REAL Exclusive Magazine

Lakewood Ranch Incorporation Study Group Newsletter #5.

In Today’s Economy, Is This the Right Time to Incorporate?

Prepared by the Lakewood Ranch Incorporation Study Group

The past few years have certainly been an economic roller coaster not only for Lakewood Ranch, but also for the whole world.  So, it is not surprising that some people might believe that in today’s economic climate incorporation should wait.  In fact, we actually believe that now is a very good time to incorporate.  Here are some of our reasons:

· The economic downturn, foreclosures, home sales, and declining home values—while certainly problematic—actually have very little bearing on incorporation.  Other than the advantages we have been enumerating in these newsletters, incorporating in boom times brings no additional value to the community; just as incorporating in today’s economy is not disadvantageous. This is because:

          o        Only about 10% of city revenue would come from ad valorem (Latin for “according to value”) property taxes.  The vast majority of income would be generated from state shared revenues and non ad valorem taxes.  Operation of the city of Lakewood Ranch will be funded through the $3-4 million in annual revenues that are currently being collected and used by the county, plus other non ad valorem sources.  These monies not only allow us to take care of immediate city needs, but also result in a substantial surplus (some $33-37 million over 10 years) which can be used for things like capital projects, transportation, economic development, disaster recovery, reduction of CDD assessments and other needed improvements. 

· Economic recovery is certainly in the wind, and Lakewood Ranch is a barometer of this change.

          o        We experienced a much improved sales year in 2010 with nearly 250 new home sales.  Projections for 2011 predict even higher sales numbers.

          o        Lakewood Ranch also is leading the market in commercial real estate with its 11% vacancy rate compared to the 13% in downtown Sarasota and 22% in the remainder of the local market.

          o        The average sales price came in at just more than $450,000.

· In addition to the improving economic forecast, incorporation can, in fact, actually help the economy of Lakewood Ranch.  A stable city government with greater ability to establish lines of credit, to issue bonds, and to build reserves is much more capable of weathering economic storms than a conglomeration of disparate neighborhoods with their own governing bodies.

· Cityhood also makes LWR eligible for state and federal grants to aid in economic development—monies and opportunities that might otherwise be out of reach.

So, on the surface waiting for a better economy to incorporate may seem like a logical argument, but the fact is, one has very little to do with the other. 

WHAT YOU CAN DO TO GET INVOLVED

Forward this email to your friends and neighbors within LWR to ensure they are informed.

If your neighborhood or group has not yet attended a charter draft presentation meeting, please contact us via email at IncorpStudy@lwrdv.com. We will be happy to arrange a presentation.

If you are interested in joining the Lakewood Ranch Incorporation Study Group, please contact us via email at IncorpStudy@lwrdv.com

If you want more detailed information on the pros and cons of incorporation, the incorporation process, FAQs, the charter, etc. visit our website at www.lwrdv.com/incorp.

Posted as  a public service announcement by REAL Magazine. REAL Magazine takes no position on the incorporation of Lakewood Ranch.