TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve the Water and Wastewater System Standard Developer's Agreement Addressing Onsite and Offsite Facilities By and Between the City of North Port, Florida, and Forestar (USA) Real Estate Group Inc.
Recommended Action
Option 1: Approve the Water and Wastewater System Standard Developer's Agreement Addressing Onsite and Offsite Facilities By and Between the City of North Port, Florida, and Forestar (USA) Real Estate Group Inc. as presented.
City Commission Options
Option 1: Approve the Water and Wastewater System Standard Developer's Agreement Addressing Onsite and Offsite Facilities By and Between the City of North Port, Florida, and Forestar (USA) Real Estate Group Inc. as presented.
• Pros: Allows the project to proceed with established terms for water and wastewater service. Ensures Equivalent Residential Connection (ERC) assignments; capacity payments; and infrastructure requirements are clearly documented.
• Cons: Potential community opposition regarding more development and/or specific use of land.
Option 2: Deny the Water and Wastewater System Standard Developer's Agreement Addressing Onsite and Offsite Facilities By and Between the City of North Port, Florida, and Forestar (USA) Real Estate Group Inc. as presented.
• Pros: Avoid additional development within the City.
• Cons: May delay project timelines, impede downstream improvements, and reduce associated revenue.
Background Information
Forestar (USA) Real Estate Group, Inc. (Forestar) has expressed desire to develop land in the northeast quadrant of the City. Their overall development plan for Star Farms at North Port is proposed to include 3,598 dwelling units, an 18-hole golf course, and up to 40,000 square feet of commercial uses. The project will be developed in phases with the first phase, Phase I, containing 900 dwelling units.
This Agreement obligates Forestar to construct onsite water and wastewater improvements to serve Phase I. Furthermore, Forestar will also construct offsite water and wastewater utility improvements to serve the entirety of the Star Farms at North Port project. The utility improvements are to include a stub out for future development connections adjacent to Star Farms. The City has agreed to pay for the cost difference of the materials only to upsize the proposed twelve-inch (16”) water supply pipe for Star Farms development to a twenty-inch (20”) pipe at the I75 crossing, since the offsite improvements will also serve future developments.
Forestar has outlined a proposed reservation of capacity schedule for both Phase I and future phases, which encompasses the entirety of the property. The first capacity payment is proposed to be paid on or before the issuance of the first Certificate of Occupancy, which is estimated by November 1, 2026. The Agreement provides for flexibility in the date of payment by outlining the method for requesting a change in capacity reservation and related required payment date to be approved by the Utilities Director or City Manager. Future phases of capacity are included in the Agreement, with the stipulation that Forestar may be required to contribute to the cost of improvements to the City’s downstream system to serve their future phases. Forestar will be required to submit engineering plans and specifications for each phase to the City for review and approval to ensure all utility improvements to serve the property have been completed.
The Water and Wastewater System Standard Developer's Agreement Addressing Onsite and Offsite Facilities By and Between the City of North Port, Florida, and Forestar (USA) Real Estate Group Inc. has been reviewed by the City Attorney and is legally correct as to form.
The Water and Wastewater System Standard Developer's Agreement Addressing Onsite and Offsite Facilities By and Between the City of North Port, Florida, and Forestar (USA) Real Estate Group Inc. was provided to the City Clerk’s Office on November 25, 2025, for signatures, subject to City Commission approval.
Strategic Plan Pillar
Facilities & Infrastructure Integrity
Financial Impact
The City will be paying the cost difference for materials only to upsize the offsite infrastructure, which will be budgeted within Fiscal Year 2027. The current estimated revenue for the first phase to be paid by November 1, 2026, is $1,174,500 for water capacity and $1,820,250 for wastewater capacity. All other phases will be budgeted in their respective years. If the project develops completely as outlined in the agreement, the city could see revenues totaling $9,390,780 in water capacity fees and $14,553,910 in wastewater capacity fees.
Procurement
Not applicable.
Attachments:
1. Developer Agreement
2. Dept. of Corporations Document
Prepared by: Michelle Tipp, Senior Business Manager
Department Director: Tricia Wisner, Utilities Director