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HomeMy WebLinkAboutItem 06 Approval of Anasis Settlement Agreement ocoee rlorlda AGENDA ITEM COVER SHEET Meeting Date: January 21, 2020 Item # Reviewed By: Contact Name: Mary Solik, Esq. Department Director: Contact Number: 407.367.7868 City Manager: Subject: Anasis Settlement Agreement Background Summary: The City needs to acquire Parcel 104 from Charles M. Anasis 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 Settlement Agreement subject to City Commission approval. Recommendations: Approve attached Settlement Agreement. Attachments: Memorandum and Settlement Agreement. Financial Impact: $264,611.05 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 N/A Reviewed by City Attorney Reviewed by Finance Dept. N/A Reviewed by N/A 2 DQTY vki • So K LA 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: January 8, 2020 RE: City of Ocoee v. Charles M.Anasis, Parcel 104 BACKGROUND The referenced case is a condemnation action. Parcel 104 is necessary for the construction of the Downtown Master Stormwater Pond. The 17,087 square foot parent tract is owned by Charles M. Anasis and is located at 10 Franklin Street. The property is improved with a 984 sq. ft. residential structure built in 1930 and a 1,302 square foot metal garage building constructed in 2004. The property is owner occupied. Craig Ebaugh, the City's appraiser, first appraised the property in April 2018. He concluded to a value of$128,000.00. The initial presuit offer was made to the property owner in this amount plus 10%, or$140,800.00, on June 28, 2018. Mr. Anasis 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 104 is $160,000.00. The Order of Taking hearing is set for January 29, 2020. Mr. Anasis 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 19, 2019. In an effort to keep the expert costs low and with Staff approval Mr. Anasis presented to the City summary appraisal information prepared by Richard Dreggors. Mr. Dreggors' opinion of 1 value for Parcel 104 was $191,900.00 for the home and $59,500.00 for the garage for a total of $251,400.00. The differences in opinion between the two appraisers are related to the metal garage building on site as well as the valuation of the existing home. Through mediation and subsequent negotiation the parties agreed to a settlement for Parcel 104 in the amount of $227,500.00. The results in attorneys' fees in the amount of $28,611.00, calculated on the statutory formula based on the benefits obtained for the property owner. The parties also agreed on settlement of all expert costs in the amount of $8,336.05 which I deem to be quite reasonable. Mr. Anasis also incurred $164.00 in hard costs for title work and subpoena service, also the City's obligation under Florida law. The total amount to be paid by the city pursuant to the Settlement Agreement is $264,611.05. 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 $227,500.00. It is quite possible that the City's total exposure for litigation costs alone could exceed the value of the property acquired. The 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 Settlement Agreement, and authorize Staff to execute all documents necessary to conclude these matters. MDS/aw cc: Robert Frank Craig Shadrix Michael Rumer Steve Krug 2 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.: 104 Petitioner, vs. CHARLES M. ANASIS;and SCOTT RANDOLPH, ORANGE COUNTY TAX COLLECTOR, et al., Defendants. SETTLEMENT AGREEMENT The parties reached the following Settlement Agreement, 1. CITY OF OCOEE will pay to CHARLES M.ANASIS, the sum of TWO HUNDRED SIXTY FOUR THOUSAND SIX HUNDRED ELEVEN DOLLARS AND - • FIVE CENTS ($264,611.05),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 CHARLES M. ANASIS. 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. 0033066! 3, The Defendant CHARLES M.ANASIS,shall have extended possession of the property at no cost until April 30,2020 and may remove any and all improvements and personal property on the property prior to the date of vacating the premises. 4. The Defendant,CHARLES M. ANASIS,shall be given at least forty-eight (48) hours notice prior to any geotechnical inspections or testing being conducted by the City on the subject property, and the Defendant shall grant access to the City's representatives for all necessary geotechnical inspections and testing. 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 January 7, 2020, and attached addendum,if any, contains)all of the agreements of the parties. CITY OF OCOEE CHARLES M.ANASIS • • ( [AJ 'vi ( j ; City of Ocoee Charles M.Anasis Print Name: 1'U9at/ !�,V�1 Print: �. �l l/4{I (-I.% nit V' Pi,r.}S°1 S • • aiy . Sol. Esquire Joseph D. cad, Esquire Attorney for City of Ocoee Attorneyor Charles M. Anasis • O3306S2