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1 AGENDA BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND OCTOBER 10, 2013 Attachments to the items below can be viewed at the following link: Item 1 Sea Hag Marina, Inc./Norwood Recommended Consolidated Intent/Lease REQUEST: Consideration of an application for (1) renewal and modification of a ten-year sovereignty submerged lands lease to increase the preempted area from 43,124 square feet to 67,524 square feet, more or less, for a 90-slip commercial docking facility; (2) authorization for the severance of 1,000 cubic yards of sovereignty material; (3) authorization for the repair of 590 linear feet of an existing vertical concrete bulkhead at the approximate mean high water line; and (4) authorization for the placement of 98 cubic yards of riprap. APPLICANTS: Sea Hag Marina, Inc., and Charles and Danielle Norwood Lease No Application No EI LOCATION: 322 Riverside Drive, Steinhatchee Steinhatchee River, Taylor County CONSIDERATION: $9,952.90, representing (1) $7, as the initial annual lease fee computed at the base rate of $ per square foot, discounted 30 percent because a minimum of 90 percent of the slips are open to the public for rent on a first-come, first-served basis, pursuant to rule (1)(b)2, F.A.C.; (2) $ as the one-time 25 percent surcharge payment for the additional area, pursuant to rule (1)(b)3, F.A.C.; and (3) $1,250 for the severance of sovereignty material computed at the rate of $1.25 per cubic yard, pursuant to rule (3)(a)3, F.A.C. Sales tax and county discretionary sales surtax will be assessed pursuant to sections and , F.S., if applicable. The lease fee shall be adjusted based on six percent of the annual income if it proves to be greater than the fee computed at the base rate, pursuant to rule (1)(a)1, F.A.C. STAFF REMARKS: In accordance with rules adopted pursuant to sections (2) and (2), F.S., this "Recommended Consolidated Notice" 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. The project is required to demonstrate that it is not contrary to the public interest, pursuant to Article X, Section 11 of the Florida Constitution, chapter 253, F.S., and rule (1)(a), F.A.C. The applicants have provided reasonable assurance that the proposal will maintain essentially natural conditions; will not significantly impact fish and wildlife and other natural resources, including public recreation and navigation; is consistent with the goals and objectives of the Conceptual State Lands Management Plan ; is consistent with the local government s comprehensive plan; and will not interfere with the riparian rights of adjacent property owners.

2 Page Two Item 1, cont. Therefore, the Department of Environmental Protection (DEP) is of the opinion that the proposal is not contrary to the public interest and otherwise meets all applicable requirements for a proprietary authorization to use sovereignty submerged lands. Background On April 7, 1997, under delegation of authority, DEP executed a lease for a five-year term from September 1996 through September The lease was issued to Claude Ledbetter for a previously registered grandfathered facility (Pace Fishing Camp/GSR No ). The lease authorized the preemption of 4,383 square feet of sovereignty submerged lands to be used in conjunction with an upland commercial marina. On September 25, 2002, under delegation of authority, DEP executed a lease renewal/modification for a ten-year term from September 2001 to September The modification was to reflect a change in ownership to the current lessee, Sea Hag Marina, Inc., and to increase the preempted area. The lease renewal/modification authorized the preemption of 43,124 square feet for the operation of a 44-slip docking facility with forklift boat launch area to be used in conjunction with an upland multi-use commercial marina, boat repair, and dry storage facility. Project Detail The applicants are proposing to expand an existing 44-slip docking facility by increasing the preempted area from 43,124 square feet to 67,524 square feet (an increase of 24,400 square feet). The proposed project consists of removing the existing 44-slip docking facility and constructing a 90-slip docking facility (69 permanent slips and 21 temporary slips). The applicants also propose to relocate the existing boat launch area, currently located on the west side of the upland marina, to the east side of the upland marina. The docking facility will accommodate commercial fishing, charter, and non-commercial recreational vessels ranging in length from 20 to 50 feet with drafts up to 4 feet. The docking facility will be used in conjunction with the applicants upland commercial marina, boat repair facility, 300-space dry storage facility, and lodging facilities. A minimum of 90 percent of all of the slips will continue to be maintained on an open to the public, first-come, first-served basis, pursuant to rule (27), F.A.C. This requirement has been included as a special lease condition. The proposed structure will extend into the 25-foot setback area on the western side of the facility. Therefore, a letter of concurrence has been obtained from the affected adjacent property owner, pursuant to rule (3)(d), F.A.C. Dredging The applicants are proposing to dredge approximately 1,000 cubic yards of near-shore, sovereignty material, within the existing and proposed lease areas, to provide adequate water

3 Page Three Item 1, cont. depth (-5 feet mean low water) for the vessels proposed to be moored at the modified docking facility. There are no benthic resources in or adjacent to the area proposed to be dredged. The spoil will be disposed of in an appropriate self-contained upland site. Shoreline Armoring The applicants are proposing to repair an existing vertical concrete bulkhead, at the existing mean high water line, as well as replace existing riprap with 98 cubic yards of riprap. The bulkhead and riprap will run along the entire length of the applicants riparian shoreline, approximately 590 linear feet. The riprap will extend no more than 10 feet waterward of the mean high water line pursuant to rule (1)(c)6., F.A.C. Noticing/Interested Parties The lease modification request was noticed to property owners, within a 500-foot radius of the project, pursuant to rule (1)(m), F.A.C. Twenty-four property owners were specifically noticed and one objection was received from the adjacent property owner located on the eastern side of the facility. The objector expressed concerns about the potential increase of: (1) noise from relocating the boat launch area; and (2) stormwater runoff to the adjacent property. The applicants resolved the concerns to the satisfaction of the objector by agreeing to construct a: (1) sound wall; and (2) curb system between the marina facility and the effected neighboring parcel. (See Attachment 1, Pages 1-28) RECOMMEND APPROVAL SUBJECT TO THE SPECIAL LEASE CONDITIONS AND PAYMENT OF $9, Item 2 Andrew Arnold Aquaculture Lease REQUEST: Approval to issue a two-acre, ten-year sovereignty submerged land aquaculture water column lease for the purpose of shellfish aquaculture. LOCATION: Two-acre parcel is in Township 06 West, Range 08 South, in St. George Sound, Franklin County. The proposed parcel is located within the Apalachicola Bay National Estuarine Research Reserve. APPLICANT: Andrew Arnold CONSIDERATION: An annual fee of $86.92 for the two-acre lease parcel, representing a base annual rental fee of $33.46 per acre or fraction thereof; and an annual surcharge of $10.00 per

4 Page Four Item 2, cont. acre or fraction thereof, pursuant to rule , F.A.C. The annual fee and surcharge collected will be deposited in the General Inspection Trust Fund, pursuant to sections (5)(b) and (7), F.S. STAFF REMARKS: The applicant requests authorization from the Board of Trustees to use sovereignty submerged lands for an aquaculture water column lease. The requested two-acre lease will be used for the purpose of culturing native clams and oysters. The applicant is seeking this lease to expand his aquaculture business by obtaining additional area to grow out oysters and clams to market size. Water column shellfish aquaculture in this area of Apalachicola Bay may prove a viable alternative to the declining wild oyster harvest and changing estuarine environment. The proposed site is located within the Apalachicola Bay National Estuarine Research Reserve. The area was part of a previously planned, but subsequently abandoned aquaculture leasing project in the aftermath of Hurricane Elena in the late 1980s. When the aquaculture leasing project was abandoned, the proposed parcels were never brought to the Board of Trustees for final approval. The applicant is a current submerged land leaseholder and aquaculture certificate holder. In addition, the applicant is in compliance with the terms and conditions of his existing leases and the Department of Agriculture and Consumer Services (DACS) Aquaculture Best Management Practices. The proposed lease will be subject to the terms and conditions applied to other aquaculture leases issued throughout the state for the same purposes, including the provision that the transfer or sale of the lease will not be approved during the first five years of the lease term. Upon approval, the lease will be surveyed. DACS has reviewed the application for completeness, evaluated the business plan, and coordinated the application review process pursuant to rule , F.A.C. DACS, in cooperation with the Department of Environmental Protection s Office of Coastal and Aquatic Managed Areas, has reviewed the application and determined that the proposed new lease and associated aquaculture activities will not result in direct impacts to seagrasses, existing shellfish beds or natural reefs or other sensitive habitats. The proposed site is located within the Gulf Sturgeon critical habitat which is not covered under DACS general permit and will require an Army Corp of Engineers (ACOE) permit. The applicant has applied for the required ACOE permit and the permit application is in the review process. Public Interest The Florida Aquatic Preserve Act provides that no further sale, lease, or transfer of sovereignty submerged lands shall be approved within an aquatic preserve, unless the sale, lease, or transfer is in the public interest. The Aquatic Preserve Act specifically provides that aquaculture is in

5 Page Five Item 2, cont. the public interest and aquaculture leases may be authorized in aquatic preserves [Section (1)(b), F.S.] Accordingly, DACS recommends that the Board of Trustees find that the leases are in the public interest, as set forth in statute. Noticing The proposed new lease was noticed pursuant to section , F.S., and no objections were received. The Franklin County Board of County Commissioners sent a letter of support for the proposed lease. Comprehensive Plan A consideration of the status of any local government comprehensive plan was not made for this item. DACS has determined that the proposed action is not subject to the local government planning process. (See Attachment 2, Pages 1-14) RECOMMEND APPROVAL SUBJECT TO RECEIPT OF THE ARMY CORPS OF ENGINEERS PERMIT Item 3 Curtis D. Hemmel (Bay Shellfish Co.) Aquaculture Lease REQUEST: Approval to issue a two-acre, ten-year sovereignty submerged land aquaculture bottom lease for the purpose of shellfish aquaculture. LOCATION: Two-acre parcel in Township 33 South, Range 17 East, in Tampa Bay in the vicinity of Joe Island in Manatee County. The proposed parcel is located within the Terra Ceia Aquatic Preserve. APPLICANT: Curtis D. Hemmel d/b/a Bay Shellfish Co. CONSIDERATION: An annual fee of $53.46 for the two acre lease parcel, representing a base annual rental fee of $16.73 per acre or fraction thereof; and an annual surcharge of $10.00 per acre or fraction thereof, pursuant to rule , F.A.C. The annual fee and surcharge collected will be deposited in the General Inspection Trust Fund, pursuant to sections (5)(b) and (7), F.S. STAFF REMARKS: The applicant requests authorization from the Board of Trustees to use sovereignty submerged lands for an aquaculture bottom lease for the purpose of culturing native shellfish. The requested parcel is approximately two acres and is adjacent to four previously

6 Page Six Item 3, cont. authorized aquaculture leases, two of which are currently leased to the applicant. The applicant is requesting additional acreage to expand its operation, resulting in additional production and associated job creation and economic development. The applicant is a current submerged land leaseholder and aquaculture certificate holder. In addition, the applicant is in compliance with the terms and conditions of its existing leases and the Department of Agriculture and Consumer Services (DACS) Aquaculture Best Management Practices. The proposed lease will be subject to the terms and conditions applied to other aquaculture leases issued throughout the state for the same purposes, including the provision that the transfer or sale of the lease will not be approved during the first five years of the lease term. Upon approval, the lease will be surveyed. DACS has reviewed the application for completeness, evaluated the business plan, and coordinated the application review process pursuant to rule , F.A.C. The proposed site is located in the Terra Ceia Aquatic Preserve. DACS, in cooperation with the Department of Environmental Protection s Office of Coastal and Aquatic Managed Areas, has reviewed the application and determined that the proposed new lease and associated aquaculture activities will not result in adverse impacts to seagrasses, existing shellfish beds or natural reefs or other sensitive habitats. Public Interest The Florida Aquatic Preserve Act provides that no further sale, lease, or transfer of sovereignty submerged lands shall be approved within an aquatic preserve, unless the sale, lease, or transfer is in the public interest. The Aquatic Preserve Act specifically provides that aquaculture is in the public interest and aquaculture leases may be authorized in aquatic preserves [Section (1)(b), F.S.] Accordingly, DACS recommends that the Board of Trustees find that the leases are in the public interest, as set forth in statute. Noticing The proposed new lease was noticed pursuant to section , F.S., and no objections were received. Comprehensive Plan A consideration of the status of any local government comprehensive plan was not made for this item. DACS has determined that the proposed action is not subject to the local government planning process. (See Attachment 3, Pages 1-16) RECOMMEND APPROVAL

7 Page Seven Item 4 Lovel Aquaculture Lease REQUEST: Approval to issue a five-acre, ten-year sovereignty submerged land aquaculture water column lease for the purpose of shellfish aquaculture. LOCATION: One parcel in a tract of sovereignty submerged lands in Oyster Bay, Wakulla County. APPLICANT: Leo Lovel, Ben Lovel, and Clay Lovel CONSIDERATION: An annual fee of $ for the five-acre lease parcel, representing a base annual rental fee of $33.46 per acre or fraction thereof; and an annual surcharge of $10.00 per acre or fraction thereof, pursuant to rule , F.A.C. The annual fee and surcharge collected will be deposited in the General Inspection Trust Fund, pursuant to sections (5)(b) and (7), F.S. STAFF REMARKS: The applicants request authorization from the Board of Trustees to use sovereignty submerged lands for an aquaculture water column lease. The requested five-acre lease will be used for the purpose of culturing native clams and oysters. The applicants are seeking this lease to expand their aquaculture business by obtaining additional area to grow out oysters and clams to market size. The applicants are current submerged land leaseholders and aquaculture certificate holders. In addition, the applicants are in compliance with the terms and conditions of their existing leases and the Department of Agriculture and Consumer Services (DACS) Aquaculture Best Management Practices. The proposed lease will be subject to the terms and conditions applied to other aquaculture leases issued throughout the state for the same purposes, including the provision that the transfer or sale of the lease will not be approved during the first five years of the lease term. Upon approval, the lease will be surveyed. DACS has reviewed the application for completeness, evaluated the business plan, and coordinated the application review process pursuant to rule , F.A.C. Public Interest The proposed parcel is not in an Aquatic Preserve. Noticing The proposed new lease was noticed pursuant to section , F.S., and no objections were received. Comprehensive Plan A consideration of the status of any local government comprehensive plan was not made for this item. DACS has determined that the proposed action is not subject to the local government planning process.

8 Page Eight Item 4, cont. (See Attachment 4, Pages 1-17) RECOMMEND APPROVAL Item 5 Aquaculture Lease Modifications/Alligator Harbor Aquaculture Use Zone REQUEST: Approval to modify 24 existing 1.5-acre, ten-year sovereignty submerged land aquaculture leases to authorize the use of the full water column. LOCATION: Alligator Harbor Aquaculture Use Zone, Franklin County APPLICANTS: Name Parcel Number Andrew Arnold F-08, F-05 and F-24 Leah Richburg F-09 Candice Sheridan F-35 John Sheridan Jr. F-34, F-37and F-01 Candice & John Sheridan Jr. F-45 William Lartz F-41, F-40, F-39 and F-04 Clayton Lewis F-23 and F-18 Sharon Fitzgerald F-14 and F-32 Charles Earl F-12 and F-17 Harrison Coulter F-19 James F. Coulter Sr. F-03 James F. Coulter Jr. F-16 Edwin Lott F-36 Mona Lisa Abbott F-27 STAFF REMARKS: The applicants are requesting consideration by the Board of Trustees to modify the special lease conditions to allow use of the full water column. Utilizing racks or floating cages positions oysters in the most nutrient rich part of the water column, eliminates predation by the commonly found bottom oyster predators, and makes fouling of the cage and the oyster controllable. The applicants request to use the entire water column with these innovative floating and rack culture systems may be the initial step in the evolving development of new aquaculture practices and a potential alternative economic stimulus for the eastern bounds of Apalachicola Bay. The applicants are current submerged land leaseholders and aquaculture certificate holders. The applicants are compliant with the terms and conditions of their existing leases and the Department of Agriculture and Consumer Services (DACS) Aquaculture Best Management

9 Page Nine Item 5, cont. Practices. The proposed lease modifications will be subject to the terms and conditions applied to other aquaculture leases issued throughout the state for the same purposes, including the provision that the transfer or sale of the lease will not be approved during the first five years of the lease term. In addition, the remainder of the ten-year renewable term will remain unchanged. The Alligator Harbor Aquaculture Use Zone is located in the Alligator Harbor Aquatic Preserve. DACS, in cooperation with the Department of Environmental Protection s Office of Coastal and Aquatic Managed Areas, has reviewed the proposed modification to the existing leases and determined that the proposed modification and associated aquaculture activities will not result in direct impacts to seagrasses, existing shellfish beds or natural reefs or other sensitive habitats. Noticing The proposed lease modifications were noticed pursuant to section , F.S., and no objections were received. Comprehensive Plan A consideration of the status of any local government comprehensive plan was not made for this item. DACS has determined that the proposed action is not subject to the local government planning process. (See Attachment 5, Pages 1-21) RECOMMEND APPROVAL Item 6 Aquaculture Lease Modifications/Gulf Jackson Aquaculture Use Zone/Pelican Reef Aquaculture Use Zone REQUEST: Approval to modify two existing two-acre, ten-year sovereignty submerged land aquaculture leases to authorize the use of the full water column. LOCATION: Gulf Jackson Aquaculture Use Zone, Levy County Pelican Reef Aquaculture Use Zone, Levy County APPLICANTS: Name AUZ Location Parcel Number Laura Adams Gulf Jackson L-6017 Jerald W Beckham Sr. Pelican Reef L-989

10 Page Ten Item 6, cont. STAFF REMARKS: The applicants are requesting consideration by the Board of Trustees to modify the special lease conditions to allow use of the full water column. Utilizing racks or floating cages positions oysters in the most nutrient rich part of the water column, eliminates predation by the commonly found bottom oyster predators, and makes fouling of the cage and the oyster controllable. The applicants request to use the entire water column with these innovative floating and rack culture systems may be the initial step in the evolving development of new aquaculture practices and a potential alternative economic stimulus for the shellfish industry. The applicants are current submerged land leaseholders and aquaculture certificate holders. The applicants are compliant with the terms and conditions of their existing leases and the Department of Agriculture and Consumer Services (DACS) Aquaculture Best Management Practices. The proposed lease modifications will be subject to the terms and conditions applied to other aquaculture leases issued throughout the state for the same purposes, including the provision that the transfer or sale of the lease will not be approved during the first five years of the lease term. In addition, the remainder of the ten-year renewable term will remain unchanged. Pelican Reef and Gulf Jackson Aquaculture Use Zones are located in the Big Bend Seagrasses Aquatic Preserve. DACS, in cooperation with the Department of Environmental Protection s Office of Coastal and Aquatic Managed Areas, has reviewed the proposed modification to the existing leases and determined that the proposed modification and associated aquaculture activities will not result in direct impacts to seagrasses, existing shellfish beds or natural reefs or other sensitive habitats. Noticing The proposed lease modifications were noticed pursuant to section , F.S., and no objections were received. Comprehensive Plan A consideration of the status of any local government comprehensive plan was not made for this item. DACS has determined that the proposed action is not subject to the local government planning process. (See Attachment 6, Pages 1-11) RECOMMEND APPROVAL