PENSACOLA BEACH
May 12, 2008 Meeting
               Can Escambia County Tax             Can the County Tax 
             The Improvements Only?              The  Land Also?
                   (current litigation)            (future litigation)
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NO YES              If  YES
(Leaseholders Win) (County Wins)             (County wins)
Impact to leaseholders Continue as now Pay lease fee on land          Most likely, lease fees would 
Pay lease fee and MSBU Pay tax on improvements               be cancelled - but leases would 
and MSBU                continue  (like Okaloosa)
(Not Applicable to  (This is current state of         Pay taxes on both the value of 
commercial lease- commercial leases)         land and improvements
holders who have lost         and MSBU tax
their case)
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If the County is successful  Leaseholder gets title              SAME SAME - But fee simple is 
and can offer fee simple   No more lease fees           more attractive in this scenario
title to leaseholders Pay taxes on the land and 
   on the improvements
   and MSBU tax
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Impact on the SRIA Continue as now               SAME           Most likely SRIA will be abolished
              OR            (Like Okaloosa Island Authority)
County May Seek to Abolish SRIA
   State Approval??  Bond Docs Issues??