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AGENDA BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND AUGUST 16, 2017 Attachments to the items below can be viewed at the following link: http://www.dep.state.fl.us/secretary/cab/public_notices.htm Item 1 Minutes Submittal of the Board of Trustees Minutes from the May 23, 2017 Cabinet Meeting. 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 http://www.dep.state.fl.us/secretary/cab/public_notices.htm) RECOMMEND APPROVAL Item 2 Charles Morgan, III, and Morgan Family Trust (Harbor Docks Restaurant)/ Nonwater Dependent Activities/Determination REQUEST: Consideration of a request (1) for a determination, pursuant to rule 18-21.004(1)(g), F.A.C., that it is in the public interest to allow nonwater dependent activities to occur on sovereignty submerged lands leased by the Applicants; and (2) to allow nonwater dependent, openair, over-the-water dining activities to be conducted on a 277 square feet of the Applicants existing structure. VOTING REQUIREMENT FOR APPROVAL: Three votes APPLICANTS: Charles Morgan, III, and Morgan Family Trust (d/b/a Harbor Docks Restaurant, Inc.) Lease No. 460520751 LOCATION: 538 Harbor Boulevard, Destin Old Pass Lagoon, Okaloosa County CONSIDERATION: $2.00 per square foot, based on the appraised market rental value, will be applied annually to the proposed 277 square feet, more or less, associated with the nonwater dependent activity, pursuant to rule 18-21.011(1)(b)6., F.A.C. STAFF REMARKS: Rule 18-21.004(1)(g), F.A.C., provides that activities on sovereignty lands shall be limited to water dependent activities only unless the Board of Trustees determines that it is in the public interest to allow an exception as determined by a case-by-case evaluation. The rule was modified on August 1, 1983, to allow public projects which are primarily intended to provide access to and use of the waterfront to contain minor uses which are not water dependent if they are: (1) located in areas along seawalls or other nonnatural shorelines; (2) located outside of aquatic preserves or Class II waters; and (3) the nonwater dependent uses are incidental to the basic purpose of the project, and constitute only minor nearshore encroachments on sovereignty lands.

Page Two Item 2, cont. Effective July 1, 2016, section 253.03(15), F.S., which encourages the use of sovereignty submerged land for public access and water dependent uses, was amended to include related minimal secondary nonwater dependent uses. The over-the-water dining activities under consideration involve a nonclimatized area with minimal secondary nonwater dependent use of placing tables and chairs on an existing structure over sovereignty submerged land for dining activities. Background The restaurant has been serving food along Old Pass Lagoon since 1979. The Applicants were authorized to construct and operate exclusively a docking facility for the upland restaurant in 1984. The Applicants are currently under a temporary use agreement and they are current on their fees and the facility is open to the public. Project Detail The Applicants are requesting to be allowed to provide the public with an over the water dining experience for 277 square feet of the existing structure. The area is not enclosed and consists of tables and chairs with overhang coverage. The nonwater dependent structure is not a public project (public projects include government owned/operated structures/activities); however, the project conforms to the three criteria listed in rule 18-21.004(1)(g), F.A.C., for public projects. The structure and nonwater dependent activities are along a seawall, constitute only minor nearshore encroachments on sovereignty submerged lands, and are not located in an aquatic preserve or Class II waters. If approved, the lease for the Applicants will define the nonwater dependent structure in a survey so that it cannot be improved or expanded without Board of Trustees approval. Lease Fees Rule 18-21.011(1)(b)6., F.A.C., provides that the annual lease fees for nonwater dependent uses shall be negotiated considering the appraised market rental value of the riparian uplands. A market rental value appraisal was completed to obtain a basis for negotiating annual lease fees. The Department of Environmental Protection (DEP) recommends that the nonwater dependent structure, which involves minimal secondary nonwater dependent use as stated in section 253.03(15), F.S., should be assessed at a negotiated nonwater dependent rate of $2.00 per square foot. The remaining lease area should be assessed the standard water dependent rate. Approval of this item does not supersede or eliminate any local, state, or federal permitting requirements. Public Interest DEP is recommending the Board of Trustees find the project meets the public interest requirement because the proposed structure and associated nonwater dependent, open-air, over-the-water dining activities will continue to provide public access and enhance public enjoyment of sovereignty submerged lands without impairing traditional access. Additionally, it does not entail a significant adverse impact to sovereignty submerged lands and resources. It will also continue to provide an economic benefit to the Applicants and potential secondary economic benefits to nearby businesses.

Page Three Item 2, cont. Noticing This request is not subject to noticing pursuant to section 253.115, F.S. 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 1-2) RECOMMEND APPROVAL Item 3 Santa Rosa County/Navarre Beach Fishing Pier/Nonwater Dependent Activities/ Determination REQUEST: Consideration of a request (1) for a determination, pursuant to rule 18-21.004(1)(g), F.A.C., that it is in the public interest to allow nonwater dependent activities to occur on sovereignty submerged lands leased by the Applicant; and (2) to allow the placement of nonwater dependent portable restroom facilities on the Navarre Beach Fishing Pier. VOTING REQUIREMENT FOR APPROVAL: Three votes APPLICANT: Santa Rosa County LOCATION: 8579 Gulf Boulevard, Navarre Beach Gulf of Mexico, Santa Rosa County CONSIDERATION: None, pursuant to rule 18-21.011(1)(b)7.a., F.A.C. STAFF REMARKS: Rule 18-21.004(1)(g), F.A.C., provides that activities on sovereignty lands shall be limited to water dependent activities only unless the Board of Trustees determines that it is in the public interest to allow an exception as determined by a case-by-case evaluation. Effective July 1, 2016, section 253.03(15), F.S., which encourages the use of sovereignty submerged land for public access and water dependent uses, was amended to include related minimal secondary nonwater dependent uses. The Department of Environmental Protection (DEP) considers placement of the portable restroom facilities to be a minimal secondary non-water dependent use.

Page Four Item 3, cont. Background The Navarre Beach fishing pier was originally an 800-foot-long wooden structure which opened in April 1963. Over the years, the pier was rebuilt into a concrete structure but received extensive damage from multiple hurricanes and was eventually removed to make way for a replacement. The new structure was completed in 2010 and has 32,000 square feet of accessible wooden surface atop 150 two-foot square concrete piles, is 30-feet wide and 30 feet above the water. At 1,545 feet in length, it is nearly twice the length of the original pier and the longest fishing pier in Florida and the Gulf of Mexico. Amenities include 16 handicapped accessible railing locations, seven potable water spigots, and a 3,800-square-foot octagonal area at the terminus for fishing and viewing. Over 164,000 visitors utilized the public pier last year. Project Detail Currently, there is a public restroom facility located on the adjacent uplands; however, because of the considerable length of the pier, the Applicant is requesting to provide up to two portable Americans with Disabilities Act (ADA) compliant restroom facilities for public use on the pier. The approximately 110-square-foot portable restroom facilities will be maintained by the pier staff and removed during inclement weather such as tropical storms. The portable restroom facilities would be subject to the Florida Department of Health s rule 64E-6.0101, F.A.C. Approval of this item does not supersede or eliminate any local, state, or federal permitting requirements. Public Interest DEP is recommending the Board of Trustees find the project meets the public interest requirement because the proposed ADA compliant, portable restroom facilities will provide sanitary accommodations and enhance public enjoyment of sovereignty submerged lands without impairing traditional access or impacting sovereignty submerged lands. Additionally, they do not entail a significant adverse impact to sovereignty submerged lands and resources. Noticing This request is not subject to noticing pursuant to section 253.115, F.S. 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 3, Pages 1-3) RECOMMEND APPROVAL

Page Five Item 4 Point of Kissimmee, LLC, Acceptance of Offer/Sale and Purchase Contract/ Determination REQUEST: Consideration of (1) a determination that an approximately 14.8-acre vacant parcel of state-owned, non-conservation land, is surplus and is no longer needed, pursuant to section 253.0341(1), F.S.; (2) acceptance of an offer in the amount of $2,690,025 submitted by Point of Kissimmee, LLC, for the purchase of the approximately 14.8-acre vacant parcel of state-owned, non-conservation land; and (3) approval of a contract for sale and purchase of the approximately 14.8-acre vacant parcel of state-owned, non-conservation land to Point of Kissimmee, LLC. VOTING REQUIREMENT FOR APPROVAL: Three votes COUNTY: Osceola Bid #DSL-ITO-17-007 APPLICANT: Point of Kissimmee, LLC LOCATION: Section 09, Township 25 South, Range 29 East CONSIDERATION: $2,690,025 to be deposited in the Internal Improvement Trust Fund STAFF REMARKS: Background On August 31, 1956, the State of Florida purchased a 40-acre tract of land for the State Department of Agriculture, predecessor to the Florida Department of Agriculture and Consumer Services (DACS), Florida Livestock Board for use as a diagnostic laboratory. On December 12, 1972, DACS conveyed the 40-acre tract to the Board of Trustees, pursuant to Chapter 67-269 and Chapter 67-2236, both Acts of 1967 (section 253.03(6), F.S.). The 40-acre tract was leased to DACS on April 26, 1973, under Board of Trustees Lease No. 2657. The 40-acre tract is divided north and south by West Carroll Street. The Bronson Animal Disease Diagnostic Laboratory is located on the northern portion. DACS has requested that the southern vacant 14.8-acre parcel (subject parcel) be released from its lease. Statutory Requirements Pursuant to section 253.0341(1), F.S., to surplus non-conservation land, the Board of Trustees must determine that the land is no longer needed. Pursuant to section 253.0341(4), F.S., 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 Board of Trustees. DEP offers the following to assist the Board of Trustees in making an affirmative determination that the subject parcel is no longer needed: DACS, 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 DACS findings, completed the required surplus lands process, and recommends that the subject parcel be disposed of by the Board of Trustees.

Page Six Item 4, cont. Noticing Pursuant to sections 253.034, and 253.111, F.S. (2015), 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 government (noticing was completed prior to July 1, 2016). No interest was expressed by any noticed educational or governmental entity. Bid and Invitation to Offer History DEP contracted with CBRE, Inc. (CBRE) to assist with the marketing and sale of the subject parcel. A bid was posted on March 18, 2016, until the opening date of June 16, 2016. CBRE posted the bid on CoStar, Loopnet, and its own corporate website all of which provided property information, maps, history, disclosures, bid information, and the minimum bid amount of $3,000,000. CBRE also placed signs on the subject parcel and sent emails to prospective buyers. Numerous follow-up communications and site tours with prospective buyers have been conducted by CBRE during the marketing period. The subject parcel was also posted on DEP s surplus land website from March 18, 2016 until the bid opening date of June 16, 2016. DEP sent notification of the bid through GovDelivery to real estate offices, developers, investment companies, and other parties that have requested to receive notification of surplus land notices. No bids were received. On June 28, 2016, the subject parcel was placed back on the market with a minimum bid amount of $2,850,000 and a bid opening date of September 22, 2016. No bids were received. On October 17, 2016, the subject parcel was placed back on the market with a minimum bid amount of $2,640,000 and a bid opening date of December 14, 2016. No bids were received. On January 12, 2017, the subject parcel was placed back on the market as an Invitation to Offer with a minimum offer amount of $2,640,000 and an offer opening date of February 22, 2017. The required deposit amount was reduced from 10 percent of the offer amount to $50,000. One non-responsive offer was received in the amount of $300,000 and returned. On April 19, 2017, the subject parcel was placed back on the market as an Invitation to Offer with a minimum offer amount of $2,640,000 and an offer opening date of June 6, 2017. The required deposit amount was again reduced to the amount of $50,000. In addition, a due diligence period for preliminary zoning approval was provided for in the contract to assist with marketability. One offer was received from Point of Kissimmee, LLC, in the amount of $2,690,025. The Buyer indicated that it is planning a mixed use residential/commercial development for the subject parcel. Buyer anticipates that the construction project will provide numerous temporary jobs in the construction industry and the development will provide numerous full-time positions.

Page Seven Item 4, cont. The 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 Board of Trustees or other parties on behalf of the Board of Trustees. 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 real estate brokerage fee to CBRE. Comprehensive Plan Consideration of the status of local government comprehensive plan was not made for this item. DEP has determined that the proposed action to surplus property is not subject to the local government planning process. (See Attachment 4, Pages 1-9) RECOMMEND APPROVAL Item 5 Venture Four, LLC, Option Agreement (Camp Lonesome Ranch)/Conservation Easement/Big Bend Swamp/Holopaw Ranch Florida Forever Project REQUEST: Consideration of an option agreement to acquire a conservation easement over approximately 1,118 acres within the Big Bend Swamp/Holopaw Ranch Florida Forever project from Venture Four, LLC, also known as Camp Lonesome Ranch. 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: Osceola LOCATION: Sections 08, 09, 16 and 17, Township 28 South, Range 32 East CONSIDERATION: $2,600,000 APPRAISED BY SELLER S TRUSTEES Roper Holden APPROVED PURCHASE PURCHASE OPTION PARCEL ACRES (05/05/17) (01/10/17) VALUE PRICE PRICE DATE Venture 1,118 $3,000,000 $3,130,000 $3,130,000 $11,219,600* $2,600,000** 120 days after Four, LLC (83%) BOT Approval *The Seller, as part of a partnership, acquired a 7,056-acre ranch, known as Camp Lonesome, in March 2004. In 2007, the Seller conveyed 2,000 acres to Osceola County to create a public conservation area, which is currently known as Camp Lonesome Conservation Area. This area contains the headwaters to Lonesome Camp Swamp. **$2,326 per acre.

Page Eight Item 5, cont. STAFF REMARKS: The subject property is located within the Big Bend Swamp/Holopaw Ranch Florida Forever project and is ranked number 9 in the Florida Forever Less-Than-Fee projects category of the 2017 Priority List, which was approved by the Board of Trustees on June 14, 2017. The project contains 56,709 acres, of which 10,086 acres have been acquired or are under agreement to be acquired. If the Board of Trustees approves this agreement, 46,623 acres, or 82 percent of the project, will remain to be acquired. Project Description Many kinds of wildlife live in the expanses of palmetto prairies, pine flatwoods, and cypress swamps in Osceola County. The Big Bend Swamp project will acquire certain rights from landowners to maintain a link of natural lands between the Bull Creek and Three Lakes Wildlife Management Areas, and help to ensure the survival of crested caracara, red-cockaded woodpeckers, sandhill cranes, and other wildlife that require these large natural areas. This project may also help complete the Florida National Scenic Trail, a statewide non-motorized trail that crosses a number of Florida Forever project sites. Property Information The subject property is part of an approximately 4,613-acre ranch, known as Camp Lonesome. The ranch is located in central Osceola County, northeast of the Florida Turnpike and about 15 miles from St. Cloud. The ranch is part of a multi-agency conservation easement acquisition partnership in the Everglades Headwater National Wildlife Refuge. The partnership includes the Department of Environmental Protection (DEP), Department of Agriculture and Consumer Services/Florida Forest Service (FFS), and U.S. Fish and Wildlife Service (USFWS). This partnership allows multiple agencies to participate and maximize funding dollars. On March 2, 2016, the Board of Trustees approved DEP s option agreement to acquire a conservation easement over 1,189 acres of the ranch. If the Board of Trustees approves this option agreement, the entire ranch will be protected through conservation easements either with DEP, FFS, or USFWS, except for approximately 185 acres, which includes an existing homesite. The ranch has been in operation for over 50 years and is managed as a cow-calf operation, with a focus on maintaining landscape sized ecosystem functionality. Venture Four has a strong desire to continue the historic ranching operation and pasture management program, while simultaneously improving the ranch with energy efficient technology and protecting the extensive native ecosystem. Venture Four s goal is to pass the ranch on to the next generation ensuring the continued success of the ranching operation for years to come. The ranch is adjacent to Osceola County s Camp Lonesome Conservation Area and contains wetlands and sloughs that drain into Lake Marion and eventually the Kissimmee River System. The high-quality basin, functioning hydrology of the wetlands, and intact dry prairie and pine flatwoods, combined with the high quality of the agriculture operations, are excellent examples of the types of conservation easements that are important to this area of the state.

Page Nine Item 5, cont. Prohibited Uses Under the proposed conservation easement, the subject 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 trash, waste, hazardous materials, and soil will be prohibited; Exploration by the grantor for and extraction of oil, gas, minerals, peat, muck, limestone, etc., by means of surface exploratory and extractors operations will be prohibited, except as reasonably necessary to combat erosion or flooding or except as necessary and lawfully permitted for the conduct of permitted activities; Activities detrimental to drainage, flood control, water conservation, erosion control, soil conservation or fish and wildlife preservation will be prohibited, unless needed for maintenance as provided in the easement under Article V. (A), (E) and (H); Acts or uses detrimental to the preservation of any historical or archaeological area will be prohibited; The removal, destruction, cutting, trimming, mowing, alteration, or spraying with biocides of trees, shrubs, or other natural vegetation will be prohibited, unless needed for conservation purposes, as provided in the easement under Article V. (G) and (H); There shall be no planting of nuisance exotic or non-native plants; Commercial and industrial activities will be prohibited, except as may be incidental to the exercise of grantor s reserved rights, as specifically provided for in Article V.; New construction or placing of temporary or permanent structures or buildings on the property will be prohibited except as may be necessary for maintenance, normal operation, or emergency situations or as permitted in Article V. (E); Construction of new roads or jeep trails will be prohibited except as associated with restoration activities allowed under the provisions of Article V. of the easement; The operation of motorized vehicles will be prohibited except on established trails and roads unless (1) necessary to protect or enhance the conservation values of the property; and (2) for emergency purposes; Current agricultural uses shall not be converted to more intense agricultural uses; Actions or activities that may be expected to adversely affect threatened or endangered species is prohibited; Subdivision of the property is prohibited; Signs, billboards, or outdoor advertising is prohibited except signs designating the property as conservation lands protected by the State of Florida; Commercial water wells on the property are prohibited; There shall be no commercial timber harvesting; and There shall be no mitigation bank established on the property.

Page Ten Item 5, cont. Owner s Rights Retained The proposed conservation easement will allow the owner to retain certain rights. The summary of owner s rights includes, but is not limited to, the following: The right to observe, maintain, photograph, fish, hunt, and introduce and stock native fish or wildlife, to use the property for non-commercial, passive, resource-based recreation not inconsistent with the purpose of the easement. In addition, the owner reserves hunting and fishing rights related to the property and may lease and sell privileges of such rights; The right to conduct controlled and prescribed burns with proper authorization; The right to mortgage the property; The right to contest property taxes, appraisals and assessments; The right to continue to use, maintain, repair, and reconstruct but not relocate or enlarge all existing buildings as depicted on the Baseline Documentation Report (BDR); The right to exclusive use of improvements depicted on the BDR; The right to continue existing agricultural practices as depicted in the BDR and the use of commonly accepted fertilizers, pesticides, and herbicides using best management practices (BMP); The right to host relocated endangered or threatened species, or species of special concern, that are native to the State of Florida; The right to maintain a commercial cattle operation in accordance with BMPs; The right to conduct eco-tours over the property; and The easement runs with the land and will be included in any sale of the property. Mortgages and Liens All mortgages and liens will be satisfied at the time of closing. On June 22, 1999, the Board of Trustees 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 will review, evaluate, and implement an appropriate resolution for any title issues that arise prior to closing. Closing Information A title insurance commitment, environmental site assessment, and a baseline documentation report will be provided by the buyer prior to closing. A survey will be provided by the seller and the buyer will reimburse the seller up to $25,000. Management The subject property will be monitored by DEP s Office of Environmental Services (OES) as a cow/calf operation based on the Baseline Documentation Report and according BMPs. OES currently monitors 120 conservation easements for 225,244 acres. If approved, this will be the 121st conservation easement acquired, increasing the total acreage under conservation easement by DEP to 226,362 acres.

Page Eleven Item 5, cont. Comprehensive Statement This acquisition is consistent with section 187.201(9), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan. (See Attachment 5, Pages 1-48) RECOMMEND APPROVAL Item 6 Open Space Institute Land Trust, Inc., Option Agreement/Managing Agency Designation/Management Policy Statement Confirmation/Triple Diamond Florida Forever Project REQUEST: Consideration of (1) an option agreement to acquire approximately 1,992 acres within the Triple Diamond Florida Forever project from Open Space Institute Land Trust, Inc.; (2) designation of the Department of Agriculture and Consumer Services, Florida Forest Service, as the managing agency; and (3) confirmation of the management policy statement. 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: Okeechobee LOCATION: Sections 11 through 14, Township 34 South, Range 32 East CONSIDERATION: $4,200,000 APPRAISED BY SELLER S TRUSTEES String Holden APPROVED PURCHASE PURCHASE OPTION PARCEL ACRES (05/18/17) (05/18/17) VALUE PRICE PRICE DATE Wold LLC/ 1,992 $4,750,000 $4,915,000 $4,915,000 $* $4,200,000** 120 day after OSI (85%) BOT Approval *Triple Diamond Ranch is 7,998 acres. The Wold family has owned the property since 1976 and acquired the entire ranch for $2.5 million. The current Wold owners acquired it in 1999. Open Space Institute (OSI) currently has approximately 4,000 acres of the ranch under contract. **$2,108 per acre. STAFF REMARKS: The subject parcel is located within the Triple Diamond Florida Forever project and is ranked number 8 in the Florida Forever Critical Natural Lands project category of the 2017 Priority List, which was approved by the Board of Trustees on June 14, 2017. The project contains 7,998 acres, of which 4,000 acres have been acquired or are under agreement to be acquired. If the Board of Trustees approves this agreement, 3,998 acres or 50 percent of the project will be acquired.

Page Twelve Item 6, cont. Project Description The acquisition of this project would preserve significant dry prairie, important in the long-term protection of this endemic natural community and the rare species that it supports, as well as provide recreational opportunities. Additionally, preserving this intact and well-managed landscape would allow for the protection and management of thousands of acres of additional high quality habitats in an area of Florida known for its rare vertebrate wildlife, globally imperiled natural communities, and significant hydrological values. This project is bordered on the north by the Kissimmee River Prairie Preserve State Park. Other public lands in the near vicinity include Avon Park Air Force Range, Bombing Range Ridge, the Kissimmee River to the west, and Fort Drum Marsh Conservation Area and Blue Cypress Conservation Area to the east. The Kissimmee-St. Johns River Connector Florida Forever project is also located within seven miles east of the property. Triple Diamond, along with existing conservation lands, would contribute to a large, contiguous landscape-sized protection area of more than 200,000 acres. Property Information The subject parcel is located within the Everglades Headwaters National Wildlife Refuge (EHNWR) and Avon Park Air Force Range s Military Influence Planning Area II boundaries. Additionally, the Kissimmee Prairie State Park is adjacent to the property to the north, U.S. Fish and Wildlife Service (USFWS) will be the future owner to the east, and there are federal wetlands reserve conservation easements to the west. Memorandum of Agreement On June 2, 2017, the Department of Environmental Protection (DEP) entered into a Memorandum of Agreement (MOA) with Open Space Institute Land Trust, Inc. (OSI). OSI, founded in 1974, is a land conservation non-profit organization based out of New York. OSI has the ability to leverage donated funds to bridge the gap between property owners and government entities to acquire conservation land that protects critical open space habitats, recreation areas, family farms, and historic sites. Pursuant to the MOA, OSI negotiated an option to purchase approximately 4,000 acres from Elaine J. Wold, LLC, and Keith C. Wold, LLC. On July 19, 2017, OSI s Board approved the acquisition of the 4,000 acres. OSI intends to sell the east half of the 4,000 acres to USFWS and the west half (subject parcel) to the Board of Trustees. If the Board of Trustees approves the acquisition of the subject parcel, OSI will acquire the 4,000 acres from the Wolds and subsequently convey title to the subject parcel to the Board of Trustees. This project will represent a successful public/nonprofit partnership, and a multi-agency effort, to protect property within EHNWR.

Page Thirteen Item 6, cont. Mortgages and Liens All mortgages and liens will be satisfied at the time of closing. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to the 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 will review, evaluate, and implement an appropriate resolution for any title issues that arise prior to closing. Closing Information Pursuant to the MOA, a title insurance commitment, survey, and environmental site assessment will be provided by the seller prior to closing and reimbursed by the buyer. At closing, an access easement will be granted to the Board of Trustees across the eastern portion of the 4,000 acres. Managing Agency Pursuant to section 259.032(7)(d), F.S., DEP recommends that the Board of Trustees designate the Department of Agriculture and Consumer Services, Florida Forest Service (FFS) as the managing agency for the subject parcel. FFS utilizes a multiple use management regime on all environmental lands it manages. The subject parcel will be managed as a working Florida ranchland with an emphasis toward protecting and maintaining native flora and fauna together with providing passive recreational opportunities. It also includes hunting and specialty hunts such as Operation Outdoor Freedom and youth hunts. Management Policy Statement Section 259.032(7)(d), F.S., requires that the Board of Trustees, concurrent with its approval of the initial acquisition agreement within a project, evaluate and amend, as appropriate, the management policy statement for the project as provided by section 259.035, F.S., consistent with the purposes for which the lands are acquired. DEP recommends that the Board of Trustees confirm the management policy statement as follows: The primary goals of managing the Triple Diamond Ranch are to protect and manage thousands of acres of additional high quality habitats in an area of Florida known for its rare vertebrae wildlife, globally imperiled natural communities, and significant hydrological values. Comprehensive Statement This acquisition is consistent with section 187.201(9), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan. (See Attachment 6, Pages 1-39) RECOMMEND APPROVAL

Page Fourteen Item 7 Whitaker Aquaculture Lease Modifications/Big Bend Seagrasses Aquatic Preserve REQUEST: Approval to (1) modify three existing, two-acre, ten-year sovereignty submerged land aquaculture leases to allow use of the water column; and (2) authorize the Florida Department of Agriculture and Consumer Services (FDACS) to modify the remaining bottom leases within Corrigan s Reef Aquaculture Use Zone (AUZ) and Gulf Jackson AUZ should the leaseholder request use of the full water column and FDACS determines the request meets all rule and statutory requirements. VOTING REQUIREMENT FOR APPROVAL: Three Votes LOCATION: Big Bend Seagrasses Aquatic Preserve, Suwanee Sound and Waccasassa Bay, Levy County, Florida APPLICANT: Bruce Whitaker CONSIDERATION: An annual fee of $86.92, 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 18-21.022, F.A.C. The annual fee and surcharge collected will be deposited in the General Inspection Trust Fund, pursuant to sections 597.010(5)(b) and (7), F.S. STAFF REMARKS The leases are located in the Big Bend Seagrasses Aquatic Preserve in Levy County. The lessee is requesting consideration by the Board of Trustees to modify the special lease conditions of three existing aquaculture bottom leases to allow use of the full water column, pursuant to section 253.68(1), F.S. The lessee intends to utilize floating cages to position oysters in the most nutrient rich part of the water column, eliminate predation by the commonly found bottom oyster predators and make bio-fouling of the cage and the oyster controllable. The proposed gear and activity are covered under the FDACS general permit from the United States Army Corps of Engineers. The lessee is a current submerged land leaseholder and Aquaculture Certificate of Registration holder. He is compliant with the terms and conditions of his existing leases and Aquaculture Best Management Practices. Two of the leases are located in Corrigan s Reef AUZ, which is comprised of 39, two-acre parcels. The third lease is located in Gulf Jackson AUZ, which is comprised of 110, two-acre parcels. Previously, the Board of Trustees approved the modification of three parcels in Gulf Jackson AUZ, one of which was never converted, to allow use of the full water column. In addition to the request for this modification, FDACS is also requesting Board of Trustees authorization to grant water column modifications for the remaining 106 bottom leases in Gulf Jackson AUZ and the remaining 37 bottom leases in Corrigan s Reef AUZ should the leaseholders request this use and FDACS determines the request meets all rule and statutory requirements.

Page Fifteen Item 7, cont. Agency Review FDACS has reviewed the applications for completeness and determined that the proposed modifications and associated aquaculture activities will not result in adverse impacts to seagrasses, existing shellfish beds, natural reefs or other sensitive habitats. In addition, FDACS has coordinated the review of the applications with the Florida Department of Environmental Protection, the Florida Fish and Wildlife Conservation Commission, the Florida Department of State s Division of Historical Resources, and the Levy County Board of County Commissioners, pursuant to rule 18-21.021, F.A.C. Special Conditions All existing standard lease conditions will remain unchanged, including the remainder of the lessee s ten-year renewable term. 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. The leaseholder will be required to obtain a Private Aids to Navigation permit from the United States Coast Guard for each AUZ to install associated lighting and signage to aid boaters with navigation. 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 258.42(1)(b), F.S.] Accordingly, FDACS recommends that the Board of Trustees find that the lease modifications are in the public interest, as set forth in statute. Noticing The proposed lease modifications were noticed pursuant to section 253.70, 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. FDACS has determined that the proposed action is not subject to the local government planning process. (See Attachment 7, Pages 1-10) RECOMMEND APPROVAL

Page Sixteen Item 8 Webb Aquaculture Lease Modifications REQUEST: Approval to modify the special lease conditions of eight existing, ten-acre, ten-year sovereignty submerged land aquaculture bottom leases to authorize the use of a mechanical harvesting device, pursuant to section 597.010(17), F.S. VOTING REQUIREMENT FOR APPROVAL: Three votes LOCATION: West Bay, Bay County, Florida APPLICANT: Webb's Oyster Point, LLC STAFF REMARKS: Background Section 597.010(17), F.S., was revised in 2016 to provide guidance for the use of a dredge or mechanical harvesting device for harvesting shellfish from sovereign submerged land aquaculture leases. Pursuant to section 597.010(17)(c), F.S., the Board of Trustees may authorize the use of a mechanical harvesting device as a special lease condition if the use of the mechanical harvesting device does not adversely impact the public health, safety, or welfare of adjacent natural resources. Section 597.010(17)(c), F.S., requires the adoption of Aquaculture Best Management Practices (BMPs) for the use of the mechanical harvesting device prior to Board of Trustees authorization. The BMPs have been adopted, pursuant to Chapter 120, F.S., and incorporated into rule 5L-3.004, F.A.C. Project Details The eight aquaculture bottom leases are located in West Bay and were originally approved by the Board of Trustees on November 11, 2014 and December 6, 2016. The lessee is now requesting authorization, pursuant to section 597.010(17)(c), F.S., to use a mechanical harvesting device to harvest oysters from the eight leases. The lessee has placed over 10,000 cubic yards of cultch material on the three leases that were approved in 2014. Oysters have colonized the material in those locations and are growing well. In the near future, the lessee plans to cultch the five leases that were approved in 2016, with approximately 3,330 cubic yards of cultch material per lease. As part of its review, FDACS conducted resource assessments of the parcels and determined the buffers between the lease sites and seagrasses, which range from 150 feet to 500 feet, are sufficient distances so not to adversely impact the resources. FDACS will, however, be monitoring the harvesting activities for impacts to water quality or submerged resources. The lessee is a current submerged land leaseholder and Aquaculture Certificate of Registration holder and is compliant with the terms and conditions of its existing leases and Aquaculture BMPs. Mechanical Harvesting Device The typical oyster harvesting device is one of the simplest forms of mechanical harvesting, using only the forward propulsion of the surface vessel to pull the harvesting device across the lease. Harvesting is accomplished by the frame raking and lifting the oysters, which allows them to tumble back into the collecting bag. The metal frame is triangular in shape, with a lower bar that

Page Seventeen Item 8, cont. rakes the surface of the lease bottom. A mesh bag is attached to the frame to catch live oysters as the device is pulled over the cultch material on the lease bottom. The lower bar of the frame may be fitted with teeth that assist the raking action and lift the oysters and loose shell into the collecting bag. The triangular frame is generally about four feet wide at the base and up to five feet in length. The mesh collecting bag attached to the frame is made of heavy gauge mesh, wire or chain. Harvesting devices are typically deployed from the side of a surface vessel. When the collecting bag is full, the device is brought aboard the vessel and dumped on the deck or a culling board where live market-size oysters are separated from small and dead oysters and shell. Tow times are typically of short duration but are dependent upon the abundance of live oysters on the lease. Sorting or culling takes place on the operating vessel, and juvenile oysters and dead oyster shell are returned to the lease as seed stock and cultch to maintain the lease bottom as a viable oyster growing area. The use of a mechanical harvesting device reportedly can increase potential production, harvesting effectiveness and efficiency, and contribute positive economic impacts for the oyster industry and local community. Agency Review FDACS has reviewed the application for completeness and determined that the proposed modifications and associated aquaculture activities will not result in adverse impacts to seagrasses, existing shellfish beds, natural reefs or other sensitive habitats. In addition, FDACS has coordinated the review of the application with the Florida Department of Environmental Protection, the Florida Fish and Wildlife Conservation Commission, the Florida Department of State s Division of Historical Resources, and the Bay County Board of County Commissioners (BOCC), pursuant to rule 18-21.021, F.A.C. The Bay County BOCC adopted a resolution supporting approval of the lease modifications to authorize use of a mechanical harvesting device. Special Conditions If approved, the special lease conditions would be modified to allow the use of a mechanical harvesting device pursuant to Aquaculture BMPs outlined in rule 5L-3.004, F.A.C. All existing standard lease conditions will remain unchanged, including the remainder of the lessee s ten-year renewable terms. Public Interest The leases are not in an aquatic preserve, therefore the activity does not have to be found to be in the public interest. The projects are, however, required to demonstrate that they are not contrary to the public interest, pursuant to Article X, Section 11 of the Florida Constitution, chapter 253, F.S., and rule 18-21.004(1)(a), F.A.C. Because the Legislature has declared aquaculture to be in the public interest, according to section 253.68(2)(a), F.S., FDACS is of the opinion that the activities meet the test of being not contrary to the public interest and otherwise meet all applicable requirements for a proprietary authorization to use sovereignty submerged lands.

Page Eighteen Item 8, cont. Noticing The proposed modifications were noticed pursuant to section 253.70, F.S. The Bay County Oystermen s Association commented that they have no opposition to the change to allow the use of a mechanical harvesting device on the aquaculture leases. Bay County Audubon Society and St. Andrew Bay Watch provided comments and questions concerning the use of mechanical harvesting devices in West Bay. FDACS provided responses to both groups questions and informed them of the water quality and resource monitoring that will be conducted by FDACS during initial harvesting activities. Further, FDACS has invited members from Bay County Audubon Society and St. Andrew Bay Watch to observe and/or participate in the monitoring conducted by FDACS, as well as keep the groups informed of its findings. Comprehensive Plan A consideration of the status of any local government comprehensive plan was not made for this item. FDACS has determined that the proposed action is not subject to the local government planning process. (See Attachment 8, Pages 1-10) RECOMMEND APPROVAL