MINUTES OF MEETING HAMMOCK RESERVE
COMMUNITY DEVELOPMENT DISTRICT

The Regular meeting of the Board of Supervisors of the Hammock Reserve Community Development District was held Tuesday, September 15, 2020 at 1:15 p.m. via Zoom Teleconference, pursuant to Executive Order 20-69, issued by Governor DeSantis, as  amended and supplemented.

Present and constituting a quorum:

Rennie Heath Lauren Schwenk Patrick Marone Matthew Cassidy

Also present were:

Jill Bums Michelle Rigoni Roy Van Wyk Bob Gang Ashton Bligh April Payeur

FmST ORDER OF BUSINESS

Chairman  Vice Chairman
Assistant Secretary Assistant Secretary

District Manager, GMS Hopping Green & Sams Hopping Green & Sams Greenberg Traurig Greenberg Traurig Developer's Office

Roll Call

Ms. Burns called the meeting to order and called the roll. There were four members present via zoom constituting a quorum.

SECOND  ORDER OF BUSINESS	Public Comment Period
Ms. Burns stated that there were no members joining the meeting via Zoom or by the phone
line.

THIRD ORDER OF BUSNESS

Approval of Minutes of the August 12, 2020 and August 18, 2020 Board of Supervisors Meeting

On MOTION by Mr. Marone, seconded by Mr. Cassidy, with all in favor, the Minutes of the August 12, 2020 and August 18, 2020 Board of Supervisors Meeting, was approved.

Ms. Bums presented the August 12, 2020 and the August 18, 2020 Board of Supervisors meeting minutes and asked for any comments, changes, or corrections. The Board had no changes or corrections to the minutes.

FOURTH ORDER OF BUSINESS	Consideration	of	Resolution	2020-38
Delegated Award Resolution
Form of First Supplemental Trust Indenture
Form of Bond Purchase Contract
Form of Preliminary Limited Offering Memorandum
Form of Rule 15c2-12 Certificate
Form of Continuing Disclosure Agreement
Ms. Bligh noted that the delegation resolution was contemplated when the Board adopted the bond resolution in December 2019. It contains documents as exhibits to sell one series of bonds, the Assessment Area 1 Bond. The fonns of these documents include a First Supplemental Trust Indenture, a Bond Purchase Contract, a Preliminary Limited Offer Memorandum, a Rule I5c2-12 Certificate, and a Continuing Disclosure Agreement. Florida law requires certain findings, which are under Section 4, that a public offering does not need to be done. Due to the complexity of the financing having a negotiated sale, it is in the best interest of the District for the underwriter to assist in obtaining the most attractive financing. The bonds will be issued only to accredited investors and the District will not be adversely affected if the bonds are not sold via competitive sale. Under Section 5 there are certain parameters, which include optional redemption of the bond no later than November 1, 2032. It also has the interest rate on the Assessment Area I Bonds that shall not exceed an average net interest cost rate and includes the calculations as such. The aggregate principle amount of the Assessment Area I Bond shall not exceed $7,000,000 and the Assessment Area I Bond shall have a maturity not later than the maximum tenn allowed by Florida law. The price at which the Assessment Area 1 Bond shall be sold to the underwriter shall not be less than 98% of the aggregate base amount of the Assessment Area 1 Bonds. Ms. Bligh asked if there were any questions on the Delegation Resolution.
Mr. Gang noted that there was a date of May  I,  2032 in the  version  of  the bond that was
printed in the agenda and he wanted to clarify that the date was updated to November 1,  2032. To

On MOTION by Mr. Heath seconded by Mr. Cassidy, with all in favor, Resolution 2020-38 Delegated Award Resolution, was approved.

which Ms. Bligh answered yes, SMS had provided to do a standard November 1, 2032 in all delegation resolutions.

FIFTH ORDER OF BUSINESS	Appointment of Audit Committee and
Chairman
Ms. Burns asked that the Board appoint themselves as the Audit Committee.

On MOTION by Mr. Rhinehart, seconded by Mr. Cassidy, with all in favor, Appointment of the Board of Supervisors as the Audit Committee, was approved.

SIXTH ORDER OF BUSINESS	Consideration	of	Supplemental
Assessment Methodology (Phase 1)
Ms. Bums reviewed the tables in the Assessment Methodology. Table 1, the development program, shows 144 units under contract by builders that are not Meritage and then the Meritage lots are separated out to 87 units. They all have the same ERU. Table 2 outlines the Capital Improvement Plan for Phase 1. Table 3 shows a bond sizing of $5,330,000. Table 4 shows the improvement cost per product type and they are broken down by the entities that are under contract. Table 5, there is a developer contribution for the 87 Meritage lots which is bringing the par debt per unit down to $22,638. The par debt per _unit on the rest of the lots under contract are $23,337. Table 6 shows the net and gross debt assessments per unit. The net assessments for the Meritage lots is $1,310 annually and the net debt assessment on the all other lots is $1,350. The difference there is the developer contribution which us lowering the annual assessment amount. Table 7 shows the preliminary assessment role with all the debt allocated by acreage, it is currently owned by JMBI. There is a legal description attached as well as a map that defines those areas under contract. She asked if there were any questions or comments on the Assessment Methodology.
Ms. Rigoni asked if the Supplemental Assessment Methodology was consistent with the Master Report, to which Ms. Burns answer yes. Ms. Rigoni asked if the land subject to the special assessments receive benefits that are equal to or exceeding the assessments that are levied; Ms. Bums Answered yes. Ms. Rigoni asked is Ms. Bums's opinion, that it is reasonably and fairly allocated per the methodology; Ms. Bums again answers yes.

On MOTION by Mr. Heath, seconded by Ms. Schwenk, with all in favor, the Supplemental Assessment Methodology (Phase I), was approved.

SEVENTH ORDER OF BUSINESS
Attorney
Ms. Rigoni noted she had nothing to report.

Staff Reports

Engineer
There being none, the next item followed.

District Manager's Report
Approval of Check Register
Ms. Bums stated that the check register included in the agenda is from August 10th though September 7th, the total is $728.65.

On MOTION by Mr. Heath, seconded by Mr. Marone, with all in favor, the Check Register, was approved.

Balance Sheet & Income Statement
Ms. Bums states that financials are included in the packet for review and there is no action necessary unless there are any questions.

EIGHTH ORDER OF BUSINESS	Other Business
Ms. Schwenk had a question about debt service reserve. She noted that on the newer issuances, the debt service goes back to the construction account and is able to be returned  upon all the lots closing to the third party builder. She asked if it is ever assigned to go back to the developer or a particular land owner and not go to the construction account.
Mr. Gang answered  for tax reasons, being bond  proceeds,  if it is not needed  as a reserve
and it is initially designated as a reserve, it needs to go either to redeem bonds or for some other legitimate purpose, for instance to pay for infrastructure. But it would need to have an audit trail for the IRS. To just say it would be paid out of the CAP-I account to developer ''x", would not be sufficient. This way it goes to an acquisition account  and a  requisition  is available and there  is a

record of what it was spent on. It is needed for protection in the event of tracing all the money for good costs, in the event of an audit.

NINffl ORDER OF BUSINESS	Supervisors	Requests Audience comments

and

There being none, the next item followed.

TENTH ORDER OF BUSINESS	Adjournment

On MOTION by Ms. Schwenk, seconded by Mr. Marone, with all in favor, the meeting was adjourned..

Ms. Burns adjourned the meeting.

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