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HomeMy WebLinkAboutVII (D) Pioneer Key Drainage Improvement Project: Proposed Settlement regarding Parcel 1 Agenda 2-06-2001 Item VII D FOLEY & LARDNER CHICAGO POST OFFICE BOX 2193 SACRAMENTO DENVER ORLANDO. FLORIDA 32002-2193 SAN DIEGO JACKSONVILLE I I I NORTH ORANGE AVENUE, SURE 1800 SAN FRANCISCO LOS ANGELES ORLANDO, FLORIDA 32801-2386 TALLAHASSEE MADISON TELEPHONE. (407)423-7656 TAMPA MILWAUKEE FACSIMILE'. 1407)646-1 743 WASHINGTON, O.C. ORLANDO WEST PALM BEACH WRRER'S DIRECT LINE (407) 423-7656 EMAIL ADDRESS CLIENT/MATTER NUMBER mdoty@foleylaw.com 020377/0559 MEMORANDUM TO: The Honorable Mayor and City Commissioners of the City of Ocoee FROM: Mary A. Doty, Esq., Assistant City Attorney THROUGH: Paul E. Rosenthal, Esq., City Attorney DATE: January 24, 2001 RE: Pioneer Key Drainage Improvement Project: Proposed Settlement regarding Parcel No. 1 (Vosilla, Baker and Zalloum) As part of the Pioneer Key Drainage Improvement Project, the City acquired Parcel 1 on January 5, 2001 pursuant to an Order of Taking entered by the Circuit Court. Parcel 1 is a ±4,000 square foot vacant lot located on the east side of Periwinkle Key Drive within the Pioneer Key Trailer Park. The property was formerly owned by Sam Zalloum. John Robinson of Property Valuation and Consultants, Inc. appraised the property for the City and arrived at an opinion of value of$17,000.00, absent liens and encumbrances. The title report on this property shows a complicated history. Mr. Zalloum acquired title to the property on September 10, 1999 through a quit-claim deed executed by Robert Finn. Mr. Finn acquired title on July 16, 1999 through a special warranty deed executed by John Vosilla and Julie Baker. In exchange for the special warranty deed, Mr. Finn executed a mortgage in favor of Mr. Vosilla and Ms. Baker. Mr. Vosilla and Ms. Baker acquired title to the property on June 8, 1999 through a tax deed. Prior to the issuance of the tax deed, the property was owned John Skiffington, now deceased. The title report indicates that there is some uncertainty as to whether the mortgage executed by Mr. Finn in favor of Vosilla and 006.207161.1 A MEMBER OF GLOBALEX wm MEMBER sncn IN ESTABLISHED cI1)EN,F 4N4i I.BE l oHevµ SIM6ArC) i,S__R10EM nw$IUI'I Rv Baker was properly satisfied. Consequently, Mr. Vosilla and Ms. Baker are identified as defendants in the eminent domain proceeding. Mr. Vosilla, Ms. Baker, and Mr. Zalloum are all represented by Attorney Kurt Garber. The title report also indicates that the City of Ocoee is the holder of four notices of claim of lien and one order imposing fine and lien on the property for code enforcement violations. The code enforcement violations all deal with the failure of Mr. Skiffington to keep the property mowed. According to Shelly Simon, City of Ocoee's Code Enforcement Officer, these liens have now accumulated interest penalties in excess of$32,000.00. The actual cost to the City for mowing the property as set forth in the five liens is $485.00. Mr. Garber has now presented a settlement offer on behalf of Mr. Vosilla, Ms. Baker, and Mr. Zalloum in the amount of$16,000.00, inclusive of interest, attorneys' fees and costs. This amount is $1,000.00 less than the appraised value of the property. Mr. Garber has asserted that the mowing liens accrued on the property after Mr. Skiffington, the previous owner of the property, had died. He asserts that Mr. Zalloum purchased the property without a title insurance policy and was unaware that the liens encumbered the property. Mr. Garber has also indicated that on behalf of Mr. Zalloum, he intends to challenge the validity of the City's ±$32,000.00 lien claims on the property. These issues would be addressed in an apportionment hearing. Pursuant to Florida Statutes, the City is obligated to pay the attorneys' fees incurred by property owners in apportionment proceedings. The code enforcement issues are complicated and in my opinion the City would spend more money litigating the issues than it could ever hope to recover in this situation. If the City litigated its right to ±$32,000.00 in the context of an eminent domain suit, I would be concerned about the court's view of the equities in this case. Mr. Garber's offer of$16,000.00, $1,000 less than the City's appraised value, allows the City to recover its actual expenses incurred in keeping Mr. Zalloum's property mowed. RECOMMENDATION: It is respectfully recommended that the Mayor and City Commissioners approve the settlement of the eminent domain litigation for Parcel 1, formerly owned by Sam Zalloum, by payment of$16,000.00 to the Wilson, Leavitt & Small trust account, in complete satisfaction of all claims of defendants John Vosilla, Julie Baker, Sam Zalloum, inclusive of interest and attorneys' fees and costs and authorizing the City Attorney or Assistant City Attorney to execute a final judgment for this amount. cc: Jim Gleason, Acting City Manager James W. Shira, PE, City Engineer 006.207161.1 -2