Flora is a functional-style language for object and relational algebra. It has been designed for efficient support of advanced database languages combining rules and objects using compilation and optimization. Flora is a strongly typed language based on an OO data model and incorporating support for collection-oriented computational capabilities. In this paper, we describe the design and architecture of the Flora optimizer which is rule-based, yet doing cost-based optimization. The optimizer uniformly captures logical, semantic and implementation knowledge regarding the execution system and the applications by means of assertions. This framework eases extensibility and enables efficient query rewriting.