Quote:
Originally Posted by Jim 9922
The Villages Developer sells the rec. centers and certain other amenities such as the executive golf courses to the CDD's after the build-out of a major area is completed. The price is determined based upon an appraisal which is usually based upon the discounted value of future amenity fees. The purchase is funded by the sale of bonds which becomes an obligation of the CDD's and the within the CDD's budgets payment of "rent" to the Developer now replaced by the principal and interest payments due on the new bonds. Until the sale, the Developer owns and maintains the facilities for which the CDD's pay rent. That is why they can operate sales centers, open and close restaurants, "remodel" areas at will, etc., etc. Until the "take-over" of the facilities by the CDD's, rent for use of the facilities is paid to the developer by the CDD's. The system has worked pretty well in the past for The Villages except for the $100 million settlement awarded years ago to the CDD's north of HY 466. I think the principal contention in the award was lack of proper maintenance of the facilities before the sale. That provided those CDD's a nice "reserve fund" to help with unexpected repairs and projects and is funding a large portion of the new First Responders' recreational area.
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This is the most correct and logical reply I've seen so far.
DEVELOPERS OF PROPERTY/COMMUNITIES ARE BUSINESSES - NOT FRIENDLY NEIGHBORS.
Sale of a business always includes the businesses potential earnings. The homeowner dues are the earnings of the business. I'd take the value of the amenities, the value of 10 years of dues minus the cost of operation/maintenance and repairs and come up with sale price.
Some of the numbers in previous posts don't sound that far off.