FOR IMMEDIATE RELEASE

Contact: Pete Winton, Lee County Administration
              (239) 335-2777

SANIBEL LAWSUIT HALTS CAUSEWAY BOND FINANCING/COUNTY TO CONSIDER OPTIONS FOR INCREASED COSTS

FORT MYERS, Fla. (January 13, 2004) - The Board of Lee County Commissioners today was forced to halt the bond financing of the Sanibel Causeway bridges replacement because the county cannot get bond insurance for the issue after two lawsuits were filed Monday.

In addition, Moody's Investment has withdrawn its A3 bond rating for the bond issue.

The lawsuits were filed by the City of Sanibel and "Save Our Bay" organization. The county has 30 days to respond to the lawsuits.

The county had been scheduled to close on the $48.9 million bond sale today and Wednesday. The county now will have to go back out to the market with a new bond offering in several months.

The delay and inability to issue bonds now will have financial ramifications for the county and public. Higher financing costs could mean the county will have to consider eliminating discount toll programs for the Causeway and/or analyze whether the toll to cross the Causeway needs to be increased.

County attorneys and financial staff will analyze the impacts over the next several weeks. In the meantime, the Board at its next meeting (Jan. 20) will consider approving a $20 million loan from the county's General Fund Reserves to continue with the replacement of the Causeway's fixed spans (bridges B and C) and keep those projects on schedule. The loan could be for up to a year.

The Board also took the following actions in regards to the lawsuits (all votes were unanimous):

1. Authorized and directed staff and consultants to vigorously defend both lawsuits.

2. Reconfirmed that the county is committed to develop and construct a replacement fixed span for the current drawbridge.

3. Authorized limited county staff contact with the City of Sanibel until an answer is filed in the Sanibel lawsuit, and then only to matters involving the settlement of the lawsuit under either Florida Statutes Chapter 164 (dispute resolution process), court direction or invitation by either party.

4. Proceeded with the closing of $61.7 million of bonds sold to refinance bonds originally issued in 1995 to finance the construction of the Midpoint Memorial Bridge. The county expects a savings of about $2.5 million from the refinancing.