SUBJECT
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Approve the Negotiated Settlement Agreement with Wheeler Farms for PRWC Parcel Numbers 4005 PE and TCE, 4006 PE and TCE, 4083 TCE, 7003 PE and TCE, 7004 PE and TCE, 7005 PE and TCE, 7008 PE and TCE, 7010 PE and TCE (Action)
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DESCRIPTION
Following negotiations between the PRWC (American Acquisition Group) and Wheeler Farms, the parties agreed to a settlement agreement on eight parcels owned by Wheeler Farms (see Exhibit A) where fifteen easements are needed for the Southeast Transmission Main Project.
Pursuant to the negotiated terms, Wheeler Farms will receive $990,000 for permanent easements over eight parent parcels consisting of approximately 4.64 acres and temporary construction easements over 0.94 acres. The PRWC appraised cost for the permanent and temporary construction easements over this area was $600,800. Wheeler Farms (through their attorney) initially countered at $1,400,000. After a series of exchanges, a settlement was reached at $990,000, which is $398,200 above the appraised value. This increase over the appraised value is considered reasonable and appropriate given the additional items considered such as:
1) The removal of approximately 539 citrus trees and impacts to additional trees due to operational constraints within the grove;
2) The removal of 57 large sycamore trees that act as a wind break for the citrus operations;
3) The need to establish new fencing and gates over much of the easement area due to the loss of the natural vegetative border to prevent road access to the grove;
4) Impacts to existing irrigation systems for grove irrigation.
The PRWC is also required to pay statutory attorney fees mandated under Florida law. For this negotiation the attorney fee is $120,000. There are no expert fees. The total cost for the easement is $1,110,000.
The mediated settlement agreement has numerous benefits to the PRWC as outlined below:
1) The settlement is $398,200 less than the owner’s opinion of compensation;
2) The settlement provides easements over 7,800 linear feet (1.5 miles) of transmission main;
3) Expert fees were avoided, which could have exposed the PRWC to an additional $50,000.
4) Eliminates the need for an additional PRWC appraisal to include items impacted by construction, such as citrus trees, and potentially elevating our initial appraisal amount;
5) Attorney fees are reduced due to the single negotiation of multiple easements;
A jury trial was avoided, which would have exposed the PRWC to an additional estimated $300-$400,000 in costs.
RECOMMENDATION
Approve the Negotiated Settlement Agreement with Wheeler Farms for PRWC Parcel Numbers 4005 PE and TCE, 4006 PE and TCE, 4083 TCE, 7003 PE and TCE, 7004 PE and TCE, 7005 PE and TCE, 7008 PE and TCE, 7010 PE and TCE (Action).
FISCAL IMPACT
The Negotiated Settlement Agreement provides that the PRWC will pay $1,110,000 (inclusive of attorney fees) for the eight PRWC parent parcels where fifteen easements will be acquired. These costs are anticipated to be reimbursed through a Heartland Headwaters Protection and Sustainability Act grant. A total of $21,229,000 is budgeted for Southeast Wellfield Transmission Main land costs.
CONTACT INFORMATION
Eric DeHaven