Loading...
09/01/2005 . . . CITY COUNCIL MEETING MINUTES CITY OF CLEARWATER September 1, 2005 Present: Frank Hibbard William C. Jonson Hoyt P. Hamilton Carlen Petersen John Doran Mayor Vice-Mayor Councilmember Council member Council member Also present: William B. Horne II Garry Brumback Rod Irwin Pamela K. Akin Cynthia E. Goudeau Mary K. Diana City Manager Assistant City Manager Assistant City Manager City Attorney City Clerk Assistant City Clerk. The Mayor called the meeting to order at 6:00 p.m. at City Hall. The invocation was offered by Reverend David McAbee of Everybody's Tabernacle. The Mayor led the Pledge of Allegiance. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 4 -Introductions and Awards: - None. 5 - Presentations: 5.1 Senior Center Task Force Recommendations Senior Task Force Chair Debra Shade and Vice-Chair Dr. William Haley presented recommendations, which included budgeting for a Manager for Aging, who would coordinate efforts and work with an advisory committee. The Senior Task Force envisioned integrating senior services into existing City facilities. While a central web site for seniors is being developed, some barriers exist. Senior Task Force efforts were complimented. It was noted the position is included in next year's budget. 6 - Approval of Minutes 6.1 Auqust 15. 2005 reqular meetinq Councilmember Jonson moved to approve the minutes of the regular meeting of August 15, 2005, as recorded and submitted in written summation by the City Clerk to each Councilmember. The motion was duly seconded and carried unanimously. 7 - Citizens to be heard re items not on the Agenda: - None. Council 2005-09-01 1 . . . PUBLIC HEARINGS 8 Administrative public hearings 8.1 Approve the recommended Penny for Pinellas proiect list. as revised. for Fiscal Years 2005/06 throuQh 2009/10. On March 6, 1997, the City Council adopted Ordinance # 6137-97. The ordinance established the requirement for a special hearing prior to the adoption of the capital improvement budget to discuss the use of Penny for Pine lias tax, and at any time in which there is any proposed change to Penny for Pine lias funding of $500,000 or more. Significant changes to the plan fund five new projects: 1) Ladder Truck -project provides funding of $850,000 in FY (Fiscal Year) 2005/06 for the replacement of a 1987 Platform Aerial Truck for the Fire Department; 2) Lona Center Pool- funded in FY 2005/06 for $800,000, this project provides funding for major renovations to the Long Center pool and related appurtenances; 3) National Guard Armory Renovation - funded at $150,000 in FY 2005/06, this project provides funding for the renovation and improvement of this facility to provide storage space and to consolidate the Special Events operations of the Parks & Recreation Department; 4) Bavfront Promenade - funded in FY 2005/06 for $900,000, this project provides the funding for construction of a promenade in the vicinity of the Memorial Causeway Bridge as an enhancement to Coachman Park that will be available for use as a dock for commercial boats such as ferries; and 5) Lona Center Maior Infrastructure Improvements - this project provides funding in the amount of $1,705,000 for major building improvements to the Long Center facility to include air conditioner and roof replacement as well as other major improvements AND the elimination of one project: 1) Harborbluff Waterfront Park - funding of $2,000,000 has been eliminated and reallocated to the other project priorities outline above. This currently approved project reflects a change in project scope and funding level: Parks & Beautification Infrastructure Complex - This proposal recognizes the elimination of $2,375,000 of funding for the Parks & Recreation Infrastructure Complex. The project scope has been changed and no longer will consolidate the Parks & Beautification Division into one site. The project scope now provides for the construction of a new Parks & Recreation Administrative Office and will consolidate all administrative functions of the Parks & Recreation Department into one site. Councilmember Jonson moved to re-establish the Harborbluff Waterfront Park in the Penny for Pinellas project list. The motion was duly seconded. Discussion ensued and it was indicated removing it from the list did not lessen Council's commitment to the project. It was stated the funds are needed for other projects Upon the vote being taken, Councilmember Jonson voted "Aye"; Councilmembers Hamilton, Petersen, and Doran, and Mayor Hibbard voted "Nay." Motion failed. Councilmember Doran moved to approve the recommended Penny for Pinellas project list, as revised, for Fiscal Years 2005/06 through 2009/10. The motion was duly seconded and carried unanimously. Council 2005-09-01 2 . . . 8.2 Set a final millaqe rate of 5.753 mills for fiscal year 2005/06 levied aqainst non-exempt real and personal property within the City and pass Ordinance #7496-05. Millaqe Ordinance. on first readinq In accordance with the State of Florida's "Truth-in-Millage" (TRIM) Act and the City Charter it is necessary for the City Council to adopt a final millage rate for the upcoming year. In July 2005, the City Manager presented his proposed FY 2005/06 Annual Operating and Capital Improvement Budget recommending a millage rate of 5.753 mills. This millage rate was approved as a tentative millage rate by the Council at the July 21, 2005 Council meeting. This rate will generate $47,742,920 of ad-valorem property taxes for the City of Clearwater in FY 2005/06. Ordinance #7496-05 is now presented in order that this tentative millage rate be adopted as the final rate for the 2005/06 fiscal year. This rate is the same rate as adopted in each of the past three years and reflects a 13.74% increase over the rolled back rate of 5.0582 mills. It was noted removing the number of new FTE (Full-Time Equivalent) positions from the budget would save $540,000. Council member Petersen moved to set a final millage rate of 5.753 mills for Fiscal Year 2005/06 levied against non-exempt real and personal property within the City. The motion was duly seconded and carried unanimously. Ordinance 7496-05 was presented for first reading and read in full. Councilmember Hamilton moved to pass Ordinance #7497-05 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, Doran, and Hibbard. "Nays": None. 8.3 Adopt the City of Clearwater Annual Operatinq Budqet for the 2005/06 fiscal year and pass Ordinance #7497-05 on first readinq. The City Charter, Pinellas County regulations, and Florida State Statutes outline requirements that must be met for the City to be able to levy taxes and fees and spend resources on mandated or desired goods and services. The adoption of this ordinance and two related ordinances are an integral part of fulfilling these requirements. In July 2005, the City Manager presented to the City Council a detailed Preliminary Annual Operating Budget that outlined estimated revenues and proposed expenditures for the 2005/06 fiscal year. Copies of this document were made available to residents and the news media. The budget was discussed at Council meetings and budget workshops earlier this summer. Ordinance #7497-05 is now presented in order to adopt the operating budget and authorize the City Manager to issue instructions to achieve and accomplish authorized services. Council 2005-09-01 3 . . . An opinion was expressed a number of new positions in the budget are not critical and could be outsourced or filled by temporary staff. A list was distributed that recommended the elimination of 16.5 new positions, and a budget amendment at first quarter to reflect this change was proposed. In response to a question, Fire Chief Jamie Geer said six new firefighter positions will enhance ladder operations with four-person crews to meet increased call volumes. It was suggested the additional firefighter positions be deferred until the County Charter Review is completed, as it was felt a degree of instability in local fire services exist. Discussion ensued and it was indicated the Council had previously reviewed and justified the need for each new position. It was believed these additional positions will bring efficiencies and cost savings. Councilmember Hamilton moved to adopt the City of Clearwater Annual Operating Budget for the 2005/06 fiscal year. The motion was duly seconded. Councilmembers Hamilton, Petersen, and Doran, and Mayor Hibbard voted "Aye." Council member Jonson voted "Nay." Motion carried. Ordinance #7497-05 was presented for first reading and read by title only. Councilmember Petersen moved to pass Ordinance #7497-05 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hamilton, Petersen, Doran, and Hibbard. "Nays": Jonson. Motion carried. 8.4 Adopt the Fiscal Year 2005/06 Capital Improvement Budqet and establishinq a six-year plan for the Capital Improvement Proqram (CIP) and pass Ordinance #7498-05 on first readinq. The City Charter, County regulations, and Florida State Statutes outline regulations that require local governments to prepare and adopt comprehensive planning and development programs. The Capital Improvement Program plan provides the mechanism to meet these requirements. Major physical undertakings costing $25,000 or more and having a useful life of at least three years are defined as "capital" projects and are accounted for in this Capital Improvement Program. In July 2005, the City Manager presented to the City Council detailed proposed operating and capital improvement budgets. The Capital Improvement Program budget outlines projects and funding sources for $54.6 million of projects to be undertaken in fiscal year 2005/06. The budget also contains a six-year plan, which outlines projects and funding sources for each of the next six years totaling $339.6 million. Each of these plan years will be reviewed and revised as needed, and budgets presented for formal budget adoption in subsequent years. The adopted Capital Improvement Budget can be amended with Council approval through the quarterly budget review process. Council 2005-09-01 4 . . . Councilmember Doran moved to adopt the Fiscal Year 2005/06 Capital Improvement Budget and establishing a six-year plan for the Capital Improvement Program (CIP). The motion was duly seconded and carried unanimously. Ordinance #7498-05 was presented for first reading and read by title only. Councilmember Hamilton moved to pass Ordinance #7498-05 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, and Doran. "Nays": None. Absent: Hibbard. 8.5 Approve the applicant's request to vacate Edenville Avenue from the easterly extension of the south property line of Lot 55. Block "A." Tropic Hill Unit 4 subdivision, (a.k.a. 2450 Burnice Drive), to the easterly extension of the north property line of said Lot 55. subiect to the retention of a drainaQe and utility easement over the full width of the riqht-of-way to be vacated and subiect to removal of existinQ asphalt and curbs within six months of approval of this request and pass Ordinance Number 7463-05 on first readinQ, (VAC2005-09 Allen). The applicant is seeking vacation of the street right-of-way portion in order to curtail after dark meeting and parking activities, lunch hour parking, and littering. The applicant proposes to remove existing asphalt and curb and to extend new curb along Burnice Drive if the vacation is approved. Verizon, Brighthouse Cable and Knology have no objections to the vacation request. Progress Energy has no objections provided that an easement is provided to retain access to their facilities presently located in the subject right-of-way portion. The City's Parks and Recreation Department has reviewed the request and has requested that a 6-foot pedestrian easement be retained to continue the public's access to the Henry L. McMullen Park via the subject street right-of-way. Public Works Administration recommends that a 10-foot pedestrian easement be provided to enable construction of a sidewalk without need for a temporary construction easement. Public Works Administration has no objection to the vacation request subject to: 1) a drainage and utility easement shall be retained over the full width of the right-of-way to be vacated, 2) a 10-foot pedestrian easement shall be retained over the center 1 O-feet of the right-of-way proposed to be vacated, 3) all asphalt and curbing located within the subject right-of-way portion shall be removed with new curbing installed along Burnice Drive in accordance with City of Clearwater contract specifications within six-months of the date of this approval, 4) the applicant shall construct a 6- foot sidewalk along the center of the pedestrian easement in accordance with City of Clearwater construction specifications within six months of the date of this approval, and 5) the vacation approval will become null and void if the preceding conditions number 3 and 4 are not met. Mike Sa botto, President of Tropic Hills Homeowners Association, said resident consensus was for the park pass way to continue. The association has requested the City extend the applicant-constructed sidewalk over a berm to the tennis complex. The City Manager noted tonight's action on this item is not related to the association's request. In response to a question, it was indicated the applicant would pay for the sidewalk's Council 2005-09-01 5 . . . installation which could take approximately six months. City Engineer Mike Quillen said staff will review the area for ways to improve access. Councilmember Petersen moved to approve the applicant's request to vacate Edenville Avenue from the easterly extension of the south property line of Lot 55, Block "A", Tropic Hill Unit 4 subdivision, (a.k.a. 2450 Burnice Drive), to the easterly extension of the north property line of said Lot 55, subject to the retention of a drainage and utility easement over the full width of the right-of-way to be vacated and subject to removal c;>f existing asphalt and curbs within six months of approval of this request. The motion was duly seconded and carried unanimously. Ordinance #7463-05 was presented for first reading and read by title only. Councilmember Doran moved to pass Ordinance #7463-05 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, Doran, and Hibbard. "Nays": None. 8.6 Declare as surplus for the purpose of offerinq for sale bv sealed bid in accordance with Section 2.01 (d)(5) of the City Charter. vacant residential lots described as Lots 6. 7 and 8. Block B. First Addition to Norwood. for the minimum bid amount of $33.000 per lot. In late 1998 and early 1999, the City funded demolition of two unsafe structures owned by Esther C. Hunt at 1500 and 1502 North Greenwood Avenue (now N. Martin Luther King, Jr. Avenue) and filed liens totaling $3,533.21 for costs. There were a number of unaddressed code violations in a third structure also owned by Ms. Hunt, and ad valorem taxes for 1998 were unpaid and delinquent. Ms. Hunt and the City's Housing Division entered into negotiations to have the City purchase the property. A February 1, 1999, appraisal performed by Michael McKinley Appraisers/Planners valued the property at $50,000. On April 23, 1999, the City and Ms. Hunt entered into a Purchase Agreement for $54,000. In addition to the purchase price, the City agreed to forgive the demolition liens. The transaction closed and title conveyed to the City by Warranty Deed on August 23, 1999. Following recent market interest in the now vacant lots, the City hired State Certified Residential Appraiser Joseph A. Fornito who estimated the value of each lot at $33,000 on June 14, 2005. Upon sale of the subject lots, sale proceeds will reimburse Intill Housing Fund (181- 99661) for costs incurred to purchase the property in 1999. Excess funds will be applied to reimburse the City for other incurred holding costs, or accrue as either CDBG (Community Development Block Grant) program income or in the General Fund Surplus Land Sales account. Councilmember Hamilton moved to declare as surplus for the purpose of offering for sale by sealed bid in accordance with Section 2.01 (d)(5) of the City Charter, vacant residential lots described as Lots 6, 7 and 8, Block B, First Addition to Norwood, for the minimum bid amount of $33,000 per lot. The motion was duly seconded and carried unanimously. Council 2005-09-01 6 . 8.7 Pass Ordinance #7515-05 on first readino, establishino the Clearwater Cay Community Development District pursuant to Chapter 190, Florida Statutes; describinq the external boundaries of the district; describino the functions and powers of the district; consentino to the use of special powers by the district; desiqnatino five persons to serve as the initial members of the district's Board of Supervisors. DC703, LLC, has petitioned the City to adopt an ordinance establishing the Clearwater Cay Community Development District pursuant to the "Uniform Community Development District Act of 1980," Chapter 190, Florida Statutes, (hereinafter the "Act"). Community Development Districts are independent special districts that finance, construct, and manage basic community development services (Le. roads, parks, water management, etc.). The proposed district consists of approximately 49.37 acres of land located entirely within the City limits on a site, which is east of U.S. Highway 19 and north of Haines-Bayshore Road. . The Act is designed specifically to provide a uniform and exclusive procedure for the formation, operation, and termination of Community Development Districts. For the formation of a Community Development District of less than 1,000 acres, the Act provides that a local government first must approve the petition and enact the establishing ordinance after public hearings and testimony as to: 1) Whether all statements contained within the petition have been found to be true and correct; 2) Whether the establishment of the district is inconsistent with any applicable element or portion of the State comprehensive plan or of the effective local government comprehensive plan; 3) Whether the area of land within the proposed district is of sufficient size, is sufficiently compact, and is sufficiently contiguous to be developable as one functional interrelated community; 4) Whether the district is the best alternative available for delivering community development services and facilities to the area that will be served by the district; 5) Whether the community development services and facilities of the district will be incompatible with the capacity and uses of existing local and regional community development services and facilities; and 6) Whether the area that will be served by the district is amenable to separate special district government. The appropriate City staff has reviewed the petition for establishment of the District on the proposed land and it is complete and sufficient. Thomas Cloud, representative for the applicants, reviewed Florida law related to an independent special district, submitted sworn statements and are attached to these minutes as Exhibit 1, and reviewed standards for approval. He said the applicants had met with staff regarding this issue in early 2005 and filed a petition for a Community Development District in March 2005. The petition was redone and refiled in June. He said all required consents have been submitted, including the consent of the Grand Bellagio's homeowners association. Dave Clark, owner of DC703, LLC, said his firm specializes in waterfront resort projects and indicated the subject property is a unique asset in the city. He said traditional financing for this type of project is difficult to obtain. Bond financing allows the loan to be paid back over 30 years. Only property owners within the district will be repaying the bonds. As proposed, the project will feature a waterfront, festival-style development with a class A office building, water park, etc. He believed the ambitious project will revitalize the entire area. . Mr. Cloud said the Community Development District will permit the redevelopment of a failing shopping center. He said approval of the district does not grant land use approvals, Council 2005-09-01 7 . . . which would come back to Council for approval. He said Cove Cay is not included in the proposed district. The bonds will have to be validated and the resulting debt never will be the City's responsibility. In response to questions, Mr. Clark said he is aware of the plan to elevate US 19N in front of the project and has no intention of approaching FDOT (Florida Department of Transportation) for reverse condemnation related to the elevated roadway. The City Attorney indicated approval of the district will not change access to the Grand Bellagio and Venetia developments. In response to a question, Mr. Cloud said the petitioner nominates the initial Board of Directors, which will be turned over to property owners in six years. He said the current General Commercial zoning allows a water park use. The special assessment will be charged via annual tax bills to all property owners, not tenants and the City will indicate which sewer lines it wants the project to maintain. Seven people spoke in support and five people spoke in opposition of the Community Development District. In response to questions, Mr. Cloud said the Grand Bellagio is not included in the district's boundaries and that development will not be assessed. He said no change to the entrance to the Grand Bellagio will occur. The district will own the parking facilities, stormwater facilities, water park, and the roadways. Mr. Cloud said the district will not impede nor enhance the Cove Cay development, which is not part of the district. He said a consent form, signed by the Grand Bellagio Homeowners Association, has been submitted and is attached to these minutes as Exhibit 2. Scott Callahan, representative, said a five-foot section of Grand Bellagio property is in the district but no related consequence will impact Grand Bellagio residents, who will not be assessed. Mr. Clark said bonds will not finance everything in the development, just the public elements of the park, which will be owned by the district. Actual rides and theme uses not owned by the district will be run by for profit organizations. It is required that purchasers of district property be disclosed information regarding bond and maintenance assessments. Discussion ensued with comments that improvements to the blighted shopping center will increase the tax base and the risks to the City are negligible. Councilmember Petersen moved to establish the Clearwater Cay Community Development District pursuant to Chapter 190, Florida Statutes; describing the external boundaries of the district; describing the functions and powers of the district; consenting to the use of special powers by the district; designating five persons to serve as the initial members of the district's Board of Supervisors. The motion was duly seconded and carried unanimously. Council 2005-09-01 8 . . . Ordinance #7515-05 was presented for first reading and read by title only. Councilmember Doran moved to pass Ordinance #7515-05 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, Doran, and Hibbard. "Nays": None. 9 Quasi-judicial public hearings - None 10 Second Readings - public hearing 10.1 Adopt Ordinance #7467-05 on second readino, amendino the future land use plan element of the Comprehensive Plan of the City, to chanoe the land use desionation for certain real property whose post office address is 1834 North Belcher Road from Industrial Limited to Commercial General. Councilmember Jonson noted his opposition to changing the land use designation. Ordinance #7467-05 was presented for second reading and read by title only. Council member Hamilton moved to pass and adopt Ordinance #7467-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hamilton, Petersen, and Hibbard. "Nays": Jonson. Absent: Doran. Motion carried. 10.2 Adopt Ordinance #7468-05 on second readino amendino the zonino atlas of the City by rezonino certain property whose post office address is 1834 North Belcher Road, from Industrial Research Technolooy to Commercial. Ordinance #7468-05 was presented for second reading and read by title only. Council member Petersen moved to pass and adopt Ordinance #7468-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hamilton, Petersen, Doran, and Hibbard. "Nays": Jonson. Motion carried. Council 2005-09-01 9 . . . 10.3 Adopt Ordinance #7469-05 on second readinq, amendinq the future land use plan element of the Comprehensive Plan of the City. to chanqe the land use desiqnation for certain real property whose post office address is 1822 North Belcher Road from Industrial Limited to Commercial General. Ordinance #7469-05 was presented for second reading and read by title only. Councilmember Doran moved to pass and adopt Ordinance #7469-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hamilton, Petersen, Doran, and Hibbard. "Nays": Jonson. Motion carried. 10.4 Adopt Ordinance #7470-05 on second readinq, amendinq the zoninq atlas of the City by rezoninq certain property whose post office address is 1822 North Belcher Road from Industrial Research Technoloqy to Commercial General. Ordinance #7470-05 was presented for second reading and read by title only. Councilmember Hamilton moved to pass and adopt Ordinance #7470-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Hamilton, Petersen, Doran, and Hibbard. "Nays": Jonson. Motion carried. 10.5 Adopt Ordinance #7471-05 on second readinq, annexinq certain real property whose post office address is 1355 Union Street. into the corporate limits of the City, and redefininq the boundary lines of the City to include said addition. Ordinance #7471-05 was presented for second reading and read by title only. Councilmember Petersen moved to pass and adopt Ordinance #7471-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, Doran, and Hibbard. "Nays": None. Council 2005-09-01 10 . . . 10.6 Adopt Ordinance #7472-05 on second readinq, amendinq the future land use plan element of the Comprehensive Plan of the City. to desiqnate the land use for certain real property whose post office address is 1355 Union Street. upon annexation into the City of Clearwater, as Residential Urban. Ordinance #7472-05 was presented for second reading and read by title only. Council member Doran moved to pass and adopt Ordinance #7472-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, Doran, and Hibbard. "Nays": None. 10.7 Adopt Ordinance #7473.:.05 on second readinq, amendinq the zoninq atlas of the City by zoninq certain real property whose post office address is 1355 Union Street. upon annexation into the City of Clearwater. as Low Medium Density Residential (LMDR). Ordinance #7473-05 was presented for second reading and read by title only. Councilmember Hamilton moved to pass and adopt Ordinance #7473-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, Doran, and Hibbard. "Nays": None. 10.8 Adopt Ordinance #7477-05 on second readinq, annexinq certain real property whose post office address is 2748 Shaddock Drive, into the corporate limits of the City. and redefininq the boundary lines of the city to include said addition. Ordinance #7477-05 was presented for second reading and read by title only. Councilmember Jonson moved to pass and adopt Ordinance #7477-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, Doran, and Hibbard. "Nays": None. 10.9 Adopt Ordinance #7478-05 on second readinq. amendinq the future land use plan element of the Comprehensive Plan of the City. to desiqnate the land use for certain real property whose post office address is 2748 Shaddock Drive. upon annexation into the City of Clearwater, as Residential Low. Ordinance #7478-05 was presented for second reading and read by title only. Council member Petersen moved to pass and adopt Ordinance #7478-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, Doran, and Hibbard. "Nays": None. Council 2005-09-01 11 . . . 10.10 Adopt Ordinance #7479-05 on second readinq, amendinq the zoninq atlas of the City by zoninq certain real property whose post office address is 2748 Shaddock Drive, upon annexation into the City of Clearwater, as Low Medium Density Residential (LMDR). Ordinance #7479-05 was presented for second reading and read by title only. Councilmember Doran moved to pass and adopt Ordinance #7479-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, Doran, and Hibbard. "Nays": None. 10.11 Adopt Ordinance #7480-05 on second readinq, annexinq certain real property whose post office address is 3000 Lake Vista Drive. into the corporate limits of the City and redefininq the boundary lines of the City to include said addition. Ordinance #7480-05 was presented for second reading and read by title only. Council member Hamilton moved to pass and adopt Ordinance #7480-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, Doran, and Hibbard. "Nays": None. 10.12 Adopt Ordinance #7481-05 on second readinq, amendinq the future land use plan element of the Comprehensive Plan of the City. to desiqnate the land use for certain real property whose post office address is 3000 Lake Vista Drive, upon annexation into the City of Clearwater, as Residential Low. Ordinance #7481-05 was presented for second reading and read by title only. Councilmember Jonson moved to pass and adopt Ordinance #7481-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, Doran, and Hibbard. "Nays": None. 10.13 Adopt Ordinance #7482-05 on second readinq. amendinq the zoninq atlas of the City by zoninq certain real property whose post office address is 3000 Lake Vista Drive, upon annexation into the City of Clearwater. as Low Medium Density Residential (LMDR). Ordinance #7482-05 was presented for second reading and read by title only. Councilmember Petersen moved to pass and adopt Ordinance #7482-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, Doran, and Hibbard. "Nays": None. Council 2005-09-01 12 . . . 10.14 Adopt Ordinance #7483-05 on second readinq, annexinq certain real property whose post office address is 1555 Bonair Street. into the corporate limits of the City and redefininq the boundary lines of the City to include said addition. Ordinance #7483-05 was presented for second reading and read by title only. Council member Doran moved to pass and adopt Ordinance #7483-05 on second and final reading. The motion was duly seconded. One resident spoke in support of maintaining large lot sizes in the neighborhood. Upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, Doran, and Hibbard. "Nays": None. 10.15 Adopt Ordinance #7484-05 on second readinq, amendinq the future land use plan element of the Comprehensive Plan of the City to desiqnate the land use for certain real property whose post office address is 1555 Bonak Street. upon annexation into the City of Clearwater, as Residential Low. Ordinance #7484-05 was presented for second reading and read by title only. Councilmember Hamilton moved to pass and adopt Ordinance #7484-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, and Doran. "Nays": None. Absent: Hibbard. 10.16 Adopt Ordinance #7485-05 on second readinq, amendinq the zoninq atlas of the City by zoninq certain real property whose post office address is 1555 Bonair Street. upon annexation into the City of Clearwater. as Low Medium Density Residential (LMDR). Ordinance #7485-05 was presented for second reading and read by title only. Councilmember Petersen moved to pass and adopt Ordinance #7485-05 on second and final reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Petersen, Doran, and Hibbard. "Nays": None. "Absent": Hamilton 10.17 Continue adoption of Ordinance #7491-05 on second readinq, vacatinq the portion of Rollen Road riqht-of-way that lies between Lot 1, Block E., Pine Ridqe, and Lot 1, Block E. Pinebrook Hiqhlands, subiect to a drainaqe and utility easement which is retained over the full Council 2005-09-01 13 . . . width thereof to September 15. 2005. AND 10.18 Continue the adoption of Ordinance #7492-05 on second readinq. vacatinq the drainaqe and utility easement described as the south twenty feet of the vacated north one-half of Chautauqua Boulevard. Iyinq south of Blocks Forty and Forty-one. bounded on the east by the westerly riqht-of-way line of Lake Shore Drive. and on the west by the southerly extension of the west property line of Lot 11. Block 40. Chautauqua Unit 1. Section A to September 15. 2005. AND Council 2005-09-01 14 . 10.19 Continue adoption of Ordinance #7486-05 on second readino, annexinq certain real property whose post office address is 2695 Second Avenue South, into the corporate limits of the city and redefinino the boundary lines of the city to include said addition to October 20, 2005. AND 10.20 Continue adoption of Ordinance #7487-05 on second readino, amendino the future land use plan element of the Comprehensive Plan of the city to desionate the land use for certain real property whose post office address is 2695 Second Avenue South, upon annexation into the City of Clearwater, as Residential Sinole and Preservation to October 20, 2005. AND 10.21 Continue adoption of Ordinance #7488-05 on second readino, amendino the zonino atlas of the city by zonino certain real property whose post office address is 2695 Second Avenue South, upon annexation into the City of Clearwater, as Low Density Residential (LOR) and Preservation (P) to October 20, 2005. Councilmember Jonson moved to continue Items 10.17, 10.18 to September 15, 2005, and Items 10.19, 10.20, and 10.21 to October 20, 2005. The motion was duly seconded and carried unanimously. City Manager Reports . 11 Consent Agenda - Approved as submitted. 11.1 Amend Council Policy "L" Enterprise Fund Transfer Payment. to reflect an increase in the percentaoe to be used to calculate the payment in lieu of taxes (PILOT). 11.2 Approve Brownfields Site Rehabilitation Aoreement (BSRA) #BF529701 004 for the property consistino of 3.442683 acres, more or less, known as the Clearwater Automotive site qenerally located at 205 S. Martin Luther Kino, and authorize appropriate officials to execute same. 11.3 Approve renewal of the Manaoement Aoreement with Clearwater Community Sailino Association for a five year period, for total payments of $66,000 to the City, plus yearly Consumer Price Index increases and authorize the appropriate officials to execute same. 11.4 Approve a one-year fundino aoreement, in the amount of $281,220 between Jolley Trolley Transportation of Clearwater Inc. and the City of Clearwater for the operation of transportation and trolley services on Clearwater Beach, Island Estates, Sand Key and services from Clearwater Beach to Downtown Clearwater and the appropriate officials be authorized to execute same. . 11.5 Approve the lease purchase financino for a mobile performance platform: award a contract to Century Industries, LLC of Sellersburo, Indiana, in the amount of $39,083 and establish a capital improvement proiect for the purchase of the performance platform in the amount of $39,083 to be funded from lease purchase financino. Council 2005-09-01 15 . . . 11.6 Approve an addendum to the aqreement between the City of Clearwater and the School Board of Pinellas County. Florida to continue to provide one additional School Resource Officer at each hiqh school. Clearwater and Countryside. durinq school year 2005/2006. and authorize the appropriate officials to execute same. 11.7 Approve a work order to TBE Group. Inc. (EOR) in the amount of $134.410 for utility relocation desion services beino performed in coni unction with the Florida Department of Transportation's (FOOT) S.R. 55/US 19 (South of Seville Blvd. to North of S.R. 60) roadway improvement proiect and authorize the appropriate officials to execute same. 11.8 Reappoint Mayor Hibbard to the Pinellas County Metropolitan Planninq Orqanization with the term expirino on September 11. 2009. Councilmember Petersen moved to approve the Consent Agenda as submitted and that the appropriate officials be authorized to execute same. The motion was duly seconded and carried unanimously. 12 Other items on City Manager Reports 12.1 Approve amendment to Chapter 33. Section 33.067 of the Code of Ordinances addinq a slow speed minimum wake zone alonq the Gulf of Mexico side of Sand Key Beach and pass Ordinance #7494-05 on first readino. In the interest of public safety, boater education and to provide continuity of waterway marking from municipality to municipality, a slow speed minimum wake zone along the Gulf of Mexico side of Sand Key Beach from the City limits parallel to Sand Key Estates Court, north, to the extended property line of the Sheraton Sand Key Resort at 1160 Gulf Boulevard, is recommended. Neighboring municipalities have implemented wake zone restrictions along their Gulf beaches. Boaters leaving those zones cut into shore at the Clearwater City limits going full throttle to jump waves or other boat wakes, or water ski as conditions permit, creating a danger to swimmers. Implementing a slow speed minimum wake zone in this area will slow down these boats. The continuity of signage along the coastline will also assist the Pinellas County Marine Service Unit enforce the area. The cost to purchase and to have the buoys installed will be less than $20,000. Councilmember Petersen moved to approve amendment to Chapter 33, Section 33.067 of the Code of Ordinances adding a slow speed minimum wake zone along the Gulf of Mexico side of Sand Key Beach. The motion was duly seconded. Councilmembers Jonson, Petersen, Doran, and Mayor Hibbard voted "Aye"; Councilmember Hamilton voted "Nay." Motion carried. Council 2005-09-01 16 . . . Ordinance #7494-05 was presented for first reading and read by title only. Councilmember Doran moved to pass Ordinance #7494-05 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Petersen, Doran, and Hibbard. "Nays": Hamilton. Motion carried. 12.2 Approve an Additional Homestead Exemption for certain qualifyino low income senior (65 years or older) citizens and pass Ordinance #7499-05 on first readino. The Florida Constitution grants many residents an exemption of $25,000 from their property's assessed value when tax levies are determined by the Pine lias County Property Appraiser's Office. This "homestead exemption" is granted to those applicants with legal title property as recorded in official records who are bona fide Florida residents living in a dwelling and making it their permanent home on January 1 of the taxable year. State of Florida voters approved another constitutional provision in 1998 that allows municipalities to grant an additional limited homestead exemption to senior citizens that meet certain income criteria. Until recently, there was not enough data to determine the impact on City of Clearwater revenues of granting an additional exemption for these residents. Now however, after reviewing data from several neighboring municipalities that have instituted this exemption, it is the staff's opinion that the benefit to the City's qualifying low-income senior citizens outweighs the small anticipated loss of property tax revenue associated with this exemption. To be eligible, the person must be at least 65 years of age, have household income below the set threshold ($20,000 in 2000, adjusted annually), and the property must qualify for the original homestead exemption. Staff recommends adopting Ordinance #7499-05, Additional Homestead Exemption for Persons 65 and Older, which will grant some property tax relief for this segment of our community. If adopted, the additional senior exemption will go into effect, not this coming budget year, but the following budget year. Citizens will see the additional exemption notice on their TRIM bills in August 2006, along with instructions as to what will be required to receive the exemption. Councilmember Hamilton moved to approve an additional Homestead Exemption for certain qualifying low income senior (65 years or older) citizens. The motion was duly seconded and carried unanimously. Ordinance #7499-05 was presented for first reading and read by title only. Councilmember Jonson moved to pass Ordinance #7499-05 on first reading. The motion was duly seconded and upon roll call, the vote was: "Ayes": Jonson, Hamilton, Petersen, Doran, and Hibbard. "Nays": None. Council 2005-09-01 17 . 12.3 Ratify and confirm the purchase of property. casualty. liability. workers' compensation. emerqency medical services (EMS). fuel tank. and flood insurance coveraqe for Fiscal Year 2005/2006 as provided for in this aqenda item in an amount not to exceed $2.816.766. The Risk Management Division of the Finance Department purchases insurance coverage for the City in the above-named areas. This insurance is purchased through the efforts of three brokers: 1) Acordia Southeast; 2) Insurance & Risk Management Services; and 3) Arthur J. Gallagher & Co. - TampaBay. The City Administration, through its Risk Management Division, recommends that the City purchase insurance coverage for FY 2005/06 as follows: 1) Excess Property - October 1, 2005 - April 1, 2007; 2) Equipment Breakdown - October 1, 2005 - October 1, 2006; 3) Marina Operators Legal Liability - October 1,2005 - October 1,2006; 4) Storage Tank Liability (specific properties) 5/20/2005-5/20/206- May 20,2005 - May 20,2006; 5) Flood (specific properties) Annual term - various dates; 6) Crime and Dishonesty - October 1, 2005 - October 1, 2006; 7) Excess LiabilitylWorkers' Compensation ($500K SIR) - October 1, 2005 - October 1, 2006; and 8) EMS (Emergency Medical Services) Liability (reimbursed) - October 1,2005- October 1, 2006. Also recommended are 1) General Liability/Professional Liability; 2) Business Automobile Liability; and 3) Excess EMS General/Auto/Professional Liability. Premium for excess property insurance has increased more significantly than anticipated. The values have increased from $348M to $388M and the rates per $100 of coverage also increased. . Risk Management also recommends that the policy period for property coverage be increased from a 12-month to an 18-month term. The anticipated cost of $726,813 is included in the sum total of this agenda item. Subsequent property renewals will be on an annual basis. It is believed insurance will be more readily available and quotes easier to obtain by changing our annual renewal period for property insurance from hurricane season. The sum of $1,698,470 was budgeted, based on projections from all three brokers. The total requested at this time is $2,816,766. An additional amount of $391 ,483 is necessary for coverage for the period October 1, 2005 - October 1, 2006, and an additional amount of $726,813 is anticipated to extend the policy term for property insurance to April 1 , 2007. Request additional funds not currently budgeted to be taken from retained earnings. The current balance of retained earnings in the fund is in excess of $5 million. All risks are covered at levels and rates which, when taken together as a whole, represent a reasonable and conservative insurance program for the City. The City Manager said the insurance coverage was purchased to lock in rates and for the ability to obtain insurance, due to the impacts of Hurricane Katrina. New terms will expire in April 2007, to allow future renewals to be done outside of the hurricane season. Councilmember Petersen moved to ratify and confirm the purchase of property, casualty, liability, workers' compensation, emergency medical services (EMS), fuel tank, and flood insurance coverage for Fiscal Year 2005/2006 as provided for in this agenda item in an amount not to exceed $2,816,766. The motion was duly seconded and carried unanimously. . Council 2005-09-01 18 . . . 13 City Attorney Reports 13.1 In accordance with a request bv First American Title Company on behalf of Boos Development GrouP. approve for execution bv the appropriate City officials. an Affidavit confirminq the City does not claim an ownership interest in submerqed lands underlvinq "Waterwavs" as described in that certain Plat of Unit Two Island Estates of Clearwater (recorded in Plat Book 47. Paqes 19A and 20 of the Public Records of Pinellas County. Florida). In 1957, The North Bay Company platted Unit 2 Island Estates of Clearwater. The plat dedicated "to the Public in general all streets, waterways and public places shown on this plat." The City was therefore entrusted with oversight of the "waterways" on behalf of the public. The plat resulted in 18 developable lots for sale, but never contemplated a transfer of ownership of the adjacent submerged lands. As a result, the North Bay Company, or its successor-in-interest retained ownership of the bottomland. As potential successor-in-interest, Boos Development Group, in the course of completing the appropriate title work prior to closing through First American Title, is requesting confirmation that the City does not claim an ownership interest in the submerged lands underlying the "waterways" as dedicated for use by the public. It is City staff opinion that the plat does not result in an ownership interest in the name of the City, nor has any deed or other legal document ever been executed resulting in same. This property is directly across the street from Publix. Councilmember Doran moved that in accordance with a request by First American Title Company on behalf of Boos Development Group, to approve for execution by the appropriate City officials, an Affidavit confirming the City does not claim an ownership interest in submerged lands underlying 'Waterways" as described in that certain Plat of Unit Two Island Estates of Clearwater (recorded in Plat Book 47, Pages 19A and 20 of the Public Records of Pine lias County, Florida). The motion was duly seconded and carried unanimously. Attorney/Client Session The City Attorney requested an attorney/client session regarding National Advertising versus the City be scheduled for October 20, 2005, at 4:30 p.m. Consensus was to schedule. 14 City Manager Verbal Reports: - None. The Council recessed from 8:40 to 8:49 p.m. 15 Council Discussion Items 15.1 Direction re Old Florida District Planning Director Michael Delk summarized efforts in working with the neighborhood to provide clarity and consistency when applying the development standards in the Old Florida District. He presented several use and height options. Council 2005-09-01 19 . . . One person spoke in support of a 75-foot height limit, adding that a petition, signed by 75% of "Old Florida District" landowners in support of that limit, would be submitted within two weeks. Staff presented a list of questions for Council consideration. Discussion ensued regarding uses, building heights and transition areas in the Old Florida District. Direction was to allow overnight accommodations and residential uses throughout Old Florida District with mixed uses along Mandalay Avenue; limit building heights on north side of Somerset Street to 35 feet; limit building heights to 50 feet for properties within 60 feet of the south edge of Somerset Street; limit building heights in remainder of district to 65 feet; and that achievement of heights above 35 feet be performance based related to setbacks, step backs, good design, and architectural detail. Concern was expressed the proposed limits would not encourage the redevelopment and/or construction of smaller hotels and that incentives were needed. Comments were made Council is committed to developing incentives to encourage this type of development and staff is working on the issue. 15.2 Relocation of Calvary Baptist Church Chapel The Mayor reported he continues to receive information regarding the proposal to relocate the Calvary Baptist Church Chapel. He commended staff for their efforts and noted a tremendous amount of risk and unknowns related to the proposal exist. He expressed trepidation regarding the high cost estimates to move the structure, retrofit it, and operate it. In response to a question, Public Works Administrator Mahshid Arasteh estimated the structure would have to be approximately 10 feet off the ground to meet FEMA (Federal Emergency Management Authority) requirements. Consultant Heidt said the quality of the soil along the waterfront would have to be explored. He said the surrounding structures need to be demolished before jacks are put in place to move the chapel. Mr. Heidt said if more time were available, the City could apply for available grants to offset some of the costs. One person spoke in support of relocating the Calvary Baptist Church Chapel. It was felt efforts to save the chapel had started too late and concern was expressed regarding uncertainty with the estimates. In response to a question, Finance Director Margie Simmons said bonds could be issued quickly, after a referendum on the issue is approved by voters. It was felt this project is risky and extremely expensive. Consensus was not to pursue relocating the Calvary Baptist Church Chapel. The Mayor thanked the Council and staff for their effort and support. Council 2005-09-01 20 . . . 16. Other Council Action Councilmembers reported on events in which they recently participated and reviewed upcoming events; expressed concerns regarding devastation wrought by Hurricane Katrina, requested prayers for the victims, and encouraged residents to conserve energy and support relief efforts. Councilmembers Jonson, Hamilton. Petersen. and Doran complimented the Mayor's efforts to relocate Calvary Baptist Church Chapel. Councilmember Doran invited residents to attend upcoming Visioning Sessions and provide comment. Councilmember Jonson requested consideration of a method to base future salary decisions for City Manager and City Attorney; recommended the City forward list of priorities to Suncoast League of Cities Legislative Committee. 17. Adjourn The meeting adjourned at 10:22 p.m. -:/~ ~~ L..M8yor City of Clearwater Attest: - 2: )L~ OOrr1_ Council 2005-09-01 21 . . . EXHIBIT 1 TO THE COUNCIL MINUTES DATED 9/1/05 BEFORE THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA IN RE: PROPOSED ORDINANCE PURSUANT ) TO SECTION 190.005(2), FLORIDA STATUTES, ) TO ESTABLISH THE CLEARWATER CAY ) COMMUNITY DEVELOPMENT DISTRICT ) ) TESTIMONY OF FRED DAVIS CLARK FOR CLEARWATER CAY COMMUNITY DEVELOPMENT DISTRICT 1. Please state your name and business address. My name is Fred Davis Clark. My business address is 2704 Via Murano, Clearwater, Florida 33764. 2. By whom are you employed and in what capacity? I am the Manager of DC701, LLC, which is the Manager of DC703, LLC, which is the owner and successor developer of the Grand Venezia at Baywatch Condominium Project, and own or have under contract the commercial and office properties within the proposed District. 3. How long have you held that position? I have held this position for over one year. 4. Briefly summarize your duties and responsibilities. In my current capacity, I oversee all aspects of land development operations in Florida. I also am in charge of Florida daily operations including financial issues, legal issues, government relations and administrative responsibilities. 5. What positions did you hold prior to your present position? From 1987 to 2004, I was in charge of all development operations for the Rosen Development Group throughout Florida. The Rosen Development Group dates back to 1908. A history of the Rosen Development Group and EarthMark Companies is attached as Exhibit "A". For my last two years at Rosen, I was president of EarthMark Companies. From 1982 to 1987, I was involved in real estate development within the State of Florida. From 1979 to 1982, I served as an accountant for Ernst & Ernst. 6. Briefly describe your educational background. Page 1 of 8 . I earned a Bachelor of Science in Accounting from the University of Central Florida in 1979. 7. Who is the Petitioner in this proceeding? The Petitioner is DC703, LLC, a Florida limited liability company. 8. Are you familiar with the Petition filed by DC703, LLC seeking the establishment of a community development district? Yes. I assisted in the formulation of the Petition and accompanying documents, and met with members of the consultant team we hired to prepare the filing. I also reviewed the Petition and accompanying documents prior to their filing. 9. What is the proposed name of the District? The Clearwater Cay Community Development District. 10. Have you reviewed the contests of the Petition and approved its findings? Yes, I have. . 11. Are there any changes or corrections to the Petition at this time? No. 12. Are there any changes or corrections to any of the documents attached to the Petition at this time? No. 13. Please generally describe each of the documents attached to the Petition. Exhibit A is a Clearwater Cay Club Community Development District survey. Exhibit B is a legal description of the land comprising the Clearwater Cay Club Community Development District. Exhibit C is the Clearwater Cay Club Community Development District consent of land owners. Exhibit D is a list of the Clearwater Cay Club Community Development District Board of Supervisors. . Exhibit E are maps showing current major trunk water mains, sewer interceptors Page 2 of 8 . . . and outfalls. Exhibit F is the Clearwater Cay Club Community Development District Preliminary Infrastructure Cost Opinion. Exhibit G is the Statement of Estimated Regulatory Costs (SERC). Exhibit H are maps (including Aerial, Water Park, Overall Master Plan, Site Plan, Future Land Use, Zoning and narrative). Exhibit I is an Authorization of Agent - W. Scott Callahan, Esquire and Thomas A. Cloud, Esquire. 14. Were these documents attached to the Petition prepared by you or under your supervision? Yes. 15. To the best of your knowledge, is the survey identified as Exhibit A to the Petition a true and accurate depiction of the general location of the proposed District? Yes. 16. To the best of your knowledge, is the written legal description included in Exhibit B to the Petition, a true and accurate recitation of the land area to be included within the proposed District? Yes. 17 . To the best of your knowledge, is Exhibit C to the Petition a true and accurate copy of the Consent and Joinder obtained from the owner of one hundred percent (100%) of the lands to be included within the proposed District in accordance with Section 190.005, Florida Statutes? Yes, it is. 18. To the best of your knowledge, is Exhibit H to the Petition an accurate depiction of the future land uses within and around the boundaries of the proposed District? Yes. 19. To the best of your knowledge, does Exhibit E show the current major trunk water mains and sewer interceptors within and around the boundaries of the proposed District? Page 3 of 8 . Yes. 20. To the best of your knowledge, is Exhibit H to the Petition a true and accurate depiction of the development plan for the lands to be included within the District? Yes, it is. 21. To the best of your knowledge, is Exhibit F to the Petition a true and accurate recitation of the facilities and services presently expected to be provided within the proposed District and the expected cost of the proposed improvements? Yes. 22. To the best of your knowledge, is Exhibit H to the Petition a true and correct copy of an aerial photograph ofthe area in and around the proposed District? Yes, it is. 23. Therefore, are the contents of the Petition and the documents attached to it true and correct to the best of your knowledge? . Yes. 24. Are you familiar with the area that is proposed to be included in the District? Yes, I am familiar with the general area and the site specifically. . 25. Approximately how large is the proposed District in acres? The proposed District is located entirely within the limits of Clearwater, Florida, and covers approximately 49.37 acres. - --.- ~ 26. What steps were taken with respect to filing the Petition with the City Council of the City of Clearwater, Florida? On March 4, 2005, the Petitioner formally filed (1) original and ten (10) copies of a Petition with exhibits with the City Attorney. Following two meetings with City staff, the Petitioner filed a Supplemental Petition plus exhibits with the City Attorney. This filing took place on June 17, 2005. 27. Has notice of the hearing been provided in accordance with Section 190.005, Florida Statutes? . Page 4 of 8 . Yes. The Petitioner arranged for newspaper notice of the hearing scheduled by the City Council to be published in The Sf. Pete Times. A hearing was originally noticed for September 1, 2005 at 6:00 PM at the City Council Chambers at the City of Clearwater City Hall, 112 S. Osceola Avenue, Clearwater, Florida 33758. Notice provided by the Petitioner is compliant with the requirements of Florida law. 28. And do you have proof of publication of those notices? At the time this testimony is pre-filed, I do not yet have the proofs of publication from The Sf. Pete Times. I will have that documentation available at the September 15, 2005 public hearing. 29. Is The St. Pete Times a newspaper of general circulation in Clearwater, Florida? Yes, it is. 30. Who are the five persons designated in the Petition to serve as the initial Board of Supervisors? The five persons are Darcy Edwards, Gary Schwarz, David Schwarz, Cristal Coleman and Fred Clark, Sr. . 31. Do you know each of these persons personally? Yes, I do. 32. Are each of the persons designated to serve as the initial Board of Supervisors residents ofthe State of Florida and citizens ofthe United States? Yes, they are. 33. -Are there~residentiaLunits planned for development within the proposed District? Yes. There are 336 apartment units (converted to condominiums) or 24.08 acres known as the Via Venezia. The remaining proposed program is listed in Exhibit "H" but is subject to review and discretionary approval of the City of Clearwater which has not yet been granted. 34. If the City Council in its discretion approves this Supplemental Petition to create the District, does this affect land use or zoning on the property? . Absolutely not. The land use and zoning on the property is still subject to all City land development codes and regulations. Chapter 190 specifically recognizes that creation of the District has no effect on land use and zoning. Page 5 of 8 . 35. Are there residents currently living within the areas to be included within the District, and, if so, have they been notified about the creation of the District? Yes. All residents have consented to creation of the District. 36. Would you please describe the proposed timetable for development of land within the proposed District? The proposed timetable for the construction of infrastructure to develop the land is expected to occur during the period running from 2006 to 2010. 37. Would you generally describe the services and facilities you currently expect the proposed District to provide? . The Petitioner presently intends for the District to participate in acquisition or construction of certain roads and miscellaneous traffic improvements, certain water and sewer facilities, certain water park and stormwater improvements as described in Exhibit "F" of the Supplemental Petition, park, landscaping, security and parking facilities. Capital costs of these improvements will be borne by the District. The Petitioner's good faith expectation of the costs associated with the acquisition or construction of such improvements is itemized in Exhibit "F" of the Supplemental Petition. The District has agreed toenter into a written agreement with the City to define those facilities which the City wants to own (if any) and those facilities which the District shall own, operate, and maintain. 38. In general, what financing methods does the Petitioner propose for the proposed District to pay for the anticipated facilities and services? The Petitioner presently expects that the District will finance certain services and improvements through the issuance of tax exempt bonds. The debt issued by the proposed District is expected to be retired by "non-ad valorem" or "special" assessments on benefited property within the proposed District. Ongoing maintenance and operational activities are expected to be funded by maintenance assessments. At present, the Petitioner expects to have the District issue one long term bond issue that will pay a portion of the cost of these facilities. Any facilities not financed with the bond issue will be funded by the developer and conventional bank financing. Under no circumstances will the District be used to finance the construction or maintenance of a golf course within the development. 39. Who will be responsible for paying the proposed District's assessments? . Only those property owners within the proposed District will be responsible for paying District assessments. We do not expect the proposed District to issue general obligation debt which pledges its full faith and credit. Page 6 of 8 . 40. Will these proposed District debts be an obligation of the City of Clearwater or the State of Florida? No. Florida law provides that community development district debt cannot become the obligation of a county, a city, or the state without the consent of that government. 41. Why is DC703, LLC seeking to have a community development district established for this area? . I have been involved in the redevelopment and revitalization of coastal commercial properties in Florida for almost 30 years. Some properties not directly located on the beach present unique challenges to redevelopment,- and the commercial lands within the proposed District are one of those properties. To redevelop the existing abandoned commercial property, counteract the negative market impacts projected to occur when the adjacent segment of US Highway 19 is elevated, and to better utilize the potential functional relationship between the properties to be located in the District and other adjacent properties, it is necessary to construct expensive water-activity based improvements for which long-term traditional commercial debt is not readily available. Use of a District will provide this long-term debt. Based on information provided by the Department of Community Affairs, there are more than 120 active CDDs in Florida. CDDs are an efficient, effective way to provide infrastructure and have become accepted in the marketplace of homebuyers. From our perspective, the establishment of a CDD is logical for this project. It is a long-term, stable, financially-secure entity. The District is a structured, somewhat formal entity, with the legal ability to respond to future changes in the circumstances and desires of its residents. Under Florida law, the District has access to the county tax collection mechanisms which helps ensure that the facilities will be maintained. In that sense, to us, it is preferable to a property owners' association. In addition, the CDD has the financial capability to assist in the provision of _necessary_capital illlProyerne_nts sgoner than might otherwise be the case. The City of Clearwater, developers, builders and residents will all benefit from these improvements in terms of access, traffic flow, safety, and general property enhancement. 42. Do you have experience in providing notice to property purchasers of special district assessments in other developments? . Yes, it is vital to the integrity of the special district process to put property purchasers on notice of the existence of the district and future special assessments. I am including copies of a contract and a special notice given each purchaser for the Clearwater Cay Community Development District as Exhibits "8" and "C" of my prefiled testimony. The CDD notice provision in the contract is set forth above the Buyer's signature block on contract as statutorily required. Page 7 of 8 . . . 43. Does this conclude your testimony? Yes. FURTHER YOUR AFFIANT SAITH NOT. ~~ Fre'd Davis Clark STATE OF FLORIDA COUNTY OF ~~<'--'-n? Sworn to (or affirmed) and subscribed before me this ~ \ day of M\ J:::} -)~ ,2005, by Mr. Fred Davis Clark. ~"",-,,,~ J), >~~)~ Sign ure of Notary Public ~~fC'<-~ ~ ~C'I ,,).... Print Notary Name My Commission Expires: ~ ._~~c:::., Commission No.: ~~ ~lrc.r~ ~ersonally known, or o Produced Identification Type of Identification Produced AFFIX NOTARY STAMP ~:r......a.....1/; .~ ...,,~~~~~,~ DEBORAH A. SMITH l~mc% Notary Public - Slate of Florida ~. . . ~ My Commission Expires Sep 3D, 2005 ~~ ?iJF Commission # OD056559 ''''.,'If.F.i,'''' Bonded 8y National Notary Assn. .i oi<'I!'.~-':;~~'~'::~':"L"~"'r"'-C...~i"''''''~ .~. # 419749 v1 Page 8 of 8 . EXIDBIT "A" [A history of the Rosen Development Group and Earthmark Companies] . . . . . Earthniark Companies eEarthM~rk _ companIes Page l'of2 HONE I ritE" BOARD I EXECUTIVE l\lIlNACEMEI'lT I HISTORY l OEV.ElCI'!.'J;NTS I ENVIRCNr"mTJU. INrt'IATl'lES I flllANClAL I CONTAct us 'I Isadore Rosen Philip Rosen Michael E. Rosen EarthMark Companies, a real estate and environmental development company, is a consolidation of third and fourth generation real estate and business professionals with more than 200 years of combined successes. 'In 1908, Isadore Rosen arrived from what Is now Lithuania and was soon laying cobblestone pavers on the streets of lower Manhattan. In 1919, at the age of 23, he started his own masonry contracting company. Over the years, it grew to become the largest in New York City. In 1946, Isadore's SOil, Philip, joined the family business, which became known as Isadore Rosen and Sons. With Philip et the helm, the firm expanded its operations to include not only masonry contracting but also the building of apartment houses for their own account. Over the years, Isadore Rosen and Sons built over 37,000 residential units. In 1980, Phnlp's son, Michael, entered the business and soon after teamed with Dave Clark, creating the Rosen Development Group (RDG). Under their directIon, the company's emphasis shifted to the building and development of detached and attached single-family homes and lots in the New York Metropoflt<:ln area and throughout Florida. In the mid-90's RDG recognized the importance of environmental. restoration and protection and joined the fledgling MItigation Banking Industry with the development of the highly successful Big Cypress Mitlga,tlon Bank. To dater the combined companies have built and/or del/eloped more , than 42,000 residential units, 4,000 single family lots and currently have over 3,000 homesltes approved for development by EarthMark. The company's MitIgation Banks, on both the east and west coast of Florida, have over 1,600 credits. approved for sale and another 2,000 soon to be approved. The vision, dedication and hard work invested over the last century Is paying off as we enter the new century and dedication to excellence is th~ connecting link. The future successes of EarthMark will result from this family tradition of hard work, proven experience,. formidable partnering and creative, forward vision. ~ EXHIBIT l 2' ! '" A http://ww~l.earthmark.uslhi~tory.htm 1/23/2004 . . . EartIlln,ark Companies Page 2 of2 .,. .". ~';iNt(.~:- i \ ~.;':':y "~f c~},~ ~\'\ Dave Clark 12S0D Unlven;lry Dr.. SlIlle 400 F ortl.lYl!lrs. f'L 3391>7 Ph 239-415-67.00 . Fax 239..0115-8211 http://www.earthmark.uslhistory.htm 112312004 . EXHIBIT "B" [Revised Purchase Contract] . . . . . THE GRAND VENEZIA AT BA YW A TCH, A CONDOMINIUM RESIDENCE PURCHASE CONTRACT Purchaser( s) Purchaser's Marital Status for Title (single. married, husband & wife): Residence (Unit)# Purchaser SS # FEI # Purchaser Address: Purchaser Phone: THIS RESIDENCE PURCHASE CONTRACT (this "Contract") is made and entered into on the date this Contract is signed by Seller "Effective Date," as such term is defined in Section 38 below, by and between DC703, LLC, a Florida limited liability company, as Developer ("Seller"), and the above named person(s) ("Purchaser"). WITNESSETH: Seller agrees to sell and Purchaser agrees to purchase, upon the following terms and conditions, condominium Unit # (the "Unit") in The Grand Venezia at Baywatch, a Condominium (the "Condominium"), pursuant to the Declaration of Condominium for The Grand Venezia at Baywatch, a Condominium, J.:~(;or~e~ i!! ,~~~ ,~~bJi~, ~~l?~~~~, ~f.~.i!!~!!~ ,C,<?UI~t)'" flo,ri~l,i, .9fticia,I, ~,ec{)rds Boo,k 1403~. ,_ ,,' - ,loeleted: to be Pages 1368-1486. including all amendments and/or restatements recorded thereafter (the "Condominium Declaration"), for the purchase price and on the other terms and conditions set forth in this Contract. The Condominium is part of a larger development known as "Clearwater Cay" which is more particularly described in Exhibit "A" attached to the Declaration of Covenants, Conditions and Restrictions for Clearwater Cay Community (the "Master Declaration"), and is also subject to the Declaration of Covenants, Conditions and Restrictions for The Grand Venezia at Baywatch (the "Resort Declaration"). ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, REFERENCE SHOULD BE MADE TO THIS CONTRACT AND THE DOCUMENTS REQUIRED BY SECTION 718,503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A PURCHASER OR LESSEE. 1. PURCHASE PRICE: The total purchase price ("Purchase Price") for the Unit is $ , and is exclusive of any closing costs as described in Section 6 hereof and elsewhere herein (collectively, the "Closing Costs"). Purchaser shall make the following payments: The Purchase Price is payable in U.S. Dollars as follows: $ Deposit due upon signing of this Contract by Purchaser (which shall include any Reservation Deposit previously made by Purchaser); Purchaser's Initials . . . $ The balance of the Purchase Price at the "Closing," as such term is defined in Section 2 below, by cash, cashier's check or wire transfer of funds (subject to adjustments and prorations described in this Contract). Make all deposit checks payable to: Stump, Storey, Callahan, Dietrich & Spears, P.A. Trust Account, and mail or deliver to 37 N. Orange Avenue, Suite 200, Orlando, Florida, 3280 I; TEL: (407) 425-2571 ; FAX: (407) 425-0827. Deposit checks are accepted subject to collection. In addition to the Purchase Price, Purchaser shall also be required to pay the amounts described in Section 3 and Section 6 below and the amounts referenced on Exhibits "A." "8," and "D" attached hereto and incorporated herein by this reference. Seller has retained Stump, Storey, Callahan, Dietrich & Spears, P.A., 37 N. Orange Avenue, Suite 200, Orlando, Florida, 3280 I; TEL: (407) 425-2571; FAX: (407) 425-2571, to act as Escrow Agent (the "Escrow Agent") as required by Section 718.202, Florida Statutes. Purchaser will be giyen a receipt for deposits by the Escrow Agent, if requested. THIS CONTRACT IS NOT CONDITIONED UPON PURCHASER SECURING FINANCING. 2. CLOSING AND POSSESSION DATE: A. The Closing shall be at the location designated by Seller in written notification to Purchaser. B. Seller shall deliver possession of the Unit to Purchaser at the Closing. C. The Closing shall take place on or before D. Seller, as to the Closing and documents to be delivered at the Closing, will have no obligation to any third parties (i.e., lenders or title insurance providers) and will be under no obligation to deal with any person or firm other than Purchaser and Purchaser's attorney. 3. USE OF STUMP, STOREY, CALLAHAN, DIETRICH, & SPEARS, P.A.: A. Stump, Storey, Callahan, Dietrich & Spears, P.A. ("Stump") shall act as the title insurance agent and closing agent in connection with this transaction. B. Seller shall cause Stump to deliver to Purchaser, either ten (10) days prior to the Closing, or at the Closing, if the Closing takes place within ten (10) days of the execution by Seller of this Contract, a title insurance commitment issued by Chicago Title Insurance Company (the "Commitment") agreeing to issue to Purchaser, upon recording of the Deed to Purchaser, an owner's policy of title insurance in the amount of the Purchase Price, insuring Purchaser's title to the Unit, subject only to the "Permitted Exceptions," as such term is defined below, provided, however, the Commitment and related owner's policy of title insurance shall not insure Purchaser's interest in any limited common element(s) appurtenant to the Unit, if any. C. If Purchaser notifies Seller J~~!))_~r~_~a_s~~_eIe_c~~ _~<?_~_~y_~ _~~ _<?~~(s_~!!!e_ !~_sura.~~_e _~~~i~~~_t___ _ . _ --, Deleted: less than thirty (30) days prior and policy provided by an attorney or a title insurance agency other than Stump, Purchaser shall pay to to the Closing Stump a closing coordination fee an amount equal to FIVE HUNDRED and No/lOO DOLLARS ($500.00) in consideration of administrative expenses incurred by Stump in connection with the coordination of the closing with Title Agent. - 2 - Purchaser's Initials . . . TITLE OBJECTIONS: Purchaser shall give Seller written notice specifically detailing any title objections (the "Notice of Objections") upon the earlier of ten (10) days prior to the Closing or ten (10) days after receipt of the Commitment. If the Notice of Objections is not received by Seller within the time provided, Purchaser shall be deemed to have waived the right to raise title objections. Seller shall have ninety (90) days from the date Seller receives the Notice of Objections to correct the title objections raised or to otherwise respond to Purchaser in the event Seller determines that (a) no title objection exists or (b) Seller cannot, or elects not to, correct the title objections, in Seller's sole and absolute discretion. If Seller cannot, or elects not to, cure the title objections raised in the Notice of Objections within the subject ninety (90) day period, Purchaser shall elect one of the following two options by written notice to Seller within ten (10) days after delivery to Purchaser of written notice from Seller of Seller's intention not to cure the title objection: (a) Purchaser can accept title to the Unit in the condition offered by Seller without reduction of the Purchase Price, thereby waiving all objections and any claims against Seller with respect to the objectionable title objection(s); or (b) Purchaser can cancel this Contract and, in full settlement of all claims against Seller resulting from this Contract, receive a full refund of the deposit(s) actually paid by Purchaser. If Purchaser- cancels this Contract and receives a refund of the deposit(s) actually paid by Purchaser, Purchaser shall not thereafter have any rights to make any additional claims against Seller and this Contract shall no longer have any force or effect. In the event Purchaser does not notify Seller in writing within ten (10) days from the receipt of Seller's notice (time being strictly of the essence) as to which option Purchaser elects, Purchaser shall be conclusively presumed to have elected the option provided in this Section 4(b ). 4. CLOSING: A. Seller shall convey marketable and insurable title to the Unit, but not to any limited common" _n { Formatted: Indent: Left: 0.13" element(s) appurtenant to the Unit, if any, to Purchaser at the Closing by delivery to Purchaser of a special warranty deed (the "Deed") describing the Unit. The Deed shall convey title to the Unit to Purchaser subject to the title exceptions set forth on Exhibit "F" attached hereto (collectively, the "Permitted ExcePtions"). It is Purchaser's responsibility to review and become familiar with each of the foregoing title matters, some of which are covenants running with the land. B. Any matters relating to the Permitted Exceptions omitted from the Deed shall nevertheless be deemed to be included in the Deed. Purchaser understands and agrees that the terms of the immediately preceding sentence shall survive the Closing of the transaction contemplated herein. Seller shall deliver the Deed to Purchaser at the Closing of the transaction contemplated in this Contract, which Deed shall be tree and clear of all monetary liens and encumbrances, except as otherwise noted herein. The acceptance of the Deed by Purchaser shall be deemed to be full performance and discharge of every agreement and obligation on the part of Seller to be performed pursuant to this Contract, except those which are herein specifically deemed to survive the Closing of the transaction contemplated herein or which may survive by operation of law (if any). - 3 - Purchaser's Initials . . . C. Seller shall provide an affidavit complying with the Foreign Investment in Real Property Tax Act of 1980, as amended. 5. CLOSING COSTS, OTHER CHARGES AND PRORATIONS (OTHER THAN TITLE RELATED CHARGES): Anv and all amounts listed in the condominium documents that vou will pav to the Condominium........ { Formatted: Indent: First line: 0" Association, Resort Lot Owner, Master Association or CDD are subiect to chane:e in the future. It is very likelv that chane:es will occur and the amounts will increase, especiallv as a result of the rise in insurance premiums, and these increases will be bevond the reasonable control of Seller. You are advised to include the potential increases in these amounts in vour decision to purchase. L-At the Closing of the transaction contemplated herein, Purchaser agrees to pay to Seller the+' -- --.. { Formatted: Standard_L2 balance of the Purchase Price and any additional amounts Purchaser owes under this Contract by cash, wire transfer or by cashier's check. Official checks, bank checks andlor personal checks will not be accepted. PURCHASER UNDERSTANDS AND AGREES THAT IN ADDITION TO THE BALANCE OF THE PURCHASE PRICE, PURCHASER AGREES TO PAY CERTAIN OTHER FEES AND ( Deleted: without limitation J "CLOSING COSTS" AT THE CLOSING. These extra charges include, but not limited to. the followin;.. (a) Except as provided in Section 3.A. and Section 3.B. hereof, the premium for a policy of lender's title insurance, if any; one-time initial capital contribution to the Master Association; prorated ,!lll)nthl\~ .TIle.nlb.ershiQ. .fee... ~f. th~.. M~~~.r. ~.sso.~t~tj<?~~. ~"l~:~iTIl~......'" Deleted: quanerly initial capital contribution to the Condominium Association, prorated "110ntl~ly.. ...... Deleted: assessments maintenance of the Condominium Association (including assessments for the Shared ....... Deleted: quanerly assessment Facilities Expenses, Basic Resort Services Expenses and Club Lot Facilities Expenses, which are assessed by Resort Lot Owner, but payable to the Condominium Association);.. _..... { Deleted: prorated monthly Club Fees; recording fee for certificate of approval; title search fees; settlement fee; signing agent fee. recording fee for the Deed; documentary stamps for the Deed; and ad valorem real property taxes, subject to proration in accordance with the terms of Section 6(i) hereof. (b) Closing costs associated with the loan, which may vary from lender to lender, and an estimate of which will be provided by, or on behalf of, the lender to whom Purchaser submits an application for a loan. (c) All additional costs respecting the Unit imposed by any governmental authority. (d) The cost of any obligations Purchaser incurs not provided for in this Contract. (e) Governmental liens (liens which can be paid pursuant to written notice) which have been certified as of the date of the Closing, if any, shall be assumed and paid by Seller; pending and proposed governmental improvement liens, taxes and/or assessments (for public improvements or otherwise) shall be paid and assumed by Purchaser; provided, however, to the extent that such items may be paid in installments, Purchaser shall be responsible for all such installments (or portions thereof) which are attributable to the date from and after the Closing. (f) Any other expenses of an owner of real property governed by and subject to the Master Declaration andlor the Condominium Declaration. (g) Amounts reflected in Exhibits "A," "8," and "D" attached hereto and incorporated herein by this reference. - 4- Purchaser's Initials . . . (h) Current expenses of the Unit (for example: taxes, special assessments and current monthly assessments to the Master Association and Condominium Association (including those of the Resort Lot Owner payable to the Condominium Association) will be adjusted between Seller and Purchaser as of the original Closing date, except for when Seller requires a delay in the Closing date, in which case the adjustments and prorations will be as of the new Closing date. Purchaser shall reimburse Seller for any prepaid expenses of the Unit, such as utility deposits, insurance premiums, local interim service fees, cable fees, assessments and capital contributions made to the Master Association or Condominium Association, paid by Seller in advance and/or for the month of the Closing. (i) If the real estate ad valorem property taxes or real estate non-ad valorem special assessments lawfully levied and imposed by any and all local governments, general purpose or special purpose, to which the Unit is subject for the year of the Closing are assessed in the aggregate on the land comprising the portion of Clearwater Cay Community, including the Unit, rather than on a unit-by-unit basis, Seller will pay such taxes in full when due, but Purchaser will reimburse Seller at the Closing for Purchaser's pro rata share of such taxes from the date of the Closing through the end of the then current tax year (if such taxes are then known) or the Unit's allocable share (so prorated) of Seller's estimate of those taxes based on the tax bill for the prior year or Seller's estimate of taxes (if such taxes are not then known), subject to readjustment at either the request of Seller or Purchaser within six (6) months from when the actual tax bill is known. If taxes for the year of the Closing are assessed on a unit-by-unit basis but such taxes are not yet due on the date of the Closing, Purchaser will be responsible for paying such tax bill in full when due, but Seller will reimburse Purchaser at the Closing for Seller's pro rata share of such taxes (if the taxes are then known) or Seller's estimate of those taxes (if such taxes are not then known) through the date of the Closing, subject to readjustment at either the request of Seller or Purchaser within six (6) months from when the actual bill is known. If the Closing takes place after Seller has paid the taxes for the year of the Closing, Purchaser will reimburse Seller at the Closing for Purchaser's pro rata share of those taxes from the date of the Closing through the end of the current tax year. U) (k) One-time Initial Contribution to Clearwater Cay Club of .F5,OW.OO-,. __ __ _.... __ __ __ __ A fair and reasonable developer fee in the amount of . payable to Seller. Purchaser acknowledges that this fee is not for closing services. Rather it is a fee due to Seller that will result in additional profit to Seller. 6. TCONSTR lJ.CTI ON: A. Purchaser acknowledges that Seller has made available to Purchaser in the sales office for the Condominium plans and specifications for the Unit and the improvements comprising the common elements of the Condominium (the "Plans and Specifications"). B. Except as provided in Section 21 below, for reasons of safety and of requirements under policies of insurance held by Seller, neither Purchaser nor any agent of Purchaser shall enter the Unit or the Condominium until after Purchaser has closed the purchase of the Unit in accordance with the terms hereof and taken possession of the Unit, whereupon Purchaser's rights shall be as set forth in the "Condominium Documents," as such term is defined in Section 23 below. Purchaser agrees hereby to abide by such restriction and not to enter upon, nor interfere in any way with the Seller or any other - 5 - Purchaser's Initials _.{D~S-~---~ Deleted: one percent (1%) of the Purchase Price Deleted: 1 1 Fonnatted: Bullets and Numbering . portion of the Condominium. Purchaser may not order any work on the Unit until after the Closing, other . than options or extras that Seller agrees in writing to provide. 7.. ACCEPTANCE OF UNIT: AS IS CONDITION. Purchaser agrees to accept the Unit in "AS IS" condition. 8. DEFAULT AND REMEDIES: A. In the event Purchaser fails to close the transaction contemplated herein in the time established, for reasons other than Seller's default or delay, and Seller agrees to extend the Closing in writing in accordance with this Section 9.A., Purchaser shall, if Seller is still willing to close, be required to pay interest on the Purchase Price equal to the highest rate of interest per annum permitted to be charged by applicable prevailing law (such rate currently being eighteen (18%) percent per annum) from the date on which the Closing was originally scheduled, to and including the date on which the Closing actually occurs. Further, all prorations shall be made as of the date Closing was originally scheduled. Nothing in this Contract, however, shall require Seller to extend the Closing beyond the time set forth in this Contract or prevent Seller from treating Purchaser as being in default if Purchaser fails to close within that time, and Seller shall only be deemed to have agreed to extend the Closing if Seller does so in writing. . B. Should Purchaser fail to make any of the payments herein above scheduled, or fail or refuse to execute the instruments required to close the transaction contemplated herein (including failure to promptly execute and file mortgage loan application documents, and all mortgage loan and real estate Closing documents and to comply with the requirements of the mortgage lender, including providing any and all information as requested) or refuse to pay any costs or the sum required by this Contract, or otherwise defaults hereunder, and shall fail to correct such default within five (5) days after Seller has given Purchaser a written notice of such default, then Seller may declare this Contract terminated and retain all deposits paid by Purchaser as liquidated and agreed-upon damages which Seller shall have sustained and suffered as a result of Purchaser's default, and thereupon the parties hereto will be released and relieved from all obligations hereunder. These provisions for liquidated and agreed-upon damages are bona fide provisions for such and are not a penalty, the parties understanding that by reason of the withdrawal of the Unit from sale to the general public at a time when other parties would be interested in purchasing the Unit, Seller will have sustained damages if Purchaser defaults, which damages will be substantial and would be extremely difficult or impossible to determine with mathematical precision. Therefore, Seller and Purchaser have agreed that, by signing this Contract, the parties acknowledge that the deposit(s) paid and agreed .to be paid by Purchaser, with all accrued interest thereon, is (are) agreed upon, after negotiation, as the parties' reasonable estimate of Seller's liquidated damages in the event of a breach of this Contract by Purchaser. C. If Seller defaults in the performance of this Contract, nothing contained herein shall be deemed to restrict Purchaser's remedies if Purchaser shall be entitled to such remedies under applicable law, including the right to seek specific performance. 9. PROPERTY TAX DISCLOSURE. Pursuant to Section 689.261, Florida Statutes, Seller is required to provide each prospective purchaser of residential property within the Community a Property Tax Disclosure Summary at or before such prospective purchaser executes a Contract to purchase a Home in the Community. The Property Tax Disclosure Summary for the Community is incorporated into this Contract by this reference. Purchaser should not execute this Contract until Purchaser has received and read the Property Tax Disclosure Summary. In that regard, - 6- Purchaser's Initials . Purchaser acknowledges that Purchaser has received and read the Property Disclosure Summary for the Community before executing this Contract. . . . 10. ASSIGNMENT: This Contract is not assignable by Purchaser, except to Purchaser's spouse, individually or jointly with Purchaser, Purchaser's family trust, existing or to be created and of which the Purchaser or Purchaser's spouse is the primary beneficiary, or to any business entity organized under the laws of the State of Florida or any other state and authorized to do business in the State of Florida in which the Purchaser or Purchaser's spouse owns at least a fifty percent (50%) controlling interest. A transfer or conveyance of such controlling interest may, at Seller's election, constitute a material breach of this Contract by Purchaser. In the event of any other assignment by Purchaser, Seller shall be under no obligation to complete the transaction contemplated hereby or any portion thereof with said assignee, but in fact may treat such action by Purchaser as a breach of this Contract. Seller, in Seller's sole and absolute discretion, may assign its rights under this Contract. If Purchaser dies or in any way loses control of Purchaser's affairs, this Contract will bind Purchaser's heirs and legal representatives. If Purchaser has received Seller's written consent to assign or transfer this Contract, then Purchaser's approved assignees shall be bound by the terms hereof. However, Purchaser shall not be relieved of its obligations under this Contract. II. DEPOSITS: ALTERNATIVE ASSURANCES: All deposits shall be held (subject to the right of Seller to provide "Alternative Assurances" as set forth below) and disbursed by the Escrow Agent pursuant to the terms of this Contract and the terms of an Escrow Agreement between Escrow Agent and Seller dated , which Escrow Agreement is incorporated herein by reference. Deposits by Purchaser comprising the first ten percent (1 0%) of the aforestated Purchase Price for the Unit may be placed in a non-interest bearing account with a depository institution. Seller intends to make an "Alternative Assurances" filing with the Division of Florida Land Sales, Condominiums and Mobile Homes. This filing, upon approval, .will permit Seller to substitute a Surety Bond for Purchaser's initial ten percent (10%) deposit moneys held by the Escrow Agent, withdraw such funds from the account maintained by the Escrow Agent into which such funds were deposited and maintained by the Escrow Agent and to use such funds in accordance with applicable law. 12. CONDITION PRECEDENT: In the event that Seller has been unable to obtain purchase contracts for eighty percent (80%) of the units in the Condominium within one hundred eighty (180) days from the date the first purchaser signs a purchase contract for the purchase of a unit in the Condominium, Seller may unilaterally terminate this Contract by delivery of written notice to Purchaser and, upon refunding to Purchaser all deposits, including any interest earned on such deposits, shall have fulfilled all of Seller's obligations to Purchaser under this Contract. Nothing herein contained shall be construed or so operate in a manner inconsistent with 24 CFR S171O.5 and 61 F.R. 13601-13611, Supplemental Information to Part 1710; Guidelines for Exemptions Available Under the Interstate Land Sales Full Disclosure Act, Part IV (b), Paragraph 6. 13. INSULATION: Pursuant to Title 16, Section 460.16 of the United States Code of Federal Regulations, the Insulation Disclosure Addendum is attached hereto as Exhibit "E". - 7 - Purchaser's Initials . . . 14. ENERGY PERFORMANCE AND ENERGY EFFICIENCY RATING DISCLOSURE: Pursuant to Sections 553.9085 and 553.996, Florida Statutes, Purchaser may request that Seller cause a State Certified Energy Rater to perform an energy efficiency rating on the Unit. Purchaser hereby releases Seller from any responsibility or liability for the accuracy or level of rating and Purchaser understands and agrees that this Contract is not contingent upon Purchaser approving the rating, that the rating is solely for Purchaser's own information and that Purchaser will pay the total cost of obtaining the rating. A copy of the Florida Building Energy-Efficiency Rating System brochure prepared by the Florida Department of Community Affairs in accordance with Section 553.996, Florida Statutes, is attached hereto as Exhibit "C" and incorporated herein by this reference. PURCHASER ACKNOWLEDGES RECEIPT OF THE ENERGY-EFFICIENCY RATING BROCHURE DISTRIBUTED BY THE STATE OF FLORIDA DEPARTMENT OF COMMUNITY AFFAIRS AND STATES THAT PURCHASER WAIVES THE OPPORTUNITY TO OBTAIN AN ENERGY- EFFICIENCY RATING ON THE UNIT. Seller is providing this disclosure statement to Purchaser in compliance with Sections 553.9085 and 553.996, Florida Statutes. This Disclosure Statement is intended for the sole and exclusive use of Purchaser for the transaction contemplated herein only and Seller shall not be liable or responsible to any third party who has relied upon the information contained herein. Purchaser acknowledges its receipt, review and understanding of this disclosure statement prior to, or at the time of, Purchaser's execution of this Contract. 15. RADON GAS DISCLOSURE: The following disclosure is required by Section 404.056(5), Florida Statutes (2003), for all contracts for sale and purchase of any building in Florida: "RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county health department." 16. MOLD DISCLAIMER: Whether or not you, as an owner of a Unit, experience mold growth depends largely on how you manage and maintain your Unit. An informational mold statement is attached hereto as Exhibit "G" and incorporated herein by this reference. Purchaser, by execution of this Contract, acknowledges that Seller will not be responsible for any damages caused by mold, including but not limited to, property damage, personal injury, loss of income, emotional distress, death, loss of use, loss of value, and adverse health effects. 17. COOPERATING BROKER: Unless a Cooperating Broker Addendum indicating otherwise is attached hereto, Purchaser represents to Seller that Purchaser has not consulted, dealt or negotiated with a real estate broker, salesperson or agent other than Seller's sales personnel. Purchaser agrees that Seller is not responsible for the payment of a commission to a real estate broker, salesperson or agent other than Seller's sales personnel and Purchaser agrees to indemnify and hold Seller harmless from and against any and all loss and liability, including attorneys' and paraprofessional fees and costs at all levels, resulting from or arising out of any representation or warranty set forth in this Section 18. Purchaser understands and agrees that this Section 18 shall survive the Closing and delivery of the Deed. - 8 - Purchaser's Initials . . . 18. NOTICE: Whenever a notice is required to be sent under the terms of this Contract, the notice will be deemed to have been properly given or served (a) when delivered in fact to the other party, (b) when delivered to and receipted for by a recognized air courier service (i.e., Federal Express, DHL), (c) by facsimile transmittal when transmitted by a mechanism capable of producing a confirmation of receipt, or (d) when deposited in the United States with adequate postage prepaid and sent by certified mail, return receipt requested, and in all events addressed to Purchaser at the address in this Contract and addressed to Seller at 2704 Via Murano, Clearwater, Florida, 33764. Notice may also be delivered by hand delivery if a receipt for same is obtained. All notices shall also be effective upon refusal or failure to accept delivery or otherwise. 19. RISK OF LOSS PRIOR TO CLOSING: Any loss and/or damage to the Condominium and/or the Unit between the date of this Contract and the date of the Closing will be at the Seller's sole risk and expense. Seller will have a reasonable time to complete repairs, but in no event will such time for repairs and subsequent date of the Closing extend beyond two (2) years after the date Purchaser signed this Contract. The work will be judged by the same standards used to evaluate new construction. Purchaser will have no right to any reduction in the Purchase Price, nor any claim against Seller by reason of the loss and/or damage, and agrees to accept title on the date scheduled for the Closing. 20. INTENTIONALLY OMITTED., 21. LIMITATIONS OF WARRANTIES: A. Purchaser shall have the right, pursuant to Section 21 above, to inspect the Unit and the common elements, if any, prior to the Closing. Purchaser hereby agrees that from and after the Closing, Purchaser shall not make or bril)g, and shall not support the bringing of such action by others, any claim or action whatsoever against Seller or Seller's agents with respect to the dimensions of the Unit or the common elements, the materials employed in the construction of the Unit or the common elements, or the quality of workmanship or the merchantability or fitness of the Unit or the common elements or fixtures or items of personal property sold pursuant to this Contract, or the merchantability or fitness thereof, except such claims or actions as may be permitted by Section 22.B. below. B. Purchaser acknowledges that at the time of execution of this Contract, Seller has no reason to know of any particular purpose of Purchaser in purchasing the Unit and items of personal property sold pursuant to this Contract other than for normal residential use. Purchaser acknowledges and agrees that the only warranties applicable to the Condominium and the Unit are those that may validly be imposed thereon by statutory law on the date thereof, as set forth in Section 718.203, Florida Statutes, as such section exists as of the date of this Contract (hereinafter referred to as "Sole Warranties"). Purchaser further acknowledges and agrees that, to the extent allowed by law, Seller makes no other express or implied warranties whatsoever in regard to the Unit, the common elements, any fixtures or items of personal property sold pursuant to this Contract or any other real or personal property whatsoever sold hereby. C. SELLER MAKES THIS WARRANTY EXPRESSLY IN LIEU OF ALL OTHER EXPRESS OR IMPLIED WARRANTIES CONCERNING THE UNIT SOLD OR TO BE CONSTRUCTED HEREUNDER AND .THE PROPERTY SOLD HEREUNDER OR PREVIOUSLY PURCHASED FROM SELLER. ANY OTHER REPRESENTATIONS, STATEMENTS OR PROMISES MADE BY ANY PERSON ARE UNAUTHORIZED AND ARE NOT BINDING UPON SELLER. ALL OTHER - 9- Purchaser's Initials . WARRANTIES WITH RESPECT TO THE UNIT, AND THE PROPERTY HEREUNDER ARE HEREBY DISCLAIMED, TO THE EXTENT PERMITTED BY LAW, WHETHER IMPLIED OR ARISING BY OPERATION OF LAW, COURSE OF DEALING, CUSTOM AND PRACTICE, OR OTHERWISE, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF HABITABILITY, MERCHANTABILITY, AND FITNESS FOR PARTICULAR PURPOSE; AND PURCHASER REPRESENTS THAT PURCHASER HAS READ AND UNDERSTOOD THIS PROVISION, AND THAT PURCHASER UNDERSTANDS AND AGREES THAT, BY ENTERING INTO THIS CONTRACT AND ACCEPTING THE BENEFITS OF THE LIMITED WARRANTY DESCRIBED ABOVE, PURCHASER HAS KNOWINGLY RELINQUISHED ANY AND ALL OTHER WARRANTIES OF ANY KIND OR NATURE REGARDING THE UNIT AND THE PROPERTY. D. Notwithstanding anything to the contrary in this Contract, Purchaser acknowledges and agrees that Seller shall be irreparably harmed if Purchaser undertakes the repair or replacement of any defective portion of the Unit, common elements, fixtures, items of personal property or any other real or personal property in connection with the Unit during the time in which the Sole Warranties remain in effect. Accordingly, Purchaser hereby agrees: (i) to promptly, upon Purchaser's knowledge of the existence of any such defective portion, provide written notice to Seller specifying each such defective portion, upon the receipt of which Seller shall have sixty (60) days (hereinafter referred to as "Repair Period") to commence to repair or replace such defective portion and diligently pursue the completion thereof; or (ii) not to repair, replace or otherwise adjust any such defective portion during the Repair Period; provided, however, that if Seller fails to commence the repair or replacement of such defective portion within the Repair Period, Purchaser may repair or replace same. If Purchaser fails to comply with the provisions of this Section 22.D.,Purchaser will be deemed to have breached Purchaser's obligation to mitigate damages and Purchaser's conduct shall constitute an aggravation of damages. E. It is hereby agreed that the maximum liability of Seller under the Sole Warranties shall be the replacement cost of the defective portion of the Unit, common elements, fixtures, items of personal property or to the real or personal property. Seller shall have the sole right to determine whether the defect shall be corrected by repair or replacement. In addition, at Seller's sole option, rather than repairing or replacing the defective item, Seller may pay Purchaser the amount by which the value of the Unit has decreased as a result of such defect. In no event shall Seller be liable to Purchaser, the Master Association or the Condominium Association or any other person or entity for consequential or exemplary damages, or for personal injuries arising from any breach of the Sole Warranties. . F. Purchaser hereby acknowledges that: (i) the Sole Warranties shall not apply if the defective portion of the Unit, common elements, fixtures or any other real or personal property has resulted from or been caused by, in whole or in part, the misuse of same (whether intentional or unintentional) by any person, firm or entity other than Seller or from an accident, casualty or physical alteration or modification; and (ii) the Sole Warranties are further conditioned upon routine maintenance being performed unless such maintenance is an obligation of Seller or a Seller controlled condominium association. G. The provisions of this Section 21 shall survive the Closing and delivery of the Deed. 22. PROSPECTUS: The documents required by Section 718.504, Florida Statutes (2003), to be provided by Seller to Purchaser are defined as the prospectus together with all exhibits thereto (sometimes referred to herein collectively as the "Condominium Documents"). Purchaser hereby acknowledges receipt of the Condominium Documents. Seller and Purchaser acknowledge that separate and apart from the provisions of this paragraph, Seller is obligated to obtain from Purchaser a Receipt for Condominium Documents (in accordance with Florida - 10- Purchaser's Initials . administrative rules) acknowledging receipt of the required Condominium Documents, and Purchaser agrees to . provide such Receipt upon delivery of such documents. 23. TIME: Time is of the essence for making all payments due pursuant to this Contract and for the Closing of this Contract. Time otherwise may be made of the essence by not less than five (5) days advance written notice. Any time period measured in "days" means consecutive calendar days, except that the expiration of any time period measured in days that expires on a Saturday, Sunday, or nationally observed legal holiday automatically will be extended to the next day that is not a Saturday, Sunday, or nationally observed holiday. 24. INTENTIONALLY OMITTED. 25. CONSTRUCTION FINANCING: Purchaser acknowledges that notices of commencement may be filed of record and that the Unit may be encumbered by mortgages at the time of the Closing, and agrees that the same shall not be an objection to title, it being understood that the Unit will be released from the liens of such notices and such mortgages at or prior to the Closing utilizing the proceeds of the Closing. Purchaser further acknowledges and agrees that to the extent permitted under applicable law (including, without limitation, Chapter 718 of the Florida Statutes), the lien of any mortgagees) granted by Seller to its lender(s) (whether or not such loans are made for the purpose of construction financing) on the Unit or the Condominium shall be superior in right and priority to any lien of Purchaser as vendee or otherwise (which, in the event of such lien, shall be subordinate to those of anyone holding a mortgage that secures the advancement of construction funds, even if the mortgage (or modifications) are made or recorded after the date of this Contract) and that this provision shall be self-operating, not require execution and delivery of additional documents and be for the benefit of Seller and any such lenders; provided, however, this provision shall not affect Seller's obligation to obtain release of such mortgagees) at the Closing with respect to the Unit. . 26. MULTIPLE PURCHASERS: If two (2) or more persons are named as Purchaser herein, anyone (I) of them is authorized to act as agent for, with the right to bind, the other(s) in all matters and of every kind and nature with respect to this Contract. If the Purchaser is married, and the Purchaser's spouse is not named as a Purchaser herein, Purchaser shall be responsible and liable for such spouse executing the mortgage and other Closing documents as required by lender and Seller. Failure of said spouse to do so shall constitute a default hereunder by Purchaser. 27. SELLER'S BUSINESS ORGANIZATION: Purchaser hereby expressly acknowledges and agrees that (a) a conversion by Seller of its form of business organization, (b) a merger by Seller with any entity(ies) with the Seller being the surviving entity of such merger, or (c) change of Seller's name or any or all of the above in combination, shall not be deemed to be a material or adverse change. 28. MISCELLANEOUS PROVISIONS: A. Entire Agreement: This Contract, together with all exhibits, constitutes the entire agreement between Purchaser and Seller with respect to the transaction contemplated herein. All prior - II - Purchaser's Initials . . . . understandings are superseded by and merged into this Contract. Except as provided in Section 718.506, Florida Statutes, no oral representations, advertising, promotional activities, maps, artists' renderings, conceptual presentations or otherwise, made by Seller or Seller's agents shall in any way be binding on Seller and will be of no force or effect unless expressly set forth in this Contract as to either the Condominium property or the Unit including, without limitation, the workmanship and materials. Purchaser represents that Purchaser has not relied on any verbal or written statements, published by or under the authority of Seller in any advertising or promotional matter including, but not limited to, brochures, newspapers, and radio or television advertising, but has based Purchaser's decision to purchase on personal investigation, observation and review of the Condominium Documents. This paragraph shall survive the Closing contemplated herein and the delivery of the Deed to Purchaser. B. Contract not Recordable: No Lien Rights: Persons Bound: and Notice: Neither this Contract nor any notice of it shall be recorded in any Public Records; to do so is a substantive breach of this Contract. Execution of this Contract shall not create any lien or lien right in favor of Purchaser against the Unit or the Condominium, Purchaser hereby expressly waiving and relinquishing any such lien or lien rights. This Contract shall bind and inure to the benefit of the parties hereto and their successors in interest, heirs and assigns: Notice given by or to the attorney for either party shall be as effective as if given by or to that party. C. Invaliditv: In case anyone or more of the provisions contained in this Contract shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, the invalidity, illegality, or unenforceability shall not affect any other provision, and this Contract shall be construed as if such invalid, illegal or unenforceable provision had never been contained in this Contract. D. Applicable Law: This Contract and all documents executed pursuant to it shall be interpreted, construed, applied, and enforced in accordance with and governed by the laws of the State of Florida, regardless of where executed, delivered, performable or breached, or the venue of any suit or other proceeding involving this Contract is instituted or pending, or whether the laws of the State of Florida otherwise would apply the laws of another jurisdiction. E. Attornevs' Fees and Costs: In connection with any alternative disp.ute resolution proceedings or litigation, including appellate proceedings, arising out of this Contract, the prevailing party shall be entitled to recover from the other party reasonable attorneys' fees and costs at trial, bankruptcy court and all appellate levels. F. Captions: Captions of the paragraphs and subparagraphs of this Contract are for the convenience of reference only, are not to be considered a part hereof and will not limit nor otherwise affect any of the terms hereof. G. Amendments: This Contract and the instruments and documents referred to herein and made a part hereof as if fully set forth herein constitute the full, final and complete agreement between the parties and no oral representations, claims, statements, advertising, or promotional activities made by Seller or Seller's agents or representatives shall in any way be binding upon Seller unless expressly set forth in a written agreement addendum executed by Seller. Seller reserves the right to modify or amend the Condominium Documents and Purchaser shall receive a copy of any such amendment(s) made. Nothing contained herein'shall require Seller to secure Purchaser's approval of any change in the prices or terms upon which Seller may sell the remaining units. Without limiting the generality of the foregoing and other provisions of this Contract, Seller is specifically authorized to substitute the final legal descriptions, plot plans, and as-built surveys for the proposed legal descriptions and plot plans contained in the Condominium Documents even though changes occur in the permitting stage and during construction. Purchaser specifically grants authority to Seller to file in the Public Records of Pinellas County, Florida - 12- Purchaser's Initials <- . BEFORE THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA IN RE: PROPOSED ORDINANCE PURSUANT ) TO SECTION 190.005(2), FLORIDA STATUTES, ) TO ESTABLISH THE CLEARWATER CAY ) COMMUNITY DEVELOPMENT DISTRICT ) ) TESTIMONY OF T. Gardner Bavless III, P.E. FOR CLEARWATER CAY COMMUNITY DEVELOPMENT DISTRICT 1. Please state your name and business address. My name is T. Gardner Bayless III and my business address is 5300 West Cypress, Suite 200, Tampa, Florida 33607. 2. By whom are you employed and in what capacity? I am employed by PBS&J as a Professional Engineer. 3. How long have you been a Professional Engineer? . I have been a Professional Engineer since February 1990. 4. Please describe your duties as a Professional Engineer and with PBS&J. I am the Project Manager and Engineer of Record I have been in charge of various residential and commercial projects, including the redevelopment project within the proposed Clearwater Cay Community Development District. In this role, I have managed a variety of development projects from less than an acre to more than 100 acres in size. In addition, I have managed design and permitting of many municipal projects. As a Project Manager, I have been responsible for developing cost estimates and budgets for owner financing and municipal bond issues. 5. Please give your educational background, with degrees earned, major areas of study and institutions attended. I obtained a Bachelor's degree in Civil Engineering from the University of South Florida in 1984 and a Master's degree in Civil Engineering in 1991. 6. Do you have any professional licenses, registrations, or certifications? . .. . Yes. I am a practicing Registered Professional Engineer, Florida # 42471. 7. Are you a member of any professional associations? Yes, the National Society of Professional Engineers, The Florida Engineering Society, The American Society of Civil Engineers and the American Public Works Association. 8. Please summarize your previous experience as it relates to public facility design and construction. I have extensive experience in the design of roadways, related stormwater management systems, sanitary sewer collection, and transmission systems, potable water, reuse water systems (treated effluent) and similar systems associated with public infrastructure design and construction I have designed or supervised the design and permitting of many such systems along the West Coast of Florida. 9. Have you been involved in any developments of the type and nature contemplated within the Clearwater Cay Community Development District (the "District")? . Yes. I have been involved in several developments which contain similar necessary public infrastructure facilities utilizing my expertise in the design, permitting and construction of similar systems. 10. Are you familiar with the Petition filed by DC703, LLC for the establishment of the Clearwater Cay Community Development District? Yes, I am. My firm assisted the Petitioner with the preparation of cost estimates and exhibits used in the Petition. 11. Are you generally familiar with the geographical area, type, and scope of development and the available services and facilities in the vicinity of the proposed District? Yes, I am. My firm has been involved with the proposed CDD development during which time I have made several field visits to the site and have evaluated the portions of the infrastructure systems (Le., roads, surface water, water and sewer systems). 12. Did you prepare or have others prepare under your supervision, any of the exhibits attached to the Petition? Yes, I did. . ... . 13. Which exhibits did you prepare or have others prepare under your supervision? Exhibits A, B, E, F, portions of Exhibit H and the detail costs that were the basis for the exhibits attached to the Petition were prepared by my firm. 14. Do any of those exhibits require any change or correction? If so, please specify the exhibit number, and the page and line number of the change or correction? Not to my knowledge. 15. Are Exhibits A, B, E, F and H to the Petition true and correct? As they have been supplemented or substituted in the Petition as previously described, they are to the best of my knowledge and belief true and correct. 16. In general, what does Exhibits A, B, E, F and H to the Petition demonstrate? . Exhibit A - is a Clearwater Cay Community Development District Survey. Exhibit B - is a legal description of the land comprising the Clearwater Cay Community Development District. Exhibit E - are maps showing current major trunk water mains, sewer interceptors and outfalls. Exhibit F - is the Clearwater Cay Community Development District Preliminary Infrastructure Cost Opinion. Exhibit H - are maps (including Aerial, Water Park, Overall Master Plan, Site Plan, Future Land Use, Zoning and narrative (by others)) 17. What capital facilities are presently expected to be provided by the District? . I presently expect the District to provide facilities and services which include roadways, streets and associated surface water management facilities, utilities, landscaping and entry features, and parking and recreational facilities. A variety of recreational and waterfront improvements will be constructed that include tennis/volleyball courts, a water park, waterfront theater, fountains, flower garden, docks, wharfs and promenades, bridges, pools, a gazebo, and landscaping. The road and utilities are part of an access system to and through the District's land. Landscaping improvements to the roadways are proposed to visually ~ . integrate the constructed systems with the District's unique physical features. 18. In your professional opinion, are the construction cost estimates for the proposed facilities for the District reasonable? Yes. 19. Based upon your training and experience as a professional engineer, do you have an opinion as to whether the proposed District is of sufficient size, sufficient compactness, and sufficient contiguity to be developable as a functional interrelated community? Yes. The proposed District is of sufficient size, compactness and contiguity to be developed as a functional interrelated community. 20. What is the basis for your opinion? The District has an identifiable need for specific public infrastructure improvements. The planned infrastructure is an interconnected segment of the regions services (roads and utilities), which combine to create a contiguous, homogenous and effevtive method of providing access and services to the lands within the District. . 21. Do you have an opinion as a professional engineer as to whether the services and facilities to be provided by the proposed District will be compatible with the capacities and uses of existing local and regional community facilities and services? Yes. It is my opinion that the services and facilities to be provided by the District are compatible with the capacities and uses of existing local and regional community facilities, and with those proposed to be provided by the District. 22. What is the basis for your opinion? It is my opinion that the services and facilities to be provided by the proposed District are not currently provided. Furthermore, the services and facilities to be provided by the proposed District will not be duplicative. The District has specific infrastructure needs and the planned services and facilities primarily provide for new development within the District and will not be duplicative or inefficient. . .. $ , . . . 23. As a professional engineer, do you have an opinion as to whether the proposed District is among the best alternatives to provide community development services and facilities to the areas that will be served? Yes, I do. 24. What is your opinion? The community development district approach is among the best alternatives for providing necessary community development services and facilities to the area to be served within the proposed district. 25. What is the basis for your opinion? The District may contract for professional technical staff capable of overseeing the design, permitting and construction of necessary capital improvements for development of the area. 26. Does that conclude your testimony? Yes. FURTHER YOUR AFFIANT SAITH NOT. ~~ g~l', / ---- STATE OF FLO,DA I COUNTY OF -///.j!J~RolJj 11 Sworn to (or affirmed) and ...s~Y"*"..q pc/" ,2005, by Mr. , -.11 sub . ed b re me this I day of --< . /'" ;: IT f)!(i)lvER 8f1!J/.f!J!> Jf' r. tULlMA-Id tfkt Signature of Notary Public bUI6/ieft- [, fj T 7 Print Notary Name My Commission Expires: / /- / J - ()g Commission No.: ])i)3f;3~ '7 / )Q Personally known, or o Produced Identification Type of Identification Produced """'1 ,," ~ l. 0" " A~ . . . '. )'0')"., ~ LLV. · ~&\ON ~ · .,. , ~.;:F · ~~ ~~.., - .~ · 0' tS'." -Ill. ~ ..I\I\P, ....- - · ::I (\&:""'- · <C( · - · ~'1e~._____ l!!'I::j_ .. · ~ 21'\ ~.i!C- _~ · ~/~~1J~t.:tf~' 0_ ~~. ~!x~MP ','-'II} · ':-:a~ -A '\).,.. " "'PuaJC.S\~'~' "'1'" . . . prior to Closing, all papers required to be filed by Florida Statutes in order to legally create and maintain the existence of the Condominium, the Condominium Association, including, but not limited to, the Declaration, the Articles ofIncorporation and Bylaws of the Association. This Section 29.G. will survive Closing and delivery of the Deed. H. Indemnification: "Indemnify" means that the indemnitor will defend, indemnify and hold the indemnitee harmless from and against any and all claims, demands, losses, liabilities including strict liability, damages, injuries, and expenses, including attorneys' fees for attorneys of the indemnitee's choice, costs of any settlement or judgment and claims of any and every kind whatsoever paid, incurred or suffered by, or asserted against the indemnitee by any person or entity or governmental agency for, with respect to, or as a direct result of the subject matter of the indemnity. The scope of any indemnity includes any costs and expenses, including reasonable attorneys' fees incurred in defending any indemnified claim or in enforcing the indemnity or both. Any express indemnities contained in this Contract survive the Closing of the transaction contemplated herein. I. Venue: Purchaser waives any and all privileges and rights which it may have under Chapter 47, Florida Statutes, relating to venue, as it now exists or may hereafter be amended, and any comparable statute or administrative provision; and Purchaser further agrees that any legal action brought on this Contract shall be brought in the appropriate forum in PinellasCounty, Florida. 1. No Liens: Prior to the Closing, Purchaser shall not place nor allow any lien to be placed on the Unit and/or the Condominium. K. Waiver: The waiver of one or more defaults by any party to this Contract shall not be deemed a waiver of any subsequent default of that provision of this Contract or default under any other provision of this Contract. No waiver of the benefit of any provision of this Contract will be effective unless made in writing, signed by the party to be charged; and no such waiver is a waiver of any future event, unless it expressly so states. L. Sales Activities: Purchaser acknowledges that Seller or a company or other entity affiliated with Seller (including Resort Lot Owner) shall have the right to utilize all of the common elements of the Condominium, all Master Association property (including roadways and recreational facilities), and all Shared Facilities, and any models and/or sales office located or to be located in Clearwater Cay Community, and/or the Condominium in connection with the sale or lease of dwelling units in this or in other projects or developments in the Clearwater Cay Community. M. Payment by Broker: By the execution hereof, Purchaser directs Broker to pay to Seller all monies received under this Contract by Broker prior to or at the Closing. N. Purchaser Representations: Purchaser acknowledges and agrees that the representations made to Seller hereunder are a material inducement to Seller to enter into this Contract and that such representations shall survive the Closing. O. Counterparts: This Contract may be executed in two or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. P. Gender: The use of the singular includes the plural, the use of the male includes female and neuter and visa versa. Q. Facsimile: A facsimile (FAX) signature will be deemed to be an original. Offer and acceptance by facsimile is binding. - 13 - Purchaser's Initials . R. Construction: This Contract and all related documents, including, without limitation, the Deed, will not be construed more strongly against any party regardless of who was more responsible for its preparation. S. Survival: All terms, conditions, covenants and agreements contained in this Contract, if the fulfillment of their purpose(s) require(s), shall survive the Closing and be binding on Seller and Purchaser and any subsequent purchaser of the Unit. T. Conflict Regarding Unit Configuration. Size and Layout: In the event that the configuration, size or layout of the Unit as depicted on any sales materials or brochures differs from or conflicts with the configuration, size or layout of the Unit as depicted on the Condominium Documents, the configuration, size and layout of the Unit as depicted on the Condominium Documents shall control. U. Effective Date: As used herein, the term "Effective Date" shall mean and refer to the date this Contract is executed by Seller. W. Joint and Several Liability: If more than one person or entity constitutes "Purchaser", then in such case all obligations of Purchaser under this Contract shall be joint and several obligations of each person or entity constituting Purchaser. X. Amendments Required by Division: If the Florida Division of Land Sales, Mobile Homes and Condominiums requires any amendment to this Contract, or in an amendment is required to comply with the applicable law, Purchaser hereby consents to such amendment. 29. INTENTIONALLY OMMITTED. 30. MASTER ASSOCIATION AND CONDOMINIUM ASSOCIATION: . By purchasing the Condominium, Purchaser automatically becomes a member of the Master Association and the Condominium Association. The Master Association is responsible for the common areas of the Clearwater Cay Community. For further information regarding common areas of the Clearwater Cay Community, Purchaser should refer to the text of the Master Declaration. For further information regarding the common areas of the Condominium, Purchaser should refer to the Condominium Declaration. Purchaser acknowledges and understands that Purchaser will be required to pay assessments to the associations described above, and that in the event Purchaser defaults in payment of the assessments, such entity will have a lien on Purchaser's Unit, which lien may be foreclosed in the manner prescribed by law for the foreclosure of mortgages. The Homeowners' Association Disclosure Form required by Section 720.401, Florida Statutes, to be executed by Purchaser is attached hereto as Exhibit "0" and incorporated herein by this reference. PURCHASER SHOULD NOT EXECUTE THIS CONTRACT UNTIL PURCHASER HAS RECEIVED AND READ THE DISCLOSURE SUMMARY. Pursuant to Section 720.401 (I )(b), Florida Statutes, the following disclosure is hereby provided: IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 720.401, FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE PROSPECTIVE PURCHASER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT IS VOIDABLE BY PURCHASER BY DELIVERING TO SELLER OR SELLER'S AGENT OR REPRESENTATIVE WRITTEN NOTICE OF THE PURCHASER'S INTENTION TO CANCEL WITHIN 3 DAYS AFTER RECEIPT OF THE DISCLOSURE SUMMARY OR PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. ANY PURPORTED WAIVER OF THIS VOIDABILITY RIGHT HAS NO EFFECT. PURCHASER'S RIGHT TO VOID THIS CONTRACT SHALL TERMINATE AT CLOSING. - 14- Purchaser's Initials . . . . This provision shall survive the Closing and the execution and delivery of the Deed. 3\. CLEARWATER CAY CLUB In addition to membership within the Master Association and the Condominium Association, each Unit has a mandatory membership in the Clearwater Cay Club, which is a non-equity membership deposit club ("Club") pursuant to the Plan for the Offering of Memberships in Clearwater Cay Club ("Club Plan"). The Club Plan outlines the terms pursuant to which the Master Association may purchase the Club and how Club Dues and Fees increase. At this time the Club Owner is CC701, LLC, a Florida limited liability company. Purchaser is further advised as folIows: 31.1 Club Owner has constructed or will construct, at its sole cost and expense, certain recreation facilities as described in the Club Plan together with such other equipment, facilities and personalty as Club Owner determines in its sole discretion. 31.2 Club Facilities (as defined in the Club Plan) may be added, modified or deleted from time to time in accordance with the Club Plan. 31.3 The Club shalI be used and enjoyed by the Purchaser, on a non-exclusive basis, in cOlnmon with such other persons, entities, and corporations that may be entitled to use the Club under the terms in the Club Plan. The number of users or members of the Club may be increased from time to time. 31.4 Purchaser acknowledges that the Club Plan provides that each Purchaser becomes directly liable for the Club Dues, including the Club Fees and initial Club contribution to be paid to the Club Owner, all as set forth in the Club Plan. Purchaser acknowledges receipt of the Estimated Annual Operating Budget attached as Exhibit "3" to the Prospectus, which specificalIy discloses the initial Club contribution. Purchaser acknowledges that alI sums due pursuant to the Club Plan in regard to the Club are direct obligations of Purchaser. 31.5 By accepting a Deed to a Unit, Purchaser acknowledges that: (i) it is in the best interest of Purchaser, Master Association, Condominium Association and Clearwater Cay Community, as a whole, and property values therein, to provide for the Club to be located within Clearwater Cay Community; (ii) the terms of the Club Plan relating to the Club and the Club Dues imposed thereby, including the Club Fees and Dues, are fair and reasonable given the nature of the Club amenities provided and the cost thereof; (iii) there were significant other housing opportunities available to the Purchaser in the general location of Clearwater Cay Community, both with and without a Club; (iv) the Club, and the right to use the Club were, for purposes of this acknowledgment, important to the Purchaser and Purchaser would not have purchased the Unit without the right to use the Club; (v) full disclosure of the nature of the Club and obligations associated therewith was included in the Club Plan given to Purchaser prior to Purchaser executing the Contract; (vi) the fact that the Club Owner is affiliated with the Seller, is acknowledged; (vii) the provisions of the Club Plan do not grant any ownership rights in the Club in favor of the Master Association, the Resort Lot Owner, the Condominium Association or Purchaser but, rather, grant a non-exclusive license to use the Club subject to full compliance with alI obligations imposed on each of them relating thereto; and (viii) the Club Plan may be amended or modified from time to time. 31.6 By initialing at the end of this page, Purchaser acknowledges that Purchaser must apply for membership and must be accepted as a member of the Club prior to the date of Closing. Purchaser will accept alI liabilities and obligations of membership in the Club, including payment of the membership contribution, and all fees and dues due to the Club pursuant to the Club Plan. Purchaser further acknowledges and agrees that the current Club Plan may be revised from time to time. - 15 - Purchaser's Initials . . . 31.7 Purchaser may, at Purchaser's option, apply for use of a dock slip in accordance with the Club Plan. Purchaser acknowledges that Purchaser's acceptance to membership in the Club or use of a dock slip is not guaranteed by this Contract and is subject to Purchaser's separate applications to the Club and acceptance under established membership procedures and criteria. Purchaser acknowledges that, by purchasing or paying for the Unit, or by acquiring membership in the Association, Purchaser does not acquire any vested right or easement, prescriptive or otherwise, to use the Club facilities or the dock slips, nor does Purchaser acquire any ownership or membership interest in the Club facilities or the dock slips. Membership fees and dues for the Club and use of the dock slips are separate from and in addition to any sums due under this Contract and are the responsibility of Purchaser. Purchaser acknowledges that no representations have been made to Purchaser regarding the use of the Club facilities or the dock slips, now or in the future. Notwithstanding anything contrary in this Contract or any Addendum thereto, Seller agrees that if Purchaser's application to the Club is refused for any reason whatsoever, other than Purchaser's misleading or false statements on his/her Club application, all Deposits hereunder shall be promptly returned to Purchaser. 32. RESORT LOT OWNER: By purchasing the Condominium, Purchaser acknowledges that many, if not all of the areas of the Building which would normally be considered common elements in a traditional condominium, e.g., hallways, stairs, parking areas, are instead part of the Resort Lot (and not part of the Condominium) and are "Shared Facilities". The Resort Lot Owner has the maintenance responsibility for the Shared Facilities pursuant to the Resort Declaration, and Resort Lot Owner will charge Purchaser and the other Unit Owners for the maintenance of the Shared Facilities. Additionally, Resort Lot Owner, or its assignee or designee, may provide certain Basic Resort Services upon the Shared Facilities and to the Unit Owners. Resort Lot Owner will charge assessments to Purchaser for such Shared Facilities Expenses and Basic Resort Services. Failure of Purchaser to pay such assessments when due may result in Resort Lot Owner levying fines against Purchaser and Resort Lot Owner will have a lien on Purchaser's Unit for such assessments, which lien may be foreclosed in the manner prescribed by law for the foreclosure of mortgages. 33. CONSTRUCTION INDUSTRIES RECOVERY FUND: Pursuant to Section 489.1425 of the Florida Statutes, Seller provides the following notice. PAYMENT MAY BE AVAILABLE FROM THE CONSTRUCTION INDUSTRIES RECOVERY FUND IF YOU LOSE MONEY ON A PROJECT PERFORMED UNDER CONTRACT, WHERE THE LOSS RESULTS FROM SPECIFIED VIOLATIONS OF FLORIDA LAW BY A STATE LICENSED CONTRACTOR. FOR INFORMATION ABOUT THE RECOVERY FUND AND FILING A CLAIM, CONTACT THE FLORIDA CONSTRUCTION INDUSTRY LICENSING BOARD AT THE FOLLOWING TELEPHONE NUMBER AND ADDRESS: (904) 727-6530, 7960 ARLINGTON EXPRESSWAY, SUITE 300, JACKSONVILLE, FLORIDA 32211. 34. INCENTIVE PROGRAMS: Purchaser acknowledges that at various times, Seller or its affiliates adopts incentive programs with its affiliated brokerage entity, Cristal Clear Realty, LLC, under which the agents of such affiliated brokerage entity receive bonuses in addition to commissions for sales of lots or single family residences constructed by Seller or its affiliates or for sales of residences in condominiums constructed and/or developed by Seller or its affiliates, which may include the Unit. - 16- Purchaser's Initials . . . 35. NO REPRESENTATIONS; NO RELIANCE: Other than as expressly set forth below, no person, including any sales agent of Cristal Clear Realty, LLC or any other real estate brokerage firm, is authorized to make any representations or to provide any information with regard to any of the matters contained in this Contract, which are contrary to or in addition to the information contained in this Contract or in the applicable or related Condominium Declaration, as amended. PURCHASER ACKNOWLEDGES, REPRESENTS AND WARRANTS TO SELLER THAT, EXCEPT AS OTHERWISE EXPRESSLY SET FORTH BELOW, NO SUCH REPRESENTATIONS HAVE BEEN MADE TO (OR, IF MADE, HAVE NOT BEEN RELIED UPON BY) PURCHASER OR BY ANY OTHER PERSON OR ENTITY AND FURTHER THAT PURCHASER HAS NOT RELIED ON ANY REPRESENTATIONS, NEWSPAPER, RADIO OR TELEVISION ADVERTISEMENTS, WARRANTIES, STATEMENTS, OR ESTIMATES OF ANY NATURE WHATSOEVER, WHETHER WRITTEN OR ORAL, MADE BY SELLER, SALES PERSONS, AGENTS, OFFICERS, EMPLOYEES, COOPERATING BROKERS (IF ANY) OR OTHERWISE EXCEPT AS HEREIN AND IN THE CONDOMINIUM DOCUMENTS SPECIFICALLY SET FORTH. PURCHASER HAS BASED PURCHASER'S DECISION TO PURCHASE THE UNIT SOLELY ON THE REPRESENTATIONS DESCRIBED BELOW, IF ANY, PERSONAL INVESTIGATION, OBSERVATION AND THE CONDOMINIUM DOCUMENTS, THE MASTER DOCUMENTS AND THE CLUB PLAN. . Purchaser is relying upon the following additional representations that have been made to Purchaser by Seller and/or its agents concerning the Unit, the Condominium and Clearwater Cay Community within which the Condominium is located: PURCHASER'S INITIALS: Purchaser's representation and warranty above that it has not received or relied upon any other representations with respect to the Unit, the Condominium or Clearwater Cay Community within which the Condominium is located, other than as expressly set forth above, is a material inducement for Seller's acceptance of Purchaser's offer contained herein and such representation and warranty constitutes a substantial aspect of the consideration delivered to Seller by Purchaser for the purchase of the Unit. 36. SELLER'S RIGHT TO RE-PLA TOR RE-CONFIGURE UNITS: Prior to the recording of the Condominium Declaration, Seller reserves the right to unilaterally amend the plan of development, re-plat or re-plan portions of the Condominium, so long as such amendment, re-platting, or re-configuring does not materially and adversely affect the Unit or Purchaser. If Seller shall request that Purchaser join in any documents necessary to carry out the intent of this Section 36, Purchaser will promptly execute and deliver such consents and joinders in such form as Seller reasonably requires. The provisions of this Section 36 shall survive the Closing. 37. ACCEPTANCE: This Contract, as executed by Purchaser and delivered to Seller, together with the delivery of the Initial Deposit to the Escrow Agent, constitutes Purchaser's offer to purchase the Unit. Purchaser's offer shall only be accepted by Seller's execution of this Contract. Purchaser must sign and deliver this Contract to Seller, and pay the Initial Deposit to the Escrow Agent, all on or before the _ day of '-' 38. ADDENDUM OR RIDER: - 17 - Purchaser's Initials . . . Any rider or addendum to this Contract will be deemed to be incorporated into this Contract as fully as if it were set forth at length herein. The terms and provisions of any such rider or addendum will control those of this Contract, but only to the extent necessary to give them full effect. No such rider or addendum to this Contract shall be binding or effective unless and until executed by both Purchaser and Seller. 39. BUYER'S RIGHT TO CANCEL PURSUANT TO FLORIDA CONDOMINIUM ACT. THIS CONTRACT IS VOIDABLE BY PURCHASER BY DELIVERING WRITTEN NOTICE OF THE PURCHASER'S INTENTION TO CANCEL WITHIN FIFTEEN (15) DAYS AFTER THE DATE OF EXECUTION OF THIS CONTRACT BY THE PURCHASER, AND RECEIPT BY PURCHASER OF ALL OF THE ITEMS REQUIRED TO BE DELIVERED TO HIM OR HER BY THE DEVELOPER UNDER SECTION 718.503, FLORIDA STATUTES. THIS CONTRACT IS ALSO VOIDABLE BY PURCHASER BY DELIVERING WRITTEN NOTICE OF THE PURCHASER'S INTENTION TO CANCEL WITHIN FIFTEEN (15) DAYS AFTER THE DATE OF RECEIPT FROM THE DEVELOPER OF ANY AMENDMENT WHICH MATERIALLY ALTERS OR MODIFIES THE OFFERING IN A MANNER THAT IS ADVERSE TO THE PURCHASER. ANY PURPORTED WAIVER OF THESE VOIDABILlTY RIGHTS SHALL BE OF NO EFFECT. PURCHASER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN FIFTEEN (15) DAYS AFTER THE PURCHASER HAS RECEIVED ALL OF THE ITEMS REQUIRED. PURCHASER'S RIGHT TO VOID THIS CONTRACT SHALL TERMINATE AT CLOSING. 40. COMMUNITY DEVELOPMENT DISTRICT. THIS UNIT MAY BECOME PART OF A COMMUNITY DEVELOPMENT DISTRICT. A COMMUNITY DEVELOPMENT DISTRICT IMPOSES TAXES OR ASSESSMENTS, OR BOTH TAXES AND ASSESSMENTS, ON THIS UNIT THROUGH A SPECIAL TAXING DISTRICT. THESE TAXES AND ASSESSMENTS PAY THE CONSTRUCTION, OPERATION AND MAINTENANCE COSTS OF CERTAIN PUBLIC FACILITIES AND SERVICES OF THE DISTRICT AND ARE SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES AND ASSESSMENTS ARE IN ADDITION TO ALL OTHER TAXES AND ASSESSMENTS PROVIDED FOR BY LAW. ANY PAYMENT IN EXCESS OF 10% OF THE PURCHASE PRICE MADE TO THE DEVELOPER PRIOR TO CLOSING PURSUANT TO THIS CONTRACT MAYBE USED FOR CONSTRUCTION PURPOSES BY THE DEVELOPER. SELLER: DC703, LLC, a Florida limited liability company PURCHASER(S): By: Print Name: David Schwarz Title: Manager Address: c/o David Schwarz 2704 Via Murano Clearwater, Florida 33764 Tel: (727)531-2525 Fax: (727)531-5121 Print Name: Print Name: - 18 - Purchaser's Initials . . . Date signed by Seller: December _, 2004 ("Effective Date") - 19- Date signed by Purchaser: Purchaser's Initials . EXIDBIT "C" [Consent and Joinder, Affidavit to Authorize, and Buyer Acknowledgement] . . . CONSENT AND JOINDER TO SEEK GOVERNMENTAL APPROVALS AND PETITION TO ESTABLISH COMMUNITY DEVELOPMENT DISTRICT hereby agrees and consents with respect to the property described below (1) to the establishment by Seller and/or its assigns of a community development district with authority to exercise all special and general powers upon the lands described below, pursuant to Chapter 190, Florida Statutes, and (2) the Seller and/or its assigns and agents applying for, seeking and obtaining any federal, state, and/or local land use, development, construction, environmental, or governmental approvals, permits, orders, decisions, and/or consents (collectively "approvals") deemed necessary by Seller. LEGAL DESCRIPTION [See attached Exhibit "A"] PROPERTY ADDRESS: . STATE OF FLORIDA COUNTY OF The foregoing instrument was acknowledged before me this _ day of , 2005 by , who is personally known to me or who has produced as identification. Signature of Notary Printed Name of Notary Commission Expires: . . EXHIBIT "A" LEGAL DESCRIPTION A tract of land lying within Section 20 and 29, Township 29 South, Range 16 East, Pinellas County, Florida and being more particularly described as follows: . Commence at the Southwest corner of said Section 20; thence along the South line of Section 20, South 89019'48" East, for 721.40 feet; thence South 00027'22" East, for 43.51 feet to the Point of Beginning, said point also being a point of intersection with a non-tangent curve concave to the South; thence Easterly along the arc of said curve with a radial bearing South 00027'51" East, having a radius of 35.00 feet, a central angle of 1405r42", an arc length of 9.08 feet and a chord bearing South 83002'00" East, for 9.05 feet to the point of reverse curvature with a curve concave to the North; thence Easterly along the arc of said curve, having a radius of 35.00 feet, a central angle of 13043'39", an arc length of 8.39 feet and a chord bearing South 82027'58" East for 8.37 feet to the point of tangency; thence South 89019'48" East for 111 .84 feet to the point of intersection with a non-tangent curve concave to the Northwest; thence Easterly along the arc of said curve with a radial bearing North 00040'13" East, and having a radius of 55.50 feet, a central angle of 118044'10", and arc length of 115.01 feet and a chord bearing North 31018'08" East, for 95.51 feet to the point of intersection with a non-tangent curve concave to the Northeast; thence Southeasterly along the arc of said curve with a radial bearing North 61056'04" East, and having a radius of 15.00 feet, a central angle of 46010'01 ", an arc length of 12.09 feet and a chord bearing South 51008'57" East, for 11.76 feet to the point of compound curvature with a curve concave to the North; Thence Easterly along the arc of said curve, having a radius of the 125.00 feet. A central angle of 56040'40", an arc length of 123.65 feet and a chord bearing North 7r25'43" East, for 118.67 feet to the point of reverse curvature with a curve concave to the Southeast; Thence Northeasterly along the arc of said curve, having a radius of 303.00 feet, a central angle of 00031'45", an arc length of 2.80 feet and a chord bearing North 49021'15" East, for 2.80 feet of the point of intersection with a non- tangent line; Thence North 40022'52" West, for 14.84 feet to the point of intersection with a non-tangent curve concave to the Northwest; Thence Northeasterly along the arc of said curve with a radial bearing North 40043'39" West, and having a radius of 74.87 feet, a central angle of 02040'04", an arc length of 3.49 feet and a chord bearing North 4r56'19" East, for 3.49 feet to the point of reverse curvature with a curve concave to the Southeast; Thence Northeasterly along the arc of said curve, having a radius of 234.00 feet, a central angle of 34019'10", an arc length of 140.16 feet and a chord bearing North 63045'52" East, for 138.08 feet to the point of tangency; Thence North 80055'27" East, 97.25 feet; Thence North 56001 '58" East, for 40.45 feet; Thence North 78050'41" East, for 127.14 feet; Thence South 78023'09" East, for 24.44 feet; Thence South 11052'40" East, for 9.10 feet: Thence North 79023"05" East, for 49.80 feet; thence North 10051 '19" West, for 10.82 feet; Thence North 420 27'28" East, for . . 66.53 feet; thence North 35048'02" East, for 134.85 feet; Thence East, for 67.34 feet; Thence South 38008'04" East, for 12.67 feet; Thence East, for 68.14 feet; Thence North 54'10"51 East, for 17.03 feet; Thence East, for 96.27 feet; Thence North 55005'18" East, for 63.64 feet; Thence East, for 25.42 feet to the point of curvature of a curve concave to the North; Thence Easterly along the arc of said curve, having a radius of 64.00 feet, central angle of 39042'28" an arc length of 44.35 feet and a chord bearing North 70008'46" East, for 43.47 feet to the point of reverse curvature with a curve concave to the South; Thence Northeasterly along the arc of said curve, having a radius of 58.00 feet, a central angle of 36055'37, an arc length of 73.38 feet and a chord bearing North 68045'21" East, for 36.74 feet to the point of reverse curvature with a curve concave to the Northwest; Thence Easterly along the arc of said curve, having a radius of 54.00 feet, a central angle of8r13'09", an arc length of 82.20 feet a chord bearing North 43036'34" East, for 74.49 feet to the point of tangency; Thence North, for 189.83 feet; Thence South 89019'09" East, for 779.97 feet; Thence South 60000'00" West, for 1333.52 feet; Thence South 89019'48" East for 209.91 feet; thence South 24054'45" West, for 343.41 feet to the point of intersection with a non-tangent curve concave to the Southeast; Thence Southwesterly along the arc of said curve with a radial bearing South 52036'11" East having a radius of 1577.45 feet, a central angel of 13022'27", an arc length of 368.22 feet and a chord bearing South 30042'35" West, for 367.38 feet to the point of intersection with a non-tangent line; Thence North 89004'26" West, for 829.18 feet; Thence North 00027'22" West for 584.06 feet to the Point of Beginning. TOGETHER WITH a non-exclusive easement for a purposes of ingress, egress and utilities as set forth in grant of easement recorded in Deed Book 1483, Page 285; as affected by First Amendment to the Grant of Easement recorded in Official Records Book 10652, Page 534, of the Public Records of Pinellas county, Florida. . TOGETHER WITH non-exclusive easements as set forth in the Operating Maintenance and Easement Agreement recorded in Official Records Book 10784, Page 1247, ofthe Public Records of the Pinellas County, Florida. AND ALSO THE FOllOWING: FIVE FOOT STRIP FOR INGRESS AND EGRESS: A certain 5 foot strip of land lying in Section 20, Township 29 South, Range 16 East, Pinellas County, Florida, as described in Official Records Book 3528, Page 521 and being more particularly described as follow: . Commence at the Southwest corner of said Section 20 and run South 89019'48" East, along the South line of said Section 20, a distance of 100.01 feet to the Point of Beginning, leaving said South line, Thence North 01026'21" East, a distance of 5.00 feet; Thence South 89019'48" East, a distance of 609.99 feet; Thence South 01026'21" West, a distance of 5.00 feet; Thence North 890 19'48" West, a distance of 609.99 feet to the Point of Beginning. . . AFFIDAVIT TO AUTHORIZE AGENT STATE OF FLORIDA COUNTY OF , being first duly sworn, depose(s) and say(s): . 1. the owner(s) and record title holder(s) of the property described as follows (the Property"): Unit, THE GRAND VENEZIA AT BAYWATCH, a Condominium, according to the Declaration of Condominium thereof, as recorded in Official Records Book 14030, Pages 1368 thro~gh 1486, and the Amended and Restated Declaration of Condominium as recorded in Official Records Book 14243, Page 1040-1145, together with all appurtenances thereto, including an undivided interest in the common elements of said Condominium, as set forth in said Declaration, Public Records of Pinellas County, Florida. PROPERTY ADDRESS: ,Unit, Clearwater, FL 33764. . 2. That this Property constitutes a portion of the land for which a request for a Community Development District is being applied for to the City Commission of the City of Clearwater. 3. That this Property constitutes a portion of the land for which a request for federal, state, and/or local land use, development, construction, environmental, and/or governmental approvals is being sought. 4. That the undersigned (has/have) appointed W. Scott Callahan and Thomas A. Cloud as (his/their) agent(s) to execute any permits or other documents necessary to affect such permit. 5. That this affidavit has been executed to induce the appropriate governmental agency(ies) to consider and act on the above- described Property. . . 6. That the undersigned authority hereby certifies that the foregoing is true and correct. STATE OF FLORIDA COUNTY OF The foregoing instrument was acknowledged before me this _ day of I 2005 by and I who are personally known to me or who has produced as identification. Signature of Notary . Printed Name of Notary Commission Expires: . . . . ACKNOWLEDGMENT OF POSSIBLE COMMUNITY DEVELOPMENT DISTRICT With respect to the property described below, hereby acknowledges that this Unit may become part of a Community Development District. A COMMUNITY DEVELOPMENT DISTRICT IMPOSES TAXES OR ASSESSMENTS, OR BOTH TAXES AND ASSESSMENTS, ON THIS UNIT THROUGH A SPECIAL TAXING DISTRICT. THESE TAXES AND ASSESSMENTS PAY THE CONSTRUCTION, OPERATION AND MAINTENANCE COSTS OF CERTAIN PUBLIC FACILITIES AND SERVICES OF THE DISTRICT AND ARE SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES AND ASSESSMENTS ARE IN ADDITION TO ALL OTHER TAXES AND ASSESSMENTS PROVIDED FOR BY LAW. LEGAL DESCRIPTION Unit, THE GRAND VENEZIA AT BAYWATCH, a Condominium, according to the Declaration of Condominium thereof, as recorded in Official Records Book 14030, Pages 1368 through 1486, and the Amended and Restated Declaration of Condominium as recorded in Official Records Book 14243, Page 1040-1145, together with all appurtenances thereto, including an undivided interest in the common elements of said Condominium, as set forth in said Declaration, Public Records of Pinellas County, Florida. PROPERTY ADDRESS: STATE OF FLORIDA COUNTY OF The foregoing instrument was acknowledged before me this _ day of , 2005 by , who is personally known to me or who has produced as identification. Signature of Notary Printed Name of Notary Commission Expires: C:\Documents and Settings\bah\Local Settings\Temporary Internet Files\OLK3C\BUYER ACKNOWLEDGMENT FORM.doc . . . BEFORE THE CITY COUNCIL OF THE CITY OF CLEARWATER, FLORIDA IN RE: PROPOSED ORDINANCE PURSUANT ) TO SECTION 190.005(2), FLORIDA STATUTES, ) TO ESTABLISH THE CLEARWATER CAY ) COMMUNITY DEVELOPMENT DISTRICT ) ) TESTIMONY OF CAREY GARLAND FOR CLEARWATER CAY COMMUNITY DEVELOPMENT DISTRICT 1. Please state your name and business address. Carey Garland, Fishkind & Associates, 11869 High Tech Ave. Orlando, Florida 32817. 2. By whom are you employed and in what capacity? I am currently employed by Fishkind & Associates as a real estate consultant. 3. And what is the nature of your firm's business? We provide economic, financial consulting, and management services to the real estate development industry and to many community development districts in the State of Florida. 4. Please state by whom you were employed prior to Fishkind & Associates, and your responsibilities in those positions? From 1990 until 1996 I worked for Westinghouse Communities, a land developer based in Naples, Florida. My responsibilities included project management for a large-scale residential community. I also managed the formation, management, and financing of the company's community development districts. 5. Please describe your educational background, with degrees earned, major areas of study, year of degree, and institutions attended. I hold a Bachelors of Science in engineering from the University of Missouri and a Masters in Business Administration from the University of Michigan. 6. Have you ever been qualified as an expert regarding economic analyses of special districts? 1 . Yes. I have been qualified as an expert witness in the proceedings to establish a number of community development districts, including the Brooks at Bonita Springs COO, Split Pine COD, and Tolomato COD. 7. Have you previously worked with other petitioners for the establishment of a community development district and prepared a Statement of Estimated Regulatory Costs in accorda,nce with Florida Statutes? Yes. Our office has prepared approximately fifty Statements of Estimated Regulatory Costs. I have prepared approximately 20 Statements of Estimated Regulatory Costs. 8. Please summarize your previous work experience relating to special districts in general. I personally serve as Financial Advisor to approximately 20 community development districts ("COOs") and our firm is Financial Advisor to over 35 COOs. As Financial Advisors to COOs, our firm has assisted our clients in successfully financing in excess of 140 transactions raising in excess of $2 billion dollars. Also, we maintain the lien books and file the tax rolls for ten COOs and special districts. . 9. Where in Florida are the community development districts that you have advised or with which you have been employed? I have worked with districts in Flagler, St. Johns, Bay, Orange, Leon, Broward, Dade, Collier, Lee, Sarasota, Volusia, Duval, Manatee, Palm Beach, and Hillsborough Counties. The firm also has district clients in Marion, St. Lucie, Charlotte, Pasco, Hernando, Osceola, Lake and Manatee Counties. 10. Please describe how these community development districts operate. Community development districts are governed by a five member board of supervisors elected initially by all the landowners in the district. The Board selects a district manager who manages and operates the community services and facilities and handles all administrative functions. The district manager prepares the annual budget to be adopted by the Board after the requisite public notice and hearing. The District submits a copy of the proposed budget to the applicable local general purpose government for review and optional comment. The Board adopts all resolutions and policies of the district for its ongoing appropriations and operation. . 11. Are community development districts subject to the Sunshine Meeting and Public Records laws as are general purpose local governments? 2 . Yes. Community development districts are independent special units of local government and are subject to the same open meetings and public records requirements. 12. Please describe any other requirements and public safeguards. The creation of a district does not change the requirements for governmental approval of land development within the district. All state and local planning, zoning, permitting, land use and other land development regulations remain applicable to the property contained within a community development district. Florida Statutes also require the district to take affirmative steps to provide full disclosure of information relating to the establishment of the district and the financing and maintenance of public improvements to real property undertaken by the district. Each member of the Board of Supervisors is required by statute to be a resident of Florida and citizen of the United States. When the Board begins to be elected by the resident electors of the district, each member must also be a resident and elector of the district. Board members must annually file the same financial disclosure forms required of other local officials. . The district is subject to audit by an independent certified public accountant and must provide its annual financial report to the State. All rates, fees, and charges imposed by the district must be adopted pursuant to Chapter 120 rulemaking. The board must follow Chapter 120 rulemaking procedures in the adoption of its other rules. If the district is to impose non-ad valorem assessments, it must provide the same notices and conduct the same public hearings that would be required of any other unit of local government. That process entails preparation of an assessment methodology that fairly and equitably allocates the cost of the district's projects. 13. Please describe how a community development district is funded or derives revenue to operate on a long-term basis? In the first few years, in lieu of assessments on land within the district, the district's operations are often funded by a "funding agreement" between the district and the landowner/developer. . To provide for financing of capital projects, the district may issue bonds or other forms of indebtedness. Bonds issued by the district must be secured by a trust agreement, and any bond maturing over a period of more than five years must be validated by circuit court pursuant to 3 . . . Chapter 75, Florida Statutes. The district may also borrow funds on a long or short term basis. Debt of the district may be serviced through the imposition of non-ad valorem special assessments, or by charging fees on users of the district's facilities and services. By law, debt of the District cannot become debt of any other government (city, county, or state), absent that government's consent. \ 14. What alternatives might be available to provide community infrastructure for the lands within the proposed district? In my opinion there are two alternatives which might provide community infrastructure such as the roads, utilities, drainage, parks and other improvements contemplated for the proposed district: 1. The general purpose. local government could finance the improvements utilizing special assessments or general funds, or 2. The developer could provide infrastructure through private financing, if available. As discussed later in my testimony, neither of these alternatives is preferable to the establishment of a community development district. 15. Are you familiar with the Petition to establish the Clearwater Cay Community Development District and, if so, what participation, if any, did you have with respect to the Petition? Yes, I am familiar with the Petition to establish the Clearwater Cay Community Development District. I developed the Statement of Estimated Regulatory Costs ("SERC"), required by Chapters 120 and 190, Florida Statutes, that is included in the Petition. Lets begin to address portions of the Petition to establish the Clearwater Cay Community Development District relating to certain economic analysis, including the exhibits you are sponsoring into evidence and your expert opinions on economic analysis issues. 16. You stated that you are familiar with Petition and prepared the SERC? Yes. 17. Are there any corrections that need to be made? No. 4 . 18. In general terms, please summarize the economic analyses you have presented in the SERC. The SERC reviewed and evaluated four major categories of potential impacts as outlined in Section 120.541 (2)(f), Florida Statutes. These include: (a) A good faith estimate of the number of individuals and entities likely to be required to comply with the ordinance, together with a general description of the types of individuals likely to be affected by the ordinances; (b) A good faith estimate of the cost to the agency, and to any other state and local government entities, of implementing and enforcing the proposed ordinance, and any anticipated effect on state and local revenues; (c) A good faith estimate of the transactional costs likely to be incurred by individuals and entities, including local governmental entities, required to comply with the requirements of the ordinance; and . (d) An analysis of the impact on small businesses as defined by Section 288.703, Florida Statutes, and an analysis of the impact on small counties and small cities as defined by Section 120.52, Florida Statutes. In summary, we concluded that there is no adverse impact on any affected party from establishment Of proposed district. 19. Please describe briefly the data and methodology you used in preparing the SERC and related analyses. The methodology I used is consistent with that commonly employed by others in the industry. Much of the other data was provided by the Petitioner and Mr. Richard Claybrooke of Post, Buckley, Schuh & Jernigan (the engineer for the Petitioner). I also drew from my previous experience with other special districts. 20. Do you have an opinion from an economic analysis perspective as to whethe.r the Clearwater Cay Community Development District is of sufficient size, sufficient compactness and sufficient contiguity to be developable as a functionally interrelated community? Yes, I do. It is my opinion that the proposed district is of sufficient size, sufficient compactness and is sufficiently contiguous to be developable as one functionally interrelated community. . 21. Do you have an opinion. from an economic analysis perspective as to whether the proposed district is the best alternative available for 5 . providing community development services and facilities to the area proposed? Yes, I do. It is my opinion that the Clearwater Cay Community Development District would be the best alternative available to provide community development services and facilities to the lands proposed to be included within the district. Regardless of the specific mechanism (i.e., MSTU/MSBUI other dependent district) employed, the City would incur costs associated with the financing and management of the construction. The source of the necessary construction funds would be the City's general revenue fund or issuance of additional debt through a depending taxing or assessing unit. If general revenue is used, these costs, along with annual maintenance costs, would be borne by all City residents, not just property owners within the district. Financing improvements through the City even with an MSBU would impact the City's total bonding capacity and would have a number of management implications. . Private financing is difficult to obtain and when available, is very expensive. This may result in housing that is less affordable or a decrease in the level of services provided. In addition, annual maintenance would likely be delegated to a homeowners association which does not have the same legal backing to enforce assessments as does a community development district. With a community development district, the district incurs the cost of issuing bonds or other indebtedness necessary to finance the construction of the necessary infrastructure and will oversee and manage all phases of construction. All costs associated with these activities will be borne only by property owners within the district that benefit from the improvements. No City general funds will be used and no costs will be incurred by any City resident who does not purchase property within the district. The district continues to operate and maintain the certain of the infrastructure improvements and, often times, maintains the common areas in the community. The district as special unit of local government is a better alternative than the local government or the homeowners association in addressing community matters within the area. It relieves some of the demand on county or municipal government staff and the strain on local government budgets, yet it can employ its own professional staff to be more responsive to community concerns and more efficiently resolve community issues than could a homeowners association. . 22. Assuming the district issues bonds or other indebtedness to fund infrastructure improvements, will the district likely issue more debt . 6 . 23. . . than the actual construction costs estimated in the exhibits to the Petition, as such exhibits have been supplemented? My company, in its capacity as financial advisor, assists districts in preparing a plan to finance not only the actual "hard" construction costs but also to finance required reserve accounts, capitalized interest during construction, issuance costs and other contingencies. As a rule of thumb, a bond issuance, if undertaken by a district would be for an amount which is approximately 25-35% higher than the final estimated construction costs. It is my understanding that the dollars reflected in Exhibit F to the Petition, as supplemented, are good faith best estimates of the construction costs at this time but which may be increased or decreased as more information is available closer to construction. Does such a plan of finance take into account a mechanism to address situations in which a landowner, developer, or builder actually provides less units than were contemplated in the plans? Yes, it does. It is typical that the assessment methodology adopted by the district would account for these variables. We call this a true up process. Essentially, while it is appropriate that a district consider the expected number of units to be served by the district's. infrastructure improvement program, it is not uncommon that those actual numbers change because of changes in regulatory requirements, development plans, land use approvals, or other matters. Any assessment lien imposed by a district would be expected to include a provision for a developer to pay the district for any reduction in units after the district has imposed assessments and incurred debt so that the district continues to receive the revenue expected when the plan of finance was sized and generated. 24. Do you have an opinion from an economic analysis perspective as to whether the services and facilities to be provided by the district will be incompatible with the uses and existing local and regional facilities and services? Yes, I do. It is my opinion that the services and facilities to be provided by the proposed Clearwater Cay Community Development District are not incompatible with uses and existing local and regional facilities and services. Any services required of the district are necessary to support new growth in the area. A community development district must still adhere to higher governmental rules, procedures and standards because they operate as governments ensuring public oversight to avoid duplication or incompatibility. . I 7 . 25. Do you have an opinion from an economic analysis perspective as to whether to the area to be included is amenable to continue being served by a separate special district government? Yes, I do. It is my opinion that the area to be included within the district is amenable to being served by a separate special district government. 26. What is the basis for your opinion? Due to the size, complexity, and specialized nature of the improvements, a need exists for professional organized management which is best provided by a community development district and which will not burden the City. The area within the proposed district is of sufficient size, compactness, and contiguity and is economically viable, such that the area to be served by the proposed district is clearly amenable to separate special-district governance. The basis for my opinion is my experience with other districts of similar size and configuration. Now let's address certain special district management issues and your opinions with regard to those issues. . 27. Do you have an opinion, as someone experienced in district managemen~ and operations, as to whether the proposed district is the best available alternative for delivering community services and facilities to the area that will be served? Yes. The district is the best alternative available for delivering community services and facilities to the area that will be served. The improvements include certain roadway improvements, utility facilities, surface water management and recreational facilities. Looking at the alternatives, the City could finance and manage the roadway, drainage, and recreational improvements utilizing special assessments or general funds. The developer and/or a homeowner's association could provide these facilities through private financing. In evaluating these alternatives, one may consider whether the alternative is able to provide the best focused service and facilities, can effectively and efficiently manage and maintain the facilities, and whether the alternative can secure low cost, long term public financing and pay for all of the management benefits at sustained levels of quality. . The City clearly provides the long term perspective and serves as a stable and relatively low cost source of financing and provider of services at sustained levels. However, the City has substantial demands over a broad geographical area which places a heavy management delivery load on its staff. In addition, if dependent district financing were used, the City 8 . would be responsible for all administrative aspects of the dependent district. The City would have to make time and schedule meetings to address monthly matters pertaining to the dependent district. By using a dependent district mechanism, the City would be increasing its responsibility and hence liability for the variety of actions that will take place in the development. The City (through the dependent district) would be the contracting party for all construction contracts, would have to deal with bid documents and bid protests, enforce performance bonds and participate in construction arbitration or litigation if necessary. It would deal with delay claims and cost overruns and all the other headaches that come with being the owner in a public construction process. A district can be created to provide focused attention to a specific area in a cost effective manner. It also allows the City to focus staff time, finances and other resources else where and does not burden the general body of taxpayers in the City with the debt association with this growth. . The other alternative is the use of private means - either through a property owner's association or through the developer, or both in combination. This combination can clearly satisfy the high demand for focused service and facilities and managed delivery. However, only a public entity can assure a long term perspective, act as a stable provider of services and facilities, qualify as a lower cost source of financing, and pay for and maintain services at sustained levels. Property owners' associations lack the ability to effectively finance the improvements and are not perpetual entities capable of sustained maintenance activities. Furthermore, provision of these facilities through a POA or directly from the developer does not provide the level of oversight and responsiveness which comes with a community development district. Neither the developer nor.a POA would be required to conduct all actions relating to the provision of these improvements in the "sunshine" as a district must, or abide by all other public access requirements which are incumbent upon a district and its board of supervisors. A community development district is an independent special purpose unit of local government designed to focus its attention on providing the best long-term service to its specially benefited properties and residents. It has limited power and a limited area of jurisdiction and is governed by its own Board and managed by those whose sole purpose is to provide to the district long-term planning, management, and financing of these services and facilities. This long-term management capability extends to the operation and maintenance of the facilities owned by the district. Further, the sources for funding and manner of collections of funds will assure that the district facilities will be managed at the sustained levels of quality desired by residents well into the future. . 9 . 28. Do you have an OpiniOn, as someone experienced in district management and operations, as to whether the area to be included within the proposed district is of sufficient size, is sufficiently compact, and sufficiently contiguous to be developable as one functional, interrelated community? Yes. The proposed district has sufficient land area, and is sufficiently compact and contiguous to be developed, with the roadway, drainage, utility and other infrastructure systems, facilities and services contemplated, as one functionally interrelated community. 29. What is the basis for your opinion? The size of the proposed Clearwater Cay Community Development District is approximately 49.37 acres. I believe the district is of sufficient size and is sufficiently compact and contiguous. . The qualities of compactness, contiguity, and size relate directly to whether an area can become one functional interrelated community. The area to be included within the district can be expected to succeed as a functional, interrelated community from a district management perspective. From the standpoint of the provision, management and operation of the community infrastructure expected to be provided by the proposed district, the acres contemplated for inclusion within the district is sufficiently compact, contiguous and of sufficient size to maximize the successful delivery of these infrastructure improvements to the land to be served. These characteristics ensure that the delivery of services and facilities to the land within the district will not be hampered by insurmountable barriers or spatial problems. The area within the district is suitably configured to maximize the benefits available from the district services and facilities to be provided. 30. Do you have an opinion, as someone experienced in district management and operations, as to whether the area that will be served by the proposed district is amenable to separate special district government? Yes. The area to be served by the district, being of sufficient size, compactness, and contiguity, is therefore, clearly amenable to separate special-district governance. The configuration of the district is not unlike other community development districts with which I have worked over time. 31. What is the basis for your opinion? . Two criteria are needed to evaluate a land area as amenable to separate special district governance. 10 . 1. Does the land area have need for the facilities and services and will its owners and residents benefit from facilities that the special district could provide? And 2. Is the land area of sufficient size, sufficient compactness, and sufficiently contiguous to be the basis for a functional interrelated community? Under both criteria, the district is a planned community of sufficient size with a need for the facilities and improvements which are presently expected to be provided. As described in the Petition, the district will construct and maintain certain identified needed facilities and services. Based on my experience, a district of this size is large enough to effectively provide and manage these facilities and services. Finally, the area to be included in the district is compact and contiguous so that the provision of services and facilities by separate special district government will be facilitated. From a management and operations perspective, the land area is well suited to the provision of the proposed services and facilities. Ultimately, of course, if later circumstances would cause the City to re-evaluate whether the land should continue as separate special district government, the City has options under section 190.046(4), Florida Statutes, to effectively assume the functions and obligations of a community development district. . 32. Do you have an opinion, as someone experienced in district management and operations, as to whether the community development services and facilities of the district will be incompatible with the capacity and use of existing local and regional community development services and facilities? Yes. The proposed services and facilities of the district is not incompatible with the capacity and uses of existing local or regional community development services and facilities. 33. What is the basis for your opinion? The petitioner presently expects the district to finance and construct certain roadway, utility, drainage and recreation improvements. None of the facilities expected to be provided by the district presently exist at a local or regional level. Ultimately, a district may own and maintain certain of those improvements, such as the recreation improvements and the City may own and maintain others. However, there will be no overlap, duplication or incompatibility because the facilities and improvements expected to be provided by the district do not exist today. . 34. What, if any, impact will occur to City ad valorem tax revenues if the District is created? 11 . Positive impacts. At the request of the City, I performed an analysis which is reflected in the table entitled "Calculation of Estimated Tax Revenues for Clearwater Cay Club COD Post Redevelopment" which is attached to and incorporated in my testimony as Exhibit" A." This table reflects an increase in ad valorem taxes of over $3 million. 35. Does that conclude your testimony? Yes. FURTHER YOUR AFFIANT SAITH NOT - ( Sworn to (or affirmed) and subscribed before me this 3 f ~ day of . Ov-~ u ~+ ,2005, by Mr. Carey Garland. STATE OF FLORIDA COUNTY OF O('ClVl5 ~ AFFIX NOTARY STAMP dU~ C. m~\f\ tA. re of Notary Public -rudit~ ft. M~fV+e r Print Notary Name My Commission Expires: Commission No.: b<Personally known, or /0 Produced Identification Type of Identification Produced JUDITH A. MINTER My Comm Exp. 12/15105 No. DO 065372 w.- [1 Other 1.0. . # 419864 v1 12 . <( . >< w . en (1) ~ t: (1) > (1) 0:: >< co J- "'C (1) - co ... E~ :t:i en w 'too o t: o :t:i CO ~ U CO o c C_ O t: .c (1) ~ E Q, o 0 ~(1) CO > o (1) ..."'C (1) (1) 100:: ~U) co 0 (1)a.. o i~ CI 'C ::::J CI III 10> EoS! +:l.c III III W ~ I- E CI >< W CI ::::J 'C III CI> +' 1ll'C E CI +:l .!!! III III w ... i... III 0 I~~ ~ o ... CI ... ::::J ll. - <~ III oS! III III -... en ; ~ '0 ;;Ill ~ ,Sl oJ +:l III CI E ll.+:l III W +' C ::::J o E < >< III I- III III o ... C) 00000 NNNO <0_<0_1'-_"- 0> I'- LO 00 o 0> 00 00 N.. LO'<t C") tf) tf) tf) ,Sl III 0:: >< III I- '<t o o N '<t'<t'<t'<t 0> 0> 0> 0> <0<0<0<0 ~~~~ NNNN NNNN '<tooo 0>000 '<t000 C")LOOLO I'-NLON cri~a.O~ c") N N ~~~~ 0000 '<t000 O>_O_O_~ '<t000 C")LOOLO I'-NLON cri~a.O~ c") NN ..- tf) tf) ~ ~ a' o 0_ o o '<t_ oo tf) tf) tf) ~ 0000 '<t000 0>000 ~OOO C")LOOLO ..-NLON r:O~a.O~ '<t NN ..- < tf) tf) tf) tf) ?f!.'cf?~?f!. LO LO LO LO 00 00 00 00 0000 0000 '<t000 <<iDDD 1'-000 N.. a. ~ a. '<tLOOLO I'- C")N tf) tf) tf) tf) ..... <0 C") e 2 CI (\] 'c: ~ '0 ::> 0 Qj o I E 'C.cOiE g.2oo OOIO o ... ll. I'- <0 o ..- 00 C")_ '<t tf) .... Q) c Q) o ~ +' C CI E Co o a; > CI 'C CI 0:: +' III o ll. III CI >< III I- 'C CI +' III E +:l III W ] o I- N <0 00 00 ~..- 0> LO 00 C") <0..- tf) ~ CI Co o ... Co .~ U ... CI E E ~8 CI.c g..2 aO .~ i;' NO CI ... ~,Sl > III 'C ~ C III I:!! oS! C)O +' +' C C ::::J ::::J o 0 E E << >< >< III III 1-1- III III III III o 0 ... ... C)C) '<tM 00 00 NN 00 <0 N_ '<t N 00 tf) III CI >< III I- III III o ... C) '<t o o N ] o I- oj :J lij > CI :0 (\] x 2 ID ,~ ro c: ID fIl C o u (;) Qj 0 >. c E C 0 ID OE..c:L(j fIlQjio ~ Ooo~ Co~~(;) Cii~.95, "E ..c VJ ~ ID"O.-.:~ ():mS'Q lijOoo '0 g-"O ~ W en C Q) E 2 8 ;;: ~~~~ u~~ .olij ~ f/) cfl. U-o >,CIlo ('t:J.3 T"'" () ~ Q; c ro 0 ~al CIl fIl ID CIl u~ "0 ID c :J CIllij Cll > ,~ .l!l ID 'c > :J "0 0 c"O ~ g l')() C :J ID :0 1)1 c 'm o > c CIl ~ ID 2.0 C "0 o c 'E..= E ;;: ID fIl X ID ID ro "00::: 2 t;j fill- IDl{) Eo 00 IN 2~~~ Q) Cl (\] a.. ti c III Q) iii '0 o III III <( "0 C (\] "0 C :;;: .J::. III u::: LO o o ~ ..- -. 0> J ~\. . . . EXHIBIT 2 TO THE COUNCIL MINUTES DATED 9{1/05 .1 CONSENT AND JOINDER TO PETITION TO ESTABLISH COMMUNITY DEVELOPMENT DISTRICT The Grand Bellagio at Baywatch Condominium Association, Inc., a non- profit Florida corporation, by and through the undersigned hereby agrees and consents to the establishment of a community development district with authority to exercise all special and general powers upon the lands described in Exhibit. A. attached hereto, pursuant to Chapter 190, Florida Statutes. BELLAGIO AT CONDOMINIUM a non-profit THE GRAND BAYWATCH ASSOCIATION, INC., Florida corporation By: ~~ ~ David W Schwarz, a President STATE OF FLO~DA . COUNTY OF \-^'~ C Th~regOing instrument was acknowledged before me this ~ay of ~~ ' 2005 by David W Schwarz, as President, of The Gr~nd Bellagio at Baywatch Condominium Association, Inc., a non-profit Flonda corporation, who is personally known to me or who has produced as identification. ..-:;.~.~.. w SCOTT CALLAHAN f.~>>b. MY cOMMISSION' DO 2m88 1.J. .: I EXPIRES: January 27,2008 "I!I.l':' 1OndId'TllN NoIIIY f'I.lliIO ~ . , Commission Expires: U:\wsc.<:Ienl ~18371ll41~ -.gIo _.DOC , 363309 v1 " ...... ... . . . . CLEARWATER COMMUNITY DEVELOPMENT DISTRICT A parcel of land in Sections 20 and 29, Township 29 South, Range 16 East, Pinellas County, Florida, being more particularly described as follows: Commence at the Southwest corner of said Section 20;. thence along the South line' of said Section 20, -S89019148"E, a distance of 100.01 feet .to the East right of way line of U. S. Highway 19 and the POINT OF BEGINNING; thence. N01026'21"E, along said East right of way line, 'a distance of 350.00 feet; thence S89019'48'.IE, parallel with said South line of Section 20, a distance of 175.00 feet to the Southeast corner of .property conveyed in Official Records Book 13955,. Page 418 of the Public Records of Pinellas County, Florida; thence N01026'21"E, along the East line' of said property, a distance' of 200.00 feet to the Northeast corner. of said .property; thence N89,o19'48"W, along'the North line of said property, a.di~tance of 175.00 feet to said East right of way line of U.S. Highway 19';, t~ence N01.26'21"E, along said Ea~t right of way line, a distance of 73.79 feet to the Southwest corner of proper~y con~eyed in Official Records Book .13618, Page 304. of the Public' Re'cords of Pinellas County, Florid(i; thez:1ce S89019'48"E, along t'he South line of said property, a distance of 210.24 feet to the Southeast corner of said property; thence N01026'~1"E, along the East line of said property, a distance of 179.82 feet to 'the Northeast corner of said pioperty; thence. N89019'48"W, along the North line of said pioperty, a distance of 210.24 feet to said East. rj,.ght of way line of. U. S. Highway 19; th~nce N01026'~1"E, alo~g said East' right ot way line, a, distanc~'of 361.95 feet; thence S89026'50"E, a distance ot 885.00 feet; . thence SOl026'.21"W, a distance of' 572.00 feet; thence N89019'48"W, a disti;l.nce of ~63.00 feet; thence SOl026'.21"W, a. distance of 246.00. feet; thence N89019'48"W, a distance of 12.00 fe,et; ,thence SOl'o 26' 21 "W, a distance of 34 9.37 feet to said South lin~ of Section 20 and the North line .of said Section 29; thence S89019' 48np:, along Siaid South line and North line, a distance of 11~39 feet. to Northeast corner of pr~~erty conveyed in Official. Records Book 1076g,.Page 1415 of the Public Records of Pinellas County, Floridai' thence SOO 027' 22 "E, for 43.51 feet to the. Northwest.. corner 'of property conveyed inOfficial Records Book 13805,. Page 313 of the Publi~ Records of' Pinellas County, Florida, said corner als9 being a point of intersection with a non-tangent 'curve concave to the South; thence Easterly along the arc of said c'urve with a radial bearing SOO 0 27' 51 liE, and having a radius of 35.00 feet, a central angle of 14051'42", an arc length of 9.08 fe'et and a chord bearing S83002'00"E, for 9.05 feet to the point of reverse curva~~re with a curve conc'ave to the' North; thence Easterly along the' arc of said curve, having a radius of 35.00 feet, a central angl,e of 13 043' 39" , .. .. . . an arc length of 8.39 feet and a chord bearing S82027'58"E, for 8.37 feet to the point of tangency; thence S89019148uE, for 111.84 feet to the point of intersection with a non-tangent curve concave to the Northwest; thence Easterly along the arc of said curve with a radial bearing NOO 0 4 0' 13 "E, and having a radius of 55.50 feet, a centrai angle of 118044'08", an arc length of 115.01 feet and. a chord bearing N31 0 18' 08 "E" for. 95.51 feet to the point of intersection wit~ a non-tangent curve concave .to the Northeast; thence Southeasterly along the . arc of said curve with a radial bearing N61056'04"E, and having a radius of 15.00 feet., a central angle of 46010'01", an arc' 'length of 12.09 feet and a chord bearing S51 008' 57"E, for 11. 76 feet to the point of compound .curvature with. a curve concave to the North; thence .Easterly along the arc of: said curve, having a radius of 125.00 feet, a central angle of 56040'40", an arc length of 123.65 feet and a chord bearing .N77025'43"E, for 118.67 feet to the point of r~verse. curvature with a curve 'concave to the ~outheast; thence Northeasterly along the arc of said -curve, having a radius of ~03.00 feet, a central angle'of 00031'45", an arc length of 2.80 feet and a chord bearing N49021'15"E, for 2.80 feet to the point of intersection with a non-tangent line; thence N40022152"W, for 14.84 feet to the point 'of intersection with a non- tangent curve concave to. the Northwest; thence Northeasterly along the a~c of said cu~ve with.a radial bearing N40043139"W, and having a r~dius of 74.87 feet, a central angle of 02040'04"" an arc length of 3.49 .feet and a chord bearing N47056'19"E, for 3.49 feet to the point of reverse curvature with a curve. c'oncave to the Southeast; thence Northeasterly along the ar~ of said curve, having a radius of 234.00 feet, a central angle of 34019'10", an arc length of. 140.16 feet .and a chord' bearing N63 0 45' 52 "E, for 138.08 fe'et to the point of tangency'; thence 'N80 055' 27"E, for 97.25 feet; thence N56 0 01' 58"E, for 40.45 feet; thence' N78050'41i'E, for 127.14 feet; thence S78023I09"E, for '24.44 feet; thence' S11052',40"E, for 9.10 feet; thence N79023'05"E, for 49.80 feet; thence N10051'19"W, for 10.82 feet; thence N42027128"E, for 66.63 feet; thence N35048'02"E, for 134.85 feet;, thence East, ,for 67.34 feet; thence s38 008' 04 "E, for 12.67 feet; thence East, for 68.14 feet;, thence N54 010' 51 "E, for '17.03 'feet; thence, East, for 96.27' feet; thence N55 0 05 '18'"E, for 63.64 feet; thence East, for 25.42 feet to the point of curvature of 'a curve concave to the"North; thence Easterly along the arc of said curve, having a radius of 64.00 feet, a central an~le of 39042'28", an arc length of 44.35 feet and a chord bearing N70008'46"E, for 43.47 feet to the point of reverse curvature with a curve concave to the South; thence Northeasterly along the arc of 'said curve, having a radius of 58.00' feet, a central angle of 36055'37", an arc length of 37.38 feet and a 'chord bearing N68045'21"E, for 36.74 feet to the point of reverse curvature' with a curve concave to the Northwest; thence Easterly along the' arc of said curve, having a radius of " .. '. .' . . 54.00 feet, a central angle of 81013'09", an arc length of 82.20 feet and a chord bearing N4 3 0 36' 34 liE, for 74.49 f.eet to the point of tangency; thence' North, for 189.83 feet; thence S89019'09"E, for 779.97 feet; thence S60000'OO"W, for 1333.52 feet; thence S89019'48"E, for 209.91 feet; thence S24054'45"W, for 343.41 feet to the point of intersection with a non~tangent curve concave to the Southeast; thence Southwesterly along the arc of said curve with a radial bearing S52036'11"E, and having a radius of 1577.45 feet, a central angle of 13022'27", an arc length of 368.22 feet and a chord bearing S300 42' 35"W, for 367.38 feet to the point of intersection with a non-tangent line; .thence N89004 '26"W, for 829.18 feet to th'e Southeast corner of property conveyed in Official Records Book 10769, Page 1415 of the Public Records of Pinellas County, Florida; .thence N89021'00"W, along the' South line of said property, a distance of 635; 75 feet to said East ri9ht of way line of U. S. Highway 19;' thence NOO 0 51' 16,"E, . along said East ~ight of way line, 627.67 feet to the said POINT OF BEGINNING; LESS AND EXCEPT ,the So~th 5.00 feet of the East 610.00 feet of the .West 710.00 feet of said Section 20, Township 2~ South, Range 16 East, Pinell~s County, F~orida; LESS AND EXCEPT the following described parcel: A pa~cel of land lying in the Southwest Section 20, Township 29 South, Range Florida, per Official Records Book 9527, Pinellas County, Florida, being ,more follows: 1/4 of the So~thwest 1/4 of 16 East, Pinellas . County, Page 480, Public Records of particularly described as Commence at the Southwest corner of said Section 20 and run South 89019'48" East, ,100.00 feet to the Ea~t right-of-way line of U.S. Highway 19; thence North Q1026'2l" East along said East right-ot:-way line, 5.00' feet to the POINT OF BEGINNING; . thence continue North 01026' 21" East, along said "East right-of-way line, 345.00 feet; thence South 89019'48"" East, 252.55 feet; thence South 01026'21','" West, 345.00 feet; thence North '89019'48" West, 252.55 feet to the P9INT OF BEGINNING. Overall, property containing 49.369 acres, more or less. TOGETHER WITH and SUBJECT TO an easement for ingress, egress, drainage and utili ties created by documents recorded in Official Records Book 10958, Page 299, Official Records Book 12557, Page 2644, and Official Records Book i0784, Page 1247 of the Public Records of Pinellas County Florida, over. the following described parcel: .. .. . . . A tract of land lying in Sections 20 and 29, Township 29 South, Range 16 East, Pinellas County, Florida, being further' described ~s follows: Commence at the Southwest corner of said Section 20; thence S89019'48"E, along the South line of said Section 20 and the North line of said Section 29, a distance of 100.01 feet t6 the East right of way line of U. S. Highway 19 and the POINT OF BEGINNING; thence N01 026' 21 "E, along said East right of way line, a distance of 5.00 feet; thence S89019'48"E, parallel with said South line of Section 20, a distance of 610.00 feet; thence SOlo 2 6' 21 "W, a distance of 5.00 feet to the North line of said Section 29; thence S89019'48"E, along said North line, a .distance of 5.89 feet to a point of intersection with a non-tangent curve concave to the Northwest; thence Northeasterly along the arc of said cur,ve with a radial bearing N35013'11"W, 'and having a radius of 3~~00 feet;. a central angle of 30038' 59", an arc length of 18.72 feet and a chord bearing N39 027' 06"E, . for 18.50 fe'et to . the point of reverse curvature with a curve concave .to the Southeast; thence Northeasterly 'along the arc'of said curve, having a radius of 45;00 feet, a central angle of 660 32'.19" an arc length of' 52.26 feet and a chord bearingN~7024'02"E, for 49.37 feet to the point of tangency; thence S89019'48"E, ~or 15.64 feet to the point of curvature of a curve concave to the North; thence Easterly alorig the arc of said curve, having a radius of 50.00 feet, a central angle of 39~ 25' 12", an arc length of 34.40 feet and a chord bearing N70057'37"E, for"33.73 feet to the point of a reverse curve conca~e to the West; thence. Southeasterly along the arc of said curve, . .' 0 .having a radius of 55.50 feet, a central angle of 219 25' 12", an arc length ot 212.54 feet and a chord' bearing S19002'23"E, for 104.50 feet to the point of tangency; thence N89019'48"W, for 111.84 feet to the point of curvature of a curve concave to the North; thenc~ Westerly along the arc of said curve, having a radi,us of 35.00 feet, a central angle of 130 43' 39",. an arc length of 8.39 feet .and a chord bearing N82027'58"W, for 8~37 feet. to the point of reverse curvature' with a curve concave to the South; thence Westerly along the arc of said curve, having a radius of . 35. 00 feet, a central angle of 140 51' 42", an arc length of 9.08 feet and a chord bearing N83002'00"W, for 9.05 feet to a point of intersection with a non-tangent line; thence 500027 '22"E, for 6.50' feet; thence N89019'48"W, parallel with ;3aid North line, a distance of 382.87 feet; thence S76044' 53"W, a distance of 57.73 feet; thence S87033'00"W, a distance of 57.06 feet; thence N89019'48"W, parallel wi th said North line, a distance of 126. 71 feet to said East right of way line of U.S. Highway 19; thence N00051'16"E, along said East . , " .. .. . . right of. way line, a distance of 67.00 feet to the POINT OF BEGINNING. , , . AFFIDAVIT TO AUTHORIZE AGENT STATE OF FLORIDA COUNTY OF ()-o.n..~e.- THE GRAND BELLAGIO AT BA YW A TCH CONDOMINIUM ASSOCIATION, INC., a non-profit Florida corporation, being first duly sworn depose(s) and say(s): 1. THE GRAND BELLAGIO AT BA YW A TCH CONDOMINIUM ASSOCIATION, INC., is the owner and record title holder of the property described on Exhibit "A" attached hereto (the "Property"). 2. That this Property constitutes a portion of the land for which a request for a Community Development District is being applied for to the City Commission of the City of Clearwater. 3. That the undersigned (haslhave) appointed W. Scott Callahan and Thomas A. Cloud as (his/their) agent(s) to execute any permits or other documents necessary to affect such permit. 4. That this affidavit has been executed to induce the City of Clearwater, Florida, to consider and act on the above-described Property. 5. That the undersigned authority hereby certifies that the foregoing is true and correct. . THE GRAND BELLAGIO AT BAYW A TCH CONDOMINIUM ASSOCIATION, INC., a non-profit Florida corporation BY:~~ ~ Name: David W Schwarz Title: President . . STATE OF FLORIDA COUNTY OF (JVQ 1'\y ~...J... L, <:t- "^1"r::.mQ~ The foregoing instrument was acknowledged before me this 1 y day of-nrty, 2005 by David W Schwarz, President of The Grand Bellagio at Baywatch Condominium Association, Inc., a non-profit Florida corporation, who is personally known to me or who has produced _ as identification. - co~ Si~ature Oft~ h. . J. ~c QY) Printed Name of Notary Commission Expires: u:\wsc.cti<no o;recIar)'II1J7I04125J\AfflDA vrr AlTIHORIZE AGEIIT -1dI0ai0_doc W. seem CALLAHAN MV COMMISSION. CD amss EXPIRES; JIIlUIIY 27, aooe IlOIIdId Thill NolIrt ~ U~ . . I . \ . EXHU(rr "A" DESCRIPTION 0.' PROPERTY A certain S fOOl strip of land lying In Seclion 20, Township 29 SoUlh, Range 16 BISI, Plnellas Counly, Florida, as described in OffICial Records Book 3528, Page 521 and being more particularly described as Collow; Commence allho Soulhwell corner ofuld Section 20 IIld run Soulh 89'19'48" Ellt, along the South line of said Scctioo 20, a dislance of I 00.0 1 feel 10 the Poinl ofB eginnln8, loaving .aid Soulh line, Thence North 01'26'21" Bill, a distance of5.00 feel; Thence South 89019'48" Eut, a dislanoo oC609.99 feeti Thenco Soulh 01 "26'21' Wesl, a distance of 5.00 feel; Thence North 89' 19'48" We.l. a dislance of 609.99 Ceotlo tho Point of Bog inning. . .