SUBJECT:
Title
Request Approval of the Mediated Settlement Agreement for the NW/SW 80th Ave and Hwy 40 Intersection from 1300’ South of West Hwy 40 to 1600’ North of West Hwy 40 Road and Drainage Improvement Project Fee Simple Right-of-Way Taking and Temporary Construction Easement Parcels (Budget Impact - Neutral; expenditure of $1,884,951)
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INITIATOR: |
DEPARTMENT: |
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Matthew G. Minter, County Attorney |
County Attorney |
DESCRIPTION/BACKGROUND:
Improvements to SW 80th Avenue and SR 40 are in the County’s current Transportation Improvement Program (TIP). It is necessary for the County to acquire parcels of real property to construct the project, including parcels for road right of way, intersection improvements, drainage easements and drainage retention areas and temporary construction easements. The acquisitions that are the subject of this agenda item are being acquired from Michael Vecchio. Mr. Vecchio’s property consists of 26.91 acres of mostly unimproved land and is situated at the 400 block of SW 80th Avenue just to the South of the intersection of SR 40 and NW/SW 80th Avenue. The property is located less than a mile from the World Equestrian Center. While the property currently has a Low Residential land use and A-1 zoning, it is located within the Urban Service Area and the owner desired to develop the site for either an apartment complex or employment center.
From the parent tract, the County is acquiring almost eight (8) acres for stormwater retention facilities necessitated by the new roadway improvements, and a small temporary construction easement.
The County’s appraiser valued the parent tract at $75,000/ acre for a total value of $2,018,250, in October 2024. The owner’s appraiser valued the parent tract at $130,000 / acre for a total value of approximate $3.5 million. The difference was due to the different “highest and best use” conclusions of the two appraisers. The County’s appraiser’s conclusion was that of “mini-equestrian farms” similar to that of other uses proximate to the WEC, and the owner’s conclusion was for high-density residential. Thus, there was a difference in the value of the acquisition of $55,000 an acre. A second source of compensation related to the issue of “severance damages.” The County’s appraiser found no severance damages, whereas the owner’s appraiser concluded that the reduction in size of the parent tract would make the site no longer economically feasible for high density residential and thus computed severance damages based on a value of the remainder at the County’s value of $75,000 / acre over the remaining approximate 19 acres, with a resulting severance damages claim of over $1,000,000.
The County’s appraiser thus concluded full compensation at $618,422.00 in his October 2024 appraisal, whereas the owner’s appraiser concluded full compensation at over $2.2 million in his May 2025 appraisal.
The parties agreed to submit the issue of valuation to a voluntary mediation through Circuit Court Mediator Larry Gendzier. Mr. Gendzier had previously been a long-time FDOT District 5 eminent domain attorney. Mr. Vecchio was represented by attorney Joseph Hanratty.
County Attorney, Matthew Minter and County Engineer, Steven Cohoon have reached a Mediated Settlement Agreement with Michael Vecchio and his attorney, pending Board approval. A copy of the Mediated Settlement Agreement is attached hereto.
As outlined in the Agreement, Marion County shall pay said Defendant the total sum of the One Million Eight Hundred Eighty-Four Thousand, Seven Hundred and Eighty-One and 00/100 Dollars ($1,884,781.00) including $1,550,000 as full compensation for the property taken, and attorney and expert fees for the owner’s appraiser, engineer, and land planner. The County will deposit this payment into the Clerk of Court’s registry plus a $170.00 Registry Deposit Fee, for a total expense of $1,844,951.00.
It is estimated that trying this case could result in additional litigation costs of between $125,000 and $200,000. Therefore, this mediated settlement agreement is in the County’s best interests.
In addition, the County Attorney’s office is requesting Board authorization to submit to the Court a Stipulated Order of Taking and Final Judgment consistent with the attached mediated settlement agreement.
BUDGET/IMPACT:
Transportation Capital Projects Fund- $1,884,951.00 as outlined below:
$1,179,751.92 from STC073868-CIP TRANSP-NEWINF ROW-738 - VJ738541 - 561301
$705,199.08 from TIP77700B-TIP ROADS-TFCTRL ROW-772 - VJ738541 - 561301
RECOMMENDED ACTION:
Recommended action
Motion to approve the Mediated Settlement Agreement for the NW/SW 80th Ave & Hwy 40 Intersection from 1300’ South of West Hwy 40 to 1600’ North of West Hwy 40 Road and Drainage Improvement Project Fee Simple Right-of-Way Taking and Temporary Construction Easement Parcels and authorize the County Attorney to submit a joint Stipulated Order of Taking and Final Judgment consistent with the Settlement Agreement.
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