AAC needs to take back its power

It’s said that Knowledge is Power, and that couldn’t be truer than with the Amenity Authority Committee (AAC), which manages most resident amenities north of 466. The Developer owns and manages some amenities, such as Championship Golf courses, Country Clubs, and premier pools, outside the AAC area of responsibility. Our lifestyle consists of enjoying both.

On Tuesday, February 18th, the AAC will host a “workshop,” which means a formal gathering to address two very important topics that should be a top priority to residents north of 466.

1. Review of the AAC Powers, Limitations, and Implementation as stated in the 2008 Interlocal Governmental Agreement (IGA), which established the AAC from a resident lawsuit.
2. Discussion/Debate whether the AAC can cap/defer amenity fees north of 466, which they want to do and did in 2010 without being synchronized with the Project Wide Amenity Committee (PWAC), which advises on amenities south of 466.

The outcome of this workshop will affect the future of all amenity management north of 466! Residents need to attend this workshop and ensure that their elected AAC Board of Directors know that you expect them to know their powers and use their powers to protect your lifestyle.

Consider this: if your official title is Board of Directors, but you permit your paid staff to refer to you as a committee, and your website solely created by the paid staff calls you a committee, how likely are those board members to advocate for your amenities and lifestyle when the Developer wants to change something or your AAC needs to say “no” to an aggressive agenda?

SOME HISTORY

Village residents enjoy an unmatched resort lifestyle based on the extensive amenities, such as the many recreational centers, sports complexes that may include softball, pickleball, bocci ball, and horseshoes, an executive 9-hole golf course, an air gun range, pools including family, adult, and sports, dog parks, and over 3,000 clubs that meet free of charge in the recreation centers.  Plus, the Developer offered amenities.

North of 466, non-developer-owned amenities are managed by the Amenity Authority Committee (AAC).

The AAC was established by an Interlocal Governmental Agreement (IGA) on 4/18/08, with two Amendments: 1^st AAC IGA Amendment 8/12/20 and 2^nd AAC IGA Amendment 12/6/23, respectively, and FL Statue 163. The AAC settlement resulted from a resident lawsuit establishing the AAC and providing money to restore the amenities’ condition.

https://www.poa4us.org/settlement-agreement/

https://www.poa4us.org/executed-interlocal-agreement/

https://www.poa4us.org/first-amendment-aac-interlocal-agreement/

https://www.poa4us.org/second-amendment-aac-interlocal-agreement/

The Villages Amenity Authority Committee (AAC) was created in March 2008 by a class-action settlement agreement documented in an Interlocal Governmental Agreement (AAC IGA) that required the Villages developer to pay about $40 million over the following 13 years to replenish amenities maintenance accounts.

The class-action lawsuit brought by Village residents against The Villages of Lake-Sumter Inc., (Developer) the Village Center Community Development District (Commercial space and overarching district governance), and developer H. Gary Morse claimed the collected Amenity Fees were not used to maintain the residents’ amenities.  The plaintiffs claimed that the monthly amenity fees paid by the Villages’ 70,000 residents at the time were misused by The Villages of Lake-Sumter Inc., the Village Center Community Development District, and developer H. Gary Morse.

The settlement created the AAC and replaced the existing Resident Advisory Council with residents elected, over time, as the AAC Board of Directors (6 members/1 per Dist. 1-4, the Town of Lady Lake and Center District) assumed operational control over all amenity funds per the agreement. The settlement replenished accounts used to finance facility improvements.

WHAT HAPPEN WHEN THE AAC FAILS TO KNOW AND USE IT’S POWERS

In November 2018, The Villages shut down the Hacienda Hills Country Club restaurant, which was within the Developer’s authority, as all Championship Golf courses and Country Clubs are owned and operated by the Developer. The Developer then refused to consider interested restauranteurs. In April 2019, they teased selling the property to the Amenity Authority Committee (AAC).  However, the Developer never approached the AAC with a formal proposal to sell/purchase the Hacienda Hills Country Club.

The AAC was becoming cautious with the Developer offers since The Villages sold the El Santiago restaurant to the AAC for $350,000 in 2013. The AAC then spent $1.774 million in 2015 to demolish the existing building with a 2-year shuttered restaurant and build the El Santiago Rec Center. The AAC awarded a contract that was $200,000 higher than the lesser bid. The Villages then offered Tierra Del Sol to the AAC, which they declined after El Santiago.

In July 2020, residents watched in shock as The Villages demolished the Hacienda Hills Country Club and pool.

When the developer tore down the Hacienda Hills Country Club in 2020, they planned to build a multi-story apartment building. While The Developer owned the land, they needed the AAC to approve a change in use of the amenities from the previously approved Independent/Assisted Living to residential use.  This required the AAC’s approval to change the use of the Amenities that the AAC previously “gave” in 2015 to the developer for independent and assisted living to allow rentals of mixed-use/age-restricted and not be constrained by the independent/assisted living agreement of 2015.

In August 2020, The Villages threatened the AAC and residents during an AAC formal public meeting with building a parking garage or big box store on the site if the AAC didn’t provide the amenities required to create a multi-story apartment building. Under duress, the AAC approved the change and other “giveaways” to the District Manager at a 2020 AAC meeting in front of 300 residents. With only one dissenting vote from the AAC Board.

From September 2020 to September 2021, I rallied over 300 residents to resist the apartments professionally yet tenaciously. We had rallies to exchange communication and strategy. I was blessed to have a team of volunteers with the skills to elevate this problem to a level where The Villages listened and offered 24 Villas instead of over 200 apartments.  This was a full-time effort for me and my team. We created the Villages Promise Preservation Watch (V2PW) team, web page (now down), V2PW Nextdoor group with 441 members, and V2PW Facebook page with 259 members, which is still up for viewing.

I don’t blame The Villages/Developer/Families; they make business decisions. The various resident-elected oversight governing bodies exist to ensure that these business decisions align with and support the residents’ lifestyles. When residents lose something, it is typically because one of the residents-elected governing bodies acquiesced to The Villages.

I showed that professional resistance grounded in facts and persistence benefits the Village’s residents, avoiding a negative mob mentality or name-calling drama.

This is one example of when a resident-elected body didn’t protect the residents. Fortunately, Jennifer Parr (Developer/Granddaughter of Schwartz, Daughter of Morse) agreed to change from the multi-story apartment to villas, which are now completed and occupied.

A significant reality for all residents is that “we have a short attention span and even shorter memory.” We came here to a true utopia and want to enjoy an amazing lifestyle that we spent our careers earning. We deal with ill parents and illness ourselves with the ever impending mortality of death of loved ones, neighbors and ourselves. We don’t want to spend our time sitting in meetings, especially participating in local government.

However, due to our resident growth and constant turnover, it’s easy for new residents to remain unaware of the negative impact on the lifestyle that existed before their arrival, which is now gone. Each new resident only perceives what is present. Those who remember what was once available may come across as whiners with sour grapes. Most new residents arrive full of excitement, which is as it should be, and they may resent those of us who encourage them to get involved, stay informed, and understand that what exists today may not be here tomorrow.

THE AAC INTERGOVERNMENTAL AGREEMENT (AAC IGA)

The AAC is not a Florida government-recognized governmental entity and, therefore, cannot own real property. Thus, the agreement assigns the AAC to be a committee of the Center District that owns the property that the AAC funds to continue Amenity use after the Developer divests.

The AAC IGA is between one commercial district, the Villages Commercial Community Development District (VCCDD), four residential districts, Villages Community Development Districts (VCDD1-4), and the Town of Lady Lake.

The IGA creates confusion by titling the AAC Board as a Committee assigned to the Center District, yet in the agreement, at 3. Governing Body – Board of Directors states, “The AAC shall be governed by a Board of Directors …”. This confuses the initial framework of the agreement based on interpretations of a committee vs a Board of Directors.

Many residents and some board members believe that the AAC reports to the District Manager. This is inaccurate, as the AAC employs the District Manager and staff hired by the Center District Board of Supervisors, which The Developer elects, the majority landowner of the commercial space. While the AAC is not a Florida governmental entity, it does function as one for consistency with other Village boards and committees.

Florida’s government structure differs from many residents’ experiences, leading to misunderstandings about Community Development Districts (CDDs).

The Villages government process is complex. When I decided to run for the CDD1 Supervisor seat in January 2024, I knew I needed to understand the entire process from “end-to-end,” which I continue to study. I conducted extensive research on Villages Governance and have a presentation, The Villages Governance—The Rest of the Story (a tribute to a fellow seeker of truth, Paul Harvey), that I offer to resident groups.

Personal PERSPECTIVE   

I love The Villages and am proud to live here. I respect the Villages developers and the governmental construct that The Villages established to develop, maintain, and perpetuate The Villages.

The current expansive business model has evolved into a complex, multifaceted enterprise requiring more skilled oversight from elected boards than the original, laid-back developer focus. Skills that can make an immediate positive impact include previous county administrators, civil engineers, contractors, and individuals with legal education and experience. Additionally, many board members are not prepared to challenge the recommendations of the District Staff. Enhanced specialized education and experience would empower the boards to question the District staff for the appropriate benefit of the residents.

The VCCDD District Manager Staff “The Staff” demonstrate subject matter expertise and are prepared and responsive to inquiry. They show up organized and prepared.

However, the boards often bend to the pressure and frequently not-so-subtle push to accept agenda items, including approving construction contracts and moving on. The board members are usually not informed of the full scope of the topic/decision before the meeting, further exacerbated since the board receives the Agenda Packets less than a week before the meetings. Some Agenda Packets are over 400 pages. The tight meeting schedules for the CDDs 1-4 don’t allow for much discussion by the board during the meetings; due to the FL Sunshine law, there can’t be any discussion outside of the formal public meeting.

Your immediate support is critical to showing residents’ interest and commitment to involvement and signaling to the AAC Board of Directors and the District staff that you are paying attention and listening.

It’s equally important that your elected board members, AAC, and Community Development District (CDD) Supervisors understand that you elect them to protect and perpetuate our affordable lifestyle. Everyone understands that costs rise; however, due diligence, expertise, and a willingness to challenge are essential qualities in a Village elected board member.

Below is a table with the AAC Powers, Limitations, and Implementation sections from the IGA.

Get informed and get involved!

For additional information, to get on Patsy’s mailing list, or to request a presentation for your neighborhood or group, contact Patsy Oburn at [email protected].

Please attend the workshop. HELP US FILL THE HOUSE!!!

Thank you for your support!

Patsy Oburn

Hacienda North Resident

Oburn Disclaimer: This communication/presentation is not official CDD1 business. Patsy Oburn’s comments and opinions during non-official meetings are her own as an actively engaged resident and do NOT represent her role as a CDD1 Supervisor, the CDD 1 Board, AAC, The Villages, its staff, or the Sumter County Board of Commissioners.

	TABLE 1 – AAC POWERS
7	IGA Para 7, AAC Powers
7 .A.	Shall advise Center District on matters relating to Amenity Facilities, Amenity Fees, and services related to Amenity Facility and Amenity Fees.
7. B. I	Discretion over expenditures of all non-bond-required Amenity Funds, including Amenity Fees, Amenity Facility user fees, and all other Amenity Division Revenues, including but not limited to interest income, misc., security services, maintenance systems, other revenues, fund balance forward, special event services, joint services, security and management fees net of expenses associated with the management fee income.
B. II.	Rate setting of Amenity Facility user fees.
B.III.	Operational control over Amenity Facilities and services. Center District shall cause Center District staff to abide by the instruction of the AAC related thereto, but nothing in this section shall authorize the AAC to interfere with the day-to-day operation of the Amenity Facility.
B.IV.	Approval or disapproval over future debt secured by Amenity Fees or Amenity Facilities.
B. V.	Approval or disapproval over sale, assignment of trade of Amenity Facilities within the Center District Service Territory.
B.VI.	Approval or disapproval of future areas to be brought within the Center District Service Territory; however, the Center District shall be permitted to bring within the Center District Service Territory no more than 300 additional dwelling units without the approval or consent of the AAC.
B.VII.	The AAC shall be authorized to establish from time to time a maximum Amenity Fee for the Center District Service Territory such that an increase in Amenity Fees, whether due to the Consumer Price Index (CPI) resale of a home or otherwise, will not result in an Amenity Fee for a particular homesite within the Center District Service Territory having to pay in excess of such maximum amount.
B. VIII.	To appoint advisory, administrative, or operation subcommittees to assist the AAC in exercising and performing the powers and duties provided for under this Agreement.
B. IX.	To do all acts and things necessary or convenient for the conduct of its business in order to carry out the powers and duties provided in this Agreement.

TABLE 2 – AAC LIMITATIONS
8	IGA para. 8,  AAC Limitations
8. A.	All actions of the AAC shall comply with the terms, provisions, covenants, representations, and warranties described in the Bond Documents.  In no event shall an Amenity Authority Committee action cause a violation of the terms, provisions, or covenants of the Bond Documents or cause any representation or warranty described in the Bond Documents to become untrue.
8. B.	All actions of the Amenity Authority Committee shall be subject to and in compliance with the terms and provisions of the various Declaration of Restrictions, which provide for the Amenity Fee each resident in the Center District Service Territory is obligated to pay.
8. C.	All actions of AAC shall be subject to and in compliance with local, state, and federal laws and regulations, including, but not limited to, Florida Statutes 112, 255, 286, 287.
8. D.	In no event shall an act of the AAC result in a reduction of Amenity Facilities, including any reduction in services provided in exchange for the Amenity Fee.
8. E.	In no event shall the AAC cause or permit any funds received by Center District as a result of any lawsuit settlement to be pledged, spent, or hypothecated by Center District prior to the date on which the first AAC Board of Directors comprised of elected Directors for District 1, 2, e, 4, and Town of Lady Lake geographic regions in place, or in the event an election is not possible for any reason, the date on which the Directors appointed in lieu of election as contemplated in Section 4 is in place.
8. F.	In no event shall the AAC exercise any powers over fire services or funds related to fire services, setting or allocating management fees charged by Center District, or any other facility or activity unrelated to the operation of Amenity Facilities or Amenity Fees.
8. G.	To continue to provide a seamless community, all policies, procedures, fees, and services relating to Amenity Fees and Amenity Services provided to residents by Sumter Landing Community Development District and Center District shall be identical.
8. G.	…(excluding all items contained in the Project Wide Agreement utilized south of CR466)
8. G.	It is understood that the Amenity Fee rate applicable throughout the Village Center Service Territory varies and nothing contained herein shall be construed to mandate a uniform Amenity Fee.
8. H.	In no event shall any action by the AAC result in residents of the Villages outside the Center District Service Territory being treated differently than residents within the Center District Service Territory.
8. H	…(excluding all items contained in the Project Wide Agreement utilized south of CR466)
8. H.	It is understood that the Amenity Fee rate applicable throughout the Village Center Service Territory varies and nothing contained herein shall be construed to mandate a uniform Amenity Fee.

 

Since the Amenity Authority Committee is a committee of the Center District and not a separate legal entity, at the Center District Board of Supervisors meeting following each AAC Board of Directors meeting,

“Center District shall promptly enact, adopt, or put into place those rules, policies, procedures or other actions of the AAC within the scope of the powers set forth in Section 7(B) of this Agreement and not prohibited under Section 8 hereof, and shall enter into those contracts and disburse those funds necessary and proper to implement the actions of the AAC”

Patsy Oburn is a resident of The Villages.