HomeMy WebLinkAboutStrategy and Settlement Negotiations: Case No CI098-4279 - Parcel No. 62-165, 62-765, 62-865 SPECIAL MEETING OF OCOEE CITY
COMMISSION: SCRIPT FOR COMPLIANCE
WITH REQUIREMENTS FOR CLOSED MEETING
ON AUGUST 15, 2000:
(1) City Attorney Comments:
The City is currently the Defendant in an action brought by
Orlando/Orange County Expressway Authority. The case was filed in
the Circuit Court for the Ninth Judicial Circuit of Orange County under
Case No. CI 098-4279. As required by Florida Statutes, Section
286.011(8), I have previously advised the City Commission that I desire
to have advice concerning this litigation and to discuss with the City
Commission, in a closed session, matters related to strategy and
settlement negotiations regarding the Western Beltway.
Florida Statutes provide a limited exception from the Sunshine
Law for the City's attorneys to meet in private with the City Commission
to discuss pending litigation to which the City is a party. As required by
Florida law, reasonable notice of the closed session has been given
which identifies the time and date of the closed attorney-client session
and the names of the persons who will be attending. The entire session
will be recorded by a certified court reporter and no portion of the
session may he off the record. The court reporter's notes will be fully
transcribed and filed with the City Clerk. At the conclusion of the
litigation, the transcript of the meeting will become a public record. It is
not permissible to leave the meeting to consult with other persons
regarding the subject matter of the meeting. Following the conclusion of
the closed session, it will be necessary to meet in public in order to
adjourn the meeting.
(2) Mayor Vandergrift should announce the following:
Our City Attorney has previously requested a closed session with
the City Commission to discuss strategy and settlement negotiations
regarding Parcels No. 62-165, 62-765, and 62-865 (Western Beltway) in
the case described by the City Attorney. The persons who will be
attending the closed session are Mayor Vandergrift, Commissioner
Anderson, Commissioner Howell, Commissioner Johnson,
Commissioner Parker, City Manager Ellis Shapiro, City Attorney
Rosenthal, Assistant City Attorney Doty, the Court Reporter, and no
others. It is estimated that the closed attorney-client session will last
one-half hour. Following the conclusion of the attorney-client session,
the meeting will be reopened in order to announce the termination of the
closed session and take such other action as the City Commission may
deem appropriate. The City Commission will now move into closed
session.
(3) Comments by Mayor Vandergrift following closed session:
I hereby reopen the Special Meeting of the City Commission and
announce that the closed attorney-client session has been terminated.
The time is p.m. Are there any comments from the members
of the City Commission or any proposed actions?
NOTICE
PURSUANT TO SECTION 286.011, FLORIDA STATUTES
THE OCOEE CITY COMMISSION
WILL MEET IN SPECIAL SESSION
FOR AN ATTORNEY-CLIENT MEETING
TO DISCUSS STRATEGY AND SETTLEMENT NEGOTIATIONS
IN THE CASE OF ORLANDO/ORANGE COUNTY
EXPRESSWAY AUTHORITY vs
CITY OF OCOEE, FOREST LAKE GOLF CLUB, LTD.,
AND EARL K. WOOD, TAXCOLLECTOR,
ORANGE COUNTY, FLORIDA
ON AUGUST 15, 2000 AT 6:45 P.M.
IN THE CITY COMMISSION CHAMBERS
AND CONFERENCE ROOM
IN ACCORDANCE WITH FLORIDA STATUTES SECTION 286.011(8).
PRESENT WILL BE MAYOR VANDERGRIFT,
COMMISSIONER HOWELL, COMMISSION ANDERSON,
COMMISSIONER JOHNSON, COMMISSIONER PARKER,
CITY MANAGER ELLIS SHAPIRO,
CITY ATTORNEY PAUL ROSENTHAL,
ASSISTANT CITY ATTORNEY MARY DOTY,
THE COURT REPORTER AND NO OTHERS.
THE SESSION WILL COMMENCE AT AN OPEN MEETING.
AT THE CONCLUSION OF THE ATTORNEY-CLIENT SESSION,
THE PUBLIC MEETING WILL BE REOPENED.
FOLEY & LARDNER
ATTORNEYS AT LAW
CHICAGO POST OFFICE BOX 2193 SACRAMENTO
DENVER ORLANDO, FLORIDA 32802-2193 SAN DIEGO
JACKSONVILLE I II NORM ORANGE AVENUE, SURE 180O SAN FRANCISCO
LOS ANGELES ORLANDO, FLORIDA 32801-2386 TALLAHASSEE
MADISON TELEPHONE'. (407)423-7656 TAMPA
MILWAUKEE FACSIMILE- 1407)e48-1743 WASHINGTON, D.C.
ORLANDO WEST PALM BEACH
WRITER'S DIRECT LINE
(407)423-7656
EMAIL ADDRESS CLIENT/MATTER NUMBER
mdoty@foleylaw.com 020377-0463
CONFIDENTIAL MEMORANDUM
TO: The Honorable Mayor and City Commissioners of the City of Ocoee
FROM: Mary A. Doty, Esq., Assistant City Attorney Alltb
THROUGH: Paul E. Rosenthal, Esq.,City Attorney
DATE: August 8, 2000
RE: City of Ocoee adv. Orlando/Orange County Expressway Authority (Case No.
CI098-4279): Proposed Settlement
Since early 1998 the City has been a defendant in ongoing eminent domain
litigation with the Orlando/Orange County Expressway Authority ("0/OCEA") over the
acquisition by 0/OCEA of 15.751 acres of city owned property located at the site of the
Forest Lake Golf Club. The City of Ocoee and 0/OCEA participated in court ordered
mediation on July 25, 2000. The matter was set for trial in November 2000. City Manager
Ellis Shapiro, City Engineer Jim Shira, City Attorney Paul Rosenthal, and I attended the
mediation on behalf of the City of Ocoee. The mediation resulted in a settlement agreement,
conditioned upon approval by the Ocoee City Commission and the 0/OCEA Board, of the
payment of$250,000.00 to the City to settle any and all claims for compensation for the taking
of the referenced property. For the reasons set forth below, all of the participants in the
mediation recommend approval of the settlement agreement.
As you may recall the 0/OCEA's initial offer to the City for this property was
$12,900.00. This amount was also the amount that was testified to at the Order of Taking as
O/OCEA's good faith estimate of value. Upon entry of the Stipulated Order of Taking this
amount was deposited in the Court Registry by 0/OCEA and immediately withdrawn by the
City of Ocoee. This offer was based on 0/OCEA's contention that the property acquired by
0/OCEA was encumbered by a conservation easement in favor of the Florida Game and
Freshwater Fish Commission ("FGFWFC") and that in order to obtain a release of the
conservation easement to construct the Beltway, 0/OCEA would have to pay approximately
$250,000.00 to FGFWFC. 0/OCEA hired two appraisers to appraise the City's property.
Richard Klusza and Walter Carpenter appraised the property for 0/OCEA and arrived at
values of $300,000.00 and $278,820.00, respectively, for the property taken.
006.189850
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FOLEY & LARDNER
The Honorable Mayor and City Commissioners
of the City of Ocoee
August 8, 2000
Page 2
Both appraisers then subtracted the $250,000.00 estimate for the cost of the release of the
conservation easement from the appraised value of the property. This was the basis for
0/OCEA's offer of $12,900.00. Subsequent to the entry of the Order of Taking, 0/OCEA
actually obtained a release of the conservation easement from the FGFWFC at a much lower
cost, $113,250.00. Mr. Klusza and Mr. Carpenter then revised their estimates of value to
$186,750.00 and $165,570.00, respectively.
The City of Ocoee obtained appraisals from Steve Matonis and Woodward
Hanson. Mr. Matonis concluded to a value of $720,000.00 and Mr. Hanson arrived at a value
of $941,700.00. The difference in the 0/OCEA and City appraisals consists of two factors.
The City of Ocoee maintained that 0/OCEA was responsible for the release of the
conservation easement and any deduction for the cost of this release from the land value of the
property taken was improper. The second factor is that Mr. Matonis and Mr. Hanson both
found severance damages to the remainder property due to the elevation of the Beltway and the
fact that the western remainder of the property would no longer have roadway access adequate
for residential development. This severance damage determination is premised on the
conclusion that, if the remainder property were vacant, its highest and best use would be for
single-family residential development. Subtracting the values assigned to severance damages,
Mr. Matonis arrived at a land value of$283,500.00 and Mr. Hanson arrived at a land value of
$216,800.00. Copies of all four of the appraisals are available for review in the City Clerk's
office.
At the mediation 0/OCEA objected to the City's claim of severance damages,
citing the fact that the City's remainder property is encumbered by a fifty year lease in favor
of Forest Lake Golf Club with a twenty-five year option to renew. It is our opinion that
0/OCEA's position on this issue is credible and that the maintenance of the City's position on
Mr. Matonis' and Mr. Hanson's opinions as to severance damages contains a high degree of
risk if the matter proceeded to trial. During the mediation O/OCEA steadfastly maintained
that it would not pay any monies related to the City's severance damage claim, but it was
willing to compromise on the issue of the conservation easement. The $250,000.00 settlement
amount represents the average of the land value amount between the Matonis and Hanson
appraisals obtained by the City.
The settlement is a net amount to the City. At the outset of the case, Foley &
Lardner agreed to accept attorneys' fees as awarded by the Court which would be paid by
O/OCEA, not the City. Additionally, the 0/OCEA will be responsible for paying the City's
appraisal and consulting fees in connection with this case.
In the event this case were to go to trial the Court would find limited case law
regarding the severance damage and conservation easement issues. The risk of an adverse
judgment would be substantial on both sides. All of the City participants in the mediation
believed that the two governmental entities should make every reasonable effort to avoid
facing each other in court over these issues. It is our opinion that the settlement is fair and a
demonstration of goodwill on behalf of both 0/OCEA and the City of Ocoee.
006.189850
FOLEY & LARDNER
The Honorable Mayor and City Commissioners
of the City of Ocoee
August 8, 2000
Page 3
RECOMMENDATION:
It is respectfully recommended that the Mayor and City Commissioners
approve:
1. The mediated settlement agreement; and
2. Authorize the City Attorney to execute any and all documents necessary
to finalize the settlement agreement.
cc: Ellis Shapiro, City Manager
James W. Shira, P.E., City Engineer
006.189850