ARBORWOOD COMMUNITY DEVELOPMENT DISTRICT LEE COUNTY REGULAR BOARD MEETING JUNE 27, :00 A.M.

ARBORWOOD COMMUNITY DEVELOPMENT DISTRICT LEE COUNTY REGULAR BOARD MEETING JUNE 27, 2016 9:00 A.M. Special District Services, Inc. 27499 Riverview Center Boulevard, #253 Bonita Springs, FL 33134 www.arborwoodcdd.org 561.630.4922 Telephone 877.SDS.4922 Toll Free 561.630.4923 Facsimile

AGENDA ARBORWOOD COMMUNITY DEVELOPMENT DISTRICT Amenity Center Community Room Somerset at The Plantation 10401 Dartington Drive Fort Myers, FL, 33913 REGULAR BOARD MEETING June 27, 2016 9:00 a.m. A. Call to Order B. Proof of Publication..Page 1 C. Establish Quorum D. Additions or Deletions to Agenda E. Comments from the Public for Items not on the Agenda F. Approval of Minutes 1. May 16, 2016 Regular Board Meeting Minutes...Page 2 G. Old Business 1. Discussion Regarding Off-Site Panther Mitigation Maintenance Costs 2. Discussion Regarding Possible Violations of Trees Cut Down by Residents 3. Update of the Pulte ACOE Permit Extension 4. Update Regarding Hold Harmless Agreement with Hampton Golf 5. Update Regarding Street Lighting Agreement and Shields 6. Update Regarding Deeds and Records H. New Business 1. Consider Approval of Amended Consent Order with South Florida Water Management District Page 8 I. Administrative Matters J. Board Members Comments K. Adjourn

Page 1

A. CALL TO ORDER ARBORWOOD COMMUNITY DEVELOPMENT DISTRICT REGULAR BOARD MEETING MAY 16, 2016 The May 16, 2016, Regular Board Meeting of the Arborwood Community Development District was called to order at 9:02 a.m. in the Plantation Golf & Country Club located at 10500 Dartington Drive, Fort Myers, Florida 33913. B. PROOF OF PUBLICATION Proof of publication was presented that notice of the Regular Board Meeting had been published in the Fort Myers News-Press on May 9, 2016, 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 Terry Hammond (via Present conference call) Vice Chairman John Hamilton Present Supervisor Lawrence Carr Present Supervisor Joan Pattison Present Staff members in attendance were: District Manager Kathleen Dailey Special District Services, Inc. General Counsel Wes Haber (via conference call) Hopping Green & Sams, P.A. District Engineer Josh Evans J.R. Evans Engineering, P.A. Also present were: District resident and Transition Committee Member John Moulton (via conference call); District resident Peter Lombardi; Michael McElligott of Special District Services, In. (via conference call); Rachel Kanel, Manager of HOA/Evergreen; Golf Course Staff Andrew Dailidonis and Frank Lyda; and Jenny Grier of Bridgetown Ponds Group. D. ADDITIONS OR DELETIONS TO THE AGENDA Newly appointed Board Member, Gary Franz, was sworn in to Seat No. 2 by Ms. Dailey. E. COMMENTS FROM THE PUBLIC FOR ITEMS NOT ON THE AGENDA Peter Lombardi, a District resident, asked about the status of Plantation Garden Parkway. Ms. Dailey stated that this is not the CDD s responsibility and Mr. Hamilton added that it is a City street. F. APPROVAL OF MINUTES 1. April 18, 2016, Regular Board Meeting Page 1 of 6 Page 2

ARBORWOOD COMMUNITY DEVELOPMENT DISTRICT REGULAR BOARD MEETING MAY 16, 2016 The April 18, 2016, Regular Board Meeting minutes were presented for approval. Mr. Hamilton referred to Item I-1, noting that the last sentence should be attributed to John Moulton, not John Hamilton. A motion was then made by Mrs. Pattison, seconded by Mr. Carr and passed unanimously to approve the minutes of the April 18, 2016, Regular Board Meeting, as amended. G. OLD BUSINESS 1. Consider Response from Lot Owners Regarding Impact to Conservation Property Ms. Dailey explained the background on the violations and the response received from the lot owners. Mr. Hammond questioned why the ladies would have reached out to the City of Ft. Myers and Mr. Haber opined that sometimes municipalities have ordinances that govern replacing trees. Mr. Hammond added that the CDD s exposure may relate to other governmental agencies. In discussing the next step, Mr. Haber stated that the Board could file a lawsuit, but it may be better to have Mr. Evans try to get a better understanding of what the impact is to the District and its permits. Mr. Carr indicated that he was concerned about setting a precedence and selective enforcement. Mr. Haber opined that the Board has a right to make a decision on a case by case basis, based on the cost to the District and the surrounding circumstances, in addition to the fact that a bigger effort is now being made to educate the residents. Mr. Hammond stated that he has no comfort from the response of the homeowners that they would not impact the preserve again. Mr. Hamilton stated that he had found some items in the letter to be disingenuous and Mr. Carr agreed, stating that the owners had a survey that clearly showed where the boundaries are. Mr. Haber suggested sending a strongly worded response, noting that the District intends to hold them responsible for any impacts, will not release them from liability and reserves the right to file a lawsuit. There was general discussion regarding possible fines and fixing the impacts. Mr. Evan noted this should be turned over to Mike Myers of Passarella for his review and to write a plan. A motion was made by Mrs. Pattison, seconded by Mr. Carr and passed unanimously directing Mr. Haber to prepare a strongly worded letter to the two homeowners, putting them on notice and for Mr. Evans to contact Mike Myers of Passarella for him to review the situation. 2. Discussion Regarding Wet Plan Presentation Mr. Carr gave a background on the presentation and there was general discussion on a date to hold the workshop. Mr. Hammond suggested combining the October and November meetings and setting an earlier meeting date in November. It was the consensus of the Board to shoot for November 14, 2016, to hold such a Board Meeting, followed by the Wet Plan Presentation Workshop. 3. Update on Golf Course Renovation Page 2 of 6 Page 3

ARBORWOOD COMMUNITY DEVELOPMENT DISTRICT REGULAR BOARD MEETING MAY 16, 2016 Mr. Evans stated that he had gone to look at the area for erosion issues and indicated that the stockpiles had silt fences around them and that the renovations taking place are only on the greens. He noted that everything being done is appropriate and stated that Hole #5 had a lot of erosion and he would be working with Golf Course Maintenance on the issue. Frank Lyda noted that he is aware of the issue and would be addressing it. 4. Update on Hold Harmless Agreement with Hampton Golf Mr. Haber reminded the Board that this was the issue where the golf course removed trees. He further explained that through communication, the golf course has agreed to address and hold the CDD harmless. However, he pointed out the golf course s insurance company, who will be addressing the claim, will not let the golf course enter into a Hold Harmless Agreement with the CDD. Andrew Dailidonis, regional manager of the golf course, stated that the trees off Hole #8 were thought to have been golf course property and that they agree to address and pay any penalties. Mr. Hamilton stated that he had no problem with not having the Hold Harmless Agreement since they are being cooperative and addressing the issue. Mr. Lyda asked if they could get a map to which Mr. Evans indicated he would provide one. 5. Update on Street Lighting Agreement and Shields Mr. Evans reported that the initial shields did not work and that he had been told that new ones were to be installed on May 23, 2016. On a similar issue, Mr. Evans stated that the City of Ft. Myers continue to ask why the District has not spent money on lighting Plantation Gardens. Mr. Hammond opined that the original proposal included street lighting on Plantation Gardens, but the Board decided to move the funding to Treeline, so Plantation Gardens was never part of the contract. Mr. Pattison asked about trying to get the City to pay for the electric and Mr. Evans stated that he would reach out to the City on the issue. 6. Discussion Regarding Pond Issues along Treeline Across from Plantation Mr. Evans reported that there was nothing new on the issue, but that he had finished up the inspection and should have a report by the next meeting. Mr. Haber indicated that he had been in negotiations with Centex and is waiting to hear back from them. 7. Update on Deeds and Records Mr. Evans indicated that he was going back to re-verify areas and would be looking at the plats and deeds that have already been recorded. He recommended that the information on the pipes for which the CDD is responsible, should be added to the GIS maps, which would be about 40-50 hours worth of work. John Moulton stated that the Transition Committee would be obtaining a survey and Mr. Evans suggested that they get in touch with him so that they may work together. It was the consensus of the Board for JR Evans Engineering to add the piping to the GIS system. Page 3 of 6 Page 4

ARBORWOOD COMMUNITY DEVELOPMENT DISTRICT REGULAR BOARD MEETING MAY 16, 2016 H. NEW BUSINESS 1. Discussion Regarding Traffic Monitoring Mr. Evans noted that the report had been distributed to the Board and that everything is right in line with no real issues. There was discussion on whether the report anticipated full build-out to which Mr. Evans stated that it did, as well as the fact that build-out was less than anticipated. 2. Discussion on Future of Pond Maintenance Responsibility Ms. Dailey stated that she wanted the Board to discuss this issue before reviewing their budget. Mr. Hamilton brought to the attention of the Board an Agreement Regarding Grant of Non- Exclusive Permanent Easements with Bridgetown. In Section 2.1 of that Agreement, subparagraph (B), he read the following language: The Lake Parcels and the Conservation Parcels shall be maintained at all times in accordance with all requirements of applicable permits, approvals, rules, regulations, codes and law, including, without limitation, the periodic removal of exotic plants from the Conservation Parcels. The Association shall have the primary maintenance responsibility for the Lake Parcels and the Conservation Parcels, and the easement granted to Developer in this section is only in the event the Association shall fail to maintain and the Developer elects, as determined in its sole discretion, to undertake all or a part of such maintenance responsibilities. The Association agrees to include the costs of such maintenance as a Common Expense (as defined in the Declaration) of the Association and to levy assessments therefore under the Declaration. The CDD agrees that in consideration of the agreement of the Association to undertake the maintenance of the Lake Parcels and the Conservation Parcels, that the CDD shall not include the cost of such maintenance in any assessments or charges that are levied by or for the benefit of the CDD, except as may be necessary to exercise the rights reserved by the CDD in Section 5 below. Mr. Hamilton stated that although he has been pushing all along for pond responsibility by the CDD, he believes it is a violation of the agreement to levy assessments in order to do so. Mr. Carr opined that although he is supportive of the idea of the CDD taking over responsibility, he believes the CDD needs to look further into the cost and do what is right, not necessarily what is fast. Mr. Hammond agreed and stated that it needs to be handled one step at a time. Mr. Hamilton stated that although the CDD needs to work toward a centralized management of the system, it is difficult for the Board to do so under the Sunshine Law. Mr. Hammond stated that it is difficult for the Board to do the necessary work under that particular law. Mr. Hamilton suggested that the Transition Committee review the issue and come back to the CDD with their recommendations. John Moulton of the Transition Committee stated that the Legal Committee is reviewing the documents and that the agreement discussed previously expires in 2017 and does not have to be renewed. He further stated that the Association intents to send the letter declining to renew the agreement, as they believe it should be the CDD s role to maintain the ponds. Mr. Hamilton indicated that he hoped the Association would be more flexible and not take an Page 4 of 6 Page 5

ARBORWOOD COMMUNITY DEVELOPMENT DISTRICT REGULAR BOARD MEETING MAY 16, 2016 adversarial position to which Mr. Carr added that they need to consider that the CDD may not maintain to the same level as the HOA, since the sole obligation of the CDD is to maintain at required stormwater levels only and does not include aesthetics. Mr. Hamilton noted that he hopes the CDD and the Association can continue to cooperate. Ms. Grier opined that she believes the CDD has better access to engineering and legal staff. Mr. Carr stated that the CDD does not have the right to maintain in areas it does not own and the HOA can contract to maintain as easily as the CDD. Mr. Evans noted that in many districts, the CDD s engineer prepares the report and hands it to the HOA. He further noted that it is a process that allows for continually maintaining the ponds. Ms. Dailey added that it may cost more to the homeowners if the CDD maintains, since the HOA already has managers onsite to handle day to day issues and also handles contractors, where the CDD would have the added cost of hiring such oversight. Mr. Hamilton added that there are a lot of moving parts and we are all homeowners, so cooperation is key. It was the consensus of the Board at this time to move forward with the budget that does not include lake maintenance. 3. Consider Resolution No. 2016-01 Adopting a Fiscal Year 2016/2017 Proposed Budget Resolution No. 2016-01 was presented, entitled: RESOLUTION 2016-01 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE ARBORWOOD COMMUNITY DEVELOPMENT DISTRICT APPROVING A PROPOSED BUDGET FOR FISCAL YEAR 2016/2017 AND SETTING A PUBLIC HEARING THEREON PURSUANT TO FLORIDA LAW AND PROVIDING FOR AN EFFECTIVE DATE. Mr. McElligott went over the budget and stated that most items had stayed the same, except for the funding of the Offsite Mitigation Panther area, which went up significantly and the Legal line item, which went up due to the IRS audit. He stated that $245,000 was used in carryover to keep assessments the same and next year the Board may need to prepare a letter increasing assessments, especially if the Board takes over pond maintenance. He further stated that right now, the only way to get away with not sending letters is by using reserves. Mr. Franz asked if funds could be moved around and Mr. McElligott responded that from an audit standpoint, they can because the auditors just look at the total spent. There was general discussion about using reserves and Mr. Hamilton opined that he recommended the Board does not accelerate raising the budget, since there is enough funds by using carryover to satisfy expenses this year. Mr. Hamilton also asked questions about several line items, which Mr. McElligott explained. There was a consensus of the Board to have Mr. Evans contact Passarella and Associates to get a more thorough explanation for the increase in costs for the Panther mitigation area for the next meeting. A motion was made by Mr. Carr, seconded by Mr. Franz and unanimously passed adopting Resolution No. 2016-01, as presented, setting the Public Hearing for July 18, 2016. Page 5 of 6 Page 6

ARBORWOOD COMMUNITY DEVELOPMENT DISTRICT REGULAR BOARD MEETING MAY 16, 2016 I. ADMINISTRATIVE MATTERS Ms. Dailey indicated that she had been speaking to Rachel about moving the meeting location to the Amenity Center with the meeting time remaining at 9:00 a.m. The Board consensus was to move the meeting location to the Amenity Center, if available, and to keep the starting time at 9:00 a.m. J. BOARD MEMBER COMMENTS 1. Announcement of Candidate Qualifying Period from Noon on June 20, 2016, through Noon on June 24, 2016 Ms. Dailey announced that the qualifying period and indicated that Seat #4 (Mr. Hammond) and Seat #5 (Mrs. Pattison) were open. K. ADJOURNMENT There being no further business to come before the Board, the Regular Board Meeting was adjourned at 11:55 a.m. on a motion made by Mr. Carr, seconded by Mr. Franz and passed unanimously. Secretary/Assistant Secretary Chair/Vice-Chair Page 6 of 6 Page 7

BEFORE THE GOVERNING BOARD OF THE SOUTH FLORIDA WATER MANAGEMENT DISTRICT SOUTH FLORIDA WATER MANAGEMENT DISTRICT, DRAFT Complainant, v. SFWMD No. 2016- -CO-ERP ARBORWOOD COMMUNITY DEVELOPMENT DISTRICT and CENTEX REAL ESTATE CORPORATION, Respondents. CONSENT ORDER This Consent Order is entered into between the Complainant, South Florida Water Management District ( District ), and Respondents, Arborwood Community Development District ( Arborwood ), and Centex Real Estate Corporation ( Centex ), (collectively Respondents ) by mutual consent, who agree as follows: FINDINGS OF FACT The District and Respondents stipulate to the following Findings of Fact: 1. The District is a public corporation of the State of Florida existing by virtue of Chapter 25270, Laws of Florida, 1949, and operating pursuant to Chapter 373, Florida Statutes ( Fla. Stat. ), as a multipurpose water management district with its principal office located at 3301 Gun Club Road, West Palm Beach, Florida 33406. 1 Page 8

2. The District has jurisdiction over the Respondents, the Property, the stormwater management system, works, and the construction and maintenance activities located thereon pursuant to Sections 373.069(2)(e), 373.413, 373.414 and 373.416, Fla. Stat. 3. Arborwood is a local unit of special-purpose government created pursuant to Chapter 190, Fla. Stat. Arborwood s mailing address is: Arborwood Community Development District, Special District Services, Inc., 27499 Riverview Center Boulevard, #253, Bonita Springs, Florida 34134. 4. Arborwood is the owner of property with Parcel Identification Number 134525P2300C30000; located in Section 13, Township 45, Range 25; Lee County, Florida ( Property ). The Property is shown on the location map attached hereto and incorporated herein as Exhibit A. 5. Centex is the original Permittee for Environmental Resource Permit Number 3604853-P-02 ( Permit ). The Permit includes the Property. Centex is a Nevada corporation registered to do business in Florida as a foreign profit corporation. Centex s mailing address is: Centex Real Estate Corporation, 3350 Peachtree Road, Suite 150, Atlanta, Georgia 30326. Its registered agent is Corporation Service Company, 1201 Hays Street, Tallahassee, FL 32301-2525. 6. Arborwood is the operating entity pursuant to the Permit. The Property in question has not been transferred to the operating entity. since phases of the project are still in the construction phase. 7. On June 8, 2005, a permit modification authorizing the construction and operation of a stormwater management system was issued to Centex foron the Property 2 Page 9

designed to serve a residential/golf course development known as Arborwood Basins 3, 4, 5, 6, 7, 8, and 9. The stormwater management system consists of 1,239.8 acres of golf course and residential development, including approximately 299.64 acres of wetland enhancement, preserving 30.52 acres of upland areas and 18.79 acres of upland buffer areas. 8. Wetland preserves and upland buffers are encumbered by a conservation easement to the District, recorded by Arborwood in the Official Records of Lee County (O. R. Book 04828, Pages 0706-0745), on August 3, 2005. The conservation easement is attached hereto and incorporated herein as Exhibit B. 9. An inspection on July 17, 2015, revealed unauthorized impacts to 2.6 acres of upland buffer within the recorded conservation easement areas in the form of clearing, grading and filling. The parties are unable to determine the date these impacts occurred. This Consent Order does not determine the entity or entities who conducted the work resulting in these impacts. 10. On September 17, 2015, District staff received an upland buffer restoration plan to address the violation from Passarella & Associates, Inc. (the Plan ), a copy of which is attached hereto and incorporated herein as Exhibit C. The works described in the Plan were completed, with the exception of the required five year monitoring and maintenance, as outlined in the Plan. 11. On November 16, 2015, Arborwood submitted a settlement payment in the amount of Eight Thousand Three Hundred and Fifty Dollars ($8,350.00) was submitted to the District. This amount included Five Thousand Eight Hundred Fifty Dollars ($5,850.00) in civil penalties and Two Thousand Five Hundred Dollars ($2,500.00) for 3 Page 10

costs and attorney s fees incurred by the District during the investigation of this matter, and the preparation and tracking of this Consent Order. Centex has not been assessed a separate penalty or cost. These payments settle all penalties and costs associated with this Consent Order. 12. Upon notification, tthe Respondents provided the District with reasonable assurances of good faith by promptly volunteering to restore the area in question and agreeing to entering into this Consent Order with the District in return for the District not initiating an enforcement action for the alleged violations described above. Respondents neither admit nor deny any of the agree that all factual and legal matters alleged and voluntarily agreed to herein which provide the basis for enter into this Consent Order, including all with its terms and, provisions and matters conditions referred to abovein the Findings of Fact and Conclusions of Law sections, shall not be contested in any subsequent legal proceedings which may be brought to enforce the terms of this Consent Order. CONCLUSIONS OF LAW 13. Pursuant to Rule 62-330.020, Florida Administrative Code ( Fla. Admin. Code ), and Sections 373.413, 373.414, and 373.416, Fla. Stat., the District is authorized to require permits for construction, alteration and operation or maintenance of stormwater management systems or works, including activities which impact wetlands. In the issuance of construction permits, the District is authorized to impose reasonable conditions necessary to assure the activities will comply with the provisions of Part IV of Chapter 373, Fla. Stat., and the applicable rules promulgated thereunder, and will not be harmful to the water resources of the District. 4 Page 11

14. Pursuant to Section 373.430(1)(b), Fla. Stat., failure to comply with any District permit constitutes a violation of Part IV of Chapter 373, Fla. Stat. The District assertsfinds that the Respondents: a) violated the Permit; b) performed works without a permit; and c) violated paragraphs 2a.-h. of the recorded Conservation Easement. The Respondents deny the District s assertion. This Consent Order settles this dispute among the parties without resulting in a finding or conclusion of permit, rule, or statute violation by either Respondent. 15. Pursuant to Section 373.129, Fla. Stat., the District may commence and maintain an action to enforce its rules, permits and orders, or to protect and preserve the water resources of the state. The District may recover a civil penalty for each offense in an amount not to exceed $10,000.00 per offense, with each date during which such violation occurs constituting a separate offense. The District may further recover investigative costs, court costs and reasonable attorney s fees. 16. The District is authorized to enter into agreements pursuant to Section 373.083, Fla. Stat. THEREFORE, having reached resolution of this matter, the District and the Respondents mutually agree and it is ordered: ORDER 17. Respondents Centex shall oversee the implementation of the monitoring and maintenance of the restored areas for a period of five (5) years until all success criteria are met and approved by the District, as required in the Plan. 18. During the monitoring and maintenance period described above, Respondents Centex shall perform vegetation maintenance of the upland buffer 5 Page 12

restoration areas at least semi-annually for the first two years, and annually thereafter, and as additionally needed. There mustwill be 0 percent exotic and nuisance plant coverage immediately after a maintenance activity in a particular area and exotic and nuisance plant coverage shallwill not exceed 5 percent between maintenance activities for each treated area. Maintenance shall include replanting of native vegetation if 80 percent survival of restoration plantings is not maintained throughout the five-year monitoring period. Exotic and nuisance vegetation means all those plant species listed by the Florida Exotic Pest Plant Council as Category 1 and Category 2 invasive plant species in the 2015 List of Invasive Plant Species, attached hereto and incorporated herein as Exhibit D. 19. If it is determined by the District, based on visual inspection and/or review of the monitoring reports, that the upland buffer areas are not meeting the above specified success criteria, Respondents Centex shall, within 90 days of notification by the District, submit a remediation plan for approval by District staff detailing the steps and procedures to be implemented to bring the area into environmental compliance. 20. During each maintenance and monitoring inspection, Respondents Centex shall remove all nuisance and exotic vegetation, as described in this Consent Order, from the upland buffer areas without disturbing the existing native vegetation or bottom grade elevation of the uplands. 20.21. Respondent Arborwood shall allow representatives of Respondent Centex to access the Property at all times necessary to complete the activities described herein. 6 Page 13

21.22. The Respondents Centex agrees to pay the District stipulated penalties in the amount of $100.00 per day for each and every day itthey fails to timely comply with any of the requirements of this Consent Order. A separate stipulated penalty shall be assessed for each violation of this Consent Order. Within 30 days of written demand from the District, CentexArborwood shall make payment of the stipulated penalties to the South Florida Water Management District by cashier s check or money order. The District may make demand for payment at any time after a violation occurs. Nothing in this paragraph shall prevent the District from filing suit to specifically enforce any of the terms of this Consent Order. Any stipulated penalties assessed under this paragraph shall be in addition to the settlement sum paid as referenced in this Consent Order. If the District is required to file a lawsuit to recover stipulated penalties under this paragraph, or to enforce this Consent Order, the provisions pertaining to stipulated penalties are waived and the District is not foreclosed from seeking civil penalties up to $10,000.00 per offense per day, costs, and attorney s fees for violations of this Consent Order. GENERAL PROVISIONS 22. District representatives may enter the Property during reasonable times to verify compliance with the terms of this Consent Order, the Permit, and the Conservation Easement, Chapter 373, Fla. Stat., or the rules of the District. Failure to comply with this Consent Order shall constitute a violation of Chapter 373, Fla. Stat. The District hereby expressly reserves the right to petition for judicial or administrative enforcement of the terms of this Consent Order. In such event, the Respondents shall not contest or deny any fact, legal conclusion, or any other matter or fact set forth in this Consent Order, including the Findings of Fact and Conclusions of Law, penalties fees or costs set forth 7 Page 14

herein. In exchange for the District not initiating legal proceedings, Respondents hereby waive all rights set forth in the Notice of Rights, attached as Exhibit E. If the District successfully petitions or sues for enforcement of this Consent Order, Respondents Centex hereby agrees to and shall pay all attorneys' fees, (including, but not limited to, the fair market value of in-house counsel fees, as if performed by outside or private counsel) court costs and any other damages sustained by the District unless the sole basis of the suit is Arborwood s refusal to allow access to the Property, in which case Arborwood shall solely pay the District the attorney s fees, costs, and damages described herein. In addition, the District hereby expressly reserves the right to initiate appropriate legal action to prevent or prohibit the future violation of applicable statutes or the rules promulgated thereunder, or to alleviate an immediate serious danger to the public health, safety or welfare. If Respondents non-compliance with this Consent Order leads to an enforcement action being brought by the District, Respondents consent to the receipt of service of process by registered mail, no signature required, delivered to Arborwood s and Centex s addresses indicated herein. 23. This Consent Order shall take effect after execution by all parties and acknowledgement by the Clerk of the District, and shall remain in full force and effect until its terms and conditions are completed to the satisfaction of the District. The requirements of this Consent Order shall bind and inure to the benefit of the heirs, successors and assigns of Respondents, except as modified by the parties hereto. In addition, prior to any sale, transfer, conveyance or lease of the Property, Respondents shall provide a copy of this Consent Order to any prospective purchaser or successor in interest. Additionally, 8 Page 15

Respondents shall provide notification to the District of the sale, transfer or conveyance of the Property within 30 days of such action. 24. Arborwood, as owner of the Property, and Centex, as Permittee, hereby consent to the District recording notice of this Consent Order in the Lee County public records utilizing Form 62-330.090(1), Fla. Admin. Code, attached as Exhibit F. The terms, conditions, covenants, and provisions of this Consent Order encumber the Property, run with the Property, and are binding upon and inure to the benefit of the parties hereto, their heirs, successors, and assigns, and all subsequent owners of the Property. 25. Entry of this Consent Order does not relieve Respondents of the need to comply with all applicable federal, state or local laws, regulations or ordinances, including any District permitting requirements. Also, this Consent Order does not give Respondents the authority to conduct any activities on the Property, which are under District jurisdiction, without first obtaining District authorization. 26. If any event occurs which causes delay, or reasonable likelihood of delay, in complying with the requirements or deadlines of this Consent Order, the Respondents have the burden of proving that the delay was or will be caused by circumstances beyond their control. The failure of a contractor, subcontractor, materialman, or other agent (collectively referred to as contractor ) to whom responsibility for performance is delegated to meet contractually imposed deadlines shall not be considered a cause beyond Respondents control. Upon occurrence of an event causing delay, or upon becoming aware of a potential for delay, Respondents Centex shall notify the District orally within 24 hours, or by the next working day and shall, within 7 days of oral 9 Page 16

notification to the District, notify the District in writing of the anticipated length and cause of the delay, the measures taken or to be taken to prevent or minimize the delay, and the timetable by which Respondents Centex intends to implement these measures. If the parties can agree that the delay or anticipated delay has been or will be caused by circumstance beyond the reasonable control of Respondents, the time for performance hereunder may be extended for a period equal to the agreed delay resulting from such circumstances. Such agreement shall set forth all reasonable measures necessary to avoid or minimize delay. Failure of Respondents to comply with the notice requirements of this paragraph in a timely manner shall constitute a waiver of Respondents right to request an extension of time for compliance with the requirements or deadlines in this Consent Order. 27. In the event it is necessary for the District to initiate legal action regarding this Consent Order, such action shall be initiated in the Fifteenth Judicial Circuit in Palm Beach County, Florida. 10 Page 17

DONE AND SO ORDERED in West Palm Beach, Palm Beach County, Florida, this day of, 2016. SOUTH FLORIDA WATER MANAGEMENT DISTRICT BY: Director, Regulation Division STATE OF FLORIDA ) COUNTY OF PALM BEACH ) The foregoing instrument was acknowledged before me this day of, 2016, by, who is personally known to me. (SEAL) Signature of Notary Public Printed, Typed or Stamped Name My Commission Expires: ERC Bureau Approval Date Print Name: Legal Form Approval Date Print Name: General Counsel Concurrence: 11 Page 18

Brian J. Accardo Date 12 Page 19

ARBORWOOD COMMUNITY DEVELOPMENT DISTRICT BY: Signature DATE: PRINT NAME: TITLE: As authorized representative for Arborwood Community Development District STATE OF FLORIDA ) COUNTY OF ) The foregoing instrument was acknowledged before me this day of, 2016, by. (SEAL) Signature of Notary Public Printed, Typed or Stamped Name My Commission Expires: Personally Known OR Produced Identification Type of Identification Produced 13 Page 20

CENTEX REAL ESTATE CORPORATION BY: Signature DATE: PRINT NAME: TITLE: As authorized representative for Centex Real Estate Corporation STATE OF FLORIDA ) COUNTY OF ) The foregoing instrument was acknowledged before me this day of, 2016, by. (SEAL) Signature of Notary Public Printed, Typed or Stamped Name My Commission Expires: Personally Known OR Produced Identification Type of Identification Produced 14 Page 21

Page 22

Page 23

Page 24

Page 25

Page 26

Page 27

Page 28

Page 29

Page 30

Page 31

Page 32

Page 33

Page 34

Page 35

Page 36

Page 37

Page 38

Page 39

Page 40

Page 41

Page 42

Page 43

Page 44

Page 45

Page 46

Page 47

Page 48

Page 49