TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Approve Amendment to the Standard Developer's Agreement Between the City of North Port and Anvil Land and Properties, Inc.
Recommended Action
Approve Amendment to the Standard Developer's Agreement between the City of North Port and Anvil Land and Properties, Inc.
Background Information
Anvil Land and Properties, Inc. entered into a Standard Developer's Agreement with the City of North Port on March 20, 2017. During the initial planning stages, the Developer gave a conservative estimation of the number of Equivalent Residential Connections ("ERCs") needed to fully develop this area of land. This agreement granted the Developer a total of 15 ERCs which the Developer has paid for, and thus were reserved for connection. To date, the Developer has connected 13.5 ERCs, which leaves a remaining amount of 1.5 ERCs reserved but unconnected. Reserved but unconnected ERCs require guaranteed revenues to be billed and paid annually, according to the Developer Agreement and City Code. Since Anvil Land and Properties, Inc. has indicated the remaining reserved ERCs will never be connected they have requested that the 1.5 ERCs be eliminated, thereby relieving the Developer of any future guaranteed revenue payments.
In accordance with Section 19.3 of the Water and Wastewater System Standard Developer's Agreement, no refund for the capacity will be forthcoming, however the ongoing commitment to continue to pay guaranteed revenues will cease.
This Amendment has been reviewed by Legal as to form and correctness.
Strategic Plan
Promote sustainable growth and development, while maintaining or enhancing quality of life in our City
Financial Impact
The current guarantee revenue in the amount of $588 per ERC per year will be forgiven going forward, with the elimination of the 1.5 ERCs that are reserved but unconnected.
Procurement
N/A
Attachments:
1. Stan...
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