Court Acknowledges Settlement of the Garrett Lawsuits
On Monday Judge Nicholas took notice of the settlement of Mr. Garrett’s lawsuits, and he dismissed them. Many of the additional Plaintiffs who joined Mr. Garrett’s suits also withdrew. As per the settlement agreement, Mr. Garrett is working to have the others also drop their claims.
Court Sets September 16, 2019 Bond Validation Hearing
Judge Nicholas also accelerated the date for the bond validation hearing to September 16, 2019 at 8:30 AM in Courtroom 6-E in the Bradenton Judicial Center.
Settlement of the Lawsuits
Provides Big Benefits to District Residents
The settlement provides substantial monetary and intangible benefits to District Residents. The monetary benefits include the following:
- Seller has reduced the sales a price of $225,000 from $16,975,000 to $16,750,000.
- Seller agreed to waive the $46,000 monthly escalator clause producing immediate savings of $138,000 and total of $251,000 savings if the sale closes by December.
- The settlement will save the District $250,000 to $500,000 in additional legal expenses.
- The District will pay Mr. Garrett $160,000 to reimburse approximately 50% of his legal fees conditioned on: (i) a successful bond validation and (ii) purchase of the club and recreational facilities and land. The payment will be reduced by any costs the District incurs defending the bond validation by those who have been parties to the litigation.
- The settlement will allow the District to avoid issuing a bond anticipation note saving approximately $600,000.
- With the lawsuits settled the District can issue its long-term bonds at very favorable interest rates. This will provide in excess of $1,000,000 in additional proceeds that can be used for renovation and reserves.
The settlement also removes the cloud over the community which will not only relieve anxiety and promote harmony, but it will also result in higher home prices.
Collection of the $1,000 Special Assessment
for
Operations and Maintenance
The RD has collected $1,079,327 from 1,146 residents, of which 144 chose to pay in installments. This leaves 55 residents in arrears. The District has sent reminder notices to all those who have not yet paid their assessments. If you have not made your payment, please do so. The Board decided payments received by September 5, 2019 would be deemed as timely.
The Board directed staff to mail a late notice to those who have not paid their assessment. Late payments will be allowed until September 30, 2019. A late fee of $50 must be included in all late payments. Include your University Park address on the check so that we can identify which parcels have paid their assessment. Please make your check payable to: University Park Recreation District. Send your check to:
University Park Recreation District
12051 Corporate Blvd
Orlando, FL 32817
If you have any questions, please contact the District office: 407-723-5900.
If you have not paid your assessment, please take this opportunity to do so. Failure to pay an assessment will force the District to take collection actions.
Update on the Proposed Bond Anticipation Note (“BAN”) and/or a Bond Issue
Given the acceleration of the Bond validation process, the financing team is now focused on issuing Bonds. Fortunately, the progress drafting much of the offering statement for the BAN can also be used for a bond offering. With the litigation now behind us, the District has initiated the work to have the bonds insured or rated. This will result in the lowest possible interest rate on the bonds. We currently plan to present the financing documents to the RD at its September 13th meeting. This will position the RD to begin marketing its bonds and to meet the Seller’s deadline of November 22, 2019.
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Upcoming Meetings
Regular Meeting September 13 1:00 PM Lakeside Room
Workshop September 24 10:00 AM Card Room
Workshop TBD
Regular Meeting October 11 1:00 PM Lakeside Room
Workshop October 29 10:00 AM Card Room
Regular Meeting November 8 1:00 PM Lakeside Room
Workshop December 3 10:00 AM Card Room