|
|
|
||||||||||||||||||||||
|
CDDs
(Community Development Districts) are special purpose taxing and residential
development districts created in 1980 through passage of Chapter190, Florida
State Statutes. The
purpose of the Chapter 190 law was and is to promote housing development
through use of tax-free bonds that developers use to lower the cost of homes
in these residential communities. Developers
issue bonds to pay for initial infrastructure (clearing, grading, sewers,
roads, water supply, utilities, etc.). The
original construction bonds are assigned to the CDD’s initial residents and
eventually paid off by residents over periods of 10-30 years. The
main advantage of CDDs is that housing is initially less expensive since major
development costs are deferred and are financed through the use of tax-free
bonds. However, the
main disadvantage of CDDs is that housing costs are inflated over time as the
bonds need to be repaid by residents. Common
property owned by CDDs is tax-exempt as government-owned property.
because
developments that might otherwise not be built are in fact built because of
the tax incentives and pricing advantages.
Property tax revenues are eventually higher than would otherwise be the
case since the developments are, in fact, built. Residents like the Chapter 190 law because the initial buy-in cost of a house often appears lower than otherwise would be the case. This is because initial infrastructure and facilities costs are deferred and not part of the initial house purchase price. Furthermore,
residents frequently do not realize that attractive common facilities are
not owned initially by a CDD development and will have to be purchased
eventually by the residents from the developer, often at inflated prices,
thus increasing house prices. In
most cases, residential CDDs are successful.
The initial government of supervisors appointed by the developer will
eventually give way to those elected by the residents.
Residents will then have the final word on all operating issues and
any further development of the community.
Residents will also have the opportunity to replace the CDD form of
government with a municipal form of government at a special election several
years into the life of the CDD. In
these many ways, the CDD format can function well over the years. Concept
Often Does Not Work Well - Unfortunately, developers have sometimes
perverted the concept of the Chapter 190 law and turned it to their
advantage at the expense of the residents. How
do they do this? First,
developers maintain control of the major decision-making mechanism in CDDs
though unusual maneuvers and formation of special CDD districts.
These maneuvers allow developers to effectively make all the major
decisions in the CDDs, often for their own advantage. Residents are not allowed to make these major decisions. Second,
developers appoint their own hand-picked board supervisors on these special
CDD boards. These supervisors
are often friends, business associates, or employees of the developer. Residents never have the opportunity to elect these
supervisors who make all the major decisions, mostly at the direction of and
often for the benefit of the developer. Third,
developers appoint administrators, without regard for the wishes of
residents, who represent developer views and who often ignore the needs and
interests of residents. Fourth,
if a developer’s initial plans for CDD revenues do not eventually
materialize, residents may be assessed further for operating expenses.
For example, several CDDs in Florida, expecting integrated golf
course revenues to pay for substantial CDD operating expenses, had recourse
against residents when optimistic golf revenue plans failed to materialize. Fifth,
developers use special appraisal techniques, approved and accepted by their
hand-picked boards, to sell common properties back to the residents in the
CDDs, often at grossly inflated prices.
Residents may initially buy into the development not realizing that
common properties are not owned by the development, and that they, the
residents, will have to eventually buy back these facilities at inflated
prices. Some residents complain
that they paid a higher price for their lot and house believing that the
cost of common property was built into the higher prices.
Then they feel like they are forced to pay again to purchase common
property a second time. Sixth,
a variety of lawyers, accountants, consultants, etc., often work for
combinations of developers, county governments, CDD boards, etc., in ways
that suggest conflict-of-interest problems.
However, the Chapter 190 law effectively exempts these operatives
from state conflict-of-interest laws. The
losers here are often residents who end up on the wrong side of the
conflict-of-interest issue and have no advocate for their interests. Orlando
Sentinel Articles - The Orlando Sentinel published an award-wining
series of articles on CDD problems in October, 2000.
(These are still available on the Orlando Sentinel web site in the
archives section for a small fee.) The
key article in the series was entitled “Top Dollar For Plain Old Stuff.”
It explained the series of deals here in The Villages from 1996 to
1999 involving an $84 million payment for $8.8 in real property. The
$8.8 million value was determined by appraisers in Lake and Sumter counties. An “income-approach” appraisal method, however, was used
rather then a “market-based” appraisal technique for the sale
transaction. The Sentinel said
that the economic consultant who devised the appraisal technique worked for
both The Villages developer (seller) and the VCCDD (buyer) in this
transaction. Tax-free
bonds valued at $84 million were issued to make the payment to the
developer. These bonds will be repaid over 20-30 years from the
“maintenance fees” paid by residents.
Although it was not certain that monthly maintenance fees could be
used for debt service for the purchase of common properties, the purchase
was approved by CDD supervisors hand-picked by the developer.
Residents had no say about whether to accept the deal or assume the
debt that they are obligated to repay.
Many residents now view this as an example of “Taxation Without
Representation.” The
Sentinel also pointed out that the University of Florida urban planning
professor, who wrote some of the original 1980 law, said that the goals of
the law are still worthwhile; but that some of the abuses by developers
suggest that major portions of the law need to be completely revised.
Furthermore,
a Volusia County attorney, who is both a lawyer and a developer, has said
that CDDs are a means of “legalized land fraud.” Summary
- In summary, CDDs can be a worthwhile form of local government with many
advantages for the residents. However,
some developers have taken advantage of the system and pervert the concept for
their own advantage. Residents
in CDDs need to ask questions, be involved, and study how their government
works. Often these CDD problems
flourish because residents are apathetic and literally allow the problems to
persist due to their “I don’t want to get involved” attitude.
Apathy is the fuel that can turn CDDs into resident rip-offs. *********************************************************************************************** Thanks to Mr. Jan Bergemann, President of Cyber Citizens For Justice, Inc., (CCFJ) for his input
Below
is the text of a letter sent in early April by the POA president to the
directors of LRMC regarding the Villages Regional Hospital: Dear
LRMC Director: The
April, 2005, issue of the POA Bulletin is enclosed. Please
note the first page story on the resignation of Mr. Wooten from the LRMC board. We at the POA view his departure as a positive step toward
resolving the expansion issue for the Villages Regional Hospital.
We are hopeful that the board will now be able to move forward and start
the expansion. We believe that LRMC
is able to proceed with the financing on its own account and without the
hospital tax. Please
also remember the Bulletin story from last month regarding the unused LRMC
hospital facility on the east side of highway 27/441.
We think that facility can and should be used as an urgent care facility
to take the load off the emergency room at TVRH.
We would urge the board to consider making that happen. I
have also enclosed a copy of the newly-printed POA brochure.
This may serve to explain the goals, objectives, and operations of the
POA in greater detail. Please
contact me directly if you have any questions or comments. Sincerely, Joe
Gorman President With
the announcement of the super Wal-Mart being built on the western edge of The
Villages on highway 466, we now see how shortsighted it was to place the two new
schools on highway 466. The
highway appears destined to be a major commercial thoroughfare with a variety of
businesses including banks, restaurants, supermarkets, strip malls, gas
stations, drug stores, etc., up and down the highway. Traffic
around every one of these businesses will have to observe the bottleneck of
school speed zones and daily school bus runs during the week. Wouldn’t
it have been better if the schools had been placed on some of the more rural
land north of highway 466? Then
we would have had more opportunities to build attractive business buildings up
and down highway 466. And, these
business buildings would be property-tax-payers, not tax-exempt schools. Well,
what’s done is done. But, let’s
learn from this experience. Tax-exempt
operations should not go onto prime real estate property where tax-paying
businesses can be placed. The
Sumter Landing Community Development District (SLCDD) just announced plans to
issue $275 million in bonds to purchase common facilities in the portion of
The Villages south of highway 466. This
includes residential CDDs 5, 6, 7, and 8. The
proceeds of the bonds will allow the SLCDD to purchase from The Villages
developer a variety of assets including two water utilities and various
recreational facilities. Best
bets for the recreational facilities to be purchased include the Pimlico
Recreation center, with its three executive golf courses, various guard and
entry stations, various pumping stations, several postal stations, etc.
The
SLCDD supervisors, all business associates, employees, or friends of the
developer, will make the final decision in this transaction with the developer. Residents
will not be able to approve the transaction or vote to accept the debt repayment
for which they will be obligated. The
bonds will be repaid out of the monthly maintenance fee that should be used for
maintenance and administration expenses. Similar
transactions north of highway 466 in the VCCDD administration area have amounted
to over $400 million since 1992. About
60% of the Monthly Amenity Fees paid by residents in the VCCDD area north of
highway 466 is now used for debt service rather than maintenance and
administration. The
estimate is that these transaction in the SLCDD area will eventually top $1
billion. The
VHA has a bulletin board in the Paradise Center on the west wall of the
auditorium building. A newspaper
headline displayed there says: “Remember to Register to Vote.” This
is admirable, patriotic advice. Too bad the VHA doesn’t practice what it
preaches. Take,
for example, the election of the president of the VHA.
If you are a member of the VHA, you can’t directly vote for the
president. The president is
selected/appointed by the at-large members of the board of directors and the
membership has no say in the matter. It
doesn’t seem that it would be worthwhile for the membership to register to
vote here since the VHA hierarchy doesn’t trust the membership to elect its
president. Take
another example, the election in The Villages of the supervisors of the central
district CDDs, the VCCDD and the SLCDD. Residents
of The Villages are not allowed to elect the supervisors who make all of the big
money decisions in The Villages. Actually,
these supervisors are in effect appointed by the developer of The Villages and
Villages residents have no say in the
matter. It
doesn’t seem that it would be worthwhile for Villages residents to register to
vote for these supervisors either when they would not be allowed to vote for
them. Villagers can register to
vote for the president of the U. S., the Florida governor, and U.S. senators and
representatives. But, they can’t
register to vote for the VCCDD or the SLCDD officials. The
state of Florida does not allow convicted felons to vote in elections. The
Villages does not allow its residents to vote in VCCDD or SLCDD elections.
Isn’t The Villages treating residents just like felons on this issue? If
the VHA really believed in Residents’ Rights and was interested in standing
for the best interests of residents, it would allow its full membership to vote
for its officers (as does the POA) and it would join the POA in calling for the
popular election of the VCCDD and SLCCD supervisors. So,
it seems like we have more hypocrisy from the VHA on this matter of voting. Perhaps it should take down the piece of paper on the
Paradise Center bulletin board. It obviously doesn’t believe that patriotic
rhetoric. This
is really too bad – the VHA could be a respected and significant force in the
effort to promote Residents’ Rights in The Villages – too bad it isn’t. The
internet search engine Google is amazing in what it can find. If
you go to the Google main page and type in “VHA Villages Florida” you will
get search results in a flash. Guess
what we got when we went looking for articles on the VHA: The
first two entries listed past POA Bulletin articles that mentioned the VHA.
There were no articles in the top ten results for the VHA per se – only
POA source references. It
looks like Google is saying that if you want information about the VHA, you have
to go to the POA Bulletin. If
you were wondering what a search for “POA Villages Florida” returns, it
shows that four of the top ten returns actually reference the POA (no reference
to the VHA). And, the main page of the POA web site, poa4us.org, is
identified. Looks
like Google really knows what it is talking about! The
POA Bulletin lists ideas submitted by residents describing what they would like
to see in The Villages. This is
your opportunity to tell us what you want.
This could be a new feature or amenity; or a fix-up; or whatever. Just
send us a note via email or snail mail. Please
include your name in case we have to verify your comments, but we won’t
publish names in these short paragraphs of wants. We
can’t guarantee results; but, we can at least publicize these various issues
and wants. New
this month: 4.
Traffic Light - We badly need a traffic light at the intersection
of Morse Blvd. and San Marino Drive. Carry
forward from previous Bulletins: 1.
Path To Wal-Mart - We need a cart path established that would
allow Villagers to go to Wal-Mart by golf cart. 2.
Christmas Parade - Please bring back the Christmas Parade on the Spanish
Springs Square. 3.
Post Offices - Please get auxiliary post office stations in Southern
Trace area and the Mulberry Grove Shopping Center where packages could be
mailed.
POA
members should have received the 2005 membership renewal letter by now.
We would ask all members to respond with their renewals if they are
satisfied with how the POA officers and directors are pursuing Residents’
Rights on your behalf. You
can either use the form enclosed with the renewal letter or the form in this
issue of the Bulletin on page 7. Be
sure to include your email address, if you have one, as we hope to use this for
future communications. Memberships
run annually from January 1st to December 31st.
Dues are $6.00 per household and cover all residents in the household.
Any additional support you can provide for your POA will be greatly
appreciated. If
you enclose a stamped, self-addressed envelope with your renewal form and check,
we will mail your card back to you. If
you don’t enclose a stamped, self-addressed envelope, we will hold your card
for pick-up at one of our monthly membership meetings. Remember
that you need your 2005 card to take advantage of various discounts in our
Discount Partner Program (see the Bulletin’s page 6 or the POA web site for
details). Our
Bulletin printing and distribution expenses will increase by about $3,000-$5,000
this year as we expand our distribution into the newer areas of Marion and
Sumter Counties. So, it is vitally
important for you to support our activities on your behalf. This is really important and we need your support. Thanks
again for your assistance and support for your POA. Last
month we reported an informal survey of about 260 Villagers regarding their
interest in returning the annual Lions Christmas Parade to the Spanish Springs
town square. That
initial survey was done in three small groups totaling 260 Villagers. This month
the impromptu survey was done in an additional five groups totaling another 631
Villagers. When
the 891 grand total Villagers were asked if they supported the return of the
Lions Christmas Parade and the Christmas decorations displayed in previous
years, all 891 people responded “yes.”
Not one voted “no” or “bah humbug” in the entire group. There
is no doubt that Villagers want the Christmas Parade returned this year.
The 2005 Christmas Parade should start in The Spanish Springs Town Square
and join with Sumter Landing in true Christmas spirit. Actually,
we were encouraged to hear at an April VCCDD meeting that Mr. Pete Wahl was
planning to talk with the Lions Club in the hopes of bringing back the Christmas
Parade. Sounds good! OK, Mr. Wahl, Get It Done, Bring Back Our Christmas Parade! A
new television show has debuted and is called “CSI - The Villages.”
In the premier episode, the CSI team investigates the theft of five
versions of the “Gone With the Wind” book from the lobby of the Savannah
Center. Extensive forensic,
pathology, and geriatric evidence was obtained from various tables and
bookshelves in the lobby. The CSI
team is promising an extensive investigation and is working with the FBI on
fingerprint analysis. In
the meantime, the VCCDD decided to capitalize on the fact that the resident’s
computer facility is located in the Savannah Center.
A computer terminal was set up outside the facility’s room and was
programmed to display the entire GWTW book in large type format for the reading
pleasure of the residents. Unfortunately,
the computer was stolen on the first day it was available.
April
Fool’s Revisited (Don’t Believe Any of This) Cheers
- To Don Lynn and his army of AARP tax advisors who did such a great job of
helping Villagers during this last tax season.
Thanks, Don -- you and your staff are super heroes for helping Villagers
with taxes. Jeers
- To the SLCDD supervisors for planning to spend $275 million to purchase common
property from the developer without
the approval of residents. Shame!
Shame! Why not have a referendum on
these purchases like we used to have back home? Jeers/Cheers
- To the golf division for hole #6 on Pelican executive golf course.
Gollieee, that’s a difficult hole!!
Jeers
- To The Villages Regional Hospital for not yet using the potential Urgent Care
Center on the east side of highway 441/27.
What does it take to make the point that the west side ER is inundated
with minor or questionable emergencies that could easily be treated in an urgent
care facility in the east side building? Cheers
- To the “Chicago” play production in the Concert Series at the Savannah
Center. That was top-notch.
We need more performances like that. Jeers
- To the El Santiago restaurant for high prices and disappointing food.
A lunchtime burger with ice tea and a tip can cost $10.00.
And, burger patties look to be several hours old and buns are stale.
Restaurants in The Villages should have learned the lesson of not taking
residents for granted. Cheers
- To the POA for its new brochure about its goals and activities.
Call for a copy. The
Chula Vista Club, popular with many residents over the last twelve years,
has been closed by its operator. The
club had provided a place for Villagers to eat, dance and to have a drink or
two in a relaxing atmosphere and to meet many friendly people. The
long-time rumor has been that the developer decided to increase the lease
charge for the club to an unrealistic level, thus forcing it out of
business. This
looks like the same thing that happened to the Silverlake Club – charge
higher rents, force it out of business, convert it into a pool hall, then sell
the building to the VCCDD at an inflated price. Why
has the Chula Vista Club closed? Will
it open again? Will the Chula
Vista Club, like the Silver Lake Club, be closed forever as a club we all
knew? The
POA certainly believes the VCCDD and the developer owe residents an answer as
to what did happen and what will happen to the Chula Vista club. We
still have the position open for an advertising manager to help sell advertising
for the POA Bulletin. This is a
part-time position with a generous commission.
You can work your own hours contacting local businesses about advertising
in the Bulletin. Previous ad
selling experience would be helpful but not necessary.
Please call Joe Gorman (259-0999) for details about how you can help the
POA and also make some money for yourself.
If
your group or organization is looking for a speaker at one of your meetings, why
not consider having a POA speaker in for a 15 minute presentation on the POA,
its mission and goals, and the Residents’ Bill of Rights. This
is a good opportunity to learn more about the POA and how it represents the best
interests of residents. Our standard speaker fee of one cup of coffee (or a donut) will apply. Call Joe Gorman at 259-0999 for details. Contrary
to popular belief, Mother's Day was not conceived and fine-tuned in the
boardroom of Hallmark. The
earliest tributes to mothers date back to the annual spring festival the
Greeks dedicated to Rhea, the mother of many deities, and to the offerings
ancient Romans made to their Great Mother of Gods, Cybele.
Christians celebrated this festival on the fourth Sunday in Lent in
honor of Mary, mother of Christ. In
England this holiday was expanded to include all mothers and was called
Mothering Sunday. In
the United States, Mother's Day started nearly 150 years ago, when Anna Jarvis,
an Appalachian homemaker, organized a day to raise awareness of poor health
conditions in her community, a cause she believed would be best advocated by
mothers. She called it “Mother's
Work Day.” Fifteen
years later, Julia Ward Howe, a Boston poet, pacifist, suffragist, and author of
the lyrics to the “Battle Hymn of the Republic,” organized a day encouraging
mothers to rally for peace, since she believed they bore the loss of human life
more harshly than anyone else. In
1905 when Anna Jarvis died, her daughter, also named Anna, began a campaign to
memorialize the life work of her mother. Legend
has it that young Anna remembered a Sunday school lesson that her mother gave in
which she said, “I hope and pray that someone, sometime, will found a memorial
mother's day. There are many days
for men, but none for mothers.” Anna
began to lobby prominent businessmen like John Wannamaker, and politicians
including Presidents Taft and Roosevelt to support her campaign to create a
special day to honor mothers. At
one of the first services organized to celebrate Anna's mother in 1908, at her
church in West Virginia, Anna handed out her mother's favorite flower, the white
carnation. Five years later, the
House of Representatives adopted a resolution calling for officials of the
federal government to wear white carnations on Mother's Day. In 1914 Anna's hard work paid off when Woodrow Wilson signed
a bill recognizing Mother's Day as a national holiday. At
first, people observed Mother's Day by attending church, writing letters to
their mothers, and eventually, by sending cards, presents, and flowers.
With the increasing gift-giving activity associated with Mother's Day,
Anna Jarvis became enraged. She
believed that the day's sentiment was being sacrificed at the expense of greed
and profit. In 1923 she filed a
lawsuit to stop a Mother's Day festival, and was even arrested for disturbing
the peace at a convention selling carnations on Mother’s Day. Before her death in 1948, Jarvis is said to have confessed
that she regretted ever starting the mother's day tradition. Despite
Jarvis's misgivings, Mother's Day has flourished in the United States. In fact,
the second Sunday of May has become the most popular day of the year to dine
out, and telephone lines record their highest traffic, as sons and daughters
everywhere take advantage of this day to honor and to express appreciation of
their mothers. If
you see that the POA Bulletin and either the Lady Lake Magazine or the Village
Spectator, enclosed in a single plastic bag, are delivered but left on the
driveway or the lawn of an unoccupied house, or where people are away for a few
days, please be a good neighbor and remove these from the driveway or the lawn.
Either dispose of these papers or hold them for your neighbor’s return.
Papers
left for several days in a driveway might signal an unoccupied house.
Our delivery service tries to avoid tossing the papers on these
driveways, but it is not always evident which houses are unoccupied.
So, please help us avoid these situations. Thanks in advance for your help on this.
Third
Wednesday of the Month – 7:00 p.m. Main
Auditorium – Paradise Recreation Center “Living
Wills and Medical Proxy Statements” Explained
by Kevin Sentner Board
Certified Attorney in
Wills, Trusts and Estates COFFEE
AND DONUTS FOR
ALL AFTER THE MEETING ALL
RESIDENTS WELCOME – COME AND JOIN US
|
| BACK TO POA BULLETIN COVER PAGE |
