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AGENDA

BOARD OF TRUSTEES OF THE INTERNAL
IMPROVEMENT TRUST FUND

MARCH 14, 2000

~~~~~~~~~~~~~~~~~~~~

Item 1Minutes

Submittal of the Minutes of the January 25, 2000 Cabinet Meeting.

RECOMMEND ACCEPTANCE


Item 2Florida Gas Transmission Company Recommended Consolidated Intent

DEFERRED FROM THE FEBRUARY 22, 2000 AGENDA

REQUEST: Consideration of an application for (1) a 30-year sovereignty submerged lands public easement for a subaqueous natural gas transmission pipeline; and (2) a waiver of the survey requirement.

COUNTIES:Charlotte, DeSoto, Hardee, Lee, Manatee and Polk

Easement No. 30361

Application No. 29-01547503-001

APPLICANT:Florida Gas Transmission Company

LOCATION:All sovereign submerged lands lying within a legally described corridor within the local jurisdictions of Charlotte, DeSoto, Hardee, Lee, Manatee and Polk counties

Aquatic Preserve: No

Outstanding Florida Waters: No

CONSIDERATION: No payment at this time. However, upon adoption of any rule establishing fees for public utilities, payment shall be assessed from the effective date of said rule.

STAFF REMARKS: The Board of Trustees authorized a rule amendment on September 14, 1995, to "link" the two processes of regulatory and proprietary reviews and authorizations. The rule became effective October 12, 1995. As a result of this linkage, the recommended Department of Environmental Protection (DEP) regulatory permit decision and the recommendation to the Board of Trustees on the proprietary authorization are contained in one document, the "Consolidated Notice of Intent to Issue," which is attached. The attached consolidated intent contains a recommendation for issuance of a permit under Part IV of chapter 373, F.S., and a recommendation for granting authorization to use sovereignty submerged lands under chapter 253, F.S., for the activity described therein. This recommendation is provided to the Board of Trustees pursuant to section 373.427(2), F.S. A description of the requested activity is provided in Section I, "Description of the Proposed Activity." The specific basis for recommending approval of the authorization to use sovereignty submerged lands is contained in Section III, "Background/Basis for Issuance."

Approval by the Board of Trustees is requested only for those aspects of the activity which require authorization to use sovereignty submerged lands. If the Board of Trustees approves the request to use sovereignty submerged lands, and the activity also qualifies for an environmental resource permit, the Consolidated Notice of Intent will be issued and will contain general and specific conditions. In the event the Board of Trustees denies the use of sovereignty submerged lands, whether or not the activity otherwise qualifies for an environmental resource permit, the DEP will issue a "Consolidated Notice of Denial" for both the environmental resource permit and the authorization to use sovereignty submerged lands.

Board of Trustees

Agenda – March 14, 2000Page Two


Item 2, cont.

The applicant is proposing to construct 126 miles of mostly 26- and 30-inch diameter natural gas pipeline as part of the company’s Phase IV expansion of its existing pipeline facilities in Florida. A total of 205 miles of pipeline is proposed statewide in Phase IV to meet increased demand for natural gas largely for electrical power generation. Proposed in this application is the delivery of natural gas to Sarasota and Fort Myers for the first time. The main environmental benefits of the project are cleaner air from burning natural gas instead of oil and the reduction of the risk of spills incurred through the transportation and handling of crude oil.

A public easement was granted to the applicant under delegation of authority in December 1994 for Phase III, which covered 600 miles of pipeline statewide. A public easement for Phase I, including pipeline construction in Walton and Washington counties, was approved by the Board of Trustees in 1977; Phase II did not involve any crossings of sovereignty submerged lands.

The subject application is being presented to the Board of Trustees pursuant to section 18-21.0051(4), F.A.C. (effective October 12, 1995) because the size and nature of the project may elicit heightened public concern.

The proposed project is a public purpose corridor easement that includes all sovereign submerged lands lying within a 50-foot-wide legally described corridor that crosses various inland wetlands and waterbodies in Charlotte, DeSoto, Hardee, Lee, Manatee and Polk counties. The proposed corridor extends through a portion of Hillsborough County; however, sovereign submerged lands in Hillsborough County, pursuant to a legislative act, are under the jurisdiction of the Tampa Port Authority.

Because of the scope of multi-county utility corridor projects and the inherent public purpose of these projects, in lieu of requiring the applicant to perform a survey of the easement areas across multiple sovereign waterbodies that are identified by the DEP, the DEP’s procedures for public purpose corridor easements allow for expediting completion of an application by providing a sketch and a metes and bounds legal description of the entire proposed corridor route county by county. The legal description is prefaced by a blanket statement: "All sovereign submerged lands lying within the following described lands…" Because of the blanket inclusion of all sovereignty submerged lands affected by the project in the legal description, it is not necessary for the DEP to extend the application processing time by identifying each sovereignty submerged lands crossing. Therefore, the DEP recommends approval of the survey waiver.

Collocation with existing corridors was an important criterion in defining the alignment of the pipeline. Approximately 80 percent of the proposed alignment runs adjacent to railroad, highway, and power line corridors.

In order to avoid impacts to sovereignty submerged lands resources, the applicant is proposing to install the pipe totally from the uplands by directionally drilling a hole for the pipe underneath the submerged bottoms of the following navigable waterways: (1) Peace River near Arcadia in DeSoto County; (2) Caloosahatchee River near Fort Myers in Lee County; (3) Orange River near Fort Myers in Lee County; and (4) Manatee River near Bradenton in Manatee County. Directional drilling technology will also be used in Prairie Creek in DeSoto County.

A total of 203.6 acres in wetlands, mostly intermittent creeks and small tributaries designated Class III waters, will be excavated and backfilled over the pipe, resulting in the permanent conversion of 15.6 acres of forested wetlands to herbaceous/scrub wetlands. Any impacts to sovereignty submerged lands in these waters of the state will be concurrently mitigated for in the environmental resource permit specific conditions.

Board of Trustees

Agenda – March 14, 2000Page Three


Item 2, cont.

Approximately 11.5 miles of the proposed 26-inch natural gas pipeline will be located within the Punta Gorda watershed. Shell Creek and Prairie Creek are major components of the Punta Gorda watershed. Both of these creeks, as well as other tributaries, flow from east to west into the Shell Creek Reservoir (Hendrickson Dam). The proposed natural gas pipeline traverses these waterbodies approximately 15 miles (as measured at stream centerline) upstream of the reservoir (water plant intake) where the City of Punta Gorda (City) draws drinking water for treatment. This reservoir serves as the only drinking water source for the City.

Early in the application process, the City expressed concerns regarding the placement of the natural gas pipeline in the watershed of its only drinking water source. The City's main concern relates to the operational aspects of the pipeline, especially during a leak event or a catastrophic main break and/or fire. The applicant worked with the City to address its concerns and provided them with reasonable assurance, to the City’s satisfaction, that the proposed pipeline would not adversely affect the City's potable water.

The project was noticed pursuant to section 253.115, F.S.; no comments or objections were received prior to the end of the 30-day comment period.

A consideration of the status of the local government comprehensive plan was not made for this item. The DEP has accepted the applicant’s claim of preemption by regulation under the Federal Energy Regulatory Commission.

(See Attachment 2, Pages 1-33)

RECOMMENDAPPROVAL OF (1) THE 30-YEAR PUBLIC EASEMENT SUBJECT TO THE SPECIAL APPROVAL CONDITION AND THE SPECIAL EASEMENT CONDITION; AND (2) THE SURVEY WAIVER

******************************************************************************

Item 3Catalpa Cove Property Owners’ Association/DEP Settlement Agreement/ Chapter 18-21, F.A.C., Rulemaking Authorization

REQUEST: (1) Consideration of a proposed settlement of two petitions challenging the Department of Environmental Protection’s interpretation of rule 18-21.005, F.A.C.; and (2) approval of initiation of rulemaking for chapter 18-21, F.A.C., to clarify the forms of consent needed to use sovereignty submerged lands.

APPLICANTS: Catalpa Cove Property Owners’ Association and the Department of Environmental Protection

COUNTY: Lee

LOCATION: Section 35, Township 45 South, Range 23 East, in the Caloosahatchee River,

Class III Waters, within the local jurisdiction of City of Ft. Myers

Aquatic Preserve: No

Outstanding Florida Waters: No

Manatee Aggregation Area: No

Manatee Protection Speed Zone: Yes

CONSIDERATION: $1,425 for the past and proposed severance of sovereign material computed at the rate of $2.25 per cubic yard pursuant to section 18-21.011(3)(a)2, F.A.C.

Sales tax will be assessed pursuant to section 212.031, F.S., if applicable.

Board of Trustees

Agenda – March 14, 2000Page Four


Item 3, cont.

STAFF REMARKS: On November 10, 1999, Catalpa Cove Property Owners’ Association, Inc. (Catalpa Cove) applied for authorization to maintenance dredge an approximately 400-foot existing access channel from its subdivision through a private canal (over which Iona Development Corporation, Inc., holds an easement for use and access) and into the sovereignty submerged lands of the Caloosahatchee River. Catalpa Cove believes that the original channel was dug in the 1950's. As determined from aerial photography, an approximately 80-foot-long by 30-foot-wide access channel existed in 1966. In 1986, the channel was approximately 280 feet long and 30 feet wide, as determined by aerial photography. Records of any proprietary authorizations to dredge are unavailable, and there is no evidence that such authorization for the dredging of sovereignty submerged lands was obtained after July 14, 1967, the date the Board of Trustees first began requiring such authorization.

In 1982, Catalpa Cove’s predecessor received a regulatory permit from the Department of Environmental Regulation (No. 36-44257-5E) to dredge 300 cubic yards from a 20-foot-wide by 400-foot-long navigation channel in the river. The developer of Catalpa Cove, Iona Development Corporation, Inc. (Iona), acquired the property in the early 1990's. In 1992, Iona received a regulatory permit (No. 361931779) to dredge 20 cubic yards of sovereign material from portions of the channel; the watermost portion of the permitted dredging was 400 feet from the canal mouth. In 1994, Iona received a regulatory permit to maintenance dredge approximately 300 cubic yards of sovereign material from the channel. Initially, the Division of State Lands (DSL) acknowledged through a separate action (unlinked at that time) that consent for the dredging was not required. Subsequently, the DSL determined that it had made a mistake and sent Iona a letter rescinding that exemption. Iona states it was confused by the Department of Environmental Protection’s (DEP) actions and dredged the existing channel but did not extend it as planned. Iona believed that the rescinded consent and the requirement to obtain an easement was necessary only for the extension of the channel and not for the maintenance dredging. Due to the uncertainty regarding the 1994 dredging, no enforcement was pursued.

Iona recently turned the subdivision management over to Catalpa Cove. In 1999, Catalpa Cove again applied to maintenance dredge the channel, and DEP acknowledged that this maintenance dredging qualified for a regulatory exemption under section 403.813(2)(f), F.S. However, on November 19, 1999, DEP notified Catalpa Cove that the maintenance dredging required a proprietary easement and requested additional information to process the easement. Catalpa Cove and Iona disputed DEP’s determination that an easement was required and did not submit the requested information. Catalpa Cove and Iona attempted to work out this dispute with staff, but did not reach a resolution. Catalpa Cove was told that an easement was required in accordance with the attached 1988 Board of Trustees' decision in the Patten case.

Subsequently, on January 14, 2000, Catalpa Cove and Iona filed a petition under section 120.56(4), F.S., challenging the Board of Trustees’ 1988 policy. The petition alleged that the requirement of an easement for dredging an access channel was an agency statement defined as a rule, which had not been subjected to rulemaking; that it was contrary to the Board of Trustees’ existing rule; and it was accordingly invalid. Catalpa Cove and Iona filed a second petition under section 120.57(1)(e), F.S., with the Clerk of DEP alleging that their substantial interests had been determined by use of an invalid, unadopted agency statement. Catalpa Cove and Iona maintain that a consent of use is the proper form of authorization under section 18-21.005(1), F.A.C. The Division of Administrative Hearings (DOAH) set a hearing on the first petition for February 16, 2000. DEP, Catalpa Cove, and Iona stipulated to settlement of these issues and the hearing was postponed until March 23, 2000, pending Board of Trustees’ action

Board of Trustees

Agenda – March 14, 2000Page Five


Item 3, cont.

on the settlement. The parties signed the settlement agreement, subject to Board of Trustees’ approval, on February 21, 2000. The second petition was sent to DOAH on February 23, 2000, as the parties agreed.

Section 18-21.005, F.A.C., lists the forms of authorization required for dredging access channels. Paragraph (1)(a)1 provides in part that a consent of use is required for "a single dock or access channel which is no more than the minimum length and size necessary to provide reasonable access to navigable water." Paragraph (1)(a)2 provides that a consent of use is required for ". . . access channels. . . which preempt no more than 1,000 square feet of sovereignty land area for each 100 linear feet of shoreline. . ." and paragraph (1)(a)6 requires a consent of use for "dredging or other removal of sovereignty materials." Catalpa Cove’s project would appear to fall under one of those three sections. Although it appears that under the existing rule a consent of use is the proper form of authorization for an access channel, since 1988 staff routinely has required easements for such dredging because of the language in paragraph (1)(d)8 which requires an easement for "canals, channels and other public water management structures." Past opinions of previous DEP General Counsel(s) supported the position that an easement was required. However, the project is not a public water management structure as defined in section 18-21.003(43), F.A.C.

The DEP’s Bureau of Submerged Lands and Environmental Resources (BSLER) recently reconsidered the required form of authorization for dredging of access channels. This reconsideration recognizes the need to protect the Board of Trustees’ fiduciary responsibilities by providing the least interest in sovereignty submerged lands needed to conduct an activity. A consent of use conveys no real property interest to the holder while an easement conveys a dominant interest in the land. Further, dredging, under most circumstances, does not preempt any sovereign lands or otherwise interfere with traditional public trust rights. The BSLER recently presented draft revisions to chapter 18-21, F.A.C., to its Technical Advisory Committee for Submerged Lands. These draft rules propose that a consent of use is the proper form of authorization for access channels. Given these facts, it is difficult to maintain that an easement should be required in this instance. Therefore, staff recommends settlement of these petitions with the following conditions: (1) DEP will issue Catalpa Cove a proprietary consent of use letter for the maintenance dredging within the original and extended channel, provided that all rule requirements for a consent of use and regulatory exemption are met; (2) Catalpa Cove will withdraw or dismiss both administrative petitions upon receipt of the consent of use; (3) Catalpa Cove will pay $750 in severance fees for the 1994 dredging plus $675 in severance fees for the proposed dredging, for a total of $1,425, upon receipt of the consent of use; (4) DEP will seek Board of Trustees’ approval to initiate rulemaking in chapter 18-21, F.A.C., to clarify the forms of authorization for dredging and other activities on sovereign submerged lands; (5) no other enforcement action will be taken by DEP against Catalpa Cove or Iona for their past dredging activities in this channel; and (6) Catalpa Cove will abide by future Board of Trustees’ rules for any future maintenance dredging projects. Staff believes this settlement is in the best interest of all of the parties.

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

(See Attachment 3, Pages 1-14)

RECOMMEND(1) APPROVAL OF THE SETTLEMENT AGREEMENT; AND (2) APPROVAL OF INITIATION OF RULEMAKING TO AMEND THE FORMS OF AUTHORIZATION IN CHAPTER 18-21, F.A.C.

Board of Trustees

Agenda – March 14, 2000Page Six


Item 4TNC Assignment of Option Agreement (Wright)/Perdido Pitcher Plant Prairie CARL Project

DEFERRED FROM THE FEBRUARY 22, 2000 AGENDA

REQUEST: Consideration of the acceptance of an assignment of option agreement to acquire 238.2 acres within the Perdido Pitcher Plant Prairie CARL project from The Nature Conservancy, Inc.

COUNTY: Escambia

LOCATION: Section 09, Township 03 South, Range 31 West

CONSIDERATION: $490,692 ($476,400 for the acquisition; $14,292 for the purchase of the option agreement)

APPRAISED BYSELLER’STRUSTEES’

REVIEW Nolan RogersAPPROVEDPURCHASEPURCHASEOPTION

NO. PARCELSACRES(04/12/99)(04/12/99) VALUE PRICE * PRICE DATE

000402Wright238.2$450,000$500,000$500,000 unknown $476,40004/15/00

* Sellers have owned the property since 1968.

STAFF REMARKS: The Perdido Pitcher Plant Prairie CARL project is ranked number 5 on the CARL Priority Project List approved by the Board of Trustees on February 9, 1999, and is eligible for negotiation under the Division of State Lands’ Land Acquisition Workplan. This project contains 6,885 acres, of which 2,427.2 acres have been acquired. After the Board of Trustees approves this agreement, and another agreement in the Perdido Pitcher Plant Prairie project presented today, 4,122.5 acres or 60 percent of the project will remain to be acquired.

Pursuant to a multi-party acquisition agreement entered into between the Division of State Lands (DSL) and The Nature Conservancy, Inc. (TNC), TNC has acquired an option to purchase the parcel from Shirley Wright, Theodore S. Wright, Jr., Thea Sue Wright Harkins and Theoley S. Wright Malmer. After the acquisition is approved, the Board of Trustees will acquire the option from TNC for $14,292, which represents agreed upon compensation to TNC for overhead associated with acquiring the option. The assignment of option agreement provides that payment to TNC is contingent upon the Board of Trustees successfully acquiring the property from the owners. The assignment of option agreement further provides that in no event will the purchase price for the option and the purchase price of the property exceed the DSL approved value of the property.

All mortgages and liens will be satisfied at the time of closing. While the seller warrants access in the contract, it has been confirmed that legal access to the property does not exist. The contract will be amended prior to closing. The appraisers valued the property and the sale was negotiated as though there is no legal access. The property can be accessed through adjoining state-owned land. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to the DEP the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them as appropriate. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for any title issues that arise prior to closing.

A survey, a title insurance policy, an environmental site evaluation and, if necessary, an environmental site assessment will be provided by the purchaser prior to closing. Seller shall reimburse 50 percent of the survey cost at closing.

The pine flatwoods and swamps west of Pensacola are interrupted by wet grassy prairies dotted with carnivorous pitcher plants, some of the last remnants of a landscape unique to the northern

Board of Trustees

Agenda – March 14, 2000Page Seven


Item 4, cont.

Gulf coast. Public acquisition of the Perdido Pitcher Plant Prairie CARL project will conserve these prairies and the undeveloped land around them, helping to protect the water quality of Perdido Bay and Big Lagoon, and giving the public a wealth of opportunities to learn about and enjoy this natural land.

The property will be managed by the Division of Recreation and Parks as part of the Tarkiln Bayou State Preserve.

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

(See Attachment 8, Pages 1-44, submitted with the February 22, 2000 agenda)

RECOMMEND APPROVAL


Item 5TNC Assignment of Option Agreement (Dennison)/Perdido Pitcher Plant Prairie CARL Project

REQUEST: Consideration of the acceptance of an assignment of an option agreement to acquire 97.10 acres within the Perdido Pitcher Plant Prairie CARL project from The Nature Conservancy, Inc.

COUNTY: Escambia

LOCATION: Section 11, Township 03 South, Range 31 West

CONSIDERATION: $340,044.20 ($330,140 for the acquisition; $9,904.20 for the purchase of the option agreement)

APPRAISED BYSELLER’STRUSTEES’

REVIEW RogersAPPROVEDPURCHASEPURCHASEOPTION

NO.PARCELACRES(10/21/99) VALUE PRICE PRICE DATE

000401Dennison 97.10$375,000 $375,000 $230,000* $330,140120 days after

BOT approval

* The property was acquired over 5 years ago.

STAFF REMARKS: The Perdido Pitcher Plant Prairie CARL project is ranked number 5 on the CARL Priority Project List approved by the Board of Trustees on February 9, 1999, and is eligible for negotiation under the Division of State Lands’ (DSL) Land Acquisition Workplan. This project contains 6,885 acres, of which 2,427.2 acres have been acquired. After the Board of Trustees approves this agreement, and another agreement in the Perdido Pitcher Plant Prairie project presented today, 4,122.5 acres or 60 percent of the project will remain to be acquired.

Pursuant to a multi-party acquisition agreement entered into between the DSL and The Nature Conservancy, Inc. (TNC), TNC has acquired an option to purchase this parcel from Fayette Dennison. After this acquisition is approved, the Board of Trustees will acquire the option from TNC for $9,904.20, which represents agreed upon compensation to TNC for overhead associated with acquiring the option. The assignment of option agreement provides that payment to TNC is contingent upon the Board of Trustees successfully acquiring the property from the owner. The assignment of option agreement further provides that in no event will the purchase price for the option and the purchase price of the property exceed the DSL approved

value of the property.

Board of Trustees

Agenda – March 14, 2000Page Eight


Item 5, cont.

All mortgages and liens will be satisfied at the time of closing. Portions of the property are subject to oil, gas and mineral interests in favor of prior owners J. C. Pace, et al, W. A. Struck, Thurston Shell and Robert W. and Thelma I. Andrews. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to the Department of Environmental Protection (DEP) the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them as appropriate. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for this and any other title issues that arise prior to closing.

A survey, a title insurance policy, an environmental site evaluation and, if necessary, an environmental site assessment will be provided by the purchaser prior to closing.

The pine flatwoods and swamps west of Pensacola are interrupted by wet grassy prairies dotted with carnivorous pitcher plants, some of the last remnants of a landscape unique to the northern Gulf coast. Public acquisition of the Perdido Pitcher Plant Prairie CARL project will conserve these prairies and the undeveloped land around them, helping to protect the water quality of Perdido Bay and Big Lagoon, and giving the public a wealth of opportunities to learn about and enjoy this natural land.

The property will be managed by the Division of Recreation and Parks as part of the Tarkiln Bayou State Preserve.

The 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 1-21)

RECOMMEND APPROVAL


Item 6B.D.M. Financial Corporation/Jacob Aaron Corporation Option Agreement/ Brevard Coastal Scrub Ecosystem CARL Project

REQUEST: Consideration of an option agreement to acquire 640 acres within the Brevard Coastal Scrub Ecosystem CARL project from B.D.M. Financial Corporation and Jacob Aaron Corporation.

COUNTY: Brevard

LOCATION: Sections 24 through 27 and 34, Township 23 South, Range 35 East

CONSIDERATION: $2,650,000

APPRAISED BYSELLER’STRUSTEES’

REVIEW BensonSchieberAPPROVEDPURCHASEPURCHASEOPTION

NO. PARCELACRES(02/11/98)(02/11/98) VALUE PRICE PRICE DATE

000404B.D.M. 640$2,230,000$2,750,000$2,676,000* **$2,650,000150 days

after BOT

* This value is 120 percent of the lower appraisal. See the administrative review of the appraisals.approval

** Ownership to this property was assembled over many years.

STAFF REMARKS: The Brevard Coastal Scrub Ecosystem CARL project is ranked number 8 on the CARL Mega-Multiparcel Project List approved by the Board of Trustees on

Board of Trustees

Agenda – March 14, 2000Page Nine


Item 6, cont.

February 9, 1999, and is eligible for negotiation under the Division of State Lands’ Land Acquisition Workplan. The Mega-Multiparcel ranking group of the project contains 6,700 acres, of which 25.2 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 6,034.8 acres or 90 percent of the project will remain to be acquired.

All mortgages and liens will be satisfied at the time of closing.  This acquisition consists of approximately 413 vacant lots that are part of an unrecorded, aliquot parts subdivision that provides the means for access and services through a series of easements. Individual lot acreage in the appraisals, in most cases, includes land covered by these easements and the appraisers have stated that the existence of the easements does not impact the value of the lots. What is not clear at this point is the ownership of the underlying fee title to these easement areas or if the easements are even valid. The owners are aware of the fact that the final resolution of this issue may result in a reduction in the value of the property and the potential for a downward adjustment in the purchase price. The contract provides for this with a downward adjustment provision that has no floor and a cap on the purchase price at the contract price. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to the Department of Environmental Protection (DEP) the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them as appropriate. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for this and any other title issues that arise prior to closing.

A title insurance policy, a survey, an environmental site evaluation and, if necessary, an environmental site assessment will be provided by the purchaser prior to closing.

The strip of coastal scrub that once paralleled the Indian River in Brevard County is now a set of small fragments surrounded by housing developments. Public acquisition of the Brevard Coastal Scrub Ecosystem CARL project will preserve a few of the best fragments, thus helping to ensure the survival of the endangered scrub jay and scrub itself in the county, and providing areas where the public can learn about and appreciate this unique landscape.

These properties will be managed by the Florida Fish and Wildlife Conservation Commission for the restoration of coastal scrub and associated plant and animal species.

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 1-34)

RECOMMEND APPROVAL


Item 7Turley Option Agreement/McKay Bay Greenway Greenways and Trails Project

REQUEST: Consideration of an option agreement to acquire 2.41 acres within the McKay Bay Greenway project under the Preservation 2000 Florida Greenways and Trails program from James H. and Helen Rose Mary Turley.

COUNTY: Hillsborough

APPLICANT: Office of Greenways and Trails

Board of Trustees

Agenda – March 14, 2000Page Ten


Item 7, cont.

LOCATION: Section 21, Township 29 South, Range 19 East

CONSIDERATION: $315,000

APPRAISED BYSELLER’STRUSTEES’

REVIEW AyoCaldwellAPPROVEDPURCHASEPURCHASEOPTION

NO. PARCELACRES(08/25/98)(08/30/98) VALUE PRICE PRICE DATE

000403Turley2.41$350,000$350,225 $315,000* ** $315,000365 Days

after BOT

* The approved value was adjusted to reflect a 0.27-acre less-out.approval

** The property was acquired over thirty years ago.

STAFF REMARKS: The McKay Bay Greenway project has been identified on the Office of Greenways and Trails’ (OGT) approved acquisition list. Pursuant to a multi-party agreement between the Division of State Lands and the City of Tampa (City), this acquisition was negotiated by the City on behalf of the OGT under the Preservation 2000 Florida Greenways and Trails program. The project contains 20.96 acres, of which these are the first to be acquired. After the Board of Trustees approves this agreement, 18.55 acres or 89 percent of the project will remain to be acquired.

The property is improved with an older single-family residence, mobile home pads and several mobile homes. The mobile homes were not included in the value of the parcel and will be removed prior to closing. The appraisal indicates that the building, which will be torn down after closing, adds no significant or contributory value.

All mortgages and liens will be satisfied at the time of closing. The legal description contained in the contract does not reflect the 0.27-acre less-out. The purchase price has been adjusted to reflect the less-out. The legal description in the contract will be amended prior to closing. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to the Department of Environmental Protection (DEP) the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them as appropriate. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for any title issues that arise prior to closing.

A title insurance policy, a survey, an environmental site evaluation and, if necessary, an environmental site assessment will be provided by the purchaser prior to closing. The seller will reimburse the purchaser’s title insurance costs.

The acquisition of this parcel will help secure the remaining available land surrounding McKay Bay as resource management areas and aid in linking a multi-use trail system for recreational use and environmental education.

The OGT will be the interim manager of the property with the City as the long-term manager. The property will be managed as a part of the McKay Bay Greenway project.

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 1-36)

RECOMMEND APPROVAL

Board of Trustees

Agenda – March 14, 2000Page Eleven


Item 8Paul/Cummer/Harrison Purchase Agreement/Managing Agency Designation/ Management Policy Statement Confirmation/Twelve Mile Swamp CARL Project

REQUEST: Consideration of (1) authorization to acquire an undivided 50 percent interest with the St. Johns River Water Management District (District) in 21,931 acres within the Twelve Mile Swamp CARL project from Robert H. Paul, III, as Trustee, Cheryl S. Cummer, as Trustee, and Howard W. Harrison, Jr., as Trustee (Cummer Trust); (2) designation of the District as the managing agency; and (3) evaluation and amendment of the management policy statement.

COUNTY: St. Johns

LOCATION: Sections 09, 11, 13, 16, 21 through 24, 27, 28, 33 through 36, 38, 39 and 42 through 45, Township 05 South, Range 28 East; Sections 29 through 32 and 41 through 43, Township 05 South, Range 29 East; Sections 01, 03, 10 through 13, 23 through 25, 26, 36, 39, 45, 46 and 48, Township 06 South, Range 28 East; Sections 04 through 06, 08, 17 through 22, 27 through 34, 46, 58 through 64, 66 through 72 and 75 through 78, Township 06 South, Range 29 East; and Sections 03 through 06, 08 through 10, 37 and 53, Township 07 South, Range 29 East

CONSIDERATION: $10,084,315 (The Board of Trustees’ 50 percent share of the total purchase price of $20,168,630. The final purchase price will be adjusted in the amount of $919.64 per surveyed acre pursuant to a boundary survey obtained by the District certifying the total number of acres in the tract.)

STAFF REMARKS: The Twelve Mile Swamp CARL project is ranked number 27 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’ (DSL) Land Acquisition Workplan. The project contains 26,315 acres, of which this is the first acquisition. After the Board of Trustees approves this agreement, 4,384 acres or 17 percent of this project will remain to be acquired.

The strategic location of the Twelve Mile Swamp CARL project assists in fulfilling two main purposes. The first is the protection of natural resources in this rapidly growing area of southern Duval and northern St. Johns counties. This area includes the headwaters of several creek systems that flow to the St. Johns River to the west and the Tolomato and Matanzas Rivers to the east. Protection of the headwaters will ensure that the quality and quantity of water in these tributary streams will remain intact. Additionally, this is the site of an existing wellfield for the City of St. Augustine. Preservation of this water supply may be maximized by allowing for rehydration of areas that may have otherwise experienced adverse impacts.

Secondly, this project is also very important from a growth management standpoint. At least five existing or proposed Developments of Regional Impact are located nearby. All of this development has placed a tremendous amount of pressure on Duval and St. Johns counties to plan for the needed infrastructure. Preservation of lands within the Twelve Mile Swamp CARL project will create a large greenspace of public ownership that will assist in growth management goals and provide public recreation at the end of a timber lease, when this need will have increased.

On June 24, 1998, the Board of Trustees authorized staff to enter into an acquisition agreement with the District to acquire the Cummer Trust ownership, which is part of the Twelve Mile Swamp CARL project, in accordance with section 259.041(16), F.S. (1994), utilizing the procedures set out in section 373.139, F.S.

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An existing timber lease that encumbers the entire property and precludes public access will expire on December 31, 2025. The District obtained appraisals with and without the timber lease. The property without the existing lease was valued between $65,800,000 and $76,760,000. By acquiring the property subject to the lease, the state will save at least $45,000,000. The purchase price of this acquisition is less per acre than the District typically pays for conservation easements. The lessee was approached about the purchase of the leasehold interest but they indicated that they had no intention of selling their leasehold interest. District staff has met with the lessee, Rayonier, Inc., regarding this lease and will continue to do so while monitoring it during its term. If the lessee should desire to enter into negotiations at some time in the future regarding termination or a modification of the lease that would be environmentally beneficial, the District will consult with the DSL regarding either option.

The timber lease generates approximately $317,561 per year, with adjustments based upon the Wholesale Price Index. The Cummer family entered into this lease in 1959. It will continue until December 31, 2025. The lease revenues will be divided equally between the District and the Board of Trustees. The lease revenue to the District will be used to offset the costs of management of District lands. The Board of Trustees’ lease revenue will be deposited in the Internal Improvement Trust Fund and used for the purposes allowed by law.

When originally placed on the CARL acquisition list in 1992, the project consisted of 1,900 acres less than the current proposed acquisition. This acreage was excluded from the original proposal west of I-95 and around the I-95/SR 210 exit in order to utilize I-95 as a western boundary delineation, and on the eastern boundary to avoid an existing sandpit. The seller has owned the property for nearly 100 years and at the time of the original boundary design, the seller was uncertain as to the extent of their ownership. Subsequent to the original boundary design, the seller determined that their ownership included the subject 1,900 acres. Based on the seller’s requirement that the total ownership be acquired, a boundary amendment to add the additional 1,900 acres is currently being prepared by the DSL for the consideration and approval of the Acquisition and Restoration Council (ARC).

Pursuant to the terms of the acquisition agreement, the District contracted to purchase the Cummer Trust’s ownership at 86 percent of the approved value with the lease. Title to the property acquired will vest jointly in the Board of Trustees and the 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. In the event the boundary amendment is not approved by the ARC, the District will either acquire 100 percent of the title interest in the 1,900 acres outside the CARL boundary with no reimbursement from the Board of Trustees; remove the 1,900 acres from the purchase; or terminate the contract.

As provided for in the acquisition agreement, on December 8, 1999, the Governing Board of the District adopted Resolution No. 2000-05, requesting the Board of Trustees’ share of the purchase price for the Cummer Trust parcels, reimbursement of 50 percent of its pre-acquisition costs and reimbursement of 50 percent of its closing 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.

At the time the Board of Trustees approved the 1999 CARL Annual Report on February 9, 1999, the Department of Agriculture and Consumer Services, Division of Forestry (DOF) was identified as the lead managing agency for all lands within the Twelve Mile Swamp CARL project. The existence of the timber lease on the Cummer Trust property conflicts with the DOF’s policy to manage for natural resource conservation and outdoor recreation activities

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Item 8, cont.

under a multiple-use management regime. Since the management requirements for this tract will be limited due to the existence of the timber lease, which will be monitored by the District for its duration, the District has agreed to manage all lands within the project. Pursuant to section 259.032(9)(b)2, F.S., staff recommends that the Board of Trustees designate the District as the manager of the Twelve Mile Swamp CARL project. It will be managed as a water management area with such future uses as camping, hiking, hunting and horseback riding.

Section 259.032(9)(b)2, F.S., requires that the Board of Trustees, concurrent with its approval of the initial acquisition agreement within a project, "evaluate and amend, as appropriate, the management policy statement for the project as provided by section 259.035, F.S., consistent with the purposes for which the lands are acquired." The management policy statement for this project was included in the 1999 CARL Annual Report adopted by the Board of Trustees on February 9, 1999. This statement did not take into consideration the existing timber lease. Staff recommends that the Board of Trustees confirm the amended management policy statement as follows:

For twenty-five years, the St. Johns River Water Management District will monitor the implementation of an existing timber lease on the property and, upon termination of the lease in 2025, the primary goals of management of the Twelve Mile Swamp CARL project are will be: to conserve and protect significant habitat for native species or endangered and threatened species; to manage water supply in the region to protect water resources; and to conserve, protect, manage, or restore important ecosystems, landscapes, and forests, in order to enhance or protect significant surface water, coastal, recreational, timber, fish or wildlife resources which local or state regulatory programs cannot adequately protect.

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

(See Attachment 8, Pages 1-49)

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