Why is the Governmental Finance Corp. accepting the transfer and not the City Council?
The property is subject to six community development districts, which are called the Southern Grove Community Development Districts Nos. 1-6( the“ CDDs”). A CDD is an independent special district, created pursuant to, and existing under, the provisions of Chapter 190, Florida Statutes. A CDD offers a means of providing the financing and management of major infrastructure systems and services to support the development of new communities. A CDD is a unit of local government like a county or city, although it does not have the regulatory powers of a county or city.
The CDDs were established by Ordinance( No’ s 07-33 through 07-38) approved by the City Council on April 9, 2007 and amended Ordinance No. 09-68 enacted August 24, 2009. The Districts include within their boundaries the entire 3,605 acres of land within the Southern Grove DRI. Each CDD is governed by a five-member Board of Supervisors, elected initially by District landowners on a one vote to oneacre basis. Under Chapter 190, Florida Statutes, a governmental entity shall not be counted as a landowner, does not have voting rights and need not be notified of CDD proceedings. Given the financial purposes associated with the CDDs as they relate to the property, legal counsel has recommended that title to the property be taken by Port St. Lucie Governmental Finance Corporation to preserve voting rights under the CDDs. The Port St. Lucie Governmental Finance Corporations board is made up of the City Council.
When will the closing take place?
If the Governmental Finance Corp. formally approves the transfer at its meeting on June 25, the closing will be scheduled for June 29th.
Why is it recommended that the GFC accept 1,223 acres rather then the full 1,247 acres?
This reduction is the result of the exclusion of 2.63 acres being conveyed to the City seperately as part of a road right-of-way which provides access to the new City Electric Supply facitility and the surrounding area. It also excludes 21.66 acres at the Northeast corrner of Village Parkway, which is expected to be transferred in the future.
What are the closing costs and who will pay them?
Tradition Land Co. will be responsible for payment of:
• $ 1,200,000 toward 2017 outstanding RE Tax Bills,
• Recording costs and documentary stamp tax on the Deed and the Drainage Easement,
• The cost to record the Post-Closing Agreement and Assignment and Assumption of Development Agreement;
• It’ s attorneys’ fees.
The Governmental Finance Corp. will be responsible for payment of:
• 2017 outstanding RE Tax bills, minus the $ 1.2 million payment from Tradition Land Co. That means the City is responsible for about $ 1 million for the 2017 taxes.
• The cost of the Investigations( staff time)
• The costs to issue and to obtain the title commitment or any survey
• It’ s attorneys’ fees