First, what a beautiful body of water - scenic and lovely. Wow.
Second, the aerial snap showing the housing development downstream ... all I saw was "holy crap when that dam breaks there is gonna be a mess over in that neighborhood".
Unrelated to the dam failure, when you walk the pond/lake, do you see anything that identifies people have been there? Aside from the dam my concern would be kids in the neighborhood using the water to play, swim, run R/C boats, fish, etc. And then adults using the water to fish. If you invest your time and money into a trophy bass lake, how are you going to keep poachers out? They're literally right across the dam from you, dam it. ha ha
I would also look at the liability insurance in case there are kids and someone has an accident - that water is SO close to a development you might need to insure yourself.
