Another popular technique is applying a percentage (often determined by a public jurisdiction) to the potential gross income (PGI) or the effective gross income (EGI) of the improved submerged land site.
As such, the fee interest and rental of the fee interest in submerged land rarely, if ever, transfer or lease under market conditions.
The type of submerged land referred to in this article is tidal land that is underwater and adjacent to dry land (sometimes called water lots).
The premise of the model-ratio technique is that the ratio of the net rent of a dry land site to the net operating income (NOI) of the dry land improved property will be similar to the ratio of the net rent of a submerged land site to the NOI of the submerged land improved property For example, the ratio of the net land rent to the NOI of an improved property, such as a commercial building, in the neighborhood of the submerged land property should be similar to the ratio of the net land rent to the NOI of a submerged land improved property, such as a marina built over a submerged land site, since both properties have similar General Plan land-use designations.
10] Although it did not explicitly rule that dredging constituted a permanent improvement under the act, the court clearly recognized the dredged area as an improvement, and included the dredged area within the submerged lands disclaimed to Jacksonville Shipyards, Inc.
17] In City of West Palm Beach, the court initially reversed the trial court's decision to disclaim to the city only the submerged lands directly beneath four piers in the Palm Harbor Marina and its holding that the dredged area between and around the piers did not constitute a "permanent improvement" under the Butler Act.
Almost one year later, the Fourth District Court granted the Board of Trustees' motion for rehearing and substituted a conflicting opinion for its prior one, this time affirming the trial court's decision to disclaim to the City of West Palm Beach only the submerged lands immediately beneath four piers in the Palm Harbor Marina.
This statement indicates that the court assumed that the city's lack of fee simple title to the submerged lands would have no significant bearing on whether it would later be permitted to dredge the area surrounding the piers.
7] The right to use the waters above these offshore, submerged lands is generally held as public trust.
These submerged lands are held in trust for the use and benefit of the people of the particular state, as set forth in Tide 43, U.
This statute defines the Outer Continental Shelf (OCS) as all submerged lands lying seaward of state coastal waters (three miles offshore) that are under United States jurisdiction.
The sales comparison approach can only be used indirectly, since there are few, if any, comparable sales of actual submerged lands.