Department of Natural Resources v. Sailfish Club of Florida, Inc. (473 So. 2d 261, 1985)

SHIVERS, Judge.

Appellant Department of Natural Resources (DNR) appeals final order of the Division of Administrative Hearings that Florida Administrative Code (FAC) Rule 16Q~21.05(l)(b)4 and proposed FAC Rule 16oQ-21.11 are invalid exercises of delegated legislative authority. We reverse.

At issue are:

(1) Whether the Hearing Officer applied the correct standard of review to the Trustees’ authority to manage sovereignty land;

(2) Whether the fee structure for leases in proposed FAC Rule 16Q-21.il is invalid;

(3) Whether the economic impact statement for the proposed rule is incomplete;

(4) Whether the FAC Rule 16Q-21.-05(l)(b)4 constitutes an invalid exercise of delegated legislative authority.

The following material facts are primarily derived from the Final Order.

Appellee Sailfish Club of Florida, Inc. (Sailfish) is a nonprofit Florida corporation which operates a 550-member private club in Palm Beach County. Its facilities include a swimming pool, large dining room, cocktail lounge, private dining rooms, card rooms and a marina with three docks and 62 slips. Sailfish’s annual membership dues are $925 per member. The marina docks are constructed over 94,815 square feet of submerged lands owned by the State of Florida Board of 'Trustees of the Internal Improvement Trust Fund (Trustees). The wet slip space comprises 2,531 linear feet. Marina slips are available to members and are rented at $39.60 per linear foot per year. DNR administers and implements the Trustees’ policies.

Prior to March 10, 1970, the Trustees’ policy permitted the use of “sovereignty” submerged lands without charging annual fees. At present, all docks, piers and other structures on sovereignty lands which were in existence prior to March 10, 1970, are “grandfathered” and are not subject to the current lease requirements until January 1, 1998.

Beginning March 10, 1970, the Trustees adopted a new policy of licensing sovereignty lands which were used in the operation of marinas, charter boat docks and other commercial mooring facilities. The licensees were required to pay at least 2$ per square foot annually for those sovereignty lands severed from public use, with the licenses renewable annually upon receipt of the appropriate fee.

On August 25, 1970, the Trustees and Sailfish entered into a license agreement whereby Sailfish agreed to pay the Board 2