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NOK 103 PAu 54 The negotiated purchase price of $1,353,550 is 100% of the approved appraised value. In accordance with State Statute and County Land Acquisition Guide procedures, because the negotiated purchase price exceeds the average of the two appraisals, approval of the purchase by the Board of County Commissioners will require a "super majority vote" (at least 4 votes) in favor of the acquisition. TDRs from Donated Right -of -Way. The appraised values are largely based on a per unit value regarding the number of multi -family residential units potentially allowed on the Flinn property uplands. The uplands of the Flinn Tract have a County Future Land Use Designation of multiple - family residential, 10 units per acre. Moreover, during the course of the appraisal process, Robert Flinn confirmed to staff that when Indian River Boulevard public right-of-way was acquired in the 1980s, Mr. Flinn was given development density credit for 1.86 acres of right-of-way donated by him to the County for construction of the Boulevard. For that reason, the Flinn Tract appraisals account for a development density credit of 1.86 acres at 10 units per acre attributed to the right-of-way donation. TDRs from Potentially Sovereignty Wetlands. SJRWMD staff has identified +15.70 acres of the Flinn Tract as being "potentially sovereignty lands." Both the state of Florida and the water management districts maintain a strict policy against the purchase of submerged lands and wetlands which may be subject to the claim of the State of Florida as sovereignty lands, held in trust by the State for the public. However, the technical difficulty and expense of determining the mean high waterline (or ordinary high water line, in the case on non -tidal waterbodies) by survey are so substantial that in many if not most cases the expense of determining the line far exceeds the value of the land so delineated. This difficulty is reflected in regulatory practices at all levels, wherein sovereignty boundary determination is not generally required, and certain assumptions are relied upon in the permitting process. Indian River County Land Development Regulations allow the transfer of one unit per acre from estuarine wetlands to uplands. For the Transfer of Density Rights (TDRs) to occur, the County relies on deed and related ad valorem tax information as sufficient documentation of wetland ownership, absent other better evidence such as a mean high water line survey. Thus, fair market value appraisals used in private transactions reflect this ability of the landowner to transfer units to increase density on adjacent (or other) uplands, within the limits of County regulations, irrespective of whether or not the wetlands could ultimately be proven to be sovereignty lands. The initial appraisals of the Flinn Tract followed the custom established in the state of completely excluding all density which might be attributable to sovereignty lands. However, because this practi is an exception to a strict market value approach, which would normally consider the additio density, the appraisals were subsequently revised to reflect approximately 16 additional units which could be permitted if the property were developed or sold to a private buyer. As a result of accounting for the density transfer of one unit per acre from the potentially sovereignty wetlands, the approved appraised value was increased by $94,050. Staff obtained the information as to value of units which might be transferred from potentially soviereigaty acreage as a method of establishing a "faimess" benchmark in this transaction, particularly sinde the Flinns were aware of similar TDRs that were allowed for a proposed development project to the south, and the issue was critical in coming to terms with the Flinns as willing sellers. Acquisition Cost -Share & Property Management Two issues which are important to LAAC staff with respect to all proposed purchases are obtaining cost share assistance in property acquisition and addressing management costs. OCTOBER 14, 1997 48 � � r