On February 13, 2006, the Florida Land and Water Adjudicatory Commission (the “Commission”) received a Petition (Petition was supplemented August 22, 2006) to adopt an amendment to Chapter 42AA-1, F.A.C., to amend the boundary of the Poinciana Community Development District (the “District”) pursuant to Chapter 190, F.S. Petitioner asserts a copy of the Petition was filed with both Polk County and Osceola County in compliance with Section 190.046, F.S. The Commission will follow the requirements of Chapter 190, F.S., and Chapter 42-1, F.A.C., in ruling on this Petition, as supplemented.

SUMMARY OF CONTENTS OF PETITION: The Petition, as supplemented, was filed by the Poinciana Community Development District with its registered office located at 123 South Calhoun Street, Tallahassee, Florida 32301. The Petition, as supplemented, proposes to modify the land area presently serviced by the District by amending its boundary to add approximately 212.65 acres. (The District was originally established by Rule 42AA-1, F.A.C., effective November 1, 1999.) The District currently covers approximately 3,028 acres of land located entirely within Polk County, Florida. After expansion, the District will encompass approximately 3,240 acres. There are no lands within the expansion parcel that are to be excluded from the District. Petitioner has written consent to amend the boundary of the District from the owners of one hundred percent of the real property comprising the expansion parcel. Pursuant to Section 190.046(1)(e), F.S., the filing of the Petition, as supplemented, for expansion by the District Board of Supervisors constitutes consent of the landowners. The development plan that was included in the original Petition to establish the District consisted of 5,600 residential units and 140,000 square feet of commercial and office space. Petitioner indicates that the development plan within the District has been modified. The proposed 212.65 acre expansion area will include single family residential units that will be added to the overall development schedule. No additional residential or non-residential development is anticipated as a result of the expansion of the District’s boundary.

SUMMARY OF THE STATEMENT OF ESTIMATED REGULATORY COSTS: In association with the Petition, as supplemented, the Petitioner has caused a Statement of Estimated Regulatory Costs (“SERC”) to be prepared in compliance with Section 120.541, F.S. The complete text of the SERC is contained at Exhibit “8” to the Petition, as supplemented. By way of summary, the SERC estimates the principal individuals and entities likely to be required to comply with the amended rule are the single family residential households that locate within the proposed expansion area. The SERC estimates that rule amendment implementation and enforcement costs to the Commission and state agencies will be modest. The costs to Polk and Osceola Counties are modest and will be offset by the payment of requisite filing and annual fees. The SERC estimates there will be no effect on state and local revenues from the proposed amendment of the rule. The SERC indicates the District may levy non-ad valorem special assessments on properties within its boundaries to finance infrastructure that the District funds and to defray the costs of operating and maintaining the infrastructure and associated community facilities. Prospective future landowners would be required to pay off such indebtedness over time in the form of non-ad valorem special assessments or other rates, fees or charges. The District may also impose an annual levy for the operations and maintenance of the District. The SERC further provides the decision to locate within the District is completely voluntary. The SERC concludes that the expansion of the District’s boundary will have no impact on small businesses. As to impact on small counties, neither Polk nor Osceola Counties are “small” counties as defined by Section 120.52, F.S. The SERC analysis is based on a straightforward application of economic theory. Input was received from the developer’s engineer and other professionals associated with the developer.

A LOCAL HEARING WILL BE HELD AT THE TIME, DATE AND PLACE SHOWN BELOW:

DATE AND TIME: Wednesday, November 15, 2006, 1:30 p.m.

PLACE: Poinciana Community Development District, Ballroom, 388 Village Drive, Poinciana, Florida 34759

Any person requiring a special accommodation to participate in the hearing because of a disability should contact Michael C. Eckert and Paula M. Sparkman (850)222-7500, at least two (2) business days in advance in order to provide sufficient opportunity to make appropriate arrangements.

COPIES OF THE PETITION MAY BE OBTAINED BY CONTACTING: Michael C. Eckert or Paula M. Sparkman, Hopping Green & Sams, P.A., Post Office Box 6526, Tallahassee, Florida 32314, Telephone (850)222-7500, or Barbara Leighty, Florida Land and Water Adjudicatory Commission, Office of Policy and Budget, Executive Office of the Governor, The Capitol, Room 1801, Tallahassee, Florida 32399-0001, Telephone (850)487-1884.