1

Assessment Report Viera East Community Development District

Hank Fishkind, Ph.D.

© PFM

11-13-19

Requirements for Valid Special Assessments
 Two pronged test under Florida Law
 Special Benefit
Logical Relationship
Measured by: (a) increase in market value, (b) lower insurance rates, and/or (c) increased use and enjoyment
 Equitable Apportionment
Reasonable allocation consistent with benefits – cannot be arbitrary
Many recognized methods with ERU being most used
Case law recognizes that there is no “perfect” system, but if reasonable people may disagree, the District’s decision prevails

Special Benefit – Logical Relationship
 Logical relationship between facilities and special benefits
Facilities integral part of Viera from its outset
 Core amenities that attracted homebuyers
 Many recent studies confirm that amenities confer benefits to their communities

Special Benefit from Increased Market Value

Areas	Average Sales
Price/Square Foot
Wingate Estates	$163
Auburn Lakes	$158
=========
Viera Neighborhood Average	$160

Near By Non-CDD Properties	$153
=========
Viera East CDD Premium	$7

Viera Neighborhood Average Square
Foot of Homes	2,155
=========
Viera East CDD Premium/Home	$15,522

When Golf Courses Close Real Estate Values Fall Example of Royal Oaks – Course Closed 2015

Golf Front		

Not Golf Front	

Royal Oaks	

Sales Year	

Average
$/SF	

Units Sold	
Average #		

Average
$/SF	

Units Sold	
Average #	
				days on Market				days on Market	
	2015	$77	3	34		$71	31	94	
	2016	$93	2	62.5		$79	31	36	
	2017	$85	4	98		$94	26	56	
	2018	$105	2	12		$109	25	34	
	2019 YTD	$121	3	97		$108	29	59	
	Average	$96				$92			

Titusville	2015	$100	21	65		$89	133	78	
	2016	$142	16	96		$100	144	72	
	2017	$147	23	71		$114	178	52	
	2018	$144	30	68		$124	177	54	
	2019 YTD	$147	25	97		$128	150	60	
	Average	$136				$111			

Comparable Golf Communities				County‐Wide		
	2015	$131	130	73		$106	1974	58	
	2016	$142	127	70		$136	1995	52	
	2017	$157	125	67		$141	2208	50	
	2018	$159	113	71		$158	2439	56	
	2019 YTD	$155	134	72		$146	2257	66	
	Average	$149				$137			

Project Cost	 GOLF COURSE	
New Irrigation System	$2,080,000	
Bunker Renovation & Liners	$1,100,000	
Bulkhead replacement	$375,000	
Tee Box Renovation	$250,000	
Cart path extensions - repairs	$175,000	
Re-grass fairways and slopes	$150,000	
Maintenance Building repairs	$40,000	
Driving Range Tee - Level and enlarge	$35,000	
Golf Course Lake - Bank Augmentation	$275,000	
Rebuild #7 Green	$65,000	
Drainage #6 Left Rough	$30,000	
#11 Canal side - Rough regrade and grass	$25,000	
Fountain Aerators for #18 & #9	$27,500	
Drinking Water/Ice Stations #6 & #13	$32,000	
Irrigation Pump Station - Filter	$35,000	
Culvert Repair - #7 (2) - Butterfly Valve Irr.	$37,500	
SUBTOTAL	$4,732,000	
CLUBHOUSE
Clubhouse Renovation	
$2,900,000	
SUBTOTAL	$2,900,000	
OTHER RECREATIONAL FACILITIES
Woodside Park Restroom Building	
$25,000	
Dog Park - Woodside Park	$55,000	
Woodside Park Playground Equipment	$45,000	
Sidewalk repair and replacement	$75,000	
Picnic pavilions	$95,000	
SUBTOTAL	$295,000	
OTHER COSTS
Maintenance Equipment	
$395,000	
Lost Revenue - from renovation	$287,395	
Irrigation Pump Station Lease	$163,190	
SUBTOTAL	$845,585	
  Contingency	$250,000
  GRAND TOTAL	$9,022,585

Financing Plan

Category	Amount	
Project Fund	$9,022,585	
Debt Service Reserve	$284,550	
Capitalized Interest	$1,024,281	
Underwriter's Discount	$169,050	
Bond Insurance	$321,068	
Cost of Issuance	$200,000	
Surety Bond	$9,959	
Original Issue Discount	$238,179	
Rounding	$328
==========	
Series 2019 Bonds	$11,270,000	

Allocation Based on ERUs

Category	Residential Units	Commercial Acres	Total	
ERU/Unit	1.00	4.00		
Number of Units

Total ERUs	4,204.00
========= 4,204.00	204.30
=========
817.20	

5,021.20	
% ERU	84%	16%	100%	
Allocated Cost	$9,435,808	$1,834,192	$11,270,000	
Annual Debt Service	$952,958	$185,242	$1,138,200	
Debt/Unit	$2,244	$8,978		
Net Debt Service/Unit	$226.68	$906.72		
Gross Debt	$241.15	$964.59		
  Service/Unit