VI - Developer/SLCDD Issues
B. Mid Years (1996-2004)
Issuing More Bonds - September 2002
The POA is calling for this moratorium after the VCCDD voted, at its August 2002 meeting, to start validation proceedings on three bond issues amounting to $240 million. This includes $120 million for Recreation Revenue Bonds, $100 million for Utility Revenue Bonds, and $20 million for Solid Waste Revenue Bonds. This moratorium would be in effect, until the Section 190 Law that created the CDDs is clarified on the issue of appraisals and resident approvals, or until a voluntary plan addressing these issues, is adopted by the Developer of The Villages.
Inflated Prices north of CR 466 - October 2000
Newspaper articles, over the past year or so, have claimed that the Section 190 law that created Community Development Districts (CDDs) is being abused by developers, who compel their own hand-picked boards to buy developer property at inflated prices, without market-based appraisals, and without the approval of residents, whose monthly fees will be pledged to pay off the 20- and 30-year bonds, issued to purchase these facilities. This practice is facilitated by a combination of advisors, bankers, attorneys, and other operatives, who are exempt from state conflict-of-interests laws, in their dealings with developers.
The Orlando Sentinel's award-winning series of articles in October, 2000, pointed out that in the mid-1990s Villages property valued at $8.8 million was sold by The Villages Developer to The Villages VCCDD for $84 million. The property consisted of, among other things, retention ponds, guard shacks, landscaping areas, executive golf courses, recreation facilities, etc.