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What is the Vasari CDD. What are CDDs and why were they created? How do they operate? How are they different from HOAs? The Vasari CDD What is the Vasari CDD responsible for?. Community Development District. What and Why were CDDs created?.
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What is the Vasari CDD What are CDDs and why were they created? How do they operate? How are they different from HOAs? The Vasari CDD What is the Vasari CDD responsible for? Community Development District
What and Why were CDDs created? • CDDs are an independent, local unit of special purpose government charged with planning, financing, constructing and/or acquiring, operating and maintaining community-wide infrastructure in large planned developments • Specifically they are to fund the development of the infrastructure such as water lines, sewer service roads and lakes or ponds to collect the storm runoff. • This is the financial vehicle the developer Taylor-Woodrow used to develop Vasari Country Club. Community Development District
Florida Statute Chapter 190 is the Charter for CDDs • Provides for units of Special Purpose Government- CDDs • Authorizes use of low-cost, tax exempt financing for infrastructure: roads, storm water systems, water & sewer systems, and streetlights. • Authorization to issue bonds, borrow funds, levy ad valorem taxes, non-ad valorem assessments and special assessments Community Development District
Florida Statute Chapter 190 cont... • Grants the board authority to exercise powers under this act. • Establishes board election procedures/terms of office • Establishes budgeting and reporting standards • Allows for establishing fees for use of district facilities Community Development District
Community Development DistrictsPowers they possess • Finance, fund, plan, establish, acquire, construct or reconstruct, enlarge or extend, equip, operate and maintain basic infrastructure: • Water management and control • Water supply, sewer and wastewater management, reclamation and reuse • Bridges, culverts, roads, street lights • Public transportation facilities and equipment • Parking improvements and related signage • Conservation areas, mitigation areas and wildlife habitats • Other improvements as agreed upon by the local government having jurisdiction Community Development District
What are the CDD – HOA Differences • HOA/CDD functions are unique and different. • An HOA is a private contractual organization which exists to manage commonly owned private property for the benefit of its members. • A CDD is a public entity, a local unit of government which exists for the sole purpose to manage the construction, acquisition and maintenance of public government infrastructure whether the property being benefited and burdened is private or public. Community Development District
The Vasari CDD when and how? • The developers wanted to create the District and proceeded by approaching the Bonita Springs City Council which approved the District in June 2001 by adopting Ordinance #01-09 • A Engineers report was created and became a part of both the bond issuance documents and the development plan used for all State and local permitting. • The CDD was formed and the bonds sold for a coupon rate of 6.95% for 30 years Community Development District
TABLE 3A TABLE 3 VASARI COMMUNITY DEVELOPMENT DISTRICT SUMMARY OF OPINION OF PROBABLE COSTS VASARI COUNTRY CLUB SUMMARY OF DEVELOPER’S PROBABLE COSTS* *Summary of probable costs noted within this table have been provided by Taylor Woodrow Communities and Vasari, LLC Community Development District
TABLE 2 VASARI COMMUNITY DEVELOPMENT DISTRICT SUMMARY OF FACILITIES AND SERVICES ** The CDD is only responsible for the prorated (residential tracts and common areas –versus-golf course) share of the irrigation system construction costs based on anticipated water usage. The remainder is funded by the Developer ***The CDD is only responsible for the imported fill necessary to bring grades in the golf course and in the residential area areas up to the 25-year, 3-day flood stage elevation. The remainder is funded by the Developer Community Development District
VASARI COMMUNITY DEVELOPMENT DISTRICTLONG RANGE PLANNING GOALSAdopted December 2011 Community Development District
The Vasari Community Development District (CDD) in December 2011 adopted the following Long Range Planning Goals for the Vasari community: Lake Maintenance and Beautification Conservation Area Maintenance Community Cooperation Communication with the Community Residents Clean Up of Issues Left Unresolved by the Developer Development of a Capital Reserve Plan Community Development District
Lake Maintenance and Beautification: The goals of lake maintenance are the repair and control of lake bank erosion, maintenance of the lake interconnecting piping, weed control and water quality. Inspection and cleaning of interconnect piping. Total cost to inspect and clean interconnect pipes $43,775.00. Community Development District
Erosion is controlled by using various techniques, such as, Rip Rap and Geo Filter Tubing. Total expense for erosion control is $93,023.56. Community Development District
Littoral plants, such as spike rush, golden canna, pickerelweed and tree plantings provide lake bank control, improve water quality and beautification of the lake banks. Total expense the CDD has incurred is $36,039.20 Community Development District
Lake aeration systems are used to pump compressed air through bottom diffusers creating total water column circulation for better aquatic plant and fish management. Total expense for new aerators to be installed was $76,020.58. Community Development District
Conservation Area Maintenance • The District is required to be in compliance with all of the permitting conditions. • The removal of trees and other native Florida plants are not permitted. • A regular maintenance program includes the removal of debris and the spraying of invasive plants on a quarterly basis. • Monthly Inspections. Community Development District
Community Cooperation to promote efficiencies within the Community • The District is committed to working, in a cooperative manner, with the Master Association to promote cost effective approaches to capital needs for infrastructure replacement or repairs. • The philosophy of the District is that anything for the good of the Vasari residents will be considered. Community Development District
Communication with Community Residents to insure awareness of CDD efforts within Vasari • The District has expanded its website to include more information regarding the activities of the CDD. Community Development District
Clean up of issues or concerns left unresolved by the developer. • The District and the Master Association have been working to address several title transfers that were not completed when the developer turned over the property. • The perimeter of the community is one such item. Since the CDD bond was used to finance the perimeter improvements the CDD must have property right to these areas. The District and the Master Association are working to resolve this matter by securing easements to this area and others where needed. • The District and the Master Association has entered into a number of maintenance agreements in certain areas. The irrigation system and I-75 berm are examples of these agreements. Community Development District
Development of a Capital Reserve Plan • The District has been working diligently to identify all capital assets and establish a plan to insure sufficient funds are available to meet repair and if needed replacement of assets. These assets include the conservation areas, lakes, storm water management system, lake aerators, irrigation in non-golf areas and the perimeter of the community. Community Development District
Vasari CDD Budget Schedule FY 2012-2013 Community Development District
Key dates to work around • No later than June 15, 2012 the budget has to be presented by the District Manager. • The budget has to be tentatively approved by that date and a public hearing set at least 60 days in advance. • The budget legally has to be adopted prior to October 1 but assessments have to be set and sent to the County by September 15th so they can be included on the roll. Community Development District
Vasari FY-2011-2012 Budget • Adopted at a public hearing July 12, 2011 • Balanced Budget with no increase in assessments for at least the fourth straight year. • Retained a fund balance to address current and future maintenance needs. • Set the goals for spending and addressing landscape, lake bank and establishing reserves for future needs. Community Development District
Operating & Maintenance Assessments Community Development District
Vasari Assessment Rates Community Development District
Suggested schedule • We are proposing June 12th and August 14th as key dates for the budget but these can be changed based upon the BOS direction. The only restrictions are identified above. • April 10th - Review forms, budget goals, solicit for capital needs and special projects and other pertinent information. First draft of budget from Manager presented to BOS including financials as of 3/31/2012, projected expenses and revenue for remainder of the fiscal year and suggested budget for FY2012-2013. • May - Various working meetings by Board of Supervisors receiving requests for spending and reviewing projected budget expenditures and revenue needs. Community Development District
Vasari CDD2011 Accomplishments Community Development District
Major CDD Responsibilities • Distinct Responsibilities from HOA and Golf Course Maintenance • Cooperative Relationship with HOA • Supported by $442.09 maintenance portion of annual CDD Assessment to each homeowner • Lake Management and Erosion Control • Flood Control • Golf course and streets • Perimeter maintenance and security • Responsibility for 5 Specific Nature Preserves • Irrigation System to Homeowners Community Development District
2011 CDD Accomplishments • Lake Management and Erosion Control • Monthly water quality assessments • Monthly visual inspections • Erosion Control Actions • Littoral plantings on lake shores • Installation of Geo Tubes and Inka Mats • HOA and CDD Cooperative Maintenance Agreement for Landscape Management • I-75 Eastern Perimeter landscape management Community Development District
2011 CDD Accomplishments • Flood Control • Cleaning and Inspection of Lake Interconnects • Establish Needed Easements • Perimeter maintenance and security • Establish Needed Easements • Landscape enhancements on East Boundary • Responsibility for 5 Specific Nature Preserves • Irrigation System to Homeowners • Pump repair Community Development District
2011 CDD Accomplishments • Legal Infrastructure Review • Perimeter Easements • HOA and Matera • Others will reviewed in 2012 • Lake Interconnect Easements • Expanded CDD Powers Community Development District
HOA/CDD PROJECT REQUEST PROCESS Community Development District
HOA/CDD PROJECT REQUEST PROCESS • SEPARATE BOARDS • SAME CONSTITUITE, THE VASARI MEMBER • INTEGRATED PLANNING PROCESS ESSENTIAL • TWO OUTLINES: • Project Plan Outline (straight forward projects) • Business Case Outline (complex projects) Community Development District
PROJECT AND BUSINESS CASE* OUTLINES • Statement of Request • Statement of Benefit • Statement of HOA Action Taken or Proposed • Legal and Engineering Considerations • Major Implementation Steps • Estimated Project Costs (HOA & CDD) • Cost/Benefit Evaluation • Statement of Assessment Impact • Detailed three year financial pro forma* Community Development District
FIELD O&M EXPENSES&RESERVE and CAPITAL PLANNING Community Development District
ANNUAL EXPENSES (ADM. & FIELD) RESERVE and CAPITAL PLANNING • Budget Planning Goal • maintain a fairly constant annual assessment (no yoyo ups-and-downs) • 2012 Annual Expenses $328,100 • Admin. (29%), Field R&M (71%) • 2012 Reserve Fund $425,200 • Comprehensive, detailed review of reserve fund categories, amounts and uses currently underway Community Development District
FIELD O&M EXPENSESCAPITAL and RESERVE PLANNING • Annual Field R&M Expenses • Preserves, Perimeter Wall, Interconnect Pipes, Lake Banks/Drainage • $234,400 for 2012 • Capital and Reserve Categories • Irrigation, Perimeter Wall, Lakes Banks/Drainage, Aeration System, Emergency, Three Month Operating, Undesignated • $425,200 in 2012 Community Development District
CDD WEBSITE OVERVIEW Established Feb. 2011 Important element of CDD Communications Plan: Meeting agendas sent via blast e-mail; open meetings with resident comments; town hall meetings; CDD website CDD website link on Vasari website Let’s take a real time tour of the CDD website Community Development District
CDD SPECIAL POWERS Gregory L. Urbancic, Esq. COLEMAN, YOVANOVICH & KOESTER, P.A. Community Development District
Statutory framework for powers of a CDD • General Powers available to CDDs – Section 190.011, Florida Statutes • Special Powers relating to public improvements and community facilities available to all CDDs – Section 190.012(1), Florida Statutes • Other Special Powers available to CDDs – Section 190.012(2), Florida Statutes • Consent of local government necessary Community Development District
Section 190.012(2), Florida Statutes • Parks and facilities for indoor and outdoor recreational, cultural, and educational uses. • Fire prevention and control • School buildings and related structures • Security- guardhouses, fences and gates, electronic intrusion-detection systems, patrol cars. • May not exercise any police power, but may contract for an increased level of such services. • Mosquito control • Waste collection and disposal. Community Development District
Vasari CDD’s powers as approved by City of Bonita Springs Approved Powers: Parks and facilities for indoor and outdoor recreational, cultural, and educational uses. Security- guardhouses, fences and gates, electronic intrusion-detection systems, patrol cars. Community Development District
Examples of other CDDs with similar powers Mediterra North and Mediterra South Heritage Palms Heritage Greens Verandah East Verandah West Laguna Lakes (security) Pelican Marsh Cedar Hammock Lely (security) Fiddler’s Creek Naples Heritage Key Marco Community Development District
What does it mean to have additional powers under Section 190.012(2)? No obligation or mandate to use these powers No commitment to spend funds just by obtaining authorization from the local government Exist in the CDD’s bundle of rights Community Development District
How is the Vasari CDD using its Section 190.112(2) powers? • Ownership, operation and maintenance of perimeter wall • Future use to be determined by the Board of Supervisors Community Development District
CDD Assets • Generally described in original Engineer’s Report • Other additions • Public nature of assets • CDD operation and maintenance responsibility Community Development District