Hammock Bay Community Development District: A Comprehensive Overview

Introduction

Nestled in Freeport, Florida, the Hammock Bay Community Development District (CDD) serves as a cornerstone for a thriving 3,000-acre master-planned community along Choctawhatchee Bay. Established to facilitate the financial backbone of this vibrant residential area, the Hammock Bay CDD ensures that infrastructure development supports a high quality of life for residents. Hammock Bay CDD, created in 2004, operates as a special-purpose government entity under Florida law, focusing exclusively on servicing debt for community infrastructure without owning physical assets. This narrative explores the Hammock Bay CDD ’s history, governance, financial responsibilities, and its role in supporting one of Northwest Florida’s premier communities.

Establishment and Legal Framework

Hammock Bay CDD was officially formed on February 10, 2004, through Ordinance 2004-01, enacted by the City Council of Freeport, Florida (City of Freeport). This ordinance, effective February 2004, laid the foundation for the district, enabling it to finance and manage infrastructure development. In 2007, the Hammock Bay CDD ’s boundaries were amended via Ordinance 2007-01, effective February 2007, to refine the boundaries. These ordinances align with Chapter 190 of the Florida Statutes, which governs community development districts and outlines their authority to issue bonds and manage debt.

The Hammock Bay CDD operates as a local government unit, similar to a city or county, but with a narrower scope. It lacks regulatory powers and focuses on administrative, legal, and financial services. Governed by a five-member Board of Supervisors, initially elected by landowners and later by qualified electors, the Hammock Bay CDD adheres to Florida’s “Sunshine” law, ensuring transparency through public meetings and records.

Development Phases and Community Features

Hammock Bay was developed initially beginning with two phases, one of which was developed by the infrastructure from the bond. Now reflecting its growth from an ambitious vision to a bustling community. Spearheaded by Freeport 860, LLC (a limited liability company in which Mr. Jay Odom currently serves as its manager), the Hammock Bay development began in 2004 with the acquisition of 3,000 acres, approved for over 6,000 residential units.

The community boasts an array of amenities, including:

Over 14 miles of bike and hiking paths
Two community pools, a fitness center, and pickleball/tennis courts
A town center with a replica 1920s general store and brewery

These facilities enhance the community’s appeal as a family-friendly, environmentally conscious destination.

Financial Responsibilities

Hammock Bay CDD’s primary function is to service debt incurred from bonds issued to fund certain limited public infrastructure.

On November 3, 2004, the District issued its $6,345,000 Special Assessment Bonds, Series 2004A and its $10,810,000 Special Assessment Bonds, Series 2004B (the “Series 2004 Bonds”), to finance a portion of its capital improvement plan known as the “Series 2004 Project” which consisted of certain roadway, utility and drainage improvements within and benefitting Phase 1 of the Hammock Bay development (499 single family lots to the east of Great Hammock Bend). The Series 2004 Project was completed on April 3, 2008. The Series 2004B Bonds have been paid in full. The Series 2004A Bonds were secured by Series 2004 Assessments levied and imposed on benefitted lands within the District within Phase 1 of the development.

On January 27, 2016, the District issued its $3,175,000 Special Assessment Revenue Refunding Note, Series 2016, in order to refinance its then outstanding Series 2004A Bonds. Through the refunding, the Series 2004 Assessments were reduced by 21.255% annually. Hammock Bay CDD administers this debt, ensuring annual bond repayments, with the final payoff scheduled for May 2035.

The Hammock Bay CDD did not issue similar debt for the construction of similar improvements within Phase 2; rather, those improvements were constructed and financed by the developer.

The Hammock Bay CDD has no physical assets, distinguishing it from other community development districts that may manage facilities directly. Instead, it focuses on financial oversight, conducting public hearings for budget adoption, and maintaining transparency in its operations.

In addition to the assessments securing the Series 2016 Note, the District also imposes operations assessments, which are determined and calculated annually by the Board in order to fund the District’s annual budget that consists of expenses necessary to operate the Hammock Bay CDD in accordance with Florida law and service the Hammock Bay CDD debt.

Utility Services

The City of Freeport plays a critical role in supporting Hammock Bay by maintaining sewer and water services. The City’s water department aims to provide high-quality service at the lowest possible cost, managing an extensive distribution system (Freeport Water). The sewer department operates miles of sanitary sewer mains and a wastewater treatment facility with a capacity of 600,000 gallons per day, regulated by the Florida Department of Environmental Protection and the U.S. Environmental Protection Agency (Freeport Sewer). This division of responsibilities allows Hammock Bay CDD to concentrate on its financial obligations, ensuring efficient community operations.

Governance and 2025 Objectives

Hammock Bay CDD is managed by a Board of Supervisors, responsible for setting policies and overseeing financial operations. The Board operates under Florida’s ethics and financial disclosure laws, with meetings advertised in local newspapers and conducted publicly. The Hammock Bay CDD’s fiscal year 2025, spanning October 1 to September 30, includes goals centered on effective debt management and public education about the Hammock Bay CDD’s services (Hammock Bay CDD).

Conclusion

Hammock Bay CDD exemplifies effective financial stewardship in supporting a premier master-planned community. Through strategic debt management, collaboration with the City of Freeport, and a commitment to transparency, the Hammock Bay CDD has facilitated the growth of a community that blends natural beauty with modern amenities. As it progresses toward its 2035 debt payoff, Hammock Bay CDD continues to lay the groundwork for a prosperous future in Freeport, Florida.