Community Development District Work Session May 10, 2016 Community Development District Work Session May 10, 2016

Presentation Outline Introduction Background Statutory Framework Project Overview

Introduction  Infrastructure Funding Tool Provided for in Ch.190, Florida Statutes  Orange County CDDs −Falcon Trace (1998) −Bonnet Creek (2000) −Palazzo del Lago (2006) −MidTown Orlando (2008) Comprehensive Plan Policy CIE 1.4.9

Location The Grove Resort (fka Grand Palisades Resort)

Future Land Use Map

Aerial Map

Background The Grove Resort (Lake Austin PD)  Current Short Term Rentals4159 Commercial60,000 Sq. ft. Administration40,000 Sq. ft.  Proposed Short Term Rental4831 CommercialNo Change Administration No Change Entitlements Processing Change Determination (DRC April 27, 2016) Rescinding DRI Development Order

Statutory Framework  Independent special district – unit of special purpose government authorized by legislature under Chapter 190 Florida Statutes  Allows developers to establish govt. entity to: −Finance infrastructure & services −Impose special assessments on property −Issue bonds −Manage services  Similar to HOA’s but assessments can be collected via property tax bill Purpose

 2,500 acres or more – petition to Florida Land & Water Adjudicatory Commission  Less than 2,500 acres: −Petition to county or municipality by developer −Adoption of ordinance Statutory Framework Creation

 Petition must contain: −consent of 100% of landowners −boundaries of district −designate initial board of supervisors −list proposed services and capital improvements −timetable for construction −designate public and private uses of land −statement of estimated regulatory costs (SERC)  Public Hearing advertised for 4 consecutive weeks prior to hearing Statutory Framework Creation – Cont.

 Factors board may consider in granting or denying a petition: –accuracy of statements in petition –consistent with comprehensive plan? –is land developable as one functional community? –is CDD best alternative available for delivering the community development services and infrastructure to the area? –services and infrastructure compatible with existing services and infrastructure? –is area amenable to separate special district government? Statutory Framework Creation – Cont.

 Board of Supervisors –5 members –Elected by property owners –Voting according to acreage/unit –Subject to Sunshine Law Statutory Framework Governance

 Chapter 190 – preemption - uniform charter  County ordinance cannot limit  No zoning or permitting power  Special assessments for services  Special assessments for capital improvements  Finance & construct infrastructure  Issue bonds  Certain other projects pursuant to development orders or interlocal agreements consistent with the comprehensive plan  Ad Valorem taxes up to 3 mills if supervisors elected by qualified electors – rarely Statutory Framework Powers

 Parks & recreational facilities  Fire prevention/control facilities  School buildings  Security - but not police power  May contract with county for enhanced level of service  Mosquito control  Waste collection & disposal Statutory Framework Special Powers Requiring County Consent

 In previous CDD approvals, Orange County has required: −developer agreement regarding residential development −interlocal agreement with newly created CDD regarding size of bond issue Statutory Framework Limitations on Powers

 May issue bonds to finance improvements  Pledge special assessments as security  Bonds validated in court  Disclosure of financing to purchasers on initial sales of property and residential units  Notice of CDD Establishment recorded in property records Statutory Framework Financing Authority

Required Disclosure to Initial Buyers THE _______ COMMUNITY DEVELOPMENT DISTRICT MAY IMPOSE AND LEVY TAXES OR ASSESSMENTS, OR BOTH TAXES AND ASSESSMENTS, ON THIS PROPERTY. THESE TAXES AND ASSESSMENTS PAY THE CONSTRUCTION, OPERATION AND MAINTENANCE COSTS OF CERTAIN PUBLIC FACILITIES AND SERVICES OF THE DISTRICT AND ARE SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND OTHER LOCAL GOVERNMENTAL TAXES AND ASSESSMENTS AND ALL OTHER TAXES AND ASSESSMENTS PROVIDED FOR BY LAW. Statutory Framework

PROPOSED GROVE RESORT CDD Project Overview

A'Yf* SO SURFARI WATER PARK LONGBOARD BAR & GRILL FULL-SERVICE LOBBY PICKINGS MARKET HOOPLA GAME ROOM MEETING ROOMS ESCAPE SPA ZEST LOUNGE VALENCIA RESTAURANT THE SPRINGS RESORT POOLS THE SPRINGS BAR & GRILL GROVE

A SURFARI POOL LONGBOARD BAR & GRILL BEACH ENTRY SURF SIMULATOR CHILDREN’S PLAY POOL SURFARI LAZY RIVER

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Landscape Features  Cascading Waterfalls  Bridges Over Lagoons with Floating Fountains Waterpark Features  Wave simulator for Surf on Land  Lagoon Pool with Sandy Beach  Water slides and various interactive water features  Kiddie Pool  Lazy River  Pavilions, Gazebos, and Cabanas Recreation Area/Clubhouse  Fitness Center with Juice Bar Entrance Road to Waterpark Project Overview

Acres of land Will include:  890 Resort Units  Recreational Amenities −Fitness Center, Water Park, Gazebos, Pavilions, and Cabanas  Supporting Infrastructure −Landscaping, Hardscaping, Signage, Irrigation, and Lighting Project Overview

Estimated Bond Funding:  $13,320,000 Funded Capitol Improvements  Recreation Facilities $8,700,000  Landscaping, Hardscaping, $1,350,000 Irrigation, and Lighting  Estimated Professional Fees $1,005,000 Permitting & Contingency

 Stable financing source for new projects.  Allows new off-site public infrastructure to be built without the use of County funds or bonding capacity.  No financial burden on landowners outside of the CDD.  Increased tax base for the County.  More stable maintenance entity to ensure continuation of project long after the developer is gone.  Ensures that growth pays for itself. Benefits to the County Project Overview

 CDD debt is never disclosed in the County’s financial statements (unlike Tax Increment Financing).  County retains all zoning and permitting authority.  No current or future landowners outside the boundaries of the CDD will ever be assessed by the CDD.  No administrative costs to the County.  All assessments must be disclosed to prospective buyers. Protections for the County Project Overview

 CDDs help ensure that growth pays for itself.  Takes burden off local government.  Increased tax base for the City/County.  No financial burden on residents outside of the CDD.  Excellent long-term maintenance entity as compared to HOAs.  Governmental accountability (open meetings, public records, etc.). Summary… Project Overview

Questions? CDD Work Session

On a project by project basis, Orange County may consider the feasibility and suitability of Community Development Districts, Educational Facilities Benefit Districts, special districts, tax increment financing or other such financing mechanisms as deemed appropriate by the County, to serve as an alternative financing technique for the provision of infrastructure and public services. The County may also adopt appropriate application fees (including reimbursement of County expenses) for processing and reviewing requests for such financing mechanisms. Such mechanism may be considered for, but no limited to, public recreation facilities, public schools, mass transit facilities, and transportation networks, including, but not limited to, roads and other related infrastructure projects. However, such financing mechanisms shall not be considered for approval if they provide for the funding of infrastructure that would otherwise be funded through traditional land development regulations (i.e. subdivision regulations, etc.) unless the Board of County Commissioners expressly permits such and exception. (Amended 3/99, Ord ; Amended 06/06, Ord ) CDD Work Session