HomeMy WebLinkAboutR-86-0905J--88-444
10/198/88
Ml MMS , the City of Miami. through Metropolitan Dade County
initiated condemnation of several parcels of land located in the
0vertovn area of the City of Miami; and
WHEREAS, after a taking of said property in September, 1984,
a trial was held between. April 21 -- May 12, 1986 which
established the total value of the property at $7,552,500; and
WHEREAS, interest has accrued upon said amount for 24 months
totalling $1,266,524 with court costa having been awarded in the
i
� amount of $288,368, and an additional $1,321,126 having been
awarded as attorney's fees to counsel for the property owners for
a total award of $10,428,518; and
WHEREAS, $2.275,400 has already been deposited in the Court
Regist:y; and
WHEREAS, since and during the County's appeal from the jury
verdict, negotiations have been held between the attorney
representing the landowners, the City Attorney, and the County
Attorney; and
WHEREAS, settlement at this time will result in the City's
not having to pay increased interest costs, attorney's fees and
expenses associated with the appeal which must be paid by the
City;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. Settlement is hereby authorized to be made in
the trial court and appellate court prooeedinos resulting from
CITY COMMISSION
METING OF
NOV 13 1916
IUN 140. k ��'"
E
"W ^ti oil Frkd the soquixinco of $-I perm -le of 14M
1000ted in tbp 0vrrtnvP �rpsk of the City of K.I*at and
the Overtov;i Tj;-)irtn Tn-�I,.tFktiromo rrojoot, v",ra", the r.1tT MrAM14"W
is autbor17pd to pay tho follaw ing &Wr,-nntm In amitteaA to
$2,275,400 vblob vxfz dppopltwl In tho Cemrt "1.wtrT- Alls 0"d
oondemnation prooeedinfp: $1 t.". ramea-r-tv- halamoo of
unexpended ftmd,s from, the orifir^l rlrlwa Tn.11tt4T-tr* C.M-st for the
Overtovn Project: $1.0D0.000, the r*m&1r.1,r4 of proceeds
from 1970 Ciarnpral Obligation,!Ing Bor4s alloonted for land
acquisition In Scmtha&fft Orart ov fPaLrk West; $1,000,000, aw
remaining "cunt of &oquivition ",sistanoe provided for Block 44
from Miami Sports and Exhibition Authority; $2.2-00. =I. Um
balance of unencumbered Section 100 Loan fund refit frm
U.S. Housing and Urban Development Regional Office arrrov&l
obtained for Plan amendment ; and $160,000. frcm Com=nity
Development Block Grant funds (7th Year) alloo-ated for Southeast
Overtown/Park West land acquisition.
Section 2. The terms of the herein authorized settlement
are fully set forth in the attached letter from counsel for the
owners of the acquired properties and said settlement is
oonditioned upon the same being approved by Metropolitan Dade
County which approval will result in the County's payment of
$760,011 in accordance with the settlement terms.
PASSED AND ADOPTED this 13th day of November 1986.
ATT
MAT HIRAI
CITY CLERK
PREPARED AND APPROVED BY:
ROBERT F. CLARK
CHIEF DEPUTY CITY ATTORNEY
RFC:bss:H247
Attachment
XAVIER L. 9AREZ, MAYOR
APPROV 8 TO FORK AND
CO E SS: 5k—
LUCIA A. bO-UGHERtY
CITY ATTORNEY
I `ma
n.OA"q r—t0CW PRAQMA.M. S A.
ALAN C. D*111r, PIO
Mk@C I. PAC"R, f A,.
R•I!'OR`�W M, 1KCWLIRTIr", P. A.
I,.s1ar S. LIL"IrW
J. CMI�tRTT WII..P000, ID.
Gte"R.I.EP Is. rmgrcmv
"1CUTtvB Pl"-CTOR
Mt1'11!I C. rBR�ao
ADM+tA!t1t TIkRMR` /f.OArP'f R101,.t C1A
Poo 0. G. PT- SIT.
Frta . LAavxP*xA, Ti. scoot
(305) 5?? • 5t%08
111 N. 0"A.NG% AVE.
OxLwvoT FL ape®t
(3oS) wZ? •gZSI
100 WALLACC AVE..
S&UAPO ..TL POS78
(O13) 31qg - 3moo
1"3 C- LAr'#'rF t WT.
(904) 656 • ICI=
OM[ MACK Ce"Te"
TAwj%. n as***
(0131 a" • 0011
BxrowAx. Hoaxx, G&ywan, Scwviw -iRr & SiAo$e
A PAWr"9R9WIR INCLUDING Pt%0f-jr*lI0-AL. ffl!Ic>*t�TrOTt�
LAWY E PP
203 IOUTrWreT 1Z-" 4TF�rT
Maier. FxowrnA st","
(205) L"sC-FAoo
REPLY TO: Miami, Florida
• October 23, 1986
HAND DELIVERY
Lucia Allen Dougherty, Esq.
City Attorney - City of Hismi
169 E. Flagler St., Suite 1101
Miami, Florida 33131
Rea: Settlement - Dade v. Sawyer
Dear Lucia:
After extensive effort, I am now authorized to
accept, and do accept, the offer you made to settle
the appeal pending in the above referenced case. I
understood the provisions of your offer to be as
follows:
1. The star of $8, 897 , 500.00 shall be paid by the
City of Miami/Dade County on or before
December 15, 1986, in full settlement of the
above referenced case for the taking of the
following parcels of real property:
UM-01-03 Post/Yeminy
UM-01-04 Stone
UM-02-06 Von Zamft _
UM-02-08 Post/Yeminy
UM-02-15 Post/Yeminy
UM-02-16 Mitchell
UM-03-02 Post/Yeminy
UM-03-03 Post/Yeminy
UM-03-04 Post/Yeminy
UM-03-05 Post/Yeminy
^ UM-03-06 Post/Yeminy
UM-03-07 Post/Yeminy
UM-04-01 Schuessler
UM-04-02 Schuessler
UM-04-03 Rose
UM-04-06 Blumenthal
UM-04-07 Maida
UM-01-02 Gilco
UM-04-05 Sweeting
UM-01-06 Symonette
UM-02-01 Symonette
Lucia Allan Dougherty, City Attorney
October 24, 198
Page 2..............................
2. Said sum of $8,897,500.00 includes the following:
a) All claims of compensation for the taking of the real
property which the owners and defendants as to the
above stated parcels may have; and
b) interest as to said parcels; and
e) all costs and attorneys fees of the Defendants as to
the parcels listed above and for the Defendant,
Cartwright, as to Parcel UM-02-17 through trial pro-
ceedings, but not including costs and attorneys fees of
Cartwright as to said parcel on apportionment proceed-
ings, if any.
3. The pending Dppea.l in the case of Dade CountX v. William B.
Sawver Joint Venture et al, D.C.A. Case No. 86-1639 will e
sm sse .
4. Counsel of record for the Defendants will supply you with a
Stipulation providing for the allocation and payment of the
total sum stated above and for amendment and/or satisfaction
of the Final Judgment in the lower court.
5. The settlement, is subject to appropriate approval by the
City and County Commissions, if necessary..
If my understanding of your offer is correct, please confirm
and expedite the conclusion of this case at the earliest moment
as time is of the essence to the clients' acceptance of the
settlement proposal sb that payment will be received by them in
the year 1986.
Thank you for your efforts and consideration in this matter.
TPB/ j oy
Encl.
Sincerely,
6;.
TOBY INCE BRIGHAM
Bazoswx, MOOSE, ()ATWRD. SC=8TZR & SACZA
86-9p5
a
CITY OF MIAMI, I, rl 007 1—�
INTER-OF'FPCE WrMG31stANPk.tF
43
fA Honorable Mayor and Members
of the City Commission
Cesar N Odin
DATE-
NOV 51986 FILE:
suDJECT: November 13 Commission
Agenda. Settlement -
Urban Initiatives,
REFERENCES! Condemnation Case
- e
City Manager
ENCLOSURES:
RELATION
It is respectfully recommended that the City Commission approve the
attached reseletion authorizing the settlement of Circuit Court Case
No. 84-22936 for the amount of $8,897,500 and the dismissal of D.C.A.
Case No. 86-1639.
/__\ BACKGROUND
The City Attorney and the Department of Development, in conjunction
with the County Attora*y's Office, have analyzed this settlement
which represents a conservatively estimated savings of $1,530,998 to
the City of Miami (85%) and Dade County (15%) based on the jury
verdict in this case.
On May 13, 1986 a verdict was received in the Circuit Court in the
Case of Dade County VS. Sawyer (Case No. 84-22936). This case was
filed in 1984 and involved the taking of 32 parcels in the Overtown
area. The City of Miami is liable for 85% of all cost overruns in
this project. Both Resolution 83-109. which approved the Overtown
Urban Initiative Grant Application, and Resolution 82-940, which
authorized the approval of the Intergovernmental Cooperation
Agreement for the Overtown Urban Initiative Project, call for the
City to provide 85% of the local match and further require that the
City pay to the County 85% of any funds which the grantee is required
to pay from non-federal sources. Dade County retained full
responsibility for land acquisition. Dade County was the grant
recipient and required the City to assume this liability prior to
their acceptance of this Grant. The County was able to negotiate
settlements on only 10 of the parcels prior to candemnation; an
additional it parcels were settled during litigation. There were 21
parcels involved in the final Court settlement. The Cit of Miami
was liable for an estimated $5.7 million in additions cos "essea on
e jury veraict.
It
Honorable Mayor and
Members of the City Commission
Page 2
The Overtown Urban Initiative Grant was for $6,770,670 (matched by
$1.69 million from the City of Miami, Dade County and the State of
Florida. The Order of Taking for the property occurred in September
1984 and the court hearing for value was held between April 21-May
12, 1986.
The former property owners had 3 appraisals prepared by appraisers
from North and Central Florida. The average valuation ranged from
$28.76 per sq. ft. to 536.6E per sq. ft, compared to the $7 appraisal
utilized by Dade County far court purposes. The Jury verdict
averaged $27 per square foot for a total verdict of $7,552,500 (note
Table A). This amount is four times the County's appraisal.
Interest of 1% a month on the additional award granted back to the
date of taking (20 months) must be paid. This amount came to
$1,055,420 (as of April 1986). Legal fees and court costs were
estimated at 25% of the settlement amount for a cost of $1.9 million.
Under Florida law, the condemning body is liable for all legal fees
and court costs. The City would be liable for 85% of these
additional expenses for an approximate total of $2.5 million.
TABLE A
CONDEMNATION AWARD --REAL PROPERTY*
MONIES REQUIRED
Verdict $7,552,500
Less UMTA Deposit $29275,400
BALANCE DUE t5,277,100
Less UMTA Balance $1,500,000
REMAINING BALANCE DUE $39771,000
COUNTY PORTION
(15%) $ 565,650
POTENTIAL CITY LIABILITY $39205,350
(85t)
* Additional costs for interest and legal fees not included
f-
e
-
Honorable Mayor and Members
of the City Commission
Page 3
Due to the excessive amount of the Jury Verdict, actions were taken
by Dade County and the City of Miami to reverse this award. A motion
for a new trial was made and denied and an appeal was filed (D.C.A.
Case No. 86-1639).
Negotiations have been conducted with the defendants attorneys in
order to exppditF a final settlement of this case and reduce the
financial exposure of the City and County. Based on these
negotiations, a settlement of i8,897,500 was achieved which includes
the following provisions:
A. All claims of compensation for the taking of real property
B. Interest as to said parcels
C. All costs and attorneys fees
D. Dismissal of pending appeal
The full terms of the settlement are delineated within the attached
letter from Toby Brighman, Attorney for the defendants.
This settlement represents a conservatively estimated savings of
approximately $1,530,000 of which approximately $1,300,000 will be
saved by the City.
TABLE B
CONDEMNATION AWARD Vs.SETTLEMENT
Real Property (Verdict)
Interest (24 months at 52,771
per month)
Fees (court awarded 10/21/86 vs
request of $669,11.w)
Legal Fees (requested
$1,778,153)
TOTAL
Settlement
Difference
Savings - City (85%)
$7,552,500
$1,266,524
$ 288,368
$19321,126
$10,428,518
$ 8,8979500
$ 1,531,018
$ 19301,365
•
Honorable Mayor and Members
of the City Commission
Page 4
Based on this settlement, the City would have to provide additional
funding of $4,306,729. (Note Table C)
TABLE C
CONDEMNATION SETTLEMENT
CITY COST
Settlement $8,8970500
UMTA Deposit-$2,275,400
Remaining Balance-$1,555,360
(Unexpended UMTA
Funds (9/11/86)
Balance Due $59066,740
City Portion (85t) $4,306,729
County Portion (15%) $ 760,011
On May 22, 1986 the City Commission approved Resolution No. 86-390
and Ordinance No. 10106 identifying sources of and appropriating
funding for settlement purposes. Up to $5,712,500 was identified and
set aside pending settlement of this case. It should be noted that
all but $912,500 came from funding sources already allocated to the
S.E. Overtown/Park West Project.
P
Honorable Mayor and Members
Of the City Commission
P-or 5
In order to cover the jury award, it is recommended that the following
sources of funds be allocated for the payment of the $4,306,729 settlement:
APPROVED PROPOSED
5/22/86 11/13/86
1. Remaining balance of the 1976 G.O. Housing $1,200,000 $1,000,000
Bonds allocated for land acquisition in S.E.
Overtown/Park West. Reuse of parcels for
which funds will be assigned will be restricted
to rental housing under the provisions of the
City of Miami Affordable Rental Housing Program.
2. Miami Sports & Exhibition Authority
acquisition assistance provided for Block
44 ($874,000 already remitted).
? Balance of Section 108 Loan funds
not encumbered, application approval
obtained by HUD Regional Office for
plan amendment.
4. Approved CDBG funds (7th Year)
allocated for S.E. Overtown/Park
West land acquisition.
S. Unencumbered 1976 G.O. Housing Bond
Funds originally allocated for
Scattered Site Program (a balance of
approximately $3.5 million remains).
$19000,000
$29200,000
$ 200,000
$ 912,500
TOTAL $5,712,500
f
$19000,000
$2,200,000
$ 1609000
-0-
$4,360,000
It is recommended that this settlement be approved in order to secure an
estimated savings of approximately $1,300,000 to the City and eliminate
additional interest costs and legal fees which will be incurred in the appeal
process.
....tachments :
Proposed Resolution
Letter -Toby Brigham
. ss--90s