Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
title
Ordinance 24-26, Public Hearing, Petition to Establish the Sundance Community Development District.
body
Submitted By: Russell Ward, Deputy City Attorney.
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Executive Summary (General Business): ACR Acquisition, LLC, (the “Petitioner”) has submitted a petition to the City of Port St. Lucie requesting the adoption of an ordinance establishing the Sundance Community Development District.
Presentation Information: Questions will be answered upon request.
Staff Recommendation: Move that the Council approve the Ordinance.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the Ordinance.
2. Move that the Council not approve the Ordinance.
Background: A Community Development District (“CDD”) is an independent unit of special purpose local government authorized by Chapter 190, Florida Statutes, to plan, finance, operate and maintain community-wide infrastructure in large, planned community developments. CDDs provide a “solution to the state’s planning, management and financing needs for delivery of capital infrastructure to service projected growth without overburdening other governments and their taxpayers.” See section 190.002(1)(a), Florida Statutes.
A CDD is not a substitute for the local, general-purpose government in which it lies. A CDD does not have the permitting, zoning or police powers possessed by general purpose governments (e.g. City of Port St. Lucie). A CDD is an alternative means of financing, constructing, operating, and maintaining community infrastructure for planned developments.
The exclusive and uniform method for establishment of a CDD of less than 2,500 acres in size if all the land in the area for the proposed district is within the territorial jurisdiction of a municipal corporation is pursuant to an ordinance adopted by the municipality in whose jurisdiction the CDD is located. The Petitioner has submitted a petition to the City of Port St. Lucie requesting the adoption of an ordinance establishing the Sundance Community Development District (The “District”). The proposed District covers approximately 427.4545 acres of land. The boundaries of the proposed District are described in the Legal Description attached to the Petition as Exhibit 2.
Issues/Analysis:
Statutory Analysis
Before the Petition can be considered for review, a determination must be made as to whether the requirements of section 190.005, Florida Statutes, have been satisfied. The City of Port St. Lucie’s Planning and Zoning, Finance, Public Works, Utility Systems, and Legal Department applied the six (6) statutory criteria to the information provided in the Petition, which were:
1. Whether all statements contained within the petition have been found to be true and correct.
Staff has reviewed the Petition and finds that all statements within the Petition to be true and correct.
2. Whether the establishment of the district is inconsistent with any applicable element or portion of the state comprehensive plan or of the effective local government comprehensive plan.
Planning and Zoning Staff has found the establishment of the proposed District to be consistent with the City of Port St. Lucie’s Comprehensive Plan.
3. Whether the area of land within the proposed district is of sufficient size, is sufficiently compact, and is sufficiently contiguous to be developable as one functional interrelated community.
Planning and Zoning Staff has found that the area of land within the proposed District to be sufficiently sized, sufficiently compact, and sufficiently contiguous to be developed as one functional community.
4. Whether the district is the best alternative available for delivering community development services and facilities to the area that will be served by the district.
The Petitioner has provided an analysis of alternatives that demonstrates that the proposed District is favorable to other alternatives. The Utility Systems Department and Public Works Department agree that the establishment of a CDD to manage and maintain infrastructure within this development is consistent with other private subdivisions within the City.
5. Whether the community development services, and facilities of the district, will be incompatible with the capacity and uses of existing local and regional community development services and facilities.
The Utility Systems Department and Public Works Department believe that the community development services to be provided by the proposed District are compatible with the capacity and uses of existing local and regional community development services and facilities.
6. Whether the area that will be served by the district is amenable to separate special-district government.
The area to be served by the proposed District is amenable to special-district government based on consideration of the above criteria. The Petitioner has obtained written consent to establish the District from owners of one hundred percent (100%) of the real property located within the boundaries of the proposed District, in accordance with Section 190.005, Florida Statutes. Documentation of the consent is contained in Exhibit 3 to the Petition.
In making its determination of whether to grant or deny the Petition establishing the District, City Council should consider the same six (6) factors set forth above.
Special Powers
The petitioner is seeking for the District to be able to exercise the special powers set forth in sections 190.012(2)(a) and (d), Florida Statutes, which includes the powers to plan, establish, acquire, construct, reconstruct, enlarge or extend, equip, operate and maintain systems and facilities for (1) parks and facilities for indoor and outdoor recreational, cultural, and educational uses; and (2) security, including, but not limited to, guardhouses, fences and gates, electronic intrusion detection systems, and patrol cars, when authorized by proper governmental agencies; provided, however, that the District may not exercise any police power, but may contract with the appropriate local general purpose government agencies for an increased level of service within the District boundaries. Said powers shall be discharged in accordance with Chapter 190, Florida Statutes.
The proposed establishment Ordinance contains language indicating that the District’s exercise of special powers pursuant to section 190.012(2)(d), Florida Statutes, may not impede the public’s access to public roadways and that the District shall not impose special assessments of any kind for whatsoever on real property to be dedicated or owned by the City. Additionally, the District shall not operate or maintain any water and sewer facilities within its boundaries unless an interlocal agreement is entered into between the City and the District and all of such facilities shall be dedicated to and/or owned by the City.
Taxing Authority
Pursuant to section 190.021(1), Florida Statutes, “[a]n ad valorem tax levied by the board for operating purposes, exclusive of debt service on bonds, shall not exceed 3 mills, except that a district authorized by a local general-purpose government to exercise one or more powers specified in s. 190.012(2) may levy an additional 2 mills for operating purposes, exclusive of debt service on bonds.” Ultimately, by authorizing the exercise of the above powers, the proposed District will be able to levy an additional 2 mills for the sole purpose of operations.
The City and CDDs
The City has granted such Petitions in the past but has required that following construction, potable water and wastewater facilities be dedicated to the City of Port St. Lucie, and that authorization to operate potable water and wastewater facilities requires an interlocal agreement between the District and the City.
Financial Information: The only annual costs the City faces are the minimal costs of receiving and reviewing the various reports that the District is required to provide to the City. The Petitioner’s estimated project costs of constructing the services, based on available date, are shown in Exhibit 5 to the Petition. Any debt obligations incurred by the proposed District to construct its infrastructure, or for any other reason, are not debts of the State of Florida or any unit of local government. In accordance with State law, debts of the District are strictly its own responsibility. The City would be responsible for maintenance costs of infrastructure built outside of the CDD boundaries.
Special Consideration: N/A.
Location of Project: The site is generally located east of Rangeline Road, south of Hegener Road and north of Becker Road.
Attachments:
1. Proposed Ordinance.
2. Petition to Establish Sundance Community Development District.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 24060-06.
Legal Sufficiency Review:
Reviewed by Russell Ward, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, Interim City Attorney.