HomeMy WebLinkAboutVI(E) Discussion/ Action Re: Developers Agreements For Water/ Sewer CapacityFOLEY & LARDNER
A T T O R N E Y S A T L A W
CHICAGO
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JACKSONVILLE
ORLANDO, FLORIDA 32802-2193
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ORLANDO, FLORIDA 32801-2386
MILWAUKEE
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WRITER'S DIRECT LINE
MEMORANDUM
AGENDA 1-21-97
Item,VI E
SAN DIEGO
SAN FRANCISCO
TALLAHASSEE
TAMPA
WASHINGTON D.C.
WEST PALM BEACH
TO: The Honorable Mayor and the City Commissions of the City of Ocoee
FROM: R. Duke Woodson, Esq., Assistant City Attorney, City of Ocoee--S—
li
through Paul E. Rosenthal, Esq., City Attorney, City of Ocoee
DATE: January 17, 1997
RE: Developers Agreements for Water & Sewer Capacity
In 1988 and 1990 the City entered into development agreements for water and sewer
capacity with a number of developers. Under the terms of the agreements, the developers
agreed to purchase water and sewer capacity over a three to five year period and to pay revenue
and maintenance fees on capacity which was purchased but not utilized. These agreements
formed the basis of the expansion of the existing water and sewer utility systems.
Under the terms of the agreements, capacity purchased by a developer reverts to the City
five years after the last cash payment to the City is made if the capacity is not utilized. This
expiration date has passed for some developers. The agreements provide that if the capacity
reverts to the City, the developer may in the future reacquire the capacity with a credit for the
capacity fee originally paid to the City. The developer would be responsible for any increase
in the cost of capacity if the capacity is repurchased.
Revenue and maintenance fees paid annually to the City for unused capacity is a
significant source of revenue to the water and sewer utility fund. We believe it is in the best
interest of the City to offer to extend the term of capacity an additional ten years. Developers
who choose to extend the term will have their capacity reserved for the additional period, but
will have to pay the annual fee until the capacity is used. The alternative under the existing
agreement would be for the capacity to revert to the City, lose the annual revenue and
maintenance fees, and transfer the capacity back to the developer in the future upon payment of
the increase in the capacity fee. We also believe the City should offer to reinstate capacity for
OCL
ESTABLISHED 1 642 6j
A MEMBER OF GLOBALEX WITH MEMBER OFFICES IN BERLIN, BRUSSELS, DRESDEN, FRANKFURT, LONDON, PARIS, SINGAPORE, STUTTGART AND TAIPEI
developers whose capacity reservation has already expired, upon payment of outstanding revenue
and maintenance fees.
We recommend the following letter be sent to developers holding capacity under these
agreements offering to extend capacity for ten years. If any developer agrees to this extension
an amendment to the developers agreement will be prepared for execution by the Mayor.
CAWPSI\DOCS\OCOEE\CAPACrrY.MEMj 1/17/971ISNOUSIRDWmeb
DEVELOPER AGREEMENTS
EXPIRATION DATE
*Lake Olympia Club (from Dabi, Inc.)
December 6, 1994
*White Hill Group, Ltd.
March 8, 1995 - Water
(Add'1 Sewer expires February 8,
2001)
Hargreaves Corp.
November 10, 1995
*First Equity (from Westlake Ptnr)
January 8, 1996
AmSouth (from Orange Bank)
January 8, 1996 - Water
No Agreement Signed - Sewer
Sumac
January 8, 1996
(Add'l purchases expire 12/22/98 and
2/22/99)
Rottwnd Homes (from Robert L. Ferdinand)
March 7, 1996
Brookshire Development Company, Inc.
December 31, 1996
(Add'l Oct. 14, 1999)
*Development Consultants (from ACP)
October 1, 1997
Heller Bros.
December 21, 1997
Silvestri
November 30, 1998
*Pizzuti-CrossCreek Dev. Co.
December 30, 1998
*White Road Joint Venture
April 11, 1999
*Opus South
June 6, 1999
Lake Olympia Square Partnership
September 15, 2000
Amoco
No Agreement Signed
*Sunvest
? (No agreement on file - cannot
locate)
Have transferred capacity to several different individual owners when lots were sold.
Capacity is not used yet.
C:\WP51\DOCS\OCOEE\CAPACITY.AT-r 11/17/97118N0081 RD W:seb
January 17, 1997
Dear Developer:
DRAFT
Under the terms of the Developers Agreement for water and sewer capacity you entered
with the City in 1988, your sewer capacity is scheduled to expire in November, 1997. [These
dates will be adjusted according to the specific agreement entered into.] In order to ensure
availability of capacity beyond the expiration date, the City is willing to give you an opportunity
to extend this expiration- date for ten years. During the ten year period, you would continue to
be responsible for the annual revenue and maintenance fee for capacity not yet utilized, but your
capacity would be guaranteed during that term.
If you wish to take advantage of this opportunity, please contact me prior to your
expiration date. If you have any questions, please give me a call.
Yours truly,
Wanda Horton, Finance Director
CAMSMOCSIOCOEMHORTONXTRI 1/17/971 ISNOOB IRDW:rb