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I BOOK 99 PAGE 893 It is requested that the information herein presented be given formal consideration by Board of County Commissioners at its regular meeting of November 19, 1996. DESCRIPTION AND CONDITIONS This memorandum is presented as a status report to the Board of County Commissioners concerning the Sebastian Highlands Scrub Lots acquisition project, particularly relating to Phase I acquisition of 50 scrub lots owned by Atlantic Gulf Communities (AGC). Staff is also requesting direction from the Board concerning the project in general, as further explained herein. At a public hearing on July 16, 1996, the Board of County Commissioners approved county purchase of 50 scrub lots owned by AGC in Sebastian Highlands Subdivision, with environmental land bond funds and a 50% cost -share grant from the Florida Communities Trust (FCT). The 50 lot acquisition was Phase I of an environmental lands acquisition project originally consisting of +180 undeveloped scrub lots. On September 17, 1996, subsequent to the July 16th hearing but prior to County closing on the 50 AGC scrub lots, the Board held a public hearing concerning county "Phase II" acquisition of 49 additional, individually owned scrub lots. At the September 17th hearing, the Board voted not to proceed with Phase II purchase of - the 49 individually owned lots, largely due to perceived management difficulties.- Moreover, at that meeting the Board voted not to pay Utility waterline assessments that affected 13 of the 50 AGC lots. Closing on the 50 AGC lots has not occurred, and the County option contract with the AGC has expired as of September 30, 1996. Closing did not occur because AGC refused to pay the +$20,000 in waterline assessment fees that affected 13 of the 50 lots. Notwithstanding the waterline assessment issue, staff had concerns with closing on the 50 AGC lots as a "stand alone" project, in light of the Board's decision not to proceed with Phase II lot acquisitions. The reason for staff's reluctance was because 16 of the 50 AGC lots are scattered behind Pelican Island Elementary School among lots the Board voted not to purchase, and management of the 16 scattered lots would be difficult if not impractical. County staff has since held discussions with AGC's representative and Florida Communities Trust staff to determine if the County has the opportunity to pursue, if desired, a scaled-down project of 34 AGC lots that are clustered and could be managed as one management unit. Also, the 34 clustered AGC lots are unaffected by the Utilities waterline extension project, so that assessment would be a non -issue. The AGC representative indicated that AGC would consider selling the 34 clustered lots (only) to the County at appraised value. Florida Communities Trust staff has indicated support of the 34 lot purchase, and is willing to work with the County to modify the FCT 50% cost -share grant to apply to the scaled-down 34 lot acquisition project. ANALYSIS It is staff's position that the County should consider purchasing the 34 clustered AGC lots as a component of a scrub habitat conservation plan (HCP) proposal to mitigate and release for development +450 privately owned scrub lots in the Sebastian Highlands, regulated under the federal Endangered Species Act. As directed by the Board, county staff has conceptually proposed to the Fish and Wildlife Service (FWS) that FWS accept scrub conservation on large tracts that. -the County is buying (e.g., AGC Industrial Tract, St. Sebastian PUD, Wabasso Scrub) as mitigation for Sebastian Highlands scrub lots development. FWS staff has generally indicated that FWS is considering accepting the County's large tract mitigation proposal, but in conjunction with the City of Sebastian protecting and managing scrub on existing City property. Concerning the 34 clustered AGC lots, FWS staff has indicated that purchase of the lots would be important to an acceptable HCP. NOVEMBER 19, 1996 36 _