Settlement of 2011 suit to cost Santa Rosa County $500,000-plus
- March 9, 2015
- / Louis Cooper
- / government
Santa Rosa County has reached a deal that will cost taxpayers more than $500,000 to settle a 2011 lawsuit.
At this morning’s meeting, commissioners heard the details of a proposed settlement for the suit brought by Terhaar & Conley Property Co., a Pensacola firm that owns properties in the Santa Rosa County Industrial Park in East Milton.
While commissioners had no discussion or comments about the settlement at this morning's meeting, they agreed to put it on the agenda for Thursday’s meeting for final approval.
In August 2011, Terhaar & Conley sued the county and its now-defunct economic development agency, TEAM Santa Rosa, claiming that the county breached an agreement to build a parking lot at the industrial park that was required as part of a lease agreement between Terhaar & Conley and Clearwire.
That company – a wireless Internet service provider — had leased two buildings in the industrial park from Terhaar & Cronley to use as call centers. However, when the parking lot was not built, Clearwire backed out its leases with Terhaar & Conley, costing the company lost rent.
About the same time as the lease dispute, however, Clearwire had begun a series of layoffs, whittling its Milton staff from about 500 to about 125. The company had previously announced plans to use the second Terhaar & Cronley building to house a second 500 employees, but eventually left East Milton for a smaller facility in Pensacola.
According to the settlement agreement. which was reached through mediation:
— Santa Rosa County will construct a 768-space parking lot with lighting, wheel stops and stormwater retention and give that parking lot to Terhaar & Cronley. The parking lot must be completed within nine months following the adoption of the agreement. County Administrator Hunter Walker said the parking lot was bid at $920,000 in 2010 when the original agreement was struck, but the new cost will be determined by new bids the county receives.
— Santa Rosa County or the Santa Rosa Sheriff’s Office will lease another Terhaar & Cronley building, located at 7999 Armstrong Road in the industrial park, for seven years, paying a total of $400,000 in rent. That’s about $57,143 annually. The Santa Rosa County Sheriff's Office is using that building for storage, paying $13,789 annually in rent.
— Santa Rosa County will pay Terhaar & Cronley $100,000 through general liability insurance from the Florida Association of Counties within 30 days following the adoption of the agreement.
One of the two former Clearwire buildings has since been leased to Navy Federal Credit Union. The other is vacant.
County Attorney Roy Andrews said the county should take the deal rather than go to trial.
“An agreed resolution provides certainty as opposed to unpredictable litigation,” Andrews said.
Jim Cronley, vice president of Terhaar & Cronley, said he had been advised not to comment on the settlement.
About the same time as the lease dispute, however, Clearwire had begun a series of layoffs, whittling its Milton staff from about 500 to about 125. The company had previously announced plans to use the second Terhaar & Cronley building to house a second 500 employees, but eventually left East Milton for a smaller facility in Pensacola.
According to the settlement agreement. which was reached through mediation:
— Santa Rosa County will construct a 768-space parking lot with lighting, wheel stops and stormwater retention and give that parking lot to Terhaar & Cronley. The parking lot must be completed within nine months following the adoption of the agreement. County Administrator Hunter Walker said the parking lot was bid at $920,000 in 2010 when the original agreement was struck, but the new cost will be determined by new bids the county receives.
— Santa Rosa County or the Santa Rosa Sheriff’s Office will lease another Terhaar & Cronley building, located at 7999 Armstrong Road in the industrial park, for seven years, paying a total of $400,000 in rent. That’s about $57,143 annually. The Santa Rosa County Sheriff's Office is using that building for storage, paying $13,789 annually in rent.
— Santa Rosa County will pay Terhaar & Cronley $100,000 through general liability insurance from the Florida Association of Counties within 30 days following the adoption of the agreement.
One of the two former Clearwire buildings has since been leased to Navy Federal Credit Union. The other is vacant.
County Attorney Roy Andrews said the county should take the deal rather than go to trial.
“An agreed resolution provides certainty as opposed to unpredictable litigation,” Andrews said.
Jim Cronley, vice president of Terhaar & Cronley, said he had been advised not to comment on the settlement.
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