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l3 S0. MEMORANDUM TO: Board of County Commissioners THROUGH: Richard B. Szpyrka, P. E., Public Works Director FROM: William K. DeBraal, Deputy County Attorney DATE: May 3, 2022 SUBJECT: Settlement of Lease Interest for Parcel 127 Tenant Amanda Tongay d/b/a Empire Equine 7905 66th Avenue The following information is submitted for consideration by the Board of County Commissioners (Board) in approving the settlement for acquiring a lease hold and any other interests in property associated with the construction of 66th Avenue north between 69th and 85th Streets (hereinafter referred to as "Project"), in Indian River County. The limits of the overall Project are from the intersection of SR 60 to Barber Street in Sebastian. On July 6, 2021, the Board of County Commissioners approved the purchase of the fee simple interest in Parcel 127 from Frederick Lipfert located at 7905 66th Avenue. The property is a 12.24 - acre tract which lies on the west side of 66th Avenue. The property is zoned A-1, Agricultural, up to one unit per five acres. The County purchased a 1.07 -acre strip of right-of-way along the eastern boarder of the property. The oblong strip extends 455 feet along 66th Avenue beginning at a width of 126 feet at the south narrowing to 68 feet at the north end of the property. The property has a tenant, Empire Equine, owned by Amanda Tongay, who leases the property for her horse boarding business. The leased property is improved with a barn, riding ring, and pastures divided into five paddocks, however, no buildings lie in the part taken. There is a small residence on the property not included in the lease. Improvements to the property to be taken include fencing, shade trees, a driveway and a part of the eastern most pasture paddock. In the purchase agreement with Mr. Lipfert, the County agreed to replace the wood post and board fence along 66th Avenue. The County now needs to extinguish Ms. Tongay's lease hold interest on the property, but only on that portion that was purchased as right-of-way. According to eminent domain statutes, tenants are entitled to notice and the opportunity to present a claim for potential damages, including business damages, due to the acquisition of the portion of land subject to the lease. Ms. Tongay claims that she has operated her business, Empire Equine, for longer than 5 years. Eminent domain law requires a business owner to operate a business for a minimum of 5 years in order to make a business damage claim. She also claims that the loss of the acre of property will reduce the number of horses she can board at her facility, as almost an acre of pasture will be lost. Normally, the lease holder would hire an appraiser to determine the amount of loss of value sustained to the lease as a result of the take. Also, an accountant would be retained to evaluate the business damages due to the take. The County, under eminent domain law, is responsible for the lease holder's expert witness costs and fees, together with the County's own experts needed to evaluate and if necessary, rr-fto