CITY COUNCIL AGENDA ITEM
Memo Date: November 7, 2023
Agenda Date: November 14, 2023
Prepared By: Anthony Garganese, City Attorney
Through:
Requested Action:
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Approve Utilities Easements with Brightline Trains Florida, LLC and Mountain Cove Homes at Lakes at Cocoa Grove, LLC
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BACKGROUND:
The approval of the easements is contractually necessary to support two large detached, single-family residential development projects collectively consisting of over 700 future new homes. The genesis of these easements has a very long history, and a condensed outline of the history is as follows:
On August 24, 2004, the City Council, utilizing the alternative involuntary annexation procedures under Chapter 171, Florida Statutes, annexed approximately 757.29 acres of real property on the north and south side of State Road 528 and adjacent to the eastern boundary of I-95. The real property at the time was substantially owned by two property owners, Florida Space Needle, LLC and Berrera Shores, LLC. In conjunction with the annexation, the City Council approved a separate Preceding Development Agreement with both Florida Space Needle, LLC and Berrera Shores, LLC. The Agreements were recorded and are binding upon the properties. The annexation was challenged by Brevard County, and the City Council’s annexation was upheld by the Florida 5th District Court of Appeals. The City, County and two property owners then entered into a recorded Stipulated Settlement Agreement, dated December 11, 2007, which ended the County’s annexation challenge, and is binding on the subject property.
Since then, the subject property has changed hands. The property to the north was purchased by Virgin Trains USA Florida, LLC (then conveyed to Brightline Trains Florida LLC) and is currently owned by Brightline’s affiliated development company, Mountain Cove Homes at Lakes at Cocoa Grove, LLC. The property to the south is currently owned by Beachline Partners, LLC, with the exception of a portion of the property along State Road 528 which was conveyed to Brightline Trains Florida, LLC for the high speed rail project. The Preceding Development Agreements and Stipulated Settlement Agreements require the property owners to collectively design, permit and construct over 700 detached, single-family residential development projects. Consistent with this requirement and under the terms of the Preceding Development Agreement, the property owners agreed to purchase utilities services from the City of Cocoa. The City of Cocoa agreed to design, permit, and construct the extension of utilities in sufficient capacities to serve the phased development of the properties up to the points of connection to the subject properties. The City’s commitment to extend utilities is subject to several terms and conditions including the property owners completing the developments within certain time periods after the utility extension is completed, or the property owners will be required to reimburse the City for the costs associated with extending the utilities to the subject property. The property owners also agreed to convey any required easements to support the extension of the utilities to the points of connection.
Important to determining the route for extending the utilities to the subject properties, the Stipulated Settlement Agreement required the County to select the point of ingress/egress for the property to the north of SR 528. On May 23, 2023, the County finally made the selection of ingress/egress along Osage/Angelica Streets.
In addition, the City Council approved separate Settlement Implementation Agreements with Virgin Trains on July 10, 2019 for the property to the north and Beachline Partners on July 26, 2022 for the property to the south. The Implementation Agreements approved more detailed conceptual plans for the future residential development projects. Now that the Brightline high speed rail project has been completed, Mountain Cove is now ready to proceed with permitting and developing the property to the north. Taylor Morrison has the property to the south under contract and is currently completing the permitting for the property to the south. Council will be considering approval of these permit applications in the very near future.
Accordingly, the City of Cocoa utilities has completed the design and permitting for the utility extensions. The extensions will generally run east/west along Osage/Angelica and then south along Mountain Cove’s property, and then proceed under State Road 528 in conduit pipes installed by Cocoa, and then through the property owned by Brightline Trains on the south side of State Road 528 to ultimately reach the northern boundary of Beachline’s property. Two easements are required to complete this utilities extension in accordance with the Preceding Development Agreements and Settlement Implementation Agreements. Cocoa utilities is ready to issue an ITB to retain a contractor to complete the utility extensions. Before issuing the ITB, Cocoa utilities requires the conveyance of the easements to the City to ensure that it has the necessary real property rights to install the utilities improvements.
In accordance with the aforementioned agreements, City staff and City Attorney are recommending that the City Council approve the easements.
STRATEGIC PLAN CONNECTION:
This request supports the economic development and housing needs of the City of Cocoa and the increase and sustainability of the City’s ad valorem tax base. The development of the subject property has been a strategic goal of the City of Cocoa since 2004, but has been delayed by a myriad of factors including litigation, the 2008 Great Recession, change of ownership, Covid, the Brightline Train project, and the County’s ingress/egress selection.
BUDGETARY IMPACT:
The easements are being conveyed to the City at no cost per the aforementioned agreements.
PREVIOUS ACTION:
1. August 24, 2004 - Annexation Ordinance No. 31-2004
2. August 24, 2004 - Preceding Development Agreement with Florida Space Needle
3. April 12, 2005; November 7, 2006 - Preceding Development Agreement with Berrera Shores
4. December 11, 2007 - Stipulated Settlement Agreement with County and Property Owners
5. July 10, 2019 - Settlement Implementation Agreement with Virgin Trains
6. July 26, 2022 - Settlement Implementation Agreement with Beachline Partners
RECOMMENDED MOTION:
Recommendation
Approve Utilities Easements with Brightline Trains Florida, LLC and Mountain Cove Homes at Lakes at Cocoa Grove, LLC