History of the CCMD Community Development District

The area of CCMD from the entrance on US 441 to the bridge just past the Club House and just before the driving range is known as Phase I of the community. Phase II is that area of the development starting at the bridge by the driving range. Roads, storm sewers, sidewalks, etc. were owned until January 1, 2005 by a special governmental entity, The Country Club of Mount Dora Community Development District, or CCMD CDD. Since January 2005, the "infrastructure" has been owned by the City of Mount Dora.

CDDs were authorized by a 1980 Florida law, which allows developers to establish special districts to fund the infrastructure costs of developments through the issuance of tax-exempt bonds. These bonds are then paid off by the developer and homeowners over a period of years (20 years in the case of CCMD). The amortization of the bonds is a constant figure in each year's tax bill (provided by the Lake Country Tax Assessor). Some owners have paid off their shares of the bond issues, and the annual payments of other homeowners varies by the date of purchase. The bonds will be paid off no later than 2013, and the CDD will be terminated once that happens.

In the meantime, Phase II homeowners are assessed an amount (which varies annually) to pay for the administration of the CDD. This amount is approved by the CDD Board of Supervisors at its August meeting each year, and is then also made a part of each property owner's tax bill. The CDD Board of Supervisors consists of five members, all of whom must be residents of Phase II. The Board normally meets once each quarter.

Starting in 1999, CDD attempted to turn over the Phase II infrastructure to the City of Mount Dora so that residents would not continue to bear the costs of operating the CDD, and funding upkeep and repairs to the infrastructure while they are paying the same taxes as other residents of CCMD and the City. Because the City was concerned about the condition of some of the roads and storm sewer structures, it would not agree to assume responsibility until these conditions were evaluated and appropriate repairs made. The evaluation was completed in November 2002. Many deficiencies were found, particularly with relation to storm sewer structures.

As a result, the CDD Board of Supervisors decided to sue the developer, the engineer for the project and five contractors. The suits were filed in March 2003, with the City joining the CDD in the suits. In the meantime, the Board recognized that repairs had to be made to prevent further deterioration of the system and to put the infrastructure into condition for the City to accept. The CDD used the City's borrowing authority to obtain $2 million in bonds to finance the repairs. The CDD hoped to recoup some or all of the repair costs through the suits filed against the parties it considered responsible for the unsatisfactory design and construction. Phase II property owners made annual payments to the City until the lawsuits were settled and bonds paid off in late 2006.

By June 2006 the CDD had reached out of court settlements with all the defendants, recovering $1,436,000. By May 2007 the CDD had transferred all its remaining real property to the Homeowners' Association and had no functions remaining except to manage the remaining 1994 debt and the legal responsibilities attendant to that. The CDD Board attempted to have the City take over management of the bond issue and authorize the CDD to dissolve so that Phase II residents would no longer be assessed to maintain the CDD. The City Council declined. In February 2008 the Board made a major effort to reduce expenses so that the annual assessment on Phase II residents could be minimized. At one time the annual assessment had been almost $400.00.The annual assessment for FY 2010 was $67.71, is expected to be $60 or less in 2011, and until the CDD is terminated no later than 2013.

-Bob Foster

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History of the CCMD Community Development District