Florida Administrative Code › 18 - BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND › 18 - Departmental › Chapter 18-21 - SOVEREIGNTY SUBMERGED LANDS MANAGEMENT › Section 18-21.011 - Payments and Fees

Current through Reg. 50, No. 138; July 16, 2024
(1) Standard and Extended Term Leases.
(a) Fee Formula.
1. Except as otherwise provided, the annual
				lease fee for standard term leases shall be six percent of the annual income,
				the base fee, or the minimum annual fee, whichever is greater, and shall
				include discounts, surcharges, and other payments as provided in paragraph
				 18-21.011(1)(b),
				F.A.C. The annual lease fee for extended term leases shall be calculated using
				the following equation: annual lease fee for extended term leases = annual
				lease fee for standard term leases multiplied by (1 + .01X), where: X = the
				term of the lease in years. For the purposes of this section, income shall be
				the gross receipts derived from the rental, lease, sublease, license or other
				transaction involving tenancy of wet slips over sovereign submerged land
				whether the holder of the lease is primarily involved in every subsequent
				transaction or not. The base fee and minimum annual fee will be calculated
				according to paragraph (b) of this subsection. All leases shall require that
				the lessee include a clause in agreements for the use of a slip providing that
				6% of gross income derived from any sub-agreement for the use of a slip shall
				be paid to the Board's lessee, who shall report and transmit such payments to
				the Board upon receipt, and a clause providing that no interest in a slip may
				be further transferred unless a substantially similar clause is placed in any
				succeeding document effecting the transfer to each new slip holder.
				Notwithstanding, a lessee of sovereignty submerged lands for a private
				residential single-family dock or pier, private residential multi-family dock
				or pier, or private residential multislip dock is not required to pay a lease
				fee on revenue derived from the transfer of fee simple or beneficial ownership
				of private residential property that is entitled to a homestead exemption
				pursuant to section  196.031, F.S., at the time of
				transfer.
2. The income used to
				determine the annual lease fee and any other information required from the
				previous year will be certified true and correct by the lessee and shall
				include any ancillary charges, such as club membership, stock ownership, or
				equity interest or other miscellaneous fees required for and directly
				attributable to the rental of a wet slip over, or use of, sovereign submerged
				land. Ancillary charges shall not include pass-through fees such as fees for
				utility services. Facilities that do not rent wet slips or that rent slips
				significantly below prevailing market rate shall submit a comparable sales
				analysis, a broker's opinion of value, sales documentation, or appraisal of the
				wet slips to determine their income. Notwithstanding, an appraisal shall be
				required when the Department finds the submission insufficient to support the
				slip value. When an appraisal is required the Bureau of Appraisal shall obtain
				fee quotes and select qualified appraisers. The applicant will be notified of
				the fee and shall submit payment for the appraisal to the Department prior to
				the appraisal being initiated. The initial income, as appraised, shall be
				revised annually on March 1 and increased or decreased based on the average
				change in the Consumer Price Index, calculated by averaging the Consumer Price
				Index over the previous five-year period, with a 10 percent cap on any annual
				increase, but shall be recalculated in accordance with each new appraisal,
				regardless of the CPI figure.
3.
				For new leases, the first annual lease fee shall be the base fee or the minimum
				fee (as determined in subparagraph
				 18-21.011(1)(a) 
				1., F.A.C.), whichever is greater, or the extended term fee (for facilities
				that qualify under subsection
				 18-21.008(2),
				F.A.C.), in effect when the lease is executed. The lease fee will be adjusted
				to incorporate income consistent with the formulas in subparagraph
				 18-21.011(1)(a) 
				1., F.A.C., when the lessee offers any slips for rent.
4. Docking facilities in aquatic preserves
				shall be subject to the base rate adjustment outlined in subparagraph
				 18-21.011(1)(b) 
				5., F.A.C., where applicable.