Overview of FVP Miami Lakes Case

Sep 6, 2024

Case Presentation Summary

Introduction

  • Presenters:
    • William Cornwell (Counsel for FVP Miami Lakes LLC)
    • Cynthia Angelos (Co-counsel)
    • Howard Weiss (Partner)
  • Appeal Context:
    • Declaratory judgment action regarding $4 million in traffic, water, and sewer impact fees paid in 2005 for a proposed development in Indian River County.
    • Seeks declaration that Indian River County Code Section 20.08 is invalid for imposing monthly water and sewer charges on unconnected properties.

Background of the Case

  • Client Acquisition:

    • FVP acquired the property from Lenar, who paid impact fees upfront.
    • FVP took an assignment of rights to recover potential impact fees.
  • Development Plans:

    • Original plan included construction of 462 single-family homes.
    • Plans did not receive final approval and there is no legal possibility of construction.
    • No impact on county's water or sewer systems since impact fees were paid.

Key Issues Raised

  • Service Availability Charges:

    • Since March 2005, the county levied $10,000/month service availability charges on properties not connected to county water/sewer.
    • Charges accumulated to over $1.4 million as a lien on the properties.
  • Legal Arguments:

    • No evidence of benefit conferred by the county; no service provided.
    • Previous case law indicates validity of service charges only when connected to the service.
  • Separation of Fees:

    • Discussion of separating initial impact fees from ongoing assessments.
    • Monthly service charges as distinct from the initial impact fees.

Legal Precedents Cited

  • Key Cases:
    • Cardillo vs. Florida Keys Aqueduct Authority:
      • Case illustrates no Nexus between fees and benefits; court ordered refunds based on lack of lawful fees.
    • Florida Supreme Court:
      • Establishes need for dual rational nexus to justify impact fees.

County's Argument

  • Eric Olson (Director of Utilities):
    • County expanded wastewater and sewer systems based on the fees paid by Lenar.
  • Reservation of Capacity:
    • County argues that capacity is reserved for the properties, which provides a benefit even if not connected.
  • Statute of Limitations:
    • Argument that limitations on fee challenges begin when fees were paid.
    • Importance of certainty for utility management.

Conclusion

  • FVP Miami Lakes Position:
    • Fees paid were involuntary; no service was provided to justify ongoing charges.
    • Request court to recognize lack of legal basis for continued fees and order refunds.
  • Indian River County Position:
    • Fees are valid based on capacity reservations and necessary maintenance for infrastructure.
    • Maintain that fees are equitable and provide overall benefit to the community.