As little Weeki Wachee tries to acquire Florida Water Services by condemnation, Hernando County decides to adopt the same strategy.
By WILL VAN SANT
Published August 27, 2003
BROOKSVILLE - Two can play the condemnation game.
A month after the city of Weeki Wachee filed a condemnation action seeking to claim Florida Water Services' Spring Hill utility, Hernando County responded in kind.
At the urging of County Attorney Garth Coller, board members voted unanimously Tuesday to thwart Weeki Wachee's bid and pursue their own condemnation effort.
The move opens up a second avenue of acquisition for Hernando. In July, the county reached an agreement to buy the utility for $35.6-million. The deal has not yet closed and talks continue. Now there's the condemnation effort.
County officials say it makes no difference to them, purchase or condemnation, they'll take the utility by any means. But Tuesday's move was largely a strategic one.
"It's another way to deal with the Weeki Wachee action," Coller said.
In late July, the city initiated eminent domain proceedings claiming that it was greatly concerned that Florida Water or third parties trying to purchase its Spring Hill facilities might tap the waters of the Weeki Wachee Springs. The utility serves 27,862 water and 6,611 sewer customers in Spring Hill.
As part of its sales agreement with Hernando and three other Florida counties looking to purchase their utilities, Florida Water is obligated to defend against acquisition by outside parties like Weeki Wachee, Coller said.
That provision serves as a basis, he said, for the "friendly condemnation" Hernando seeks. According to Coller, Florida Water agreed not to contest the condemnation and to stick to the terms of the sales agreement it has with the county, meaning the price tag for the utility is unchanged.
That's important because, under a scenario Coller and other county lawyers envision, a judge considering competing condemnation claims may one day be asked to decide which bid, the county's or Weeki Wachee's, will benefit the public more.
With the purchase price, acquisition costs and money for improvements to the system, that means the county would have to bond $42-million. Customers would repay the debt over decades through their monthly bills.
Under the Weeki Wachee condemnation, the amount of debt customers would assume could be much higher, court records show. The city specifies a price tag for the utility, excluding closing fees and money for improvements, not to exceed $53-million.
In addition to the debt burden placed on utility customers, county lawyers say it's foreseeable that a judge would also base the decision on which jurisdiction had more experience running water and sewer networks.
Obviously, they argue, it would be the county, which boasts its own utility, not Weeki Wachee, a city of only nine residents who live in close proximity to the mermaid show tourist attraction.
"I think it would be a slam dunk for Hernando County," Coller said.
The attorney in the Miami firm of Steel, Hector & Davis working on Weeki Wachee's condemnation bid did not return a call.
Local attorney Joe Mason, however, said Coller might be a little optimistic.
Mason, having represented both the city and Florida Water, said he was not involved in Weeki Wachee's condemnation, but described himself as "an interested observer."
He even expressed some familiarity with details of the sales agreement between Florida Water and the county.
The city could, Mason said, merely undercut the county's condemnation offer, making the argument that it could buy the utility for less. When it comes to the experience question, Mason said the city could hire a large utility operations company to manage the system, one with much more experience than the county.
For a judge, the issue of whose offer was the best might not be so easy, Mason said.
"It's illustrative of the absurd nature of the county's approach," he said. "This just seems to be so much thrashing."
While no court dates have been set, county lawyers say they hope to have their condemnation bid before a circuit judge within a month.
