RECEIPT OF PETITION TO MERGE THE SEVEN OAKS COMMUNITY DEVELOPMENT DISTRICT I AND THE SEVEN OAKS COMMUNITY DEVELOPMENT DISTRICT II

On June 16, 2008, the Florida Land and Water Adjudicatory Commission (“FLWAC” or “Commission”) received a petition to merge the Seven Oaks Community Development District I and the Seven Oaks Community Development District II. The petition was supplemented with additional information. The Commission will follow the requirements of Chapter 42-1, Florida Administrative Code (FAC), as amended, and Chapter 190, Florida Statutes (F.S.), as amended, in ruling on this petition.

SUMMARY OF CONTENTS OF PETITION: The petition, as supplemented, filed by the Seven Oaks Community Development District I (“Seven Oaks CDD I”) and the Seven Oaks Community Development District II (“Seven Oaks CDD II”) (together, “Petitioners”), requests the merger of the Seven Oaks CDD I and the Seven Oaks CDD II. On January 14, 2009, the Seven Oaks CDD I and the Seven Oaks CDD II adopted resolutions approving a amended merger agreements. The amended merger agreements, among other things, makes provision for the filing of a petition, the proper allocation of the indebtedness, and the manner in which debt is to be retired. The amended merger agreements are contained as Second Supplemental Exhibit K-1 to the petition, as supplemented. The proposed merged District is located entirely within the unincorporated area of Pasco County, Florida and contains approximately 1,759 acres. Petitioners represent the resolutions approving the merger agreements, as amended, and the approved merger agreements for merger of the Districts by the Petitioners’ board of supervisors elected by the electors of the district constitutes consent to merge the boundaries of the Seven Oaks CDD I and the Seven Oaks CDD II. Both Seven Oaks CDD I and Seven Oaks CDD II are completely built out and there is no additional construction planned for either of the districts.

SUMMARY OF ESTIMATED REGULATORY COSTS: The statement of estimated regulatory costs (SERC) supports the petition, as supplemented, to merge the Seven Oaks CDD I and the Seven Oaks CDD II. The complete text of the SERC is contained as Exhibit H to the petition, as supplemented. 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 proposed merged District, the State of Florida and its residents, Pasco County, current property owners of lands within the boundaries of the proposed merged District and future property owners are the principal entities that are likely to be required to comply with the rule. Under Section (b), FLWAC and the State of Florida will incur administrative costs. Pasco County may incur costs resulting from the initial review and on-going costs resulting from the on-going administration of the proposed merged District. There is a filing fee paid to Pasco County to offset any costs it may incur. Adoption of the proposed rule to merge the boundaries of the Seven Oaks CDD I and the Seven Oaks CDD II will not have any negative impact on State and local revenues. Addressing Section (c), to fund the cost of maintaining improvements owned by the District, operation and maintenance assessments may be imposed on the proposed merged District owners. As with special assessments for improvements acquisition and construction, the property owner will be responsible for payment of assessments on the basis of the amount of benefited property owned. Under section (d), approval of the petition to merge the Seven Oaks CDD I and the Seven Oaks CDD II will have no impact or a positive impact on small businesses. The petition to merge the Districts will not have an impact on small counties a Pasco County is not a small county as defined by Section 120.52, F.S. Under section (e), the data utilized in the SERC was provided by the developer/petitioner and represents the best information available at this time.

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

DATE AND TIME:     Thursday, July 16, 2009, 9:30 a.m.

PLACE:                         Office of Rizzetta & Company, Inc.

                                       5844 Old Pasco Road

                                       Suite 100

                                       Wesley Chapel, Florida

Any person requiring a special accommodation to participate in the hearing because of a disability should contact: Mark Straley, Straley & Robin, 101 East Madison Street, Suite 300, Tampa, Florida 33602, (813)223-9400 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: Mark Straley, Straley & Robin, 101 East Madison Street, Suite 300, Tampa, Florida 33602, (813)223-9400, or Barbara Leighty, Executive Office of the Governor, The Capitol, Room 1801, Tallahassee, Florida 32399-0001, (850)487-1884.