Monday, October 19, 2015

Initial post of Myths and Facts regarding the MiraBay seawalls revised 2015 10 28

The purpose of this blog is to try to diffuse some of the "propaganda" being disseminated at the direction of the Harbor Bay CDD Board Chairman via our management company representative, District Manager Matt Huber.  The previously distributed materials were obviously designed to make us believe that the most expensive (UPGRADE) "Option 3" is much preferable to the least expensive approach, "Modified Option 1".  Have you noticed that many of the more recent email blasts have included a disclaimer that not all Board members are in agreement with the information being published?

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So let's examine the MYTHS -vs- FACTS 
regarding the seawall fix:

MYTH: The terms "seawall" and "retaining wall" are synonymous. 

FACT: That is blatantly false. retention walls are built above the level of the structures they are built to protect.  Anyone can see that our seawalls are built below the foundations of our homes. The seawalls are built to stop the abutting properties from eroding into the canals. 

Retaining Wall



Seawall

MYTH: Those seawalls will help protect us during a flood.

FACT: From a P.E. (Professional Engineer) with 25 years of flood expertise: "Those canals make your homes more vulnerable to a flood from a surge as they bring the source of the surge nearer to your homes."  Land and retaining walls would slow or stop a surge. The open water in the canals will continue to grow as the wind whips the water from the bay, as there is nothing there to slow it.



MYTH: Without the canals, there would be no MiraBay - as they are a requisite for our surface water drainage.

FACT: The canals are a necessary part of our water management system because the developer chose to make it so. There were alternatives; but the canals maximized the lot prices.

ANOTHER FACT: The Florida statute that created the CDD concept (Title XIII, Chapter 190 for those desiring to study further. Here's he link: FL Statute for CDDs) was designed so that the cost for the infrastructure of a development would be born by the property owners (members of the CDD) so the developer could sell the lots at a lesser price.  I have seen no evidence that Newland - operating as Terrabrook - which protects the parent company from most litigation - ever discounted any lots in MiraBay!

MYTH: Every property owner in Mira Bay benefits from the canals in numerous ways.    


FACT: Since only waterfront property owners are allowed to use any type of motor driven watercraft in the canals, there can be no doubt as to who benefits most from the seawalls. As mentioned, relative to a surge, the canals create more harm than help. MiraBay has been, and continues to be marketed toward "waterfront living".  But, if you don't have a waterfront property, you don't really enjoy "waterfront living"!  (Many of us were told by our realtors and, reportedly even by Newland sales staff that off-water properties could use the boat slip to water their boat or other watercraft - only to be told later that such is not the case.) 


ANOTHER FACT: The primary beneficiary of the canals to date has been the developer through premiums levied on waterfront lots!  The developer fronted the monies for the infrastructure, including the seawalls; and then they sold everything - except the rights of way to the water in the canals - to the CDD.  So, after recovering their costs, they were paid again for those seawalls as a part of the lot premium!

ANOTHER FACT: We must do something.  And, even though there is no doubt that canal front homes benefit most from the seawalls, all of us will see depreciation in property values if we fail to fix the problem.  If those waterfront properties lose value, we all lose value. 


ANOTHER FACT: MiraBay property owners will see property values drop regardless, due to an increase in the CDD fees - as planned.  In fact, according to the bond underwriter, the most expensive option could increase our CDD fees by 43%! And, you don't have to be a "Ben Carson", to realize that CDD increase would result in a significant drop in everyone's property value! A 20% drop, initially would not be surprising. And, as the FOR SALE signs keep popping up, the values will likely spiral downward! Imagine: Your $300,000 town home drops $60,000 almost overnight; your $1.5 million property drops $300,000! 

My realtor tells me that home sales, new and resales are already impacted by the anticipated fee increase!

MYTH: (IMPLIED)The more expensive option (Option 3) will be the less expensive option over time, as it will last much longer.

FACT: Our own engineers, the Langan group stated at a previous meeting that either option will outlast most of us.

MYTH: The rip rap fix (Modified Option 1) narrows the navigable waterways of the canals. 

FACT: The proposed rip rap will be well inside the reach of the current docks. The waterways will not be narrowed.

MYTH: The rip rap would expose small watercraft operators to increased danger.

FACT: That could be the case if other steps are not taken to mitigate the exposure to danger. There are various options that may be considered.  More on that at a later date.

MYTH: The rip rap will increase our dredging costs.

FACT: Not one dredging company has indicated that it will cost more to dredge if the rip rap is used!

ANOTHER FACT: Rip rap is natural. Purists would much prefer the natural look of rip rap versus a seawall composed only of artificial materials! 


Rip Rap against seawall

MYTH: Assessing all property owners is the only way to pay for the necessary fix.

FACT: I've got an idea that may result in no cost to the CDD (us)!  I'll expound on that after I get closer to that solution . . .

MYTH: It's already decided that the most expensive option will be chosen.

FACT: I am somewhat certain that the only Board member who has firmly decided on Option 3 is the Chairman, Bob Collins - who has taken it upon himself to manage this project.  Is his position influenced by the fact that his home is on a canal, or is he looking out for all members of the CDD (which is his job)?  Even the P.E., with whom I consulted about the flood protection misrepresentation, described the communications released to us as "PROPAGANDA to promote option 3!"


  It takes 3 of the 5 Board members to vote to spend our money, and it's obvious that not all are yet in agreement! Let them know how you feel! They can be voted out of office if they fail to protect our interests!

ANOTHER FACT: Our CDD spent years in litigation - filing suit against ALMOST every entity involved in the original design and installation of the seawalls.  But, which party wasn't named in the suit? Newland Communities (legally known as Terrabrook.) Was it because they controlled the CDD then? (Kind of a rhetorical question, huh?) 

About the author: Thomas A. Peterson moved into MiraBay in May, 2009 and resides at 110 Aberdeen Pond Drive in the Anchor Cove Town Homes with his wife of 45 years, Kathleen.  Retired (disability) since 1999, he doesn't have much to do except Google everything from A to Z and write about what he finds!  The author makes no claims to copyright of any images appearing in this blog.  This blog may be reprinted and distributed at will by any reader; in fact, it is encouraged!


5 comments:

  1. hi Thomas, Im looking at possibly building in mirabay and stumbled upon this rather interesting article. I already find the CDD to be quite steep but your saying that by going with option 3 the fees could increase 43%? I like to plan for the worst and know all possible scenarios. Is it ever possible for the CDD to go down and what were the CDD fees before the wall needed fixing. Thanks in advance.

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  2. Hi, Josh. Based upon the projected cost of what the Chairman of the CDD Board wants (Option 3 everywhere), the fees could easily be increased 43% (they are, reportedly already the highest in the County.) And, they have admitted they are having trouble marketing our bonds. One broker turned us down; another seems confident he can get an issue at junk rates. If they can't sell the bonds, there will be a cash assessment - which was illustrated back in 07/2015 at as much as $27,000 - depending on the frontage width of your lot. Since that time, we've had two more workshops wherein the engineering firm (Langan) has told us, each time that we have more "emergent" sections - requiring the most costly fixes. While the Board seems to be working toward a more pragmatic fix (a combination of Option 1 and 3), with lesser cost - but no definite numbers yet - we have spent $5.5 million since 09/2014 in testing and emergency repairs. Go to our residents' forum on Facebook, "Mirabay Forum re Harbor Bay CDD", ask to join (I'll approve you) and see for yourself how upset the informed residents are. Most still have no clue, and many new owners have come forward to tell us their builder or the previous seller never mentioned the problem. They and the CDD will tell you the matter was litigated, we accepted an $8.3 million settlement and repairs are underway. What they don't tell you is we spent $6 million in litigation costs (netting $2.3 million) and they were originally seeking $39 million - which was the estimated cost to fix all of it with an Option 3 approach. Bottom line: Josh, I will never live in any CDD again. When you get 3 of the 5 supervisors who form a clique, they get everything they want. Residents have no right to vote on anything except the election of the Board of 5 supervisors. If 25 friends of those supervisors want a new $220,000 clay tennis court, they get it - even though there are very few tennis players here. And that decision was made while trying to borrow upwards of $25 million to fix the wall! It's as bad as our national approach to deficit funding. No limits on when and how much fees can be raised; it's all in the hands of 3 people. I've tried involving the County Attorney, the State's Attorney, our state Senator and our state congresswoman - all without response. I do have one of two current complaints filed against the chairman with the FL Ethics Commission. Both have reached the second level (deemed worthy of investigation) of a 3-level process they must go thru before referral to the State Attorney General. Neither will likely be resolved either way until after the decision about the fix is made and the assessment is approved (by those 3!) Oh, and I've been ostracized by the numerous friends of the powerhouse 3 - following a CDD meeting last month in which the Chairman called out the three of us (residents) who are involved in two separate Ethics claims against him, threatened us, and anyone else who ever files a complaint against him with a promise to seek recovery of his defense cost - estimated at $75K. The CDD has D&O coverage who would defend him and cover any financial costs - unless it's determined that he broke any laws. (We claim he did.) So, he insisted that the D&O attorneys weren't good enough for him and got the Board to commit to covering his personal attorney fees with an immediate $25k retainer. He gave me and the other complainants credit for putting all those costs on the backs of the taxpayers (CDD members) - even though it was his actions that triggered the complaints. The CDD is not run as a democratic republic, it's a Triarchy! The CDD laws were written in 1980, apparently by the developers! Hope that helps! Very smart of you to look closer. So many people come in here and don't even know what a CDD is. Only those buying from builders (first owner of a home in a CDD) receive any disclosure at all. No disclosure upon resales. That's FL law!

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  3. Thank you for that Thomas. Ive lived in a Cdd/hoa community before and they are all the same. Do you happen to know what the fees were before the wall went faulty?

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  4. I just read through about all i can handle for one night. it sounds like progress if finally starting to be made, whether its the right progress or not. from my understanding it would take 30 years to pay for the repairs correct? Does this mean 30 years from when they increase the cdd fee or have they already increased the fee and started putting money towards the project? Id imagine they increased the fees once they found out about the problems. If so where has all that money gone since. I see some has gone to emergency repairs but depending on what the fee increase was its hard to determine if its being distributed correctly. I have requested to join your fb group and I appreciate your time. we will be there this weekend looking at new construction but it seems I have a lot more to think about now.

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  5. Hello,
    Does anyone have any new updates? We are also considering purchasing in Mirabay. There are many homes for sale and that concerns me. I know about the CDD and the costs. I am just not sure when the CDD expires and then wonder if the infrastructure can be maintained if those CDD funds truly expire. We are looking at waterfront units. Thanks

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