Leesburg commission votes to dissolve Terra Oaks Community Development District

The Leesburg City Commission voted 4–1 on April 27 to approve an ordinance dissolving the Terra Oaks Community Development District (CDD), concluding the district holds no assets or maintenance responsibilities and that development activity has stalled after a family ownership split.

Dan Miller, Planning and Zoning staff, told commissioners the CDD — established under a 2021 ordinance — was created as a funding mechanism for streets, utilities and other infrastructure but that the project has not advanced. "The CDD is just a funding mechanism; it does not impact the city or incur any debt or liabilities to the city," Miller said, noting the applicant may reestablish a new CDD when the project resumes.

Jerry Earlywine, an attorney with Kutak Rock representing the applicant, explained the statutory process. "If you don't have any assets and you haven't gone anywhere with your projects, you can come back and ask the city to dissolve the CDD, or it can administratively dissolve," Earlywine said, adding that the district has sat idle for about five years and has not financed or completed projects.

Commissioners asked whether existing pipes or other utilities were in a condition the city could accept. City staff and Earlywine said some pipe and gas lines exist in places but that infrastructure has not been maintained and would likely not be acceptable for dedication to the city. "Whatever asset they may say they have, we're going to say no — it's not suitable to hook into the city system," staff said.

During discussion, commissioners noted the project had been the subject of a boundary amendment and that the property is now split between two ownership interests; one owner has pursued development while the other portion remains undeveloped. Earlywine said the typical outcome is either an administrative dissolution or a clean ordinance that allows the developer to reapply when market conditions or ownership matters change.

The ordinance cites Section 190.046(10), Florida Statutes, as the statutory basis for dissolution and referenced the original PUD zoning ordinance tied to the development. The commission recorded votes as: Cannizzaro yes; Peterson yes; Riemer yes; Berry no; Mayor Berry yes.

The commission did not specify an effective date during the meeting; staff said applicants seeking to resume work will likely need to reestablish a funding mechanism tied to development when they return to the city.