Artesia home buyers will pay $18.8M cost

The bulk of an estimated $18.8 million bill for installing utilities, making roadway improvements and landscaping neighborhoods in the planned East Naples residential development Artesia will be paid by residents of the future community, Collier County commissioners decided Tuesday.

WCI Communities hopes to begin work next month on the 725-unit community and recreational area, located southwest of Barefoot Williams and Tower roads, near Rookery Bay National Estuary Sanctuary.

But before bringing the nearly 262-acre project to life, developers had to determine how to fund the construction of the community’s infrastructure, which includes roads, water and sewer services, landscaping and irrigation systems.

In what Collier County planners called an increasingly common tactic, WCI attorneys asked for and received permission to designate Artesia as a Community Development District at the County Commission meeting Tuesday. The CDD designation will allow developers to fund the construction of the community’s infrastructure through investor bonds, which will be paid back over time through special taxes levied on homeowners, said Marcia Kendall, a county planner.

Kendall said she’s not sure what prompted the popularity of CDDs during the past few years, but said planners have their hands full with up to 17 different applications for the designation.

Developers have something to gain by pushing infrastructure costs onto future homeowners, instead of paying for it themselves. WCI planners estimate the infrastructure will cost more than $18.8 million to complete, and will be repaid by residents through 2012, and possibly beyond.

But one possible consequence could be having to lower sale prices on the homes, since owners will be subjected to higher taxes to repay the bonds, explained Randy Cohen, director of the county’s Comprehensive Planning Department.

Richard Yovanovich, attorney for WCI, said his clients are well-versed in managing CDDs. WCI home buyers, he said, know what they are in for before the contracts are signed.

“WCI has a history with CDDs,” Yovanovich told commissioners. “They go above and beyond with the disclosures they make to respective purchasers, who, a lot of them, I’m sure, don’t know what a CDD is.”

Developers sweetened the pot for commissioners, promising to reconstruct and widen all of Tower Road and two-thirds of Barefoot Williams Road. Developers also will add 8-foot-wide bicycle paths and sidewalks.

MacKay Jimeson, public relations manager for WCI, said the community will have an environmental focus, primarily due to its proximity to Rookery Bay.

The residential component will include 385 single-family homes, 196 villa homes and 144 multifamily condominium units. Homes likely will range in price from $300,000 to $1 million, he said.

Artesia will also include several recreational aspects including a pool, volleyball and tennis courts, nature and bicycle trails and a clubhouse, containing a fitness center and dining area. Jimeson said developers hope to begin construction on the clubhouse next month.

Developers have been working with the county since 2003, and have received all of their zoning approvals and most of their site plan approvals, Yovanovich said. WCI is in the process of marketing and selling the future homes, he said.