BOARD OF SUPERVISORS MEETING AGENDA

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1 Blackburn Creek Community Development District Corporate Blvd., Orlando, FL Phone: , Fax: The regular meeting of the Board of Supervisors of the Blackburn Creek Community Development District is scheduled for Wednesday, December 12, 2018 at 12:15 p.m. at 5800 Lakewood Ranch Blvd, Sarasota, FL Following is the advance agenda for the meeting. Call in Number: Participant/Guest code: (New) (New) BOARD OF SUPERVISORS MEETING AGENDA Roll Call to Confirm Quorum Public Comment Period [for any members of the public desiring to speak on any proposition before the Board] 1. Consideration of the Minutes of the November 14, 2018 Board of Supervisors Meeting 2. Consideration of the Minutes of the November 14, 2018 Landowners Election Meeting 3. Consideration of the Minutes of the November 14, 2018 Auditor Selection Committee Meeting Business Matters 4. Consideration of Resolution , Declaring Special Assessments a. Exhibit A- Supplemental Engineers Report 4 th Bond Issuance b. Exhibit B- Supplemental Assessment Methodology Report 4 th Bond Issuance c. Exhibit C- 4 th Bond Issuance Lands Legal Description 5. Consideration of Resolution , Setting Public Hearing on Assessments 6. Ratification of Payment Authorizations 60 & Review of District Financial Statements Other Business Staff Reports o District Counsel o District Engineer o District Manager Audience Comments and Supervisors Requests Adjournment

2 BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT Consideration of the Minutes of the November 14, 2018 Board of Supervisors Meeting

3 MINUTES OF MEETING BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT Board of Supervisors Meeting Wednesday, November 14, Lakewood Ranch Blvd. Sarasota, FL :24 P.M. Present and constituting a quorum: Eddie Gaudette Vice-Chair John Blakley Assistant Secretary Pete Williams Assistant Secretary Dale Weidemiller Assistant Secretary (via phone) Also present were: Vivian Carvalho District Manager- Fishkind & Associates, Inc. Jim Schier Neal Communities John Leinaweaver Neal Communities Ed Bulleit MBS Capital Markets, LLC Kevin Plenzler Fishkind & Associates, Inc. (via phone) Bill Connerly District Engineer (via phone) FIRST ORDER OF BUSINESS Call to Order and Roll Call Ms. Carvalho called to order at 12:24 pm the meeting of the Board of Supervisors of the Blackburn Creek Community Development District and proceeded with roll call. The persons in attendance are as outlined above. Ms. Carvalho requested a motion to recess the meeting. On MOTION by Mr. Williams, seconded by Mr. Blakley, with all in favor, the Board approved recessing the meeting at 12:25 p.m. Ms. Carvalho requested a motion to reconvene the Blackburn Creek Board of Supervisors Meeting.

4 On MOTION by Mr. Blakley, seconded by Mr. Gaudette, with all in favor, the Board approved reconvening the meeting at 12:24pm. SECOND ORDER OF BUSINESS Public Comment Period There were no members of the public present at this time. THIRD ORDER OF BUSINESS Administer Oath of Office to Newly Elected Supervisor Ms. Carvalho explained that per the Landowner's Election meeting that was held today, Mr. Williams was elected to Seat 3 and will be serving a 4-year term. Ms. Carvalho administered the oath of office to Mr. Williams. Ms. Carvalho asked him if he would like to receive or waive compensation. He chose to receive compensation. FOURTH ORDER OF BUSINESS Consideration of the Minutes of the October 10, 2018 Board of Supervisors Meeting The Board reviewed the minutes. On MOTION by Mr. Williams, seconded by Mr. Gaudette, with all in favor, the Board approved the minutes of the October 10, 2018 Board of Supervisors Meeting. FIFTH ORDER OF BUSINESS Consideration of Resolution , Canvassing and Certifying the Results of the Landowners Election Ms. Carvalho explained that Mr. Williams was elected to Seat 3 with a total of 99 votes and will serve a 4-year term. Ms. Carvalho requested a motion to approve Resolution

5 On MOTION by Mr. Gaudette, seconded by Mr. Williams with all in favor, the Board approved Resolution , Canvassing and Certifying the Results of the Landowners Election. SIXTH ORDER OF BUSINESS Consideration of Resolution , Electing Officers Ms. Carvalho explained that the current slate of officers is as follows; Ms. Crofoot as Chair, Mr. Gaudette as Vice-Chair, Mr. Blakley, Mr. Williams, and Mr. Weidemiller as Assistant Secretaries. Mr. Schier suggested that the District have an assistant secretary within the Neal Communities office. Pete Williams suggested that Mr. Schier be appointed as an additional Assistant Secretary. On MOTION by Mr. Williams, seconded by Mr. Gaudette, with all in favor, the Board approved Resolution , Election of Officers, as amended to include Mr. Schier as an additional Assistant Secretary for the District. SEVENTH ORDER OF BUSINESS Ratification/Consideration of Payment Authorizations No. 58 & 59 The Board reviewed Payment Authorizations No. 58 & 59. On MOTION by Mr. Williams, seconded by Mr. Blakley, with all in favor, the Board approved and ratified Payment Authorizations No. 58 & 59. EIGHTH ORDER OF BUSINESS Review of District Financial Statements Ms. Carvalho explained that these financials reflect the first month within the new fiscal year. 3

6 On MOTION by Mr. Williams, seconded by Mr. Blakley, with all in favor, the Board accepted the District Financial Statements. NINTH ORDER OF BUSINESS Staff Reports Attorney Not Present Engineer Mr. Connerly stated that he is going to be reengaging on the Engineer s Report for the 4th Bond Issuance and will circulate something soon. Manager Ms. Carvalho stated that the District will be holding an Auditor Selection Committee meeting after today s Board Meeting to establish the evaluation criteria for the auditing services and at the January meeting there will be proposals in which the committee will review and provide recommendation to the Board. TENTH ORDER OF BUSINESS Audience Comments and Supervisors Requests There were no Supervisor requests and no audience comments. ELEVENTH ORDER OF BUSINESS Adjournment There was no additional business to discuss. Ms. Carvalho requested a motion to adjourn. On MOTION by Mr. Williams, seconded by Mr. Blakley, with all in favor, the November 11, 2018 Meeting of the Board of Supervisors of the Blackburn Creek Community Development District was adjourned. Secretary/Assistant Secretary Chair/Vice-Chair 4

7 BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT Consideration of the Minutes of the November 14, 2018 Landowners Election Meeting

8 MINUTES OF MEETING BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT Landowner's Election Meeting Wednesday, November 14, Lakewood Ranch Blvd. Sarasota, FL :30 A.M. Present: Jim Schier Vivian Carvalho Proxy Holder District Manager FIRST ORDER OF BUSINESS Call to Order and Roll Call The meeting was called to order at 12:30 p.m. SECOND ORDER OF BUSINESS Appointment of Meeting Chairman Ms. Carvalho, as District Manager, was appointed as Chair of the Landowners meeting. Identification of Landowners and/or Landowner s Proxy Holder(s) Mr. Schier is the authorized Proxy holder for Resource Conservation of Sarasota, LLC which is the primary Landowner. Mr. Schier has a total of 99 votes to cast. Mr. Schier nominated Pete Williams for seat 3. The votes were cast as follows. Pete Williams received 90 votes. Call for Nominations, Election of Supervisors

9 Thus, Pete Williams will serve a 4 year term. THIRD ORDER OF BUSINESS Adjournment The Landowner s Election was adjourned. Secretary / Assistant Secretary Chairperson / Vice Chairperson 2

10 BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT Consideration of the Minutes of the November 14, 2018 Auditor Selection Committee Meeting

11 MINUTES OF MEETING BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT Auditor Selection Committee Meeting Wednesday, November 14, Lakewood Ranch Blvd. Sarasota, FL :30 P.M. Present and constituting a quorum: Eddie Gaudette Committee Member John Blakley Committee Member Pete Williams Committee Member Dale Weidemiller Committee Member (via phone) Also present were: Vivian Carvalho District Manager- Fishkind & Associates, Inc. Jim Schier Neal Communities John Leineweaver Neal Communities Ed Bulleit MBS Capital Markets, LLC Bill Connerly District Engineer (via phone) FIRST ORDER OF BUSINESS Call to Order and Roll Call Ms. Carvalho called to order at 12:39 pm the meeting of the Board of Supervisors of the Blackburn Creek Community Development District and proceeded with roll call. The persons in attendance are as outlined above. SECOND ORDER OF BUSINESS Review and Approval of Audit Documents a) Audit RFP Notice b) Instructions to Proposers c) Evaluation Criteria- with and without price Ms. Carvalho explained the purpose of the meeting is to establish criteria and authorize District staff to proceed with an RFP.

12 On MOTION by Mr. Blakley, seconded by Mr. Williams, with all in favor, the Committee Accepted the Evaluation Criteria with price. Ms. Carvalho explained that District Staff is looking a proceeding with the RFP. She asked the Auditor Selection Committee the date in which it should be due. The committee discussed and recommended that it be due the Thursday before the January meeting. The due date will be January 4, She requested a motion to approve proceeding with the advertisement and having the due date of the RFP due by January On MOTION by Mr. Williams, seconded by Mr. Gaudette, with all in favor, the Committee approved the RFP advertisement with the due date of January 4, THIRD ORDER OF BUSINESS Adjournment There was no additional business to discuss. Ms. Carvalho requested a motion to adjourn. On MOTION by Mr. Williams seconded by Mr. Gaudette, with all in favor, the November 14, 2018 Meeting of the Auditor Selection Committee of the Blackburn Creek Community Development District was adjourned. Secretary/Assistant Secretary Chair/Vice-Chair 2

13 BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT Consideration of Resolution , Declaring Special Assessments

14 RESOLUTION A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT DECLARING SPECIAL ASSESSMENTS; INDICATING THE LOCATION, NATURE, TYPE AND ESTIMATED COST OF THOSE INFRASTRUCTURE IMPROVEMENTS WHOSE COST IS TO BE DEFRAYED BY THE SPECIAL ASSESSMENTS; PROVIDING THE PORTION OF THE ESTIMATED COST OF THE IMPROVEMENTS TO BE DEFRAYED BY THE SPECIAL ASSESSMENTS; PROVIDING THE MANNER IN WHICH SUCH SPECIAL ASSESSMENTS SHALL BE MADE; PROVIDING WHEN SUCH SPECIAL ASSESSMENTS SHALL BE MADE; DESIGNATING LANDS UPON WHICH THE SPECIAL ASSESSMENTS SHALL BE LEVIED; PROVIDING FOR AN ASSESSMENT PLAT; ADOPTING A PRELIMINARY ASSESSMENT ROLL; PROVIDING FOR PUBLICATION OF THIS RESOLUTION; APPROVING THE SUPPLEMENTAL ENGINEER S REPORT; AND APPROVING THE SUPPLEMENTAL ASSESSMENT REPORT. WHEREAS, the Board of Supervisors of the Blackburn Creek Community Development District (the Board") hereby determines to undertake, install, plan, establish, construct or reconstruct, enlarge or extend, equip, acquire, operate, and/or maintain the infrastructure improvements (the "Improvements"), as same are described in that certain Supplemental Engineer s Report for Blackburn Creek Community Development District s 4th Bond Issuance Dated November 28, 2018, and approved by the District on this 12 th day of December, 2018, (the Engineer s Report ), which Engineer s Report is attached hereto as Exhibit A and incorporated herein by reference; and, WHEREAS, it is in the best interest of the Blackburn Creek Community Development District (the "District") to pay the costs of the Improvements by special assessments pursuant to Chapter 190, Florida Statutes, (the "Assessments"); and, WHEREAS, the District is empowered by Chapter 190, the Uniform Community Development District Act, Chapter 170, Supplemental and Alternative Method of Making Local Municipal Improvements, and Chapter 197, the Uniform Method for the Levy, Collection and Enforcement of Non-Ad Valorem Assessments, Florida Statutes, to finance, fund, plan, establish, acquire, construct or reconstruct, enlarge or extend, equip, operate, and maintain the Improvements and to impose, levy and collect the Assessments (as defined below); and, 1 of 4

15 WHEREAS, the District hereby determines that benefits will accrue to the lands upon which the Assessments shall be placed, (the 4 th Bond Issuance Lands ), the legal description describing same being attached hereto as Exhibit C, and incorporated herein; and, WHEREAS, the District hereby determines that benefits will accrue to the 4 th Bond Issuance Lands, the amount of those benefits has been determined, and that special assessments will be made in proportion to the benefits received, all as set forth in that certain Blackburn Creek Community Development District Supplemental Assessment Methodology, Phases 1B(a), 2A(d) and 2A(e) (Series 2019 Bonds), Dated December 3, 2018, as approved by the District on this 12 th day of December, 2019, (the Assessment Report ), the same of which is attached hereto as Exhibit "B," and incorporated herein; and, WHEREAS, the Engineer s Report, the Assessment Report and all matters described herein this Resolution are on file at Corporate Boulevard, Orlando, FL (the District Records Office ), and same can also be reviewed at 5800 Lakewood Ranch Blvd., Sarasota, Florida, 34240, (the Local District Records Office ); and, WHEREAS, the District hereby determines that the Assessments to be levied will not exceed the benefits to the property improved. NOW, THEREFORE, BE IT RESOLVED AND ORDERED BY THE BOARD OF SUPERVISORS OF THE BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT: 1. Assessments shall be levied to defray the cost of the Improvements. 2. The nature, type and general location of, and plans and specifications for, the Improvements, as well as the assessment plat denoting the lands upon which the Improvements shall be made and Assessments levied, including all costs of the Improvements associated therewith that shall be paid by Assessments, are described in Exhibit "A," and are on file at the District Records Office and the Local District Records Office. Exhibit "B" is also on file and available for public inspection at the same locations, and it further describes the costs of the Improvements, amount of Assessments, manner in which the Assessments shall be paid, the timeframe for paying the Assessments, and all such additional information as required by Sections through , Florida Statutes. Attached hereto as Exhibit C, and incorporated herein, is a further description of the 4 th Bond Issuance Lands upon which the Improvements shall be made and Assessments levied, which 4 th Bond Issuance Lands are further described as: All lots and lands adjoining and contiguous or bounding and abutting the Improvements or specially benefitted thereby and further designated by the assessment plat, as hereinafter provided. 3. The total estimated cost of the Improvements is $4,233, (the Estimated Cost ). 2 of 4

16 4. The Assessments will defray approximately $5,145, which includes the Estimated Cost, plus financing-related costs, capitalized interest, debt service reserve and contingency. 5. The manner in which the Assessments shall be apportioned and paid is set forth in Exhibit "B", including provisions for additional and supplemental assessment resolutions. 6. The Assessments shall be levied, within the District, on all lots and lands adjoining and contiguous or bounding and abutting upon such Improvements or specially benefited thereby and further designated by the assessment plat as hereinafter provided. 7. There is on file, at the District Records Office and the Local District Records Office, an assessment plat showing the area to be assessed, with certain plans and specifications describing the Improvements and the Estimated Cost of the Improvements, all of which shall be open to inspection by the public. 8. Commencing with the year in which the Assessments are confirmed, the Assessments shall be paid in not more than (30) thirty annual installments. The Assessments may be payable at the same time and in the same manner as are ad-valorem taxes and collected pursuant to chapter 197, Florida Statutes; provided, however, that in the event the uniform non ad-valorem assessment method of collecting the Assessments is not available to the District in any year, or if determined by the District to be in its best interest, the Assessments may be collected as is otherwise permitted by law. 9. The District Manager has caused to be made a preliminary assessment roll, in accordance with the method of assessment described in Exhibit "B" hereto, which shows the lots and lands assessed, the amount of benefit to and the assessment against each lot or parcel of land and the number of annual installments into which the assessment may be divided, which is hereby adopted and approved as the District's preliminary assessment roll. 10. The Board shall adopt a subsequent resolution to fix a time and place at which the owners of property to be assessed or any other persons interested therein may appear before the Board and be heard as to the propriety and advisability of the Assessments or the making of the Improvements, the cost thereof, the manner of payment therefore, or the amount thereof to be assessed against each property as improved. 11. The District Manager is hereby directed to cause this Resolution to be published twice (once a week for two (2) weeks) in a newspaper of general circulation within Sarasota County, Florida, and to provide such other notice as may be required by law or desired in the best interests of the District. 12. The Board does hereby adopt and approve the Engineer s Report and Assessment Report. 13. This Resolution shall become effective upon its passage. 3 of 4

17 PASSED AND ADOPTED this 12 th day of December, ATTEST: BOARD OF SUPERVISORS OF THE BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT Secretary/ Asst. Secretary Chairman/Vice-Chairman Exhibit A : Supplemental Engineer s Report for Blackburn Creek Community Development District s 4th Bond Issuance Dated November 28, 2018 Exhibit B : Blackburn Creek Community Development District Supplemental Assessment Exhibit C : Designated 4 th Bond Issuance Lands Legal Description 4 of 4

18 BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT Exhibit A- Supplemental Engineers Report 4th Bond Issuance

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41 BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT Exhibit B- Supplemental Assessment Methodology Report 4th Bond Issuance

42 BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT SUPPLEMENTAL ASSESSMENT METHODOLOGY, PHASES 1B(a), 2A(d), and 2A(e) (SERIES 2019 BONDS) December 3, 2018 Prepared for: Board of Supervisors Blackburn Creek Community Development District Prepared by: Fishkind & Associates, Inc Corporate Blvd. Orlando, Florida `

43 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT SUPPLEMENTAL ASSESSMENT METHODOLOGY, PHASES 1B(a), 2A(d), and 2A(e) (SERIES 2019 BONDS) 1.0 Introduction 1.1 Purpose This Supplemental Assessment Methodology ( Methodology ), dated December 3, 2018 provides a system for allocating special assessments securing debt planned to be incurred by the Blackburn Creek Community Development District (the District ) to fund public infrastructure improvements providing a special benefit to properties located within the boundaries of the District. The District plans to incur debt in the form of the issuance of longterm bonds in 2019 for Phases 1B(a), 2A(d), and 2A(e) ( Series 2019 Bonds ) to fund a portion of the District s public infrastructure capital improvement program ( 2019 CIP ). The 2019 CIP improvements include: water and wastewater facilities, portions of the stormwater conveyance and drainage facilities, offsite roadway improvements, offsite utility extensions, and other improvements. The Methodology described herein allocates the District s planned Series 2019 Bonds principal and associated annual debt service to properties within the District based upon the benefits each property receives from the 2019 CIP. The District s 2019 CIP allows for the development of certain property within the District. The District is located within Sarasota County, Florida and currently includes approximately 1, acres with entitlements that allow for a maximum of 2,051 dwelling units. The Series 2019 Bonds will fund infrastructure improvements providing a special benefit to the lands located within Phases 1B(a), 2A(d), and 2A(e) ( 2019 Properties ) within the boundaries of the District. The District s Series 2019 Bonds will be repaid from the proceeds of assessments levied by the District s Board of Supervisors on properties within the District that benefit from the implementation of the 2019 CIP. The levy will take the form of non-ad valorem special assessments that will be liens against properties within the boundaries of the District that receive special benefits from the 2019 CIP. The Methodology herein allocates this debt to properties based upon the special and peculiar benefits each property receives from the 2019 CIP according to the reasonable and fair apportionment of the duty to pay for these levied assessments. This report is designed to conform to the requirements of Florida Statutes Chapters 170, 190, and 197 with respect to the levy and collection of special assessments and is consistent with our understanding of the case law related to this subject. Page 2 of 16

44 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds 1.2 Background The 2019 Properties are currently being developed by Neal Communities, the primary developer of the property within the District ( Developer ). Details on the land use plan for the 2019 Properties are found in Table 1 (all Tables are found in the attached Appendix). The land within the District will be developed in multiple phases. The District has previously issued its Special Assessment Revenue Bonds, Series 2013A ( Series 2013 Bonds ) Capital Improvement Revenue Bonds; Series 2015A-1 and 2015A-2 Bonds ( Series 2015 Bonds ) Capital Improvement Revenue Bonds; and its Series 2018A-1 and 2018A-2 ( Series 2018 Bonds ) Capital Improvement Revenue Bonds, to fund infrastructure improvements providing special benefit to earlier phases of development within the District. This report will address both the development planned to be assessed to secure the repayment of the Series 2019 Bonds and the public infrastructure planned to be funded by the Series 2019 Bonds. The District will only be funding improvements that constitute public infrastructure. 1.3 Requirements of a Valid Assessment Methodology Valid special assessments under Florida law have two requirements. First, the properties assessed must receive a special benefit from the improvements paid for via the assessments. Second, the assessments must be fairly and reasonably allocated to the properties being assessed. If these two characteristics of valid special assessments are adhered to, Florida law provides wide latitude to legislative bodies, such as the District s Board of Supervisors, in approving special assessments. Indeed, Florida courts have found that the mathematical perfection of calculated special benefit is probably impossible. Only if the District s Board was to act in an arbitrary, capricious, or grossly unfair fashion would its assessment methodology be overturned. Even though the District s Board possesses wide latitude in adopting assessments, this Methodology was specifically designed to fairly and reasonably allocate assessments to the District s assessable properties receiving a special benefit from the implementation of the District s 2019 CIP. 1.4 Special Benefits and General Benefits The new infrastructure improvements included in the 2019 CIP create both: (1) special benefits to property within the 2019 Properties and (2) general benefits to lands located outside the 2019 Properties. However, as discussed below, these general benefits are incidental in nature and are readily distinguishable from the special benefits which accrue to the property within the 2019 Properties. The 2019 CIP enables the 2019 Properties to be developed. Without the 2019 CIP, there would be no infrastructure to support development. Page 3 of 16

45 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds There is no doubt that the general public, and property owners outside the 2019 Properties, will benefit from the provision of the 2019 CIP. However, these benefits are incidental to the 2019 CIP, which is designed solely to meet the needs of the 2019 Properties. Lands outside this area do not depend upon the 2019 CIP to obtain, or to maintain, their development entitlements. This fact alone clearly distinguishes the special benefits which developable property within the 2019 Properties receive compared to those lying outside of this area. The estimated cost of the 2019 CIP totals $4,233,400. The District plans to issue bonds to fund these costs, with total District bond principal or other debt estimated at a maximum principal value of $5,145,000. There are approximately assessable acres within the 2019 Properties. Therefore, the average cost per assessable acre within the 2019 Properties is $42,741 on an as-financed basis. The estimated fair market value of the 2019 Properties averages $55,842 per acre. Therefore, as illustrated in the table herein, the total cost of this land with the proposed improvements implemented is estimated at approximately $98,583 per acre. Demonstration of Special Benefit Category Amount Maximum Bonds Necessary to Fund 2019 CIP $5,145,000 Assessable Acres within 2019 Properties CIP Financed Cost Per Gross Acre* $42,741 Estimated Value of Unimproved Land/Acre** $55,842 Total Cost of Improved Land per Acre $98,583 Est. Avg. Value of Finished Home and Lot $300,000 Value of 25% $75,000 Density/Assessable Acre* 2.02 Est. Value of Finished Lots/Land per Acre $151,399 Est. Net Benefit per Acre from CDD Improvements $52,817 **For the approximately acres located within the 2019 Properties. **Estimated value obtained from the Sarasota County Property Appraiser for the Phase 1B & 2A lands. Based on the land development plan, and market research by the District s Financial Advisor ( FA ), the estimated average value for a single-family home to be developed in the District is $300,000. The typical relationship between the total price of a new home and its finished lot is 25%. So, the average home lot in the District is expected to have a retail value of $75,000. Page 4 of 16

46 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds The land use plan anticipates a gross residential density of 2.02 units per assessable acre. Therefore, the average value per acre for properties developed into residential lots is $151,399. Thus, the estimated net special benefit to District lands averages $52,817 per acre. In other words, the installation of the 2019 CIP will increase the market value of the land within the District in excess of the cost of the assessments. 2.0 Finance Plan 2.1 Capital Improvement Program Kimley Horn, in its capacity as District Engineer, has identified certain public infrastructure and services that may be provided by the District and has provided a cost estimate for these improvements. Details of the District s 2019 CIP can be found in the Supplemental Engineer s Report for Blackburn Creek Community Development s 4th Bond Issuance, dated November 28, 2018 ( Engineer s Report ). The 2019 CIP consists of water and wastewater facilities, portions of the stormwater conveyance and drainage facilities, roadway improvements, professional fees, design and permitting, and other public capital improvements as outlined in more detail in the Engineer s Report. The cost estimates for the District s public infrastructure improvements can be found at Table 2. As indicated in Table 2, it is estimated that the District s 2019 CIP will cost approximately $4,233,400, without taking into consideration the various costs of financing the improvements. 2.2 Financing Mechanisms The costs of the District s 2019 CIP will likely be funded by two mechanisms. The first mechanism is the issuance of debt by the District. The second mechanism is through the contribution of funds or 2019 CIP components to the District ( Contribution ). Upon approval by the District, property owners within the District will have the opportunity to make such a Contribution. A property owner s Contribution will give rise to assessment credits that can be applied by the property owner to reduce or eliminate bond debt service assessments that would otherwise be assigned to lands within the District to fund the costs of the CIP. Prior to a property owner reducing or eliminating bond debt service assessments through a Contribution, it must be shown that the improvements funded or contributed by the property owner are a part of the 2019 CIP, as outlined in the Engineer s Report. Page 5 of 16

47 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds The property owner will be allowed to apply assessment credits equal to the value of the Contribution plus the costs of financing the improvement(s) that would otherwise have been incurred by the District if the District were required to issue bonds to fund or acquire the improvement(s) (such that the property would not be responsible for bond financing costs if the Contribution was made prior to the District s issuance of special assessment bonds). The District has the ability to accept a Contribution and apply the related assessment credits at any time prior to the issuance of the Series 2019 Bonds. As shown in Table 3, it is estimated that the District will issue $5,145,000 in Series 2019 Bonds principal to fund a portion of the 2019 CIP. A number of funds comprise the Series 2019 Bonds. These funds may include, but are not limited to, a period of capitalized interest, a debt service reserve, an underwriter s discount, issuance costs, and contingency. Table 3 outlines the estimated maximum debt issued to fund a portion of the District s 2019 CIP. 3.0 Assessment Allocation 3.1 Structure Special and peculiar benefits are conveyed to 2019 Properties due to the implementation of the 2019 CIP. To determine these benefits, the District Engineer first estimates the costs for all systems and facilities needed to support the 2019 CIP. Then the financed infrastructure costs are apportioned to the applicable properties in relationship to the special and peculiar benefits that each property receives from the District s 2019 CIP. The Supplemental Assessment Methodology detailed herein provides the mechanism by which these 2019 CIP costs, based on an estimated determination of benefit, are apportioned to the acreage within the 2019 Properties. 3.2 Special and Peculiar Benefit Accruing to Property on Account of the District s CIP Construction and/or acquisition by the District of its proposed 2019 CIP will provide several types of systems, facilities and services benefiting the 2019 Properties. These include water and wastewater facilities, portions of the stormwater conveyance and drainage facilities, offsite roadway improvements, offsite utility extensions, and other improvements. More detail on the components of the District s CIP can be found in the Engineer s Report. Examples of the special and peculiar benefits flowing from the implementation of the District s CIP are found below. The special and peculiar benefits, identified for each sample improvement, are: Page 6 of 16

48 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds a. For the provision of roadway improvements, the special and peculiar benefits are added accessibility to the property, added use of the property, added enjoyment of the property, and the probability of increased marketability and value of the property. b. For the providing of proper stormwater management, the special and peculiar benefits are the added use of the property, added enjoyment of the property, increased sanitary conditions on the property, and the probability of increased marketability and value of the property. c. For the provision of potable water and sewer utility improvements, the special and peculiar benefits are the added use of the property, added enjoyment of the property, increased sanitary conditions on the property, and the probability of increased marketability and value of the property. Similar to the examples listed above, it has been determined that all components of the District s 2019 CIP will provide a real and ascertainable benefit to the 2019 Properties. As demonstrated in Section 1.4 above, the benefit provided by each component of the 2019 CIP to the 2019 Properties is by order of magnitude more valuable than either the cost of, or the actual non-ad valorem special assessment levied for, the improvement or the debt as allocated. 3.3 CIP Funding Requirements Table 3 outlines the estimated total Series 2018 Bonds that will be issued to fund the implementation of the District s 2019 CIP. As shown in Table 3, it is estimated that $5,145,000 in Series 2019 Bonds will be issued to fund $4,233,400 in 2019 CIP costs. The maximum estimated annual debt service requirements, as well as the interest rate and other details of the Series 2019 Bonds, are also shown in Table Benefit Apportionment In allocating special assessments to benefiting property, Florida governments have used a variety of methods including, but not limited to, front footage, area, trip rates, equivalent residential units, dwelling units, and acreage. We have determined that an assessment methodology based on equivalent residential unit ( ERU ) values is appropriate. These ERU values equate the benefit received by a stated amount of such particular land use category to the benefit received by a typical single-family residence. The use of ERU values to estimate the benefit derived from infrastructure improvements is recognized as a simple, fair, and reasonable method for apportioning benefit. ERU values are a commonly-accepted method for calculating special benefit assessments in Florida. Page 7 of 16

49 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds The assignment of ERU values to units of development planned for the District begins with consideration of the benefit received by a specific single-family residence planned for the District. In assigning ERU values to the land uses anticipated to be developed within the 2019 Properties, we have considered several factors. First, the size of both the lot and vertical structure planned for an individual platted residential lot ( Development Unit ) was taken into consideration. The size of a Development Unit affects the stormwater runoff generated by the Development Unit, the landscaping and lighting required to serve the Development Unit, and the length of roadways necessary to serve the Development Unit, among other impacts. Second, the vehicle traffic generated by the Development Unit was taken into consideration. We are familiar with roadway trip generation statistics for property types such as those planned for the 2019 Properties and took those figures into consideration when assigning ERU values. Land uses with higher trip generation rates have a greater impact on roadway improvements, and thus receive a greater benefit from those improvements, and have thus been assigned higher ERU values. Third, the District considered the probable usage of water and sewer utilities by the various land uses. Tables 4 and 5 contain the allocation of the District s CIP costs, as financed, to the Development Units planned for the District based on the ERU value assigned to each Development Unit. 3.5 Assessment Allocation The 2019 CIP cost estimates are outlined in Table 2 and described in detail in the Engineer s Report. The amount of bonds required to fund the District s portion of the 2019 Properties infrastructure costs has been calculated and is shown in Table 3. The bonds principal and related annual debt service assessments assigned to Phases 1B(a), 2A(d), and 2A(e) will then be divided among the lots planned for these areas based on the ERU values outlined in Table 4. The resulting bonds principal and related annual debt service assessments for Phases 1B(a), 2A(d), and 2A(e), and each lot planned for each of these phases, are also shown in Table 4. Table 4 becomes important as the land within a phase is platted, as specific bond debt service assessments will be assigned to the individual Development Units within the relevant phases at this time. Each lot s assignment of Series 2019 Bonds principal and annual assessment will actually be comprised of two separate series of bonds, the Series 2019A-1 Bonds and the Series 2019A-2 Bonds. The specific Series 2019A-1 and Series 2019A-2 Bonds assessments for all 2019 Properties are outlined in Table 5 and are provided for informational purposes only. The targeted 2019A-1 principal and annual assessment payment and targeted 2019A-2 principal and annual assessment payment are a function of the final financing terms. Page 8 of 16

50 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds 3.6 Assignment of Specific Assessments Assessments securing bonds issued to fund the 2019 CIP will initially be assigned to the unplatted 2019 Properties on an equal per-acre basis. The assessments for Phases 1B(a), 2A(d), and 2A(e) will then be apportioned among the lots within those phases, as these properties are initially platted. The final assignment of bond debt to a specific lot does not take place until the land containing that lot is platted (a platted single-family lot will be referred to herein as a Development Unit ). As property is platted, the assessments outlined in Table 5 will be assigned to each platted lot based on the type of lot. 4.0 True-Up Mechanism The Engineer s Report outlines that the 2019 Properties contain approximately acres. These acres are planned to contain the residential development that will be served by the District s 2019 CIP. In order to assure that the District s unassigned bond debt will not build up on the unplatted acreage within this area, the District shall apply the following test. The test is that the Series 2019 Bonds principal assessment per acre remaining on the unplatted 2019 Properties is never allowed to increase above a ceiling level established at the time of issuance of the Series 2019 Bonds. Initially, the ceiling level of Series 2019 Bonds principal per acre is calculated as the total amount of Series 2019 Bonds divided by the number of unplatted acres within the 2019 Properties. The District plans to issue a total of $5,145,000 in Series 2019 Bonds. Thus, the Series 2019 Bonds ceiling level will be calculated as $5,145,000 divided by the approximately unplatted acres within the 2019 Properties, equaling $42,741 per unplatted acre. Thus, every time the test is applied, the debt on the remaining unplatted acreage within the 2019 Properties must remain less than or equal to $42,741 per acre. If not, the District would require a density reduction payment in an amount sufficient to reduce the remaining Series 2019 Bonds debt per acre to the ceiling amount. This test shall first be applied at the earlier of the completion of the platting of 50% of the acreage within the 2019 Properties. The second and third tests shall be applied platting of 75% and 90% of the acreage within this area, respectively. The final test shall be applied at the earlier of the platting of 100% of the residential units or the platting of 100% of the acreage within the 2019 Properties. These tests, for the 2019 Properties, are outlined in the table below. Page 9 of 16

51 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds True-Up Test, Unplatted 2019 Properties Category 50% 75% 90% 100% 1B(a), 2A(d) & 2A(e) Platted $2,572,500 $3,858,750 $4,630,500 $5,145,000 1B(a), 2A(d) & 2A(e) Unplatted $2,572,500 $1,286,250 $514,500 $0 Debt per Unplatted Acre $42,741 $42,741 $42,741 $42,741 If at the time the 50%, 75%, or 90% tests are given it is determined that the Series 2019 Bonds debt ceiling is breached, the District may suspend the true-up payment if the landowners can show that there is sufficient development potential in the remaining undeveloped acreage within the 2019 Properties to build the densities required to fully secure the repayment of the Series 2019 Bonds. A determination of the suspension of a required true-up payment will be made at the sole discretion of the District. 5.0 Reasonable and Fair Apportionment of the Duty to Pay The determination has been made that the duty to pay the Series 2019 Bonds non-ad valorem special assessments outlined in this Methodology has been fairly and reasonably apportioned among the land uses planned for the 2019 Properties. This is because the nonad valorem special assessments have been allocated to the land uses planned for the District s 2019 Properties according to the special and peculiar benefits accruing to these lands from the acquisition and/or construction of the District s 2019 CIP. Additionally, no acre or parcel within the District will be assessed for more than the determined special benefit accruing to that property. Page 10 of 16

52 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds 6.0 Preliminary Assessment Roll As described above, the debt associated with the District s CIP will be initially distributed on a developable acreage basis across the developable acreage within the 2019 Properties. As plats for lands within 2019 Properties are approved, the lots to be platted will be assessed in the manner described herein. The following provides the initial debt assessments for the 2019 Properties. Preliminary Series 2019 Assessment Roll Total Bond Principal Assmt. - All Acres Total Bond Principal Assessment/ Unplatted Acre Annual Assessment - All Acres* Annual Assessment per Unplatted Acre* Total Phases Acreage 1B(a), 2A(d), 2A(e) $5,145,000 $42, $396,423 $3, Totals $5,145,000 $42,741 $396,423 $3,293 *Includes a 6.0% increase to account for the fees of the county property appraiser and tax collector and the statutory 4.0% early payment discount. Page 11 of 16

53 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds Exhibit A Legal Description of 2019 Properties Page 12 of 16

54 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds Exhibit A continued Legal Description of 2019 Properties Page 13 of 16

55 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds Exhibit A continued Legal Description of 2019 Properties Page 14 of 16

56 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds Exhibit A continued Legal Description of 2019 Properties Page 15 of 16

57 Blackburn Creek CDD Supplemental Assessment Methodology Phases 1B(a), 2A(d), and 2A(e), Series 2019 Bonds APPENDIX ASSESSMENT TABLES Page 16 of 16

58 APPENDIX TABLE 1 BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT PH. 1B(a), 2A(d) & 2A(e) DEVELOPMENT PROGRAM SERIES 2019 SUPPLEMENTAL ASSESSMENT METHODOLOGY Development Phase SF 52' SF 72' Total Units 1B(a) A(d) A(e) Subtotal, Current District Boundaries Assessment Methodology Fishkind and Associates, Inc. Appendix 1

59 APPENDIX TABLE 2 BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT 1B(a), 2A(d), & 2A(e) CIP PROGRAM SERIES 2019 SUPPLEMENTAL ASSESSMENT METHODOLOGY Public Phases 1B(a), 2A(d) & 2A(e) CIP PHASE 1B(a) PHASE 2A(d) PHASE 2A(e) TOTAL Water and Wastewater $475,000 $605,000 $891,000 $1,971,000 Portions of the Stormwater Conveyance and Drainage Facilities $282,000 $499,000 $725,500 $1,506,500 Professional Fees, Design, and Permitting $68,000 $151,900 $145,500 $365,400 Contingency $75,500 $153,000 $162,000 $390,500 Total $900,500 $1,408,900 $1,924,000 $4,233,400 Private Phases 1B(a), 2A(d) & 2A(e) CIP PHASE 1B(a) PHASE 2A(d) PHASE 2A(e) TOTAL Clearing, Grubbing and Earthwork $904,000 $1,172,000 $1,739,000 $3,815,000 Portions of the Stormwater Conveyance and Drainage Facilities $0 $0 $0 $0 Roadway Construction $229,000 $382,000 $354,000 $965,000 Offsite Roadway Improvements (Turn lanes and signals) $0 $0 $0 $0 Offsite Utility Extensions (wastewater) $0 $0 $0 $0 Professional Fees, Design, and Permitting $102,000 $89,200 $210,000 $401,200 Contingency $114,000 $182,000 $209,500 $505,500 Total $1,349,000 $1,825,200 $2,512,500 $5,686,700 Total (Public & Private) $2,249,500 $3,234,100 $4,436,500 $9,920,100 Source: Kimley-Horn; Supplemental Engineer's Report (Blackburn Creek CDD 4th Bond Issuance), dated November 28, 2018 Assessment Methodology Fishkind and Associates, Inc. Appendix 2

60 APPENDIX TABLE 3 BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT SERIES 2019 BONDS DETAILS SERIES 2019 SUPPLEMENTAL ASSESSMENT METHODOLOGY Debt Fund Series 2019A-1 Series 2019A-2 Total Construction/Acquisition Fund $2,857,197 $1,376,203 $4,233,400 Capitalized Interest $142,097 $79,781 $221,878 Debt Service Reserve $117,731 $68,588 $186,319 Costs of Issuance $112,075 $62,925 $175,000 Underwriter's Fee $65,900 $37,000 $102,900 Contingency $0 $225,503 $225,503 Total Debt Principal $3,295,000 $1,850,000 $5,145,000 Debt Details Series 2019A-1 Series 2019A-2 Total Average Coupon Rate: 5.75% 5.75% N/A Max Term (Years): N/A % of Total 2018 Net Annual Debt Service: 63.19% 36.81% % Net Annual Debt Service: $235,463 $137,175 $372,638 Fees and Costs of On-Roll Collection: 6.0% 6.0% 6.0% Gross Annual Debt Service**: $250,492 $145,931 $396,423 *Although the District may issue bonds or another type of debt, the values for a bond issuance are shown here. **Includes a total 6.0% increase to account for the fees of the county property appraiser and tax collector and the statutory 4.0% early payment discount. Assessment Methodology Fishkind and Associates, Inc. Appendix 3

61 APPENDIX TABLE 4 BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT SERIES 2019A-1 & 2019A-2 BOND ASSESSMENTS SERIES 2019 SUPPLEMENTAL ASSESSMENT METHODOLOGY Development Phase & Unit Type Units ERU ERUs - All Units % Total ERUs Total Series 2019 Debt Principal Assessment - All Units Total Series 2019 Debt Principal Assessment per Unit 1B(a) SF 50'-60' (52') % $1,121,089 $20,019 2A(d) SF 70'+ (72') % $1,681,634 $24,023 2A(e) SF 50'-60' (52') % $2,342,276 $20,019 Totals % $5,145,000 Development Phase & Unit Type Units Total Series 2019 Debt Net Ann. Total Series 2019 Debt Net Assmt. - All Units* Ann. Assmt. per Unit* Total Series 2019 Debt Gross Ann. Assmt. - All Units* Total Series 2019 Debt Gross Ann. Assmt. per Unit* 1B(a) SF 50'-60' (52') 56 $81,197 $1,450 $86,380 $1,543 2A(d) SF 70'+ (72') 70 $121,796 $1,740 $129,570 $1,851 2A(e) SF 50'-60' (52') 117 $169,644 $1,450 $180,473 $1,543 Totals 243 $372,638 $396,423 *Includes a total 6.0% increase to account for the fees of the county property appraiser and tax collector and the statutory 4.0% early payment discount. Assessment Methodology Fishkind and Associates, Inc. Appendix 4

62 APPENDIX TABLE 5 BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT 2019 DEBT ASSESSMENTS SERIES 2019 SUPPLEMENTAL ASSESSMENT METHODOLOGY This chart is for informational purposes with respect to the allocation of 2019A-1 & 2019A-2 Bond Debt Allocation per final financing terms Development Phase & Unit Type Units Total Bonds Principal Assmt. per Unit Series 2019A-1 Bonds Principal per Unit (1) Series 2019A-1 Bonds Principal, all Units Series 2019A-2 Bonds Principal per Unit Series 2019A-2 Bonds Principal all Units 1B(a) SF 50'-60' (52') 56 $20,019 $12,821 $717,977 $7,198 $403,113 2A(d) SF 70'+ (72') 70 $24,023 $15,385 $1,076,965 $8,638 $604,669 2A(e) SF 50'-60' (52') 117 $20,019 $12,821 $1,500,058 $7,198 $842,218 Total 243 $3,295,000 $1,850,000 Development Phase & Unit Type Total Bonds Net Annual Assmt. per Unit Series 2019A-1 Bonds Net Annual Series 2019A-2 Bonds Net Assmt./ Unit (1) Annual Assmt./ Unit Series 2019A-1 Bonds Gross Annual Assmt./ Unit* Series 2019A-2 Bonds Gross Annual Assmt./ Unit* Total Bonds Gross Annual Assmt. per Unit* 1B(a) SF 50'-60' (52') $1, $ $ $ $ $1, A(d) SF 70'+ (72') $1, $1, $ $1, $ $1, A(e) SF 50'-60' (52') $1, $ $ $ $ $1, (1) Source: Fishkind and Associates, Inc. *Includes a total 6.0% increase to account for the fees of the county property appraiser and tax collector and the statutory 4.0% early payment discount. Assessment Methodology Fishkind and Associates, Inc. Appendix 5

63 BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT Exhibit C- 4th Bond Issuance Lands Legal Description

64 Exhibit C 4 th Bond Issuance Lands Legal Description All lots and lands adjoining and contiguous or bounding and abutting the Improvements or specially benefitted thereby and further designated by the assessment plat, as hereinafter provided, including the following lands:

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71 BLACKBURN CREEK COMMUNITY DEVELOPMENT DISTRICT Consideration of Resolution , Setting Public Hearing on Assessments