HomeMy WebLinkAboutIII (H) Approval and Acceptance of Old Winter Garden Road Widening Project: Proposed Settlement with National Developers, Ltd. (Parcel 102) Agenda 9-18-2001
Item III II
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MEMORANDUM
TO: The Honorable Mayor and City Commissioners of the City of Ocoee
FROM: Mary A. Doty, Esq., Assistant City Attorney Orb
THROUGH: Paul E. Rosenthal, Esq., City Attorney
DATE: September 12, 2001
RE: Old Winter Garden Road Widening Project: Proposed Settlement with National
Developers, Ltd. (Parcel 102)
As part of the Old Winter Garden Road Widening Project, the City acquired
Parcel 102 on January 8, 2001, pursuant to an Order of Taking entered by the Circuit Court.
Parcel 102 is a +41,598 square foot parcel that was formerly owned by National Developers,
Ltd. Parcel 102 is located on the northwest corner of Professional Parkway and Old Winter
Garden Road and is vacant and unimproved. Parcel 102 is needed for the realignment and
improvement of the Old Winter Garden Road/Professional Parkway intersection. The property
is zoned C-3 and has a future land use designation of Commercial.
The City first had Parcel 102 appraised by Walter Carpenter on March 12,
1999. Mr. Carpenter reached a value conclusion of$312,000.00. On May 13, 1999, City
Staff made an offer to purchase Parcel 102 to National Developers, Ltd. for the sum of
$312,000.00, suhject to City Commission approval. In response to the City's offer, National
Developers, Ltd. counteroffered for $480,000.00, unsupported by any appraisal.
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Because of the disparity in the valuations attached to the National Developers,
Ltd. property. City Staff recommended that the City proceed with condemnation. In
preparation for filing an eminent domain petition, Staff asked Walter Carpenter to update his
value. In a report with a valuation date of July 2000, Mr. Carpenter arrived at a value of
$353,600.00, based on an $8.50 per square foot value. Prior to the actual filing of the eminent
domain petition, City Staff made another offer to National Developers, Ltd., this time in the
amount of$353,600.00. The City received no response to this offer.
As mentioned above, the City acquired title to Parcel 102 on January 8, 2001 with a
deposit of$353,600.00. National Developers, Ltd. has now provided Staff with an appraisal
prepared on its behalf by Hastings & Spivey. Mr. Spivey concludes to a value of$436,800.00
based on $10.50 per square foot.
I have reviewed the appraisal reports prepared by Mr. Carpenter and Mr. Spivey. In
my opinion both reports are within the range of reason and are free from any obvious errors
that would have a material impact on value. A jury, presented with these two opinions of
value, would he free to arrive at any value between $353,600.00 and $436,800.00. Copies of
both reports are available in the City Clerk's office for review.
We have now been approached by National Developers, Ltd. with a settlement offer of
$405,000.00 for Parcel 102. National Developers, Ltd.'s proposed settlement offer is
$51,400.00 more than the City's appraisal, an increase of 15%. It is, however, only
$31,800.00 below National Developers Ltd.'s appraised value of$436,800.00. It is my
opinion that continuing to litigate the matter in the hopes of obtaining a settlement or a verdict
more favorable to the City of Ocoee would not be cost effective. Not only does the City of
Ocoee have to pay the reasonable expenses of the property owner's experts if the matter were
to go to trial, the City would incur experts' fees and attorneys' fees of its own. There is no
guarantee that the City would achieve a better result than the $405,000.00 offered by National
Developers. Ltd. I remind the City Commissioners that the cost of this acquisition is governed
by the Interlocal Agreement between the City of Ocoee and Orange County and that Orange
County is obligated to pay 46% of the acquisition costs for property in this area of Old Winter
Garden Road.
This settlement figure generates a statutory attorneys' fee obligation in the amount of
$34,190.00. The City is obligated to pay the reasonable appraisal and engineering costs
incurred by National Developers. Invoices for $10,437.50 for appraisal services and
$3,763.26 for engineering services were submitted. National Developers has agreed to accept
$3,200 for engineering fees. We have been unable to reach an agreement on the appraisal fees
and this matter will now be heard by the Court at a fee hearing.
I am unable to attend the City Commission meeting for which this item is scheduled for
consideration. Please feel free to call me in advance of the meeting with any questions. My
direct number is (407) 244-3259_
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RECOMMENDATION: It is respectfully recommended that the Mayor and City
Commissioners approve the settlement of the eminent domain litigation for Parcel 102,
formerly owned by National Developers, Ltd., by payment of the following amounts:
$405,000.00 to National Developers, Ltd. (less the $353,600.00 previously deposited
in the court registry)
$34,190.00 to I. Ed Pantaleon, Esquire for attorneys' fees
$3,200 to Peer Resources for engineering services,
and authorizing the City Attorney or Assistant City Attorney to execute a final judgment for
these amounts
cc: Jim Gleason, City Manager
James W. Shira, PE, City Engineer
Paul E. Rosenthal, Esq., City Attorney
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