General Information:

The Flow Way Community Development District is an independent special district established pursuant to Chapter 190, Florida, Statutes. Collier County, Florida established the District on March 4, 2002 by Ordinance No. 02-09 of Collier County, (the “Ordinance”). The District was established for two primary public purposes: First, is to finance, construct/acquire the required infrastructure required for the Community. This infrastructure consisted of the construction/acquisition of a water management system, underground water and sewer utilities, which utility facilities are dedicated to Collier County for ownership, operation and maintenance, landscaping, wetland mitigation and off-site improvements.

District Boundaries:

Esplanade of Naples (the “Development”) served by the Flow Way Community Development District, (the “District”) is located in Collier County, Florida lying within Sections 15 & 22, Township 48 South, Range 26 East. More precisely the main project is located northeast of the intersection of Immokalee Road and County Road 951.

Legal Powers and Authority

The Act was enacted in 1980 to provide a uniform method for the establishment of independent districts to manage and finance basic community development services, including capital infrastructure required for community developments throughout the State of Florida. The Act provides legal authority for community development districts (such as the District) to finance the acquisition, construction, operation and maintenance of the major infrastructure for community development pursuant to its general law charter (Sections 190.006 through 190.041, Florida Statutes).

Among other provisions, the Act gives the District’s Board of Supervisors the authority to (a) plan, establish, acquire, construct or reconstruct, enlarge or extend, equip, operate and maintain systems and facilities for: (i) water management and control for lands within the District and to connect any of such facilities with roads and bridges; (ii) water supply, sewer and waste-water management systems or any combination thereof and to construct and operate connecting intercept or outlet sewers and sewer mains and pipes and water mains, conduits, or pipelines in, along, and under any street, alley, highway, or other public place or ways, and to dispose of any effluent, residue, or other byproducts of such system or sewer system; (iii) District roads equal to or exceeding the specifications of the County in which such district roads are located and street lights; and (iv) with the consent of the local general-purpose government within the jurisdiction of which the power is to be exercised, (a) parks and facilities for indoor and outdoor recreational uses and security; (b) borrow money and issue bonds of the District; (c) impose and foreclose special assessments liens as provided in the Act; and (d) exercise all other powers, necessary, convenient, incidental or proper in connection with any of the powers or duties of the District stated in the Act.

The Act does not empower the District to adopt and enforce any land use plans or zoning ordinances and the Act does not empower the District to grant building permits; these functions are to be performed by general purpose local governments having jurisdiction over the lands within the District.

The Act exempts all property owned by the District from levy and sale by virtue of an execution and from judgment liens, but does not limit the right of any owner of lands of the District to pursue any remedy for enforcement of any lien or pledge of the District in connection with its bonds, including the Series 2006 Bonds.