HomeMy WebLinkAboutItem 10 Approval of the Setaram Mediated Settlement Agreement
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
STAFF REPORT
Meeting Date: September 16, 2025
Item #: 10
Contact Name: Milen Womack Department Director: Stephen Krug
Contact Number: Ext. 6013 City Manager: Craig Shadrix
Subject: Approval of the Setaram Mediated Settlement Agreement. (City Engineer Womack)
Background Summary:
The City needs to acquire a corner clip portion of Parcel 102 (Parcel ID# 18-22-28-8064-00-492) from
Mahendra Setaram and Dinesh Setaram through an eminent domain Order of Taking. The final valuation of
the property has been resolved through mediation, avoiding the need for a jury trial. The property is needed
for the Taylor Street Improvement Project. Please refer to the memorandum provided by Special Counsel
Mary Doty Solik describing the history and technical details of the mediation process for more information.
Issue:
Should the Honorable Mayor and City Commissioners approve the Mediated Settlement Agreement, and
authorize staff to execute all necessary documents?
Recommendations:
Staff recommends the Honorable Mayor and City Commissioners approve the Mediated Settlement
Agreement, and authorize staff to execute all necessary documents.
Attachments:
1. Seteram Mediated Settlement Agreement
2. Seteram Settlement Memo
Financial Impacts:
The $156,026.02 is adequately funded in the Taylor/Kissimmee project on Job P000269 GL acct 317-541-10-
6300.
Type of Item: Consent
Mary Doty Solik, Esq.
121 S. Orange Ave., Ste. 1500
Orlando, FL 32801
DOTY SOLIK LAW
MEMORANDUM
407-367-7868
msolik@dotysoliklaw.com
fax: 407-377-6801
TO: The Honorable Mayor and Commissioners of the City of Ocoee
FROM:
DATE:
RE:
Mary Doty Solik, Special Counsel
September 4, 2025
City of Ocoee v. Mahendra Setaram and Dinesh Setaram, Parcel 102
BACKGROUND
The referenced case is a condemnation action. Parcel 102 is necessary for the
construction of the Taylor and Franklin Streets Intersection Improvement Project. The .23 acre
parent tract is owned by Mahendra Setaram and Dinesh Setaram (brothers) and is located at the
northwest corner of Taylor and Franklin Streets. The property is vacant and unimproved. Parcel
102 is a partial taking of the .23 acre parent tract. Parcel 102 is a 518 square foot corner clip
needed to build the proposed roundabout at Taylor and Franklin Streets. The property has a FLU
designation of Commercial and is zoned Rl-A, Single Family Residential. The property has
frontage on both Taylor and Franklin Streets.
Dan DeRango, the City's appraiser, first appraised the property in September 2022. He
concluded to a value of $6725.00. The initial presuit offer was made to the property owner in
this amount plus 10%, or $7397.50, on September 21, 2022.
The Setarams rejected the City's offer and the matter proceeded to eminent domain. The
case was filed on February 9, 2024. The Seterams, represented by Joe Ort, Esq., stipulated to an
Order of Taking on May 7, 2024. Dan DeRango updated his appraisal report for the Order of
Taking hearing. The updated value of $8,100 was deposited as the City's good faith estimate of
value on May 21, 2024 which became the date of value.
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The parties mediated the case on August 27, 2025. Steve Krug and Milen Womack
attended the mediation on behalf of the City. In an effort to keep the expert costs low and with
Staff approval, Mr. Ort presented to the City summary appraisal information prepared by Richard
Dreggors and engineering information prepared by Paul Sharma, P.E. Mr. Dreggors' opinion of
value for Parcel 102 was $9,300.00 for the value of the part taken but found $167,100.00 in
damages due to loss of access in the after condition. The engineering analysis submitted by Mr.
Sharma opined that the small size of the parcel would prevent safe access to either Taylor or
Franklin Streets after the construction of the roundabout.
City Staff was aware of the potential access issue in the design phase of the project. The
City plans did not provide, however, for designed access to the parcel as it is vacant and
improved. Proposed access to the parcel is dependent on the location of proposed improvements
and would have been addressed at the development plan approval . The Seta rams own the larger
parcel to the west of the subject parcel and it is likely that any development on the subject
property would be incorporated with development on the adjoining property. Eminent domain
law related to determinations of parent tracts prevents the City from treating the two properties
as one and declaring that access to the subject property can be provided from the owner's
abutting property.
City Staff, as well as the design engineer, concurred with Mr. Sharma's opinion that the
current design of the roundabout would not allow for safe access to the subject property. City
Staff and the design engineer determined that there was a design modification to the roundabout
that could be made to allow for a driveway on Taylor Street but that such modification would
have the effect of making both vehicular and pedestrian traffic in and around the roundabout
less safe. The overriding public safety interest of the City roadways dictated that the City should
compensate the owner for loss of access rather than redesigning the roundabout.
Through mediation and subsequent negotiation the parties agreed to a settlement for
Parcel 102 in the amount of $110,000.00. A copy of the Mediated Settlement Agreement is
attached. This results in attorneys' fees in the amount of $34,033.83, 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 $11,992.19
which I deemed to be reasonable.
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. It is
my opinion that this Settlement Agreement eliminates risk for both costs and land value and is
in the best interest of the City. The Settlement Agreement, however, is subject to City
Commission approval.
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