WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY REGULAR BOARD MEETING OCTOBER 2, :00 P.M.

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1 WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY REGULAR BOARD MEETING OCTOBER 2, :00 P.M. Special District Services, Inc. The Oaks Center 2501A Burns Road Palm Beach Gardens, FL Telephone 877.SDS.4922 Toll Free Facsimile

2 AGENDA WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT Club House at Winding Cypress 7180 Winding Cypress Drive Naples, FL REGULAR BOARD MEETING October 2, :00 p.m. A. Call to Order B. Proof of Publication..Page 1 C. Establish a Quorum D. Additions or Deletions to Agenda E. Comments from the Public for Items Not on the Agenda F. Approval of Minutes 1. June 5, 2018 Regular Board Meeting & Public Hearing...Page 2 G. Old Business H. New Business 1. Consider Resolution No Adopting an Amended and Restated Engineer s Report and Adopting an Amended and Restated Assessment Methodology Report...Page 6 2. Consider Approval of Restated Master Engineer s Report...Page 8 3. Consider Approval of Amended and Restated Master Special Assessment Methodology Report & Amended and Restated Supplemental Special Assessment Methodology Report Special Assessment Bonds, Series Page Consider Approval of Master Special Assessment Methodology Report for Phase III Assessment Area...Page Consider Resolution No Declaring Special Assessments...Page Consider Resolution No Setting a Public Hearing on Special Assessments...Page 65 I. Administrative Matters 1. Announce Landowners Meeting November 6, 2018 J. Board Members Comments K. Adjourn

3 Naples Daily News Sept. 21, 2018 Miscellaneous Notices WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2018/2019 REGULAR MEETING SCHEDULE NOTICE IS HEREBY GIVEN that the Board of Supervisors of the Winding Cypress Community Development District will hold Regular Meetings in the Clubhouse at Winding Cypress located at 7180 Winding Cypress Drive, Naples, Florida at 1:00 p.m. on the following dates: October 2, 2018 November 6, 2018 December 4, 2018 February 5, 2019 March 5, 2019 April 2, 2019 May 7, 2019 June 4, 2019 August 6, 2019 The purpose of the meetings is to conduct any business coming before the Board. Meetings are open to the public and will be conducted in accordance with the provisions of Florida law. Copies of the Agendas for any of the meetings may be obtained from the District's website or by contacting the District Manager at and/or toll free at prior to the date of the particular meeting. From time to time one or two Supervisors may participate by telephone; therefore, a speaker telephone will be present at the meeting location so that Supervisors may be fully informed of the discussions taking place. Said meeting(s) may be continued as found necessary to a time and place specified on the record. If any person decides to appeal any decision made with respect to any matter considered at these meetings, such person will need a record of the proceedings and such person may need to insure that a verbatim record of the proceedings is made at his or her own expense and which record includes the testimony and evidence on which the appeal is based. In accordance with the provisions of the Americans with Disabilities Act, any person requiring special accommodations or an interpreter to participate at any of these meetings should contact the District Manager at and/or toll free at at least seven (7) days prior to the date of the particular meeting. Meetings may be cancelled from time to time without advertised notice. WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT September 21, 2018 No Page 1

4 A. CALL TO ORDER WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT PUBLIC HEARING & REGULAR BOARD MEETING JUNE 5, 2018 The Regular Board Meeting of the Winding Cypress Community Development District was called to order at 1:03 p.m. at the Clubhouse at Winding Cypress located at 7180 Winding Cypress Drive, Naples, Florida B. PROOF OF PUBLICATION Proof of publication was presented that Notice of the Regular Board Meeting had been published in the Naples Daily News on September 20, 2017, as part of the District s Fiscal Year 2017/2018 Regular Meeting Schedule, as legally required. C. ESTABLISH A QUORUM It was determined that the attendance of the following Supervisors constituted a quorum and it was in order to proceed with the meeting: Chairman Scott Brooks Present Vice Chairman Mike Hueniken Absent Supervisor Laura Ray Present Supervisor Patrick Butler Present Supervisor John Fiesler Present Also present were the following Staff members: District Manager Kathleen Dailey Special District Services, Inc. District Counsel Alyssa Willson (via phone) Hopping, Green & Sams Also present were the following District residents: Dr. James Verbist, Frank Puglia, Chuck Murray, Mike Dellesaks, Jeff Wassman, Lydia Brady, James Barnes, Irene & Bryson Gilliland. D. ADDITIONS OR DELETIONS TO THE AGENDA There were no additions or deletions to the agenda. E. COMMENTS FROM THE PUBLIC FOR ITEMS NOT ON THE AGENDA There were no comments from the public for items not on the agenda. F. APPROVAL OF MINUTES 1. April 3, 2018, Regular Board Meeting The minutes of the April 3, 2018, Regular Board Meeting were presented for approval. Page 1 of 4 Page 2

5 WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT PUBLIC HEARING & REGULAR BOARD MEETING JUNE 5, 2018 Ms. Ray noted that Mr. Evans was not at that meeting. A motion was then made by Ms. Ray, seconded by Mr. Brooks and passed unanimously approving the minutes of the April 3, 2018, Regular Board Meeting, as amended. The Regular Board Meeting was then recessed and the Public Hearing was opened. G. PUBLIC HEARING 1. Proof of Publication Proof of publication was presented that Notice of the Public Hearing had been published in the Naples Daily News on May 16, 2018, and May 23, 2018, as legally required. 2. Receive Public Comment on Fiscal Year 2018/2019 Final Budget There was no public comment on the Fiscal Year 2018/2019 Final Budget. 3. Consider Resolution No Adopting a Fiscal Year 2018/2019 Final Budget Resolution No was presented, entitled: RESOLUTION THE ANNUAL APPROPRIATION RESOLUTION OF THE WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT ( DISTRICT ) RELATING TO THE ANNUAL APPROPRIATIONS AND ADOPTING THE BUDGETS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2018, AND ENDING SEPTEMBER 30, 2019; AUTHORIZING BUDGET AMENDMENTS; AND PROVIDING AN EFFECTIVE DATE. A motion was made by Mr. Fiesler, seconded by Ms. Ray and passed unanimously to adopt Resolution No , as presented. 4. Receive Public Comment on Fiscal Year 2018/2019 Assessment Roll There was no public comment on the Fiscal Year 2018/2019 Assessment Roll. Roll 5. Consider Resolution No Adopting a Fiscal Year 2018/2019 Assessment Resolution No was presented, entitled: RESOLUTION A RESOLUTION OF THE BOARD OF SUPERVISORS OF Page 2 of 4 Page 3

6 WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT PUBLIC HEARING & REGULAR BOARD MEETING JUNE 5, 2018 THE WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT MAKING A DETERMINATION OF BENEFIT AND IMPOSING SPECIAL ASSESSMENTS FOR FISCAL YEAR 2018/2019; PROVIDING FOR THE COLLECTION AND ENFORCEMENT OF SPECIAL ASSESSMENTS; CERTIFYING AN ASSESSMENT ROLL; PROVIDING FOR AMENDMENTS TO THE ASSESSMENT ROLL; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. A motion was made by Ms. Ray, seconded by Mr. Fiesler and passed unanimously to adopt Resolution No , as presented. The Public Hearings were then closed and the Regular Board Meeting was reconvened. H. OLD BUSINESS There were no Old Business items to come before the Board. I. NEW BUSINESS 1. Consider Resolution No Adopting a Fiscal Year 2018/2019 Meeting Schedule Resolution No was presented, entitled: RESOLUTION NO A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT, ESTABLISHING A REGULAR MEETING SCHEDULE FOR FISCAL YEAR 2018/2019 AND SETTING THE TIME AND LOCATION OF SAID DISTRICT MEETINGS; AND PROVIDING AN EFFECTIVE DATE. A motion was made by Ms. Ray, seconded by Mr. Brooks and passed unanimously to adopt Resolution No , as presented. 2. Consider Resolution No Adopting a Statewide Mutual Aid Agreement Resolution No was presented, entitled: RESOLUTION NO A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT, STATE OF Page 3 of 4 Page 4

7 WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT PUBLIC HEARING & REGULAR BOARD MEETING JUNE 5, 2018 FLORIDA, APPROVING THE REVISED FLORIDA STATEWIDE MUTUAL AID AGREEMENT; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. A motion was made by Ms. Ray, seconded by Mr. Brooks and passed unanimously to adopt Resolution No , as presented. J. ADMINISTRATIVE MATTERS Ms. Willson advised that the District would begin procedures for bond issuance and she anticipates a special meeting being necessary in late summer on the issue. K. BOARD MEMBER COMMENTS There were no comments from the Board Members. L. ADJOURNMENT There being no further business to come before the Board, the Regular Board Meeting was adjourned at 1:15 p.m. on a motion made by Mr. Fiesler, seconded by Ms. Ray and passed unanimously. Chairman/Vice Chairman Secretary/Assistant Secretary Date Approved Page 4 of 4 Page 5

8 RESOLUTION A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT ADOPTING AN AMENDED AND RESTATED ENGINEER S REPORT; ADOPTING AN AMENDED AND RESTATED ASSESSMENT METHODOLOGY REPORT; PROVIDING FOR CONFLICTS, SEVERABILITY AND AN EFFECTIVE DATE. WHEREAS, the District is a local unit of special-purpose government established pursuant to the Uniform Community Development District Act of 1980, as codified in Chapter 190, Florida Statutes (the Act ), by ordinance of Collier County, Florida; and WHEREAS, the District was created for the purpose of delivering certain community development services and facilities that have been further described in the District s Improvement Plan, and to finance such improvements through the issuance of bonds and notes, which bonds and notes will be repaid by the imposition of special assessments on benefitted property within the District and any additional revenue sources permitted by Florida law; and WHEREAS, the District authorized the issuance and sale of its $7,535,000 Special Assessment Bonds, Series 2015 (Phase 1 and Phase 2 Assessment Area) (the 2015 Bonds ) to pay all or a part of the costs of the design, permitting, acquisition, construction and installation of certain improvements and facilities all as permitted by the Act; and WHEREAS, the District previously adopted the Winding Cypress Community Development District Engineer s Report, dated September 22, 2015 (the Engineer s Report ), which describes the District s capital improvement project; and WHEREAS, the District also previously adopted the Master Assessment Report, dated September 22, 2015, as revised December 1, 2015, and as supplemented by the Supplemental Special Assessment Report, dated September 10, 2015 (collectively, the Assessment Report ), which describes the method of allocating the District s debt to properties based upon the benefits each receives from the capital improvement plan; and WHEREAS, the land use plan for the benefitted area has changed; and WHEREAS, the District desires to adopt the Restated Master Engineer s Report, dated September 4, 2018, attached hereto and incorporated herein by reference as Exhibit A ( 2018 Amended Engineer s Report ); and WHEREAS, the District also desires to adopt the Amended and Restated Master Special Assessment Methodology Report & Amended and Restated Supplemental Special Page 6

9 Assessment Methodology Report, dated October 2, 2018, attached hereto and incorporated herein by reference as Exhibit B ( 2018 Amended Assessment Report ). NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT: SECTION 1. The recitals as stated above are true and correct and by this reference are incorporated into and form a material part of this Resolution. SECTION 2. The Board hereby adopts the District s 2018 Amended Engineer s Report, attached hereto and incorporated by reference herein as Exhibit A. SECTION 3. The Board hereby adopts the District s 2018 Amended Assessment Report, attached hereto and incorporated by reference herein as Exhibit B. SECTION 4. If any section or part of a section of this resolution be declared invalid or unconstitutional, the validity, force and effect of any other section or part of a section of this resolution shall not thereby be affected or impaired unless it clearly appears that such other section or part of a section of this resolution is wholly or necessarily dependent upon the section or part of a section so held to be invalid or unconstitutional. SECTION 5. This Resolution shall become effective upon its adoption. PASSED AND ADOPTED this 2 nd day of October, ATTEST: WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT Secretary Chairman, Board of Supervisors Exhibit A: Restated Master Engineer s Report, dated September 4, 2018 Exhibit B: Amended and Restated Master Special Assessment Methodology Report & Amended and Restated Supplemental Special Assessment Methodology Report, dated October 2, 2018 Page 7

10 Winding Cypress Community Development District Amended and Restated Master Engineer s Report September 24, 2018 Prepared by: J.R. Evans Engineering, P.A Corkscrew Road, Ste. 102 Estero, FL Page 8

11 Table of Contents Sections: Section 1.0 Section 2.0 Section 3.0 Section 4.0 Section 5.0 Section 6.0 Introduction Status of Project Approvals General Description of Bond Issues Stormwater Management System Cost Estimates for the Development Improvements Conclusion Exhibits: Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4A Exhibit 4B Exhibit 4C Exhibit 5 Location Map District Boundaries Map Development and Phasing Plan Stormwater Management System Phase I Stormwater Management System Phase II Stormwater Management System Phase III Conservation Areas Page 9

12 Section 1.0 Introduction Winding Cypress Community Development District (the District ) contains approximately acres and is located in the unincorporated area of Collier County. The development site is located at the Northeast quadrant of the intersection of Tamiami Trail East (US 41) and Collier Boulevard (CR-951). Exhibit 1 depicts the general location and Exhibit 2 depicts the boundaries of the District. There is a 25.1 acre parcel of land located within the external boundaries of the District that is excluded from the boundaries of the District. Said parcel of land is encumbered with a conservation easement recorded in O.R. Book 5056, Pg of the Public Records of Collier County, Florida and will receive no benefit from the proposed improvements to be provided by the District. The area of land within the District is part of a larger planned unit development (PUD) for which a development plan has been approved by Collier County, Ordinance The Winding Cypress PUD encompasses 1,928 acres of land located in Sections 26, 34, and 35, Township 50 South, Range 26 East, and Sections 2 and 3, Township 51 South, Range 26 East, Collier County, Florida. The number of dwelling units proposed to be constructed within the PUD is 2,854 units. Winding Cypress PUD (the PUD ) is a large scale functionally interrelated community, and is planned to encourage ingenuity, innovation, and imagination as set forth in the Collier County Land Development Code (LDC) Planned Unit Development District. The Verona Walk CDD and conservation lands make up the remainder of the Winding Cypress PUD (located to the North of the District) utilizing the net units in the PUD. The Verona Walk CDD is also identified on Exhibit 1. The development plan for the District contemplates approximately 766 single-family residential units along with a community amenity center. Buildout of the home sites within the District is anticipated to occur over the next 2 years ( ). Exhibit 3 Development Plan and Phasing depicts the overall plan of development of the Developer via three phases, generally as follows: Phase 1 ( ) Phase 2 ( ) Phase 3 ( ) Has completed of all infrastructure and contains 153 platted lots, an amenity center, entry feature, entry roadway, and 17.2 acres of lakes. Has completed all infrastructure and contains 411 platted lots, and 43.4 acres of lakes; and Anticipates construction of 202 platted lots, 10 currently constructed and platted lots, 25.3 acres of lakes and acquire conservation area at no cost. Page 10

13 Section 2.0 Status of Project Approvals The following list includes the master development permits that are required prior to Collier County construction permits: 1. South Florida Water Management District (the SFWMD ) Environmental Resource Permit (the ERP ), permit No P. 2. Unites States Army Corp. of Engineers (the ACOE ) Permit No. SAJ (IP-MJD) 3. Collier County PUD Zoning Ordinance The following list includes Collier County development approval plat and permit approvals required for construction per phase and their status: 1. Winding Cypress Phase I Plat and Plan (the PPL ) - Approved and plat recorded as found in the official records, OR Book 57, Page 89 of the Public Records of Collier County 2. Winding Cypress Phase II PPL Approved and plat recorded as found in the official records, OR Book 60, Pages of the Public Records of Collier County 3. Winding Cypress Phase III PPL Approved. Plat not yet recorded Page 11

14 Section 3.0 General Description of the Bond Issues This consulting Engineer s Report addresses the public infrastructure improvements to be undertaken by the District with respect to the issuance of special assessment Bonds (the Bonds ). The District has and expects to finance a portion of these infrastructure improvements through the issuance of the Bonds. The Bonds proceeds will provide the funding for a portion of the required infrastructure improvements described in this report through a deposit into a construction fund that will be used to acquire the improvements constituting the infrastructure improvements, as certified by the District Engineer. The infrastructure improvements are shown on Exhibits 4A, 4B & 4C depicting the Stormwater Management System. These infrastructure improvements will give special benefit to all lands in the District. Special benefit is a required determination in order to make use of the proceeds of any special assessment bonds issued by the District. The district may also maintain conservation areas provided in conservation easements outside of district boundaries as required in the SFWMD permit (Permit No P). Bond proceeds will not be used to construct or acquire the conservation areas. See Exhibit 5 for preserve locations to be maintained by the District. Page 12

15 Section 4.0 Stormwater Management System The approved conceptual development plan for Winding Cypress PUD provides for approximately 85.9 acres of stormwater management lakes that are located within the District. These lakes are to provide for both water quality treatment and water attenuation for the proposed 766 single family units, all associated roadways, common areas, and the amenity center. The Winding Cypress CDD stormwater management system is generally depicted in Exhibit 4 Stormwater Management System. The District s stormwater management system will convey runoff from the individual residential lots via a system of gutters, inlets and piping into the lakes for treatment purposes. The lakes within the District are designed with large pipe interconnects that allows for the cross conveyance of the stormwater runoff from lake to lake and ultimately into the adjacent wetland slough system. To ensure compliance with the SFWMD regulatory requirements, control structures have been installed on the outfall pipes leaving the lakes and regulate the individual lake levels. The overall project designs provide for a regulated outfall point from the onsite stormwater treatment network into the natural wetland slough system that expands through the center of the development. Construction of the District s stormwater remaining improvements is proposed to occur over the next two years (through 2020) and has been constructed in three (3) separate phases. Generally, descriptions of the stormwater infrastructure for each phase of Winding Cypress CDD are as follows: Phase I - Phase II - Phase III - Construction of 17.2 acres of lakes, 30,696 linear feet of gutters, 11,285 feet of pipe culverts, 8 large box culverts, and related berms and canals. This phase has been completed. Construction of approximately 43.4 acres of lakes, 37,425 feet of gutters, 12,684 feet of pipe culverts, 23 large box culverts, and related berms and canals. This phase has been completed. Construction of approximately 25.3 acres of lakes, 20,365 feet of gutters, 6,409 feet of pipe culverts, 15 large box culverts, and related berms and canals. This phase is under construction. The District s stormwater system was designed, permitted, and will be constructed based on the following design events: Roads and Basins - 25 year - 3-day storm event Buildings and Residences year - 3-day storm event Page 13

16 Section 5.0 Cost Estimates for the District s Improvements The estimates of probable cost have been prepared for the District by J.R. Evans Engineering, P.A. as the District Engineer. These estimates are based on permitted construction plans, the actual cost of Phase I as provided by the Developer and estimates of probable construction cost for Phases II and III based on similar projects located in Collier County. The Engineering Estimate of Probable Cost has been determined to be approximately $13,124,882. The Engineers Estimate of Probable Cost for the components of the Winding Cypress CDD are shown in Table 1. Table 1 Opinion of Probable Construction for the Project Infrastructure Stormwater Management Phase I and II Phase III Total Project Gutters/Curbing $459,296 $291,267 $750,563 Earthwork/Excavation* $4,009,628 $2,975,459 $6,985,087 Drainage Pipes and Structures $3,132,078 $2,257,154 $5,389,232 Total per Phase $7,601,002 $5,523,880 $13,124,882 *There is no excess excavation beyond minimum requirements for stormwater management or imported material utilized for filling residential tracts included in the referenced costs. Page 14

17 Section 6 Conclusion Based on this document prepared by J.R. Evans Engineering, P.A. and with the reliance of the information provided by the County and the Developer, the following findings are made: 1. Lands included within the Winding Cypress CDD are fully vested in Collier County for the proposed 766 single family units. 2. The master development entitlements are in good standing 3. Construction of the Phase I and II infrastructure has been completed and has been accepted and certified. 4. The sales center located in Phase I of the Development has been issued a Certificate of Occupancy and is open for business 5. The infrastructure design is based on sound engineering principals 6. All state and federal permits necessary to build the infrastructure have been obtained 7. Conceptual approval for all future phases has been obtained and final construction authorization is anticipated to be issued upon submittal of construction plans and plat. 8. The special benefit the single-family lot will receive as a result of the public infrastructure described herein is greater than the cost of such improvements. Respectfully Submitted, Joshua R. Evans, P.E District Engineer Florida Engineer No Page 15

18 Exhibits Page 16

19 0 1,000' 2,000' SCALE: 1" = 2,000' WINDING CYPRESS PUD WINDING CYPRESS CDD WINDING CYPRESS CDD WC CDD PLAN DWG EVANS EXHIBIT 1-LOCATION MAP September 24, 2018 J.R. ENGINEERING Page 17

20 NOT TO SCALE J.R.EVANS ENGINEERING WINDING CYPRESS CDD EXHIBIT 2-DISTRICT BOUNDARIES MAP WC CDD PLAN DWG September 24, 2018 Page 18

21 NOT TO SCALE WINDING CYPRESS CDD WC CDD PLAN DWG EVANS EXHIBIT 3-DEVELOPMENT AND PHASING PLAN September 24, 2018 J.R. ENGINEERING Page 19

22 0 200' 400' SCALE: 1" = 400' PHASE 1 BOUNDARY WINDING CYPRESS CDD WC CDD PLAN DWG EVANS EXHIBIT 4A-PHASE 1-STORMWATER MANAGEMENT SYSTEM September 24, 2018 J.R. ENGINEERING Page 20

23 0 350' 700' SCALE: 1" = 700' PHASE 2 BOUNDARY PHASE 3 BOUNDARY WINDING CYPRESS CDD WC CDD PLAN DWG EVANS EXHIBIT 4B-PHASE 2-STORMWATER MANAGEMENT SYSTEM September 24, 2018 J.R. ENGINEERING Page 21

24 0 200' 400' SCALE: 1" = 400' PHASE 3 BOUNDARY WINDING CYPRESS CDD WC CDD PLAN DWG EVANS EXHIBIT 4C-PHASE 3-STORMWATER MANAGEMENT SYSTEM September 24, 2018 J.R. ENGINEERING Page 22

25 0 200' 400' SCALE: 1" = 400' WINDING CYPRESS CDD WC CDD PLAN DWG EVANS CDD CONSERVATION RESPONSIBILITY EXHIBIT September 24, 2018 J.R. ENGINEERING Page 23

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50 MASTER SPECIAL ASSESSMENT METHODOLOGY REPORT FOR WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT PHASE III ASSESSMENT AREA Prepared for the Board of Supervisors October 2, 2018 SPECIAL DISTRICT SERVICES,INC. 2501A Burns Road Palm Beach Gardens, Florida (561) Telephone (877) Toll Free (561) Facsimile Page 48

51 1.0 INTRODUCTION & PURPOSE Winding Cypress (the Development ) is a planned residential development containing approximately /- acres and is located in the unincorporated area of Collier County, Florida (the County ). The Winding Cypress Community Development District (the District ) is co-terminus with the Development and is planned for a total of 766 residential dwelling units. The Phase I and Phase II Project of the Development has been substantially completed. This Master Special Assessment Methodology Report (the Master Report ) will specifically address Phase III of the Development which contemplates a total of 212 single family residential dwelling units. The District has been established pursuant to Chapter 190, Florida Statutes ( F.S. ), to provide for the construction, and/or acquisition, financing, long-term administration and management of certain public infrastructure deemed necessary to advance the Development. The District infrastructure improvements related to Phase III, as more specifically described in the Restated Master Engineer s Report, dated September 4, 2018 (the Restated Engineer s Report ), prepared by J.R. Evans Engineering, P.A., 9351 Corkscrew Road, Suite 102, Estero, Florida (the District Engineer ), consist of approximately 25.2+/- acres of stormwater management lakes that are to be located within Phase III of the District. These lakes are to provide for both water quality treatment and water attenuation for the proposed 212 residential units, all associated roadways, common areas and other related public improvements (the Phase III Project ). The Phase III Project will convey runoff from the individual residential lots via a system of gutters, inlets, piping, into the lakes for water quality treatment purposes. The lakes within the Phase III Project are designed with interconnecting pipes to allow for the cross conveyance of the stormwater runoff from lake to lake and ultimately into the adjacent wetland slough system. This Master Report will equitably allocate the costs being incurred by the District to provide the Phase III Project to the assessable lands within Phase III of the District (hereinafter the Phase III Assessment Area ). The implementation of the Phase III Project will convey special and peculiar benefits to such assessable properties within the Phase III Assessment Area of District. 2.0 PROJECTS TO BE FUNDED BY THE DISTRICT The Phase III Project as designed, is an integrated system of facilities that provides specific benefits to all of the assessable lands within the Phase III Assessment Area of the District. The total cost of the Phase III Project is currently estimated to be $5,523, The District anticipates issuing approximately $6,190, of Special Assessment Bonds, (Phase III Assessment Area) (the Bonds ) for the purpose of financing all or a portion of the Phase III Project. A detail of the total estimated costs of the Phase III Project is included herein on Table A. Any improvements relating to the Phase III Project not funded by the proposed Bonds will be completed by the Developer as defined herein. Under the phasing plan of the Development, the Phase III Project will be designed to be functional and confer special benefits to all assessable lands within the Phase III Assessment Area of the District. As such, the Phase III Project can be financed independently of the other phases. As the finance program is implemented for the Phase III Assessment Area, a 2 Page 49

52 supplemental methodology report or reports will be issued detailing the particulars of a specific bond issue. The supplemental report(s) will apply the principles set forth herein to determine the specific assessments required to repay the Bonds issued to fund the then current development program. The proposed Bonds will be repaid through the levy of non-ad valorem special assessments on all assessable property within the Phase III Assessment Area. The Phase III Project has been designed to be functional and confer special benefits to all assessable lands within the Phase III Assessment Area of the District. Any portion of the Phase III Assessment Area not financed through the issuance of the Bonds will be paid for by DiVosta Homes, L.P. (the Developer ). The stormwater management system will be constructed by the Developer or the District, and if constructed by the Developer, acquired by the District upon certification of completion. Upon such transfer to the District, the ownership, operation and maintenance of the stormwater management system will be the responsibility of the District. The construction costs identified in this Master Report were provided by the District Engineer, J.R. Evans Engineering, P.A. Special District Services, Inc., as District Manager, makes no representation regarding the accuracy or validity of those costs and did not undertake any analysis or verification regarding such costs. 3.0 FUNDING OF IMPROVEMENTS To defray the costs of construction of the Phase III Project, the District will impose non-ad valorem special assessments on benefited real property within the Phase III Assessment Area. These assessments are based on the special and peculiar benefits accruing to such property from the improvements comprising the Phase III Project. The use of non-ad valorem special assessments has an advantage in that the properties that receive the special benefits from the Phase III Project are the only properties that are obligated to pay for those facilities and services. Without these improvements, development of the property within the Phase III Project would not be possible. The capital facilities which will be funded through these special assessments include only facilities which may be undertaken by a community development district under Chapter 190, F.S. In summary, special assessments may be levied only against certain property: (1) for facilities which provide special benefits to such property as distinct from general benefits, (2) only against property which receives that special benefit, (3) in proportion to the benefits received by the properties, and (4) according to fair and reasonable methods that the governing body of the jurisdiction determines. The special assessments placed upon various benefited properties in the Phase III Assessment Area of the District must be sufficient to cover the debt service of the Bonds that will be issued for financing all or a portion of the Phase III Project and the costs to maintain those portions of the infrastructure that remain under the ownership of the District. The assessments must be fairly and reasonably allocated to the properties being assessed. 4.0 ALLOCATION OF COSTS AND ASSESSMENTS In developing the methodology used for special assessments within the Phase III Assessment Area in the District, two (2) interrelated factors were used: 3 Page 50

53 A. Allocation of benefit: Each parcel of land and/or lot within the Phase III Assessment Area in the District benefits from the proposed improvements. B. Cost/Benefit: The special assessments imposed on each parcel of land and/or lot within the Phase III Assessment Area cannot exceed the value of the benefits provided to such parcel(s). The Phase III Project is an integrated system of facilities designed to provide special and peculiar benefits to all the residential units/lots in the Phase III Assessment Area of the District. For the purpose of this Master Report, it is determined that each 65 single family residential unit is defined as one (1) equivalent residential unit ( ERU ) and each 50 single family residential unit is defined as.916 of one (1) ERU. These ERU factors are reasonable and consistent with those used in similarly situated communities. Upon the sale of the proposed Bonds, the District s debt will be allocated to each assessable 50 single family residential unit/lot and to each assessable 65 single family residential unit/lot, respectively, on an ERU basis as shown herein on Table F. At this time the Phase III Assessment Area has been platted and the Developer is awaiting the recorded plat. Therefore, the debt assessment will be assigned on a first platted first assessed basis to platted lots receiving property folio numbers; and allocated on an ERU basis as shown herein on Table F. In addition to the special assessments imposed for debt service on the proposed Bonds, the District will also levy an annual administrative assessment to fund the costs of operating and managing the District. As each residential dwelling unit/lot will benefit equally from the operation and management of the District and the Phase III Project, the annual operation and management assessments will be allocated equally to each residential unit/lot within the Phase III Assessment Area on a per unit/lot basis. Given the District s land use plan and the type of infrastructure and/or services to be funded by the special assessments, this method will result in a fair allocation of benefits and services and an equitable allocation of costs for the proposed Bonds. However, if the future platting results in changes in land use or proportion of benefit per unit, this allocation methodology may not be applicable and it may be necessary for the District to revise this methodology. 5.0 COLLECTION OF SPECIAL ASSESSMENTS The proposed special assessments for the District will be collected through the Uniform Method of Collection described in Chapter 197, Section ; F.S. or any other legal means available to the District. Since there are costs associated with the collection of the special assessments (whether by uniform method of collection as authorized under Chapter , F.S., or other legal means available to the District), these costs must also be included in the special assessment levy. These costs generally include the 2% collection fee of the County Tax Collector, a 1.5% service fee of the County Property Appraiser and a 4% discount for early payment of taxes. These additional costs may be reflected by dividing the annual debt service and maintenance assessment amounts by a factor of Page 51

54 6.0 FINANCING STRUCTURE The estimated cost for the Phase III Project is approximately $5,523,880. The construction program and the costs associated therewith are identified herein in ontable A. A portion of the capital improvements comprising the Phase III Project is assumed to be financed by the proposed Bonds when issued which will be payable from and secured by special assessments levied annually against all benefitted properties within the Phase III Assessment Area of the District. Based on the current market conditions the total aggregate principal amount of the proposed Bonds for the Phase III Project is shown herein on Table B. The proceeds of the anticipated Bonds will provide approximately $5,523, for construction and related costs as shown herein on Table B. The sizing of the proposed Bonds will include a debt service reserve fund currently assumed to be 50% of the maximum annual debt service, issuance costs and other assumptions as shown herein on Table B. 7.0 MODIFICATIONS, REVISIONS AND TRUE-UP MECHANISIM Allocation of Phase III Project benefit and proposed Bond debt, shown herein on Table C and Table D, for the Phase III Project to be financed by the District shall be based on the planned 212 residential dwelling units in the Phase III Assessment Area, all of which are benefited by the Phase III Project. Based on a par Bond size of approximately $6,190, at an assumed interest rate of approximately 5.25% the estimated annual debt service on the proposed Bonds will be approximately $414, which has not been grossed up to include the 2% County Tax Collector fee, 1.5% County Property Appraiser fee, and 4% discount for early payment of taxes. To ensure that each residential unit is assessed no more than their pro-rata amount of the annual debt service shown in Table E and Table F, the District will be required to perform a rue- p analysis, which requires a computation at the time of submission of each plat or re-plat to determine the potential remaining assessable dwelling units. The District shall, at the time a plat or re-plat is submitted to the County: A. Assume that the total number of assessable residential units/lots being utilized as a basis for this assessment methodology is single family residential units/lots and single family residential units/lots ( Total Assessable Units/Lots ). B. Ascertain the number of assessable residential dwelling units/lots in the plat (unrecorded at this time) or re-plat and all prior plats ( Planned Assessable Units/Lots ). C. Ascertain the current amount of potential remaining assessable dwelling units/lots ( Remaining Assessable Units/Lots ). If the Planned Assessable Units/Lots are equal to the Total Assessable Units/Lots no action would be required at that time. However, if the sum of the Planned Assessable Units/Lots and the Remaining Assessable Units/Lots are less than the Total Assessable Units/Lots, then, the Developer will be obligated to remit to the District an amount of money sufficient to enable the District to retire an amount of proposed Bonds such that the amount of debt service allocated to each Planned Assessable Unit/Lot does not exceed the amount of debt service that would have been allocated thereto had the total number of Planned Assessable Units/Lots been, single family residential units/lots and single family residential units/lots. 5 Page 52

55 All assessments levied run with the land. A determination of a true-up payment shall be at the sole discretion of the District. It is the responsibility of the landowner of record to make any required true-up payments that are due including any accrued interest. The District will not release any liens on the property for which true-up payments are due until provision for such payment has been satisfied. It is recommended that the true-up mechanism be formalized in an agreement between the District and the Developer. In the event that additional land is annexed into the District which is currently not subject to the assessments and is developed in such a manner as to receive special benefit from the Phase III Project described herein, it will be necessary for this assessment methodology to be re-applied to include such parcels. The additional land will, as a result of re-applying this allocation methodology, then be allocated an appropriate share of the special assessments while all currently assessed parcels will receive a relative reduction in their assessments. 8.0 PRELIMINARY ASSESSMENT ROLL The lands in the Phase III Assessment Area within the District boundaries consist of approximately /- acres and ten (10) residential lots (Winding Cypress Phase 2 Replat) as described in Exhibit A attached hereto. As of the date of this Master Report the Phase III Assessment Area has been platted and the Developer is awaiting the recorded plat. The anticipated par amount of Bonds to be borrowed by the District to pay for the Project is approximately $6,190, The District s debt will be allocated to each assessable 50 single family residential unit/lot and to each assessable 65 single family residential unit/lot, respectively, on an ERU basis as shown herein on Table F. When completely developed, the Phase III Assessment Area will include single family residential units and single family residential units for a total of 212 single family residential units as shown herein on Table F and Exhibit A. 9.0 ADDITIONAL STIPULATIONS Certain financing, development, and engineering data was provided by members of District staff and/or the Developer. The allocation methodology described herein was based on information provided by those professionals. Special District Services, Inc. makes no representations regarding said information transactions beyond restatement of the factual information necessary for compilation of this Supplemental Report. Special District Services, Inc. does not represent the District as a Municipal Advisor or Securities Broker nor is Special District Services, Inc. registered to provide such services as described in Section 15B of the Securities and Exchange Act of 1934, as amended. Similarly, Special District Services, Inc. does not provide the District with financial advisory services or offer investment advice in any form. ************* 6 Page 53

56 TABLE A WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT PHASE III PROJECT ESTIMATED COSTS ESTIMATED COSTS GUTTERS/CURBING $ 291, EARTHWORK/EXCAVATION $ 2,975, DRAINAGE PIPES/STRUCTURES $ 2,257, TOTAL ESTIMATED PROJECT COSTS $ 5,523, Page 54

57 TABLE B WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT PHASE III PROJECT BOND SIZING BOND SIZING Par Amount $ 6,190, Debt Service Reserve Fund (50% MADS) $ (207,185.00) Capitalized Interest (6 months) $ (162,548.00) Issuance Costs $ (296,387.00) Rounding $ - Construction Funds $ 5,523, Bond Interest Rate (Assumed) 5.25% * Principal Amortization Period (Years) 30 *Subject to Change at Final Bond Pricing Page 55

58 TABLE C WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT PHASE III PROJECT PROJECT BENEFIT ALLOCATION Development Plan Type of Use Number of Units by Type ERU Factor* Total ERUs* Phase III Project Benefit Allocation Per Type* Phase III Project Benefit Allocation Per Unit* Single Family 50' Unit $3,404,181 $25,216 Single Family 65' Unit $2,119,699 $27,529 Total Units 212 N/A 201 $5,523,880 N/A *Rounded Page 56

59 TABLE D WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT PHASE III PROJECT BOND DEBT ALLOCATION Development Plan Type of Use Number of Units by Type ERU Factor* Total ERUs* Bond Debt Allocation Per Unit Type* Bond Debt Allocation Per Unit* Single Family 50' Unit $3,814,689 $28,257 Single Family 65' Unit $2,375,311 $30,848 Total Units 212 N/A 201 $6,190,000 N/A *Rounded Page 57

60 TABLE E WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT PHASE III PROJECT ANNUAL DEBT SERVICE ASSESSMENT Annual Bond Debt 1 Maximum Annual Debt Service $ 414, Maximum Annual Debt Service Assessment to be Collected $ 447, * 3 Total Number of Gross Acres in Phase III Assessment Area This Space Has Been Intentionally Left Blank 5 Total Number of Residential Units in Phase III Assessment Area Maximum Annual Debt Service per Unit Type See Table F *Grossed up to include 2% collection fee of the County Tax Collector, 1.5% service fee of the County Property Appraiser and 4% for early payment of taxes. These costs will not apply if the special assessments securing the Bonds are being direct billed. Page 58

61 TABLE F WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT PHASE III PROJECT ALLOCATION OF DEBT SERVICE ASSESSMENTS PRELIMINARY ASSESSMENT ROLL (PHASE III ASSESSMENT AREA) Development Plan Type of Use Number of Units by Type ERU Factor* Total ERUs* **Maximum Annual Debt Assessment Per Unit* PAR Debt Assigned Per Unit Type* **Maximum Annual Debt Assessment Per Unit Type* Single Family 50' $2,045 $3,816,795 $276,117 Single Family 65' $2,232 $2,375,764 $171,829 Total Units 212 N/A 201 N/A $6,190,000 $447,946 *Rounded **Grossed up to include 2% collection fee of the County Tax Collector, 1.5% service fee of the County Property Appraiser and 4% for early payment of taxes. These costs will not apply if the assessments securing the Bonds are being direct billed. Page 59

62 EXHIBIT A (2 Pages) WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT PHASE III ASSESSMENT AREA PRELIMINARY ASSESSMENT ROLL LEGAL DESCRIPTION OF PART OF SECTIONS 2 AND 3, TOWNSHIP 51 SOUTH, RANGE 26 EAST, COLLIER COUNTY, FLORIDA (WINDING CYPRESS PHASE 3) BEGINNING AT THE SOUTHWEST CORNER OF WINDING CYPRESS PHASE 2, A SUBDIVISION ACCORDING TO THE PLAT THEREOF, AS RECORDED IN PLAT BOOK 60, PAGES 73 THROUGH 84, OF THE PUBLIC RECORDS OF COLLIER COUNTY, FLORIDA; THENCE ALONG THE NORTH RIGHT-OF-WAY LINE OF TAMIAMI TRAIL (US-41), NORTH 54 21'26" WEST 2, FEET; THENCE LEAVING SAID RIGHT-OF-WAY, NORTH 20 14'55" EAST 2, FEET; THENCE NORTH 69 45'05" WEST FEET; THENCE SOUTH 89 15'14" EAST FEET; THENCE NORTH 00 44'46" EAST FEET TO THE SOUTHWEST CORNER OF WINDING CYPRESS PHASE ONE, A SUBDIVISION ACCORDING TO THE PLAT THEREOF, AS RECORDED IN PLAT BOOK 57, PAGES 89 THROUGH 97, OF THE PUBLIC RECORD OF COLLIER COUNTY, FLORIDA; THENCE ALONG THE SOUTHERLY BOUNDARY OF SAID WINDING CYPRESS PHASE ONE, FOR THE FOLLOWING SIX (6) DESCRIBED COURSES: 1. SOUTH 89 15'14" EAST FEET; 2. THENCE FEET ALONG THE ARC OF A NON-TANGENTIAL CIRCULAR CURVE CONCAVE NORTH HAVING A RADIUS OF FEET THROUGH A CENTRAL ANGLE OF 38 46'00" AND BEING SUBTENDED BY A CHORD WHICH BEARS NORTH 72 06'33" EAST FEET; 3. THENCE SOUTH 56 44'45" EAST FEET; 4. THENCE FEET ALONG THE ARC OF A NON-TANGENTIAL CIRCULAR CURVE CONCAVE SOUTHEAST HAVING A RADIUS OF FEET THROUGH A CENTRAL ANGLE OF 07 51'20" AND BEING SUBTENDED BY A CHORD WHICH BEARS NORTH 37 10'55" EAST FEET TO A POINT OF REVERSE CURVATURE; 5. THENCE FEET ALONG THE ARC OF A CIRCULAR CURVE CONCAVE NORTHWEST HAVING A RADIUS OF FEET THROUGH A CENTRAL ANGLE OF 16 27'37" AND BEING SUBTENDED BY A CHORD WHICH BEARS NORTH 32 52'46" EAST FEET; 6. THENCE EAST FEET TO A POINT ON THE WESTERLY BOUNDARY OF AFOREMENTIONED WINDING CYPRESS PHASE TWO; THENCE ALONG SAID WESTERLY BOUNDARY, SOUTH 00 42'04" WEST 4, FEET TO THE POINT OF BEGINNING. CONTAINING ACRES, MORE OR LESS; AND THE FOLLOWING PLATTED LOTS OF WINDING CYPRESS PHASE 2 REPLAT: 1 Page 60

63 EXHIBIT A (2 Pages) WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT PHASE III ASSESSMENT AREA PRELIMINARY ASSESSMENT ROLL Folio Number/Property ID Lot Number Lot Size (Feet) ' ' ' ' ' ' ' ' ' ' 2 Page 61

64 RESOLUTION (PHASE 3) A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT DECLARING SPECIAL ASSESSMENTS; INDICATING THE LOCATION, NATURE 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 PAID; 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. WHEREAS, the Board of Supervisors (the Board ) of the Winding Cypress Community Development District (the District ) has determined to undertake, install, plan, establish, construct or reconstruct, enlarge or extend, equip, acquire, operate, and/or maintain the infrastructure improvements (the Improvements ) described in the District s Restated Master Engineer s Report, dated September 4, 2018, attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, it is in the best interest of the District to pay the cost 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; and WHEREAS, the District hereby determines that benefits will accrue to the property improved, the amount of those benefits, and that special assessments will be made in proportion to the benefits received as set forth in the Master Special Assessment Methodology Report for 1 Page 62