AGENDA MEMORANDUM

Meeting Date: June 28, 2010

From: Fred A. Morrison, City Attorney

Subject: Resolution authorizing execution of the Composto Easement Subordination

Staff Recommendation:

Staff recommends approval of execution of a Subordination of City Utility Interests in favor of FDOT for property owned by Composto Realty, LLC

Analysis:

Composto Realty, LLC owns property on the East side of South Highway 27 just North of CR 48 and desires to construct a commercial development at that location. The property is subject to a drainage easement in favor of FDOT which, as currently configured, inhibits the development of the land. Composto has proposed, and FDOT has accepted, a realignment of the drainage easement. The City has utility easements across the existing drainage easement that are subordinate to the rights of FDOT because the City easements came into being after the FDOT drainage easement. FDOT is requiring, as a condition of approving the realignment of its easement, that the City subordinate its easements to the FDOT easement in its new location. If approved, this subordination will do nothing more than maintain the current situation in which the City easements cross the FDOT easement and are inferior to it.

Options:

1. Approve the subordination as presented, or

2. Such other action as the City Commission may direct. It should be noted that Composto initially requested the City to accept maintenance of the FDOT easement in order to facilitate the approval of its planned development by FDOT and the City refused due to ongoing cost considerations so the request for a subordination, which will entail no expense on the part of the City, is a much more acceptable method of facilitating the development of Composto’s land.

Fiscal Impact:

Approval of the proposed subordination will not have any fiscal impact on the City whatsoever.

Submission Date and Time: 6/25/10 4:27 PM____

Department: City Attorney

Prepared by: Fred A. Morrison

Attachments: Yes____ No ______

Advertised: ____Not Required ______

Dates: __________________________

Newspapers:

_________________________________

Revised 6/10/04

Reviewed by: Dept. Head ________

Finance Dept. __________________

Deputy C.M. ___________________

Submitted by:

City Manager ___________________

Account No. _________________

Project No. ___________________

WF No. ______________________

Budget ______________________

Available _____________________

RESOLUTION NO.

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE A SUBORDINATION OF CITY UTILITY INTERESTS BETWEEN THE CITY OF LEESBURG AND STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION FOR THE PURPOSE OF FACILITATING THE RELOCATION OF AN EXISTING FDOT DRAINAGE EASEMENT IN ORDER TO PERMIT THE DEVELOPMENT OF THE PROPERTY OVER WHICH THE EASEMENT PASSES, AND PROVIDING AN EFFECTIVE DATE.

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

THAT the Mayor and City Clerk are hereby authorized and directed to execute a Subordination of City Utility Interests between the City of Leesburg and State of Florida Department of Transportation, for the purpose of facilitating the relocation of an existing FDOT drainage easement in order to permit the development of the property over which the easement passes.

THIS RESOLUTION shall take effect upon its passage and adoption according to law.

PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the 28^th__ day of June, 2010.

THE CITY OF LEESBURG, FLORIDA

BY:

MAYOR

Attest:

CITY CLERK