State Appeals Court Affirms Dismissal Of Apartment Developer’s Utility Lawsuit Against Town Of Century

March 11, 2021

The Florida First District Court of Appeals on Wednesday affirmed the Escambia County Circuit Court dismissal of The Paces Foundation and Century Park Apartments lawsuit against the Town of Century.

In February 2020, the lower court adopted both arguments that the town raised in defense that sovereign immunity and fraud statutes each precluded the developer’s claims.

The Paces Foundation and Century Park Apartments contended they owed $63,750 for water and wastewater connection fees, but instead they were forced to pay over $100,000 more.

Paces contended that they elected to make their $10 million investment in Century in late 2015, at which time a 2015 water rate ordinance was in effect. Those rates were in effect until increased in a series of acts by the town council, increasing costs over $100,000 for the developer, according to the motion.

Paces argued it was not “just and equitable” to increase the rates after the property was developed.

The Dispute

In February 2018, Paces submitted a $165,180 check to the town for water and wastewater tap fees along with a protest letter from attorney William J. Dunaway of the Clark Partington law firm in Pensacola. The letter informed the town that the payment was made in full, but the amount remained in dispute.

Paces asked for a declaration that they owed the town $63,750 for full payment and an additional $101,430 deposit charged was invalid.

The lower fee of $63,750, according to Paces, was decided upon during a 2015 meeting with then-mayor Freddie McCall and Town Planner Debbie Nickles. The only written agreement to come out of that meeting was a handwritten page showing calculations that Paces said were based upon the 2015 rates as published online in the town’s municipal code. The handwritten document also included a proposed fee for natural gas; however, the developer later opted to go all-electric.

In 2017, the town council passed two resolutions increasing the water and sewer tap fees and charged Paces based upon 50 connections. The apartment complex, according to the lawsuit, has only one master meter that serves all 50 units.

Paces contended they relied upon the lower payment quote in determining their financial options with the apartment development. They contended they were forced to submit the higher fee in order to obtain utility services and obtain a certificate of occupancy for the apartments.

McCall and Nickles did not deny the meeting, nor did they deny the agreement or the approximate $63,000 tap fee. “The town made a commitment to them. To me, they should do the right thing and honor that commitment,” Nickles said during a March 2018 town council meeting also attended by McCall.

Pictured top: Century Park Apartments. Pictured top inset: A check submitted under protest to the town by the Paces Foundation. Pictured bottom inset: The handwritten document Paces contends demonstrated a lower water and sewer tap fee as authorized by town code. Pictured below: Century’s justification for the $165,180 tap fee charged to the developer. NorthEscambia.com photo and images, click to enlarge.

Comments

4 Responses to “State Appeals Court Affirms Dismissal Of Apartment Developer’s Utility Lawsuit Against Town Of Century”

  1. judy on March 11th, 2021 8:04 am

    Well, so much for honor among thieves. Century should be made to install all 50 meters they were paid for and then future builders MUST be made aware of how crooked the TOC is! BUT all should remember that a verbal contract is worth the paper it is written on…which is nothing!

  2. DLo on March 11th, 2021 7:51 am

    Just because you got away with it doesn’t make it right, shame on Century for this. If I were a contractor with the prospect of doing business with Century, you’d see nothing but my back and dust.

  3. Niknak50 on March 11th, 2021 7:50 am

    There is little justice if any to be had in any court in America these days.
    Everyone knows what the town of Century did to this developer was wrong.
    Extortion, plain and simple.

  4. Stumpknocker on March 11th, 2021 4:45 am

    I would have made Century install 50 separate meters as well a 50 different sewer connections, and they wonder why no legit investor wants to do business with them. Lol

Written by William Reynolds · Filed Under News