Quote:
Originally Posted by Goldwingnut
The amount of the bond is negotiated between the CDD and the developer as to the expected reasonable cost of the infrastructure development. Once determined, the fees and additional costs are added to the total amount of the bond. The funds from the bond sales are held by the CDD and used to pay the developer’s invoices for infrastructure development.
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If I understand CDD's correctly, the CDD is controlled by a Board of Supervisors, who are designated by the Developer at the time of the CDD's creation?
These hand-picked "Supervisors" are then responsible for determining the validity of the Developer's invoices and advancing payment from the Bond Funds? (I assume the CDD advances money to the Developer to pay his bills, based on an agreed to construction schedule, no different than a bank would do on a construction loan?)
I must be missing something. The entire premise seems illogical.