Mattamy Homes has started transforming the 50-year-old Forest Oaks Golf Club, which it acquired in December 2023 for $10 million, into a development of 372 homes west of Lake Worth Beach in an unincorporated area of Palm Beach County. The property appraiser estimated that it had a market value of $7.3 million.
The homebuilder first filed its plans more than four years ago, but some homeowners from Lucerne Lakes fought the development plans, arguing that it would harm their quality of life. The golf course is surrounded by Lucerne Lakes, a community of nearly 2,000 homes built in the 1970s.
Circuit Court Judge G. Joseph Curley ruled last year that Mattamy Homes was not bound by an agreement that restricted the use of the golf course to recreational activity because the agreement was never formally recorded with the Palm Beach County Clerk’s Office. Homeowners argued they purchased their homes based on the reliance that the recreation area would always be there.
The case was settled shortly after the court ruling with residents agreeing not to oppose the development before any governmental entity. In exchange, Mattamy Homes agreed not to seek a reimbursement of legal fees from the homeowners.
The site is east of Florida’s Turnpike on Lake Worth Road. At one time, Mattamy Homes was looking to build more than 600 homes on the 79-acre site.
“We’re grateful that the court’s decision provided such a clear conclusion that supported what’s been our position throughout the process,” said Dan Grosswald, president of Mattamy Homes’ Southeast Florida Division following the court ruling.
Grillo Golf Management, the operator of the golf course, testified before the county commission three years ago that the course could not compete with county-owned operations.
The conversion is the latest in a series of golf-course conversions in South Florida. Palm Beach County, by itself, has seen more than 10 conversions in the past five years. Vacant land is difficult to find and builders gobble up failing golf courses as soon as an owner puts it up for sale.
Mattamy Homes has built many residential projects in Palm Beach County
“This new community (Forest) will bring much-needed residences to the central Palm Beach County area, which has experienced surging demand and rapid price appreciation,” Mattamy Homes said on its web site. “We are confident that our initiative will enhance neighboring property values and bring numerous advantages to the entire community.”
Access will be through a traffic light on Lake Worth Road with a future connection to Charleston Street. Nearly half of the 79 acre-tract would be left as open space.
The community will offer two collections of townhomes ranging from 1,374 to more than 1,900 square feet with three bedrooms, two and one-half baths, and one or two-car garages. The single-family homes will range from 2,102 to 2,846 square feet with three to five bedrooms, two and one-half or three bathrooms, and two-car garages.
Mattamy Homes hosted a commemorative groundbreaking event on August 8. Sales are expected to begin this fall, and the first move-ins will begin in the winter months.
County commissioners approved Wednesday (August 28) a request by Mattamy Homes to create a Community Development District (CDD) to build the infrastructure and amenities for the development is expect to cost $26.2 million.
Two years ago, the commission voted 4-3 to deny the homebuilder’s request to create a CDD, a governmental unit that sells bonds to plan, constructing and operating infrastructure for a development that includes clubhouses, pools and other amenities. There are nearly 600 of them in Florida and 10 have been approved by Palm Beach County commissioners in the past 20 years; the last one was in 2016.
Issues were raised in July 2022 over the fairness of hitting future homeowners with debt payments on top of property taxes. As a result of those concerns, county commissioners strengthened the disclosure requirements for developers looking to create a CDD. Information must be disclosed in 12-point font BOLD type explaining that an owner will be assessed on the tax roll for payments to the CDD and a sign must be posted in the sales office discussing the CDD obligation.
Unlike the lengthy debate that occurred two years ago, there was minimal discussion over the CDD request on August 28. The vote to approve was unanimous. County planners recommended the request be approved.
The annual costs to the the owners of the 45 single-family units is expected to be $1,600, and $1,200 to $1,400 for the owners of the townhomes. There will also be a $310 operations and maintenance assessment for all units. The figures are estimates and are subject to change, according to documents submitted to the county. There is no annual debt assessment for the 11 workforce housing units.
Mike Diamond
Palm Beach Post USA TODAY NETWORK