(1) Standard and Extended Term Leases.

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Terms Used In Florida Regulations 18-21.011

  • Appraisal: A determination of property value.
  • Dependent: A person dependent for support upon another.
  • Fee simple: Absolute title to property with no limitations or restrictions regarding the person who may inherit it.
  • Judgement: The official decision of a court finally determining the respective rights and claims of the parties to a suit.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
    (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 Fl. Admin. Code R. 18-21.011(1)(b) 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 Florida Statutes § 196.031, 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 subFl. Admin. Code R. 18-21.011(1)(a)1.), 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 subFl. Admin. Code R. 18-21.011(1)(a)1., when the lessee offers any slips for rent.
    4. Docking facilities in aquatic preserves shall be subject to the base rate adjustment outlined in subFl. Admin. Code R. 18-21.011(1)(b)5., where applicable.
    (b) Base Fees, Discounts, Surcharges and Other Payments.
    1. The base fee shall be computed at a rate of $0.1413 per square foot per annum, which became effective March 1, 2007. The base fee and the minimum annual fee shall be revised March 1 of each year and increased or decreased based on the average change over time in the price paid by all urban consumers for a market basket of consumer goods and services. In determining the change, the Board will annually consult the Consumer Price Index figures established for the previous five years by the Bureau of Labor Statistics, computed as provided in the BLS Publication “”Handbook of Methods,”” Chapter 17, June 2007, and found on the BLS website at http://www.bls.gov/opub/hom/pdf/homch17.pdf. There shall be a 10 percent cap on any annual increase.
    2. There shall be a discount of 30 percent on the annual lease fee for all marinas where at least 90 percent of the slips are available for rent to the public on a first-come, first-served basis. To receive this discount, any dockage rate sheet publications and dockage advertising for the marina shall clearly state that slips are open to the public on a first-come, first-served basis.
    3. A surcharge equivalent to 25 percent of the base fee or minimum annual fee for standard term leases, or of the extended term fee shall be charged in addition to the first annual lease fee on all new leases, except for registered or unregistered grandfathered structures being converted to a lease. For all lease expansions, a surcharge also shall be charged on the portion of the lease fee that applies to the expansion area. This surcharge is a one-time payment which is not credited toward any of the rental value payment.
    4. There shall be a minimum annual fee of $423.89, effective March 1, 2007. The minimum annual fee shall be adjusted annually based on subFl. Admin. Code R. 18-21.011(1)(b)1.
    5. The following additional charge shall apply in aquatic preserves: A base rate of two times the base rate determined in subFl. Admin. Code R. 18-21.011(1)(b)1., shall be applied to leases in aquatic preserves when 75 percent or more of the sum total of linear footage of the subject lease area shoreline together with the adjacent 1,000 feet of shoreline on each side of the lease area is in a natural, unbulkheaded, nonseawalled or nonriprapped condition. When requested by the applicant and documentation has been provided that the area has lost its natural, unbulkheaded, nonseawalled or nonriprapped condition, this rate will no longer be applicable.
    6. The annual lease fees for restaurants and other nonwater dependent uses shall be negotiated by the Department or water management district staff. In negotiating the annual lease fee, the Department or water management district staff will consider the appraised market rental value of the riparian upland property and the enhanced property value, benefits, or profit gained by the applicant if the proposed lease is approved. The Division using best professional judgement may consider a comparable sales analysis, or a brokers opinion of value of the market rental rate of the riparian upland property. Grandfathered nonwater dependent uses shall be assessed fees as water dependent uses when grandfathered status is lost for any reason. For Open-air dining areas, that meet the criteria in subFl. Admin. Code R. 18-21.004(1)(g)1., the annual lease fees for the nonwater dependent uses shall be an amount equal to 10 times the base fee. These leases are not eligible for any lease fee discounts contained in this rule.
    7. A waiver from payment of annual lease fees for government, research, education or charitable entities that are either not-for-profit or non-profit shall be granted if the following conditions are met:
    a. Any revenues collected from the activity or use of sovereign submerged lands are used solely for the purposes of operation and maintenance of the structure; and,
    b. The activity or use of sovereignty submerged lands is consistent with the public purposes of the applicant organization; and,
    c. In no case shall the activity or use of sovereign submerged lands be operated to directly benefit a party not eligible for the waiver. Notwithstanding, a party eligible for this waiver may hire a private vendor to operate the activity, provided, however, that the private vendor does not directly receive funds from such operation. Further, a person may operate a commercial activity associated with the activity only so long as such person does not have any exclusive use of any part of the preempted area.
    8. A waiver from payment of annual lease fees shall be granted for a private residential multi-family dock or pier constructed in lieu of multiple private residential single-family docks or piers in accordance with Fl. Admin. Code R. 18-21.004(4)(c)
    9. A lessee of sovereignty submerged lands for a private residential single-family dock designed to moor up to four boats is not required to pay lease fees for a preempted area equal to or less than 10 times the riparian shoreline along sovereignty submerged land on the affected waterbody or the square footage authorized for a private residential single-family dock under rules adopted by the Board for the management of sovereignty submerged lands, whichever is greater.
    10. A lessee of sovereignty submerged lands for a private residential multi-family dock designed to moor boats up to the number of units within the multi-family development is not required to pay lease fees for a preempted area equal to or less than 10 times the riparian shoreline along sovereignty submerged land on the affected waterbody times the number of units with docks in the private multi-family development.
    11. If a facility occupies sovereignty, submerged lands, portions of which are exempted from payment by virtue of grandfathered status and portions of which are leased, and grandfathered status is lost, the lease fee and rate schedule for the entire preempted area shall be the annual lease fee determined in subparagraph (1)(a)1. at the time the exemption is lost.
    12. There shall be an assessment for the prior unauthorized use of sovereignty land for after-the-fact lease applications. The minimum assessment for such applications shall include:
    a. Payment of retroactive lease fees; and,
    b. Payment of an additional annual percentage on the retroactive lease fees computed at a rate equal to two percentage points above the Federal Reserve Bank discount rate to member banks. Such rate shall be adjusted annually, on October 1 of each year.
    13. There shall be a late payment assessment for lease fees or other charges due under this rule which are not paid within 30 days after the due date. This assessment shall be computed at the rate of 12 percent per annum, calculated on a daily basis for every day the payment is late.
    14. If requested by the applicant, the Board shall determine, based on the following factors, whether a reduction of the assessment and an extension of the time period for payment of the assessment under the provisions set forth in subparagraph 10. above, shall be granted:
    a. The applicant’s prior compliance with the provisions of chapters 253 and 258, F.S., or any rules adopted thereunder;
    b. Any failure of the applicant to comply with an order of the Board;
    c. Whether any failure to comply under paragraph (a) or (b) above was willful;
    d. The need to deter future violations by removing any economic benefits to the applicant from failure to comply with the law;
    e. Aggravating and mitigating circumstances specific to the lease application, including the nature and extent of the violation, and the applicant’s degree of cooperation in correcting the violation;
    f. Whether payment of the amount of the assessment or payment by the time due would create a substantial hardship that affects the applicant significantly different than other similarly situated applicants; and,
    g. The inability of the applicant to pay the fees assessed.
    15. Clean Marina Program Participation.
    a. There shall be a discount of 10 percent on the annual lease fee for facilities designated by the Department as a Clean Marina, Clean Boatyard or Clean Marine Retailer in the Clean Marina Program and actively maintaining their designation in the program, provided: that the facilities remain in good standing with all terms of their lease and with the Clean Marina Program; and the facilities do not change their use during the term of the lease. If a facility is in arrears on its lease fees, it shall not be eligible for this discount for the next annual billing period. Failure to comply with the conditions of the Clean Marina Program shall result in the loss of this discount for the next billing period.
    b. The extended term lease surcharge shall be waived for facilities designated by the Department as a Clean Marina, Clean Boatyard or Clean Marine Retailer in the Clean Marina Program and actively maintaining their designation in the program, provided: that the facilities are available to the public on a “”first come, first served”” basis; that the facilities remain in good standing with all terms of their lease and with the Clean Marina Program; and the facilities do not change their use during the term of the lease. Failure to comply with these conditions shall result in the loss of the waiver of surcharge for the next billing period.
    (c) One-time premium.
    1. Private residential multi-family docks that include ten or more wetslips shall be assessed a one-time premium surcharge payment. This surcharge shall be computed by multiplying the standard annual lease fee or base fee required in Fl. Admin. Code R. 18-21.011, by a value of three.
    2. Paragraph 18-21.011(1)(c), F.A.C., shall apply to existing leases with the one-time premium lease condition and to new leases approved by the Board after September 6, 1987, unless one or more of the subFl. Admin. Code R. 18-21.011(1)(c)3., conditions are complied with.
    3. Paragraph 18-21.011(1)(c), F.A.C., shall not apply to:
    a. Grandfathered structures;
    b. Previously licensed facilities required to come under leases;
    c. The renewal of leases;
    d. Previously leased facilities without a one-time premium lease condition;
    e. Those portions of structures that are grandfathered;
    f. Facilities that are at least 50 percent open to the public on a first come, first served basis;
    g. Docking facilities built before September 6, 1987, in which the developers of the facility no longer have any interest in the facility and where the facility has been assigned to a homeowners association or other association made up exclusively of the residents of the development; or
    h. To new lease applicants that are homeowners associations or other associations, made up exclusively of the residents of the development.
    (d) Class III and IV Special Event Authorizations.
    1. A Class III single event lease and a Class IV special events lease shall be assessed a special event fee. The special event fee shall be the base fee in subFl. Admin. Code R. 18-21.011(1)(b)1., prorated for a period not to exceed 45 days and based solely on the period per event and actual size of the preemption.
    2. Class III and IV Special Event leases are also subject to the 25 percent first annual fee surcharge, aquatic preserve surcharge, the annual fee adjustment based on the average change as provided in subFl. Admin. Code R. 18-21.011(1)(b)1., and other payments required by Fl. Admin. Code R. 18-21.011(1)(b) Special events are not eligible for the 30% discount provided by subFl. Admin. Code R. 18-21.011(1)(b)2.
    3. A waiver of payment of lease fees for special events shall be available in accordance with subFl. Admin. Code R. 18-21.011(1)(b)7.
    (2) Private Easements.
    (a) The fee for granting, modifying, or renewing a private easement containing 3,000 square feet or less, for a riparian parcel, or for two adjacent riparian parcels sharing a common easement, shall be calculated as 1/2 the minimum annual lease fee determined under Fl. Admin. Code R. 18-21.011(1)(b), multiplied by the term of the easement.
    (b) The fee for granting, modifying, or renewing all other private easements, except for telecommunication lines and associated conduits that are subject to the provisions of Fl. Admin. Code R. 18-21.004(2)(l), shall be assessed and based upon an appraisal, a comparable sales analysis, or a broker’s opinion of value. Notwithstanding, private easements shall be assessed and based upon an appraisal if the Division, using best professional judgment, finds the easement has an estimated value greater than $10,000 or if the Division, using best professional judgment, is unable to determine an initial estimated value. In addition to standard appraisal services requirements and procedures, the following factors shall be considered in determining the easement fee:
    1. The extent to which the easement is exclusionary; i.e., the degree to which the proposed easement precludes, in whole or in part, traditional or future public uses of the easement area or other submerged land; and
    2. The enhanced property value or profit gained by the applicant if the proposed easement is approved. Enhancement will not be considered in the appraisal services for easement renewals that do not modify the size or use of the expired easement.
    (c) For the purposes of this rule, broker’s opinion of value and comparable sales analysis are valuation techniques, which are not appraisals, that are performed under chapter 475, part 1, F.S., comparing available market data such as sales, listings, and contracts to the property being analyzed.
    (d) The fee for pre-cut sunken timber easements is $5,500 per year.
    (e) No fee shall be assessed for treasure salvage or cultural resource recovery easements.
    (f) The fee for private easements for telecommunication lines and associated conduits that are subject to the provisions of Fl. Admin. Code R. 18-21.004(2)(l), shall be a one-time easement value and enhanced value fee of $5.5913 for installations outside of special consideration areas or a one-time easement value fee of $0.0663 for installations inside such areas, effective March 1, 2007. The applicable fee shall be assessed per linear foot of telecommunication line or conduit as measured along sovereignty submerged lands from the State’s territorial limits within the territorial sea to first landfall on the mainland for easements up to 10 feet wide, and shall be increased proportionally for easements of greater widths. This fee shall also be applicable to easement modifications to the extent that such modifications increase the easement area and to easement renewals. The fee shall be revised annually on March 1 and increased or decreased based on the average change, as provided in subFl. Admin. Code R. 18-21.011(1)(b)1., calculated as provided in subFl. Admin. Code R. 18-21.011(1)(b)1., with a 10 percent cap on any annual increase. This fee shall not be applicable to applications to transfer or assign an easement.
    (3) Severed Dredge Materials.
    (a) When an activity involves the removal of sovereignty materials to upland property by dredging or any other means, payment per cubic yard of material shall be as follows, except as provided in Florida Statutes § 253.03
1. Monroe County