Both the city and Pell City-Tifton Properties, LLC, filed a notice of appeal, notifying the probate court that the parties involved intend to appeal the September judgment in the case.
In September, Probate Court Judge Mike Bowling issued an order condemning the old Avondale well site.
Bowling also upheld the recommendation of a 3-member commission he appointed. The commission determined the fair market value of the one-acre well site along U.S. 231 South was $750,000.
Mayor Bill Hereford recommended to the council last month that the city appeal the case to St. Clair County Circuit Court, and the council approved his recommendation in a 5-1 decision.
Officials say the well is vital for the city and accounted for about 28 percent of the city’s water supply in 2007.
Pell City-Tifton Properties, LLC, initially offered to sell the well site to the city for $1.9 million. This is the amount appraised by an independent expert hired by the company. Company officials say the appraiser specializes in land/water rights.
Kevin Whiteside, president of Pell City-Tifton Properties, LLC, said according to current water rates, the city could make $2 million within a two-year period from the water it pumps and sells to residents from the old Avondale well.
The city countered with its own appraisal, saying the property was only worth $310,000.
According to court documents, the city only pursued condemnation because an agreement was not worked out with Pell City-Tifton Properties, LLC, stating it was in the best interest of the city and its citizens that the city acquire ownership of the well site for public water supply purposes.
City officials contend the fair market valued determined in Probate Court is too much.
The city provided the Probate Court with a $750,000 check and secured a surety bond in the amount of $1.5 million so the city could appeal the case to Circuit Court.
Pell City-Tifton Properties, LLC, contends the city had no right to pursue condemnation, and the value of the old Avondale well is worth much more than what was determined in Probate Court.
Pell City-Tifton Properties, LLC, also filed a claim with the city, alleging that the city owes the company more than $70,000 for the use of its well.
Pell City-Tifton Properties, LLC, began leasing the old Avondale well to the city in November 2008, after the city failed to renew its well contract with Avondale Mills. The city could have renewed its contract with Avondale for an additional 20 years but failed to do so.
Avondale Mills sold most of its Pell City property to Pell City-Tifton Properties, LLC in 2007, including the well site along U.S. 231 South and the 26-acre mill site between Cogswell Avenue and U.S. 78.
City officials say the old Avondale Mills well produces about 637,000 gallons of water per day, which is about 55 percent of its maximum pumping capacity of 1.152 million gallons per day.
Negotiations for the sale and/or purchase of the old Avondale mill and well sites continue between company officials and the mayor, Whiteside said.
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