Commission Meeting Agenda Item

Agenda Item

Consideration of Request to Provide Water and Sewer Utility Service to Lake Sumter Villas in Sumter County for Property Located on the West Side of Cherry Lake Road (C.R. 100) and South of County Road 466, in Unincorporated Sumter County


Growth Management Department

Staff is of the opinion that, based upon trends, it is not likely that the capacity in the Consumptive Use Permit will be absorbed by 2026. However, staff respectfully defers to the discretion of the Town Commission to determine if entering into such an agreement is the best course of action for the Town.


On Monday, March 2, 2020, Jonathan Huels of the Lowndes Law firm made a presentation to the Town Commission of a proposal to expand the Lady Lake Utility Service Area Boundary to incorporate approximately 49.46 acres of land located west of Cherry Lake Road and south of County Road 466. The subject property is in the jurisdiction of Sumter County. During the discussion, it was stated that a projected annual revenue of $42,000 would be paid to the Town as a result of the 25% surcharge on the water rate due to the property being unincorporated. Further, Mr. Huels stated that the developer would be responsible for the cost of the utility line expansion to service the property.

Following the presentation, Commissioner Kussard and Commissioner Holden were not in favor of this expansion. Commissioner Hannan and Commissioner Vincent were initially in favor of this, although Commissioner Vincent stated he would like more information. Mayor Richards stated that he would like additional analysis by staff before considering the proposal further.

At this time, Mr. Scott Culp of Atlantic Housing Partners has requested to come back before the Town Commission for consideration to service an 18.23-acre property located west of Cherry Lake Road in unincorporated Sumter County. The property is outside of the Town’s utility service area, and the capacity being sought by the developer is not accounted for in the current CUP allocation. The present Future Land Use and Zoning classification of the property allows for a maximum of six units per acre., or 109 units. Mr. Culp’s new proposal suggests building 41 single-family detached homes with attached accessory dwelling units (ADU’s) equaling 82 total residential units.

Mr. Culp stated in an email dated October 11, 2021, that their company is finding a market for the single-family homes with ADU’s including, but not limited to, seniors with a need for live-in caretakers, aging couples with a need for independent living arrangements for adult children, and young families with a need for independent living for an active mother-in-law, father-in-law and/or grandparent. The developer also states that Atlantic Housing Partners would be open to an agreement with the Town that would include terms of no affordable rent or income restrictions, no short-term rentals, and compliance with the Town’s architectural standards as part of the approved utility agreement.

The consumption of water per day has averaged 808,326 from January through September of calendar year 2021. The present capacity assigned to the Town under the Consumptive Use Permit (CUP) issued by the St. John’s River Water Management District is 1.188 million gallons per day. The present surplus in our water allocation is 379,647 gallons per day; the Consumptive Use Permit is set to expire and be reassigned in 2026.

Staff has included an attached table which shows current and potential projects which may come to fruition in the near future, some of which have been on the list for over a decade. At this point in time, it is very difficult to determine when the projects will begin to be built, as many conditions of the market, in addition to events like COVID-19, factor into construction trends. The scenario that is depicted in the table is one in which all of the listed projects are built out over the next seven years. If equivalent capacities are consumed each year, then the Town will not reach the 1.188 million gallons per day prior to 2026 when analyzing actual flow. On paper, the assigned capacity will exceed the CUP in 2025.

The forecasted assignment as per the Land Development Regulations for the proposed 82 residential units is 20,500 gallons per day; consumption may be as little as 10,250 gallons per day.

Fiscal Impact

Not applicable at this time.

Source of Funding

Not applicable.

Funding Account

Not applicable.