imploded projects: the new ghost towns
TRANSCRIPT
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Imploded projects: The New Ghost Towns Doris S. Goldstein, Attorney
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$6 million clubhouse was to be the centerpiece of the “active adult”
community.
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Of 999 planned homes, only 230 were completed and closed.
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The clubhouse is unfinished and unusable.
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• 27 miles west of Downtown Orlando • 35 miles from Walt Disney World• 70 miles from Tampa.
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• Lake County has 1,400 named lakes
• Dependent on citrus industry until freezes in 1980s
• Now relies on tourism
• Estimated county population is 300,000
• Estimated Groveland population 7,500
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Development of Groveland: • First settler was Daniel Sloan, a
former Confederate Cavalry lieutenant • In 1910, 20,000 acres carved into small
tracts and sold to Northerners • Once had the largest lumber mill in
Southeast • Perfume factory, oil drilling and silk
worm industry failed
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Groveland City Government: • “First Lady Mayor,” 1994 • First African-American
Mayor, 2004 • 25-year-old Mayor,
2006 • City Hall Closed on
Friday
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Distance from Groveland City Hall to Cascades at Groveland is 9 miles
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Over 55 Active Adult Community
• Fair Housing Act of 1988 requires “significant facilities and services” designed for senior residents
• 80% of homes must have resident over 55
• No children permitted as permanent residents.
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The Cascade’s streets and utilities were to be built and maintained by a Community Development
District.
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Exponential Growth of CDDs in Florida
• Statute enacted in 1980 • In 1990, 14 CDDs in Florida • By 2000, a total of 101 CDDs • 104 created in the year 2006 alone • Now 578 CDDS • Two-thirds were created in last seven years
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Community Development Districts— Too much bond money spent too fast.
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Cascades at Groveland CDD formed October 13, 2005
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Entrance gate sits unmanned. But CDDs aren’t supposed to restrict access anyway.
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The Cascades were made subject to covenants and restrictions, and its
private, non-CDD amenities were to be ultimately owned and operated by a
homeowners association (HOA).
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The clubhouse was to be developed using conventional financing and conveyed to
Homeowners Association for maintenance.
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Prior to the bankruptcy, Levitt and Sons deeded the unfinished clubhouse to the HOA
encumbered by $1,302,000.00 in liens.
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Over 55 Active Adult Community
Without “significant facilities and services” designed for senior residents, community loses its “no children” exemption from the Fair Housing Act.
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– April 15, 2005: Declaration for Cascades recorded on first 204 acres
– October 17, 2005: Additional 67 acres submitted to Declaration
– March 1, 2007: Developer deeded unfinished amenity center to HOA
Timeline
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– Nov 9, 2007: Levitt and Sons and related companies filed for Chapter 11 bankruptcy
– July 30, 2009: Receiver acting for Developer submitted additional 216 acres to Cascades Declaration. Unplatted land to get one vote, pay 1/10 assessment per acre. Bank took property.
Timeline, continued
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What happens now?
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We have concluded that it would be best for the nation to simply leave them be; let the failed exurban subdivisions sit there as weed-engulfed monuments that culminate decades of folly. Repositioning or redeveloping would simply reinforce the pattern of inefficiency.
Perhaps the only worthwhile addition to these sites would be to add a classical pediment engraved with:
"My name is <insert developer name here>"Look upon my works, ye Mighty, and despair!"
Cheerio,
--Todd Zimmerman
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Uses for Clubhouse:
• • Commercial uses if feasible • • Gym or YMCA • • Private event space • • Library, police station or other
governmental use
Need owners to buy into solution
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Governmental Solutions:
• • Curb sprawl • • Restrict CDDs, including limits on how
much can be built ahead of the market • • Require bonds for amenities • • Statutorily reduce percentage needed
in declaration for retrofit solutions
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Imploded projects: The New Ghost Towns Doris S. Goldstein, Attorney
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