HomeMy WebLinkAboutItem 03 Approval of the Aycock Mediated Settlement Agreement ocoee
florida
AGENDA ITEM COVER SHEET
Meeting Date: January 7, 2020
Item # 3
Reviewed By:
Contact Name: Mary Solik, Esq. Department Director:
Contact Number: 407.367.7868 City Manager:
Subject: Aycock Mediated Settlement Agreement
Background Summary:
The City needs to acquire Parcel 105 from Richard and Jane Aycock 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 is needed for the Downtown Master Stormwater Pond.
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:
$246,250.00
Type of Item: (please mark with an `k')
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
DOTY
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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: December 23, 2019
RE: City of Ocoee v. Richard and Jane Aycock, Parcel 105
BACKGROUND
The referenced case is a condemnation action. Parcel 105 is necessary for the
construction of the Downtown Master Stormwater Pond. The 26,092 square foot parent tract is
owned by Richard and Jane Aycock and is located at 127 N. Cumberland Street. The property is
improved with a 1,368 sq. ft. duplex residential structure built in 1959. The property is a rental.
Craig Ebaugh, the City's appraiser, first appraised the property in April 2018. He
concluded to a value of$123,000.The initial presuit offer was made to the property owner in this
amount plus 10%, or$135,300, on June 28, 2018.
The Aycocks rejected the City's offer and the matter proceeded to eminent domain. The
case was filed on August 26, 2019. As the initial appraisal prepared by Craig Ebaugh was dated,
he was asked to update his opinion of value. Mr. Ebaugh's updated opinion of value for Parcel
105 is$160,000. The Order of Taking hearing is set for January 29, 2020. The Aycocks requested
that we mediate the case in advance of the Order of Taking hearing as a way of resolving the case
sooner. The City agreed to advance mediation which was scheduled for December 12, 2019.
In an effort to keep the expert costs low and with Staff approval the Aycocks presented
to the City summary appraisal information prepared by Richard Dreggors. Mr. Dreggors' opinion
of value for Parcel 105 was $267,400. The differences in opinion between the two appraisers
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are related to the valuation of excess land on the site and its development potential as well as
the valuation of the existing improvements.
At mediation the parties agreed to a global settlement for Parcel 105 in the amount of
$246,250, inclusive of all attorneys' fees and expert costs. Because the case was settled on a
global number we do not know the breakdown between land value, attorneys' fees, and expert
costs. We do know that the expert costs incurred to date were approximately $13,000. 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. Given the difference
in opinion between the appraisers on the development potential of the excess land the City
would have had to hire its own land planning and civil engineering experts. If the case proceeded
to trial is it quite possible that the City's total exposure for litigation costs alone could exceed the
value of the property acquired. The global settlement amount agreed to at mediation is reflective
of cost avoidance.
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
Steve Krug
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IN THE CIRCUIT COURT OF THE
9TH JUDICIAL CIRCUIT IN AND FOR
ORANGE COUNTY, FLORIDA
CITY OF OCOEE, a municipal corporation
created by and existing under the laws of the
State of Florida, Case No. 2019-CA-010539-0
Division: 34
Parcel No.: 105
Petitioner,
vs.
RICHARD D. AYCOCK; JANE AYCOCK; BANK
OF AMERICA,N.A.; and SCOTT RANDOLPH,
ORANGE COUNTY TAX COLLECTOR, et al.,
Defendants.
MEDIATED SETTLEMENT AGREEMENT
At a Mediation Conference held on December 12, 2019, the parties reached the
following Settlement Agreement.
1. CITY OF OCOEE will pay to RICHARD D. AYCOCK AND JANE
AYCOCK, the sum of TWO HUNDRED FORTY SIX THOUSAND TWO HUNDRED
FIFTY DOLLARS ($246,250.00), less any real estate taxes due and owing through the
date of taking, in full settlement of all claims for compensation for the taking and any and
all damages, and including all attorney's fees, expert fees, costs, and any apportionment
claims from all parties. This Settlement Agreement resolves and includes all
apportionment claims by RICHARD D. AYCOCK AND JANE AYCOCK.
2. The parties agree to enter into a Stipulated Order of Taking and Final Judgment
and enter same with the Court on or before January 29,2020.
3. The Defendants, RICHARD D. AYCOCK AND JANE AYCOCK, shall
have extended possession of the property until April 30, 2020 and may remove any and all
improvements on the property prior to the date of vacating the premises. All vehicles shall
be removed from the premises on or before April 30, 2020.
4. The Defendants,RICHARD D. AYCOCK AND JANE AYCOCK, shall be
given at least forty-eight(48)hours notice prior to any geotechnical work being conducted
by the City, and the Defendants shall grant access to the City's representatives for all
necessary geotechnical work.
5. This settlement is subject to Commission approval on or before January 21,
2020. Payment of the compensation set forth herein shall be deposited into the Court
Registry within thirty (30) days from the date of Commission approval.
6. This Agreement is dated December 19, 2019, and attached addendum, if
any, contain(s) all of the agreements of the parties.
CITY OF OCOEE
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ED PANTALEON (Mediator)
Florida Bar No: 603546
Pantaleon Law Firm
7479 Conroy Windermere Road, Suite B
Orlando, Florida 32835
(407) 392-2207
ed@pantaleonlaw.com
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