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1 AGENDA BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND OCTOBER 27, 2015 Attachment to the item below can be viewed at the following link: Item 1 Chapter 18-1, F.A.C., Notice of Proposed Rulemaking/Final Rule Adoption REQUEST: Consideration of a request to (1) publish a Notice of Proposed Rulemaking to amend six rules within Chapter 18-1, F.A.C., State Land Acquisition Procedures, including amendments to the Supplemental Appraisal Standards for the Board of Trustees; and (2) file the proposed amendment for final adoption with the Department of State, pursuant to section (3)(e)(1), F.S., if there is no Notice of Change made to the Proposed Rule. 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. COUNTY: Statewide APPLICANT: Department of Environmental Protection (DEP) STAFF REMARKS: DEP has identified the need to update Chapter 18-1, F.A.C., specifically to delete references in the rule to the Uniform Standards of Professional Appraisal Practice (USPAP), January 1, 2010, and to update and adopt the revised Supplemental Appraisal Standards for the Board of Trustees. Rulemaking under Chapter 120, F.S., is structured into three separate major steps: the Notice of Development of Rulemaking, the Notice of Proposed Rule, and Certification, or adoption, of the final rule. The Board of Trustees acts as agency head over rules in Title 18, F.A.C. Having completed the first step of rule development, DEP seeks approval to proceed to the next two steps, which, pursuant to section (1)(k), F.S., may not be delegated. A Notice of Proposed Rule is published in the Florida Administrative Register (F.A.R.) and provides notice of the language intended to be adopted, pursuant to section (3)(a)1., F.S. Following publication, any substantially affected person may submit written comments, request a public hearing on the rule, or challenge the proposed rules. Additionally, staff to the Joint Administrative Procedures Committee (JAPC) can provide comments on the proposed rule. If DEP receives comments and proposes a Notice of Change to the proposed rule, DEP would return to the Board of Trustees prior to filing the certification package (adoption). If, however, there are no substantive changes that require a Notice of Change to the proposed rule, DEP asks in this agenda item that the Board of Trustees authorize DEP to file the certification package for the proposed rule attached. Background Notice of Development of Rulemaking: Pursuant to the Board of Trustees delegation, DEP may initiate rulemaking and hold public workshops and hearings upon notification to the Cabinet Offices. On May 28, 2015, DEP sent a memo to the Board of Trustees with Subject: Notice of Intent to Initiate Rulemaking & Publish Notice of Development of Rulemaking. DEP, as staff to

2 Page Two Item 1, cont. the Board of Trustees, published a Notice of Development of rulemaking for proposed amendments to Chapter 18-1, F.A.C., in the F.A.R. on July 1, Public Involvement: A workshop was held on July 17, 2015, but no members of the public attended and no comments were received through correspondence. JAPC Preliminary Review: Upon request from DEP, JAPC provided an initial review of the draft rules and sent DEP preliminary comments. While such preliminary comments do not restrict JAPC from providing further comment following publication of the Notice of Proposed Rule, DEP has addressed JAPC s initial comments. Summary of Proposed Changes Chapter 18-1, F.A.C., titled State Land Acquisition Procedures, provides uniform and efficient procedures for the acquisition of interests in real property, and donation of such interests, title to which will vest in the Board. With this rulemaking effort, DEP intends to amend six rules in this Chapter: Definitions. o Remove and revise definitions for redundancy/accuracy and outdated language. o Revise Supplemental Standards to January Title. o Allow for limited waiver of evidence of marketable title in accordance with section (5), F.S., (currently, with just value of $10,000 or less) to ensure consistency with statute Appraisal Map and Survey. o Minor change to align terminology in rule chapter Appraisal Procedures, Report Requirements and Determining Maximum Amounts. o Allow DEP to waive any portion of the Supplemental Standards on land valued at $100,000 or less if best professional judgment demonstrates it would not be detrimental to credible assignment result. o Change ad valorem tax assessment for each parcel is $75,000 or less, excluding tax exemptions to just value, as determined by the county property appraiser, is $75,000 or less Appraiser Eligibility and Selection. o Remove all references to USPAP since appraisals must be completed by State Certified Appraisers who must follow USPAP procedures and practices. o Correct references made to Florida Real Estate Appraisal Board (FREAB) and replace with the Florida Department of Business and Professional Regulation. o Add the requirement for an appraiser s eligibility and selection to submit one appraisal report demonstrating such competence and expertise for one of the specialty property types, and also to demonstrate general appraisal competence by submission of an appraisal report that includes sales comparison, cost, and income approaches.

3 Page Three Item 1, cont. Allow approved appraisers to request reaffirmation to remain on the approved appraisers list every two years rather than every year. o Remove reward of additional points for professional appraisal designation by approved appraisal organization. o Remove requirement for Standard 3 review from Rule, as this is an internal procedural matter not suited for rule Donations. o Allow for limited waiver of evidence of marketable title in accordance with sections or , F.S., to ensure consistency with statute. (See Attachment 1, Pages 1-36) RECOMMEND APPROVAL Item 2 Chapter 18-2, F.A.C., Notice of Proposed Rulemaking/Final Rule Adoption REQUEST: Consideration of a request to (1) publish a Notice of Proposed Rulemaking to amend four rules within Chapter 18-2, F.A.C., Management of Uplands Vested in the Board of Trustees ; and (2) file the proposed amendment for final adoption with the Department of State, pursuant to section (3)(e)(1), F.S., if there is no Notice of Change made to the Proposed Rule. 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. COUNTY: Statewide APPLICANT: Department of Environmental Protection (DEP) STAFF REMARKS: On July 1, 2013, the legislature enacted changes to section (13), F.S., (see Chapter , Laws of Florida) that directs all state universities, community colleges, or agencies to prepare a business plan for the Board of Trustees review in determining if it would lease or surplus the property. The statute directs the Board of Trustees to promulgate a rule that specifies what information is to be furnished for the Board of Trustees to determine lease or sale. The draft proposed rule intends to implement that statute. Rulemaking under Chapter 120, F.S., is structured into three separate major steps: the Notice of Development of Rulemaking, the Notice of Proposed Rule, and Certification, or adoption, of the final rule. The Board of Trustees acts as agency head over rules in Title 18, F.A.C. Having completed the first step of rule development, DEP seeks approval to proceed to the next two steps, which, pursuant to section (1)(k), F.S., may not be delegated.

4 Page Four Item 2, cont. A Notice of Proposed Rule is published in the Florida Administrative Register (F.A.R.) and provides notice of the language intended to be adopted, pursuant to section (3)(a)1., F.S. Following publication, any substantially affected person may submit written comments, request a public hearing on the rule, or challenge the proposed rules. Additionally, staff to the Joint Administrative Procedures Committee (JAPC) can provide comments on the proposed rule. If DEP receives comments and proposes a Notice of Change to the proposed rule, DEP would return to the Board of Trustees prior to filing the certification package (adoption). If, however, there are no substantive changes that require a Notice of Change to the proposed rule, DEP asks in this agenda item that the Board of Trustees authorize DEP to file the certification package for the proposed rule attached. Background Notice of Development of Rulemaking: Pursuant to the Board of Trustees delegation, DEP may initiate rulemaking and hold public workshops and hearings upon notification to the Cabinet Offices. On May 28, 2015, DEP sent a memo to the Board of Trustees with Subject: Notice of Intent to Initiate Rulemaking & Publish Notice of Development of Rulemaking. DEP, as staff to the Board of Trustees, published a Notice of Development of Rulemaking for proposed amendments to Chapter 18-1, F.A.C., in the F.A.R. on July 1, Public Involvement: A workshop was held on July 22, 2015, but no members of the public attended and no comments were received through correspondence. JAPC Preliminary Review: Upon request from DEP, JAPC provided an initial review of the draft rules and sent DEP preliminary comments. While such preliminary comments do not restrict JAPC from providing further comment following publication of the Notice of Proposed Rule, DEP has addressed JAPC s initial comments. Summary of Proposed Changes Chapter 18-2, F.A.C., titled Management of Uplands Vested in the Board of Trustees, provides policies and criteria for requests to use uplands titled to the Board of Trustees. With this rulemaking effort, DEP seeks to amend four rules in this Chapter: Definitions. o Update definitions to reflect changes in body of the rule and to eliminate unnecessary definitions Policies, Standards, and Criteria for Evaluating, Approving or Denying Requests to Use Uplands. o Set forth when equitable compensation may be waived when leasing to a nonprofit corporation. o Update Land Use Plan and Management Plan requirements to reflect changes in Chapter , Laws of Florida (codified in section (13), F.S.), and remove unnecessary requirements.

5 Page Five Item 2, cont. o o Allows counties and municipalities to apply for an exchange of state-owned uplands for privately-owned property Procedures to Obtain Authorization. o Remove outdated references to Development of Regional Impact (DRI) and Preliminary Development Agreement (PDA) reviews. o Update application requirements for state agencies, state universities, and Florida College System institutions to require plan to be submitted to the Board of Trustees when applying to use uplands as required by changes in Chapter , Laws of Florida (codified in section (13), F.S.) Payments and Consideration. o Update rule to require appraisals when selling surplus land estimated to be valued over $500,000 as required by changes in Chapter , Laws of Florida (codified in section (6)(g), F.S.) Update the determination of value for private easements. o Clarification that there is no fees for public easements. o Update earnest money deposits for bids. (See Attachment 2, Pages 1-5) RECOMMEND APPROVAL Item 3 Jacksonville Port Authority Option Agreement/Restrictive Easement/Naval Station Mayport REQUEST: Consideration of (1) an option agreement to acquire a non-conservation base buffering restrictive easement over approximately 5.85 acres from Jacksonville Port Authority; and (2) designate the United States of America, by and through the Department of the Navy, Naval Station Mayport as the monitor of the restrictive easement. 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. COUNTY: Duval LOCATION: Section 30, Township 01 South, Range 29 East

6 Page Six Item 3, cont. CONSIDERATION: $630,000 APPRAISED BY SELLER S TRUSTEES Grainger APPROVED PURCHASE PURCHASE OPTION PARCEL ACRES (03/20/15) VALUE PRICE PRICE DATE JaxPort 5.85 $700,000 $700,000 $11,075,000* $630,000** February 11, 2016 (90%) * Seller assembled the property and purchased it October 1, 2007, June 11, 2008, and July 14, ** The appraisal stated the highest and best use of the property was Commercial/Industrial Waterfront Use and therefore was appraised based on a price per square foot which is $2.47 per square foot. Fee Value was appraised at $4.6 million. The Trustees purchase price for the easement is 14% of the fee value. STAFF REMARKS: The subject parcel is designated as a Tier 1 priority parcel in the Department of Economic Opportunity/Florida Defense Support Task Force s Military Base Protection Program. This program originated in the 2012 Legislative session (chapter , Laws of Florida) and was created to assist Florida s military bases with any potential encroachment challenges from incompatible development that may require the base to alter their mission. This program allows the Board of Trustees to acquire property, in fee or less-than-fee, around Florida s military bases. In 2014, the Legislature appropriated $7,489,975 (Chapter , section 38., Laws of Florida) for the acquisition of non-conservation land adjacent to MacDill Air Force Base, Naval Support Activity Panama City, and Naval Station (NS) Mayport for the purpose of securing and protecting these installations against encroachment. With reductions in defense spending and the possibility of the next round of Base Realignment and Closure (BRAC), possibly in 2017, any incompatible development, and noise or pollution complaints could make any of Florida s military bases vulnerable to BRAC action. This base employs approximately 10,700 personnel, both civilian and military, and is home to 17 ships and four squadrons, that reported in 2006 of having a $1.8 billion economic impact annually to the area. Naval Station (NS) Mayport Encroachment Impacts In NS Mayport's Encroachment Action Plan (EAP), the land use policy and planning, population projections and waterfront redevelopment were identified as having strong impacts on the future mission, security and training requirements for the installation. Additionally, based on the urban development and airborne noise analysis and assessments, the use of land within the NS Mayport's region of influence was considered as being not compatible. The acquisition of this easement will purchase property interests directly adjacent to the Accident Potential Zones (APZ) and near noise contours of 65 db day/night average noise levels (DNL) or greater. The APZ is an area at military airfields which is beyond the Clear Zone. The Clear Zone is the area at the end of a military runway that has the highest potential of a crash. APZ 1 is at the end of the Clear Zone and has the next highest potential of a crash right after takeoff and APZ 2 is at the end of APZ 1 and has the next highest potential of a crash because planes are still ascending

7 Page Seven Item 3, cont. and sometimes banking to the left or right to keep from flying over highly populated areas. The Federal Aviation Administration states that a maximum DNL sound level of 65 db is incompatible with residential communities. Communities in affected areas may be eligible for mitigation such as soundproofing. Acquisition of property interests, such as this one, prevents concerns with security (the Installation s force protection). It will also provide sufficient development restrictions through a restrictive easement to remove incompatible land uses, while allowing certain compatible land uses, such as shopping and recreational areas that would not only be economically beneficial to the community and blighted areas, but ensure the operational and mission capabilities of NS Mayport. The City of Jacksonville supports its local military bases and it support this acquisition of property interests to prevent incompatible development in order to protect NS Mayport and its economic benefit. Project Description Pursuant to section , F.S., the Department of Environmental Protection (DEP) is to acquire specific non-conservation lands for base buffering, for the purpose of securing and protecting the installations against incompatible encroachments. There are three ownerships with multiple parcels, located near three installations, designated as top priority. This is the first acquisition of the program and DEP is proposing to acquire a restrictive easement (Easement). DEP will acquire the Easement, pursuant to section 253, F.S., which provides guidelines for acquisition of nonconservation lands. The Jacksonville Port Authority owns certain waterfront properties and had developed a proposal to place incompatible development at the project site location. Both the location of Mayport Village and the revised overlay regulations may prove to be attractive to developers. As such, it is likely that interests for this area will continue. Eventually, new residential development is expected and poses an operational risk to NS Mayport. Easement Explanation The Easement was prepared in cooperation with the Navy and the owner. The Easement s allowable uses to the grantee are as follows: Rights of Grantor Entry - The right to enter onto the property at a reasonable time with five days notice to the grantor and grantee will not unreasonable interfere with grantor s or any lessee s use of the property; and Assign to Federal Agency - Grantee may assign the easement to any federal agency without written approval so long as easement rights remain the same. The grantor s prohibited uses are as follows: Height Restrictions - The construction or installation of anything with a height more than 52 feet above ground level (AGL) is prohibited, including trees, shrubs and vines which must be trimmed or cut down to meet this height restriction; Lighting - No direct lighting will be emitted above the horizontal plane. Lights, such as streetlights, must be angled downward;

8 Page Eight Item 3, cont. Other Operational and Training Hazards - Must notify the Navy and give 30 days notice for anything that may cause training or operational hazard, such as prescribed burns; Construction - Any construction must provide the Navy 30 days notice prior to permit submission and any tenants or subtenants must comply with the terms of the restrictive easement; Density - Development is limited to five units per acre and no structure shall exceed 52 feet AGL; and Cruise Ships - Includes all vessels used for recreational purposes capable of holding more than 600 passengers and shall not include ferries or fishing vessels. The grantor is allowed to develop the property for any and all lawful purposes subject to the restrictions above and any city/county restrictions or permitting stipulations. Mortgages and Liens/Encumbrances All mortgages and liens will be satisfied at the time of closing. Therefore, DEP staff will review, evaluate, and implement an appropriate resolution for these and any other title issues that arise prior to closing. Closing Information A title insurance commitment, a survey, and an environmental site assessment will be provided by the purchaser prior to closing. Monitor The subject parcel will be monitored by the Department of Navy, NS Mayport. Comprehensive Plan This acquisition is consistent with section (21), F.S., the Economy section of the State Comprehensive Plan. (See Attachment 3, Pages 1-34) RECOMMEND APPROVAL Item 4 RBY, LLC Recommended Consolidated Intent/Lease Modification/Private Easement REQUEST: Consideration of an application for (1) modification of an existing five-year sovereignty submerged lands lease to (a) extend the term through 2031 (16 years); and (b) increase the preempted area from 80,410 square feet to 121,202 square feet, more or less, for a 10-slip commercial docking facility; (2) a ten-year sovereignty submerged lands private easement containing 200,064 square feet (4.59 acres), more or less, for an access channel adjacent to the commercial docking facility; (3) authorization for the placement of approximately 531 linear feet

9 Page Nine Item 4, cont. of seawall; (4) authorization for the placement of approximately 3,131 linear feet of submerged sheet pile wall; and (5) authorization for the severance of approximately 97,518 cubic yards of sovereignty material. VOTING REQUIREMENT FOR APPROVAL: Three votes APPLICANT: LOCATION: RBY, LLC Lease No Application No Avenue C, Riviera Beach Lake Worth Lagoon, Palm Beach County CONSIDERATION: $90, representing (1) $12, as the initial annual lease fee computed at the base rate of $ per square foot, discounted 30 percent because 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., and discounted 10 percent for participation in the Clean Marina Program, pursuant to rule (1)(b)13.a., F.A.C.; (2) $1, as the one-time 25 percent surcharge payment for the additional preempted area, pursuant to rule (1)(b)3., F.A.C.; and (3) $76, as a one-time private easement fee, pursuant to rule (2)(b), F.A.C. The extended term lease surcharge is waived because the facility is designated as a Clean Marina in the Clean Marina Program, pursuant to rule (1)(b)13.b., F.A.C. The project qualifies for the waiver of the severance fee, pursuant to rule (3)(c)1., 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(s) 253 (and 258), 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. 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.

10 Page Ten Item 4, cont. Background On February 22, 2000, under delegation of authority, DEP executed a lease for a five-year term from December 1998 through December The lease was issued to Acme 1930 Corporation and authorized the preemption of 36,237 square feet of sovereignty submerged lands for the operation of a 26-slip docking facility and cradle lift to be used in conjunction with an upland yacht brokerage business. The lease has subsequently been renewed and modified by DEP, under delegation of authority. The lease modifications included: (1) the reconfiguration of structures within the lease boundary; (2) a change in upland ownership; and (3) the reduction of the preempted area, from 36,237 square feet to 35,834 square feet, based on a revised survey. On June 10, 2008, under delegation of authority, DEP executed a lease modification to combine two leases into one lease. This lease modification authorized the preemption of 80,410 square feet for the operation of a 57-slip docking facility and cradle lift for the mooring of recreational vessels in conjunction with an upland boat sales, service, storage, and yacht brokerage business. On August 13, 2014, under delegation of authority, DEP executed a five-year lease renewal, from December 2013 through December Project Detail The applicant is proposing to expand its existing 80,410-square-foot lease by increasing the preempted area by an additional 40,792 square feet, for a new total of 121,202 square feet. The applicant is proposing to reconfigure its existing commercial docking facility to provide repair services to mega yachts ranging in length from 100 to 330 feet, with drafts up to 15 feet. The proposed reconfiguration will reduce the number of slips from 57 to a maximum of 10. The applicant is requesting a 4.59-acre private easement to dredge a channel and turning basin, adjacent to the Intracoastal Waterway (ICW), to provide the mega yachts access from the ICW to its docking facility. In addition, the applicant is proposing to: (1) replace its existing 653-linear-foot seawall with a new 531-linear-foot seawall that will be installed in a modified configuration by excavating approximately 84 cubic yards of upland material; (2) install a vessel lift system (i.e. an elevator system capable of removing mega yachts up to 300 feet in length from the water); (3) install 1,172 linear feet of submerged sheet pile wall along the north side of the docking facility and access channel and 1,204 linear feet of submerged sheet pile wall along the south side of the docking facility and access channel; and (4) install 755 linear feet of submerged sheet pile wall around the perimeter edge of the new vessel lift. The applicant also owns a marina facility nearby in West Palm Beach, just south of this facility. The applicant has submitted an application requesting a modification to its West Palm Beach facility so that the two facilities can work together to provide repair services to the mega yachts. Once the two projects are completed, the majority of vessels will first check-in at the West Palm

11 Page Eleven Item 4, cont. Beach facility, where they will attain dockage and be prepared to be hauled out of the water and will then be towed north through the ICW into the Riviera Beach facility's haul-out slip. Upon completion of repair work at the Riviera Beach facility, the vessels will be placed back into the water and return to the West Palm Beach facility for dockage. The applicant is also requesting to modify the existing five-year lease by extending the term through 2031 (16 years) to be coterminous with its lease for the West Palm Beach facility. The applicant qualifies for the extended term, pursuant to rule (2)(a)1., F.A.C. A minimum of 90 percent of all the slips will be maintained on an open to the public, first-come, first-served basis and this requirement has been included as a special lease condition. Dredging The applicant is proposing to dredge approximately 97,518 cubic yards of sovereignty material from the proposed lease and easement areas to obtain adequate depths for navigation for the mega yachts proposed to use the docking facility. The applicant is proposing to dredge the: (1) basin of the docking facility to -17 feet mean low low water (MLLW); (2) vessel lift area to -40 to 45 feet MLLW; and (3) access channel and turning basin to -14 feet MLLW. In order to minimize environmental impacts, the turning basin and channel were significantly narrowed by imposing an operational restriction which limits entry/exit by the largest, deepest draft vessels to slack water periods at high tide. These large vessels shall require tug-assisted passage between the Port of Palm Beach turning basin and Riviera Beach facility. This minimization measure greatly reduces the total square feet of dredging area and allows for a shallower depth in the access channel. Because vessels will be docked at low tide at the facility, the basin will be dredged to -17 feet MLLW to account for the tidal difference between mean high high water and MLLW and ensure that vessels will not disturb or rest on the bottom in the basin. The applicant is proposing to use a portion of the dredge material to fill 5 acres of the Old Port Cove dredge hole as a beneficial use of the dredged material. The dredge hole to be filled is deeper than -10 feet MLW and approximately 33,495 cubic yards of dredge material will be needed to raise the elevation of the unfilled portion of the dredge hole to -8 feet MLW. The proposed fill will be graded to the existing adjacent areas at a 3:1 slope in order to achieve elevations suitable for seagrass growth. In addition, the applicant intends to pursue beneficial use of the remaining 64,023 cubic yards of dredged material by donating it to Palm Beach County for planned future restoration projects within Lake Worth Lagoon. The project qualifies for a waiver of the severance fee, pursuant to rule (3)(c)1., F.A.C., because the material will be placed on public property and used for public purposes. Mitigation Approximately 3.99-acres of seagrass and seagrass habitat will be permanently impacted as a result of the proposed dredging. In order to offset these impacts the applicant has conducted the following up front mitigation:

12 Page Twelve Item 4, cont. Little Munyon Island In 2006, the applicant purchased a privately-owned, partially submerged, acre parcel of land known as Little Munyon Island, within the Lake Worth Lagoon, as part of the mitigation for the 2006 Rybovich West Palm Beach Expansion ( ). The mitigation conducted at Little Munyon Island for the 2006 application consisted of the installation of a 1,080-linear-foot riprap breakwater to protect 9.48 acres of submerged lands for seagrass recruitment. At the time of the 2006 West Palm Beach application, it was identified that there was additional area for seagrass restoration at the southern portion of the privately-owned, submerged parcel. With DEP s concurrence, the applicant installed an additional 440 linear feet of riprap breakwater to protect an additional 6.62 acres of submerged lands for seagrass recruitment as upfront mitigation for a proposed future expansion at Riviera Beach. The riprap breakwater was fully constructed in 2009 and was monitored for three years for seagrass recruitment. In 2014, DEP formally determined that the mitigation had met success criteria. Old Port Cove Dredge Hole In addition, the applicant used the dredge material from the 2006 West Palm Beach Expansion to fill 6.82 acres of the dredge hole to a suitable elevation for seagrass recruitment (-8 feet MLW). The anoxic dredge hole was approximately -16 feet MLW which is too deep to support seagrass and also contained muck sediments which is not a suitable substrate for seagrass recruitment. The filling of the dredge hole was completed in 2008 and formally determined to meet success criteria in The Uniform Mitigation Assessment Method (UMAM) was used to evaluate the proposed impact area (3.99 acres of seagrass and seagrass habitat) as well as the two upfront mitigation areas (Little Munyon Island and Old Port Cove dredge hole) to confirm that the mitigation would offset the proposed seagrass impacts. Based on the analysis, the combined upfront mitigation areas provide more than enough mitigation with potential mitigation available for a future project with Rybovich. Private Easement A private easement is required for the proposed access channel. DEP s Bureau of Appraisal hired an independent appraiser to conduct an appraisal to determine the value of the easement and the enhanced value of the easement, pursuant to rule (2)(b), F.A.C. The applicant paid for the appraisal. DEP s Bureau of Appraisal accepted the conclusion of $76,000 for the easement value with no enhanced value. Noticing The lease modification request was noticed to property owners within a 500-foot radius of the project, pursuant to section , F.S., and rules (1)(m) and (3), F.A.C., and no objections were received. (See Attachment 4, Pages 1-39) RECOMMEND APPROVAL SUBJECT TO THE SPECIAL APPROVAL CONDITION, THE SPECIAL LEASE CONDITIONS, AND PAYMENT OF $90,038.14

13 Substitute Page Thirteen Substitute Item 5 Blickman Properties, Inc. (Sunglow Pier) Recommended Consolidated Intent/Lease Modification/Determination/Exception REQUEST: Consideration of (1) a determination that the expansion of the lease area which will incorporate non-water dependent structures is in the public interest pursuant to rule (1)(g), F.A.C.; (2) approval of the addition of 5,000 square feet, of which 1,934 square feet of the proposed expansion is to accommodate additional non-water dependent structures; (3) approval of an exception to a setback without obtaining a letter of concurrence referenced in rule (3)(d), F.A.C., from the affected riparian upland owner on the south side of the applicant s property; and (4) an application for a modification of a 25-year sovereignty submerged lands lease to contain a total of 19,132 square feet, more or less, for a commercial fishing pier with an over-water restaurant, marine retail (bait/gift shop), equipment storage, and two fish cleaning stations. VOTING REQUIREMENT FOR APPROVAL: Three votes APPLICANT: Blickman Properties, Inc., a/k/a Sunglow Pier Lease No Joint Coastal Permit Application No JC LOCATION: 3701 South Atlantic Avenue, Daytona Beach Shores Atlantic Ocean, Volusia County CONSIDERATION: $11, representing (1) $2, as the initial annual lease fee computed at the base rate of $ per square foot for a total of 17,198 square feet; (2) $6, (based on an appraisal) as the annual lease fee for 1,934 square feet associated with the non-water dependent uses (restaurant, bait/gift shop, restrooms, office); and (3) $1, as the one-time 25 percent surcharge payment for the additional 5,000 square feet, pursuant to rule (1)(b)3., 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 a Joint Coastal Permit required under chapter 161, F.S., and part IV of chapter 373, F.S., and 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 that require authorization to use sovereignty submerged lands. Background Sunglow Pier is a privately-owned wooden pier that has operated as a commercial fishing and sightseeing pier since its construction in The pier receives approximately 275,000 visitors per year. The applicant purchased the pier in 1970, sold it in 1978, and then repurchased it and began renovations in 1986.

14 Substitute Page Fourteen Substitute Item 5, cont. From 1987 through 1992, the former Department of Environmental Regulation (DER) issued permits for repair, reconstruction, and expansion activities related to the over-water restaurant and marine retail buildings. In 1988, the former Department of Natural Resources (DNR) granted a 5- year sovereignty submerged lands lease, later modified to a 25-year term, to construct and operate the activities authorized under the permits. Subsequent to the DER and DNR merger, the Department of Environmental Protection (DEP) issued permits in 1997 and 2001 to build a roof over the existing seating area, add additional bathrooms and storage room on top of the pier, and add a six-foot cantilevered deck on both the north and south sides of the pier. The deck permit was later modified to add a 651-square-foot deck. In 2012, the applicant applied for a Joint Coastal Permit and sovereignty submerged lands lease modification to expand the pier by 4,768 square feet but the application was withdrawn on August 6, A lease site inspection was conducted on August 10, 2015, and the facility was found to be in compliance. Project Detail Sunglow Pier is located on the Atlantic Ocean, in the City of Daytona Beach Shores, just south of Daytona Beach, and 6 miles north of Ponce Inlet. Currently, the pier is operating under Lease No , a 25-year lease that expires on April 26, 2038, which preempts 14,132 square feet of sovereignty submerged lands. The existing lease authorizes approximately 4,500 square feet of non-water dependent uses, including a restaurant, bathrooms, a bait/gift shop, and rod and tackle storage lockers. The applicant is seeking to preempt an additional 5,000 square feet of sovereignty submerged lands for the purposes of renovating the pier structure, expanding the restaurant and bathrooms, adding a small office, and providing additional covered and uncovered decking for pier patrons, for a new total preemption of 19,132 square feet. All of these areas will be either open to the public or will be used to provide service to the public. Not Contrary to the Public Interest Determination The proposed project is required to demonstrate that it is not contrary to the public interest, pursuant to Article X, Section 11 of the Florida Constitution and rule (1)(a), F.A.C. The applicant has provided reasonable assurance that the proposed project 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. Therefore, 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, pursuant to Article X, Section 11 of the Florida Constitution, chapter 253, F.S., associated rule 18-21, F.A.C., and the direction of the Board of Trustees.

15 Substitute Page Fifteen Substitute Item 5, cont. Public Interest Determination for Non-Water Dependent Activities Sunglow Pier is a commercial operation that provides the public with access to the waters of the Atlantic Ocean for dining, sightseeing and fishing. A fee is charged to access the fishing area of the pier, which is located seaward of the commercial restaurant and dining area. However, currently there are no fees charged for the upland parking or for sightseeing on the pier. In order to continue to provide these public services and maintain the operation and safety of the pier, the applicant is proposing expansions to previously-approved, non-water dependent uses. Pursuant to rule (1)(g), F.A.C., use of sovereignty lands for non-water dependent activities is allowed only if it is in the public interest based on a case by case evaluation. As stated in section (15),F.S., The Board of Trustees of the Internal Improvement Trust Fund shall encourage the use of sovereign submerged lands for water-dependent uses and public access. The proposed project will enhance the public access to, and use of, the ocean for fishing and sightseeing, will expand food service to tourists and locals, and will provide additional public restroom facilities for pier patrons and beachgoers. The applicant makes its restrooms available to the beach-going public at no charge, which provides a much-needed public restroom facility for the area. Continued public access to the restrooms will be assured through a special lease condition. Also, the existing pier if allowed to expand will have more and wider covered and uncovered decking that will provide greater access to the ocean experience for the disabled, who are unable to easily negotiate the beach environment. In addition, many people find the sun, sand, and exposure to the beach elements overwhelming, but can experience and enjoy the beach atmosphere from the more protected environment of the pier, including its sheltered back porch. The slight expansion is expected to provide 40 new additional jobs and provide a boost to the area s economy. DEP is of the opinion that the proposed expansion for non-water dependent activities is in the public interest, as it is an expansion of a previously-approved lease which included non-water dependent activities. The previously-approved lease was approved by the Board of Trustees on April 26, This proposed expansion will encourage both waterdependent uses and public access as referenced in section (15), F.S. Expansion of the non-water dependent activities is also necessary to provide sufficient revenue to finance the renovation and maintenance of the pier structure in order to protect the public safety. The routine pier maintenance requires at least $55,000 per year, assuming no major structural projects, and requires two full-time employees. The applicant is not eligible to receive any public funds to operate, maintain, or renovate the private pier, often cannot secure insurance for the pier, and is not eligible for Federal Emergency Management Agency disaster assistance. The proposed project is the subject of Joint Coastal Permit Application Number JC. As part of the review of this application, DEP reviewed and analyzed all potential environmental effects of the project. DEP has been provided reasonable assurance that the proposed expansion will not adversely affect the environment. There are no seagrasses or hardbottom resources in the project area, and the applicant has agreed to install window tinting and turtle lighting in order to further minimize any potential lighting impacts to sea turtles.

16 Substitute Page Sixteen Substitute Item 5, cont. Noticing/Interested Parties The lease modification request was noticed to property owners, within a 500-foot radius of the proposed lease boundary, and other interested parties, pursuant to rule (1)(m), F.A.C. Fourteen property owners were specifically noticed and no objections were received. Letters of Concurrence The lease modification request includes an expansion area that is within the 25-foot setback on both sides of the applicant s riparian lines. An applicant is excepted from those setbacks if it meets any of the requirements of rule (3)(d), F.A.C. The applicant received a letter of concurrence from the adjacent upland riparian owner to the north. However, the affected owner to the south initially was in agreement to sign a letter of concurrence if the applicant allowed the condominium owners certain privileges including, but not limited to, free dining at the pier restaurant. The applicant, in response, contacted the affected owner about reconsidering their demands but the owner would not agree with the request to sign a letter of concurrence. Based on the facts in this matter, DEP is recommending the Board of Trustees approve an exception to the setback without the letter of concurrence due to the applicant s minimal riparian area and the existing pier has historically (pre-rule) been within the 25-foot setback. (See Attachment 5, Pages 1-43) RECOMMEND APPROVAL SUBJECT TO THE SPECIAL LEASE CONDITIONS AND PAYMENT OF $11, Item 6 Big Bend Seagrasses Aquatic Preserve Management Plan REQUEST: Consideration of a request to approve the Big Bend Seagrasses Aquatic Preserve Management Plan. 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. COUNTIES: Wakulla, Jefferson, Taylor, Dixie, and Levy APPLICANT: Florida Department of Environmental Protection s Office of Coastal and Aquatic Managed Areas (CAMA) LOCATION: The Big Bend Seagrasses Aquatic Preserve (BBSAP) is the largest aquatic preserve in Florida, extending from Apalachee Bay southward to the Withlacoochee River. It includes portions of Wakulla, Jefferson, Taylor, Dixie, and Levy counties in Florida s big bend region.

17 Page Seventeen Item 6, cont. STAFF REMARKS: Overview BBSAP was designated by the Florida Legislature in 1985 and covers more than 984,000 acres of state-owned sovereign submerged lands. Under Chapter 258, Part II, F.S., aquatic preserves are set aside to be maintained in essentially natural condition for the benefit of future generations. This portion of the coast is unique in that it is an extensive area with no offshore barrier islands, where a number of rivers, creeks, and marshes discharge directly into the Gulf of Mexico. It is also distinctive in its karst geology, characterized by porous limestone rock which allows water to reach the surface in springs and disappear underground into the Floridan Aquifer. As a result of these mature karst features, numerous sinks, springs, caverns and underground corridors are exclusive to this area. BBSAP is most notable for the extensive seagrass beds and salt marshes that provide critical habitat to a multitude of marine species. These vital communities also help oxygenate the water column, stabilize sediments, recycle nutrients, and provide ideal conditions for high biodiversity and species richness. These communities are also home to several species of special concern such as the West Indian manatee and federally listed species such as the Leatherback sea turtle. In addition to a significant coastal area, BBSAP includes seven major rivers, listed from north to south the Wakulla, St. Marks, Aucilla, Econfina, Steinhatchee, Suwannee, and Waccasassa. The tributaries that feed these rivers receive spring discharge from the Floridan Aquifer System. Much of the freshwater entering local estuaries within BBSAP is delivered by way of numerous streams and tidal creeks originating from seeps, springs and wetland systems within drainage basins. The constant interplay between the surface and groundwater has created the stunning springs and sinks that are visited by thousands of tourists annually. BBSAP allows for significant public access and numerous recreational activities, while also supporting aquaculture leases, commercial and recreational fishing, and shellfish harvesting. It is estimated that more than $20 million in revenue is generated from commercial fishing and clam, oyster, and shellfish harvesting in and around the aquatic preserve annually. Management Plan Public Involvement The management plan is the result of several years of work from initial drafting to seeking the Board of Trustees final approval. The following opportunities for public participation were provided: One advisory committee meeting: June 21, Three public meetings: June 19, 2012, June 20, 2012, and April 11, 2014 (Acquisition and Restoration Council) to receive public comment on the draft management plan.

18 Page Eighteen Item 6, cont. Management Plan Overview The hallmark of Florida s Aquatic Preserve Program is that each site s natural resource management efforts are designed in direct response to unique local and regional issues. In this management plan, BBSAP characterizes its goals, objectives, and strategies that will set the framework for meeting the challenges presented by the site s management needs. The goals, objectives, and strategies employed for BBSAP are specific to the ecological and socioeconomic conditions present within and around this site. The management plan identifies the following goals: Water Quality Goals: o Further develop and improve the strategic, long-term water quality monitoring program within BBSAP that will assist with identifying and addressing items pertaining to the natural resources. o Identify specific and emerging water quality challenges related to nutrients, pollution, and environmental, contaminants, and with coordination from other agencies, develop a response strategy to these items. o Ensure the sustainability of scallop, fish, salt marsh, seagrass habitat, and other concerned species through the development of a tiered approach to water quality monitoring that integrates biological assessments and multiple tools to define a core set of baseline indicators to possibly explain causes and/or sources of any impairment within BBSAP. Management and Protection of Seagrasses Goal: o Manage seagrass communities through research and monitoring, education and outreach efforts, continued resource management and collaborative mapping efforts with other state agencies to effectively protect and maintain this habitat as a valuable, natural resource throughout BBSAP. Public Access and Use Goals: o Maintain a safe and natural environment for Big Bend s wildlife, habitats and user groups. o Promote low-impact, sustainable recreational opportunities without restricting access. Obstacles in Natural Resource Management Goals: o Document the natural resources in BBSAP. o Educate the public about the importance of BBSAP s history, natural resources, and cultural resources. Acquisition and Restoration Council The Acquisition and Restoration Council approved the following management plan at its April 11, 2014 meeting.

19 Page Nineteen Item 6, cont. The management plan can be accessed at Management_Plan.pdf or visit BBSAP s homepage at (click on Big Bend Seagrasses Aquatic Preserve Management Plan). (See Attachment 6, Pages 1-3) RECOMMEND APPROVAL Item 7 Wekiva River Aquatic Preserve Management Plan REQUEST: Consideration of a request to approve the Wekiva River Aquatic Preserve Management Plan. 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. COUNTIES: Lake, Orange, Seminole, and Volusia APPLICANT: Florida Department of Environmental Protection s Office of Coastal and Aquatic Managed Areas (CAMA) LOCATION: The Wekiva River Aquatic Preserve (WRAP), which includes parts of the Middle St. Johns River, are located in central Florida, approximately 20 miles north of downtown Orlando. STAFF REMARKS: Overview WRAP was created by the Florida Legislature in 1975 and amended in It includes approximately 64 miles of waterways (rivers, creeks, oxbows, and former river channels) and 850 acres of open water (primarily in Lake Beresford). The original boundaries included all the sovereign submerged lands in Wekiwa Spring Run and Wekiva River; parts of Rock Spring Run, Black Water Creek, and the Little Wekiva River; the 1985 expansion added 19 miles of the Middle St. Johns River (including Lake Beresford and several oxbows and dead-end channels). Ecology. Under Chapter 258, Part II, F.S., aquatic preserves are set aside to be maintained in essentially natural condition for the benefit of future generations. WRAP was designated because of its significant biological value. Due to the karst environments and latitude straddling two climatic zones, the aquatic preserve supports a unique combination of temperate and subtropical aquatic species. Approximately 77,000 acres within the Wekiva