Clearwater Cay Community Development District

The continuation meeting of the Board of Supervisors of the Clearwater Cay Community Development District was held on Thursday, July 8, 2021 at 5:30 p.m. at the Grand Venezia Baywatch Clubhouse at 2704 Via Murano in Clearwater, Florida 33764 and via web conference.

Present (or attending via web conference) and constituting a quorum were:

Don Dwyer – Chair
Patrick O’Malley – Vice Chair
Alan Glidden – Assistant Secretary
Steve Whitehurst – Assistant Secretary
Mike Herd – Assistant Secretary

Also present (or attending via web conference) were:

Cal Teague – District Manager
Dan Molloy – Attorney
Nancy Dudak – Premier District Management (PDM)
Bruce Barnes – GVCOA Attorney
Dan Tsinokas – GVCOA President
Residents

The meeting was called to order and the Chair called the roll. All Board members were present. Also attending were Cal Teague, District Manager and Dan Molloy, Attorney; Nancy Dudak from PDM participated virtually.

The only item that could be discussed from the June meeting and specifically item 9B, The Vue Lawsuit/Contraction from the District, since this was a continuation Agenda of the June 24 meeting.

• The District Manager was asked by the Chair to speak about the proposed lawsuit the Vue has against the District. Mr. Teague said the financial implications mean that either they will have to reduce or eliminate services, or increase the cost of services to the remaining residents. He said the Vue currently is assessed $127,000 annually for O&M of the CDD, and it appears that most of the debt incurred was used to develop that site. He felt it was unfair that the Vue would be released of any obligation to the CDD.
• Mr. Barnes, Attorney for the GVCOA, commented that the District’s Attorney has done an excellent job in representing the District in this issue and the COA is in agreement with the recommendation of the District’s Attorney. He was asked if the Vue is allowed to leave the District, could other properties do the same. He responded that they could not leave because of bond obligations.
• When asked to weigh in, GVCOA President Dan Tsinokas said he was surprised they were there tonight and that he would support whatever the Board agreed upon.
• The District’s Attorney, Dan Malloy, said the bond debt was eliminated. He said the Vue is attacking the CDD on several legal grounds. He spoke on the specifics of the offer from the Vue and said he understood that the chances of the City Council allowing the Vue to be removed from the District are 50/50. He said that he felt the District could lose $100,000 to $473,000 if this went to court and the District lost. He said that if there was agreement, the Vue would pay $25,000 up front and have a shared maintenance agreement in which the Vue would contribute 15% of the operating costs for maintenance of Bellaire Road. His recommendation was to accept the proposal and not oppose the Vue’s extraction request from the District at the City Council meeting next week.
• Supervisor Herd said that he feels this is a bad deal. He shared pictures with the Board of the Vue’s social media postings of their community. He said he feels that members of the community would rather fight this than give up for $25,000 and a possible hit on assessments.
• Supervisor Glidden had questions about the 15% operating costs. There was a discussion about how much the Vue accesses Bellaire Road. He said he does not support the proposal because the Vue is not offering enough, and the rest will fall on the remaining residents.
• Vice Chair O’Malley said his understanding is that the District Manager is opposed to letting the Vue out of the O&M. The District Manager said he will support the Board’s position. The Chair reminded him that Mr. Teague is not a voting member of the Board, but Vice Chair O’Malley asked the Attorney if they could force the District Manager’s hand to commit to an opinion. The Attorney stated that the Chair made a ruling and it would require another motion to appeal the decision of the Chair.
• There was a discussion to appeal the Chair’s position and force the District Manager to make a recommendation concerning this agreement. The Manager later explained his reluctance to offer an opinion as the legal opinion from District Council was that they accept the offer. He said he did not offer a recommendation in opposition of legal counsel for liability reasons.

• The Vice Chair resumed his questions, asking the Attorney who would own Bellaire Road if everyone left the District. He reviewed the items that will have to be maintained if the Vue leaves the District, such as the roads used by garbage trucks.
• Supervisor Whitehurst stated that the Attorney and the Board already answered the questions he had.
• The Chair asked if there are any written agreements at this time, and the Attorney stated there are only proposals. He asked if they can create a caveat that says that if the Vue does not agree to their demands, when they go into the City Council meeting, they can take a negative position. The Attorney stated that this is possible. He then offered the Audience a chance to make a three-minute comment.
  • Mr. Tsinokas talked about a traffic study that they did and said that traffic was significant and there is a specific benefit being enjoyed by them.
  • Mr. Barnes asked what happens if the CDD goes away, would it be wise to incorporate into the maintenance agreement that it would not be binding on any successors in ownership of Bellaire Road.

A. Vue Lawsuit/Contraction from District Update

After discussion, the Board discussed continuing the meeting for further discussion before the July 15 City Council meeting.

Additionally, the Board agreed on the following to prepare for the meeting:

• The Attorney is to get a written proposal for the Board members to review before the continuation of this meeting.
• He will also to try to negotiate a better deal for the District. The feeling was that the 15% was too low and when the roadway replacement is needed, they want to know if the Vue will still participate.
• If the CDD is dissolved, who would take ownership of Bellaire Road?

There being none, the next Order of Business followed.

There being no further business, and

Continuation Meeting: July 13, 2021 at 5:30 p.m.

Next Regular Meeting: July 22, 2021 at 5:30 p.m.