Ormond Beach taxpayers could pay over $100K in legal costs in fuel facility fight

An image from Belvedere Terminals shows an example of what the firm's storage tanks look like.

The city of Ormond Beach signed an agreement with beverage distributor S.R. Perrot to share legal costs in the fight against a proposed fuel facility ― and taxpayers could be on the hook for more than $100,000.

The agreement signed in December means both entities will pay the law firm Carlton Fields to represent them in opposing Belvedere Terminals' proposed fuel storage and distribution facility at 874 Hull Road.

Plans for fuel to be shipped in via train, stored onsite and trucked to local retailers 24 hours a day sparked controversy among residents and elected officials, and people have been looking for ways to stop the project.

People have voiced concerns over public health and safety, even though Belvedere Terminals officials have said the project would comply with safety regulations.

The Florida Department of Environmental Protection issued an air emissions permit to Belvedere Terminals. S.R. Perrott is challenging that decision through the Florida Division of Administrative Hearings. Carlton Fields is representing S.R. Perrott in that case.

S.R. Perrott said in a case filing that "the permit and its safeguards do not fully consider and mitigate the proposed project's full potential to emit pollutants." The business also says that legal requirements weren't satisfied by the project's public notice of a pending air-quality permit in the Hometown News.

The agreement between the city of Ormond Beach and S.R. Perrott says they will share the cost of Carlton Fields' "legal services related to the FDEP air quality permit and any land use proceedings before Volusia County regarding the proposed fuel farm project."

The costs will be split evenly up to $100,000 each. The city of Ormond Beach will be responsible for any amount over that, according to the agreement.

The Ormond Beach City Charter doesn't set a limit on legal expenses, Ormond Beach City Attorney Randy Hayes said. The city's funding for the cost-share agreement is coming from its risk management and litigation insurance fund, he said.

Hayes said he doesn't view the agreement as the city paying the legal costs of a private business.

"We take the view that this is an issue of public importance and is of such public importance it is necessary that in the interest of protecting the interests of the community at large that we participate in the shared common goal of removing and eliminating this inherently dangerous threat to our community," Hayes said. "And if that means partnering up with a corporate resident, that's an appropriate thing to do."

A public relations firm for Belvedere Terminals sent the cost-sharing agreement to the News-Journal and raised concerns about compliance with government transparency laws because the agreement didn't go before the City Commission.

Hayes said via email that the City Commission voted in September "to take all necessary action to oppose the fuel farm, including retaining legal services, in order to protect the interest of the city and residents." But beyond that, the city charter already gives him the authority to get outside legal services, he said.

A representative for S.R. Perrott declined to comment because of their active case against Belvedere Terminals.

Hayes said it's not clear how far the legal battles with Belvedere Terminals will go. The City Commission voted against annexing the property into the city if Belvedere Terminals sought to do so. The City Commission also voted against providing utility services to the project.

"Right now we are in the early stages of this issue with Belvedere. I have no idea where it will end up. I don't know whether perhaps they may sue us over the issue of the water … and the annexation. If they do we'll deal with that," Hayes said.

This article originally appeared on The Daytona Beach News-Journal: Ormond Beach, S.R. Perrott agree to share costs in fuel facility fight