"A legislatively-sanctioned license to steal"

From a powerful story from Suncoast Searchlight:

Dozens of new local governments, led not by mayors or town managers but instead by businesses profiting from those who live there, have sprouted up across the Suncoast along with the sprawling new housing communities they bring.

The real estate developers behind these independent special districts use their government status to float multimillion-dollar, tax-free bonds to finance construction and dictate how homeowners pay it back — all with no reins on the spending, a Suncoast Searchlight investigation has found.

These districts now span the entire region — from Parrish’s 40-acre Rye Crossing district in northern Manatee County to the more than 12,000 acres at the West Villages district in southern Sarasota County.

 Community development districts “are a legislatively-sanctioned license to steal” . . . 

“The bottom line on CDDs, if you look at them, they’re a powderkeg for the homeowner, who is paying for the infrastructure,” (developer Hugh) Culverhouse said. “The developer wants to over-leverage his property and put none of his own money into it … The joke of it is, the person who is buying is paying what I should have paid (as the developer).

 

Suncoast Searchlight: Power and profit: Developers gained government status, then got bonds to build big

After reading the story, see more information on CDDs below from Susan Schoettle, a former Sarasota County attorney who is with SCAN:

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From Susan Schoettle: 

This Searchlight article offers important information about who pays for development. 

Developers have a method to circumvent control by publicly elected local governments and by residents. And who pays you ask? Certainly not the developers. Using Community Development Districts and special districts, developers can bond the costs of infrastructure with repayment through special assessments (on your property tax bill) paid by all the housing purchasers in the district area for 30 years or more. 

The districts are controlled by people hand-picked by the developer - with no real input from the new residents. Local governments like Sarasota County may think it's a great deal because the County reduces its costs and responsibilities for infrastructure. But with that, they cede authority and control to the developers leaving residents with no effective input. 

Why would the District Board listen to residents who can't even vote for the District supervisors/commissioners? They don't. So, major annual special assessments placed on the property tax bill add significant annual costs for residents. I doubt that the price of these homes is reduced in recognition of these additional costs paid directly by residents. No, these houses will sell at market or higher rates - after buyers are told the District will keep things extra nice. 

So what about "affordable housing" within these Districts? In Sarasota County, developers can obtain additional density if they provide "affordable housing." Are the increased annual costs placed on the homeowner evaluated for whether a home should really qualify as "affordable"? No they aren't - but they should be.

Brief Q & A with Susan:

Tom M: Do the elected officials have to live within or near the CDD's they run?

Susan S: No.  Because when they are created, there is nowhere to live within the district because the development has not yet begun.  The voters that "elect" the supervisors are the land owners (developers) and vote by percentage of the land owned. There are different criteria for when elected positions have to be made publicly elected positions.  This just happened with one seat on the LWR Stewardship District in the past 1 - 2 years. All other seats are still determined by the developer.

Tom M: Can CDD's be of any size, or do they need to be large like Wellen Park and LWR?

Susan S: There may be a statutory minimum but maybe not. It would probably depend more on the financial analysis of bonding costs, enough future assessment payors to make a reliable pledge to repay the debt. etc.

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North Port resident Victor Dobrin has written a letter and urges all to do so:

URGENT: HB4061 threatens our community's future. Please consider writing to our Governor now to demand action and protect local control.

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From: Victor Dobrin

Date: Fri, May 2, 2025 at 12:17 PM

Subject: Please veto HB4061

To: <governorron.desantis@eog.myflorida.com>

Dear Governor DeSantis,

I am writing to express my opposition and deep concern regarding HB4061 – a legislation that is not only unconstitutional but also artificially alters the democratic governance of the West Villages Improvement District (WVID). The bill unreasonably delays the transfer of control to homeowners, maintaining its control indefinitely by the master developer and effectively guaranteeing at least one seat to Mattamy Homes in perpetuity. This measure entrenches private developer influence at the expense of fair and accountable local oversight.

Recent actions in Gran Paradiso further illustrate the dangers of such unchecked power. The deliberate cutting of irrigation water has rendered an irrigation infrastructure – worth millions of dollars – virtually worthless. This abuse devalues local properties while homeowners continue to shoulder the enormous burden of repaying bonds issued by the district, for this expensive irrigation system.

Your decisive stand against the overly powerful Disney district in Orlando set a vital precedent by prioritizing taxpayer protection and sustainable governance. In that same spirit, I respectfully urge you to exercise your authority and veto HB 4061 to safeguard our constitutional rights and ensure that local control is transferred back to the homeowners.

Thank you for considering this urgent request.

Veto this unconstitutional Bill.

Respectfully,

Victor Dobrin

A PETITION from the people of the West Villages: "The Master Developer continues to reign with unchecked power, blatantly ignoring legislative requirements to transition landowner Supervisor seats to those elected by the residents."