[Villages Kahuna]

There has been lots of discussion regarding increased apartment development in The Villages. With the recently-scheduled public hearings regarding the Developer’s request to build and rent lots more apartments in and around the town squares, there will be a much louder outcry.

Regarding the situation at Hacienda Hills CC, I posted my opinion that the Developer is changing his business model (and our lifestyle!) by building and renting more apartments. I noted that the Developer was acting as if there was an intention to take their ownership interests public with the sale of their ownership to a financial buyer or with an initial public offering of stock. I noted that the value of ownership of The Villages would be heavily effected by the amount of a repeating income stream. Rental income or income from businesses or amenities still owned by the Developer, such as the championship golf courses and commercial development are what is necessary to maximize the value of The Villages business model.

Unlike building and selling houses, which is not repeating income, the cash flow from businesses like shopping centers, rental apartments or fee income from recreational facilities is exactly the type of repeating cash flow so highly valued by the equity markets.

It’s now even more apparent that the Morse family is taking actions to increase the value of The Villages. Sale to a financial buyer or an initial public offering of stock are the most likely ways for the Developer to “cash out”. Unfortunately, such an ownership change will require fairly dramatic changes to the lifestyle we all bought into in order for the family to maximize the “selling price” of the business.

If the density of residential development worsens the overcrowding of rec amenities and results in more traffic, it’s now quite obvious that the Developer finds such a tradeoff not only acceptable but quite necessary to accomplish his new business model.

Three of the five incumbent Sumter County commissioners were defeated in the recent primary election. We will all have an important choice in the upcoming General Election. I’d suggest that we all pay attention to the elections of county commissioners, our most important local government representatives. The election of commissioners that are “friendly” with the Developer will likely assure the continuation of change in the local development of The Villages, even if dramatic changes to our lifestyle is the result.

You can be sure that the Developer will do everything possible to elect county commissioners friendly to his interests. As residents and taxpayers in The Villages, will we do the same?