BRADENTON — The Bradenton City Council voted 4-0 to abolish a community development district that was to pay for infrastructure improvements in a riverfront subdivision.
Tidewater Preserve Community Development District petitioned the council to dissolve the taxing authority because of the lack of a market for CDD bonds, said the district's attorney, David Persson.
"The world has changed ... radically since 2006," Persson told the council this morning.
The district never issued bonds to pay for infrastructure improvements, and property sales have not materialized as expected, Persson said. The district's responsibilities — which up to now have largely been limited to maintaining the landscaping along an approach road — will be assumed by Tidewater's master homeowners association.
The county has an agreement with the Tidewater Preserve CDD to maintain the right of way along 48th Street Court East, north of State Road 64.
Persson said it costs about $100,000 in legal and engineerings fees and other expenses to operate the CDD.
The Florida Legislature created community development district statutes because it was less expensive for developers to borrow money on the bond market for common area infrastructure than through traditional lending institutions, such as banks.
Councilman Gene Gallo was absent from the meeting.