NOTICE OF RECEIPT OF PETITION

SOUTHEASTERN COMMUNITY DEVELOPMENT DISTRICT

On February 2, 2007, the Florida Land and Water Adjudicatory Commission (“FLWAC” or “Commission”) received a petition to establish the Southeastern Community Development District (the “District”). A revision to the petition was submitted on February 14, and March 15, 2007. The Commission will follow the requirements of Chapter 42-1, Florida Administrative Code (F.A.C.), as amended, and Chapter 190, Florida Statutes (F.S.), as amended, in ruling on this petition, as revised.

SUMMARY OF CONTENTS OF PETITION: The petition, as revised, filed by The St. Joe Company requests the Commission establish a community development district located entirely within the City of Tallahassee, and unincorporated Leon County, Florida. The land area proposed to be served by the District comprises approximately 1,034.98 acres. A general location map is contained as Exhibit 1 to the petition, as revised, to establish the District. The proposed land area is generally located north of Tram Road, east of Capital Circle S. E. and south of Apalachee Parkway. There are two out-parcels located within the external boundaries of the proposed District to be excluded from the District. The current owners’ names and addresses of the two out-parcels are contained in the petition, as revised. The Petitioner either owns or has obtained written consent to establish the District from the owners of 100% of the real property located within the proposed District. The current plans within the District boundaries envision approximately 1,184 single family homes, 222 townhomes, 28 villas, 451 apartments and 200,000 square feet of commercial and office space. The District plans to finance certain master infrastructure improvements within the District boundaries. These improvements include roadways, entrance features, recreation improvements and storm water management facilities.

SUMMARY OF ESTIMATED REGULATORY COSTS: The statement of estimated regulatory costs (SERC) supports the petition, as revised, to establish the District. The complete text of the SERC is contained as Exhibit 8 to the petition, as revised. The requirements for a SERC are found in Section 120.541(2), F.S. A SERC must contain (a) a good faith estimate of the number of individuals and entities likely to be required to comply with the rule, together with a description of the types of individuals likely to be affected by the rule; (b) a good faith estimate of the costs to the agency, and to any other state and local government entities, of implementing and enforcing the proposed rule, and any anticipated effect on state or local revenues; (c) a good faith estimate of the transactional costs likely to be incurred by individuals and entities, including local governmental entities, required to comply with the requirements of the rule; (d) an analysis of the impact on small businesses as defined by Section 288.703, F.S., and an analysis of the impact on small counties and small cities as defined by Section 120.52, F.S.; (e) any additional information that the agency determines may be useful; and (f) any good faith written proposal submitted under section (a) and either a statement adopting the alternative or a statement rejecting the alternative in favor of the proposed rule. Addressing section (a), the District, the State of Florida, the City of Tallahassee, and Leon County are principal entities that are likely to be required to comply with the rule. In addition, current and future property owners will be affected by the establishment of the proposed District. Under section (b), FLWAC and the State of Florida will incur administrative costs. The City of Tallahassee and Leon County will incur costs resulting from the initial review and on-going costs resulting from the on-going administration of the District. There is a $15,000 filing fee paid to the City of Tallahassee and Leon County to offset any costs it may incur. Adoption of the proposed rule to approve the formation of the District will not have an adverse impact on State and local revenues. Addressing section (c), 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. The District may issue notes, bonds, or other indebtedness to fund its improvement program. Prospective future land owners 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 operation and maintenance of the District. Under section (d), approval of the petition, as revised, to establish the District will have no impact or a positive impact on small businesses. The petition, as revised, to establish the District will not have an impact on small cities or small counties as defined by Section 120.52(17), F.S., as the City of Tallahassee and Leon County are not defined as a small city or small county. Under section (e), the analysis provided in the SERC was 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: Tuesday, June 5, 2007, 9:30 a.m.

PLACE:      Division of Administrative Hearings

                    (check the reception area for hearing room assignment)

                    The DeSoto Building

                    1230 Apalachee Parkway

                    Tallahassee, Florida

Any person requiring a special accommodation to participate in the hearing because of a disability should contact Brian Crumbaker, (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, as revised, may be obtained by contacting: Brian Crumbaker, Hopping, Green and Sams, Post Office Box 6526, Tallahassee, Florida 32314, (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, (850)487-1884.