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7 BOOK M 12. LOST TREE ISLANDS - FLORIDA COMMUNITIES TRUST OFFER TO PURCHASE The Board reviewed a Memorandum of June 10, 1998: TO Board of County Commissioners FROM: Hyl Terrence P. O'Brien, Assistant County Attorney_'r - DATE: June 10, 1998 SUBJECT: FCT Offer to Purchase' Lost Tree Islands RE: (1) FCT Letter of June 4, 1998 Transmitting Subject Offer (2) Memo of Pat Brown to Charles Vitunac of June 8, 1998 FACTS. Anne Peery, Executive Director of Florida Communities Trust, informed this office by telephone on the afternoon of June 9, 1998, that the FCT, County -sponsored, offer of $7.1 million was rejected. As of this writing a copy of the rejection is not available to us. Ms. Peery did read the rejection. It is short and contains no counteroffer. It does conclude by saying, in effect, that the negotiations can continue. ANALYSIS: Rejection without a counteroffer in real estate parlance means an end of negotiations. This is not to say that the offeror cannot make another offer and open up a new round of negotiations. It is my belief that a counteroffer was not made because if made and accepted then Lost Tree's avenue to closing would be limited to FCT. This was not a previously acceptable procedure, and hence the back-up FAR/BAR option to purchase by the County was a requirement in the previous round of negotiations. CONFIDENTIALITY OF APPRAISAL: To date the County has kept the appraisals confidential pursuant to Section 125.355, Florida Statutes. This has been somewhat of an impediment because there is a wide range of speculation as to what the value of the islands are and as to what assumptions were made in arriving at the value. The appraisals may be released if the County determines that good faith negotiations have terminated. This is not to say that the matter is necessarily closed. Pursuant to Section 9K-6.008, FAC, Confidentiality of Appraisals, reinitiation of negotiations is permissible, but it requires approval of the Trust Since the grant was extended to December 1998, any reinitiation of negotiations would, in all likelihood, have to meet this time frame. ANCILLARY FACTS: This office on the afternoon of June 9, 1998, became aware that there is a very serious question concerning Lost Tree's title to the channel just west of Silver Shores road; said title in Lost Tree being necessary to bridge to the inner islands. See reference item #2, Pat Brown's memorandum attached. After reading this memorandum we talked to Mr. Scott Woolam, State Division of Lands, and he verified everything in Pat Brown's memo. ANALYSIS: This information removes a major premise from the equation, i.e., that Lost Tree can bridge to the islands once the City's bridgehead ordinance is removed. It also brings into question the value of the islands as set forth in present appraisals as this was not a given assumption. Without being counsel to the City, it would appear that removal of the bridgehead ordinance would remove the gravamen of the $72 million lawsuit against the City. The fight would then be between the State and Lost Tree as to this channel, and the State's position would appear to be much stronger than the bridgehead ordinance. The previous State moratorium on the use of submerged lands has been replaced by Chapter 18-21, FAC. The pertinent portion of this chapter is found in Section 18-21.004 which provides that the "use of sovereignty lands for the purpose of providing road access to islands where such access did not previously exist, shall be prohibited" unless determined to be in the public interest JUNE 169 1998 -30-