Developer
of the Villages and
the VCCDD Defended
With
Faulty and Conflicted
Logic |
In the previous two issues of this Bulletin,
the POA has: (1) Called for a moratorium on further sales of facilities
by the developer to the VCCDD, and (2) Explained the monthly fee
and the portion of it that was being used to pay for these facility purchases.
In the Moratorium commentary, the Bulletin
made the points that: (1) Village residents are not allowed to approve
the facilities purchases or the assumption of debt by our government to
pay for the purchases, and (2) The prices are considerably inflated by
the use of the “income approach” appraisal technique. The commentary
concluded with the call for a moratorium on further purchases by the VCCDD
of facilities from the developer at this time.
In the Monthly Fee commentary, the Bulletin
made the points that: (1) Roughly $35.00 of the monthly fee was being used
for purposes other than maintenance, that is, for the purpose of paying
off the purchase of facilities, and (2) This goes beyond the
general understanding of many residents about what the monthly fee could
be used for and what was included in their house price at the time of purchase.
In both cases, Villages officials responded
to the POA articles with comments in either the VHA newsletter or the Daily
Sun. A summary of their comments and the POA response are given below:
On the moratorium issue, Vernon Gwynne,
supervisor of CDD # 1, commented in the VHA newsletter in October, 2002,
about sales by the developer of facilities to the VCCDD.
Mr. Gwynne questioned whether the VCCDD
has the “right and the authority” to purchase property – and concluded
that it does.
However, this is not the important point.
The issues are:
(1) Does the VCCDD have a potential conflict
of interests in making these purchases from the developer when its five
supervisors are either business associates or employees of the developer?
(2) Do residents have the ability to elect
these supervisors or are they appointed indefinitely by the developer?
(3) Are the prices paid documented as fair
and reasonable through a process of market appraisals of comparable properties,
or are the prices paid based on an “income approach” appraisal technique
that inflates the values?
The POA thinks that residents should have
the opportunity to vote for VCCDD supervisors, the price paid should be
appraised as fair and reasonable, and supervisors should not have potential
conflicts-of-interests.
If Mr. Gwynne would think about these points
in greater depth, he might see the inequity of the current situation.
For the second Bulletin story on the use
of the monthly fee, Mr. Pete Wahl, District Supervisor, responded in his
Pete’s Place column on October 10. Mr. Wahl started with a derogatory
comment about the “tabloid that is thrown on your driveway” rather than
referring to the POA Bulletin by name. Cheap shots like this aren’t appropriate.
He went on to use an analogy about buying
a $20,000 car for $5,000 in a mischaracterization of the POA position.
To set the record straight and overcome
Mr. Wahl’s faulty and self-serving logic, the analogy should have been
this:
Consider if you bought a car for $20,000
and then learned that the price of the engine was not included. Then
the seller tells you that you can buy the engine for another $5,000 paid
in installments over the next 20 years.
Then the seller tells you that you are
obligated to pay off his original startup expense bond at the rate of $1,500
per year.
Then the seller tells you that you are
obligated to pay off his extra operating expenses at an assessment rate
of $35.00 per month.
Then you learn that the government in which
this dealership resides wants you to pay off the bonds issues to pay for
the roads and utilities that were put in to service this dealership.
Mr. Wahl also questioned who wrote the
article. He should know better. The article was written by
the growing voice of the POA -- Villages residents who are dissatisfied
with a developer that they feel is unresponsive and by a district government
that they feel often ignores Residents’ Rights while it is indifferent
to the needs and interests of residents.
Another important issue here is why are
Mr. Gwynne and Mr. Wahl are defending the developer.
Shouldn’t the developer speak for himself?
Shouldn’t Mr. Gwynne as a CDD supervisor
speak for residents rather than defend the developer’s hand-picked VCCDD
supervisors?
Why does Mr. Wahl as the district supervisor
take the developer’s position rather than that of the residents?
The POA believes there are serious conflict-of-interests
issues involved here.
Supervisors and the district administrator
should represent residents and support issues important to residents.
Supervisors and the district administrator
should be guardians of Residents’ Rights and be responsive to the needs
and interests of residents.
Supervisors and the district administrator
should not be apologists for the developer.
The effort of both of these men to defend
the developer, at the expense of the residents, makes one seriously question
their objectivity and loyalties. |