Under legal threat, Mount Dora’s City Council approved a controversial mixed-use development this week that blows past height limits in the city’s Wolf Branch Innovation District, but some council members voiced doubts the project would ever be built as proposed.

The Tuesday night approval of the settlement and rezoning with AMCO Development puts the company’s suit against the city to bed for now. It will also allow the developer to submit plans for phase 1 of their mixed-use master-planned community for city review, according to a report in GrowthSpotter.

AMCO’s plans call for buildings as tall as 175 feet tall, which is a reduction from the developer’s initial proposal of towers as tall as 300 feet. The Council voted to deny the developer approval in February 2023 because the building heights weren’t aligned with the Wolf Branch Innovation District’s previously approved maximum height of 100 feet.

The current plans also call for about 1,800 residential units, some of which would be age-restricted, up to 950,000 square feet of commercial space, a 100,000-square-foot convention center, 325 hotel rooms, a 60,000-square-foot medical office, a 125,000-square-foot self-storage facility, a preschool, and an underground parking garage. Additionally, there would be a 5.2-acre man-made lake with walking trails and a water park that would be accessible to the public.

For some, the project has come to symbolize the breakneck growth in Lake County, which is struggling as development pressures in Central Florida transform its once-sleepy communities.

The battle over the AMCO development has stretched for months. In February, the Mount Dora Council rejected a settlement with the company after the developer took legal action against the City, in response to the Council’s denial of the project.

In May, Special Magistrate Patrice Boyes sided with AMCO in court, concluding that the City previously executed a series of actions indicating that it would approve the project. Those actions included an annexation of the property in 2022, approval of land use changes, and the fact that city staff had never recommended denial.

Boyes recommended the City Council approve the Planned Unit Development (PUD) with a maximum building height of 175 feet, and gave the city a June 22 deadline to take action on the settlement. Inaction would mean approval by default.

During Tuesday’s meeting, City Attorney Patrick Brackens warned Council members of “the risks that the city might face should they reject” the settlement.

“The practical effect of [rejecting the settlement] would be that you would likely expect to receive [further legal action] in the near future, should we not reach a resolution of this matter. This settlement agreement allows you the opportunity to not only put a special magistrate proceeding behind you. It also gives you the opportunity to put the current circuit court proceeding behind you, and it give you a release through today of any and all other claims that may be brought based on the past actions,” Brackens advised.

Brackens warned of a “worst case” scenario that could allow the developer to build even taller buildings than 175 feet if the settlement is rejected.

The Council, despite voicing reservations, voted to approve the settlement by a margin of 6-1. Council Member Nate Walker was the lone no vote.

“Mr. Brackens mentioned that if we go to court proceedings that we will be back to a [taller [height]. Where I’m struggling is, how do we get back to 100 feet?”, he said.

Other Council members agreed with Walker’s reservations about the height of the project’s buildings. However, they also voiced concerns about the financial fallout the city could endure if they engage in a lengthy legal dispute.

“I refuse to put the city at risk. The dollars that we’re going to spend on legal fees…I’d rather see us spend our time and energy on roads and our sidewalks and dealing with some other things,” said Council member Dennis Dawson, who also expressed doubt that the project will ever be built as proposed, citing the region’s struggling office market.

“Nothing’s going to get built to that height. There’s no market for it out there. And frankly, I would be surprised if we ever approached 175 feet,” said Council member Doug Bryant, in agreement with Dawson.

“Are we giving up the fight? Yes, we are. We’re conceding that tonight if we vote for this, but it’s not the end of the journey”, Bryant continued, noting that the developer will still have to get site plan approval for each individual phase of the project.

Brent Spain, an attorney from Theriaque & Spain representing AMCO, told GrowthSpotter that he is excited about the City Council’s decision.

“We are very pleased with the City Council’s decisions last night to settle the ongoing litigation by accepting the Special Magistrate’s Recommendation, as modified by the parties, and to ultimately approve the MDMU PUD. As previously stated, this project will be the much-needed catalyst for the City’s long-planned Wolf Branch Innovation District and will have a significant positive economic impact on the City in terms of job creation, diversity of uses, and tax revenue. We look forward to working with the City as the project now moves into the site development plan stage and, thereafter, the start of Phase 1 construction,” Spain said.

AMCO now has 24 months to prepare and submit a site plan for phase 1 of the mixed-use project. However, if the developer doesn’t meet this deadline, they are free to submit an extension request with the City of Mt. Dora. If built, it would be the first project within the 830-acre Wolf Branch Innovation District.

Have a tip about Central Florida development? Contact me at (407)607-8160 or TyWilliams@GrowthSpotter.com. Follow GrowthSpotter on Facebook and LinkedIn.