TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Possible Action Regarding the Fourth Amendment to City of North Port, Florida and Sabal Trace Development Partners, LLC Water and Wastewater System Developer’s Agreement.
Recommended Action
Option 1: Approve the Fourth Amendment to City of North Port, Florida, and Sabal Trace Development Partners, LLC. Water and Wastewater System Developer’s Agreement.
Additional Commission Options
Option 1: Approve the Fourth Amendment to City of North Port, Florida, and Sabal Trace Development Partners, LLC. Water and Wastewater System Developer’s Agreement.
• Pros: Approving this amendment will help support project viability by deferring capacity fee payments to a later date that better aligns with the Developer’s current timeline.
• Cons: Approving this amendment will ultimately delay revenue from capacity fees and guaranteed revenue payments.
Option 2: Deny the Fourth Amendment to City of North Port, Florida, and Sabal Trace Development Partners, LLC. Water and Wastewater System Developer’s Agreement.
• Pros: Denying the amendment will keep the current capacity fee payment schedule in effect, obligating the Developer to adhere to previously approved schedules within the Agreement.
• Cons: Developer might not be able to adhere to current terms of the Agreement, which could ultimately delay progress of the overall project.
Background Information
The City of North Port, Florida, and Sabal Trace Development Partners, LLC entered into a Water and Wastewater System Developer’s Agreement on July 23, 2019, recorded in the Official Records as Instrument # 2019101511. Subsequent amendments, including the First Amendment (effective June 9, 2020); the Second Amendment (effective October 12, 2021); and the Third Amendment (effective May14, 2024), have been made to the original Agreement.
Since the approval of the Third Amendment, the Developer has continued pushing this project forward on their end, however, due to unforeseen setbacks including delays in obtaining necessary governmental approvals and a housing market downturn, they are experiencing additional delays. The Developer desires to revise the schedule outlined in Section 20.3 so that Developer’s next (fourth) payment for capacity fees shall be on or before January 1, 2030, with subsequent annual payments being due on that date each year thereafter, through 2037. The extended deadlines for capacity fee payments provide the Developer with extra time to meet their obligations, accommodating challenges in the development process and ensuring a smoother project.
The Fourth Amendment to City of North Port, Florida, and Sabal Trace Development Partners, LLC Water and Wastewater System Developer’s Agreement has been reviewed by the City Attorney and is legally correct as to form.
The Fourth Amendment to City of North Port, Florida, and Sabal Trace Development Partners, LLC Water and Wastewater System Developer’s Agreement was submitted to the City Clerk’s Office on April 10, 2026, for signature, subject to City Commission approval.
Strategic Plan Pillar
Infrastructure & Facilities Integrity
Financial Impact
The capacity fee payment schedule outlined in the Third Amendment originally included 650 Equivalent Residential Connections (ERCs), resulting in total water capacity fees of $1,696,500 (Fund 423) and wastewater capacity fees of $2,629,250 (Fund 424), based on the currently adopted rates.
Under this amendment, the Developer’s requested ERCs for the project would be reduced to a remaining total of 292 ERCs. This adjustment corresponds to $762,120 (Fund 423) in water capacity fees and $1,059,790 (Fund 424) in wastewater capacity fees.
Additionally, approval of this amendment would defer the initiation of Guaranteed Revenue Charges, which are triggered upon payment of capacity fees for each unconnected unit.
Procurement
Not applicable.
Attachments:
1. Fourth Amendment to Agreement
2. Third Amendment to Agreement
3. Second Amendment to Agreement
4. First Amendment to Agreement
5. Agreement
Prepared by: Michelle Tipp, Senior Business Manager
Department Director: Tricia Wisner, Utilities Director