CITY COUNCIL AGENDA ITEM
Memo Date: November 20, 2023
Agenda Date: November 28, 2023
Prepared By: Anthony Garganese, City Attorney
Through:
Requested Action:
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Two matters related to the Mountain Cove Homes at Lakes at Cocoa Grove Development - (1) Consider Petition filed by Mountain Cove Homes at Lakes at Cocoa Grove, LLC. to create a community development district pursuant to Chapter 190, Florida Statutes, and approve on First Reading Ordinance No. 27-2023 Creating the Lakes at Cocoa Grove Community Development District. (Community Services Director); and (2) Postpone consideration and approval of the First Amendment to Settlement Implementation Agreement to the City Council Meeting to be held on December 12, 2024 at 6:00 p.m. for purposes of preserving public notice of the adoption of the proposed agreement.
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BACKGROUND:
The subject property is 246.43 acres, more or less, and legally described in the proposed Ordinance. The subject property is generally located on the north side of State Road 528 at the corner of State Road 528 and I-95.
The subject property is subject to that certain Preceding Development Agreement by and between the City of Cocoa and Florida Space Needle, LLC., dated August 24, 2004 (“Preceding Development Agreement”). Following the Council’s approval of the Preceding Development Agreement, the City Council annexed the land into the jurisdictional limits of the City of Cocoa, along with other real property on the north and south side of State 528 totaling over 700 acres of land. At the time, it was one of the largest annexations conducted by the City of Cocoa. Following the adoption of the annexation ordinance, Brevard County filed a lawsuit challenging the annexation of the subject property. The City prevailed in the lawsuit at the 5th District Court of Appeal and entered into that certain Stipulated Settlement Agreement between Brevard County v. City of Cocoa, Case N. 05-2005-018141, which was recorded on January 9, 2008 in Official Record Book 5837, Page 2226 of Brevard County, Florida. Years later, after the property had changed ownership, the City entered into that certain Settlement Implementation Agreement between the City of Cocoa and Virgin Trains USA Florida, LLC., dated July 10, 2019, and recorded at Official Record Book 8564, Page 2243 of Brevard County, Florida.
In accordance with an excavation permit issued by the City of Cocoa, and stormwater plans approved by the St. Johns River Water Management District, the subject property has recently been excavated to provide much needed dirt for the Brightline Rail Project. The area that was excavated will be serving as a lake amenity for the proposed 350 single family home development project approved by the City Council under the Settlement Implementation Agreement. Now that the excavation has been completed, Brevard County has elected on May 23, 2023 the ingress/egress point for the project per the Stipulated Settlement Agreement, and the City Council has approved on November 14, 2023 the utilities easement for the extension of the utilities to service the property, City Administration is currently working on finalizing a proposed First Amendment to the Settlement Implementation Agreement to make technical amendments to the conceptual development plan for the proposed single family home project before Mountain Cove pursues final development permits to construct the project. The First Amendment to Settlement Implementation Agreement will be presented to Council for approval at the December 12 ,2023 meeting. In the meantime, a copy of the revised conceptual development plan is attached to this agenda item in order to refamiliarize the Council with the layout and scope of this proposed project.
Pursuant to Section 4.7 of the Preceding Development Agreement, the City of Cocoa and the predecessor owner of the subject property agreed that the creation of a Community Development District may be considered by the City of Cocoa upon the owner’s request and that a CDD may be beneficial for the future development of the property. Mountain Cove Homes at Lakes at Cocoa Grove, LLC, the current owner of the subject property (“Petitioner”), having obtained written consent to the establishment of the District by the owners of 100 percent (100%) of the real property to be included in the District, has filed a Petition to Establish the Lakes at Cocoa Grove Community Development District (“Petition”) with the City Council of the City of Cocoa, Florida (“City”) pursuant to Section 190.005(2)(a) and 190.046(1)(h), Florida Statutes, to adopt an ordinance establishing the Lakes at Cocoa Grove Community Development District (“District”) pursuant to Chapter 190, Florida Statutes.
Generally, a community development district (“CDD”) is an independent special district which is used as an alternative method for financing and maintaining basic community development services, including capital infrastructure required for the development of communities such as a large residential subdivision. As defined by applicable Florida Statutes, a CDD is an independent special district that operates as “a local unit of special-purpose government.” Each district, acting through its own Board of Supervisors, may exercise the general powers enumerated in Florida Statutes. For example, when structured and run properly, CDDs may provide a cost-effective tool to finance the development of infrastructure and services needed for new communities. CDDs can levy ad valorem taxes or special assessments on developable land within the District to generate the revenues necessary to finance the development and maintenance of infrastructure, and may also issue long-term bonds, and use its statutory powers to finance all or part of the costs of construction, acquisition, operation, and maintenance of major infrastructure for community development including, but not limited to, roads, water and sewer facilities, stormwater management facilities, the undergrounding of utilities, streetlights, and landscaping. In essence, a CDD is a separate local government entity that runs independently from its host City or County. If the CDD is approved, it will also be separate from the traditional homeowner’s association that the Petitioner will be creating to provide long term support for other aspects of the project not under the jurisdiction and management of the CDD.
Because the subject property is located within the City of Cocoa, and is less than 2,500 acres, the creation of a CDD within the City of Cocoa requires that the City Council conduct a public hearing on the Petition and if the Council desires to approve the creation of the CDD, Council must adopt an ordinance creating the CDD. Chapter 190, Florida Statutes requires the City Council to make a determination to grant or deny a petition for the establishment of a community development district based on the following factors:
1. Whether all statements contained within the petition have been found to be true and correct.
2. Whether the establishment of the district is inconsistent with any applicable element or portion of the state comprehensive plan or of the effective local government comprehensive plan.
3. Whether the area of land within the proposed district is of sufficient size, is sufficiently compact, and is sufficiently contiguous to be developable as one functional interrelated community.
4. Whether the district is the best alternative available for delivering community development services and facilities to the area that will be served by the district.
5. Whether the community development services and facilities of the district will be incompatible with the capacity and uses of existing local and regional community development services and facilities.
6. Whether the area that will be served by the district is amenable to separate special-district government.
In accordance with the requirements of Section 4.7 of the Preceding Development Agreement, and in furtherance of demonstrating compliance with the aforementioned factors, Petitioner has filed a Petition to create a CDD, along with written testimony of several individuals associated with the proposed CDD. Council should consider the Petition and written testimony and determine, based on the aforementioned factors, whether to allow the Petitioner to create the CDD. Creation of a CDD requires Council to adopt an Ordinance. Therefore, the decision made by Council this evening is whether to adopt the attached Ordinance on First Reading.
Florida Statutes requires that the proposed Ordinance be advertised in a newspaper of general circulation for four consecutive weeks prior to second reading and final adoption. A copy of the first advertisement is attached to this Agenda Item. The advertisement is scheduled to run on 11/14; 11/21; 11/28 and 12/5. Second reading and final adoption of the Ordinance has been advertised to occur on December 12, 2023, providing Council approves the Ordinance on First Reading.
In addition, as noted above, City Administration is finalizing its review of a draft of the proposed First Amendment to Settlement Implementation Agreement for Council’s consideration. However, the draft was not presented to Staff by the Petitioner in time to make this Council Agenda. Because the First Amendment to Settlement Agreement was noticed in newspaper for consideration and approval at this evening’s Council meeting, Staff is requesting that the Council postpone consideration of the First Amendment to Settlement Implementation Agreement to a date certain to preserve advertising. The First Amendment to Settlement Agreement will be considered for approval by the City Council at its Regular Meeting to be held on December 12, 2023 at 6:00 p.m._
STRATEGIC PLAN CONNECTION:
Enhance efforts to make the City of Cocoa a thriving and competitive economic driver along the Space Coast. Improve residential development and rehabilitation programs to ensure a diversity of housing options.
BUDGETARY IMPACT:
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
7. November 14, 2023 - Approval of Utilities Easements from Mountain Cove and Brightline
RECOMMENDED MOTION:
Recommendation
(1) Approve on First Reading Ordinance No. 27-2023 Creating the Lakes at Cocoa Grove Community Development District; and (2) Postpone consideration and approval of the First Amendment to Settlement Implementation Agreement to the City Council Meeting to be held on December 12, 2024 at 6:00 p.m. for purposes of preserving public notice of the adoption of the proposed agreement.