Submittal of the Minutes from the April 28, 2009 and June 9, 2009 Cabinet Meetings.

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1 AGENDA BOARD OF TRUSTEES DEPARTMENT OF AGRICULTURE & CONSUMER SERVICES JULY 28, 2009 Attachments to the items below can be viewed at the following link: Item 1 Minutes Submittal of the Minutes from the April 28, 2009 and June 9, 2009 Cabinet Meetings. (See Attachment 1, Pages 1-6) RECOMMEND APPROVAL Item 2 Acquisition of Evans Ranch, Rural & Family Lands Protection Easement REQUEST: Consideration of (1) an Acquisition Agreement pursuant to Rule 5I F.A.C. by and between St. Johns River Water Management District (District) and Florida Department of Agriculture and Consumer Services, Division of Forestry (DACS/DOF) to acquire a 50 percent undivided interest in a 690 acre perpetual conservation easement within the Evans Ranch Rural & Family Lands Protection Program project; (2) a purchase agreement to acquire a perpetual conservation easement over 690 acres within the Evans Ranch Rural and Family Lands Protection Program project from Milton E. and Marilyn J. Evans; (3) designation of DACS/DOF as the monitoring agency. COUNTY: Flagler LOCATION: Portions of Sections 19 and 20, Township 14 South, Range 29 East CONSIDERATION: $1,374, (the Trustees 50 percent share of the total purchase price of $2,749,650.00) APPRAISED BY TRUSTEES Clayton Richards PURCHASE OPTION PARCEL ACRES (09/11/08) (09/11/08) VALUE PRICE DATE Evans 677* $3,050,000 $2,840,000 $3,050,000 $1,374,825.00** 90 days after BOT approval * Acreage appraised is 677 acres. Actual negotiated easement acreage is 690 acres. ** Trustee s purchase price is 50 percent of a total easement purchase price of $2,749, based on 690 acres. Easement value of $3,050,000 represents 56 percent of the fee simple value of $5,420,000. Easement purchase price ($2,749,650) represents 51 percent of fee simple value ($5,420,000). Purchase price to be adjusted at closing by a negotiated value of $3,985 per final surveyed acre. APPLICANT: Department of Agriculture and Consumer Services, Division of Forestry STAFF REMARKS: This is the initial acquisition of a conservation easement through the Rural & Family Lands Protection Program and is in partnership with the St. Johns River Water Management District.

2 Page Two Evans Ranch is listed in the top tier of priority projects for the program as approved by the Board of Trustees (BOT) April 28, The Prioritized Acquisition List for the Rural & Family Lands Protection Program (RFLPP) was developed pursuant to ss (3)(i) and (10) and Rule 5I-7. Evans Ranch was chosen as the initial project for the RFLPP because of its varied agricultural uses, the commitment of the owners to seek new and innovative opportunities for Florida agriculture, and an opportunity existed to partner with the District to further its goals of water resource while sharing acquisition costs. The BOT will obtain a 50 percent undivided interest in the perpetual conservation easement for a purchase price of approximately $1,374,825 with the District acquiring the remaining 50 percent undivided interest. The actual amount of each party s contribution may change after a final determination of acreage is made. The District has taken the lead in formulating this easement in order to facilitate the acquisition of this project considered for approval by the BOT today. Per the terms and conditions of an Acquisition Agreement (Agreement), the District obtained appraisals and negotiated a purchase agreement to acquire a perpetual conservation easement over 690 acres of Evans Ranch within Flagler County. The Agreement states that the District shall comply with all requirements of its own District Procedures for land acquisition pursuant to the procedures set out in Section , F.S., Chapter 40C-9, F.A.C., (collectively, the District Procedures ); comply with DACS/DOF Rule 5I F.A.C. when acquiring appraisals; and comply with the Department of Environmental Protection, Division of State Lands (DSL) Bureau of Survey and Mapping and DACS/DOF Land Acquisition Survey Standards. DACS/DOF and the District shall share equally the actual and reasonable costs for environmental site assessment, recording fees, and other DACS/DOF approved closing costs per the terms and conditions of the Agreement. The easement tract is an irregular shaped parcel consisting of approximately 690 acres of a 1,709 acre parent tract lying in Flagler and Volusia Counties east of Pierson, along the south shore of Lake Disston, within the Lower St. Johns River Basin. Acquisition of this easement will provide conservation in-fill in the Heart Island Conservation Area and provide additional connectivity to other conservation lands such as Tiger Bay State Forest, Lake Woodruff National Wildlife Refuge and Ocala National Forest. This property supports a variety of agricultural uses including silviculture, cattle, and aquaculture. The primary focus of this project is aqua farming specializing in the production of sturgeon fish for the production of meat and caviar. All water utilized in the fish ponds is filtered and recycled. The Evans family is pioneering production of one of the world s most rare foods, beluga caviar. Beluga caviar retails for $70 to $100 an ounce, and poaching has pushed the sturgeon to the brink of extinction. The United States imports 60 tons of caviar per year. In early 2009, Evans

3 Page Three Ranch became the first in this hemisphere and maybe in the world to spawn a sturgeon from egg to egg. The Sturgeon fish provide two great revenue streams; the male is raised for his delicious pure white steak meat and the females are raised for their eggs (caviar). The advances made by Evans Ranch provide a promising opportunity for the growth and profitability of the Florida aquaculture industry. Prohibited Uses (All prohibited uses listed are subject to the terms and conditions of the easement) Under the proposed conservation easement, the property will be restricted in perpetuity by the provisions of the easement, a summary of which includes, but is not limited to, the following prohibited uses: Dumping of biodegradable or non-biodegradable, unsightly, hazardous or toxic material; garbage, trash, abandoned vehicles, appliances, machinery; pollutants, contaminants, etc. The mining, excavation of surface or subsurface materials, the exploration for and extraction of oil, gas, minerals, dolostone, peat, limestone, and fullers earth, etc. Activities that affect the hydrology of the land or that detrimentally affect water conservation, erosion, control, soil, etc. Planting or taking any action to encourage the spread of nuisance exotics or non-native plants. Concentrated and confined animal feed lot operations. No new construction except as noted otherwise in the easement. No signs, billboards, outdoor advertising, etc. Grazing of cattle within 200 feet of the waters edge of Lake Disston and no improved agricultural operations within 750 feet of the waters edge of Lake Disston. Actions or activities that may be reasonably expected to adversely affect threatened or endangered species. Any subdivision of the property. Commercial water wells. Cutting of cypress trees anywhere on the property. There shall be no mitigation banks pursuant to section et.seq. F.S. No conversion of Special Natural Areas No acts detrimental to the preservation or integrity of sites of historical, archeological, or cultural significance. Owner s Rights (All rights subject to the terms and conditions of the easement) Grantor reserves and retains all rights of, in and to the Property not expressly conveyed to Grantee under the easement. The right to conduct prescribed burning The right to control access.

4 Page Four The right to conduct silvicultural activities on forested uplands in accordance with the easement and silvicultural Best Management Practices (BMP s). The right to construct one single family residence for onsite security and management purposes not to exceed 10,000 square feet of rooftop in size, to include all out-buildings in accordance with the easement. The right to mortgage the property. The right to sell, devise or otherwise transfer ownership of the Property to a third party. This right does not include the right to sell the remaining property interests on the Property for the purposes of a conservation easement or other restriction that would divest the property of its use under the terms and conditions of this Easement. The right to exclusive use of the improvements on the property. The right to continue grazing operations, hay production, and to pursue other agricultural uses on the property. The right to maintain existing and construct new farm buildings for hay/polebarns/hanger incident to agricultural uses carried on in accordance with sound agricultural practices. New construction of farm buildings shall not exceed 15,000 square feet of rooftop. Grantor also retains the right to construct up to two (2) docks on the Property, subject to applicable permitting. Such buildings and docks shall not be used as residences. The right to observe, maintain, photograph, introduce and stock native fish or wildlife on the Property, to use the Property for hiking, and horseback riding, The right to develop eco-tourism on the Property, including the right to construct trails and wildlife viewing platforms. Access to the Property will be limited to no more than 40 persons and 8 passenger vehicles per day. Grantor reserves, and shall continue to own, the hunting and fishing rights on or related to the Property, consistent with the Florida Fish and Wildlife Conservation Commission guidelines. Grantor may create and maintain 50 acres of food plots located in the improved pasture areas identified in the Baseline Documentation Report (BDR) and planted in Florida native plant species. Hunting will be limited to owners and their guests. There shall be no leasing of hunting rights to individuals or groups, except personally guided paid hunts of no more than two (2) persons per day during hunting season. The right to continue row crop farming on an established area of not to exceed 10 acres as shown in the BDR and to harvest sod in existing improved pasture areas as shown on the BDR, with maximum acreage of not more than ten percent (10%) of currently existing improved pasture areas as shown on the BDR. The right to conduct aquaculture uses, and construct associated improvements pursuant to DACS standards. New sites shall be limited to an area north of the present aquaculture operation, as shown on the BDR not to exceed 30 acres. The right to continue to use the existing airstrip as shown on the BDR, that currently is approximately 4,000 feet long and 200 feet wide. The airstrip may be improved and maintained with a surface of recycled concrete pavement, not to exceed it s currently existing size.

5 Page Five The right to develop the county line road, as shown on the BDR, up to twenty (20) feet in width and pave said road pursuant to all applicable rules and regulations. The right to construct an additional 5 acres of ponds in the upland areas of the Property as shown on the BDR, subject to all applicable permits, rules, and regulations. The Governing Board of the District adopted Resolution No on December 9, 2008, which approved the acquisition of the Evans conservation easement. If the BOT approves this acquisition, the District will exercise the option and purchase the easement from Milton E. and Marilyn J. Evans on behalf of the BOT, subject to DACS/DOF approval of the due diligence items, closing documents and DSL concurrence to close. Mortgages and Liens All mortgages and liens will be satisfied or subordinated at the time of closing. Based on a Title Certificate have October 10, 2008, no recorded easements, rights-of-way, reservations, or mineral interests been identified. On June 22, 1999, the BOT approved a staff recommendation to delegate to DEP the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them appropriately. Therefore, DEP staff in consultation with the DACS/DOF will review, evaluate, and implement an appropriate resolution for any other title issues that may arise prior to closing. Closing Information A title insurance policy and survey will be provided by the Seller. An environmental site assessment, and BDR will be obtained by the BOT prior to closing. The BOT and the District will each be responsible for 50 percent of the cost of the acquisition items that are to be borne by the Purchaser. Management Staff recommends that the BOT designate DACS/DOF as the conservation easement monitor for this site. (See Attachment 2, Pages 1-77) RECOMMEND APPROVAL