Legal Opinions Show Promise

June 26th, 2014 No Comments
(Released May 2013)

It has been a while since the LLA ad-hoc Committee on Municipal Incorporation (MIC) has published an update, but that doesn’t mean we haven’t been busy!

As noted in prior updates, the question of Municipal Incorporation has been brought up many times in the past, but no comprehensive analysis of the issue has ever been completed. After working on this issue for some time, the MIC understands why that has been the case. Incorporation of a community like the LLA presents many problems on the surface and as the MIC has investigated the issue, many more potential problems were discovered that needed to be researched. Much of this is on our Facebook page.

However, the MIC has finally gotten legal opinions on several questions that could have been show-stoppers for Incorporation of the LLA:

1) The LLA as an HOA can continue as it currently exists if the community decides to incorporate. We will not have to spend time and $$ on creating a “Land Condominium” as the MIC once thought.

2) Because the HOA can exist underneath the municipality (as occurs in many towns and cities in Maryland), the amenities we all currently enjoy can be kept private for the exclusive use of LLA residents (as they are now).
3) Even though the LLA community consists of many scattered Villages, all villages could be included in the new municipality.

Items we are currently working on:

1) A complete fiscal analysis of the costs of incorporating. This is not as simple as it might seem as the actual cost of creating a municipality can vary widely depending on the structure and scope of the charter developed by the membership of the prospective new municipality and what the municipality provides (think City of Frederick vs Rosemont). However, the fiscal analysis we are working on (in conjunction with established experts in this field) will give us a range of possibilities. The community can then weigh the pros and cons when deciding whether to move forward with incorporation.

2) How would the adoption of a Developer Rights and Responsibilities Agreement (DRRA) between Frederick County and the LLA declarant (Oakdale) affect incorporation? Initial review indicates no major obstacles but this needs professional research.

The MIC hopes to have some concrete information on the above items in time to hold another series of workshops in the June/July 2013 time frame.

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