Connerton's Community Development District supervisors gave their unanimous endorsement Monday evening to a bond restructuring deal that will breathe new life into the dormant neighborhood.
Texas-based investors Haymon Woods, which owns the sprawling central Pasco community, have pledged to begin home construction immediately after the formal bond closing later this month. Senior Managing Director Adam Krug has said he already has contracts with homebuilders to buy undeveloped lots in Connerton.
The deal restructures more than $40 million in debt – the first debt service payment isn't due until 2013 – and it gives them more flexibility to alter lot sizes and numbers. District Supervisor Don Anoff said he didn't want the builders to have too much flexibility.
"My concern isn't so much that they'll upgrade the size of the lots so much as reducing it below the 40-foot minimum," Anoff said. "I don't want them coming in with zero lot lines and putting in track homes that lower the value of everything that's already here."
CDD attorney Roy Van Wyk said the builders would have to comply with Connerton's development standards or appeal to the county to change them. "This only allows development that's already approved," he said.
Robbie Cox, the district's financial consultant, said none of Connerton's existing homeowners will be affected by the restructuring agreement.
Hayman Woods would have to pay approximately $500,000 in CDD assessments. The firm will be required to pay a $615,000 assessment for its debt service next year for the home sites that are ready for construction – like those surrounding Club Connerton.
The debt service payments for undeveloped areas – where there still are no roads or utilities – would not be due for another two years. So in 2014, the developer's bond payments could escalate to about $1.4 million.