Submittal of the Minutes of the October 12, 1999 Cabinet Meeting.

COUNTY: Martin

LOCATION: Section 33, Township 38 South, Range 41 East; Sections 01 through 04 and 08 through 12, Township 39 South, Range 41 East; and a portion of the Gomez Grant

CONSIDERATION: $11,510,996 (The Board of Trustees’ 50 percent share of the total purchase price of $23,021,993, to be adjusted upward or downward at the rate of $13,500 per acre for Primary Tracts X1-100-025, X1-100-026, and X1-100-027, and $4,850 per acre for Secondary Tract X1-100-025, in accordance with the final surveyed acreage. Tract X1-100-028 is being conveyed by the seller at no cost and will provide access to Tract X1-100-025.)

STAFF REMARKS: The Atlantic Ridge Ecosystem CARL project is ranked number 8 on the CARL Bargain/Shared List approved by the Board of Trustees on February 9, 1999, and qualifies for purchase under the Division of State Lands’ Land Acquisition Workplan. The project contains 12,514 acres, of which 3,748.34 acres have been acquired. After the Board of Trustees approves this agreement, 6,229.57 acres or 50 percent of this project will remain to be acquired. This 2,539.09 acre tract is the remainder of the Westerra Seawind ownership, of which the Board of Trustees previously acquired a 50 percent undivided interest in 2,577.20 acres. The owners originally would not sell this remainder because they intended to develop it.

On October 21, 1997, the Board of Trustees authorized staff to enter into an acquisition agreement with the South Florida Water Management District (District) to acquire the Atlantic Ridge Ecosystem CARL project in accordance with section 259.041(16), F.S., utilizing the procedures set out in section 373.139, F.S.

Pursuant to the terms of the acquisition agreement, the District contracted to purchase Westerra Seawind’s ownership at 96 percent of the approved value. The property being acquired is subject to a certain October 27, 1998 Hobe St. Lucie Conservancy District Permit (Permit). The Permit establishes the conditions under which water from the lands enters and is routed through the Hobe St. Lucie Conservancy District canal right of way. Prior to closing, the seller shall address and resolve the objections and concerns of the District with respect to the Permit by causing the Permit to be modified in form and substance satisfactory to the District. In the event the Permit is not modified to the District’s satisfaction prior to closing, the District may terminate the agreement. The District shall 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. Title to the property acquired will vest jointly in the Board of Trustees and District, with each owning an undivided 50 percent fee simple interest. The Board of Trustees' purchase price will be 50 percent of the contract price negotiated by the District plus 50 percent of the costs incurred in the purchase of the property.

As provided for in the acquisition agreement, on October 14, 1999, the Governing Board of the District adopted Resolution No. 99-103, requesting reimbursement of the Board of Trustees’ share of the purchase price for the Westerra Seawind parcel, reimbursement of 50 percent of its pre-acquisition costs and reimbursement of 50 percent of its closing costs (recording, title insurance policy and survey costs). Pursuant to the acquisition agreement, the pre-acquisition and closing costs will be reimbursed from CARL incidental expense funds. The District’s resolution contains all of the assurances required by the acquisition agreement.

Cities spreading north from Miami and Fort Lauderdale have all but eliminated natural areas, such as coastal scrub, near the southeast Florida coast. The Atlantic Ridge Ecosystem CARL project will protect one of the largest patches of natural land left on this coast - conserving an important scrub, pine flatwoods, marshes, and the floodplain of the South Fork of the St. Lucie River, protecting the quality of water in the St. Lucie and Loxahatchee River basins, and allowing the public to enjoy the original landscape of this fast-growing area.

The parcel will be managed by the Division of Recreation and Parks as a unit of the state park system.

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 2, Pages 1-47)

COUNTY: Lee

LOCATION: Sections 24 through 26, 35 and 36, Township 47 South, Range 26 East

STAFF REMARKS: The Corkscrew Regional Ecosystem Watershed (CREW) CARL project is ranked number 10 on the CARL Bargain\Shared Project List approved by the Board of Trustees on February 9, 1999, and qualifies for purchase under the Division of State Lands’ Land Acquisition Workplan. The project contains 59,008 acres, of which 20,055 acres have been acquired by the South Florida Water Management District (District) and Lee County, and 1,374.5 acres have been acquired by or are under contract to the Board of Trustees. Of the remaining 37,578.5 acres, the proposed amendment will cover 2,720 acres in the area known as Southern CREW Critical Restoration Project.

In 1994, the legislature enacted section 259.041, F.S., which provided the authority to adopt District procedures for joint acquisitions. On June 27, 1995, the Board of Trustees authorized staff to enter into an acquisition agreement with the District to acquire various ownerships located within the CREW CARL project in accordance with section 259.041(16), F.S., utilizing the procedures set out in section 373.139, F.S.

On October 30, 1995, the Land Acquisition Advisory Council expanded the project boundary, eliminated the $10 million cap and designated the project a shared acquisition with the District. As a shared acquisition, the District and the Board of Trustees are each expected to spend the same amount in acquiring land within the project. Since the District has already made some purchases for which it would be credited, staff agreed that it would be appropriate for the Board of Trustees to match those purchases called for under the acquisition agreement. Therefore, the acquisition agreement was initially amended to provide that the Board of Trustees purchase $13,360,000 worth of land in the project at its sole cost and expense before the 50/50 shared acquisitions will resume. The District provided documentation, acceptable to the Division of State Lands, establishing the District’s expenditure in this project. The remaining matching balance is now $11,057,734.

This second amendment to the acquisition agreement (1) authorizes the District to use state funds as a state match for federal funds; and (2) specifies that state funds will only be used for those unimproved parcels voluntarily acquired.

Allowing the District to use state funds as a match for federal funds will allow the District to apply for more available federal dollars and ultimately acquire more land in this critical restoration project. The Southern CREW Critical Restoration Project area has a history of flooding that has required evacuation of residents from the area. The project has received federal funds for land acquisition due to its importance to the historical flow of waters in the area. Restoration of the improved parcels to their natural condition and preservation of the unimproved parcels in their existing natural state should restore the historical flow and help prevent future flooding to the surrounding area. While committing state funds as a match for federal funds will be a benefit to the Everglades and the South Florida Ecosystem restoration efforts, the federal government requires that the land purchased, restored or pledged as a match be used only for the purposes specified in the grant agreement. The federal requirements preclude the Board of Trustees from altering the use of those lands or from disposing of or encumbering them without the concurrence of the granting agency. Federal procedures also allow for the acquisition of improved parcels and payment of relocation expenses. On December 10, 1999, the Land Acquisition and Management Advisory Council (LAMAC) will discuss allowing the District to use state funds to buy improved parcels and pay relocation expenses within this project area as well as in the East Everglades East Coast Buffers CARL project area. If it is so approved by LAMAC, staff will amend this agreement and the East Everglades East Coast Buffers agreement to include this provision.

The Governing Board of the District approved Resolution 99-___ at its November 10, 1999, meeting. If approved by the Board of Trustees, Department of Environmental Protection staff will execute the amendment on behalf of the Board of Trustees.

(See Attachment 3, Pages 1-14)

STAFF REMARKS: At the August 28, 1999 Cabinet Meeting, the Board of Trustees directed the Department of Environmental Protection (DEP) to develop a quick response acquisition process for its review and approval. At the September 14, 1999 Cabinet Meeting, Secretary Struhs committed to have a proposal for a quick response acquisition process at the September 28, 1999 Cabinet Meeting. This proposed process would allow the Division of State Lands (DSL) to act in an entrepreneurial fashion in order to take advantage of opportunity purchases.

Ideally, DEP will strive to acquire all due diligence products such as an appraisal, evidence of marketable title, survey or boundary evidence report and an environmental site assessment. However, given the short timeframe associated with these types of purchases, waivers are necessary in case those products or lesser products cannot be produced in time. To take advantage of these types of acquisitions, which usually have a 30-day or less timeframe from notification to bidding and purchase, the Board of Trustees will have to waive certain chapter 259, F.S. requirements and acquisition procedures.

Section 259.041(1), F.S., allows the Board of Trustees to substitute other prudent procedures provided the public’s interest is reasonably protected. In addition, certain DEP acquisition requirements must be waived or modified. DEP believes that the substitution of the attached procedure for quick response acquisition for the current acquisition requirements would reasonably protect the public's interest and provides potential public dollar savings. In order to implement a quick response acquisition process to take advantage of opportunity purchases, DEP requests that the Board of Trustees substitute the attached procedures and waive the following requirements:

1) a fee appraisal [section 259.041(7)(b), F.S.]

2) evidence of marketable title [section 259.041(6), F.S.]

If the Board of Trustees provides the recommended waivers and substitutions, then as soon as DSL is aware of an opportunity, a quick assessment of the available time frame will be made. Based on that timing, DSL will secure, to the greatest degree possible, the items required under the normal acquisition process. For those items DSL cannot complete in time to participate in auctions or bids, substitutes, if practicable, will be used to ensure that the Board of Trustees’ interest is protected.

Any process that calls for a quick response has the potential for increased risk relating to title, boundary and environmental issues. Risk assessment is a combination of due diligence, problem identification and problem resolution. During the normal course of business, staff makes decisions on the level of due diligence required on a case by case basis. Based on the circumstances surrounding a particular transaction, staff may substitute alternate due diligence products if they provide sufficient information at a lesser cost with respect to time and money. Many properties can be quickly evaluated for title, boundary and environmental issues, with a determination made that there are no apparent risks associated with proceeding with the purchase. It is those transactions where the initial evaluation reveals one or more areas of potential concern that will present the greatest challenge. Under normal circumstances there is sufficient time to perform additional research into potential problem areas and often this research reveals that the issue has either been resolved or presents little or no risk to the Board of Trustees. Unfortunately, the limitations placed on staff as a result of the tight timeframes involved with opportunity purchases may not allow sufficient time to complete this additional research and evaluation. When such a situation arises, staff would recommend erring on the side of caution and passing on such an opportunity unless the benefits far outweigh the risks. Strategies like reducing the bid amount by an anticipated cost to cure, where such costs can be estimated, could be employed if the situation warrants. If issues arise that DSL is either unable to quickly resolve or would indicate the purchase is not in the state’s interest, DSL will terminate the acquisition initiative. The Department of Agriculture and Consumer Services, Division of Forestry and Florida Fish and Wildlife Conservation Commission staff would perform the research for their acquisition programs, with assistance from DSL.

In accordance with section 259.041(3), F.S., the DEP requests a delegation for the purchase of lands for any quick response acquisition except where:

A) The purchase price agreed to by seller exceeds the value as established pursuant to the rules of the Board of Trustees.

B) The acquisition is the initial purchase in a project. (This means that there will be no participation in bankruptcy hearings, auctions or distress sales unless an initial purchase using normal acquisition procedures has been completed).

Notwithstanding the foregoing, the disclosure requirements of section 286.23, F.S., cannot be waived. Under this section, any person or entity holding real property in the form of a partnership, limited partnership, corporation, trust, or any form of representative capacity whatsoever for others with few exceptions, must make a written disclosure, under oath, which shall state his or her name and address and the name and address of every person having a beneficial interest in the real property. To the greatest extent practicable, staff will attempt to secure the required disclosure pursuant to the provisions of this section. In those instances where disclosure is required but cannot be obtained, staff will terminate the acquisition initiative.

Without these above cited waivers, substitutions and a delegation to DEP for approval of these bankruptcy hearings, auctions or forced sales, DEP will not be able to respond within the short time frames that are normally associated with these types of sales. DEP also proposes that this

quick response acquisition process apply to Preservation 2000 and Florida Forever.

Attached is a procedure that outlines the process DEP proposes to use to take advantage of these distress or opportunity sales.

(See Attachment 4, Pages 1-3)

COUNTY: Miami-Dade

APPLICANTS: Department of Children and Family Services (DCF) and Noor Investment, Corp. (Noor)

LOCATION: Section 31, Township 51 South, Range 41 East

CONSIDERATION: Noor will pay to the DCF a monthly rental sum as outlined in Exhibit B of the sublease. The total rental amount due under this sublease during the initial sublease will be $7,692,800. Each sublease payment will be paid monthly in advance to DCF following the schedule stipulated in Exhibit B.

STAFF REMARKS: DCF currently leases and manages 216 acres, more or less, of state-owned land in Miami-Dade County (County). A 19.79-acre parcel was subleased to Agripost, Inc./Agri-Dade Ltd. (Agripost) in 1986 for the purpose of constructing and operating a solid waste recovery facility system. In 1987, the County passed a zoning resolution granting a variance for a resource recovery facility. Agripost constructed the 320,094-square foot metal warehouse at a cost of $15 million dollars. Considerable public debate was generated as a consequence of the zoning variance granted to Agripost for the operation of this facility, and in 1991 the facility was closed after the County revoked its earlier zoning variance. As a consequence, Agripost was forced into bankruptcy. In 1995, Agripost was released from its sublease and the land and improvements reverted back to DCF. The facility has since been vacant and has problems with vandalism.

DCF made several attempts to sublease this property. In 1996, two appraisals were performed which placed the fair market value for the building rental between $160,000 and $245,000 per year. Several potential long-term sublessees expressed interest in the property, but none were able to agree to DCF’s terms. Advertisements were posted in The Miami Herald, the El Nuevo Herald, and the Miami Times soliciting inquiries from potential sublessees. Advertisements were also placed in the Florida Administrative Weekly. There were no positive responses from these advertisements.

In 1998, AL-DAN Trading, Inc., a management company for Noor Investment, Corp. (Noor), which is an importer of small household goods, expressed an interest in subleasing the property and in providing job opportunities for residents of DCF’s Landmark Learning Center. DCF and Noor subsequently negotiated a sublease agreement for the 19.79-acre parcel.

Pursuant to section 18-2.018(2)(i), F.A.C., the Board of Trustees shall authorize uses of uplands that will generate income or revenue to a private user, or will limit or preempt use by the general public, on the basis of competitive bidding unless the Board of Trustees determine it to be in the public interest to do otherwise. The DCF has been unsuccessful in attracting a sublessee for its facility since it was vacated by Agripost. Staff believes that it is in the public interest to negotiate a direct sublease in the interest of getting a long-term business in the facility, in particular one that will provide job opportunities for the residents of DCF’s program.

Pursuant to section 18-2.018(1)(a), F.A.C., the decision to authorize the use of Board of Trustees-owned uplands requires a determination that such use is not contrary to the public interest. The proposed use will further the DCF’s programs by providing job opportunities for its Landmark Learning Center residents; therefore, staff believes the proposed sublease is not contrary to the public interest.

The DCF property is currently designated in the Miami-Dade County Comprehensive Development Master Plan (CDMP) as "Institutional and Public Facility." Noor has applied for rezoning of the sublease area to IU-1 for industrial purposes for its facility. A number of uses are allowed under this classification; however, not all would be consistent with the CDMP designation. The proposed Declaration of Restrictions will limit the use of the property to a warehouse and shipping distribution center only, which the County has determined is consistent with the CDMP.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S. The Department of Community Affairs has determined that the plan is in compliance. The proposed action is consistent with the adopted plan according to a letter received from Miami-Dade County.

(See Attachment 5, Pages 1-38)

COUNTY: Glades

APPLICANTS: Ernest W. Hilliard and Patricia L. Hilliard

LOCATION: Section 12, Township 42 South, Range 32 East

CONSIDERATION: $19,700, plus $3,600 in arrears for the use of state-owned lands, to be deposited in the Internal Improvement Trust Fund

STAFF REMARKS: The subject property consists of 6.78 acres, more or less, of reclaimed lake bottom planted with Ambersweet oranges. The property is located landward of Hoover Dyke, which was constructed in the early 1930’s as part of a federal government-funded flood control and improvement project along the shore of Lake Okeechobee. The parcel is outside the lake perimeter and is zoned for agricultural purposes.

In 1990, Mr. Hilliard, the adjacent property owner, planted an orange grove that extended onto the state-owned lands. Mr. Hilliard has been utilizing the subject property without the benefit of a lease. To rectify the situation, Mr. Hilliard submitted a request to the Department of Environmental Protection, Division of State Lands (DSL) to purchase the 6.78-acre parcel.

The DSL provided notice of the proposed sale to state agencies, the county and owners within 500 feet of the subject property pursuant to sections 253.111, and 253.115, F.S., and 18-2.018(5)(a), F.A.C. No objections were received and the county did not respond with a request to purchase the property. The Land Acquisition and Management Advisory Council approved a surplus designation for the subject parcel on June 11, 1998. The property was subsequently declared surplus by the DSL under delegation of authority. Since the DSL received no objections or replies to the notice of sale, the DSL negotiated a direct sale with Mr. Hilliard.

Clifford M. Bowen, Jr., SRA, IFAS and Daryl W. Williams, MAI, State-Certified General Appraiser performed an appraisal of the property. The effective date of value was August 9, 1999, and the fee simple estimated market value of the property was $19,700. Based on the condition of the grove and minimal production, the trees were not considered to have any contributory value. The DSL recommends acceptance of the market value of $19,700, plus $3,600 in arrears for the use of the state-owned lands for the nine years the grove has been planted on the state-owned lands.

Pursuant to section 28-21.004(1)(a), F.A.C., the Board of Trustees may convey sovereignty lands if determined by the Board of Trustees to be in the public interest. Staff believes that the conveyance should be determined to be in the public interest in light of the following: (1) the land has been permanently reclaimed and will never return to its natural submerged state; and (2) there are no environmental concerns associated with the applicants’ request because the land is already planted with citrus trees and no natural areas remain.

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 6, Pages 1-19)