Managing 137,272 Acres of Land

1. Managing 137,272 Acres of Land Presented By:Jim Bridgeman

2. Land Management Organization Chart Pamela S. Mac'Kie Deputy Executive Director Thomas W. Olliff Assistant Deputy Executive Director Thomas F. McCracken Department Director, Land Management and Operations Right of Way Thomas L. Fratz Land Stewardship Frederick E. Davis Interim Land Management James A. Bridgeman Operating Support Effective June 1, 2003

3. Land Management Organization Chart Pamela S. Mac'Kie Deputy Executive Director Thomas W. Olliff Assistant Deputy Executive Director Thomas F. McCracken Department Director, Land Management and Operations James A. Bridgeman Field Operations Manager Real Estate Linda M. Robinson Staff Administrative Resources Associate Anita C. Rahon Sr. Financial Analyst Lee Henderson Sr. Planner Philip J. Kochan Property Manager Andrea M. Stringer Senior Property Manager Kenneth A. Foote Senior Property Manager Antonio J. Romanach Senior Property Manager Effective July 24, 2003

4. Comparison of Program Focus INTERIM LAND MANAGEMENT • Manage until restoration project implemented • Minimize taxpayer burden • Partnership solicitations seek revenue generation & positive economic impact to region LAND STEWARDSHIP • Restore to natural condition • Maintain natural state in perpetuity • Resource-based public use • Partnership solicitations seek best qualified lessee for maximizing restoration functions

5. 498,272 Acres of Land Owned • Land Stewardship (Natural area restoration, conservation, recreation lands)361,000 • Interim Land Management (Project lands for CERP, ECP, Structures, Restoration, etc.)137,272

6. (Does not include 1,800 miles canal ROW or 880,000 acres WCA)

7. Interim Property ManagementManaged Acres TOTAL ACRES 137,272

8. Regional Acquisition Strategy Map

9. Interim Property ManagementDefinition Interim period is from the date of acquisition to the beginning of construction or conversion to the property’s ultimate planned use.

10. Interim Property ManagementMission • Considers the economic impact to the region • Reduces management expenses • Protects and preserves the land for present and future generations • Land is in an improved condition when turned over to project The Land Management Department will support the District’s overall mission by providing high quality interim land management that:

11. Interim Property ManagementActivities • Lease lands for agricultural uses • Implement Best Management Practices (BMP’s) • Recover purchase price of acquired improvements or business inventories by liquidation sales • Manage demolition and clearing of improvements • Coordinate regulatory compliance on managed lands

12. Interim Land Management Program Goalsto manage land pending project construction • Preserve and protect the resource • Reduce exotic plant infestation • Preserve existing agricultural economy • Provide alternate source of revenue which reduces taxpayer burden for land management activities • Retain property on local county tax rolls

13. How Do We Get Contracts? • From Real Estate Acquisitions • Reservations • Leasebacks • Subject to • Seller not interested in continuing activity – solicit bids • Buy vacant property – solicit bids • Miscellaneous – other contracts • License Agreements/Use Agreements

14. Contract Definitions Lease– A written document by which the owner transfers the rights of use and occupancy of land and/or structures to another person or entity for a specified period of time in return for a specified rental. Leasehold – the interest or estate which a lessee has in real property by virtue of his lease.

15. Contract Definitions Reservation– A right reserved by an owner in the grant (sale or lease) of a property. Generally, the Reservation fee is a negotiated item usually associated with a professional appraisal, and is deducted from the seller’s proceeds. The Reservation term is also a subject of negotiation, however, it is usually for a fixed period after which the property is subject to the District’s discretion for competitive bid or project related use.

16. Contract Definitions Subject to – Is an assignment of an existing lease at closing, the terms and conditions of which, including the rent and termination date, were previously agreed upon by the seller, as lessor, and lessee. Consequently, the lease, most likely does not contain the standard District clauses which are geared towards protecting the district’s interest.

17. Interim Property ManagementContracts by Type • While 50% of our contracts were competitively bid, they represent only 8% of the total acres leased. • Reservation/Leasebacks are only 25% of our contracts, but represent 70% of our total managed acres. • The other 22% of acres leased is a result of leases already existing on land purchased.

18. Interim Property ManagementBreakdown of Acres Managed and Method of Acquisition Leased Acres 83% 113,135 Vacant Acres 17% 24,137 Total Managed Acres 137,272 ACRES Reservation/Leaseback 70% 79,195 Subject To 22% 24,890 RFB/RFP 8%9,050 Total Leased Acres 100% 113,135

19. Land Management Financial PerformanceLease Program Contribution Acres Leased 113,135 Revenue $2,366,883 Property Tax Paid to Counties by Lessees $2,875,040 Cost Avoidance ($25 per acre) $2,828,375 Total Contribution $8,070,298

20. Land Management Financial PerformanceLease Program Contribution 1998 Thru 20022003Total Acres Leased 102,214 113,135 113,135 Revenue 7,077,178 $2,366,883 $ 9,444,061 Property Tax Paid to Counties by Lessee N/A $2,875,040 $ 2,875,040 Cost Avoidance ($25 per acre) $8,033,800$2,828,375$10,862,175 Total Contribution $15,110,978 $8,070,298 $23,181,276

21. Lease Property by County 2002 Tax Summary

22. Lease Property by County 2002 Tax Summary

23. Lease Property by County 2002 Tax Summary

24. Lease Property by County 2002 Tax Summary

25. Interim Property - Acres Leased(by County)

26. Interim Property -Revenue (by County)

27. Interim Property Management1998-2003 Acres Leased/Staff

28. Maintaining Perimeter Fencing

29. Unexpected Maintenance & RepairReplacing Culverts

30. Record & Inventory Purchased Assets

31. Lease-required BMPSecondary Containment around Fuel Tanks

32. Illegal Dumping & Debris Cleanup

33. Billboard Acquisitions

34. Liquidation Sale of Nursery Stock

35. Exotics Control Brazilian Pepper - Before Brazilian Pepper - After

36. InterimProperty Management -Revenue and Cost Avoidance to date Total Contribution $20.8 million

37. Demolition and Environmental Cleanup

38. Interim Property ManagementConclusions • High growth program brings challenges: • volume of acquisitions outpacing staff resources • increasing exotic management needs • complex contracts require intensive administration • emphasis on including Land Management issues in Land Acquisition negotiations • maximize revenue while protecting the resources

39. Interim Property Management Professional and Diverse Staff Masters of Business Administration Master of Public Administration Master of Regional and Community Planning Master of Chemical Engineering Nationally Certified Real Property Administrator Professional Engineer Fellows of Natural Resource Leadership Institute Licensed Landscape Architect

40. Staff Goals • Consistencies between Land Acquisition and Land Management • Improve Governing Board perception of Land Management • Recognition by Governing Board that lease restrictions affects market value • Credible Project schedules • Payment of rent in advance • Tax escrow • Authority to enter into License Agreements for less than 12 months. • Dealing with existing leases