Notice of Filing of 2006 Complaint

In December of 2004, the law firm of Shell, Fleming, Davis & Menge filed suit on behalf of a large group of Pensacola Beach residential lessees to contest taxation of their leasehold interests in the fixed improvements erected on their leased property as real property (Case Number: 2004-CA-002290). Each new tax year requires the filing of a separate lawsuit for that year. Last year, Case Number 2005-CA-002331 cited the same allegations against Chris Jones, Escambia County Property Appraiser and Janet Holley, Escambia County Tax Collector with a much shorter list of plaintiffs. The impact of Hurricane Ivan resulted in a $0 tax bill for a large number of 2004 plaintiffs, who could not be named as parties in the 2005 complaint. This did not affect participation in the 2004 lawsuit. When the 2006 tax roll is certified this October, leaseholders will have 60 days to file suit challenging the 2006 ad valorem taxes. It is anticipated that a number of the 2004 plaintiffs will be returned to the 2006 tax role and will once again be listed as plaintiffs in the 2006 complaint. It is also likely that there will be new plaintiffs to the 2006 complaint, who acquired leasehold interest in residential property during 2006.

Plaintiffs in the 2004 and/or 2005 lawsuit, whose leasehold interest in a specific parcel(s) named in the complaint has not changed and who are being assessed 2006 taxes on the improvements, will be named as parties to the 2006 complaint. There are no new documents or additional fees required of these plaintiffs at this time. As soon as a certified copy of the tax roll is available (around Nov. 1^st), the list of 2006 plaintiffs will be compiled. To provide an opportunity to review the plaintiff list before the complaint is filed in mid-December, a list of the carry over plaintiffs from 2004 and/or 2005 will be posted to web site (www.pbeachtaxsuit.com). The following points describe how plaintiffs will be named in the 2006 complaint:

• All plaintiffs with specific parcels listed in the 2004 and/or 2005 complaint who continued to hold leasehold interests in the same parcels as of January 1, 2006 will be named as plaintiffs in the 2006 lawsuit as long as they are certified on the 2006 tax roll with taxes assessed for improvements on leasehold properties.
• Any plaintiff in 2004 and/or 2005 with a $0 assessment for 2006 will not be named in the 2006 complaint. This does not affect participation in the 2004 or 2005 lawsuit.
• Any plaintiff in the 2004 and/or 2005 complaint who has assigned their leasehold interest to another party prior to January 1, 2006 will not be listed on the 2006 complaint. This does not affect standing in the 2004 or 2005 lawsuit, unless the leaseholder chooses to no longer participate.