The District is authorized to borrow funds for up to two years. The Board has determined that it is in the best interests of the community to move forward now with the purchase of the Country Club, recreational facilities, and the +/- 100 acres of land. The District has published a request for proposal and expects to select an institutional investor for its 2-Year Bond Anticipation Notes (“BAN”) in the amount of $23,100,000 in June.
The BAN would be redeemed from the proceeds of the District’s proposed future bond issue. The BAN is fully secured by special assessments already approved and in place. Interest on the BANs will be capitalized and the principal due in one lump sum in two-years. Therefore, no assessments would be levied or collected to service the BAN.
As discussed under long term financing, the District is confident that it will be able to sell its long-term bonds to redeem the BAN. However, if for some reason this becomes impossible, then the BAN becomes due and a one-time assessment averaging about $20,000 per home would become due and payable.
Short Term Financing for District Operations and to Pay Legal Expenses
Mr. Richard Garrett, a resident of the District, has sued the District alleging that its formation by Manatee County is illegal. The District’s Council is of the opinion that the suit is without merit. However, the suit has imposed significant costs upon the District to defend itself and by delaying the acquisition of the Country Club, which would have provided the funding for District operations.
As a result, the Board has imposed a one-time, special assessment of $1,000 per home to fund legal expenses and district operations. Since the lawsuit has delayed the acquisition of the Club, the planned assessments averaging $1,200 per home per year, which were to begin in November 2019, have been delayed. So, the District will only be assessing for its operating and litigation costs at the $1,000 per home rate. This one-time special assessment will be billed to each homeowner directly and will not be collected along with all other property taxes. These one-time, directly billed, assessments are enforceable by the District through foreclosure. So, their payment is mandatory for all homeowners.
Finally, it is important to point out that these assessments of $1,000 per homeowner would not have been necessary but for Mr. Garrett’s lawsuit.
 Richard Holtum Garrett v. University Park Recreation District, Case No.: 2019-CA-512