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AGENDA
BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND
MARCH 12, 2002
Substitute Page

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Substitute Item 1 Marco River Marina, Inc. Recommended Consolidated Intent

DEFERRED FROM THE JANUARY 29, 2002 AGENDA

REQUEST: Consideration of an application to modify an existing ten-year sovereignty submerged lands lease to increase the preempted area from 37,951 square feet to 104,622 square feet, more or less, for an existing commercial marina.

COUNTY: Collier
Lease No. 110874995
ERP File No. 11-0143569-002

APPLICANT: Marco River Marina, Inc., a Florida Corporation

LOCATION: Section 05, Township 52 South, Range 26 East, in the Marco River, Class II waters, within the local jurisdiction of the city of Marco Island
Aquatic Preserve: No
Outstanding Florida Waters: No
Designated Manatee County: Yes, with an approved manatee protection plan
Manatee Aggregation Area: No
Manatee Protection Speed Zone: Yes, idle/slow speed zone
CONSIDERATION: $11,201.93 as the initial lease fee computed at the base rate of $0.1246 per square foot, discounted 30 percent because of the first-come, first-served nature of the facility, 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. The lease fee may be adjusted based on six percent of the gross rental income pursuant to section 18-21.011(1)(a)1, F.A.C.

STAFF REMARKS: In accordance with rules adopted pursuant to sections 373.427(2) and 253.77(2), F.S., the attached "Consolidated Notice of Intent to Issue" contains a recommendation for issuance of both the permit required under part IV of chapter 373, F.S., and the authorization to use sovereignty submerged lands under chapter 253, F.S. The Board of Trustees is requested to act on 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 a permit, the Department of Environmental Protection (DEP) will issue a "Consolidated Notice of Intent to Issue" that will contain general and specific conditions. If the Board of Trustees denies the use of sovereignty submerged lands, whether or not the activity qualifies for a permit, DEP will issue a "Consolidated Notice of Denial."

The lessee is proposing to modify an existing 21?slip commercial docking facility by increasing: (1) the preempted area from 37,951 square feet to 104,622 square feet; and (2) the number of wet slips from 21 to 51. This expansion is in conjunction with the existing upland marina, boat repair and 163-unit dry storage facility. The docking facility will be used for private recreational vessels, charter fishing vessels, and shuttle vessels taking passengers to Key West. There are no gambling ships / "cruises to nowhere." A minimum of 90 percent of all slips will be maintained on an open to the public, first-come, first-served basis, and this requirement has been included as a special lease condition. Additional 59 boat slips are located in an existing privately owned, man-made basin.

An existing 295-foot-long by 8-foot-wide dock with six 20-foot-long by 3-foot-wide finger piers will be removed and replaced by a 443-foot-long by 10-foot-wide dock with eight 40-foot-long by 5-foot-wide finger piers and one 25-foot-long by 10-foot-wide finger pier. An existing 111-foot-long by 10-foot-wide dock will be expanded by construction of a 293-foot-long by 10-foot-wide dock with six 30-foot-long by 4-foot-wide finger piers, and a 30-foot-long triangle-shaped dock approximately 15-feet wide at its base and 4-feet wide at its
Board of Trustees
Agenda - March 12, 2002
Substitute Page Two

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Substitute Item 1, cont.

terminus. A 25-foot-long by 10-foot-wide access dock will connect the existing 111-foot-long dock to the proposed 293-foot-long dock.

On January 25, 1977, the Board of Trustees approved a sovereignty submerged lands lease containing 8,070 square feet, more or less. On June 2, 1981, the Board of Trustees approved a modified lease containing 14,270 square feet, more or less. On December 18, 1984, the Board of Trustees approved a modified lease containing 37,951 square feet, more or less. On February 22, 1995, DEP renewed the lease under a delegation of authority. On December 18, 1999, DEP again renewed the lease under a delegation of authority and modified the term of the lease from five to ten years pursuant to section 18-21.008(1), F.A.C., because 90 percent of the slips at the marina will be open to the general public on a first-come, first-served basis. The lease expires on December 18, 2009.

An April 21, 2000 inspection by DEP revealed that the lessee had not installed the manatee informational display and awareness signs required by the 1995 lease renewal. The lessee subsequently installed the display, and no administrative fine was assessed for this violation. Since the awareness signs will be placed on the end of the docks that are proposed to be removed and replaced, a special lease condition requires sign installation within 60 days of completion of construction authorized by the Environmental Resource Permit. A November 21, 2001 inspection by DEP revealed that a 48-foot-long by 6-foot wide floating dock had been temporarily placed adjacent to the existing 295-foot-long by 8-foot-wide dock. The unauthorized dock was intended to replace one of the existing floating docks at the travel lift that had deteriorated with age. The unauthorized dock was installed and the old dock has been removed. No administrative fine was assessed for this violation since the unauthorized dock was installed within the existing lease area, did not provide additional boat slips, did not change the use of the docking facility, and was only temporary.

The existing lease prohibits fueling facilities and liveaboards, but authorizes a sewage pumpout facility. DEP's environmental resource permit requires sewage pumpout facility, prohibits liveaboards, and prohibits fueling facilities over sovereignty submerged lands, but authorizes fueling facilities in the man-made basin. The permit also incorporates several requirements designed to prevent and/or reduce water quality impacts, thereby resulting in a net improvement to water quality at the site. Those requirements include: (1) installation of a closed-loop recycled water system for the existing boat wash down area; (2) retrofitting existing storm water structures with filters to absorb hydrocarbons from vehicles parked at the marina; (3) development of marina operations plan; (4) installation of a sewage pumpout facility for transient vessels having liveaboard capability; and (5) a requirement that CCA-treated pilings to be wrapped with PVC sleeves to reduce leaching of CCA in the waterbody.

Recommendations from the Florida Fish and Wildlife Conservation Commission (FFWCC) regarding manatee protection have been addressed in the specific conditions of the environmental resource permit or as special lease conditions in the lease. Additionally, Collier County has adopted and implemented a manatee protection plan. FFWCC has stated that the proposed project appears to be consistent with the approved manatee protection plan.

A proposed special lease condition will require the lessee to ensure that the renter of any slip at the docking facility enters into a signed agreement, between the lessee and the renter, stating that the slip renter agrees to comply with the speed zones contained in the Collier County Manatee Protection Plan, or any revisions adopted by Collier County and approved by FFWCC, and/or any speed zones established by the city of Marco Island and approved by FFWCC.

The current modified lease request was not required to be noticed due to an exemption for lease modifications, pursuant to section 253.115(5)(i), F.S.

Board of Trustees
Agenda - March 12, 2002
Substitute Page Three

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Substitute Item 1, cont.

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 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 Marco Island.

(See Attachment 1, Pages 1-38)

RECOMMEND APPROVAL SUBJECT TO THE SPECIAL LEASE CONDITIONS, AND PAYMENT OF $11,201.93

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Item 2 David G. & Rita Law Lease Revocation

DEFERRED FROM THE SEPTEMBER 11, 2001 AGENDA
DEFERRED FROM THE NOVEMBER 14, 2001 AGENDA
DEFERRED FROM THE JANUARY 29, 2002 AGENDA

REQUEST: Authorization to revoke an existing 25-year sovereignty submerged land lease containing 30,296 square feet, more or less.

COUNTY: Collier
Lease No. 111536925
Lessee: David G. Law and Rita Law (d/b/a Goodland Bay Marina)

APPLICANT: Department of Environmental Protection (DEP)

LOCATION: Section 18, Township 52 South, Range 27 East, in Blue Hill Creek, Class II Waters, within the local jurisdiction of Collier County
Aquatic Preserve: Yes, Rookery Bay, Resource Protection Area III
Outstanding Florida Waters: Yes
Designated Manatee County: Yes, with an approved manatee protection plan
Manatee Aggregation Area: No
Manatee Protection Speed Zone: Yes, idle/slow speed zone

STAFF REMARKS: This request was presented for Board of Trustees' consideration on September 11, 2001, because of the lessee's flagrant and repetitive violations of the lessee's sovereignty submerged lands lease, Florida Statutes, and Florida Administrative Codes. At that meeting, the Board of Trustees deferred action on DEP's request until November 14, 2001. That deferral was recommended by DEP to provide DEP, the lessee, and the lessee's representatives additional time to enter into a Consent Final Judgment to resolve the lessee's violations. The negotiations between the parties were not finalized by November 14, 2001; therefore, DEP recommended deferral of this request until the January 29, 2002 meeting of the Board of Trustees.

DEP, the lessee and the lessee's representatives have been diligently working to complete the agreement. While the agreement addresses most of the significant issues, outstanding technical details of the agreement remain. DEP anticipated that these details would be worked out to the satisfaction of all parties by early February. Therefore, DEP again recommended that the Board of Trustees defer action on DEP's request until March 12, 2002.

DEP, the lessee and the lessee's representatives have continued to diligently work to complete the agreement. However, outstanding technical details of the agreement remain. DEP now
Board of Trustees
Agenda - March 12, 2002
Page Four

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Item 2, cont.

anticipates that these details will be worked out to the satisfaction of all parties by early April. Therefore, DEP again recommends that the Board of Trustees defer action on DEP's request until May 7, 2002.

RECOMMEND DEFERRAL TO THE MAY 7, 2002 CABINET MEETING

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Item 3 Combee Option Agreement/Green Swamp Area of Critical State Concern/ Green Swamp Florida Forever Project

REQUEST: Consideration of an option agreement to acquire a perpetual conservation easement over 215.6 acres within the Green Swamp Area of Critical State Concern and the Green Swamp Florida Forever project from Cornelius A. Combee, Sr. and Mary A. Combee.

COUNTY: Polk

LOCATION: Section 05, Township 26 South, Range 24 East

CONSIDERATION: $196,200

APPRAISED
BY
SELLER'S
TRUSTEES'
Waller
APPROVED
PURCHASE
PURCHASE
OPTION
PARCEL
ACRES
(07/20/00)
VALUE
PRICE
PRICE
DATE
4J/Combee
215.6
$216,000
$204,600 **
***
$196,200
* 150 days after
(96%)
BOT approval

* $910/ac. The purchase price for the conservation easement is 56 percent of the appraised fee value of $344,800.
** The approved value was revised to reflect a 12-acre cutout from the original acreage of 227.6 acres.
*** The property was inherited in 1994.

STAFF REMARKS: Effective July 1, 1999, the legislature transferred all activities performed by the Green Swamp Land Authority to the Department of Environmental Protection (DEP) as provided in section 51, chapter 99-247, Laws of Florida. The Green Swamp Area of Critical State Concern contains 322,690 acres, of which 32,703 acres are protected by, or under agreement to be protected by, land protection agreements or conservation easements. After the Board of Trustees approves this agreement, 289,771 acres, or 90 percent of the area, will remain to be acquired. This acquisition also lies within the Green Swamp Florida Forever project boundary, which contains 276,165 acres, of which 28,130.18 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 247,819.22 acres, or 90 percent of the Green Swamp Florida Forever project, will remain to be acquired.

The proposed conservation easement will allow the owner to retain certain rights, which include but are not limited to the following:

· The right to observe, maintain, photograph, fish, hunt, introduce and stock native fish or wildlife on the property;
· Non-commercial hiking, camping, and horseback riding;
· Cattle grazing and improved pasture;
· One subdivision of the property; and
· The harvesting of sod and row crops in improved pasture areas, limited to 50 percent of the improved pasture at any one time.

Under the proposed conservation easement the property will be restricted in perpetuity by the following provisions of the easement, which include, but are not limited to, the following:
Board of Trustees
Agenda - March 12, 2002
Page Five

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Item 3, cont.

· New residential structures will be prohibited;
· Dumping of trash, waste, hazardous materials and soil will be prohibited;
· Mining and excavation will be prohibited;
· Timber harvesting in any herbaceous or forested wetland area or open water will be prohibited;
· Acts or uses detrimental to the retention of land or water areas, or to the use of the property as a water recharge area will be prohibited; and
· Leasing of hunting and fishing rights will be prohibited.

All mortgages and liens will be satisfied or subordinated 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 property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

A survey of the property has been completed and will be updated prior to closing. A title insurance policy, environmental site assessment and an easement documentation report will be provided by the purchaser prior to closing.

The mosaic of cypress swamps, pine forests, and pastures known as the Green Swamp is a vital part of the water supply of Central Florida. This region gives rise to four major river systems (the Withlacoochee, Oklawaha, Hillsborough and Peace) and, because it has the highest groundwater elevation in the peninsula, is important for maintaining the flow of water from the Floridan Aquifer. Preservation by acquiring certain rights to the properties located within the area will protect the Floridan Aquifer and the headwaters of several rivers, and preserve a large area for wildlife.

The Department of Environmental Protection's (DEP) Office of Environmental Services will be the interim monitor for the conservation easement until such time that DEP staff has determined a permanent monitor.

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

(See Attachment 3, Pages 1-33)

RECOMMEND APPROVAL

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Item 4 Springs Land Investments, LTD/Jessup Shores Limited Partnership Option Agreement/Winter Springs Town Center Project

REQUEST: Consideration of an option agreement to acquire 9.4 acres within the Winter Springs Town Center project under the Florida Forever program from Springs Land Investments, LTD, and Jessup Shores Limited Partnership.

COUNTY: Seminole

APPLICANT: Department of Environmental Protection, Office of Greenways and Trails (OGT)

LOCATION: Section 42, Township 20 South, Range 30 East


Board of Trustees
Agenda - March 12, 2002
Page Six

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Item 4, cont.

CONSIDERATION: $1,640,000

APPRAISED
BY
SELLER'S
TRUSTEES'
Roper
Rex
APPROVED
PURCHASE
PURCHASE
OPTION
PARCEL
ACRES
(10/08/00)
(11/16/00)
VALUE
PRICE
PRICE
DATE
Springs/
9.4
$1,640,000
$1,530,000
$1,640,000
*
$1,640,000**
108 Days after
Jessup
(100%)
BOT approval

* The property was acquired over five years ago.
** $174,468/acre

STAFF REMARKS: The Winter Springs Town Center project has been identified on the Department of Environmental Protection (DEP), OGT approved acquisition list. Pursuant to a multi-party agreement between the DEP's Division of State Lands, OGT and the City of Winter Springs (City), this acquisition was negotiated by the Division of State Lands on behalf of OGT under the Preservation 2000 Florida Greenways and Trails program. However, the Preservation 2000 funds were reallocated and OGT lost $7,957,246.36 of its funds. This made it necessary for OGT to reprioritize their acquisitions, with trail connectors having a higher priority than trailheads. Although trailheads are vital as the support system for a trail and it is inevitable that trailheads in urban areas will be more costly than in rural areas, the total cost of this particular trailhead consumes a large portion of the OGT acquisition funds. Currently the nearest trailhead (Black Hammock Trailhead) is approximately 2.5 miles from the Winter Springs Town Center project. This trailhead has a capacity of 40 parking spaces and it does have restroom facilities. Under these circumstances, the purchase price of $1,640,000 for a trailhead is not feasible. However, it was requested that this agreement be placed on the agenda.

Although OGT does not currently require a match for funding, the City considered making a contribution of $750,000 towards the purchase price. This is the amount of funding that the City had anticipated to spend on the development of the trailhead. Even though this would reduce the Board of Trustees' purchase price to $890,000, this amount still represents a significant portion of the OGT acquisition funds. The City has since determined that it will be unable to make the contribution. To date, OGT has contributed $600,000 towards this project, as well as a land exchange, which provided an additional 4.11 acres to the project.

This property would be acquired using federal acquisition procedures in accordance with the Federal Intermodal Surface Transportation Efficiency Act and the Code of Federal Regulations Title 49. On June 22, 1999, the Board of Trustees approved a recommendation to substitute the land acquisition procedures of the Federal Highway Administration for the State of Florida's procedures outlined in section 259.041, F.S., for the projects that qualify for federal enhancement funding, as administered by the Florida Department of Transportation. Pursuant to federal regulation requirements, the initial offer was 100 percent of the approved value.

All mortgages and liens would be satisfied at the time of closing. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to DEP the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them appropriately. Therefore, DEP staff would review, evaluate and implement the most appropriate resolution for any title issues that arose prior to closing.

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

This acquisition consists of two non-contiguous parcels. These parcels would be part of an interconnecting system of greenspaces and trails throughout the Winter Springs Town Center and the Cross Seminole Trail - which is a segment of the Florida National Scenic Trail. This project would enhance outdoor recreation, along with providing a means of alternative transportation. The City plans to locate a trailhead on this property, which would also support the Florida National Scenic Trail. Trailhead facilities would include trailhead parking,
Board of Trustees
Agenda - March 12, 2002
Substitute Page Seven

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Item 4, cont.

welcome center and concession stand, restrooms, educational information for recreational users, equestrian corral and picnic area.

OGT would be the interim manager of the property with the City as the long-term manager. The property will be managed as part of the Winter Springs Town Center project.

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

(See Attachment 4, Pages 1-5)

RECOMMEND WITHDRAWAL

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Substitute Item 5 Hunt Camp Proposed Standard Lease Terms/Delegation of Authority/Everglades Water Conservation Areas 2 and 3

DEFERRED FROM THE JANUARY 29, 2002 AGENDA
DEFERRED FROM THE FEBRUARY 27, 2002 AGENDA

REQUEST: Consideration of (1) approval of the proposed standard lease terms and conditions and the fee schedule for 27 hunt camps located within Everglades Water Conservation Areas 2 and 3 and which are located on Board of Trustees' property; and (2) delegation of authority to negotiate the final lease terms and conditions and execute the leases, so long as the final lease terms are substantially consistent with those approved by the Board of Trustees.

COUNTIES: Miami-Dade and Broward

STAFF REMARKS: The 2000 Florida legislature passed a law, section 253.03(7)(d), F.S., that requires the state to issue a lease to each of the hunt camp owners within the Everglades Water Conservation Areas 2 and 3. These hunt camps are typically houses and other habitable structures built without authorization on property belonging to the Board of Trustees and the South Florida Water Management District (SFWMD). In Everglades Conservation Areas 2 and 3 there are 77 hunt camps; 9 are on private lands, 27 are on Board of Trustees' land, 17 are on SFWMD land and 24 are on Miccosukee Indian lease areas. It is the intent of the legislation that all of the camps on public lands be brought under lease.

To be entitled to a lease on hunt camps that existed on or before May 1, 1999, the hunt camp owners were required to notify the SFWMD by January 1, 2001. The SFWMD has confirmed that all the camps were in place on or before May 1, 1999. The law states that the timely remittal of the notification automatically grants to the hunt camp owner a 20-year lease. In the event any hunt camp lease has not been executed by the owner on or before April 30, 2002, staff will take the appropriate action necessary to resolve the issue. The law further states that the lease shall terminate no later than January 1, 2020. Therefore, the term of the leases will be January 1, 2000, to January 1, 2020. At the expiration of the 20-year lease, the Department of Environmental Protection (DEP) shall have the option to renew the leases or require the lessees to remove the structures. It is important to note that section 253.03(7)(d), F.S., also states that the existence or use of these structures will not impede the restoration of the Everglades. Each lease will contain language to that effect.


Board of Trustees
Agenda - March 12, 2002
Substitute Page Eight

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Substitute Item 5, cont.

DEP has coordinated with the SFWMD to draft the terms and conditions of the proposed lease so that there is a consistency of lease terms and fees among all lessees on public lands. While this item is for the 27 camps on Board of Trustees' lands, the Division of State Lands (DSL) is
considering entering into an agreement with the SFWMD, subject to SFWMD governing board approval, to administer the leases on the 17 camps located on SFWMD property. If DSL administers these SFWMD leases, DSL will collect and be entitled to the lease fees from the SFWMD leases. These fees will be deposited into the Internal Improvement Trust Fund. If this item is approved by the Board of Trustees, a copy of the proposed lease agreement will be sent to each hunt camp owner along with a letter informing them of the steps required to activate the lease. Typically, staff would have leases executed by the lessee prior to bringing them to the Board of Trustees. Because of the uniqueness of this situation; however, staff feels that it is appropriate to receive approval from the Board of Trustees prior to proceeding with the owners. After meeting with the owners there may be some modifications to the lease terms; therefore, staff is requesting delegated authority from the Board of Trustees to finalize these leases.

The annual lease fee for these leases will be $1,041.33 per year (which takes into consideration the 2000 and 2001 lease payments) with a 2.75 percent increase each year. The increase is based upon a five-year average of the consumer price index and is consistent with other leases approved by the Board of Trustees. The lease fee is based on appraisal information and stilt house leases previously approved by the Board of Trustees. The first annual payment will be due at lease signing and subsequent annual payments will be due on the first of January each year thereafter.

If this item is approved:

· Unauthorized structures will be brought under lease.
· Lessee will be responsible for installing a self-contained sewage composting system;
· Habitable structures damaged greater than 50 percent will not be allowed to be rebuilt and the remaining portions of the structure must be removed by the lessee or subject to removal at Lessee's expense;
· Structures and connecting docks must be maintained in good repair or subject to removal at Lessee's expense;
· Lessee may remove within 30 days of the execution of this lease agreement all exotic plants or the Lessor has the right but not the obligation to remove mentioned exotic plants;
· Lessee must maintain liability insurance. The policies must name the Lessee, Lessor and the State of Florida as co-insured; and
· The lease fees for the Board of Trustees' lands will generate approximately $643,670 over the 20-year term. If DSL administers the SFWMD leases, another $405,273, approximately, will be generated for deposit into the Internal Improvement Trust Fund.

In summary, the requested lease: (1) is in compliance with the requirements of section 253.03(7)(d), F.S.; (2) will safe guard against further expansion into Water Conservation Areas 2 and 3; and (3) will allow for the protection of the state's resources.

(See Attachment 4 submitted with the February 27, 2002 Agenda)

RECOMMEND APPROVAL