Cape Coral to consider special district for proposed 2,500-home Star Farms development
The proposed community development district would cover nearly 1,280 acres in north Cape Coral and could finance almost $221 million in roads, drainage, water, sewer and other infrastructure.
CAPE CORAL, Fla. —
Cape Coral City Council is scheduled to take an initial step Wednesday toward creating a special district that could help finance infrastructure for a proposed development of approximately 2,500 homes.
Council members are expected to consider the introduction of Ordinance 35-26 during their regular meeting at 4 p.m. on Wednesday. The ordinance would establish the Star Farms at Cape Coral Community Development District, or CDD, across approximately 1,279 acres.
The proposed district is generally located east of Burnt Store Road, south of Yucca Pens Preserve, north of Wilmington Parkway and west of Andalusia Boulevard.
Special district for proposed 2,500-home Star Farms development
If council members approve the ordinance’s introduction, a public hearing would be scheduled for July 22.
What is planned for the property?
Documents submitted to the city describe Star Farms as a master-planned residential development expected to include approximately 2,500 housing units.
It says infrastructure improvements are currently expected to be constructed between 2026 and 2031.
The preliminary capital plan estimates the total cost of infrastructure at about $221,000,000.
The estimate includes: million for off-site road improvements, drainage systems, sewer systems, and more.
What is a community development district?
A CDD is a special-purpose unit of local government commonly used in Florida to finance and maintain infrastructure within a development.
The district can issue bonds to raise money for major construction projects. It can then levy non-ad valorem special assessments on property within its boundaries to repay the debt and pay for operations and maintenance.
For a future homeowner, that could mean an additional charge appearing on the property tax bill. The assessment would be separate from traditional property taxes based on a home’s taxable value.
The petition says any debt issued by the CDD would be the district’s responsibility and would not become debt of Cape Coral or the state of Florida.
The meeting documents do not estimate how much an individual homeowner could pay, when the assessments would begin or how long they could remain on the property.
Who would own and maintain the infrastructure?
Under the proposed arrangement, responsibility would be divided among the CDD, Cape Coral and other local government agencies.
The district is expected to own and maintain drainage systems, environmental improvements, perimeter landscaping and walls. Cape Coral would own and maintain the development’s sanitary sewer and potable water systems after they are constructed and accepted by the city.
The city or Lee County would own and maintain the off-site road improvements, depending on which government has authority over each road.
The CDD could finance the construction of those projects even when another government ultimately assumes ownership and maintenance. The CDD would have authority over the infrastructure and services permitted under Florida’s Community Development District Act.
Who would pay?
People who eventually buy property within Star Farms could help pay for the development’s infrastructure through charges on their tax bills.
The proposed district could use bonds to pay for infrastructure upfront.
Those bonds could then be repaid through special assessments charged to developable property benefiting from the improvements.
The district could also levy separate assessments to pay for landscaping, drainage maintenance, administrative expenses and other ongoing services.
The petition argues this structure would keep those expenses from being placed on Cape Coral taxpayers who do not own property within the district.
Who would initially oversee the CDD?
The petition names five people to serve as the district’s initial Board of Supervisors: Lindsay Hernandez, Christian Cotter, Charles Marsala, Charles McDonald and Khara Yatron.
The board would oversee district finances, contracts, assessments, infrastructure and other CDD business.
Cape Coral City Council is scheduled to consider Ordinance 35-26 during its July 15 regular meeting. If approved, the city plans to hold a public hearing on July 22.
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