The Palm Coast City Council moved through proclamations, a year-to-date financial review, a revised procurement ordinance, a housing amendment, a new CRA incentive program, a compensation study, and a U-Haul site plan approval in a packed April 21 business meeting.
Proclamations: Trees, Autism, Volunteers, a Rare Disease, and Trails
The meeting opened with five proclamations. Mayor Norris declared May 2, 2026 as Arbor Day in Palm Coast, recognizing the city’s 21 consecutive years holding the Tree City USA designation. The celebration will be held from 9 a.m. to 1 p.m. at Central Park and will feature a free tree giveaway, vendors, entertainment, free paper shredding, a native butterfly release, and a walk-through butterfly tent.
The council then recognized April as Autism Acceptance Month and honored Cedar Bridge Foundation, a local nonprofit supporting individuals with autism and other developmental differences. Terry Baker, co-founder of Cedar Bridge Foundation and parent of a person with autism, addressed the council.
“Acceptance means more than kind words. It means creating opportunities. It means opening doors for meaningful employment. It means building communities where individuals of all abilities feel seen, valued, and included — not just today, but every day.”
— Terry Baker, Co-Founder, Cedar Bridge Foundation
Baker announced the Autism Acceptance Walk and Run and Family Fun Day will be held on April 25 at 9 a.m. at Veterans Park in Flagler Beach.
The council also declared April as Volunteer Appreciation Month, with Susie Gamblain, executive director of Flagler Volunteer Services, speaking about the organization’s impact. She reported 1,391 volunteers served 79,299 hours across Flagler County in 2025, with an estimated economic value of $2,758,812 based on independent sector calculations. Gamblain highlighted the organization’s Reading Pals program, disaster preparedness training, and ongoing hurricane recovery work. She announced the organization’s Disaster Preparedness Breakfast will be held on May 15 at the Palm Coast Community Center, featuring speakers including Sheriff Staly and Chief Meteorologist Tony Manolfi. The first 100 attendees will receive a free disaster preparedness kit.
April was also designated as Sarcoidosis Awareness Month. Sarcoidosis is a rare inflammatory disease affecting multiple organs that impacts an estimated 175,000 people in the United States, with no known cause or cure. Danielle Carlson, a Palm Coast resident living with the disease and a volunteer with the Foundation for Sarcoidosis Research, addressed the council and encouraged residents to learn more and support those affected.
The final proclamation designated April 25, 2026 as Celebrate Trails Day, in partnership with the Rails to Trails Conservancy. James Hurst and Brittany McDermott from Palm Coast Parks and Recreation, along with representatives from the Flagler County Tourism Development Council, spoke about the event at Waterfront Park from 11 a.m. to 1 p.m., which will include a butterfly release, guided nature walk, music, food trucks, arts and crafts, and educational activities. Staff also highlighted a newly updated trail map with a QR code feature and announced that new expanded parking and a covered picnic pavilion funded by a FIND grant are coming soon to Waterfront Park. Palm Coast has more than 130 miles of trails connecting parks, neighborhoods, and green spaces.
Year-to-date budget overview: Six months in, on track
Finance staff Gwen Ragsdale and Raylene Bowman presented the city’s operating budget results through March 31, 2026, representing the first six months of fiscal year 2026. The city’s fiscal year runs from October 1 through September 30.
On the revenue side, ad valorem tax collection — the city’s largest revenue source in the general fund — came in at approximately 94%, consistent with prior years and ahead of the April 1 payment deadline. State revenue sharing is tracking on target. Building permit fees have decreased by $1,456 compared to the same period last year, and the building department is holding vacant inspector positions unfilled in response to the lower activity. The Aquatic Center opened in April this year instead of February, so increased revenue is expected in the third quarter as warmer weather and the school year end approach. The Southern Recreation Center currently has 1,104 active pickleball pass holders, 339 tennis pass holders, and 75 combo passes.
On the expenditure side, all departments are tracking at or below expected levels for the mid-year point. Administration and finance spent about 44% of their $8 million budget. Community development spent about 40% of $12 million. Public safety, which includes fire and the sheriff’s office contract, is at 50% of $27 million. Parks and Recreation is at 42% of $10 million. Public Works is at 52% of $41.5 million — slightly higher due to fleet capital purchases, most of which have already been received. Water and wastewater is at 46% of $88 million. Engineering is at 33% of $21.9 million, partly due to a $2.5 million transfer to the Maintenance Operations Complex capital fund that had not yet been executed. Information Technology is at 35% of $8.4 million.
Council Member Miller asked that future presentations include totals across all columns to allow for easier comparison. Council Member Gambaro asked for a detailed breakdown of all fund transfers going to the Maintenance Operations Complex so the council can track the full picture of those contributions. The council gave consensus on that request.
Staff noted the next budget milestone is a property tax overview and TRIM notice presentation on June 9, followed by budget workshops beginning in July. The public can access all budget materials at the city’s website. The budget preparation link for fiscal year 2027 is currently live.
Informational presentation only. No vote taken. Council directed staff to include totals in future presentations and to break out all MOC-related fund transfers separately.
Public comment: Data center concerns, housing prices, Project Magellan, and more
During the first public comment period, four residents addressed the council. Jeff Adams suggested the council hold brief individual meet-and-greet sessions before formal meetings, similar to a recent city manager meet-and-greet that he said was well-received by residents. Crystal, a resident who was not fully identified, raised concerns about the AI data center and submarine cable landing station project, alleging it could be used for population surveillance and that it consumes excessive water and electricity. Kirk Whittington praised Sheriff Staly’s recent community presentation and urged the council to support future budget requests from the sheriff’s office, citing Palm Coast’s ranking as the second safest city in Florida. Mark Webb, a regular attendee, said residents reached out to him about comments made at the previous council workshop regarding housing prices and asked the council to clarify that it is not trying to drive down home values.
In response, Council Member Gambaro offered clarifications on the cable landing station, explaining it is not a typical data center but a landing point for an undersea communications cable, that it uses a closed-loop water system rather than ongoing water consumption, and that Florida state law prohibits electric utilities from socializing the costs of data center power usage across other ratepayers. Vice Mayor Pontieri asked staff to produce an updated fact-versus-fiction post for the city’s social media to address ongoing misinformation about the project, noting she hears questions about it frequently while canvassing.
On housing prices, Gambaro and Mayor Norris each stated clearly that the council is not trying to lower home values. Norris said the goal is to bring a diversity of housing products to the market — including apartments, townhouses, and smaller homes — so that teachers, nurses, first responders, and entry-level workers can afford to live in Palm Coast. Gambaro noted the council has received a housing assessment study that outlines the community’s actual housing needs.
On Project Magellan, a previously announced economic development project that has been under a nondisclosure agreement, Gambaro noted the 12-month NDA period under Florida statute 288.075 has likely expired. He asked City Attorney Marcus Duffy to confirm with economic development staff whether the NDA has lapsed and whether any extension was filed. Gambaro also mentioned Synergy Sports as another project whose status could be affected by how the council communicates publicly about major development issues.
Minutes approved
The council unanimously approved the minutes from the April 7, 2026 business meeting and the April 14, 2026 workshop meeting.
Passed unanimously — 5 to 0.
Procurement ordinance: First reading approved with amendments
Senior Contracts and Procurement Coordinator Natalie Garcia presented a proposed update to the city’s procurement ordinance, which replaces Chapter 2, Article 1, Division 3 of the city code. The last major update to the ordinance was in 2021. The proposed changes are intended to improve efficiency, update financial thresholds to reflect current costs, and align city practices with modern procurement standards.
Key changes include new standardized definitions for procurement terms; updated purchasing thresholds raising informal quote requirements to cover purchases between $3,000 and $49,999 (previously up to $29,999); formal sealed competitive solicitations required for purchases of $100,000 or more (previously $50,000); increased approval authority for department heads (up to $50,000 from $30,000) and the city manager (up to $99,999 from $49,999); a formal vendor suspension and debarment process allowing the city to exclude vendors found guilty of fraud, poor performance, or ethical violations; and a shift in bid protest responsibility from the financial services director to the deputy city manager.
Council discussion was extensive. There was some concern that informal quotes up to $49,999 remain off the city’s public procurement portal, arguing that transparency is better served by keeping that threshold lower. However, the majority of the council supported the proposed threshold, with Gambaro noting the council should trust its city manager and directors and that the threshold can be revisited if problems arise.
Pontieri also raised questions about an existing paragraph in the approval authority section she felt was redundant or potentially too broad, giving the city manager de facto authority for purchases already appearing in approved budget line items without clear limits. After discussion, the council and city attorney agreed the paragraph should be revised to clearly specify it applies to purchase orders executing already-approved, pre-existing contracts for operational items — not capital projects — and that this is distinct from the per-transaction dollar thresholds in the prior section. Staff agreed to clean up the language before the second reading.
A separate discussion centered on the bid protest bond amount, currently set at a flat $10,000. Pontieri argued that for smaller contracts, a $10,000 bond can be prohibitive for local small businesses. The council discussed moving to a percentage-based structure — such as 5% of contract value — not to exceed $10,000, with the flat $10,000 rate applying when no contract price exists. No consensus was reached on changing the bond amount; the majority appeared comfortable keeping $10,000 as the flat standard.
The council also discussed the local business preference section, which allows eligible local businesses to receive up to a 5% preference for contracts up to $200,000, and 3% above that. Staff noted only one vendor had claimed local preference in the past five years. The council decided not to change those figures at this time but agreed to monitor whether local businesses feel the thresholds are inadequate.
Passed unanimously — 5 to 0, with direction to staff to revise one paragraph for clarity before the second reading on May 5, 2026.
Palm Coast Park MPD amendment: Single-family homes replace townhomes in Sawmill Branch Phase 6
The council considered a first reading of an ordinance amending the Palm Coast Park Master Plan Development Agreement for Tracks 16 and 7A, which are part of Phase 6 of the Sawmill Branch development on the west side of US Highway 1. The applicant is D.R. Horton.
Currently, those tracks are approved for 320 attached townhouse lots on 18-foot-wide lots at a density of up to 10 units per acre. D.R. Horton is requesting to change the development to 244 detached single-family residential homes on 30-foot-wide lots, with a maximum density of 7 units per acre. The application is limited to Tracks 16 and 7A only. The Planning and Land Development Regulation Board unanimously recommended approval at its March 18 meeting, with two additional conditions: a 20-foot landscaping break every 12 lots and a small resident amenity such as a playground. D.R. Horton agreed to incorporate both conditions.
Planner Estelle Lenz presented the case. She noted the change results in 76 fewer homes, less density, less traffic generation, and more pervious surface than the previously approved townhouse plan. Staff found the request consistent with the city’s comprehensive plan, which supports a variety of lot sizes and housing types.
Representative Michael Cimento said the project fits with the city’s housing assessment and offers an alternative product — detached homes on smaller lots — for buyers who want more privacy than a townhouse but cannot afford the typical Palm Coast quarter-acre single-family home. D.R. Horton representative Bob Porter added that detaching the units gives residents side yards and private rear yards that attached townhomes do not offer.
Councilmember Sullivan raised a separate concern about historical damage at Hewlett’s Mill, a Revolutionary War-era site located near the Sawmill development. Sullivan said a retention pond was built in a location that causes a sluice to drain directly onto the historic site, and that the site has been ruined as a result. He said he raised the issue with city staff three years ago with no result. Cimento said he was not personally aware of the issue and committed to investigating it before the second reading. Sullivan’s no vote was based on his assessment that the application does not satisfy the land development code’s compatibility criteria.
Passed — 4 to 1, with planning board conditions included and with direction to D.R. Horton to investigate and report back on the Hewlett’s Mill drainage issue before the second reading on May 5.
SR 100 Corridor CRA: Vertical Development Incentive Program approved
The council briefly recessed to convene as the SR 100 Corridor Community Redevelopment Area (CRA) Board and approved the creation of a new Vertical Development Incentive Program (VDIP) for the CRA.
Community Development Director John Zobler explained that the CRA is scheduled to expire in 2034 — roughly eight years away — and that large-scale development projects typically take two to three years to complete before generating taxable value. That leaves only a four-to-six-year window to realize meaningful tax increment revenue. The VDIP is designed to address that timing problem by offering performance-based reimbursements to qualified developers, paid from the new tax revenue their projects generate — not from general fund money. The program uses a graduated structure tied to investment level and includes a compression multiplier to account for the shortened CRA timeline.
Council discussion produced several amendments before approval. The council agreed to exclude purely residential development from eligibility for the program, limiting it to commercial and mixed-use projects only. The council also agreed that any project that rezones land to add residential and then packages it as mixed-use to qualify for the incentive would be ineligible — to prevent manipulation of the program. The council further agreed to remove the impact fee incentive component from the program and to require CRA Board approval — not just city manager approval — for any project receiving the incentive. The arts fund fee was kept in the program, with clarification that developers can apply their earned incentive credit toward the fee, meaning the arts fund still receives its funding.
Mayor Norris expressed a desire to see the CRA go vertical with mixed-use, multi-story development — noting the remaining entitlements include hundreds of thousands of square feet of office, retail, and commercial space. He said he does not intend to vote to renew the CRA when it expires in 2034 if the development it was meant to stimulate has not materialized. Zobler noted that the promenade building currently has four letters of intent and one executed restaurant lease in progress, with two additional letters related to retail. He also introduced Jasmine Rosario as the city’s new economic development coordinator.
Passed unanimously — 5 to 0, with amendments excluding residential-only projects, requiring CRA Board approval, removing impact fee incentives, and adding language preventing rezoning manipulation.
Compensation and benefits survey approved
Human Resources Director Renina Fuller and HR Coordinator Ashley Finner presented the request for approval of a contract with Evergreen Solutions LLC to conduct a comprehensive compensation, classification, and benefits survey. The most recent such study was completed before 2020, and only the first of its three phases was ever implemented.
Staff compared the cost of an external study — averaging $72,000, 20 weeks, and six consultants based on all bids received — against doing the study internally, which could cost around $25,000 but would strain the six-person HR department and risk the appearance of a conflict of interest. Staff recommended the external firm. The city’s current employee turnover rate is approximately 9.87%, which staff said is generally healthy, though specific departments such as water treatment operators and public works personnel have been harder to retain due to competing wages at other agencies.
Council Member Gambaro asked whether the council is prepared to act on the findings — whether it reveals the city is underpaying or overpaying staff. Multiple council members confirmed they are committed to taking the findings seriously and that the study is intended to inform the upcoming FY2027 budget process.
Passed unanimously — 5 to 0.
U-Haul storage facility approved at White View Parkway and US-1
The council approved a technical site plan for a U-Haul storage facility on a 30-acre site at the western terminus of White View Parkway at US Highway 1. The application covers phase one of a multi-phase project and includes two buildings: Building A, a three-story structure with approximately 950 storage units totaling about 119,614 square feet, and Building B, a one-story warehouse at 13,000 square feet for U-Haul truck and trailer staging that stands 48.5 feet tall — slightly taller than the three-story Building A.
Planner Jared Hansen presented the project, which was reviewed over more than a year with multiple resubmittals. The Planning and Land Development Regulation Board unanimously recommended approval in March. The site meets or exceeds all dimensional, parking, landscaping, and stormwater requirements under the city’s land development code. Access is right-in, right-out from US-1 for phase one, with a potential future connection through the White View Parkway extension once that project advances. A widened entry apron was designed in coordination with the Florida Department of Transportation and city traffic staff to help vehicles decelerate off US-1 before entering the site.
Mayor Norris and Council Member Miller each acknowledged that the council would face public criticism for approving another storage facility but said property rights prevent the city from blocking the use outright. Norris noted that multiple companies often use the same market analysis, which can lead to multiple storage facilities being proposed in the same area. He said future phases include RV and vehicle parking as well as potential garages.
A public resident, Darlene Shelley, who is also a City Council Candidate, said the commercial zoning of the site is appropriate for this type of use and asked about the number of jobs the facility would create and whether a deceleration lane could be required for safety on US-1. Another speaker, Kirk Whittington, said he previously lived in a D.R. Horton community near a U-Haul-style facility and found D.R. Horton to be a quality developer.
Passed unanimously — 5 to 0.
Consent agenda: Right-of-way purchase, loop road phase 3, and other items
The council approved the consent agenda after brief discussion of two notable items. The first was a right-of-way purchase agreement with U-Haul Company of Florida for a 200-foot-wide strip of land along the planned westward extension of White View Parkway beyond US-1. The price is $500,000: $280,000 in cash and $220,000 in impact fee credits for U-Haul’s future use. An appraisal had valued the property at $700,000. City staff said the acquisition secures an alignment for future road access into the western expansion area.
The second notable item was approval of a design and construction agreement for Phase 3 of the Palm Coast Parkway (loop road), which covers the segment from Palm Coast Parkway West over the FEC railroad tracks, looping northward toward Hargrove Grade. The project is 100% funded by a state appropriation. Staff acknowledged the loop road is not fully funded in its entirety, and that the agreement is written to only require completion as far as the available funding allows. Additional funding will need to be secured to complete the full corridor. Clearing work on the loop road’s earlier phases is expected to begin April 26.
Resident and City Council Candidate Tony Amaral raised a concern during public comment about the right-of-way purchase, noting that the land has a 9-foot grade drop from US-1 to the back of the parcel and sits near wetlands, suggesting the true cost of building a road through the corridor could be significantly higher than the purchase price alone. He also asked staff to look at whether a separate narrow strip of city-owned land near the site could be incorporated to create a continuous corridor. Staff confirmed an appraisal was done and said they would follow up.
Resident Mark Webb again raised his longstanding request for a public comment period at the end of council meetings. Mayor Norris and City Attorney Duffy acknowledged the council already goes beyond statutory requirements by providing multiple public comment periods at each meeting, and Norris said he does not expect the format to change during this council’s tenure.
Passed — 4 to 1. Vice Mayor Pontieri voted no.
Final public comment and council reports
During the final public comment period, Darlene Shelley raised concerns about the westward expansion of the loop road, arguing that state transportation funding should be directed to safety improvements on existing roads — particularly Old Kings Road, Belle Terre Parkway, and I-95 access points — rather than infrastructure primarily serving new development.
Council Member Gambaro responded by listing recent safety improvements underway: the Bellair safety project adding turn lanes, Palm Coast Parkway resurfacing with new turn lanes at Pine Lakes, approved design for Old Kings South 2A between Town Center and Palm Coast Parkway, an interim fix at the Royal Palms and Old Kings intersection, and Old Kings North 2A now funded by state appropriations. He said the characterization that the council has ignored safety improvements is inaccurate.
Mayor Norris explained that state transportation appropriations are project-specific — money designated for the loop road cannot be redirected to other uses, and must either go to the loop road or be returned to the state. He said Palm Coast continues to advocate for additional water, stormwater, and road appropriations at the state level.
