Placement: First Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 26-101, Public Hearing, an Ordinance to Establish the Founders Crossing Community Development District
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Submitted By: Russell Ward, Deputy City Attorney
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Executive Summary (General Business): Founder’s Crossing, LLC, (the “Petitioner”) has submitted a petition to the City of Port St. Lucie requesting the adoption of an ordinance establishing the Founders Crossing Community Development District
Presentation Information: Questions will be answered upon request
Staff Recommendation: Move that the Council approve the Ordinance for consideration at second reading
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the Ordinance for consideration at second reading
2. Move that the Council not approve the Ordinance for consideration at second reading and provide direction
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 Founders Crossing Community Development District (The “District”). The proposed District covers approximately 360.869 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 8 to the Petition.
In making its determination of whether to grant or deny the Petition establishing the District, the City Council should consider the same six (6) factors set forth above.
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 data, are shown in Exhibit 6 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 south of Midway Road, to both the east and west of McCarty Road, north of the intersection of McCarty Road and Newell Road.
Business Impact Statement: N/A
Attachments:
1. Proposed Ordinance
2. Petition to Establish Founders Crossing 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: 26058-09
Legal Sufficiency Review:
Reviewed by Russell Ward, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.