SUBJECT
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Approve the Negotiated Settlement with Alcoma Properties LTD. and UPCO, Inc. for PRWC Parcels 5039, 5044, 5058, 5059, 5082, 5041, 5083-A, 5083-B, 5084, 5076, and 5078 Permanent and Temporary Construction Easements (Action)
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DESCRIPTION
Following negotiations between the PRWC and the Attorney representing Alcoma Properties, LTD., and UPCO Inc., the PRWC reached a monetary settlement regarding the easements (5039, 5044, 5058, 5059, 5082, 5041, 5083-A, 5083-B, 5084, 5076, 5078) needed on these properties (Exhibit A).
Pursuant to the negotiated terms, the property owner of these four parcels will receive $700,000 for permanent and temporary construction easements totaling 6.78 acres. The PRWC appraisal amount for permanent and temporary construction easements was $230,600. The property owner (through their attorney) initially countered at $1,034,500. After a series of cost exchanges, a settlement was reached at $700,000 which is $469,400 above the appraised value. The increase in the amount of compensation provided to the property owner above the appraised value is considered reasonable and appropriate primarily due to the loss of approximately 381 citrus trees and the associated infrastructure.
The PRWC negotiated expert fee invoices in the amount of $75,294.80. Statutory attorney fees mandated under Florida law are $155,380.50. The total cost for the easement is $930,675.30.
The negotiated settlement has numerous benefits to the PRWC as outlined below:
1) The settlement is $334,500 less than the owner’s opinion of compensation;
2) A jury trial was avoided, which would have exposed the PRWC to an additional estimated $300,000-$400,000 in costs;
3) The PRWC transmission line can remain as designed despite impacts to an active citrus grove and former sand mining area with some potential for residential development.
This settlement was negotiated and settled by the PRWC’s eminent domain attorney (Policastro Law Group) with the property owner’s attorney. Easements were acquired from the property owner by Order of Taking’s on January 9, 2024, and April 4, 2024. The PRWC attorney will file the Stipulated Final Judgements for all parcels to finalize the agreement.
RECOMMENDATION
Approve the Negotiated Settlement with Alcoma Properties LTD. and UPCO, Inc. for PRWC Parcel Numbers 5039, 5044, 5058, 5059, 5082, 5041, 5083-A, 5083-B, 5084, 5076, 5078 for Permanent and Temporary Construction Easements.
FISCAL IMPACT
The Negotiated Settlement provides that the PRWC will pay $930,675.30 (inclusive of attorney and expert fees) for the Permanent and Temporary Construction Easements. These costs are expected 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