SUBJECT:
Title
Request Approval of a Second Amendment to the Right-of-Way and Signalized Intersection Improvements Agreement (SW 38th Street) Between Marion County, Colen Built Development, LLC, and On Top of the World Communities, LLC (Budget Impact - Neutral; expenditure of $1,182,331.05 plus additional amounts to be determined by appraisal)
Body
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INITIATOR: |
DEPARTMENT: |
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Steven Cohoon, PE, County Engineer |
Office of the County Engineer |
DESCRIPTION/BACKGROUND:
This Second Amendment to the Right-of-Way and Signalized Intersection Improvements Agreement (SW 38th Street) is between Marion County (County), Colen Built Development, LLC (CBD), and On Top of the World Communities, LLC (OTOW). It addresses right-of-way dedications, drainage infrastructure, and related cost-sharing obligations associated with the County's SW 38th Street 4-Laning Project, which will widen SW 38th Street from two lanes to four lanes from approximately 3,000 feet east of SW 80th Avenue to SW 43rd Court. The Parties entered into the original Right-of-Way and Signalized Intersection Improvements Agreement on February 7, 2023, recorded in Official Records Book 8096, Page 323; and the First Amendment to the Agreement on November 19, 2024, recorded in Official Records Book 8489, Page 527, in the Public Records of Marion County, Florida. The original Agreement established impact fee credits to OTOW and CBD for right-of-way dedication and construction of temporary intersection improvements at SW 67th Avenue Road and SW 38th Street. The First Amendment addressed the first phase of SW 38th Street right-of-way dedication and required the County to provide related reimbursements to OTOW.
This Second Amendment is necessitated by updated intersection analyses conducted for the SW 38th Street/SW 40th Street corridor, which revealed that a roundabout is justified and recommended at the intersection of SW 67th Avenue Road and SW 38th Street in lieu of the previously planned signalized intersection. This updated analysis led to a design change that altered the County's right-of-way needs from those previously contemplated and partially conveyed under the Agreement, necessitating changes to property acquisition in the area. Specifically, this Second Amendment accomplishes the following:
As a result of the design change to a roundabout, Paragraph 2 of the Original Agreement governing the signalized intersection improvements is deleted in its entirety. In recognition of costs previously incurred by OTOW to comply with that paragraph, the County will provide OTOW a reimbursement of $282,420.15 for design, engineering, legal, surveying, and other related professional fees expended as of the effective date.
The Second Amendment establishes a process for the County to reconvey to OTOW portions of the SW 38th Street right-of-way no longer needed as a result of the design change (Surplus ROW), while OTOW simultaneously conveys to the County additional right-of-way required by the updated design (Additional ROW). The parties have ordered or will order appraisals of both parcels, and the County will compensate OTOW the net difference in appraised values in lieu of eminent domain. The specific dollar amount is to be determined by appraisal.
To accommodate the County's updated drainage needs for the SW 38th Street 4-Laning Project, OTOW will construct a new, larger drainage retention area (Northeast DRA) and a new stormwater conveyance system (Northeast Stormwater Conveyance System) on OTOW's property prior to the anticipated commencement of the County's construction. To formalize the County's interest in the new infrastructure, the Second Amendment terminates an existing Perpetual Drainage Easement granted by OTOW to the County in 2005 (recorded in OR Book 4274, Page 261) and replaces it with a new Northeast Drainage Easement Agreement covering the Northeast DRA and the Northeast Stormwater Conveyance System. The value of the new easement is expected to exceed the value of the terminated easement, and the County will pay OTOW the net difference in appraised values, to be determined by appraisal. Additionally, OTOW will grant the County a Stormwater Inlet and Pipe Easement for a stormwater inlet and pipe adjacent to the SW 38th Street right-of-way, and the County will compensate OTOW the full appraised fair market value of that easement, also to be determined by appraisal.
Construction costs for the Northeast DRA and Northeast Stormwater Conveyance System are apportioned based on volumetric capacity and use, with amounts determined using the County's recently bid SW 80th Avenue 4-Laning Project (ITB# 25B-148) as a pricing benchmark. The County's share of the Northeast DRA construction costs is fixed at $150,766.40, which is 37% of the total calculated cost of $407,476.75. For the stormwater conveyance system, the County is responsible for 100% of the County-Only Stormwater Conveyance System costs, fixed at $46,146.00. For the Shared Stormwater Conveyance System, the County will reimburse OTOW $642,154.00 for the pipe sizing attributable to the SW 38th Street project and $60,844.50 representing 50% of the associated Shared Structure costs. In total, the County's fixed cash reimbursement to OTOW for construction of the Northeast DRA and associated stormwater conveyance system is $899,910.90. The County will reimburse OTOW for these construction costs within 60 days of receipt of certification from OTOW's engineer of record that the Drainage Improvements were constructed in accordance with the approved design plans.
To facilitate OTOW's construction of those portions of the drainage improvements that connect to structures within the SW 38th Street right-of-way, the County grants OTOW a temporary construction easement within the right-of-way for ingress, egress, construction, staging, and related activities. As written in the Second Amendment, this easement terminates automatically upon completion of the County's SW 38th Street 4-Laning Project. OTOW will also provide the County with a temporary construction easement on OTOW property contiguous to the right-of-way as needed for the County's construction of the 4-Laning Project.
Finally, the Second Amendment provides that the County will reimburse OTOW and CBD for professional fees and related costs, including fees charged by appraisers, engineers, planners, lawyers, surveyors, and similar consultants, incurred in assisting the County with the design, planning, and implementation of the SW 38th Street 4-Laning Project.
BUDGET/IMPACT:
Neutral; expenditure of $1,182,331.05, plus additional amounts for property not to exceed the highest independent appraisal obtained by either party, plus a 20% allowance of the appraised values for acquisition costs.
RECOMMENDED ACTION:
Recommended action
Motion to approve the attached Second Amendment and authorize the Chairman and Clerk to execute the same.
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