustees of the Internal Improvement Trust Fund v. Skifano, et. al. (Case No. 94-409-CA-12), and had been granted a Writ of Possession entitling the Board of Trustees to eject 26 houseboats and other floating structures that were occupying an area of submerged land in Key West known as HBR. The City petitioned the Board of Trustees to stay the ejectment action and instead to lease the submerged land to the City so that HBR could remain. The Department of Environmental Protection (DEP) opposed the City's petition and recommended that the residents of HBR be given six months to relocate and that a task force be formed to address the larger issues associated with unmanaged anchoring in Key West. The Board of Trustees ultimately agreed to defer action for three months in order to give the City an opportunity to prepare a proposal and a reasonable time schedule for dealing with HBR and with the other liveaboards located in and around Key West. During October 1998, Hurricane Georges hit Key West and only 16 of the 26 houseboats survived the storm.

The matter came back to the Board of Trustees on December 8, 1998, and the Board of Trustees denied the request of the City to convey the sovereign lands underlying HBR to the City so that HBR could remain on the seawall along Roosevelt Boulevard. The Board of Trustees also deferred execution of the Final Judgment of Ejectment to allow the City 120 days (April 7, 1999) to submit "a more detailed mooring and anchorage plan and an acceptable Houseboat Row relocation plan."

The City Engineering Services Division developed its "Garrison Bight Expansion Feasibility Study" dated February 28, 1999, for the relocation of HBR to Garrison Bight. The City Commission considered the study, which presented four options, and directed its staff to further develop option 2, which called for an expenditure of approximately $450,000 to create 28 additional permanent live-aboard slips in the City-owned Garrison Bight Marina, together with associated utility services.

A draft of City staff's "Garrison Bight Expansion Conceptual Plan," dated May 6, 1999, is attached, and will be presented to the Key West City Commission for consideration on June 1, 1999. Phase one calls for early relocation of HBR to either Dolphin or Sailfish Pier, in the outer basin of Garrison Bight (many of the HBR houseboats cannot access the inner basin because of bridge height restrictions), and phase two calls for expansion of Wahoo Pier in the inner basin in order to replace those slips taken by HBR. Authorization for the Garrison Bight expansion from the Board of Trustees is not required because the submerged bottom of Garrison Bight is City-owned. The City plans to complete the physical relocation of HBR no later than 90 days from City Commission approval on June 1, 1999.

The City has also retained a consultant to pursue the necessary inner basin regulatory permits from the DEP, and has begun dock design for permitting purposes. Further, the City has also been pursuing activation of the seaplane basin mooring field and related issues such as "no discharge" zones. It appears the City is moving steadily toward relocation of HBR, and staff recommends no action at this time by the Board of Trustees.

(See Attachment 4, Pages 1-43)

RECOMMEND (1) ACCEPTANCE OF THIS INTERIM REPORT; AND (2) DIRECTION TO STAFF TO SUBMIT ITS NEXT STATUS REPORT IN 90 DAYS.


Item 5 Calzadilla/Adams Option Agreements/Florida Keys Ecosystem CARL Project

REQUEST:  Consideration of two option agreements to acquire 10.97 acres within the Florida Keys Ecosystem CARL project from Anthony A. Calzadilla and Charles M. Adams.

COUNTY:  Monroe

LOCATION:  Section 20, Township 66 South, Range 29 East

CONSIDERATION:  $27,500

APPRAISED BY

REVIEW Hrabko APPROVED PURCHASE OPTION

NO. PARCEL ACRES (05/18/98) VALUE PRICE DATE

909004 Calzadilla/ 8.74 $21,900 $21,900 $21,900 150 days

3097, 3098, after BOT

3105 approval

909005 Adams/3103 2.23 $ 5,600 $ 5,600 $ 5,600

10.97 $27,500 $27,500

STAFF REMARKS: The Florida Keys Ecosystem CARL project is ranked number 4 on the CARL Priority Project List approved by the Board of Trustees on February 10, 1998, and is eligible for negotiation under the Division of State Lands' (DSL) Land Acquisition Workplan. The project contains 7,033 acres, of which 1,217.69 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves these agreements, 5,804.34 acres or 83 percent of the project will remain to be acquired.

On March 12, 1996, the Board of Trustees exercised its authority under section 259.041(1), F.S., to waive the normal appraisal procedures and to substitute other reasonably prudent procedures. This enabled the DSL to utilize approved appraised values that were based on land use regulations in effect as of January 1, 1996, in Monroe County.

All mortgages and liens will be satisfied at the time of closing. In the event the commitments for title insurance, to be obtained prior to closing, reveal any other 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.

Title insurance policies, surveys, environmental site evaluations and, if necessary, environmental site assessments will be provided by the purchaser prior to closing.

The unique pine rocklands and hardwood hammocks of the Florida Keys, forests of West Indian plants that shelter several extremely rare animals, are being lost to the rapid development of these islands. The Florida Keys Ecosystem CARL project will protect all the significant unprotected hardwood hammocks left in the Keys and many rare plants and animals, including the Lower Keys marsh rabbit and the Key deer. It will also help protect the Outstanding Florida Waters of the Keys, the recreational and commercial fisheries, and the reefs around the islands, and will give residents and visitors more areas in which to enjoy the natural beauty of the Keys.

These properties will be managed by the Florida Game and Fresh Water Fish Commission for the conservation and preservation of the natural resources of the properties.

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 5, Pages 1-21)

RECOMMEND APPROVAL


Item 6 Budzilas/Morejon/Waldo Purchase Agreements/Save Our Everglades (Golden Gate Estates) CARL Project

REQUEST:  Consideration of three purchase agreements to acquire 60 acres within the Save Our Everglades (Golden Gate Estates South) CARL project from Maria Budzilas; Raimundo Morejon and Lucia Morejon; and Christina M. Waldo and Michael C. Waldo.

COUNTY:  Collier

LOCATION:  Sections 33 and 34, Township 50 South, Range 28 East

CONSIDERATION:  $168,000

APPRAISED BY

REVIEW PARCEL/ Hettema APPROVED PURCHASE CLOSING

NO. OWNER ACRES (01/12/99) VALUE PRICE DATE

909001 Budzilas 20 $ 56,000 $ 56,000 $ 56,000 150 days after

909002 Morejon 20 $ 56,000 $ 56,000 $ 56,000 BOT approval

909003 Waldo 20 $ 56,000 $ 56,000 $ 56,000

60 $168,000 $168,000

STAFF REMARKS: The Save Our Everglades CARL project is ranked number 4 on the CARL Mega-Multiparcel Project List approved by the Board of Trustees on February 10, 1998, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. The project contains 222,691 acres, of which 199,107.25 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves these agreements, 23,523.75 acres or 11 percent of the project will remain to be acquired.

These properties are being acquired utilizing Federal acquisition procedures as a condition of the award of a $25 million Farm Bill grant from the U. S. Department of Interior to the Department of Environmental Protection for the purchase of lands within the Save Our Everglades (Golden Gate Estates South) CARL project.

All mortgages and liens will be satisfied at the time of closing.  In the event the commitments for title insurance, to be obtained prior to closing, reveal any other 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.

Title insurance policies, surveys, environmental site evaluations and, if necessary, environmental site assessments will be provided by the purchaser prior to closing.

West of the huge sawgrass marsh of the central Everglades spreads a landscape of cypress swamps, marshes, slash-pine flatwoods, and tropical hammocks, through which water slowly flows to the mangrove swamps of the Ten Thousand Islands. The Save Our Everglades CARL project will conserve three large pieces of this landscape, connecting and extending existing conservation lands, helping to save the last of the Florida panthers and a host of other rare animals and tropical plants, preserving the flow of water to the rich estuaries of the Gulf coast, and allowing the public to enjoy this unique landscape for years to come.

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

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 6, Pages 1-12)

RECOMMEND APPROVAL

Board of Trustees

Agenda - May 25, 1999 Page Eleven


Item 7 J. Paul Fitzgerald, et al. Option Agreement/Sandy Point Buffer Greenways and Trails Project

REQUEST: Consideration of an option agreement to acquire 11 acres within the Sandy Point Buffer project under the Preservation 2000 Florida Greenways and Trails program from J. Paul Fitzgerald, et al.

COUNTY:  Santa Rosa

APPLICANT: Office of Greenways and Trails

LOCATION:  Section 36, Township 01 North, Range 28 West

CONSIDERATION:  $4,125

APPRAISED BY

REVIEW Ketcham APPROVED PURCHASE OPTION

NO. PARCEL ACRES (12/17/97) VALUE PRICE DATE

909006 Fitzgerald 11 $5,100 $4,125* $4,125 150 days

after BOT

* Revised February 22, 1999, due to decreased acreage. approval

STAFF REMARKS: The Sandy Point Buffer project has been identified on the Office of Greenways and Trails approved acquisition list. This agreement was negotiated by the Division of State Lands on behalf of the Office of Greenways and Trails under the Preservation 2000 Florida Greenways and Trails program. The project contains 98.2 acres, of which these are the first to be acquired. After the Board of Trustees approves this agreement, 87.2 acres or 89 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 title insurance policy, survey, environmental site evaluation and, if necessary, an environmental site assessment will be provided by the purchaser prior to closing.

This parcel drains a large upland area to the west of the Yellow River Marsh Aquatic Preserve. The area currently consists of residential land and a large cattle farm. Cattle farms can cause problems for water quality unless properly filtered through sufficient uplands or wetlands. The drainage system that eventually exits into the aquatic preserve runs through the middle of the cattle farm. All of the residential homes that are in this sub-drainage basin are on septic tanks, and due to the recent installation of the Garcon Point bridge, new development is increasing rapidly. The portion of the aquatic preserve that abuts the Fitzgerald property is currently pristine, with extensive grassbeds consisting of Vallisneria, American and Ruppia maritima. Turbidity and excessive algae growth can smother grass beds and prevent efficient photosynthesis. The Fitzgerald property will provide a valuable filtering system via wetlands to assure that this ecosystem remains intact. Also, the wetland itself is an important nursery area for aquatic life.

This property will be managed by the Division of Marine Resources as a buffer to the Yellow River Marsh Aquatic Preserve.

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 1-30)

RECOMMEND APPROVAL

Board of Trustees

Agenda - May 25, 1999 Page Twelve


Item 8 North Key Largo Hammocks CARL Project/Delegation/Confidentiality Requirement Waiver/Survey Waiver

REQUEST: Consideration of a request to (1) delegate authority to and authorize the Director of the Division of State Lands, Department of Environmental Protection, or his designee, to extend bona fide offers and approve any contract for the sale and purchase of land within the North Key Largo Hammocks CARL project pursuant to section 259.041(1), F.S., at the approved value; (2) waive the confidentiality requirement contained in section 259.041(7)(e), F.S.; and (3) waive the surveys.

COUNTY: Monroe

LOCATION: Section 29, Township 60 South, Range 40 East

STAFF REMARKS: The North Key Largo Hammocks CARL project is ranked number 1 on the CARL Substantially Complete List approved by the Board of Trustees on February 10, 1998, and is eligible for negotiation under the Division of State Lands' (DSL) Land Acquisition Workplan. This project contains 3,605 acres, of which 3,310 acres have been acquired or are under agreement to be acquired by the Board of Trustees.

The tropical rockland hammock of the North Key Largo CARL project is a highly endangered, rapidly disappearing natural community that supports numerous rare and endangered plant and animal species with limited distributions. The hammocks of North Key Largo are the best and largest examples of tropical hammock remaining in the United States. This project has over ten miles of shoreline that directly influence the adjacent waters of John Pennekamp Coral Reef State Park and the Florida Keys National Marine Sanctuary. Preservation of the project area in its natural condition will significantly aid in the maintenance of the high water quality necessary to support and manage the living reefs of the park, and it will conserve an area where the public can enjoy the original landscape of the subtropical Florida Keys.

This project was originally known as New Mahogany Hammock on the first CARL list in 1980. The project was significantly expanded in 1986. By 1992, all lots owned by willing sellers had been acquired. On September 15, 1992, the Board of Trustees directed the Department of Natural Resources (DNR) to exercise the power of eminent domain to acquire all remaining vacant parcels within the project. Since 1992, the DNR, now the Department of Environmental Protection (DEP), and the Attorney General's Office have been pursuing eminent domain and have acquired approximately 410 acres.

On December 5, 1997, the Land Acquisition and Management Advisory Council approved a request by the Division of Recreation and Parks (DRP) to add vacant lots, consisting of 24 acres, within Gulfstream Shores and Knowlson Colony Subdivisions to the project. These two subdivisions will form a critical link connecting existing state-owned lands. The DRP, the managing agency, is supportive of acquiring these essential parcels by the use of eminent domain, if necessary.

DSL staff is preparing to initiate negotiations with owners of 109 small, unimproved lots. While it is the desire of the DEP to acquire all remaining vacant properties through voluntary negotiations, staff is seeking authority to make bona fide offers in the event condemnation is required to complete the acquisition. One of the prerequisites to the exercise of the power of eminent domain is the requirement that at least two bona fide offers to purchase land through negotiations must have been made and, notwithstanding those offers, an impasse between the state and the landowner has been reached. It has been judicially determined that offers made through the use of option agreements "subject to approval" by the Board of Trustees are not considered bona fide offers. Consequently, in order to satisfy the bona fide offer requirement, staff is recommending that the Board of Trustees substitute the alternative procedure of Board of Trustees delegating authority to the Director of the Division of State Lands (Director) to make bona fide offers to owners of small lots in the Gulfstream Shores and Knowlson Colony Subdivisions and execute purchase agreements, including the authority to negotiate and approve counteroffers, provided that such offers and counteroffers do not exceed the approved value. Pursuant to section 259.041(1), F.S., the Board of Trustees may substitute other reasonably prudent procedures provided the public's interest is reasonably protected. By delegating authority to the Director, and limiting the offers in the proposed manner, DEP staff believes the public's interest is reasonably protected.

In an effort to encourage the owners of these parcels to sell voluntarily, staff would like to be able to share information from the appraisals with them. To do this requires the Board of Trustees to waive the confidentiality provision of section 259.041(7)(e), F.S. which can be done as provided in section 259.041(1), F.S.

Staff requests that the Board of Trustees, pursuant to its authority under section 259.041(1), F.S., waive any portions of chapter 259, F.S., and any applicable rule or policy that may require a survey on these parcels. It is the opinion of the Bureau of Survey and Mapping that available boundary information is sufficient to reasonably protect the public's interest.

While these parcels are being recommended for a waiver of survey at this time, should the title commitments reveal substantive surveying or surveying related issues which impact the parcels, certified surveys will be provided by the purchaser prior to closing. In the event full surveys are waived, a professional land surveyor will inspect the properties for any visible evidence of improvements or potential boundary issues. In cooperation with the managing agency, the DSL will acquire any special purpose survey work necessary for the effective management of these properties.

These properties will be managed by the Division of Recreation and Parks as part of the Key Largo Hammocks State Botanical site.

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 8, Pages 1-2)

RECOMMEND APPROVAL


Item 9 1999 CARL Interim Report/1999 CARL Interim Priority List

REQUEST: Consideration of (1) the 1999 Conservation and Recreation Lands Interim Report of the Land Acquisition and Management Advisory Council; and (2) the 1999 CARL Interim Priority List.

STAFF REMARKS: The 1999 Conservation and Recreation Lands (CARL) Interim Report was prepared pursuant to chapter 259, F.S., and rule 18-8, F.A.C. During the Land Acquisition and Management Advisory Council (LAMAC) meetings of February 11, March 26, and May 6, 1999, the Council added two projects, removed two projects and approved project design amendments to seven projects on the CARL Priority List. The Interim Report includes the 1999 Interim CARL Priority List of 1999 CARL projects approved by the LAMAC and proposed for adoption by the Board of Trustees. In addition, the Report includes the Project Assessments and Projects Designs of the two new projects which were added to the Priority List: Tequesta Circle (Dade County) and Fisheating Creek (Glades County). Tequesta Circle is Board of Trustees number 1 on the Bargain/Shared List, and Fisheating Creek is number 1 on the Less-than-Fee List. Maps and descriptions of seven other projects whose boundaries have been modified are included in the Interim Report.

The seven projects with boundary amendments are: Florida Keys Ecosystem (Monroe County), Charlotte Harbor Flatwoods (Charlotte and Lee Counties), Middle Chipola River (Calhoun and Jackson Counties), Caloosahatchee Ecoscape (Glades and Hendry Counties), Apalachicola River (Gadsden, Liberty, Calhoun and Jackson Counties), Wacissa/Aucilla River (Taylor and Jefferson Counties), and Rotenberger/Seminole Indian Lands (Broward and Palm Beach Counties).

Two projects included on the 1999 CARL Priority List, approved by the Board of Trustees on February 9, 1999, are not included on the proposed 1999 CARL Interim Priority List. Mallory Swamp, (Lafayette County) number 6 on the Less-than-Fee List, was removed from the list because the Suwannee River Water Management District acquired the project. The Everglades Agricultural Restoration Area, (Palm Beach County) number 5 on the Bargain/Shared List, was removed from the list because the federal government and South Florida Water Management District acquired the project through the Everglades Restoration Act.

The 1999 CARL Interim Priority List is consistent with section 187.201(10), F.S., the Natural Systems and Recreation Lands section the State Comprehensive Plan.

The Interim Report will be submitted separately.

(See Attachment 9, Pages 1-3)

RECOMMEND ACCEPTANCE OF THE 1999 CARL INTERIM REPORT AND APPROVAL OF THE 1999 CARL INTERIM PRIORITY LIST


Item 10 Elizabeth Wade Easement Modification

REQUEST: Consideration of a request to modify a perpetual non-exclusive right-of-way easement to Elizabeth Wade, containing 1.72 acres, more or less.

COUNTY: Clay

Easement No. 30168

APPLICANT: Elizabeth Wade

LOCATION: Section 24, Township 04 South, Range 23 East; and Section 19, Township 04 South, Range 24 East

CONSIDERATION: N/A

STAFF REMARKS: On February 9, 1999, the Board of Trustees approved a perpetual non-exclusive easement to Elizabeth Wade for access across a portion of Jennings State Forest. Ms. Wade owns a 40-acre inholding that is surrounded by state forest land. Pursuant to section 704.01(2), F.S., an owner of land cannot be denied access to his/her property and may lawfully use and maintain an easement by means of the nearest practical route. Although there has been no judicial determination that the applicant is entitled to a statutory way of necessity, staff has reviewed the matter and it appears that the applicant's property meets the criteria for a statutory way of necessity.

Prior to Board of Trustees' approval, Ms. Wade was forwarded a copy of the proposed easement for her review, and a copy was included in the agenda item at the time of Board of Trustees' approval. Following Board of Trustees' approval, the easement was forwarded to Ms. Wade for execution. Ms. Wade's attorney subsequently notified staff that the state's requirements were not justifiable under the circumstances and requested modification of the easement agreement to exclude those conditions that will: (1) create an unreasonable right or the ability to unilaterally terminate the easement agreement; and (2) lessen her ability to market her property or obtain a mortgage or title insurance.

The following changes to the easement have been requested:

Paragraph 6. ASSIGNMENT: Delete entire paragraph.

Paragraph 8. BINDING EFFECT AND INUREMENT: Delete, "but nothing contained in this paragraph shall be construed as a consent by GRANTOR to any assignment of this easement or any interest therein by GRANTEE."

Paragraph 9. NON-DISCRIMINATION: Delete, "or upon lands adjacent to and used as an adjunct of this easement."

Paragraph 10. INDEMNITY: Insert in last sentence, "GRANTEE'S use of this easement".

Paragraph 12. VENUE PRIVILEGES: Change Leon County to Clay County.

Paragraph 19. CONVICTION OF FELONY: Delete entire paragraph.

Paragraph 20. DEFAULT AND FORFEITURE: Delete entire paragraph.

Paragraph 21. RIGHT OF AUDIT: Delete entire paragraph.

Paragraph 22. PAYMENT OF TAXES AND ASSESSMENTS: Add to last sentence, "and which are directly occasioned by GRANTEE."

Paragraph 23. AUTOMATIC REVERSION: Delete entire paragraph.

Paragraph 24. RECORDING OF EASEMENT: Change ten days to thirty days.

Staff has reviewed the requested changes and concurs that they are acceptable for Ms. Wade's easement.

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 request is not subject to the local government planning process.

(See Attachment 10, Pages 1-31)

RECOMMEND APPROVAL


Item 11 Walton County Settlement Agreement

REQUEST: Consideration of an agreement to settle those certain cases styled, Florida Wildlife Federation, Inc., Anne Schultz, Walter Schultz, Susan Paladini, Bruce Paladini and Ronald Vaughan v. the Board of Trustees of the Internal Improvement Trust Fund, and Walton County (Cases No.: 98-4719, First District Court of Appeal; 98-3055, Second Judicial Circuit Court in and for Leon County); and Florida Wildlife Federation, Inc., and Florida Audubon Society, Inc., v. Board of Trustees of the Internal Improvement Trust Fund and Walton County (Case No. 97-4203, Division of Administrative Hearings).

COUNTY: Walton

Deed No. 30364

APPLICANT: Department of Environmental Protection, Division of State Lands (DEP)

LOCATION: Section 28, Township 02 South, Range 20 West; and Sections 29, 30, and 31,

Township 02 South, Range 19 West

CONSIDERATION: $27,810, plus an amount equal to the interest that would have accrued had the purchase price been deposited in the CARL Trust Fund.

STAFF REMARKS: On August 12, 1997, the Board of Trustees determined that 420 acres, more or less, of state-owned land in Walton County (County) no longer needed to be preserved in furtherance of the intent of the Florida Preservation 2000 Act. The County proposed to develop the 420 acres for its South Walton New Town Center. The Board of Trustees also established a Working Group consisting of representatives from the Governor's office, each Cabinet office, the Walton County Beaches-to-Bay Connection, county commission, and environmental groups.

In August 1997, Florida Wildlife Federation, Inc., and Florida Audubon Society, Inc., filed an administrative challenge before the Division of Administrative Hearings to the Board of Trustees' determination that the 420-acre parcel no longer needed to be preserved in furtherance of the intent of the Preservation 2000 Act. While the administrative challenge was pending, the Working Group continued to meet. On November 19, 1997, the Working Group completed its recommendations, which were put on hold pending the outcome of the administrative challenge.

Prior to the scheduled hearing date of the administrative challenge, the Florida Legislature enacted chapter 98-366, Laws of Florida, section 15 of which directed the Board of Trustees to convey to the County the 420-acre New Town Center lands. The statute established the price the County was to pay for the 420 acres as a price not to exceed the price paid by the Board of Trustees for the lands, plus any applicable interest. Thereafter, the parties moved to abate the pending administrative proceeding. Florida Wildlife Federation, Inc., then filed a constitutional challenge to section 15, chapter 98-366, Laws of Florida, in the Circuit Court of the Second Judicial Circuit. The County intervened in the constitutional challenge as an interested party. The Circuit Court sustained the constitutionality of section 15, chapter 98-366, Laws of Florida, whereupon Florida Wildlife Federation, Inc., filed the pending appeal.

Florida Wildlife Federation, Inc., and the individual plaintiffs have now negotiated a compromise agreement with the County which they have reduced to writing and are requesting that the Board of Trustees adopt. The agreement provides for the transfer of 114 acres of the originally designated 420 acres to the County for development and establishment of the South Walton New Town Center for educational, governmental, and civic uses. The agreement also provides for a separate 140-acre parcel acquired as part of the Point Washington acquisition, but lying outside of the present CARL boundary, to remain under management as part of the Point Washington State Forest, and urges the Board of Trustees to complete the proposed acquisition of the Point Washington State Forest. Approval of the Settlement Agreement will require the Board of Trustees to transfer title of the 114-acre parcel to the County for development of the South Walton New Town Center; to retain the remaining 306 acres of the original 420-acre parcel; and to retain the additional 140-acre parcel, to be managed as part of the Point Washington State Forest by the Department of Agricultural and Consumer Services, Division of Forestry. If approved by the Board of Trustees, the Settlement Agreement will supercede the recommendations of the Working Group.

The purchase price to be paid by the County equals the state's cost to acquire the 114 acres, plus an amount equal to the interest the state would have received had it deposited it in the CARL fund for the period of time extending from the original date of purchase through May 25, 1999, the date of Board of Trustees' approval of the Settlement Agreement.

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

(See Attachment 11, Pages 1-46)

RECOMMEND APPROVAL


Item 12 Trustees of the Internal Improvement Trust Fund v. Lykes Brothers, Inc. Settlement Agreement

REQUEST: Consideration of a request to approve a Settlement Agreement in the case of Trustees of the Internal Improvement Trust Fund v. Lykes Brothers, Inc.

COUNTY: Glades

APPLICANT: Department of Legal Affairs

Attachments will be submitted separately.

RECOMMEND APPROVAL