Article Courtesy
of The By Dennis Petrucelli
Published December 10, 2019
In 1980 Florida State Statute Chapter 190 became the
legislative authority for creating Community Development Districts allowing
developers a financing mechanism for continual growth without a burden being
placed on local government. Under Chapter 190, from 1992 to present, The
Villages of Lake Sumter, Inc (VLSI) has been rapidly expanding The Villages,
Florida, an advertised age fifty-five plus retirement community.
During this 28-year building period, and its continuing rapid expansion, many
have sought the answer to when the “build out” would end, or at least a
moratorium called on construction, owing to concerns associated with
overcrowding, including but not limited to, inadequate infrastructure, increase
need for landfills, congested highways and multi-modal pathways, crowded
restaurants and public squares, empty store shelves, a shortage in labor market,
a strain on the medical community, and other environmental and logistical
pressure affecting this community and surrounding area that compromise quality
of life. Further, another financial reality exists. Based on the latest
demographics, baby boomers whom far exceed that of Generation X in numbers, have
experts predicting that continued home building is going to lead to a housing
bust in just a few short years. However, the over-riding question county
residents should be demanding an answer to, is whether Florida’s Chapter 190
actually ever intended to allow an unelected developer to create and maintain a
potential monopoly and being allowed to passed it on in perpetuity?
Chapter 190 contains a residential age requirement wherein 80 percent of its
population has to be age 55+ while the remaining 20 percent may be below this
age but, not 19 years old or younger.
The Villages of Lake-Sumter, Inc. (VLSI) Marketing Department and its affiliated
companies, operating under Chapter 190 and marketing its product as an age 55+
retirement community made and makes a number of material representations such as
Deed Compliance, Covenants and Architectural requirements. VLSI also made and
makes material representation as to an Amenity Agreement, in exchange for the
purchase of a home, referred to as “buying The Villages Lifestyle”. It is
unknown if the continued expansion of The Villages interferes or seriously
impedes the ability of VLSI to effectively maintain the age requirements, or if
it delivers on these material representations? Also, unknown, is whether anyone
has maintained an accurate accounting of these vitally important legal
statistical requirements and material representations, or if in fact they are
actually enforceable, and if so, being enforced? Irrespective, VLSI has failed
to ever release a published public accounting of these vital and legal
statistics. Of equal importance and left open for serious legal consideration is
whether the act of renting a home or a room in a home legally qualifies as
“buying The Villages Lifestyle”?
The Villages Lake-Sumter, Inc. (VLSI) and its affiliated companies citing the
authority of Chapter 190, own or have financial influence over most of The
Villages commercial property, and thus appoint the “Board of Supervisors”, the
governing body of The Villages which retains all voting rights. VLSI and their
Board of Supervisors, in turn, appoints a District Manager who is responsible
for the Community Development Districts day to day business activities. By its
practices, and through Chapter 190, policy, contractual agreements of adhesion,
political appointees, and its other centers of influence, control of The
Villages and county appears to remain in the hands of VLSI. To capture the mood
of county residents is to ascribe the sobriquet, “The Villages-opoly.”
To further complicate and confuse the concern for potential monopolistic
practices under Chapter 190, VLSI in 2004 created “One Sumter” which places all
five Sumter county commissioners under its’ roof. One Sumter’s polices,
practices and activities, at minimum, create “an appearance of conflicts of
interest.”Adding support concerning this potential monopolistic narrative, is
the fact that VLSI political influence does not end at the county lines. Given
VLSI is a large political donor its political influence in the past has reached
out to both the White House and the Florida governor’s mansion. Further, VLSI
has a near monopoly on all The Village’s news outlets (print, audio, optics) and
also funds the Villages Homeowners Association all of which seem to remain
silent or suppress criticisms of VLSI’s actions but, promote its propaganda
rendering fair and balanced reporting moot.
Sumter County residents continue to express outrage with a recent property tax
increase of 25 percent. The ubiquitous “Everyone knows” meaning the big secret
isn’t a secret at all has application here. Residents immediately pondered a
potential quid pro quo, wherein the five county commissioners (One Sumter) who
owe their positions of authority to VLSI, and perhaps prime business
opportunities, provided VLSI an” unusual gift” of a transportation impact fee of
only $901 for each new home it builds while normally an individual builder pays
a hefty $2,600. Ostensibly, residents ponder whether the county commissioners
unloaded VLSI’s financial responsibility to ambitiously expand its building
opportunities onto all Sumter County taxpayers in the form of a 25% property tax
increase. This situation mirrors others wherein VLSI sells or transfers assets
to the District (residents). This begs two questions (1) How are the VLSI’s
potential liabilities be passed along to residents? (2) And why aren’t governing
voting rights transferred to residents as assets are purchased by the Districts?
Ostensibly, given the extent of VLSI’s influence and substantial involvement,
both politically and financially in supporting certain political candidates in
this community and surrounding area, has created over the years, open discussion
pertaining to the process. Ostensibly voters ask, whom do these public servants
represent and do they speak for all taxpayers? And, while the perception of
favored political candidates by VLSI may not be true, if true, does this
situation equate to being taxed without true representation?
It is reasonable and understandable that Chapter 190 was created, in part, to
generate new taxes for local and state coffers. However, do new taxes along with
potential campaign donation justify state and local politicians ignoring the
potential monopolistic tendencies created by Chapter 190 existence? I believe
they do not. So has the state of Florida permitted a potential monopolistic
undertaking to go unchecked or unchallenged? Recall, that VLSI’s activities had
not escaped the attention of the federal government as the Department of
Treasury under its filings of Notices of Proposed Issues dated January 20, 2009,
as respects The Villages Bond Issue of March 31, 2003 undertook an evaluation of
VLSI’s practices.
As previously stated, the over-riding question is the legislative intent in
enacting Chapter 190 which would necessitate the State of Florida to undertake a
review to clarify the following questions as respect Chapter 190. (1) Chapter
190 cites a” financing mechanism” only as an instrument, for continual growth
without a burden being placed on local government. What exactly does that mean?
(2) What is the legitimate scope of authority and control extended to any
developer of residential properties under Chapter 190? (3) What are the
allowable time limits that are appropriate before any developer of residential
properties must legally cede its control to independent and interested parties
under Chapter 190? (4) Define, as it pertains to the nature of financial and
commercial activities, by any developer of residential properties, the legal
differences between permitted business practices and exploitation of a community
under Chapter 190?
I do not desire to misjudge VLSI or to besmirch its name nor intend my words to
devolve into synonyms of bad or evil. VLSI perceived dealings are outlined in
this letter solely because it is the only experience the majority of residents
in Lake, Sumter and Marion counties have had with residential building under the
legislative authority of Chapter 190.
So as to ensure clarity, the sole purpose of this letter refers back to the
aforementioned four fact questions pertaining to Florida’s State Statute Chapter
190, requiring both an official and legal interpretation as to the legislators
intended and expected end product in enacting this piece of legislation as it
applies to any developer of residential properties?
One effective manner in which voters can receive satisfaction and answers to any
of these questions is to elect county and state leaders, absent any appearance
of conflicts of interest, who they believe will, in fact, fairly represent all
county and state taxpayers, and who will be heard to address these concerns in
the halls of the State Capitol.
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