Item 1 Maxwell Family Partnership, Ltd. Option Agreement/Wekiva-Ocala Greenway CARL Project

REQUEST:  Consideration of an option agreement to acquire 88 acres within the Wekiva-Ocala Greenway CARL project from the Maxwell Family Partnership, Ltd.

COUNTY:  Lake

LOCATION: Section 36, Township 17 South, Range 27 East

CONSIDERATION:  $245,000

APPRAISED BY

REVIEW Goodman APPROVED PURCHASE OPTION

NO. PARCEL ACRES (08/27/97) VALUE PRICE DATE

808001 Maxwell 88 $260,000 $260,000 $245,000 180 days after

BOT approval

STAFF REMARKS: The Wekiva-Ocala Greenway CARL project is ranked number 7 on the CARL Priority Project List approved by the Board of Trustees on February 11, 1997, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. The project contains 67,269 acres, of which 31,966.17 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 35,214.83 acres or 52 percent of the project will remain to be acquired.

All mortgages and liens will be satisfied at the time of closing.  In the event the commitment for title insurance, to be obtained prior to closing, reveals any other encumbrances which may affect the value of the property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

A certified 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 springs, rivers, lakes, swamps, and uplands stretching north from Orlando to the Ocala National Forest are an important refuge for the Florida black bear, as well as other wildlife such as the bald eagle, swallow-tailed kite, Florida scrub jay and wading birds. The Wekiva-Ocala Greenway will protect these animals and the Wekiva and the St. Johns River basins by protecting natural corridors connecting Wekiva Springs State Park, Rock Springs Run State Reserve, the Lower Wekiva River State Preserve and Hontoon Island State Park with the Ocala National Forest. It will also provide the people of the booming Orlando area with a large, nearby natural area in which to enjoy camping, fishing, swimming, hiking, canoeing and other recreational pursuits.

This property will be managed by the Florida Department of Agriculture and Consumer Services, Division of Forestry, as part of the Seminole State Forest.

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

(See Attachment 1, Pages 1-37)

RECOMMEND APPROVAL

Board of Trustees

Agenda - May 12, 1998 Page Two

Item 2 Luscher Option Agreement/Rookery Bay CARL Project

REQUEST:  Consideration of an option agreement to acquire 0.47 acre within the Rookery Bay CARL project from Judith Luscher and Michael Luscher.

COUNTY:  Collier

LOCATION:  Section 10, Township 51 South, Range 26 East

CONSIDERATION:  $87,000

APPRAISED BY

REVIEW Bowen APPROVED PURCHASE OPTION

NO. PARCEL ACRES (04/10/95) VALUE PRICE DATE

808003 Luscher 0.47 $87,000 $87,000 $87,000 180 days

after BOT approval

STAFF REMARKS: The Rookery Bay CARL project is ranked number 16 on the CARL Priority Project List approved by the Board of Trustees on February 11, 1997, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. The project contains 13,482 acres, of which 11,197.44 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 2,284.09 acres or 17 percent of the project will remain to be acquired.

All mortgages and liens will be satisfied at the time of closing.  In the event the commitment for title insurance, to be obtained prior to closing, reveals any other encumbrances which may affect the value of the property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

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

Rookery Bay is an outstanding subtropical estuary in the fastest growing part of Florida. Its mangroves shelter important nesting colonies of water birds, and feed and protect many aquatic animals. These animals in turn, are the foundation of commercial and recreational fisheries. The Rookery Bay CARL project will protect the bay's water quality and its native plants and animals and will provide recreational opportunities to the people of southwest Florida. As an addition to the Rookery Bay National Estuarine Research Reserve, the project will also further coastal ecosystem research and environmental education.

This property will be managed by the Division of Marine Resources as part of the Rookery Bay National Estuarine Research Reserve.

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 1-19)

RECOMMEND APPROVAL

Board of Trustees

Agenda - May 12, 1998 Page Three

Item 3 Kniseley/Steele Purchase Agreements/Coupon Bight/Key Deer CARL Project

REQUEST: Consideration of two purchase agreements to acquire 0.704 acre within the Coupon Bight/Key Deer CARL project from J. Duncan Kniseley and Michael J. and Marilyn Steele.

COUNTY: Monroe

LOCATION: Sections 04 and 05, Township 66 South, Range 29 East

CONSIDERATION: $120,000

REVIEW NO.	PARCEL	ACRES	APPRAISED BY Marr (11/17/97)	APPROVED VALUE	PURCHASE PRICE	CLOSING DATE
808006	Kniseley / 5066	0.184	$30,000	$30,000		6 months
	Kniseley / 5067	0.184	$30,000	$30,000	$60,000	after
808007	Steele / 5609	0.168	$30,000	$30,000		BOT
	Steele / 5610	0.168	$30,000	$30,000	$60,000	approval
		0.704		$120,000	$120,000

STAFF REMARKS: The Coupon Bight/Key Deer CARL project is ranked number 2 on the CARL Mega-Multiparcel Project List approved by the Board of Trustees on February 11, 1997, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan.  This project contains 1,827 acres, of which 475.15 acres have been acquired or are under agreement to be acquired.  After the Board of Trustees approves this agreement, 1,351.15 acres or 74 percent of the project will remain to be acquired.

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

All mortgages and liens will be satisfied at the time of closing.  In the event the commitments for title insurance, to be obtained prior to closing, reveal any other encumbrances which may affect the value of the properties or the proposed management of the properties, staff will so advise the Board of Trustees prior to closing.

Certified surveys and title insurance policies will be provided and environmental site assessments may be provided by the purchaser prior to closing. A mass environmental site assessment was performed on this project and no contaminants were discovered. Prior to closing, the managing agency will perform site inspections and, as in prior purchases in this project, unless contaminants are found, a site specific environmental site assessment will not be performed.

The subtropical pine forests of rapidly developing Big Pine Key and the islands around it are the home of the endangered Key deer as well as of many Caribbean plants found nowhere else in the country. Rich coral reefs and other hardbottom communities flourish in the shallow water around the islands. The Coupon Bight/Key Deer CARL project will protect the remaining undeveloped land on Big Pine and No Name Keys, without which, the Key deer will not survive; protect the water quality of the Coupon Bight Aquatic Preserve and the other waters surrounding the islands; and provide the public an area to appreciate the unique natural world of this part of Florida.

These properties will be managed by the U.S. Fish and Wildlife Service as a part of the National Key Deer Refuge.

Board of Trustees

Agenda - May 12, 1998 Page Four

Item 3, cont.

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

(See Attachment 3, Pages 1-7)

RECOMMEND APPROVAL

Item 4 Palm Beach County Option Agreement/Juno Hills CARL Project

REQUEST:  Consideration of an option agreement to acquire two acres within the Juno Hills CARL project from Palm Beach County.

COUNTY:  Palm Beach

LOCATION:  Section 28, Township 41 South, Range 43 East

CONSIDERATION:  $82,500 (The Board of Trustees' 50 percent share of the County's purchase price of $165,000)

APPRAISED BY

REVIEW Lawson Banting APPROVED PURCHASE OPTION

NO. PARCEL ACRES (01/26/94) (01/24/94) VALUE PRICE DATE

808002 Fisher/13 2.00 $180,000 $170,000 $180,000 $82,500 180 days

after BOT

approval

STAFF REMARKS: The Juno Hills CARL project is ranked number 30 on the CARL Bargain/Shared Project List approved by the Board of Trustees on February 11, 1997, and is eligible for negotiation under the Division of State Lands' Land Acquisition Workplan. The project contains 440 acres, of which 337.5 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 100.5 acres or 23 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), The Nature Conservancy and Palm Beach County (County), the County purchased two acres within the Juno Hills CARL project from Harry H. Fisher on August 9, 1996, for $165,000. If this item is approved, the Board of Trustees will reimburse the County one-half of its purchase price or $82,500.

All mortgages and liens will be satisfied at the time of closing.  In the event the commitment for title insurance, to be obtained prior to closing, reveals any other encumbrances which may affect the value of the property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

A certified survey, a title insurance policy and an environmental site assessment will be provided by the seller prior to closing, with the purchaser reimbursing 50 percent of the seller's DSL approved costs of the survey, title insurance policy and environmental site assessment.

Growing cities have almost completely eliminated natural areas on the coast of southeast Florida. The Juno Hills CARL project will preserve one of the largest remnants of coastal

Board of Trustees

Agenda - May 12, 1998 Page Five

Item 4, cont.

scrub in Palm Beach County, protecting habitat critical to the survival of several rare plants like the four-petal pawpaw and animals such as the Florida scrub jay, and providing the public with a place to learn about and enjoy the original landscape of this urbanized area.

This property will be managed by the County, with the assistance of the town of Juno Beach, as a natural area, providing only passive recreational activities such as hiking, nature appreciation, photography and scientific research.

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

(See Attachment 4, Pages 1-29)

RECOMMEND APPROVAL

Item 5 Alachua Conservation Trust, Inc. Assignment of Option Agreement/Paynes Prairie Project

REQUEST: Consideration of (1) the acceptance of an assignment of an option agreement to acquire 6.90 acres within the Paynes Prairie Division of Recreation and Parks' Additions and Inholdings project from Alachua Conservation Trust, Inc.; and (2) a request to waive the requirement to provide legal access.

COUNTY: Alachua

LOCATION: Section 24, Township 10 South, Range 20 East

CONSIDERATION: $17,940 ($17,250 for the acquisition; $690 for the purchase of the option agreement)

APPRAISED BY

REVIEW Candler APPROVED PURCHASE OPTION

NO. PARCEL ACRES (06/07/96) VALUE PRICE DATE

808004 Downs/43 6.90 $19,000* $18,000 $17,250 180 days

after BOT

approval

* Value based on ingress/egress easement being granted to owner

STAFF REMARKS: The Paynes Prairie project has been identified on the Division of Recreation and Parks' Additions and Inholdings List. This agreement was negotiated by the Division of State Lands on behalf of the Division of Recreation and Parks under the State Parks Additions and Inholdings Preservation 2000 program. The project contains 3,495 acres, of which 231 acres have been acquired or under agreement to be acquired. After the Board of Trustees approves this agreement, 3,257.1 acres or 93 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 Alachua Conservation Trust, Inc., (ACT), ACT has acquired an option to purchase this 6.90-acre parcel from Eldridge Downes, IV. After this acquisition is approved, the Board of Trustees will acquire the option from ACT for $690, which represents agreed upon compensation to ACT for overhead associated with acquiring the option. The Board of

Board of Trustees

Agenda - May 12, 1998 Page Six

Item 5, cont.

Trustees may then exercise the option and purchase the property. The assignment of option agreement provides that payment to ACT 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.

At the time the option was executed the owner and staff believed that there was legal access from a public road, over a recorded easement, all the way to the subject property. While it is true that access to the property is provided by a recorded easement, it terminates at an abandoned rail corridor that is managed by the Office of Greenways and Trails (OGT) as part of its trail system. It has been the policy of OGT to grant property owners a perpetual non-exclusive easement over the existing abandoned rail corridor, if necessary, for access to property. OGT requires that an owner provide a survey, the cost of which, in this case, is estimated not to exceed $1,000. The appraised value of the subject property has been adjusted down to reflect this cost to cure. Since the property is an addition to the Paynes Prairie State Preserve, the creation of the easement, as a condition of closing with the Board of Trustees, is not necessary. Under the existing option agreement the seller is warranting legal access to the property. Staff recommends the contractual requirement for legal access be waived, and if the Board of Trustees approves this item, the contract will be amended accordingly.

All mortgages and liens will be satisfied at the time of closing. In the event the commitment for title insurance, to be obtained prior to closing, reveals any other encumbrances which may affect the value of the property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

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

The property will be managed by the Division of Recreation and Parks as an addition to the Paynes Prairie State Preserve.

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

(See Attachment 5, Pages 1-22)

RECOMMEND APPROVAL

Item 6 Nelson K. MacBroom, et al. Option Agreement/Homosassa Springs State Wildlife Park Project

REQUEST:  Consideration of an option agreement to acquire 2.08 acres within the Homosassa Springs State Wildlife Park Division of Recreation and Parks' Additions and Inholdings project from Nelson K. MacBroom, et al.

COUNTY:  Citrus

LOCATION:  Section 28, Township 19 South, Range 17 East

Board of Trustees

Agenda - May 12, 1998 Page Seven

Item 6, cont.

CONSIDERATION:  $360,000

APPRAISED BY

REVIEW Tolle APPROVED PURCHASE OPTION

NO. PARCEL ACRES (01/12/98) VALUE PRICE DATE

808005 MacBroom 2.08 $377,000 $377,000 $360,000 180 days after

BOT approval

STAFF REMARKS: The Homosassa Springs State Wildlife Park project has been identified on the Division of Recreation and Parks' Additions and Inholdings List. This agreement was negotiated by the Division of State Lands on behalf of the Division of Recreation and Parks (DRP) under the State Parks Additions and Inholdings Preservation 2000 program. The project contains 2.08 acres. After the Board of Trustees approves this agreement, this project will be complete.

All mortgages and liens will be satisfied at the time of closing.  In the event the commitment for title insurance, to be obtained prior to closing, reveals any other encumbrances which may affect the value of the property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

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

This property will be managed by DRP as an addition to the Homosassa Springs State Wildlife Park.

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 6, Pages 1-30)

RECOMMEND APPROVAL

Item 7 Hinson/Surgnier Option Agreements/Chipola River Greenway Greenways and Trails Project

REQUEST:  Consideration of two option agreements to acquire 177.5 acres within the Chipola River Greenway under the Preservation 2000 Florida Greenways and Trails program from R. L. Hinson, Jr. and Steven P. and Sally Ann Surgnier.

APPLICANT: Office of Greenways and Trails

COUNTY:  Jackson

LOCATION:  Sections 02, 10, 11 and 15, Township 04 North, Range 10 West

CONSIDERATION: $226,200

APPRAISED BY

REVIEW Griffith APPROVED PURCHASE OPTION

NO. PARCEL ACRES (11/13/97) VALUE PRICE DATE

808009 Hinson/1, 2 & 14 134.3 $176,000 $176,000 $176,000 180 days after

808010 Surgnier/9 43.2 $ 50,200 $ 50,200 $ 50,200 BOT approval

177.5 $226,200 $226,200 Board of Trustees

Agenda - May 12, 1998 Page Eight

Item 7, cont.

STAFF REMARKS: The Chipola River Greenway project is identified on the Florida Greenways and Trails program approved acquisition list. This agreement was negotiated by the Division of State Lands on behalf of the Office of Greenways and Trails under the Preservation 2000 Florida Greenways and Trails program. The project contains 606.4 acres, of which these are the first to be acquired. After the Board of Trustees approves these agreements, 428.9 acres or 71 percent of the project will remain to be acquired.

The Hinson parcel is improved with a small cabin that is estimated by the appraiser to have no value. Jackson County, the managing agency, is willing to manage the property with the improvement.

All mortgages and liens will be satisfied at the time of closing. In the event the commitments for title insurance, to be obtained prior to closing, reveal any other encumbrances which may affect the value of the properties or the proposed management of the properties, staff will so advise the Board of Trustees prior to closing.

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

These acquisitions will provide public access to the Chipola River for such recreational activities as paddling and fishing. Currently there is very little publicly owned property along the Chipola River. This project will also provide hiking trails and wildlife observation and could eventually connect to Florida Caverns State Park.

These properties will be managed by Jackson County and the City of Marianna as a recreational greenway.

These acquisitions are consistent with section 260.015, F.S., and section 187.201(10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 7, Pages 1-46)

RECOMMEND APPROVAL

Item 8 Eagles Nest Partnership Option Agreement/Etoniah/Cross Florida Greenway Greenways and Trails Project

REQUEST:  Consideration of an option agreement to acquire 418.51 acres within the Etoniah/Cross Florida Greenway under the Preservation 2000 Florida Greenways and Trails program from Eagles Nest Partnership.

APPLICANT: Office of Greenways and Trails

COUNTIES:  Citrus and Levy

LOCATION:  Sections 05, 07 and 08, Township 17 South, Range 17 East

CONSIDERATION: $1,410,000

Board of Trustees

Agenda - May 12, 1998 Page Nine

Item 8, cont.

APPRAISED BY

REVIEW Tobias Rogers APPROVED PURCHASE OPTION

NO. PARCEL ACRES (12/03/96) (11/14/96) VALUE PRICE DATE

808008 Eagles Nest 418.51 $1,480,000 $1,560,000 $1,560,000 $1,410,000 180 days

Parcels 1,2,3 after BOT

approval

STAFF REMARKS: The Etoniah/Cross Florida Greenway project is identified on the Florida Greenways and Trails program approved acquisition list. This agreement was negotiated by the Division of State Lands on behalf of the Office of Greenways and Trails (OGT) under the Preservation 2000 Florida Greenways and Trails program. The project contains 418.51 acres. After the Board of Trustees approves this agreement, this project will be complete.

Parcel 2 is improved with a small, wood-frame, 640 square-foot hunting lodge that is estimated by the appraisers to have no value. OGT, the managing agency, is willing to manage the property with the improvement.

All mortgages and liens will be satisfied at the time of closing. In the event the commitment for title insurance, to be obtained prior to closing, reveals any other encumbrances which may affect the value of the property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

A certified 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.

This acquisition will fill a gap in public ownership in the Cross Florida Greenway State Recreation and Conservation Area. This acquisition is important to realizing the management and recreational goals of the Cross Florida Greenway in the Inglis and Lake Rousseau area. Lands surrounding the proposed project are publicly owned and part of the Cross Florida Greenway. OGT has developed nature trails, a picnic area and a boat ramp in the area. This acquisition will allow OGT to expand these recreational opportunities and to manage this area in a more holistic manner.

This property will be managed by OGT as part of the Cross Florida Greenway State Recreation and Conservation Area.

This acquisition is consistent with section 260.015, F.S., and section 187.201(10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 8, Pages 1-33)

RECOMMEND APPROVAL

Item 9 Host Purchase Agreement/BOR/FSU

REQUEST: Consideration of a purchase agreement to acquire 0.14 acre for the benefit of the Florida Board of Regents and Florida State University from Bruce J. Host and Sandra C. Host.

COUNTY: Leon

APPLICANT: Florida State University

LOCATION: Section 35, Township 01 North, Range 01 West

Board of Trustees

Agenda - May 12, 1998 Page Ten

Item 9, cont.

CONSIDERATION: $150,000

APPRAISED BY

REVIEW CARLTON APPROVED PURCHASE CLOSING

NO. PARCEL ACRES (11/18/96) VALUE PRICE DATE

808011 205 0.14 $170,000 $170,000 $150,000 200 days after

BOT approval

STAFF REMARKS: This acquisition was negotiated by Florida State University (FSU). Funds for this parcel were appropriated by the Florida Legislature and are still available. On September 25, 1997, the Board of Trustees rejected a request to purchase this parcel for $170,000, stating that the purchase price was excessive in light of the fact that the seller purchased the property in 1990 for $65,500. The contract has since been renegotiated with a lower purchase price.

Improvements on this property consist of a 2,076 square-foot, one and one-half story frame building. The building was built in 1925 and completely renovated in 1990. The seller currently has the property leased but the lease will be terminated prior to or at closing. The structure will be removed as soon as FSU obtains all of the necessary permits, after which the area will be used for parking. Ultimately, the area is slated for new construction with FSU's future expansion.

All mortgages and liens will be satisfied at the time of the closing. In the event the commitment for title insurance, to be obtained prior to closing, reveals any other encumbrances which may affect the value of the property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

A certified survey will be provided by FSU. An environmental site assessment and a title insurance policy will be provided by the seller prior to closing. FSU will reimburse the seller's title insurance and environmental site assessment costs.

This parcel will be managed by FSU as a part of the existing campus through a lease to the Florida Board of Regents.

This acquisition is consistent with section 187.201(01), F.S., the Education section of the State Comprehensive Plan.

(See Attachment 9, Pages 1-23)

RECOMMEND APPROVAL

Item 10 Fourteen Option Agreements/Corkscrew Regional Ecosystem Watershed CARL Project

REQUEST: Consideration of authorization to acquire 100 percent interest in 72.50 acres within the Corkscrew Regional Ecosystem Watershed CARL project from 14 separate owners.

COUNTY: Lee

LOCATION: Sections 24, 25, 35 and 36, Township 47 South, Range 26 East

CONSIDERATION: $127,500

Board of Trustees

Agenda - May 12, 1998 Page Eleven

Item 10, cont.

STAFF REMARKS: The Corkscrew Regional Ecosystem Watershed (CREW) CARL project is ranked number 8 on the CARL Bargain\Shared Project List approved by the Board of Trustees on February 11, 1997, and qualifies for purchase under the Division of State Lands' Land Acquisition Workplan. The project contains 59,008 acres, of which 20,055 have been acquired by the South Florida Water Management District (District) and Lee County, and 360 acres are under contract to the Board of Trustees. After the Board of Trustees approves this agreement, 38,520.50 acres or 65 percent of this project will remain to be acquired.

When CREW was added to the CARL list in 1991, a limit was placed on the CARL involvement to encourage local participation in the project. The project was initially planned to be a four party project with equal participation by Lee and Collier Counties, the District and the Board of Trustees. To encourage this participation, the Land Acquisition Advisory Council (LAAC) placed both a geographical and financial restriction on the CARL participation in the project. Based on the fact that the Board of Trustees' share of the overall purchase was to be 25 percent and the initial project cost estimate was $40 million, a $10 million "cap" was imposed and acquisition efforts were limited to the Camp Keis Strand Corridor.

While both Lee County and the District began acquiring land within the project, participation by the Division of State Lands and Collier County was stalled. In the CARL acquisition area (Camp Keis Strand), the Collier family was the largest owner. They were pursuing an exchange with the federal government and were unwilling to consider a sale to the Board of Trustees while these efforts were underway. Collier County's bond referendum did not pass and they have been unable to contribute to the project.

On November 20, 1992, the LAAC modified the project design to remove the geographical restriction (Camp Keis Strand) but maintained the $10 million cap. The LAAC also limited the CARL match to acquisitions made by the District after the date of the LAAC meeting. Following this decision, staff began working with the District to identify lands purchased that would qualify for the CARL match. Various options to pursue cooperative purchases were considered. 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 ownership's 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. At the time the original agreement was entered into, the LAAC imposed cap on funding was still in effect. Since the estimated cost of the parcels remaining to be acquired in the project exceeded $20 million, a 50/50 match on each succeeding acquisition would exhaust the Board of Trustees' funding limit of $10 million before the project acquisition was completed; therefore, a 50/50 agreement was recommended and approved.

On October 30, 1995, the LAAC 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 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 has provided documentation, acceptable to the Division of State Lands, establishing the District's expenditure in this project. Following the Board of Trustees authorization of these Board of Trustees

Agenda - May 12, 1998 Page Twelve

Item 10, cont.

acquisitions, $652,835 worth of land will have been purchased by the Board of Trustees towards matching the District's purchases in this project. The remaining matching balance will be $12,707,165.

The District has acquired fourteen options to purchase the parcels, at 100 percent of the appraised values, from The Nature Conservancy (TNC). Pursuant to the terms of the amended acquisition agreement, the District shall be reimbursed for all costs associated with acquiring the fourteen properties, including pre-acquisition and closing related costs. The Board of Trustees' purchase price will be 100 percent of the contract price negotiated by the District plus 100 percent of the cost incurred in the purchase of the property. Title to the property acquired will vest in the Board of Trustees.

As provided for in the amended acquisition agreement, the Governing Board of the District adopted multiple resolutions requesting the Board of Trustees' share of the purchase price for the fourteen parcels, reimbursement of 100 percent of its pre-acquisition and reimbursement of 100 percent of its closing costs. Pursuant to the amended acquisition agreement, the pre-acquisition and closing costs will be reimbursed from CARL incidental expense funds. TNC's acquisition fee is considered a District staffing cost and is not being recommended for reimbursement. The District's resolutions contain all of the assurances required by the amended acquisition agreement.

The CREW CARL parcels will be managed by the District as a conservation and preservation area with passive public use.

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 10, Pages 1-14)

RECOMMEND APPROVAL

Item 11 Charles P. Sneeringer Conveyance

REQUEST: Consideration of a request to convey 0.83 acres, more or less, to Charles P. Sneeringer.

COUNTY: Alachua

Deed No. 30003

APPLICANT: Charles P. Sneeringer

LOCATION: Section 13, Township 10 South, Range 20 East

CONSIDERATION: $1,700

STAFF REMARKS: Pursuant to a multi-party acquisition agreement entered into between the Division of State Lands (DSL), Alachua Conservation Trust (ACT) and the Trust for Public Land (TPL), ACT and TPL obtained an option to purchase 595.97 acres within the Paynes Prairie CARL project from Marjabrena Enterprises, Inc. (MEI). The Board of Trustees acquired the option in 1992 from ACT and TPL and purchased the property. DSL was

Board of Trustees

Agenda - May 12, 1998 Page Thirteen

Item 11, cont.

subsequently notified by an attorney representing Carlton J. Sneeringer that a portion of the property purchased from MEI included an estimated 1.6 acres owned by Mr. Sneeringer. DSL's Bureau of Survey and Mapping confirmed the error. The area in question is a portion of Lot 4, south of State Road 20. Mr. Sneeringer's interest in the property derives from a 1993 quit claim deed. The error was the result of a survey and a metes and bounds description that did not exclude any lands located in Lot 4.

On September 27, 1995, DSL contacted Alachua County Abstract Company as the agent of Commonwealth Land Title Insurance Company which had provided title insurance to the Board of Trustees at the time of the original purchase. The title company agreed that an error had occurred and recommended the parcel be deeded to Mr. Sneeringer. The title company also agreed to pay for a survey of the area to be deeded to Mr. Sneeringer and to reimburse the state for the purchase price of the parcel. The survey reflected an acreage of 0.83 acres. A value was derived by dividing the purchase price ($1,222,000) by the final surveyed acreage of the acquisition (652.98 acres) to obtain a per acre value of $1,871.42. This figure, multiplied times 0.83 acres, equals $1,553.27, which was negotiated to a final compensatory amount of $1,700 to be paid by the aforesaid title company.

The Division of Recreation and Parks, as the manager of the parcel, concurs with this action. A partial release of lease will be executed concurrent with the date of conveyance.

Carlton J. Sneeringer passed away in 1996. The property will be deeded to Charles P. Sneeringer, as his sole beneficiary. Mr. Sneeringer has agreed to release his tort liability claim with the Department of Insurance if he is deeded the property.

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 land conveyances are not subject to the local government planning process.

(See Attachment 11, Pages 1-28)

RECOMMEND APPROVAL

Item 12 Hutchinson Island/Blind Creek CARL Project Acquisition/Managing Agency Designation/Management Policy Statement Confirmation

DEFERRED FROM THE APRIL 28, 1998 AGENDA

REQUEST: Consideration of (1) authorization to acquire an undivided 67 percent interest in 408.63 acres within the Hutchinson Island/Blind Creek CARL project from multiple owners; (2) designation of St. Lucie County as managing agency; and (3) confirmation of the management policy statement.

COUNTY: St. Lucie

LOCATION: Sections 04, 05, 08 and 09, Township 36 South, Range 41 East

CONSIDERATION: $5,096,750 (The Board of Trustees' 47.5 percent share of the total purchase price of $10,730,000)

Board of Trustees

Agenda - May 12, 1998 Page Fourteen

Item 12, cont.

STAFF REMARKS: The Hutchinson Island/Blind Creek CARL project is ranked number 6 on the CARL Bargain\Shared Project List approved by the Board of Trustees on February 11, 1997, and is eligible for purchase under the Division of State Lands' Land Acquisition Workplan. The project contains 408.63 acres (previously shown as 352 acres per erroneous property tax card information). After the Board of Trustees approves this agreement, the project will be complete.

On January 21, 1998, the Board of Trustees authorized staff to enter into an acquisition agreement with the South Florida Water Management District (District) and St. Lucie County to acquire multiple ownerships located within the Hutchinson Island/Blind Creek CARL project in accordance with section 259.041(16), F.S., utilizing the procedures set out in section 373.139, F.S.

The District contracted to purchase each ownership at 100 percent of the appraised value. This project's funding involves a federal grant through the U.S. Fish and Wildlife Service. The required federal acquisition procedures obligate the District to offer the full appraised value and pay all closing costs. The Board of Trustees' purchase price will be 47.5 percent of the contract price plus 47.5 percent of the costs incurred in the purchase of the property. Pursuant to the terms of the acquisition agreement, the District shall be reimbursed 47.5 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 the District owning a 33 percent undivided interest and the Board of Trustees owning a 67 percent undivided interest.

As provided for in the acquisition agreement, on April 16, 1998, the Governing Board of the District adopted Resolutions No. 98-32 and No. 98-34 requesting the Board of Trustees' share of the purchase price for all parcels, reimbursement of 47.5 percent of its pre-acquisition costs and reimbursement of 47.5 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.

Hutchinson Island is a rapidly developing barrier island on Florida's southeast coast. The Hutchinson Island/Blind Creek CARL project will conserve and restore some of the last open land on the island around Fort Pierce, preserving nesting beaches for several kinds of endangered sea turtles, protecting a tropical hammock and mangrove swamp, and providing a coastal recreation area for the public.

Pursuant to section 259.032(9)(b)2., F.S., staff recommends that the Board of Trustees designate St. Lucie County as the managing agency for this site. It will be managed as a park.

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 1997 CARL Annual Report adopted by the Board

of Trustees on February 11, 1997. Staff recommends that the Board of Trustees confirm the management policy statement as written:

The primary goals of management of the Hutchinson Island (Blind Creek) CARL project are: to conserve and protect significant habitat for native species or endangered and threatened species; to conserve, protect, manage or restore

Board of Trustees

Agenda - May 12, 1998 Page Fifteen

Item 12, cont.

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; and to provide areas, including recreational trails, for natural-resource-based recreation.

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

(See Attachment 5, Pages 1-37, submitted with the April 28, 1998 agenda)

RECOMMEND APPROVAL

Item 13 Department of State/City of Tampa Sublease/City of Tampa/Centro Ybor Partners Subsublease/Waiver of Competitive Bid Requirements

REQUEST: Consideration of a request to (1) determine that a 65-year term for a lease, sublease, and subsublease agreement for the El Centro Espanol de Ybor Building is in the public interest; (2) issue Amendment No. 1 to Lease No. 3928 to the Department of State; (3) approve a 65-year sublease between the Department of State and the City of Tampa; (4) approve a 65-year subsublease between the City of Tampa and Centro Ybor Partners; (5) approve a standard form tenant lease; and (6) waive the competitive bid requirements of section 18-2.018(3), F.A.C.,

COUNTY: Hillsborough

Lease No. 3928

APPLICANT: Department of State, the City of Tampa, and Centro Ybor Partners

LOCATION: Section 18, Township 29 South, Range 19 East

CONSIDERATION: Restoration of the El Centro Espanol de Ybor Building

STAFF REMARKS: In 1990, The Board of Trustees acquired 0.47 acre, more or less, as part of the Ybor City Addition CARL project. The property included the El Centro Espanol de Ybor Building (El Centro), built in 1912, which housed Ybor City's oldest Latin mutual aid society and social club. The property is currently leased to the Department of State, but the building is vacant.

In 1995, the City of Tampa and the Community Redevelopment Agency of the City of Tampa (collectively, the "City") issued a request for proposals for a study of the Historic Ybor City area for the development of a major, mixed use, urban, entertainment/retail/tourist oriented project of at least 150,000 square feet. The applicant selected by the City was to prepare a study of the target area to identify major opportunities and constraints and future development options. The area of study for the RFP included the state's land.

Centro Ybor Partners (CYP) was selected by the city to prepare a more detailed development proposal. CYP proposes to restore the El Centro's ballroom to a full service sit down restaurant. The historic wrought iron balconies will be restored to allow restaurant patrons to dine on terraces overlooking 7th Avenue and a new plaza. The cantina will be restored as a single retail shop or the ground level of a multi-level bistro cafe. The theatre will be renovated

Board of Trustees

Agenda - May 12, 1998 Page Sixteen

Item 13, cont.

as a sit down restaurant and/or live entertainment venue. A small portion of the ground level under the historic balcony and stage may be partitioned for retail use. In order to preserve the integrity of the space, the stage proscenium and the theatre boxes will be preserved and restored. The balcony and backstage areas will remind patrons that this was an entertainment venue from a different era of Ybor City's history.

CYP will provide the funds necessary to restore the structure. In exchange, it will have the right to lease the interior spaces for retail use and restaurants. CYP estimates that it will take 25 years beyond the 25-year term of its initial long term financing to recoup its investment to restore the El Centro building. The Department of State has determined that it will not require a percentage of the revenues generated from the subsublease because its primary interest is in getting the historic structure restored. CYP will also be incurring a great deal of risk by investing in a project that will not provide a return until the last 15 years of its subsublease.

To move forward with development, the City of Tampa will sublease the structure from the Department of State. The subsublease between the City of Tampa and CYP, and a standard form tenant agreement, require approval by the Board of Trustees. CYP has requested a subsublease with a term of 65 years. Subsection 18-2.018(3), F.A.C., limits the term of any lease or sublease to 50 years unless it is determined by the Board of Trustees to be in the public interest. In the interest of getting the historic structure restored, the Department of State recommends the extended term. DSL staff concurs with the Department of State's recommendation. The lease agreement between the Board of Trustees and the Department of State will be amended to provide for the extended term, and the sublease between the Department of State and the City of Tampa will also be for a term of 65 years.

The City of Tampa has requested that the provision for implementing Best Management Practices (BMP's), paragraph 15 of Lease No. 3928 between the Board of Trustees and the Department of State, be deleted. BMP's address silvicultural and agricultural practices and are not applicable to urban development. Paragraph 12 of Lease No. 3928 will also be amended to allow the Department of State to grant utility easements which are necessary to service authorized facilities located within the leased premises.

In the event of destruction or substantial damage to the El Centro, the Department of State has requested that its leasehold interest in the property terminate and the sublease to the City of Tampa attorn to the Board of Trustees. Lease No. 3928 is being amended to include a casualty damage provision which addresses what steps the Department of State will take in making its determination that the El Centro has been destroyed or substantially damaged.

Pursuant to section 18-2.018, 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 City utilized a Request For Proposal (RFP) process open to the public to solicit proposals for its study. Staff recommends that the Board of Trustees waive the competitive bid process because the RFP process is more appropriate for the type of development being proposed. Under the RFP process, the City was able to elaborate on its scope of work and to obtain more detailed proposals than would otherwise have been received through a bid process. The waiver is consistent with section 267(3)(i), F.S., which also provides for an exemption from the competitive bid requirements of chapter 255, F.S., Public Property and Publicly Owned Buildings, and chapter 287, F.S., Procurement of Personal Property and Services, for expenditures by the Department of State, Division of Historical Resources (DHR) to protect or preserve historical properties leased by the DHR from the Board of Trustees, such as the El Centro.

Board of Trustees

Agenda - May 12, 1998 Page Seventeen

Item 13, cont.

State agencies and landowners within 500 feet of the property were notified of the proposed action by letter dated March 27, 1998. No letters of request for the land, or objections to the proposed action, have been received. However, Mr. Andrew Argintar, the owner of Lot 9 to the south and west of, but not adjacent to, the state property, sent a notice to the DSL claiming a prescriptive easement across Lot 8 based on his use of the property for parking and access for a period of 25 years. Mr. Argintar's claim has not been established by a court of law. DSL will put CYP's proposed lender on notice that Mr. Argintar may pursue his claim in court.

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 the City of Tampa Planning & Management Department.

(See Attachment 13, Pages 1-134)

RECOMMEND APPROVAL

Item 14 Clay County Port, Inc. Quitclaim/Easement

DEFERRED FROM THE APRIL 28, 1998 AGENDA

REQUEST: Consideration of a proposal to issue a quitclaim deed to 217.62 acres, more or less, of dredged submerged lands surrounding twelve piers and to issue a maintenance dredging easement in return for the applicant relinquishing its claim to 137.80 acres, more or less, of dredged submerged lands beyond the piers by execution of a quitclaim deed to the Board of Trustees.

COUNTY: Clay

LOCATION: Section 38, Township 06 South, Range 26 East

APPLICANT: Clay County Port, Inc.

STAFF REMARKS: The applicant has filed an application for a disclaimer to 355.45 acres, more or less, of submerged lands based on its allegation that dredging of said lands constituted "permanent improvements" pursuant to the Butler Act (Chapter 8537, Acts of 1921) and section 253.129, F.S. The area for which the disclaimer is being sought consists of dredged areas surrounding twelve piers (Parcel A) as well as a dredged area lying between Parcel A and the channel of the St. Johns River (Parcel B). The piers were built and the dredging was conducted by the U. S. Navy prior to 1951 and the area has remained essentially unchanged since that time. The Board of Trustees has previously issued a disclaimer for the land beneath the piers.

Whether dredging constitutes a "permanent improvement" under the Butler Act has not been finally resolved by the courts. Staff believes that dredging, in general, does not constitute a "permanent improvement" under the Butler Act. Staff is uncertain how the courts would treat the dredging involved in this application.

The applicant has offered to withdraw its Butler Act application and to give up its claim to Parcel B (except for an easement for future maintenance dredging) if the Board of Trustees will issue a quitclaim deed to Parcel A. Staff believes this offer should be accepted. If the Board Board of Trustees

Agenda - May 12, 1998 Page Eighteen

Item 14, cont.

of Trustees denies the application, it could lose Parcel B as well as Parcel A in subsequent litigation. By accepting the applicant's offer, the Board of Trustees will retain title to Parcel B and avoid the cost of litigation.

This would be accomplished by the applicant granting a quitclaim deed for Parcel B to the Board of Trustees, the Board of Trustees granting a quitclaim deed for Parcel A to the applicant, and the Board of Trustees granting an easement for maintenance dredging of Parcel B to the applicant. The easement shall be for the use and benefit of and appurtenant to Parcel A and the previously disclaimed submerged lands beneath the piers of the Port described in Disclaimer No. 29825(4678-10). Forms of those instruments shall be substantially as those attached.

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

(See Attachment 14, Pages 1-32)

RECOMMEND APPROVAL

Item 15 Policy for Mitigation/Mitigation Banking on State-Owned Lands

DEFERRED FROM THE FEBRUARY 24, 1998 AGENDA

REQUEST: (l) Approval of policy regarding the use of Board of Trustees' lands for project mitigation and mitigation banking; and (2) authorization to proceed to rulemaking.

LOCATION: Statewide

STAFF REMARKS: On February 25, 1997, the Board of Trustees reviewed a draft policy regarding the use of Board of Trustees' lands for mitigation and mitigation banking and authorized a one-year moratorium on any further mitigation banks. The February 25, 1997 action allowed project mitigation to be continued, if the long term management needs were addressed. A copy of that agenda item is attached. The year allowed time for staff to further evaluate a number of issues and to present the draft policy at public workshops. Staff held five public workshops in July, l997 in Tallahassee, Jacksonville, West Palm Beach, Tampa and Orlando, where additional issues and concerns were identified. Representatives of business, environmental groups and other government agencies attended. A summary of the various comments received to date is attached. Staff also met with managers of Board of Trustees' lands, the Land Acquisition and Management Advisory Council (LAMAC), the water management districts (WMD) staffs, and with other entities involved with mitigation banking or public lands management. Staff also presented the issue at a workshop on mitigation banking in Ft. Lauderdale which was attended by more than 100 people and circulated an early draft of this item to more than l50 persons.

The major issues, identified by the Board of Trustees for further evaluation, or from public comment, are noted below:

1. Are there Board of Trustees' lands which would be appropriate for mitigation banks?

2. Under what conditions, based upon our experience with Little Pine Island and other private mitigation activities, would project mitigation or mitigation banking be recommended, and should these activities be authorized on Board of Trustees' lands?

Board of Trustees

Agenda - May 12, 1998 Page Nineteen

Item 15, cont.

3. What additional financial safeguards should be recommended for mitigation banking?

4. Does the use of Board of Trustees' lands for mitigation support or encourage wetlands destruction?

5. Will the use of Board of Trustees' lands result in a reduction of public support for land management activities?

6. Will the use of Board of Trustees' lands reduce the amount of private lands which would otherwise be protected?

7. Does the use of Board of Trustees' lands result in a loss of net environmental benefit?

8. What fees should be charged for the use of Board of Trustees' lands for either project mitigation or mitigation banking?

These issues are discussed below.

Issue l. There are many unfunded restoration needs on Board of Trustees' lands. There are more opportunities for project mitigation because many of the Board of Trustees' restoration needs involve smaller, discrete projects or there is not sufficient market for a mitigation bank. There are also opportunities for mitigation banks, though fewer in number, for the larger scale restoration needs. An inventory of restoration needs on managed Board of Trustees' lands has been conducted and currently identifies 350 projects on l22 areas managed by the Division of Recreation and Parks, the Division of Marine Resources, the Florida Game and Fresh Water Fish Commission, Division of Wildlife and the Department of Agriculture and Consumer Affairs, Division of Forestry. These projects have been mapped in a GIS database and represent over 237,500 acres of proposed restoration projects on these managed areas. A subset of these sites may be suitable as mitigation banks.

In order to better understand the potential for mitigation banks on Board of Trustees' lands, staff conducted a preliminary evaluation of six managed sites identified in the inventory as possible candidates for mitigation banks: Port Bougainville (Key Largo State Botanical Site), Tosohatchee State Reserve, Kissimmee Prairie, Tomoka State Park, Paynes Prairie State Preserve and Estero Bay State Buffer Preserve. The restoration needs at Port Bougainville and Tosohatchee are being completed through other means. The other four sites are more likely candidates though additional analysis might indicate that they are unsuitable. For example, the Kissimmee Prairie site is in an area which has low development activity and likely renders the site not economically viable as a mitigation bank. The Tomoka and Paynes Prairie sites are in high development areas but the cost of the restoration relative to the potential return might make these sites not economically viable as mitigation banks. The Estero Bay State Buffer Preserve has potential but there may be sufficient mitigation alternatives available in that basin. A further analysis of any potential site would be conducted before presentation for conceptual approval by the Board of Trustees. At this time, the only site that staff is prepared to recommend as a potential bank is the site along the St. Johns River which has already been reviewed by the Board of Trustees.

Issue 2. Construction of the first of seven phases at the Little Pine Island Mitigation Bank is almost complete and the second phase has just been started. The restoration project appears to be quite successful and has proved to be an effective and efficient means of accomplishing land management restoration needs. As described in more detail in Exhibit l, only a few credits have been sold to date and we have learned that:

a) continuous dialogue between the staff processing permit applications and the bank regulators is necessary to ensure that credits and service area are assigned and then used appropriately, both in terms of functional offset and availability of credits;

b) regulatory oversight and close coordination with land management staff is crucial in the construction and implementation phases to ensure that work is done in accordance with permit and to allow mid-course corrections that are acceptable to both entities;

Board of Trustees

Agenda - May 12, 1998 Page Twenty

Item 15, cont.

c) the ledger and database system established to track credits is effective and should help prevent fraudulent use of credits;

d) careful review of cost estimates on construction and management activities is important. Regulatory amendments have been proposed to require that these estimates be certified;

e) other regulatory amendments are needed, and have been proposed, to allow the Board of Trustees to conceptually approve potential mitigation banks before resources are spent in permitting and to clarify the type of encumbrance needed to ensure long term management of the mitigation project;

f) credit and service area decisions are determined through the regulatory process, however, the Board of Trustees can influence these decisions and can limit, but not expand, the use of credits or the extent of the service area; and

g) mitigation banks on Board of Trustees' lands can be an efficient and productive means of accomplishing restoration work.

Issue 3. Financial responsibility forms have been developed and proposed as amendments to the regulatory rules. These are based upon financial responsibility requirements used for existing programs in the Department of Environmental Protection (DEP) such as storage tanks, hazardous waste, and solid waste closures. Standardization of these financial mechanisms will make application review more efficient. Final adoption of regulatory changes is expected by July, l998.

Issue 4. Some persons have commented that mitigation and mitigation banking undermines wetland protection and makes wetland destruction easier. Mitigation as a component of the regulatory process has been authorized by the legislature and safeguards are provided by the regulatory process. These include requirements that wetland impacts must be minimized or avoided to the greatest extent practical, prior to mitigation. The rules also provide that any mitigation must offset otherwise unpermittable losses of wetland functions. The use of Board of Trustees' lands, or any other public lands, for these activities does not alter nor weaken the regulatory requirements. Mitigation banking has been designed to address the shortcomings of project mitigation and provides certain advantages over other forms of mitigation such as the requirement that mitigation be done in advance of impacts and financial safeguards to ensure the construction and long term management of the mitigation project.

Issue 5. There is a recognition, as supported by passage of chapter 97-164, F.S., that there are not sufficient funds available to support public land management. This law directs managers to consider opportunities to support their programs through public/private partnerships and allows revenues derived from these activities to be segregated into trust funds for management of land. Mitigation banking may be a more desirable use of Board of Trustees' land than other potential revenue-generating activities.

Issue 6. The decision to use Board of Trustees' lands can and should be evaluated in a systems context. In some cases, public lands may provide a more effective and sustainable mitigation option than the use of private lands because the public lands are managed and because they are larger and closer to other lands of regional significance. On-site mitigation still is a preferred option in the regulatory rules. The use of Board of Trustees' lands would only be an option, not a requirement, and would only be available if the land management activity is consistent with the mitigation requirements of chapter 373, F.S.

Issue 7. Mitigation is designed to create improvement in one area as an offset for impacts at another site. The use of Board of Trustees' lands neither alters nor weakens the regulatory offsetting standard. Mitigation on Board of Trustees' lands would only be authorized if the

Board of Trustees

Agenda - May 12, 1998 Page Twenty-one

Item 15, cont.

land management need was not already being met through other means. Allowing mitigation on Board of Trustees' lands would avoid continued loss and accomplish something that was not otherwise being accomplished. In instances where revenues are being generated from these activities, the additional revenues would provide opportunities for more land management improvements - a net gain.

Many public lands, including Board of Trustees' lands, need ecological restoration. While these lands are protected through public ownership and many are in a preservation status, they must be restored or enhanced. Restoration needs on managed uplands and submerged lands have been identified in management plans and in the inventory that has been developed. There are also restoration needs on submerged lands which are not actively managed. These latter needs have been identified through other resource protection programs such as the Surface Water Improvement Management Act (SWIM). There are public funds dedicated to implementing many of the above identified restoration objectives; however, the needs are greater than the available resources. Where these restoration needs are consistent with mitigation requirements of chapter 373, F.S., allowing mitigation on Board of Trustees' lands could provide an additional tool to accomplish activities which are not otherwise funded and is consistent with chapter 97­164, F.S., which encourages land managers to consider public/private partnerships and revenue-generating activities to accomplish land management objectives. Authorization for these activities is being considered because it could allow unfunded management objectives to be implemented and it has the potential to raise revenues.

During the development of this policy item, concerns regarding the pre-sale, sale, and transfer of credits from mitigation banks were identified. The specific concerns relate to the pre-release sale of options and the secondary market associated with these credits. Staff began evaluating these concerns and realized that many of the concerns are beyond the scope of Chapter 373 and the expertise of DEP. These issues require further evaluation and the involvement of other entities. Consequently, DEP has requested the House and Senate to consider these issues as the subject of an interim project. If the House or Senate does not conduct this study, DEP will take the lead to coordinate further discussions on this subject. Upon completion of this review, staff will return, if needed, to the Board of Trustees with recommendations for additional rule changes.

As noted above, there are potential concerns and potential advantages which may result from this use of Board of Trustees' lands. A more detailed discussion of the concerns is included in Exhibits 2 and 3. Staff believes that conditions can be established to ensure the integrity of our resource protection efforts and recommends that project mitigation and mitigation banking be authorized with the conditions noted below:

RECOMMENDATIONS FOR PROJECT MITIGATION

(Authorization to use Board of Trustees' lands would be delegated to staff consistent with the existing delegations.)

1. Continue to authorize project mitigation on Board of Trustees' lands, provided:

a) the mitigation project implements an identified restoration objective and the mitigation design has been approved by staff. For actively managed lands, the restoration needs must be identified in an approved management plan and the land manager must approve the mitigation design;

b) the activity is consistent with statutory, bond, or deed restrictions;

c) regulatory and proprietary oversight of the restoration project is available;

Board of Trustees

Agenda - May 12, 1998 Page Twenty-two

Item 15, cont.

d) the mitigation design will be self­sustaining given routine maintenance;

e) the lands will be managed in a preservation status, consistent with the mitigation banking permit, which will assure long term sustainability of the mitigation project;

f) funding for the needed restoration is not available at the time that the site is considered for a mitigation project. In the event that funding is available and is being replaced through a mitigation project, the mitigation project will be considered if the existing funding can be and is re­directed toward another land management objective;

g) that any site proposed for mitigation be evaluated to determine if the restoration need is the result of an unauthorized use of Board of Trustees' lands, and if so, whether enforcement is a viable option to address the restoration objective;

h) any revenues derived from this use are distributed to the land management entity and deposited into a trust fund for other land management activities; and

i) the long term management needs for the mitigation project are identified and are funded by the impact applicant.

These activities may be authorized by staff, via a letter of consent, use agreement or contract, depending upon the extent of the long term management needs. For these projects, staff recommends that fees be waived. However, reimbursement for costs associated with processing and oversight may be negotiated. Staff believes that the restoration work being accomplished is adequate compensation for the use of the land and is consistent with existing rules and policies regarding other fee­waived activities.

RECOMMENDATIONS FOR MITIGATION BANKING

(Authorization to use Board of Trustees' lands would be reserved to the Board of Trustees consistent with existing rules.)

Authorize mitigation banking, provided:

a) the mitigation project implements an identified restoration objective and the mitigation design has been approved by staff. For actively managed lands, the restoration needs must be reflected in an approved management plan and the mitigation design must be approved by the land manager;

b) the activity is consistent with statutory, bond, or deed restrictions;

c) regulatory and proprietary oversight of the mitigation banking project is available;

d) the mitigation design will be self­sustaining with routine maintenance;

e) the lands will be managed in a preservation status, consistent with the mitigation banking permit which will assure long term sustainability of the mitigation project;

f) funding for the needed restoration is not available at the time that the site is presented as a request for proposal. In the event that funding is available and is being replaced through a mitigation bank project, the mitigation bank project will be considered if the existing funding can be and is re­directed toward another land management objective;

Board of Trustees

Agenda - May 12, 1998 Page Twenty-three

Item 15, cont.

g) any site identified as a potential bank be evaluated to determine whether the restoration needs are related to an unauthorized use of Board of Trustees' lands, and if so, whether enforcement is a viable option to achieve the restoration objective;

h) revenues derived from the use of the lands and credit sales are distributed to the land management entity and deposited into a trust fund for other land management activities;

i) proposals are competitively processed through a request for proposal (RFP);

j) equitable compensation, which may include the costs for project development and oversight, is negotiated. The Board of Trustees reserves the right to reject any and all proposals and may waive fees in relation to the degree of public benefit resulting from the project;

k) the proposal is consistent with the proposed amendments to chapter 62­342, F.A.C., now being processed. If those amendments have not been codified at the time a site is presented to the Board of Trustees for final approval, staff recommends that the application be withdrawn unless the applicant chooses to comply with the proposed changes, notwithstanding the fact that the amendments have not yet been adopted as rules; and

l) the Board of Trustees gives conceptual and final approval.

A specific instrument for mitigation banks will be developed by staff.

If the Board of Trustees approves staff recommendations, staff will proceed to rulemaking. In the interim, staff recommends that proposals to utilize Board of Trustees' lands for project mitigation or mitigation banking be allowed, provided they are consistent with the conditions noted.

(See Attachment 15, Pages 1-24)