On October 24, 2007, the Florida Land and Water Adjudicatory Commission (the “Commission”) received a Petition to adopt an amendment to Rule Chapter 42AAA-1, F.A.C., to amend the boundary of the Palm Coast Park Community Development District (the “District”) pursuant to Chapter 190, F.S. Petitioner asserts a copy of the Petition was filed with the City of Palm Coast and Flagler County. The Commission will follow the requirements of Chapter 190, F.S., and Chapter 42-1, F.A.C., in ruling on this Petition.

SUMMARY OF CONTENTS OF PETITION: The Petition was filed by the Palm Coast Park Community Development District with its registered office located at 4 Old Kings Road North, Suite B, Palm Coast, Florida 32137. The Petition proposes to modify the land area presently serviced by the District by amending its boundary to contract approximately 59 acres from the District located entirely within the City of Palm Coast and Flagler County, Florida. The District currently covers approximately 4,778 acres of land and after amendment the District will encompass approximately 4,719 acres. Petitioner has obtained written consent to amend the boundaries of the District from the owners of 100% of the real property comprising the contraction parcel. Petitioner asserts that, “consent by the Board of Supervisors of the District to amendment serves as consent by the existing landowners of real property remaining in the District, by law pursuant to Section 190.046(1)(e), Florida Statutes. This consent is evidenced by this petition.”

SUMMARY OF THE STATEMENT OF ESTIMATED REGULATORY COSTS: In association with the Petition, 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 “5” to the Petition. By way of summary, the SERC estimates the principal individuals and entities likely to be required to comply with the amended rule are the District, current and future property owners of District lands, the state, the City of Palm Coast, and Flagler County, Florida. The SERC estimates that rule amendment implementation and enforcement costs to the above-described entities will be minimal and/or are offset by the payment of requisite filing and annual fees; and, estimates there will be no negative impact on state and local revenues from the proposed amendment of the rule. With respect to an estimate of the transactional costs likely to be incurred by individuals and entities required to comply with the requirements of the rule, the SERC indicates that transactional costs are nominal. Additionally, the SERC indicates that the landowner is funding the boundary amendment process so it is not a cost to the District. Finally, the SERC concludes that the amendment of the District’s boundary will have no impact on small businesses and should not have a negative impact on small counties and cities as defined in Section 120.52, F.S. Flagler County is not defined as a small county and the City of Palm Coast is not defined as a small city as set forth in Section 120.52, F.S. According to the SERC, certain data was provided by the developer/petitioner and represents the best information available at the time. Other data was based on observation, analysis and experience with private development and other community development districts in various stages of existence.

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

DATE AND TIME:      Friday, January 4, 2008, 10:00 a.m.

PLACE:                          Palm Coast Holdings, Inc.

                                        Second Floor Conference Room

                                        One Corporate Drive

                                        Palm Coast, Florida 32137

Any person requiring a special accommodation to participate in the hearing because of a disability should contact: James T. Wolverton, Chiumento and Guntharp, PA, 4 Old Kings Road North, Suite B, Palm Coast, Florida 32137, (386)445-8900, 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: James T. Wolverton, Chiumento and Guntharp, PA, 4 Old Kings Road North, Suite B, Palm Coast, Florida 32137, (386)445-8900; or Barbara Leighty, Executive Office of the Governor, The Capitol, Room 1801, Tallahassee, Florida 32399-0001, (850)487-1884.