CITY OF TALLAHASSEE
CITY COMMISSION AGENDA ITEM
ACTION REQUESTED ON: May 13, 2009
SUBJECT/TITLE: Approval of a Settlement Agreement to Purchase Property Acquired for the Orange Avenue Extension Project
TARGET ISSUE:

STATEMENT OF ISSUE

In January 2000, the Commission approved the alignment for the Orange Avenue Extension from approximately Blair Stone Road to Capital Circle Southeast, utilizing a portion of the existing Paul Russell Road and continuing east through essentially undeveloped property terminating at the previous intersection of Duchaine Drive and Capital Circle southeast. The length of the total project is 0.93 miles.

Construction on the project began on July 24, 2007, and was completed and the road opened on February 24, 2009.

This item seeks approval of a proposed settlement of Parcels 104 and 804, which was acquired for right-of-way and a stormwater easement. Parcel 104 consists of approximately 5.75 acres and parcel 804 consists of .8439 acres.

The proposed settlement is set forth below.

RECOMMENDED ACTION

Option 1. Approve the proposed settlement agreement.

FISCAL IMPACT

The funding for this settlement will be from the balance of the Orange Avenue Extension Project No. 96398.

James R. English, City Attorney

For Information, please contact: Jim English, City Attorney, Ext. 8554

SUPPLEMENTAL MATERIAL/ISSUE ANALYSIS
HISTORY/FACTS & ISSUES

The subject parcels were acquired through the City of Tallahassee’s exercise of its condemnation powers. The parcels were necessary for the right-of-way for the Orange Avenue Extension Project as well as for the construction of a drainage easement for conveyance to a stormwater facility built for the project. The parent tract of 26.17 acres is owned by G & A Enterprises of Tallahassee, LLC, whose principals are Thomas Asbury and members of the Ghazvini family. The MAI appraisers retained by the City and G & A did not differ substantially on the value of the land taken. The vast difference of opinion related to the question of whether or not there was severance damage to the remaining property. The City’s MAI appraiser is of the opinion that there was no severance damage but the property owners’ MAI appraiser is of the opinion that there is severance damage and that the amount of that damage is approximately $630,000. Numerous efforts have been made to settle the case with the parties meeting in good faith on a number of occasions. The parties were unable to reach a settle that could effectively be consummated. The case has been set for trial for June 1, 2009. Recently the principals of G & A and Assistant City Manager Tom Coe with assistance from Public Works staff have entered into a new set of negotiations to attempt to reach a settlement. Those discussions were successful and are discussed below.

PROPOSED SETTLEMENT

The terms of the settlement reached are as follows:

1. G & A will retain and keep as the sole cash payment for the taking and any severance damage in the amount of $406,840, which was deposited by the City on February 27, 2006, as its fair estimate deposit.

2. Each party will pay all of its own attorneys’ fees, expert witness fees, court costs, etc.

3. G & A will be entitled, at its cost, to design, permit, and construct a median opening (and any requisite accelerations, deceleration, and turn lanes) to allow access to the westbound and eastbound lanes of Orange Avenue between its north and south remainders.

4. G & A through its associated entity T & T of Tallahassee, Inc., will donate to the City all of the property needed by the City that is owned by the entities it controls for the additional right-of-way needed for the Weems Road extension.

5. G & A and its associated entities will assist the City in working with the Weems Plantation Owners Association, Inc., to have acquired at no cost to the City property needed for right-of-way which is part of the plat of the Weems Plantation.

6. The City will relieve G & A, Ghazvini/Asbury developer entities of the obligation previously established by the City to either bring sidewalks in certain subdivisions into ADA compliance or pay a fee in lieu thereof.

OPTIONS

Option 1. Approve the proposed settlement agreement.

Option 2. Do not approve the proposed settlement agreement.

ATTACHMENTS/REFERENCES

None