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ITEM: UTILITY SERVICES AGREEMENT FOR TOWN SOUTHERN - VILLAGE ROYALE PHASE I NORTH DEVELOPMENT PROJECT
REQUEST: Approval of a Utility Services Agreement for Town Southern - Village Royale Phase I North development project.
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EXPLANATION: The Town Southern development project consists of a 392 unit apartment complex within the approved Village Royale Master Development. Village Royale is located in the Royal Palm Beach municipal boundaries but is within the Village of Wellington’s Utility Service Area. In exchange for the Village of Wellington agreeing to provide water and wastewater services, the developer must pay all applicable fees and charges, including connection charges. This Utility Service Agreement requires the payment of capacity charges in the amount of $1,427,100 prior to the Village providing service to Town Southern. Capacity fees are used by the Utility to expand plant capacity and to fund certain renewal and replacement projects that support plant capacity. These fees are exclusive of all required meter charges and deposits. The project is currently under construction and the developer anticipates the need for water and sewer within the next few months. Capacity fees are normally paid when a developer applies for a Building Permit for projects located in Wellington. Due to the fact that this property is in Royal Palm Beach, a separate Agreement is required (attached).
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: The Village will receive $1,427,100 in Capacity Charges from the developer to be used for utility system capacity expansion projects. Additional utility operating revenues of over $275,000 annually are expected from the new water and wastewater accounts.
WELLINGTON FUNDAMENTAL: Economic Development
RECOMMENDATION: Approval of a Utility Services Agreement for the Town Southern - Village Royale Phase I North development project.