SUBJECT
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Approve the Stipulated Final Judgement with PH Citrus, LLC for PRWC Parcel Number 5038 Permanent and Temporary Construction Easements (Action)
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DESCRIPTION
On March 19, 2024, the Tenth Judicial Court for Polk County approved a Stipulated Final Judgement to acquire easements on parcel 5038, owned by PH Citrus, LLC., based upon the PRWC’s power of Eminent Domain. Through this process the PRWC and PH Citrus negotiated the compensation owed to PH Citrus for the permanent and temporary easement.
Pursuant to the negotiated terms, PH Citrus will receive $223,325 for one permanent easements (3.079 acres) and one temporary construction easements (0.60 acres). The acquisition of the easements results in the loss of 227 citrus trees and the relocation of existing irrigation mains, fencing, and gates.
The PRWC appraised cost for the permanent and temporary construction easements was $106,150. The appraised cost did not include the value of the citrus trees within the easement or impacts to the existing irrigation system. PH Citrus provided a counteroffer to the PRWC appraised value inclusive of the cost for citrus tree loss, irrigation system relocation, and land value of $409,410. Following negotiation an agreement was reached with PH Citrus, LLC at a cost to the PRWC of $223,325 based upon the following breakdown:
Land cost for the 5038 PE & TCE $106,150 (PRWC appraisal amount)
Irrigation replacement costs $3,675
Citrus tree loss cost $113,500
TOTAL $223,325
The increase in the amount of compensation provided to PH Citrus, LLC above the PRWC appraised value is considered reasonable and appropriate given the additional items considered such as citrus tree loss and changes to the grove irrigation system. The PRWC is also required to pay statutory attorney fees mandated under Florida law of $38,733.75. There are no additional expert fees. The total cost for the easement is $262,058.75.
The negotiated settlement has numerous benefits to the PRWC as outlined below:
1) The settlement is just over half of the owner’s opinion of compensation and uses the PRWC appraisal amount for the land;
2) A jury trial and mediation were avoided, which would have exposed the PRWC to an additional estimated $100,000-$200,000 in costs;
3) The PRWC avoided the option of routing the transmission line in an alternate location, likely avoiding additional design, acquisition, and construction costs.
Acquisition of easements associated with PRWC Parcel 6006 (0.516 Acre Permanent Easement and 0.18 Temporary Construction Easement) was also completed as a part of the negotiations with PH Citrus, LLC. The PRWC appraised value for this easement was $22,000 and the negotiated final price paid to PH Citrus, LLC was $75,675 with statutory attorney fees of $17,712.75 (no expert costs). The acquisition of the easements results in the loss of 100 citrus trees and the relocation of existing irrigation mains, fencing, and gates. This settlement was approved by the PRWC Executive Director following the land acquisition process and cost thresholds detailed in PRWC Resolution 2024-12.
RECOMMENDATION
Approve the Stipulated Final Judgement with PH Citrus, LLC for PRWC Parcel Number 5038 Permanent and Temporary Construction Easements.
FISCAL IMPACT
The Stipulated Final Judgement provides that the PRWC will pay $262,058.75 (inclusive of attorney fees) for PRWC Parcel Number 5038 Permanent and Temporary Construction Easements. 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