- November 21, 2024
-
-
Loading
Loading
U.S. Capital Alliance LLC, the developer of Hunter’s Ridge, has agreed to fulfill its impact fee credit agreement with Flagler Schools by Oct. 31 after missing several deadlines.
The developer owes the district $1.84 million.
U.S. Captial Alliance agreed on May 16, 2022 to pay Flagler Schools $3 million relating to the part of the Hunter’s Ridge development in south Flagler County. Of that amount, $2 million was for impact fee credits with $1 million paid as a donation in return for Flagler Schools consenting to the developer’s notice of a proposed change to terminate its obligation to provide the district with a 45-acre school site.
The developer made payments of $534,600 on June 20, 2022, and $621,300 on May 11, 2023, totaling $1,155,900 with the remainder of the $3 million due by Nov. 16, 2023.
In a conference call a month ago, the developer agreed to make a payment of $343,500 once the Woodside development would be closed the following week. When the district did not receive that payment, it sent a demand letter on Aug. 9 stating the company was in breach of the agreement.
William Whitson, the school district’s intergovernmental planner, told the board at an Aug. 20 workshop that a new agreement was then reached with the developer to pay the remaining amount by Oct. 31.
At the workshop, the board requested to add $69,000 in interest to the total. By the end of the workshop, Capital Alliance agreed in an email to also pay the interest by the amended agreement’s deadline. The board approved the agreement with the interest at its business meeting that night.
The board was concerned that not penalizing U.S. Capital Alliance in some form would send the wrong message to developers in the future.
“In essence, we’ve given them an interest free loan for eight months,” School Board Chair Will Furry said. “We had to call them. They didn’t even ask for an extension. I don’t want to send that message that Flagler Schools is giving interest free loans. Their payment should include interest that we lost.”
Furry said Patty Wormeck, Flagler Schools’ director of finance, calculated the interest owed.
The first payment of the $1.84 million was due days after the Aug. 20 business meeting with the remainder plus the interest due by Oct. 31. The dates were set based on two closings the developer had scheduled this month and in mid October, said attorney Chris Wilson, who represents the board on concurrency issues.
Wilson said consequences for the company defaulting were not written into the original agreement, which was unusual, but if the developer does not meet its scheduled obligation again it could be in danger of not being issued further permits from the county.
When discussing adding interest to the agreement, board member Colleen Conklin said, “Whatever we do is going to set a precedent. Going back negotiating for interest payment may set everybody ablaze. It sends a message that we are serious, that this is not something to take lightly.”
