Andrew Diaz is a partner at Gaylord Merlin Ludovici & Diaz, one of Florida’s leading voices on eminent domain law. With decades of experience representing landowners in takings across the state, Andrew brings clarity to what can often be a complex and frustrating process.
Hosted by Tyler Davis, President of Saunders Real Estate, this episode of In Our Expert Opinion Real Estate Podcast explores the foundational rights of property owners, recent trends in eminent domain, and some real-world case studies from Andrew’s work, breaking down exactly how full compensation is determined and won for his clients.
Below is an excerpt from the interview. Listen above for the full podcast.
Andrew Diaz, partner at Gaylord Merlin Ludovici & Diaz
What is full compensation? Florida is different than any other state in the country; our standard of compensation for the property owner is full compensation. It's not fair market value, it's not just compensation, it's full compensation.
Full compensation is set forth in the Florida Constitution, and it requires that the condemning authority has to pay the property owner full compensation. That includes paying for the land taken and paying for the damages or impacts in value to the remaining property. They also have to pay for what's called the “cost to cure”–sometimes mitigation has to be done on-site, and they have to pay for that. And importantly, they have to pay for the attorney's fees and costs that are incurred by the property owner.
The reason Florida is different is that [full compensation] requires the payment of attorneys' fees and costs. The drafters of the Florida constitution realized that a property owner has done nothing wrong, yet finds themselves in the crosshairs of a government taking. Through no choice or through no fault of their own, they've done nothing wrong; they're not accused of a crime or a breach of contract; they need legal representation. If it's truly a public purpose that the taking is for, then the public should have to pay the attorney's fees and costs, and it shouldn't fall on the shoulders of that property owner.
The coffee roasting plant case. This was literally one of the most challenging cases that I had. It was basically a nondescript 33,000-square-foot warehouse that was probably built 60-70 years ago, just outside of Ybor City.
At the time of the taking, [the client] was probably the largest independent coffee roasting facility in the southeast United States. The equipment that he had in there was specially designed and laid out over a 60-year time frame. It was not new, but from a function standpoint, it worked as good as anything. It was all customization. You could not replace what he had.
The Department of Transportation (DOT) took a look at the factory as a warehouse, and all that equipment could be easily relocated. Well, not so fast. The way we looked at this was as a special purpose property. You can't find it in the market; you have got to create it. The question was, to make this man whole, what amount of money would allow him to go out and replace what he had?
Andrew Diaz, attorney with Gaylord Merlin Ludovici & Diaz, joins Tyler Davis on the In Our Expert Opinion Podcast to explore eminent domain, tips for landowners when confronted with a taking, and several real-world case studies he has worked on.
So, we did a cost approach. What would it take to replace this real estate and replace the equipment? Fortunately, we had a huge discrepancy in the value. Thank goodness for our client that the DOT had two warehouses that they acquired several years ago. We were able to get title to those two warehouses, which were each about 25-30 thousand square feet, and we were also able to get him a substantial amount of money over and above that which he would need to set forth the equipment.
I'm proud to say the company is Brisk Coffee. It's still there in Ybor City, and they're doing great. That was a situation where we were looking at this property so much differently than DOT. I think at the end of the day, they got a cash equivalent of probably over $7 million, and the offer was less than a million.
The residential mixed-use development case. Residential mixed-use development was the highest and best use of this property. It's a 200+ acre site, strategically located at State Road 52 and Prospect Road in Pasco County. There's so much growth going on here.
Our client was going through the development process, but the local government wanted a dedication of this roadway. If you want your permit, you dedicate. The local government needed the property sooner rather than later, so they filed the eminent domain suit prior to forcing a dedication. The position that the county took in this case was that the property was zoned AG.
Part of their theory was, “If not for the project, you wouldn't have gotten the rezoning, so it's going to be AG. Even if you get the rezoning, we've benefited your property because we've put a spine road through there.” From an aerial, it doesn't look like a problem, but when you stand next to it, it's an elevated roadway.
So, unless you really go in deep and see what the plans are, you're not able to really determine what the damages are. This was a case that was hotly contested and litigated. At the end of the day, our client was taken care of, but there's a lot that goes into it. Most people, when they get the offer package from the government, they don't have the benefit of seeing the 3D concept.
Gaylord Merlin Ludovici & Diaz is a statewide leader in eminent domain law. Representing property and business owners, their team of eminent domain lawyers in Florida allows them to handle the most complex eminent domain cases with skill and efficiency.
For more info on eminent domain issues, please contact Andrew Diaz at 813.221.9000 or visit their website at GaylordMerlin.com.