By Steve Fussell
Fruitland Park and Leesburg seemed poised for a nasty fight over who would provide electrical service for the proposed 2,038 homes planned in the new Villages of Fruitland Park until an agreement hammered out by city managers Rick Conner in Fruitland Park and Ray Sharp in Leesburg settled the matter.
City ordinances to enact the agreement are fast-tracked for approval—Fruitland Park will hear its first reading at a special meeting Thursday night and Leesburg commissioners will take up the matter at their regular meeting on Nov. 18. Fruitland Park is expected to finalize its end of the agreement at its regularly scheduled meeting on Nov. 21.
The agreement is the last major hurdle to be cleared before The Villages closes on its contract to acquire almost two-thirds of the Pine Ridge Dairy tract in Fruitland Park bordering the Sumter County line.
The Villages is expected to close on its acquisition early next month and begin the securing development approvals. Site work could start as early as next summer and construction of new homes could start by the fall. Villages officials have said they expect to build and sell all 2,038 homes within one year.
Under terms of the agreement, Fruitland Park will extend its contract to buy electric power from Leesburg for another five years.
The agreement means Leesburg Electric will spend an estimated $7.6 million to provide underground electrical service to residents in the Villages of Fruitland Park, Conner said.
Fruitland Park Commissioner Bob Gunter said Leesburg Electric could see profits ranging between $1 million and $1.5 million annually from the deal.
The agreement also means Fruitland Park will continue to receive almost $600,000 in annual revenues from a franchise fee Leesburg Electric pays the city and franchise taxes paid by residents and businesses.
By comparison, Fruitland Park property taxes are expected to generate revenues of approximately $730,000 this year.
