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File #:
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25-875
Version:
1
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Name:
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Type:
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Recommendation
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Status:
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Passed
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On agenda:
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6/17/2025
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Final action:
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6/17/2025
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Title:
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Approval and execution of Second Amendment to Village I - Horizon West Road Network Agreement (C.R. 545, a/k/a Avalon Road, Flemings Road, and Hartzog Road) by and among Orange County, Florida, Shutts & Bown LLP, SP Commercial Investors, LLC, K. Hovnanian Osprey Ranch, LLC, K. Hovnanian at Horizon Isle, LLC., Spring Grove Properties, LLC, M/I Homes of Orlando, LLC, Toll Southeast LP Company, Inc., Rockwell FL, LLC, Jen Florida 41, LLC, Taylor Morrison of Florida, Inc., DFC BB Groves, LLC, CH Spring Hill North, LLC, BB Serenade, LLC, Columnar Partnership Holding I, LLC, Titan-Liberty Lake Underhill Joint Venture, Village I 545, LLC, Ashton Orlando Residential L.L.C., Thomas J. Karr, Jr, Tami G. Karr, Donald R. Allen, Jr., Patricia A. Allen, and KHov Winding Bay II, LLC regarding CR 545/Avalon Road, Flemings Road, and Hartzog Road. District 1. (Roadway Agreement Committee)
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Interoffice Memorandum
DATE: May 29, 2025
TO: Mayor Jerry L. Demings and County Commissioners
THROUGH: N/A
FROM: Joseph C. Kunkel, P.E., Director, Public Works Department
CONTACT: Jon V. Weiss, P.E., Deputy County Administrator
PHONE: (407) 836-5393
DIVISION: Roadway Agreement Committee
ACTION REQUESTED:
title
Approval and execution of Second Amendment to Village I - Horizon West Road Network Agreement (C.R. 545, a/k/a Avalon Road, Flemings Road, and Hartzog Road) by and among Orange County, Florida, Shutts & Bown LLP, SP Commercial Investors, LLC, K. Hovnanian Osprey Ranch, LLC, K. Hovnanian at Horizon Isle, LLC., Spring Grove Properties, LLC, M/I Homes of Orlando, LLC, Toll Southeast LP Company, Inc., Rockwell FL, LLC, Jen Florida 41, LLC, Taylor Morrison of Florida, Inc., DFC BB Groves, LLC, CH Spring Hill North, LLC, BB Serenade, LLC, Columnar Partnership Holding I, LLC, Titan-Liberty Lake Underhill Joint Venture, Village I 545, LLC, Ashton Orlando Residential L.L.C., Thomas J. Karr, Jr, Tami G. Karr, Donald R. Allen, Jr., Patricia A. Allen, and KHov Winding Bay II, LLC regarding CR 545/Avalon Road, Flemings Road, and Hartzog Road. District 1. (Roadway Agreement Committee)
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PROJECT: N/A
PURPOSE:
The Roadway Agreement Committee has reviewed a Second Amendment to Village I - Horizon West Road the Hamlin 30 PD Adequate Public Facilities and Road Network Agreement (this "Second Amendment") by and among Shutts & Bown LLP, SP Commercial Investors, LLC, K. Hovnanian Osprey Ranch, LLC, K. Hovnanian at Horizon Isle, LLC, Spring Grove Properties, LLC, M/I Homes of Orlando, LLC, Toll Southeast LP Company, Inc., Rockwell FL, LLC, Jen Florida 41, LLC, Taylor Morrison of Florida, Inc., DFC BB Groves, LLC, CH Spring Hill North, LLC, BB Serenade, LLC, Columnar Partnership Holding I, LLC, Titan-Liberty Lake Underhill Joint Venture, Village I 545, LLC, Ashton Orlando Residential L.L.C., Thomas J. Karr, Jr, Tami G. Karr, Donald R. Allen, Jr., Patricia A. Allen, K. Hov Winding Bay II, LLC, and Orange County to amend the terms of the Village I Horizon West Road Network Agreement originally approved by the Board on January 28, 2020, and recorded as Document number 20200109451, as amended.
The Second Amendment makes several substantive amendments to the Original Agreement, as amended by the First Amendment. First, the Original Agreement provided that the County would be responsible for cash reimbursement to the Village I Escrow Agent for the cost of CR 545/Avalon Road (Road Segment 1) as well as the incremental costs of upgrading Flemings Road (Road Segments 5 and 6) from a 2-lane Adequate Public Facility (APF) roadway to a 4-lane collector roadway. Pursuant to the Original Agreement, the County originally estimated this reimbursement to be approximately $7.4M based on cost estimates developed prior to 2020. Construction costs have increased significantly since 2020 and would require now a budget amendment to increase the County’s reimbursement funding obligation. However, Section 3.1 of the proposed Second Amendment amends key provisions in the Original Agreement that provides for the award of transportation impact fee credits in lieu of cash reimbursement. This amendment would have the benefit of allowing the County to reprogram its current CIP dollars to be applied to other priority transportation projects in west Orange County. It is anticipated that these projects would be those east-west corridors consistent with the terms of the Interlocal Agreement Between Lake County and Orange County Related to Future Public Roadways approved by the Board on July 11, 2017.
As to Flemings Road, the Second Amendment now defines the incremental cost share of construction attributable to the County to be 62% of the total cost of construction for the 4-lane project, with 38% of the construction cost to be borne by the Village I owners without reimbursement or compensation. The 62%-38% ratio resulted from staff’s technical review of construction and bid documents to determine the incremental cost components and share. The proposed schedule for Flemings Road is also adjusted based on the current status of design plans, environmental permitting, and opportunities to phase construction. Many of the project delays have been outside of the control of the Village I owners or the County. The proposed outside date for Substantial Completion of Flemings Road per the Second Amendment is now on or before November 30, 2026. There are also modifications to terms related to reimbursement for APF lands and lands for joint use ponds, as well as the funding of escrow accounts for the County’s potential acquisition of uncontrolled lands. Finally, there are minor amendments to the Trip Allocation Threshold associated with Flemings Road due to the major consideration of credits versus cash reimbursement.
The second major change with the Second Amendment is the introduction of a new partnership project for Hartzog Road. Section 3.2 defines a new Road Segment 7 which provides for the needed completion of Hartzog Road as a 4-lane roadway generally from east of Sunset Harvest Drive west to CR 545/Avalon Road, a distance of just over one mile. Portions of Hartzog Road were originally delivered pursuant to a separate Hartzog Road Right-of-Way Agreement approved by the Board in 2008, as supplemented in 2019 and 2022 (“Hartzog Road Agreements”). However, the Hartzog Road Agreements provided the option, but not the obligation, for the developer to construct Hartzog as a 4-lane road. As such, the easterly portion of Hartzog Road was constructed as a 4-lane facility, with the westerly portion as a 2-lane facility.
The Second Amendment introduces similar provisions and terms for Hartzog Road (Segment 7) as with other road segments, including the process for County’s approval of design, engineering, and permitting of the additional two lanes of roadway, funding reimbursement in the form of transportation impact fee credits with a value not to exceed the County’s 2025 cost-per-lane mile costs, and award of Trip Allocation Thresholds for the design and commencement of construction, and completion of construction for the new Segment 7 totaling 658 trips. The Second Amendment importantly provides for an accelerated delivery schedule for Hartzog Road, including commencement by March 1, 2026 and completion by December 31, 2026. This schedule should support Orange County Public Schools in the delivery of a new relief elementary school adjacent to the project.
The third major change with the Second Amendment is incorporating the changes to the Cumulative Trip Allocations in Table 2 of Section 10 of the Original Agreement. Section 3.6 of the Second Amendment modifies Section 10 by increasing the cumulative trips available to the Village I Owners, largely due to the addition of the Hartzog Road project as a new partnership project. With the increase in cumulative trips from 4,759 to 5,417 trips, several road segments/thresholds were combined to provide for more efficient and predicable project delivery. Flemings Road (Road Segments 5 and 6) will now be delivered as one project, as will the northern segments of CR 545/Avalon Road (Road Segments 1 and 2). Additionally, the final Trip Allocation Threshold of 477 trips remain associated with the completion of all seven road segments. While the cumulative trips within the Second Amendment increases beyond a level needed solely by the current signatory owners, this change has the potential to make trips available in the event of a future request by a non-signatory owner to join the agreement. As an alternative to new owners becoming a party to the agreement, Section 4 of the Second Amendment provides for the potential for a future amendment in the event of available County funding to accelerate the delivery of remaining roadway improvement.
Lastly, the Second Amendment makes a series of adjustments to other provisions in the Original Agreement. The Second Amendment recognizes that the project cost estimates as reflected in Exhibit “A-3” are out of date and replaces those estimates as the basis for staff approval with a signed and sealed cost estimate by the Engineer of Record (EOR). Construction costs that exceed 110% of the EOR’s cost estimate require Board approval, as would change orders exceeding 10% of the initial construction contract price. Additionally, the Second Amendment also provides for the notification of a new, qualified Project Engineer assigned to the production of design plans for the northern segments of CR 545/Avalon Road (Road Segments 1, 2, and 3). There are also minor changes related to the sale or assignment of transportation impact fee credits to other owners within Village I or Horizon West, and a clarification to a section noting that trips are not required for permitting of residential homes through the preliminary plat process as now provided for in Florida Statutes.
The Roadway Agreement Committee recommended approval on April 9, 2025.
The Specific Project Expenditure Report and Relationship Disclosure Forms are on file with the Transportation Planning Division.
If you have any questions, please feel free to contact me at 407-836-5393.
BUDGET: N/A
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