Deltona closes on Howland Crossings

BEACON PHOTO/SARAHROSE MINISTERI
Special meeting called — Deltona City Hall at 2345 Providence Blvd. in Deltona will be the site of a special City Commission meeting at 2 p.m. Wednesday, Dec. 30. The topic will be the purchase of the Howland Crossings property for a new fire station and public-safety complex.

Contentious land deal closed after verbal battle; controversy continues

By Pat Hatfield and Al Everson
BEACON STAFF WRITERS

posted Dec 29, 2009 - 7:01:29pm

UPDATE WEDNESDAY, DEC. 30 BY BEACON STAFF WRITER AL EVERSON: The City of Deltona's most controversial purchase of land to date culminated Dec. 30 in an exchange of signed papers and money, after an exchange of fierce words among the city's leaders.

City Commissioner Herb Zischkau came under fire from colleagues for trying to block the purchase of what he called "this rotten deal."

"I feel as if he's out there representing the city all by himself," Mayor Dennis Mulder said, referring to Zischkau.

More stinging words came from Commissioner Paul Treusch. "I think you're an insult to the city," Treusch told Zischkau.

Deltona took title to 19 acres on the city's north side along Howland Boulevard, as the future site of a fire station and public-safety complex, although the seller/developer, the Cavallaro Group, has not completed all of the infrastructure improvements required by the sale contract.

The Cavallaro Group has until Feb. 10 to finish the work, including installing a mast-arm traffic signal and electrical connections to streetlights. The city retained a portion of the $7.6 million purchase price to cover the cost of the items promised.

The deal was more than a year in the making, and a faction of the City Commission challenged it to the bitter end. The commission met in special session prior to the closing.

The Dec. 30 closing followed legal challenges filed by Zischkau to stop the deal, as well as a suit filed against Zischkau by the Cavallaro Group.

Zischkau, along with Commissioner Zenaida Denizac and Vice Mayor Michele McFall-Conte objected to the city's rejection of an earlier decision to purchase 18 different acres not far away for $2.5 million.

As the Cavallaro Group lawsuit against Zischkau, and Zischkau's counter lawsuit work their way through the courts, City Attorney James "Skip" Fowler advised the City Commission, the legal action is not likely to result in the land purchase being overturned.

REPORTED TUESDAY, DEC. 29 BY BEACON STAFF WRITER PAT HATFIELD: The Deltona City Commission will meet at 2 p.m. Wednesday, Dec. 30, in the second-floor conference room at City Hall. The topic of the special meeting will be the city's purchase of the Howland Crossings property, the site of a new fire station and public safety complex just off Howland Boulevard.

According to the city's notice of the meeting, the topic will be "Discussion and direction to staff re: issues related to Howland Crossings' closing."

According to the sales contract, the closing should occur on or before Dec. 31.

The deal has been a bone of contention and the source of lawsuits between the developer, Cavallaro Group, and City Commissioner Herb Zischkau, who has opposed the deal since the City Commission approved it 4-3 last year.

The Cavallaro Group, headed by Larry Cavallaro, filed suit against Zischkau for efforts to delay or prevent the closing. Zischkau has countersued.

Zischkau, who is an attorney, said if the city closes on the property Dec. 30, it will be waiving its rights to renegotiate the deal, which it can, since the Cavallaro Group can't properly deliver the property because of the pending litigation.

The city is poised to pay $7.6 million for the property, which Zischkau said is worth no more than $2 million.

In his response to Cavallaro's suit filed Dec. 28, Zischkau denied any liability, asked that the suit be dismissed, and asked for a judgment against the Cavallaro Group for attorney's fees and expert-witness fees. In his counterclaim, Zischkau also asked for an injunction prohibiting a closing on what he called an "invalid contract." He also asked that Cavallaro Group be made to repay $1.9 million already received from the City of Deltona.

— pat@beacononlinenews.com

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