Commission Meeting Agenda Item
Discussion of the Creation of a Community Development District (CDD) for the Hammock Oaks Development on Highway 466
Staff Recommended Motion
Staff has concluded that there is no negative impact to the Town as a result of the establishment of the Community Development District (CDD). However, upon evaluation of the proposal, the Town Commission should make their own determination as to whether there is consensus to move forward to set public hearings for formal consideration of the CDD.
On Monday, October 25, 2021, the Growth Management Director, Town Manager, and Town Attorney met with Jere Earlywine, Attorney with the KE Law Group, Greg Beliveau of LPG Urban and Regional Planners, Inc., and Eric Morrisette of Kolter to discuss the potential of creating a Community Development District (CDD) for the project know as Hammock Oaks. At the conclusion of the meeting, it was the determination of Town staff and the Town Attorney, that the establishment of a CDD has no negative impacts to the Town.
Although the entire project is approximately 420 acres. The CDD is only being requested to govern approximately 378 acres; the commercial properties along Highway 466 will not be included.
The applicant’s overview statement contends that, “The District is designed to provide public infrastructure, services, and facilities along with operation and maintenance of the same to a master planned residential development currently anticipated to contain a total of approximately 1,156 residential dwelling units, all within the boundaries of the District.
A community development district ("CDD") is an independent unit of special purpose local government authorized by the Act to plan, finance, construct, operate and maintain community-wide infrastructure in planned community developments. CDDs provide a "solution to the state's planning, management and financing needs for delivery of capital infrastructure in order to service projected growth without overburdening other governments and their taxpayers." Section 190.002(1)(a), F.S.
A CDD is not a substitute for the local, general purpose government unit, i.e., the Town or county in which the CDD lies. A CDD does not have the permitting, zoning or policing powers possessed by general purpose governments. A CDD is an alternative means of financing, constructing, operating and maintaining public infrastructure for developments, such as Hammock Oaks”.
The applicant proposing to establish the Hammock Oaks Community Development District states that the petition should be granted for the following reasons:
- Establishment of the proposed district and all land uses and services planned within the proposed district are not inconsistent with applicable elements or portions of the effective State Comprehensive Plan or the local Comprehensive Plan.
- The area of land within the proposed district is part of a planned community. It is of sufficient size and is sufficiently compact and contiguous to be developed as one functional and interrelated community.
- The establishment of the proposed district will prevent the general body of taxpayers in the Town of lady Lake from bearing the burden for installation of the infrastructure and the maintenance of certain facilities within the development encompassed by the proposed development services and facilities to the proposed community without imposing an additional burden on the general population of the local general-purpose government.
- Establishment of the proposed district in conjunction with a comprehensively planned community, as proposed, allows for a more efficient use of resources.
- The community development services, and facilities of the proposed district will not be incompatible with the capacity and use of existing local and regional community development services and facilities. In addition, the establishment of the proposed district will provide a perpetual entity capable of making reasonable provisions for the operation and maintenance of the proposed district's services and facilities.
- The area to be served by the proposed district is amenable to separate special-district government.
- The applicant contends there are only positive benefits for the Town, that there is no downside based upon the following:
- CDD has limited authority; the Town keeps all of its powers.
- Town retains zoning, permitting authority.
- CDD must comply with applicable laws, including Town ordinances.
- No debt of the CDD can be a debt of the Town.
- No administrative costs to Town.
- CDD assessments do not impact Town millage caps.
- CDD debt is NOT disclosed on Town’s financial statements (unlike Tax Increment Financing).
- Less likely to get default OR complaints than Homeowners Association.
The petitioner for the proposed CDD has obtained written consent to establish the district from the owners of one hundred percent of the real property located within the proposed District in accordance with Section 190.005 of the Florida Statutes.
To be determined.
Source of Funding