Ocala city officials vote to keep $7M remaining from lawsuit over fire fees
Elected Ocala leaders voted unanimously Tuesday to keep more than $7 million still waiting to be dispersed to residents following a 2014 lawsuit that eventually determined the city was charging an illegal fire fee.
The money will be added to the city’s general fund and earmarked for fire services.
The decision was made at the City Council's meeting at City Hall after officials were told the attorney for the plaintiff in the case said it would be best to turn the money over to Florida's Unclaimed Property.
City councilors were told that everything had been done to try and find those who haven't yet cashed their checks. Officials felt that if the money goes to the state, there's a possibility it will remain there for an extended amount of time.
Council President Barry Mansfield, Pro Tem Kristen Dreyer and council members Ire Bethea and Jim Hilty voted in favor of keeping the funds. Council Member Jay Musleh was absent from the meeting.
At the meeting, it was announced that 120,360 checks equaling more than $65 million have been cashed. To date, 16,000 checks, or about $7.23 million, have so far not been cashed. The latter amount is what Eustis attorney Derek Schroth, the plaintiff's lawyer, wants sent to the state's unclaimed property department, city officials were told. A sizable number of the checks that make up the $7.23 million are for less than $10, city officials said.
How did the city get here?
In a lawsuit brought against the city of Ocala, the court ruled that the city charged an illegal fire fee and required it to refund residents and businesses more than $79 million.
A little more than $6.5 million of that amount is earmarked for the plaintiff's legal fees, costs and related expenses. The rest goes to class members.
To pay the money, city officials used $20 million from its general fund reserves and got a $60 million bank loan.
The Notice Company Inc. of Massachusetts, was hired by city officials at $200,000 to distribute the money. Earlier this year, city officials decided to relieve The Notice Company, and finish finding and sending out checks to customers.
In other city news
City officials approved a $12 million purchase and sale contract for 115 acres of non-aviation property at the Ocala International Airport to InSite Real Estate Investments Properties LLC.
Mansfield, Dreyer, Hilty and Bethea gave the project their blessing.
Officials were told InSite will develop the property, and proceeds from the sale will go toward the airport's budget. The property is located by Southwest 67th Avenue and 31st Street.
The city's Airport Advisory Board members have voiced their disagreement about the measure as they prefer to lease the property instead of putting it up for sale, city officials were told.
Fire station: Ocala is getting an eighth fire station. Here's what we know
Kevin Sheilley, head of the Ocala Metro Chamber & Economic Partnership (CEP), was at the meeting. At the conclusion of the agenda item, Sheilley told a Star-Banner reporter that while there are no firm commitments, he anticipates InSite officials are working with manufacturing and distribution companies.
Contact Austin L. Miller at austin.miller@starbanner.com
This article originally appeared on Ocala Star-Banner: Ocala officials vote to keep $7M remaining from lawsuit over fire fees
