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Apartment Developer Files Lawsuit Against Century Over Water, Sewer Fees
October 16, 2018
The developers of a new 50-unit apartment complex have filed suit against Century over the amount they were charged to connect water and sewer service.
The Paces Foundation and Century Park Apartments filed the lawsuit in Escambia County Circuit Court against the Town of Century.
In February, Paces submitted a $165,180 check to the town for waster 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.
In the lawsuit, Paces contends they only owed the town $63,750 for full payment. Calling the over-payment “unlawful”, Paces is seeking a $101,430 refund, legal costs and “such relief that is just and proper”.
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 contends they relied upon the lower payment quote in determining their financial options with the apartment development. They contend 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 do 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 town council meeting also attended by McCall.
“Paces responded to the Town of Century’s request that they come in and invest in the Community with an affordable housing plan. Paces relied on the word of Mayor Freddie McCall and the Town Planner, Debbie Nickles, when they negotiated the impact fee for water and sewer for the $10 Million dollar apartment complex. It was wrong for the new Mayor not to honor the deal made with Mayor McCall and Paces believes that the Court will agree,” Dunaway, the attorney for Paces, said Tuesday morning.
Monday night, Century Mayor Henry Hawkins said subpoenas were incorrectly served on Town Clerk Kim Godwin but still listed a former town clerk’s name. Hawkins said that he should have been served as the “highest ranking person” in town government, and “if they are going to serve anybody else, they have to serve them between 11 a.m. and noon.”
“So we are getting them on technicalities,” the mayor said.
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
20 Responses to “Apartment Developer Files Lawsuit Against Century Over Water, Sewer Fees”
We built duplexes in Escambia County and had to pay for the sewer lines to be installed on a county road that the county had not yet installed. This cost was over $70,000.00. We were then charged a $40,000.00 tap on fee! We Were required to pay to run the sewer lines that should have been paid by the county! And This was for FOUR units! Escambia County is the worst county in Florida Full of crooked officials!!!
The bottom line is that the deal was made without the knowledge or approval of the council. Therefore it is not a valid agreement. so all of you citizens who think we should have honored that illegal agreement, YOU will be the ones to pick up the tab if the apartment developer wins this suit. It cost a considerable amount of money to provide water and sewer services to 50 apartments and the water bill itself is not going to cover that expense. If the developer doesn’t pay, all the other customers will. How is that fair?
REGARDING:
“The best ideal for the town of Century, merge with Pensacola.”
Pensacola has had plenty of lawsuits the last few years with examples of bad faith government, secrets kept from the people and the council. No need to go there.
David for better government, not worse
With this type of Government ruling the Town, why would anybody want to bring their business here?
you got to have extra money for those personal loans,
The best ideal for the town of Century, merge with Pensacola! Unfortunately the ideal met too much opposition when it was suggested a few years ago. Sad.
” Hawkins said that he should have been served as the “highest ranking person” in town government,” What an arrogant individual to make that statement in that manner.
Getting them on more than technicalities.Do the right thing now or cost the town a heck of a lot more down the road.
this stuff sure gets old.
It wouldn’t surprise me if the town hasn’t already spent the $101k and doesn’t even have it to make the refund.
And people wonder why no businesses want to come to Century!! Well…just take a look! Being crooked gets you nowhere..Mayor!
If all it takes is word of mouth and numbers scratched on a sheet of paper to make a deal involving thousands of dollars in expenses, then that would explain why Century is in the debt it’s in now.
WOW….he just keeps on making things worse by the day. I have zero respect for the current Mayor of Century, he needs to be replaced!
I suppose timing is important. Did the apartment people start building right after the verbal agreement between them and McCall or did they start building after the rates have changed?
I understand where Mayor Hawkins is coming from. With a new development the rates should not have been the same rates the the town charges it’s residents within town limits. This should have been rated as a new commercial development with room for negotiations. It’s not everyday a development company wants to build in Century. Some considerations should be made.
But……because the previous admin quoted those rates it should be honored. And then going forward we can charge our new rates. For future reference I suggest that there’s a clear cut rate for existing residential, existing commercial , new residential, and new commercial (within town limits and outside town limits).
It’s also laughable that the Mayor thinks he can duck the process server, and “get them on technicalities”. All these antics, and it’s gonna cost the tax payers of Century a bunch of money in the end. Henry, you better talk to your lawyer, cause your do it yourself legal advice doesn’t look too sound.
A deals a deal. McCall was mayor then and had the ability to bind the City.
“So we are getting them on technicalities,” the mayor said.
And just how long does the mayor think this will not be corrected? He is not dealing with people that are stupid. He may have won this battle (admittedly for only a short period of time) but he will NOT win the war (the one that the mayor created).
Also, isn’t 11AM until noon when “highest ranking person”s in town government take their lunch?
“if they are going to serve anybody else, they have to serve them between 11 a.m. and noon.”
Mr. Mayor
What attorney gave you the above information? If that was the case then all they have to do is be out to lunch and would never get served. Do you ever think before you say anything?
You could have done the right thing, Mayor. You could have been honorable and accepted the agreed upon rate, but you wanted to make an example out of this, so here’s the result. I wonder how much more money it will cost the people of Century now that they will have to cover the court cost for your arrogance? The citizens of Century deserve better than this.
And now the Mayor is an Attorney?? Good luck on that one.