RD Newsletter 5
Finances and Financing
There have been many inquiries about the provision in the Purchase and Sales (P&S) agreement calling for a $46,000 per month escalation in the purchase price if the deal isn’t completed by June 14, 2019. Our original agreement was scheduled for completion by February 28, 2019. The law suit filed by Richard Garrett has prevented the completion of financing and subsequent purchase.
Through negotiations with the sellers, an extension from February 28 until June 14, 2019 was agreed to that preserves the numerous benefits such as inventory and working capital from the pro shop and restaurant/bar. Any further delay in executing the agreement would trigger the escalation provision.
The current P&S agreement remains in effect until September 30, 2019 at which time either party can terminate this agreement. RD Board Members plan to engage in further discussions with the sellers regarding this provision as well as other issues such as the water due diligence segment of the agreement.
Short-Term Operating Loan
The RD has closed on the previously announced Short-Term Operating Loan for $350,000. This is for O&M expenses and to pay invoices that have accrued since the founding of the RD in August 2018. According to the RD Treasurer, most of this funding will be used by the July/August time frame.
Special One-Time Assessment for O&M, Legal Defense
The RD mailed notices to all UPRD property owners concerning a one-time, $1,000/home, special assessment to support ongoing O&M expenses and litigation costs related to defending the District in the law suit filed by Richard Garrett. This is necessary because the RD was unable to obtain a Bond (due to the litigation) which was required to complete the P&S; if this had been accomplished the revenues from the club would be sufficient to pay O&M and there would not be outstanding and future legal fees. The board will review this one-time special assessment on Friday, June 14, at 1:00 p.m. and, if approved, a formal public hearing will be scheduled with respect to this assessment. More information will be provided as we move forward.
Bond Anticipation Note Options Being Explored
District Manager Dr. Hank Fishkind, at the request of the Board, is exploring the range of options toward securing an acceptable “Bond Anticipation Note” for the purchase of UPCC. This would allow us to complete the purchase while the law suit continues in the courts. Once a satisfactory resolution of the current law suit is achieved the District would secure long term bonds to retire the note. This will be on the June 14th RD meeting agenda.
(1) The District has filed a motion for partial summary judgment to limit the issues to the actions of the Board of County Commissioners. As part of this motion there is a motion to stay and limit discovery related to the issues that the motion seeks to exclude. The motion is now confirmed to be heard on June 20.
(2) Mr. Garrett, through his attorneys, have indicated that he will be filing a motion for summary judgment; though, one has not been filed in this action as of yet. If it is filed prior to June 1, it may be heard on June 20.
(3) Mr. Garrett also seeks to have a motion to compel discovery and to consolidate this action with the bond validation action. These motions will be heard on June 20.
(4) On discovery, objections have been filed, but individuals and entities that have received subpoenas should file their own objections as well.
Bond Validation case:
(1) The court has given the District until June 20 to address legal issues in the bond validation hearing. Mr. Garrett has also filed a motion for summary judgment and a motion to consolidate.
(2) The Garrett summary judgment motion has four main arguments:
(a) Section 418.22, Fla. Stat. (Recreation District) does not grant the power to levy special assessments like the ones sought here. Essentially, the statute does not specifically say it, so therefore you cannot do it, even if the authorizing governmental body believes it necessary or useful to carry out its powers.
(b) Because some of the property is zoned commercial and residential use, the proceeds of the bond are not being used for a permitted purpose.
(c) There is no special benefit to the real property subject to the special assessment because the purchase of the recreation facilities does not add anything, and therefore the special assessment must fail.
(d) The apportionment of the special assessments is flawed because the report does not mention or include certain properties (the ones being acquired such as the country club property) and is therefore arbitrary since there is no evidence why they are excluded.
The District does not concur with Mr. Garrett’s arguments and does not believe they are well founded in fact or in law.
(3) The early August dates to complete any evidentiary portion of the hearing are not available on Garrett’s attorney’s calendar. It appears that the hearing likely will be set for early to mid-September dates.
Additional information pertaining to the Garrett case:
Subpoenas have been issued to all members of the Planning Committee, the RD Board of Supervisors, and all Neighborhood Chairs which require a significant time and effort to compile and produce the information that has been requested.
Other important information from the RD….
Board to Consider Term Extensions
Board discussed the option of extending the current Board terms to November, 2020. The charter allows for this option which would then provide for our next Board election to be deferred to November, 2020 and be part of the general election process. Assuming all current Board Members agreed to extending their terms, this provision would allow the existing Board to continue the process of resolving the current law suit and completing the purchase of UPCC. If an existing Board Member resigned their position any time thereafter the Board would select someone to fill their position until the next election cycle.
Getting the Information that You Want
We continue to work on more comprehensive methods to communicate with residents. New software has been installed on the web site to provide residents the capability of receiving timely information from the RD. As a government entity, we are not allowed to send you emails unless you specifically identify yourself and indicate that you want them. Therefore, you must “Opt-In” and you can do so by following these steps:
In the UPCC Newsletter there is a link to the RD web site. Simply click on that link.
You will see a Privacy Statement; you will need to agree to it
You will be asked to enter your email address, name, address, & phone number
You will get an email from the RD asking if you want to “Opt In” to receive RD Newsletters (and other emails), you will need to “Confirm” that you agree
Any communications from the RD is public information
Next Board Meeting
The next regularly scheduled RD meeting is June 14, 2019 at 1 PM. This is the place to be to get your specific questions answered and learn what is really happening. We all have busy lives, but honestly if you want to be heard, this is where to be.
As we approach Memorial Day, it is time to thank all of those incredible people who have sacrificed so much for the rest of us. A special Thank You to our UPCC residents who have served in the Military, Police and Armed Services, and the Fire and Rescue Squads.