HomeMy WebLinkAboutItem 04 Approval of Zosel Mediated Settlement Agreement 6fp-
ocoe
florida
AGENDA ITEM COVER SHEET
Meeting Date: February 18, 2020
Item # H
Reviewed By:
Contact Name: Mary Solik, Esq. Department Director:
Contact Number: 407.367.7868 City Manager: �r��/��!
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Subject: Zosel Mediated Settlement Agreement
Background Summary:
The City needs to acquire Parcels 101, 102, and 103 from Thomas G. Zosel, John T. Zosel, and Cindy M. Zosel
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:
$715,000.00
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
Reviewed by City Attorney N/A
Reviewed by Finance Dept. ( \r . 5 N/A
Reviewed by N/A
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DOTY
S IIS
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: February 6, 2020
RE: City of Ocoee v. Thomas G. Zosel,John T. Zosel, and Cindy M. Zosel, Parcels 101
102, and 103
BACKGROUND
The referenced case is a condemnation action. Parcels 101, 102, and 103 are necessary
for the construction of the Downtown Master Stormwater Pond. The three parcels are
contiguous and located on the south side of Franklin Street between Cumberland Avenue and
Kissimmee Avenue. The properties are all titled in Thomas G. Zosel, Life Estate, with the
remaindermen being Mr. Zosel's two adult children.
Parcel 101 is located at the corner of Franklin Street and N. Cumberland Avenue and
contains 19,293 square feet. The property is improved with an 880 square foot residential
structure built in 1901. The property is a rental.
Parcel 102 is located at the corner of Franklin Street and Kissimmee Avenue. Parcel 102
contains 17,232 square feet. The property is improved with a 1,512 square foot residential
structure built in 1988. This property is occupied by the Zosels.
Parcel 103 is vacant land located south of and contiguous to Parcels 101 and 102. The
property contains a total of 79,745 square feet or 1.83 acres. The property has frontage on both
Cumberland Avenue on the east and Kissimmee Avenue on the west.
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The City has relied upon Craig Ebaugh as its appraiser. The City's first written offer to
purchase the properties was made on July 3, 2019 in the following amounts, all 10% over
Appraisal Value.
Parcel Offer Appraised Value
101 $159,500.00 $145,000.00
102 $209,000.00 $190,000.00
103 $197,340.00 $179,400.00
TOTAL: $565,840.00 $514,400.00
Mr. Zosel rejected the City's offer and the matter proceeded to eminent domain.The case
was filed on October 9, 2019. The Order of Taking hearing is set for March 2, 2020. Mr. Zosel
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
February 4, 2020.
In an effort to keep the expert costs low and with Staff approval Mr. Zosel presented to
the City summary appraisal information prepared by Richard Dreggors. Mr. Dreggors utilized a
different parent tract determination and valued the three properties as a single parent tract. His
opinion of value for all three parcels together was$751,900. The differences in opinion between
the two appraisers are related to the highest and best use of the properties. Mr. Dreggors
concluded that that highest and best use of the three properties was for development of a 30
unit townhome development. Mr. Ebaugh concluded that the highest and best use of Parcels
101 and 102 was for continued residential use as improved and for Parcel 103, low density
residential development.
Through mediation the parties agreed to a total settlement for all three parcels, inclusive
of all attorneys' fees and expert costs in the amount of$715,000.
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 as
well as the City's. To try this case, both parties would have had to engage in very indepth
engineering analysis as to the ultimate development potential of the property, addressing sewer
extension costs, stormwater detention, and flood plain mitigation. The many engineering issues
related to this property would make it an expensive case to work up for trial and the City would
be responsible for paying both parties' costs.
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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. With approval of this Mediated Settlement Agreement the City will have completed the
acquisition of all property necessary to construct the Master Stormwater Pond.
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/aw
cc: Robert Frank
Craig Shadrix
Michael Rumer
Steve Krug
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IN THE CIRCUIT COURT OF THE
NINTH JUDICIAL CIRCUIT, IN
AND FOR ORANGE COUNTY,
FLORIDA
CASE NO: 2019-CA-012335-0
Division: 37
CITY OF OCOEE, a municipal corporation
created by and existing under the laws of
the State of Florida,
Petitioner,
vs.
THOMAS G. ZOSEL; JOHN T. ZOSEL; Parcels: 101, 102, and 103
CINDY M. ZOSEL, and SCOTT RANDOLPH,
ORANGE COUNTY TAX COLLECTOR,
Respondents.
MEDIATED SETTLEMENT AGREEMENT
The parties reached the following Mediated Settlement Agreement.
1. CITY OF OCOEE will pay to THOMAS G. ZOSEL the sum of SEVEN
HUNDRED FIFTEEN THOUSAND DOLLARS AND ZERO CENTS, ($715,000.00),
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
THOMAS G. ZOSEL, JOHN T. ZOSEL, AND CINDY M. ZOSEL.
00333587 1
2. The parties agree to enter into a Stipulated Order of Taking and Final
Judgment and enter same with the Court ex parte by February 18, 2020.
3. Respondents THOMAS G. ZOSEL, JOHN T. ZOSEL, AND CINDY M.
ZOSEL, 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. Respondents agree to keep the
property maintained in an orderly fashion through the period of extended possession.
All vehicles shall be removed from the premises on or before April 30, 2020.
4. Respondents THOMAS G. ZOSEL, JOHN T. ZOSEL, AND CINDY M.
ZOSEL, 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
Respondents shall grant access to the City's representatives for all necessary
geotechnical inspections and testing.
5. This settlement is subject to City of Ocoee City Commission approval
on or before February 18, 2020. Payment of the compensation set forth herein shall
be deposited into the Court Registry within twenty (20) days from the date of
Commission approval.
6. This Agreement is dated February 4, 2020, and attached addendum, if
any, contain(s) all of the agreements of the parties.
00333587 2
CITY OF OCOEE THOMAS G. ZOSEL
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City ofOcoee Thomas G. Zosel
Print:'>-r- ,-r-Z=-4. _ Ca Print:
✓� JOHN T. ZOSEL
City ofOc•-p
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John T. Zosel
Print:
CINDY M. ZOSEL
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Cindy M. Zosel
M-ry D.� •lik Esquire Print: C '()c) ZLXS e I
tory for ity of Ocoee
, I Afi LEON (Mediator) Joseph ►- Ort, Esquire
l;/ Florida Bar No: 603546 Attor - for Thomas G. Zosel, John T. Zosel,
Pantaleon Law Firm & C' ►y Zosel
7479 Conroy Windermere Road, Suite B
Orlando, Florida 32835
(407) 392-2207
ed c(r�pantaleonlaw.corn
00333587 3