Commission Meeting Agenda Item

On June 6, 2022, Lady Lake Square LLC entered into a Water and Sewer Agreement with the Town of Lady Lake for the reservation of 119 Sanitary Sewer ERUs, 119 Water ERUs, and 29 Reuse Water ERUs, amounting to a total of $570,491. According to Section 10 of the agreement, referenced as “Other Essential Terms”, under subsection h. the “Developer shall pay all amounts required under this agreement within 30 days after the Town of Lady Lake executes this agreement.”

Following the execution of the agreement by both parties, Lady Lake Square LLC failed to remit payment in the amount of $570,491 within the 30-day period; subsequently, the developer has not paid any amount to date to reserve capacity for the requested utilities.

Section 10, subsection h. closes with the following, “Should Developer fail to pay all amounts required under this agreement within 30 days after the Town of Lady Lake executed this agreement, the Town, in its sole discretion may rescind and void this agreement in its entirety.”

Since that time there has been no adjustment to the utility impact fee schedule of the Town of Lady Lake, nor have the reservation capacities requested by the developer been modified. Given that the Town has yet to formally rescind and void the agreement, the agreement, and all terms and conditions therein, is deemed valid and enforceable should the Town Commission be willing to accept late payment in the amount of $570,491 for the reservation of utilities capacity at this time.

The agreement was reviewed by the Town Attorney, Derek Schroth and Town Staff and determined correct in form for consideration and approval by the Town Commission prior to its presentation before the Town Commission at the June 6, 2022 meeting.

PAST ACTIONS

At the June 6, 2022 meeting, the Town Commission approved the Water, Sewer and Reuse Utility Agreement for Lady Lake Square Apartments on the consent agenda as presented.