Love PGI Partners, LP v. Schultz

• Citation: 706 So.2d 887
• Decision Date: 06 February 1998
• Docket Number: No. 96-1973,96-1973
• Parties: 23 Fla. L. Weekly D417 LOVE PGI PARTNERS, LP, and Sugarmill Woods, Inc., Appellant/Cross-Appellees, v. Ronald SCHULTZ, et al., Appellees/Cross-Appellants.
• Court: Florida District Court of Appeals

Page 887

706 So.2d 887

23 Fla. L. Weekly D417

LOVE PGI PARTNERS, LP, and Sugarmill Woods, Inc., Appellant/Cross-Appellees, v. Ronald SCHULTZ, et al., Appellees/Cross-Appellants.

No. 96-1973.

District Court of Appeal of Florida,

Fifth District.

Feb. 6, 1998.

Rehearing Denied March 18, 1998.

Enola T. Brown, Robert L. Rocke, and Christopher L. Griffin of Annis, Mitchell, Cockey, Edwards & Roehn, P.A., Tampa, for Appellant/Cross-Appellee.

Clark A. Stillwell of Brannen, Stillwell & Perrin, P.A., Inverness, for Appellee/Cross-Appellant.

W. SHARP, Judge.

Love PGI Partners, LP, (Love) and Sugarmill Woods, Inc. (Sugarmill) appeal from final judgments ¹ rendered against them concerning the property appraiser's (Schultz) denial (in part) of their claims for agricultural classification for lands located in Citrus County for 1994. The issues on appeal are whether the trial court had substantial competent evidence presented to it to determine that Love's and Sugarmill's use of part of their lands for forestry by natural regeneration was not bona fide and whether the trial court correctly ruled that cattle-grazing operations conducted on part of Sugarmill's property could not qualify for an agricultural classification because it was illegal under the Citrus County Comprehensive Plan and Development Code.

Schultz cross-appeals the trial court's rejection of his argument that an agricultural classification for Sugarmill's property used for cattle grazing should additionally be denied because Sugarmill's predecessor in title platted all of the land (as well as Love's) as part of a planned unit development, including single family residential, multi-family residential, recreation areas, commercial areas, and streets. The plats were recorded in 1973, although none of the property under consideration in these cases had been developed. We affirm as to Love, reverse as to Sugarmill, and affirm the cross-appeal.

Punta Gorda Developers, Inc. and Norcorp, Inc., predecessors in title, platted the property involved in this case as part of a larger planned unit development known as Sugarmill Woods, in 1973. It consists of four separate villages, two of which had been constructed at the time of this litigation. However, with regard to the properties at issue in this case, there was no development whatsoever. The current owners testified there would probably be no development for the foreseeable future.

Sugarmill acquired the land involved in this lawsuit from Punta Gorda in the mid 1980s. It is located both north and south of County Road 480, and had been classified agricultural through 1991. It currently consists of 4,300 acres Sugarmill claims is and has been used for cattle grazing, and 1,000 acres used for forestry. In 1992 or 1993, Love acquired its parcel of approximately 343.9 acres from Sugarmill. It is located south of County Road 480. From 1974 through 1991, it also was classified agricultural.

In 1992, Schultz denied agricultural classification for all of the property except areas in planted pines and improved pasture. No agricultural classifications were sought in 1993. In 1994, Sugarmill and Love sought an agricultural classification for all of the land, based on forestry and cattle-grazing operations.

Sugarmill claimed all of its land lying north of the County Road 480 had been bona fide used for cattle grazing. And, it claimed that all of its land south of County Road 480 was used for forestry operations, some in natural regeneration and some in planted pines. Schultz granted agricultural classification for 733.57 acres in planted pines (south of County Road 480), and 160 acres in an improved pasture (north of County Road 480) only, and denied agricultural classification for the balance. Sugarmill appealed the denials. The trial court upheld these determinations. With regard to Love, Schultz granted agricultural classification for the area in planted pines and denied it for the natural woodland area. Love appealed the denial. The trial court upheld that determination.

The appellants in this case had the burden of proof at trial to show either no reasonable hypothesis supported the property appraiser's determination, or the appraiser did not consider the appropriate statutory factors under § 193.461. See Davis v. St. Joe Paper Co., 652 So.2d 907, 908 (Fla. 1st DCA 1995); " 'Just Value' or Just a Value--Florida's Imperial Property Appraiser," 48 Fla.L.Rev. 723, 737 (Sept.1997). The findings of the trial court as to disputed facts cannot be overturned by this court. ²

I. Natural Woodlands or Natural Regeneration.

The issue concerning whether Love's parcel adjacent to its planted pines was used for a bona fide forestry use is determinative of its appeal, since it did not present an argument below that the parcel was used for cattle grazing. With regard to Sugarmill, it sought an agricultural classification for all of its land lying south of County Road 480, which included a portion in planted pines as well as some in natural woodlands. Although the final judgment rendered against Sugarmill does not contain an express finding that Sugarmill's agricultural use for the natural woodlands was not bona fide, the evidence presented for both parties was identical and the trial court upheld denial of an agricultural classification for that area. The result is and should be the same for both parties.

The testimony offered by Schultz concerning the use of the natural woodlands was comprehensive and conclusive. Reggie Tetter, a senior appraiser with the Department of Revenue in Tallahassee, reviewed the forestry operations on both parcels. His testimony indicated that, based on aerial photographs from 1960 and historical records, the land had not changed much since 1960. It is composed of candler soil, a type not highly productive for forestry operations. In the early part of the century, it appears to have been used for naval stores, and prior to the 1940s, all of the long leaf pines were harvested. At present there are open areas, turkey oak and jack oak (neither is commercial timber), and scattered long-leaf pine with a few seedlings. However, there are very few large long-leaf pines on the parcels, which produce seed.

In his opinion, there was not enough long-leaf pine present to produce a marketable stand of trees in the foreseeable future. It would take another fifty years by natural regeneration, to produce an adequate stock of timber. He also opined that it would be necessary to aggressively manage the land by scarification of the soil, controlled burning, and planting with long-leaf pine or sand pine. He said there was no evidence of such activity on this land as of January 1, 1994 (the critical date for this appeal). ³ He noted the presence of cattle in the past on this land and pointed out that running cattle can negatively impact forestry operations.

He agreed that it is possible to have a bona fide natural regeneration forestry operation, which would be entitled to an agricultural classification but concluded this was not happening on the parcels in question. There had been no harvesting of trees on these lands, no re-forestry management plan submitted for them, and there were no commercially-viable stands of trees on the property.

James Sander, a former employee of Punta Gorda Development Co., the prior owner of the lands from 1971 to 1991, testified that other than the areas put into planted pines, there had been no forestry plan for the natural woodlands. It consisted largely of jack oak, a few scattered pines, and palmettos. They did controlled burns of the area to improve grazing for cattle. Since 1974, various cattle lessees had run cattle on the natural woodland.

Andrew Love, chair of the general partner of Love PGI, testified he was familiar with the properties before they were sold to the predecessor, Punta Gorda Isles, and up to the present. He testified that as of January 1994, he did not think there was any specific forestry management plan for the Love property, other than the area in planted pines. They did controlled burns and maintained fire lanes in the natural woodlands, which he said would benefit the timber operations. However, he admitted these activities were largely to enhance cattle-grazing operations.

Gerald Evans testified for Love. He is a staff forester with the Natural Resource Planning Services, a private consulting service, who had been retained by Love to handle timber sales for 1994, and to develop goals for managing the land. He admitted that most of his activities on the land occurred in mid-1994.

Evans was developing ideas and guidelines for the natural woodlands on the Love property. He determined there was not sufficient merchantable timber in the natural area, and he recommended that the trees be left alone to get regeneration established. He thought there was a sufficient seed source that could be used to regenerate the area. He was in the process of developing a forestry plan for this part of the property, which would include controlled burns, and fire lanes.

The Florida Constitution provides that agricultural land may be classified by general law for ad valorem tax purposes, and assessed solely on the basis of character or use. ⁴ Section 193.461 implements that provision of the Constitution. It provides that property appraisers shall classify all lands on an annual basis within the county as agricultural or nonagricultural. Regarding the process of classification section (3)(b) states:

[O]nly lands which are used primarily for bona fide agricultural purposes shall be classified as agricultural. 'Bona fide agricultural purposes' means good faith commercial agricultural use of the land. In determining whether the use of the land for agricultural purposes is bona fide, the following factors may be taken into consideration:

1. The length of time the land has been so utilized;

2. Whether the use has been continuous;

3. The purchase price paid;

4. Size, as it...