AMENDED AND RESTATED

ENGINEER'S REPORT FOR
VERONAWALK COMMUNITY DEVELOPMENT DISTRICT

PREPARED FOR: BOARD OF SUPERVISORS
VERONAWALK COMMUNITY DEVELOPMENT DISTRICT

PREPARED BY: WILSONMILLER, INC.
3200 BAILEY LANE, SUITE 200
NAPLES, FLORIDA 34105

AMENDED April 2006

PIN: N0506-800-002 TASK: GCCDD

4/17/2006- 1030 Ver: 01!- MSPERRY
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TABLE OF CONTENTS

SECTION

INTRODUCTION	1
DISTRICT BOUNDARY AND PROPERTIES SERVED	4
PROPOSED PROJECT INFRASTRUCTURE	4
OPINION OF PROBABLE CONSTRUCTION COSTS	7
OWNERSHIP AND MAINTENANCE AUTHORITY	8
STATUS OF PERMITS AND APPROVALS	8
CONCLUSION AND ENGINEER’S OPINION	8
TABLES

TABLE 1	LAND USE SUMMARY	3	
TABLE 2	OPINION OF PROBABLE COSTS FOR THE PROJECT INFRASTRUCTURE	
7	
TABLE 3	PROPOSED FACILITIES AND SERVICES	8	

EXHIBITS

EXHIBIT 1 - LOCATION MAP AND DISTRICT BOUNDARIES	2

APPENDIX

APPENDIX 1 - LEGAL DESCRIPTION AND SKETCH	8

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INTRODUCTION

Description of the Winding Cypress Community

Winding Cypress is a 1,928± acre master planned, residential community in southeast Collier County which is generally bordered on the west by the C.R. 951 canal, the Florida Water Services borrow pit lakes, C.R. 951, and Lely, A Resort Community PUD; on the north by Sabal Palm Road, a plant nursery, and single family residences; on the east by agriculturally zoned and unplatted property, the Picayune State Forest, and Naples Reserve Golf Club PUD; and on the south by the U.S. 41 canal, U.S. 41, agriculturally zoned property, Greystone Trailer Park, and a small convenience commercial store. The location of the community is shown on Exhibit 1.

A Community Development District (herein called the "District") will encompass a 760± acre portion of Winding Cypress, the Veronawalk Development, as shown on Exhibit 1. The District will construct, operate and maintain infrastructure to support the community. The District will be fully amenitized and currently plans to offer approximately 2,000 single family residential units, a town center, a water management system, wetland preserves, full utility infrastructure, and landscaped roadways. The legal description of the District can be seen in Appendix 1. A land use summary is presented in Table 1.

Construction of the master infrastructure needed to support the portion of the Winding Cypress development located in the District (also referred to as Veronawalk) started in October, 2003 is proceeding in a planned, phased manner. Construction is expected to be complete by October, 2009.

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Exhibit 1 LOCATION MAP AND DISTRICT BOUNDARIES

Purpose and Scope of the Report

The purpose of this report to provide a description of the Winding Cypress community and the District which will serve a 760 acre portion of the community (also referred to as Veronawalk); the capital improvements to be constructed and financed by the District; and an apportionment of the costs for the capital improvements. The financing and assessment methodology will be developed by the District's financial advisor. This report is being Amended and Restated for the Series 2006 Bond issuance.

TABLE 1
LAND USE SUMMARY WITHIN THE DISTRICT BOUNDARIES

Type of Use	Acres	% of Total	
Town Center	8.6	1.1	
Lake	177.5	23.4	
Residential	285.4	37.5	
Right-of-way	115.7	15.2	
FPL Easement	26.3	3.5	
Temporary Sales Facility / Construction Storage	3.7	0.5	
Preserve Areas	24.0	3.2	
Other (Open Space, Buffers, etc.)	118.8	15.6	
TOTAL	760.0	100.0	

DISTRICT BOUNDARY AND PROPERTIES SERVED

District Boundaries

Exhibit 1 delineates the proposed boundaries of the District. The District is surrounded by the C.R. 951 canal, the Florida Water Services borrow pit lakes, C.R. 951, and Lely , A Resort Community PUD on the west; Sabal Palm Road, a plant nursery, and single family residences on the north; agriculturally zoned and unplatted property, the Picayune State Forest, and Naples Reserve Golf Club PUD on the east; and U.S. 41 canal, U.S. 41, agriculturally zoned property, Greystone Trailer Park, and a small convenience commercial store on the south.

Description of Properties Served

The District is located within a portion of Sections 26, 34 and 35, Township 50 South, Range 26 East, Collier County, Florida. The existing land within the District consists of upland, wetland, and exotic species. The terrain is flat with elevations ranging from 4.0 to
10.0 feet NGVD.

2.3	Existing Infrastructure

The project is currently under construction and a substantial amount of infrastructure is currently complete to include a 1-mile offsite force main extension, 176 acres of lake excavation, and 11 miles of roadway and associated utilities.

PROPOSED PROJECT INFRASTRUCTURE

Summary of the Proposed Project Infrastructure

The project infrastructure will generally consist of the following:

Water Management
Utilities
Off-site improvements

The district can acquire, construct, own, and operate any or all of the above project infrastructure. The Developer will complete any project infrastructure enumerated in this engineer’s report not acquired or constructed by the District.

Water Management

The stormwater management system will consist of approximately 178 acres of excavated stormwater management ponds, culverts, catch basins, swales, and water control structures. Stormwater runoff from the areas within the project will be routed to the stormwater management ponds for water quality treatment and water quantity storage. The stormwater will be subsequently released via water control structures.

The stormwater management system will be designed in accordance with the South Florida Water Management District standards. These regulations set minimum criteria for water quality treatment and flood protection.

Utilities

The utilities within the project will consist of water, sewer, and irrigation systems. The project is located within the Collier County Utilities Service area. The water and sewer will be designed and constructed in accordance with Collier County Utilities and Florida Department of Environmental Protection standards. The water and sewer utilities will be dedicated to Collier County Utilities for ownership and operation.

The potable water facilities will include both transmission and distribution mains along with necessary valving, fire hydrants and water services to individual lots and development parcels.

The wastewater facilities will include gravity collection mains with individual lot sewer services, collection system pump stations, and force mains to connect to the existing utility system. It is proposed to provide connection to the existing Collier County Utility system at Collier Boulevard.

Irrigation service to the project will need to be provided by ground and surface water withdrawals from groundwater sources and on-site freshwater lakes, as permitted through SFWMD, until such time that effluent transmission infrastructure is constructed and Collier County effluent is available to serve the project.

The project is located within the franchise areas of Florida Power and Light, Sprint, and Comcast. These utilities will provide electrical power, telephone service and television cable to the project.

Off-Site Improvements

Offsite improvements include the extension of a 12” forcemain approximately 5,000 linear feet that supplies sewer service to the project.

OPINION OF PROBABLE CONSTRUCTION COSTS

Table 2 presents a summary of the costs for the project infrastructure derived from expected quantities of infrastructure multiplied by unit costs typical of the industry in Southwest Florida. To the subtotals, technical services are added which includes the planning, land surveying, engineering, environmental permitting, and landscape architecture services necessary for the design, permitting, and construction contract management for the project infrastructure. The costs do not include the legal, administrative, financing, operation, or maintenance services necessary to finance, construct, and operate the project infrastructure.

TABLE 2
OPINION OF PROBABLE COSTS FOR THE PROJECT INFRASTRUCTURE

Infrastructure	Cost	
Water Management	$11,710,000	
Drainage Structures	$3,020,000	
Potable Water System	$2,330,000	
Sanitary Sewer System	$5,370,000	
Offsite Improvements	$517,308	
Technical Fees	$1,150,000	
Subtotal	$24,097,308	
Contingency @ 16%	$3,855,569	
TOTAL	$27,952,877	

As shown above the cost of the Total Project is estimated to be $27,952,877. The Series 2004 Bonds previously funded infrastructure in the amount of $6,795,507. The Series 2006 Project is estimated to cost $8,573,274 and will be funded with the proceeds of the Series 2006 Bonds. It is contemplated that the balance of the Total Project will be funded by the developer.

OWNERSHIP AND MAINTENANCE AUTHORITY

TABLE 3
VERONAWALK COMMUNITY DEVELOPMENT DISTRICT PROPOSED FACILITIES AND SERVICES

Facility	Funded By	O&M	Ownership	
Water/Sewer Utilities	CDD	County	County	
Stormwater Management	CDD	CDD	CDD	
Off-site Improvements	CDD	County	County	

CDD = Veronawalk Community Development District County = Collier County

STATUS OF PERMITS AND APPROVALS

All major permits including the South Florida Water Management District Environmental Resources Permit and the US Army Corps of Engineers Permit for the master and subdivision improvements have been obtained. Any other required development permits/approvals will be obtained in the normal course of development.

CONCLUSION AND ENGINEER’S OPINION

It is my professional opinion that the infrastructure costs associated herein for the District improvements are reasonable to complete the construction of the infrastructure described herein and that these infrastructure improvements will benefit and add value to the District. All infrastructure costs are public improvements or community facilities as set forth in section 190.012(1) and (2) of the Florida Statutes. The estimate of infrastructure construction costs is only an estimate and not a guaranteed maximum price. The estimated cost is based on current unit prices for ongoing and similar items of work in Collier County for the quantities as represented on construction plans. The future costs of labor, equipment, and material; coupled with changing regulations and construction process, are beyond our control. Due to this inherent opportunity for fluctuation of cost, the total final cost may be more or less than this estimate. Assuming project construction continues in a timely manner, it is our opinion that the proposed improvements, if constructed and built in substantial accordance with the approved plans and specifications, can be completed and meet their intended functions. Where necessary, historical costs and information from other professional or utility consultants and

contractors have been used in preparation of this report. Consultants and contractors who have contributed in providing the cost data included in this report are reputable entities in the Collier County area. It is therefore our opinion that the construction of the proposed project can be completed at the cost stated.

David S. Wilkison
Florida Registered Engineer #38871 WilsonMiller, Inc.
Eng. Bus Certificate of Authorization No.
43
Date:	 Phone: 850-837-7967 / Fax: 850-837-7968

APPENDIX 1

VERONAWALK LEGAL DESCRIPTION AND SKETCH