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1 AGENDA BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND AUGUST 19, 2014 Attachments to the items below can be viewed at the following link: Item 1 Minutes Submittal of the Minutes from the May 13, 2014 and June 17, 2014 Cabinet Meetings. VOTING REQUIREMENT FOR APPROVAL: Two members, one of whom is the Governor, when four members are voting; or any two members, when three members are voting. (See Attachment 1 at RECOMMEND APPROVAL Item 2 Strata Group LLC Acceptance of Offer/Sale and Purchase Contract/Determination REQUEST: Consideration of (1) a determination that a 6.4-acre, more or less, parcel of stateowned, non-conservation land in Broward County is surplus and no longer needed, pursuant to section (6), F.S.; (2) acceptance of an offer in the amount of $2,000,100 submitted by Strata Group LLC, for the purchase of the 6.4-acre, more or less, parcel of state-owned, nonconservation land; and (3) approval of a contract for sale and purchase of the 6.4-acre, more or less, parcel of state-owned, non-conservation land to Strata Group LLC. VOTING REQUIREMENT FOR APPROVAL: Three votes COUNTY: Broward Bid #DSL-BID APPLICANT: Strata Group LLC LOCATION: Section 01, Township 50 South, Range 41 East CONSIDERATION: $2,000,100 to be deposited in the Internal Improvement Trust Fund STAFF REMARKS: On September 21, 1989, the purchased the 6.4-acre parcel (subject parcel) from James V. Atria, Jr. On March 23, 1990, the Department of General Services, predecessor to the Department of Management Services (DMS), was granted a lease (Lease No. 3817) for use as a regional service center. The lease expires in 2040, but DMS no longer needs the subject parcel and has requested to be released from the lease. Statutory Requirement

2 Pursuant to section (6), F.S., in order to surplus non-conservation land, the Board of Trustees must make a determination that the land is no longer needed. Pursuant to section (6)(c), F.S.,

3 Page Two Item 2, cont. non-conservation lands shall be reviewed by the Department of Environmental Protection s (DEP) Division of State Lands (DSL) for recommendation as to whether such lands should be retained in public ownership or disposed of by the. DEP offers the following to assist the in making an affirmative determination that the subject parcel is no longer needed: DMS, the managing agency, has evaluated the use of the subject parcel and determined that it is not being used for the purpose for which it was originally leased and is no longer needed; and DSL has reviewed DMS findings, completed the required surplus lands process, and recommends that the property be disposed of by the. Noticing Pursuant to sections and , F.S., the subject parcel was offered for lease to state agencies, state universities, and Florida College System institutions; for sale to the same entities provided they have authority to hold title; and for sale to the local governments. The City of Plantation initially expressed interest in purchasing the subject parcel but decided against the purchase. No interest in the subject parcel was expressed by any other noticed educational or governmental entity. Pursuant to section , F.S., notice was given to property owners within 500 feet of the subject parcel and no objections were received. Marketing and Bid History On May 26, 2011, the subject parcel was listed as an anticipated bid on DEP s surplus website. On October 26, 2011, DEP offered the subject parcel for sale with a minimum bid of $3,904,000. The subject parcel was advertised on Commrex, which is a commercial real estate website. DEP also sent notification through GovDelivery to 769 recipients including real estate offices, developers, investment companies and other interested parties that have requested notification of surplus land bid notices. In addition, the bid was advertised in the legal section of the Sun Sentinel once per week for three consecutive weeks. No bids were received on the bid opening date of December 20, Because the subject parcel is vacant, a determination was made to retain the subject parcel until the real estate market improved, but continue to list the subject parcel on DEP s surplus website. After receiving calls from interested parties, DEP, on April 2, 1014, offered the subject parcel for sale a second time with a minimum bid of $2,100,000. DEP sent notification through GovDelivery to 7,743 recipients. The subject parcel was also advertised in the legal section of the Sun Sentinel once per week for three consecutive weeks. On the bid opening date of May 15, 2014, one bid was received in the amount of $500,000. However, the bid was considered nonresponsive because it did not meet the minimum bid requirement. In accordance with section (6)(h), F.S., any parcels unsuccessfully offered for sale by competitive bid may be sold by any reasonable means. In an effort to move forward with disposing of the subject parcel, DEP contracted with CBRE, Inc. (CBRE) to assist with the

4 marketing and sale of the subject parcel. A reassessment of the documentation used to establish the minimum bid for the previous bid revealed that the value was subject to the City of Plantation s rezoning

5 Page Three Item 2, cont. approval. Based on the concerns that rezoning has not been approved on the subject parcel and the bid process does not allow for a due diligence period to ensure that rezoning will be approved, the value of the subject parcel was reassessed and a determination was made to place the minimum bid at $975,000. On June 16, 2014, the bid was posted on both CBRE and DEP s websites which provided property information, maps, history, disclosures and bid information. DEP sent notification through GovDelivery to 9,105 recipients. CBRE also advertised the subject parcel on CoStar, Loopnet, and its own corporate website and sent s to over 2,300 prospective buyers. Numerous follow-up communications and site tours with prospective buyers were conducted by CBRE during the marketing period. DEP also advertised the bid in the legal section of the Sun Sentinel once per week for three consecutive weeks. On July 31, 2014, two bids were received of which both met the bid conditions. Bids were received as follows: $2,000,100 - Strata Group LLC $1,001,000 - R & R Plantation, LLC The Strata Group LLC (Buyer) plans to combine the subject parcel with an adjacent acre parcel on which it plans to build 250 townhouses and 380 apartments. The combined parcels will also house a school which will serve children with special needs (at no cost to the families) and the homeschooling population. Buyer anticipates that the construction project will provide approximately 300 temporary jobs and the school will provide 85 full-time positions. Buyer will be responsible for and pay all closing costs associated with the subject parcel including, but not limited to, survey costs, documentary stamp tax on the quitclaim deed, recording fees, abstract or title insurance fees, buyer s attorneys fees, and any other closing costs that Buyer may incur. Buyer shall also reimburse any closing costs that are initially paid by the or other parties on behalf of the. These reimbursable closing costs include, but are not limited to, the cost of appraisal, survey, and legal advertising. Buyer will also be responsible for the brokerage fee to CBRE. Comprehensive Plan A consideration of the status of the local government comprehensive plan was not made for this item. DEP has determined that the proposed action is not subject to the local government planning process. (See Attachment 2, Pages 1-10) RECOMMEND APPROVAL

6 Page Four Item 3 BOT/Perry Exchange Agreement/Determination/Quitclaim Deed Acceptance REQUEST: Consideration of (1) a determination, pursuant to Article X, section 11 of the Florida Constitution and rule (1)(a), F.A.C., that an exchange of 1,743 square feet, more or less, of sovereignty submerged lands in Destin Harbor is in the public interest; (2) an exchange agreement to convey the 1,743 square feet, more or less, of sovereignty submerged lands for 1,743 square feet, more or less, of privately-owned submerged lands in Destin Harbor owned by Claude F. Perry, Sr.; and (3) acceptance of a quitclaim deed releasing any right, title, or interest held by Claude F. Perry, Sr., to the submerged lands, located outside of Butler Act Disclaimer ( ), riparian to his upland ownership at the project site. VOTING REQUIREMENT FOR APPROVAL: Three votes APPLICANT: Claude F. Perry, Sr. LOCATION: 302 Harbor Boulevard, Destin Destin Harbor, Okaloosa County CONSIDERATION: 1,743 square feet of privately-owned submerged lands and a quitclaim deed releasing any interest held by the applicant to the submerged lands, located outside of Butler Act Disclaimer ( ), riparian to the applicant s upland ownership to provide clear title for the. BROKERS OPINION OF VALUE BY SQUARE CBRE EXCHANGE CLOSING PARCEL FEET (04/08/14) VALUE DATE BOT 1,743 $5,800 $5, days after BOT PERRY 1,743 $5,800 $5,800* approval *together with a quitclaim deed releasing any interest held in the submerged lands, located outside of Butler Act Disclaimer ( ), riparian to the applicant s upland ownership at the project site STAFF REMARKS: Background The applicant operates a docking facility that was originally registered as a grandfathered facility (GSR 46022). In 1998, the Department of Environmental Protection (DEP), under delegation of authority, issued the initial five-year sovereignty submerged lands lease (No ). DEP has issued each subsequent lease renewal under delegation of authority. The existing lease authorizes the preemption of 14,443 square feet for a commercial docking facility. The applicant applied for and received a Butler Act Disclaimer No ( ), dated June 3, 2013, for 3,222 square feet of submerged lands (Butler Act area). The Butler Act area is located within the existing lease area. The applicant is proposing to exchange a portion of its Butler Act area, 1,743 square feet, for sovereignty submerged lands to consolidate its privatelyowned submerged lands to encompass the existing structures.

7 Page Five Item 3, cont. A June 3, 2014 site inspection revealed that the applicant had modified the docking facility without regulatory or proprietary authorization. On June 23, 2014, DEP executed a Consent Order (OGC No SL) to bring the facility back into compliance. The applicant has paid $1,670 for costs and expenses/civil penalties in accordance with the Consent Order. Project Details The applicant is requesting an exchange of 1,743 square feet of sovereignty submerged lands, currently used as a private pier and mooring area, for 1,743 square feet of privately-owned submerged lands. If the approves the applicant s request: (1) the Board of Trustees will convey, by quitclaim deed, the 1,743 square feet of sovereignty submerged lands to the applicant; (2) the applicant will convey, by warranty deed, the 1,743 square feet of privatelyowned submerged lands to the ; and (3) the applicant will convey, by quitclaim deed, to the any right, title, or interest it holds in the submerged lands, located outside of the Butler Act area, riparian to the applicant s upland ownership at the project site. Constitutional Requirement Pursuant to Article X, section 11 of the Florida Constitution and rule (1)(a), F.A.C., the may convey sovereignty lands if determined by the to be in the public interest. DEP offers the following to assist the in making an affirmative determination that the exchange is in the public interest: the will receive title to privately-owned submerged lands that lie in open water; this exchange will more effectively align the privately-owned submerged lands to make lease compliance easier for both the applicant and DEP; and the applicant will issue the a quitclaim deed for any right, title, or interest it holds in the remaining submerged lands riparian to the applicant s upland ownership at the project site. Noticing Pursuant to section , F.S., three property owners, within a 500-foot radius of the proposed exchange, were specifically noticed and no objections were received. Comprehensive Plan A consideration of the status of the local government comprehensive plan was not made for this item. DEP has determined the proposed exchange is not subject to the local government planning process. (See Attachment 3, Pages 1-20) RECOMMEND APPROVAL