HomeMy WebLinkAboutItem 02 Approval of Colella Mediated Settlement Agreement ocoee
florido
AGENDA ITEM COVER SHEET
Meeting Date: April 16, 2019
Item #
Reviewed By:
Contact Name: Mary Solik, Esq. Department Director:
Contact Number: 407.367.7868 City Manager:
Subject: Colella Mediated Settlement Agreement
Background Summary:
The City has acquired Parcel 101 from Margaret Colella through an eminent domain Order of Taking. The final
valuation of the property acquired needs to be resolved, either through mediation or jury trial. The property was
needed for the relocation of City Hall.
Issue:
The parties reached a Mediated Settlement Agreement subject to City Commission approval.
Recommendations:
Approve attached Mediated Settlement Agreement.
Attachments:
Memorandum and Mediated Settlement Agreement.
Financial Impact:
$141,329.00.
Type of Item: (please mark with an "x)
Public Hearing For Clerk's Dept Use:
Ordinance First Reading X Consent Agenda
Ordinance Second Reading Public Hearing'
Resolution Regular Agenda
x Commission Approval
Discussion& Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney N/A
Reviewed by Finance Dept. N/A
Reviewed by N/A
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LA 1K
Mary Doty Solik, Esq. 407-367-7868
121 S. Orange Ave., Ste. 1500 msolik@dotysoliklaw.com
Orlando, FL 32801 fax: 407-377-6801
MEMORANDUM
TO: The Honorable Mayor and Commissioners of the City of Ocoee
FROM: Mary Doty Solik, Special Counsel
DATE: April 4, 2019
RE: City of Ocoee v. Margaret Colella, Parcel 101
BACKGROUND
The referenced case is a condemnation action. Parcel 101 is necessary for the City Hall
Relocation Project. The .18 acre parent tract was owned by Margaret Colella and is located at
16 E. Mc Key Street. The property is improved with a 1,005 sq. ft. single family residential
structure built in 1945. The property was a rental.
John Robbins, the City's appraiser, first appraised the property in April 2017. He
concluded to a value of $92,000. The initial presuit offer was made to the property owner in
this amount plus 10%, or$101,200.00, on October 25, 2017.
Ms. Colella rejected the City's offer and the matter proceeded to eminent domain. The
case was filed on January 24, 2018 and due to several delays associated with judicial
reassignments, the Order of Taking was entered on July 31, 2018. This date is the date of value.
The matter was mediated on March 28, 2019.
Prior to the mediation the property owner presented the City with its appraisal,
prepared by Richard Dreggors. Mr. Dreggors' opinion of value for Parcel 101 was $226,100.00.
If the mediation had not been settled and the case proceeded to trial I would have
recommended that the City obtain an updated or new appraisal of the property
contemporaneous with the date of value, July 31, 2018. The Dreggors report identified two
comparable sales of single family residential properties in the proximity of the Colella property
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that occurred in July and September 2018. These two properties were very similar to the Colella
property in all relevant aspects: age, condition, size, numbers of bedrooms and baths, etc. In
my opinion these two sales would indicate an estimated value of the Colella property of
$155,000.00. Mr. Robbins' report was prepared over a year prior to the date of value and did
not have the benefit of more current market data emanating from a rising real estate market.
At mediation the parties agreed to a settlement for Parcel 101 in the amount of
$182,500.00. This results in an attorney's fees in the amount of $26,829.00, calculated on the
statutory formula based on the benefits obtained for the property owner.
The parties also agreed on settlement of all expert costs. The property owner submitted
the $26,000.00 in costs but agreed to compromise this amount at $24,000.00, which I deem to
be reasonable. The total amount to be paid by the City pursuant to the Mediated Settlement
Agreement is $233,329.00 with credit given for the $92,000.00 previously deposited.
If the matter had not been settled at mediation but proceeded to trial, the City would
be responsible for not only its costs (attorney's fees and expert costs) but those of the property
owner's as well. I would expect the property owner's expert costs to substantially increase.
The property owner's attorney's fees would be calculated on the ultimate jury award but would
be higher if a jury came back at a number higher than $182,500. The City would also be
responsible for statutory interest at the rate of 6% on the difference between the deposit
amount of$92,000.00 and the jury award. It is quite possible that the City's total exposure for
litigation costs alone could exceed the value of the property acquired.
The Mediated Settlement Agreement, however, is subject to City Commission approval.
It is my opinion this settlement eliminates cost risks effectively and is in the best interest of the
City.
RECOMMENDATION
It is respectfully recommended that the City Commission approve the Mediated
Settlement Agreement, and authorize Staff to execute all documents necessary to conclude
these matters.
MDS/kh
cc: Robert Frank
Craig Shadrix
Michael Rumer
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IN THE CIRCUIT COURT OF THE 9TH JUDICIAL. CIRCUIT,
IN AND FOR ORANGE COUNTY, FLORIDA
CITY OF OCOEE, a municipal corp.,
Petitioner, CASE NO.:2018-CA-732
Parcel 101
v.
MARGARET MCCLOSKEY COLELLA;
and SCOTT RANDOLPH, ORANGE
COUNTY TAX COLLECTOR,
Respondents.
MEDIATION SETTLEMENT AGREEMENT
The Petitioner, City of Ocoee and Respondent, Margaret McCloskey Colella, have
reached the following settlement in mediation:
1. Petitioner agrees to pay Respondent ($182,500.00), one hundred eighty-two thousand
and five hundred dollars, with a credit of$92,000.00 which was deposited on July 31,
2018.
2. Petitioner also agrees to statutory Attorney's fees of($26,829.00), and expert costs of
($24,000.00).
3. Respondent agrees to surrender the possession of the property by June 30, 2019, and
Petitioner agrees that Respondent may remove appliances, faucets, fans,etc.
4. Attorneys for the Petitioner and Respondent shall work together to expedite the
stipulated final judgment and payment in this case.
00315359 1
5. Any other terms and conditions of the mediated settlement agreement are as follows:
City of Ocoee Commission must approve this settlement.
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