The Palm Coast City Council set a maximum property tax rate for the coming year, approved the sale of city-owned land for a new rehabilitation hospital, and heard renewed public debate over the city’s charter and westward expansion during its July 21, 2026 business meeting. The council also proclaimed August 2026 as Water Quality Month and extended a grant program supporting new businesses at Town Center’s Promenade development.
Water Quality Month
The council opened the meeting with a proclamation declaring August 2026 as Water Quality Month, recognizing the city’s operation of three water treatment plants and two wastewater treatment plants. A longtime water treatment employee identified as Pete addressed the council, encouraging residents to avoid flushing medication, pick up pet waste, and limit fertilizer use to help protect local waterways.
Public Comment on the City Charter and Westward Expansion
During public comment, resident Jeanie Duarte again raised concerns about the city’s charter history, alleging that changes made in 2011 and 2018 were never properly brought before voters, and criticizing the continued appointment of a council seat she said should be filled through an election.
Resident Jimmy Henge compared the city’s original 2010 development agreement for the westward expansion to a newly proposed master plan development (MPD), saying the original agreement required the developer to pay for road projects, including a railroad overpass and the Old Kings Road/Palm Coast Parkway loop road, along with dedicated park land and school sites, at an estimated cost of about $110 million. He said the new proposal would abandon those specific requirements in favor of a less-defined “road dedication framework” funded through impact fees, and said the loop road is now being funded by a $126 million state appropriation instead.
Resident Dennis McDonald raised concerns about whether the city has properly authorized negotiations with the westward expansion developer and urged the council to follow past precedent regarding how vacant council seats are filled, referencing a similar situation from 10 years ago. He also asked the city for copies of the city manager’s and city attorney’s recent performance evaluations.
Councilman Ty Miller responded that state law allows developers to submit land use applications without requiring council authorization, and said he believes an MPD requires future mitigation agreements before any development can proceed, giving the council leverage over infrastructure costs. Vice Mayor Theresa Pontieri said she would not vote to abandon the original development agreements until a new master plan is presented that adequately addresses infrastructure, adding that the city’s Planning and Land Development Regulation Board (PLDRB) had unanimously recommended against abandoning those agreements at a meeting the week before. The city attorney said any legal challenge to charter changes made in 2011 or 2018 would likely be barred by the statute of limitations at this point.
On the question of filling vacant council seats, staff provided historical context, noting a similar situation in 2016 in which an appointed council member was later sworn in again after winning election outright in a primary.
Regarding the Westward Expansion MPD
Council members expressed a range of concerns about the proposed master plan development for the westward expansion. Two council members said the plan does not currently include enough guaranteed industrial and commercial development, or clarity on how much the project might cost the city over time. Mayor Mike Norris said he remains opposed to the plan in its current form, saying the developers have not offered to develop identified industrial land despite past requests. Councilman Gambaro raised concerns about a school board attorney’s data presented to the city’s planning board, saying the attorney lacked authorization from the school board to appear. Pontieri responded that while she disagreed with parts of both the city’s and the school board’s legal opinions on development requirements, her own reading of state law does not require the city to abandon the original agreements.
Purchase and Sale of Whispering Pines Property for Rehab Hospital
Acting as the State Road 100 Corridor Community Redevelopment Agency (CRA) board, the council approved a purchase and sale agreement with Sanders Trust LLC for 8.5 acres of city-owned land in the Whispering Pines area, to be developed into a $31 million, 36-bed inpatient rehabilitation hospital. City staff said the CRA originally paid about $3.16 million to assemble the 22 lots that make up the property, which recently appraised at about $2.775 million. Following a competitive bid process, the evaluation team selected Sanders Trust’s offer of $1.9 million, with a separate $250,000 reserved for the one remaining privately owned parcel in the area.
Economic Development Manager Craig McKinney said the project is expected to create about 100 full-time jobs with an average salary of $75,000, generate approximately $182,000 a year in property tax revenue, and produce an estimated $45 million in economic impact during construction. The facility will be operated by Clear Sky Health under a 20-year lease with Sanders Trust. Council members asked about adding a “clawback” provision or right of first refusal in case the project falls through, but city staff said Sanders Trust had already signed a contingent 20-year lease with the operator, and the council ultimately approved the sale without those additional provisions after resident Tony Amaral also raised the idea during public comment.
Fiscal Year 2027 Budget and Maximum Millage Rate
The council’s finance staff presented an updated overview of the proposed $72 million general fund budget for fiscal year 2027, an increase of about $4.6 million, or 6.8%, over the current year. The proposed millage rate discussed at the meeting was 4.2296, which would cost residents about $423 per $100,000 of taxable value; the “rollback rate” of 4.1387 and the current 2026 rate of 4.0893 would each require budget reductions of $1 million to $1.6 million.
Council members debated whether to fund nine additional sheriff’s deputies requested by the Flagler County Sheriff’s Office, at a cost of just over $1 million. Vice Mayor Pontieri proposed funding five deputies this year rather than nine, asking the sheriff’s office to conduct a follow-up staffing study before committing to more. One council member noted that Palm Coast, with about 80% of the county’s population, already funds the majority of the sheriff’s overall budget, and suggested the city and county consider consolidating how that budget is presented. Council members also debated eliminating the city’s merit pay increase structure in favor of a flat cost-of-living adjustment, after learning that about 96% of employees received a raise of at least 3% last year under the current system. “If a merit is going to be a merit, let’s make it a merit,” Mayor Norris said.
The council ultimately voted 4-1 to set the maximum proposed millage rate at 4.2296, with Vice Mayor Pontieri voting no. Officials emphasized that setting a maximum rate does not mean taxes have been raised, and that the rate could still be lowered before final adoption at public hearings scheduled for September 9 and September 23. “We haven’t done that,” Mayor Norris said, responding to social media posts claiming the city had already raised taxes. “The only thing we’re doing… is we had a discussion about the max millage.”
Nuisance Abatement Assessment
The council approved the city’s 2026 nuisance abatement assessment, which allows the city to recover the cost of addressing problems on properties whose owners do not respond to code violations. Code Enforcement Manager Barbara Grossman said the total assessment is $119,075, which includes $34,200 in administrative costs.
Promenade Grant Program Extension
The council approved extending the city’s Downtown Urban Core Improvement Grant program, which supports new businesses opening at the Promenade at Town Center, through September 2027. City economic development staff said the extension is needed because engineering and architectural requirements have taken longer than expected for prospective tenants, including Ty & I, Sixth Street Deli, Fleet Feet, and Grandpa Joe’s. Developer William Angrick and leasing agent Cornelia Manfrey both addressed the council, saying the additional funding and time are helping attract smaller, regional tenants to the development. The council approved extending the grant’s deadline and requiring an executed lease agreement, while tabling additional proposed changes to program definitions for further review at its August 4 meeting.
Council and Advisory Board Relations
During council comments, Councilman Miller addressed remarks made at a recent Planning and Land Development Regulation Board (PLDRB) meeting suggesting council members had been invited to attend PLDRB meetings but never showed up. Miller said he had never received such an invitation and called the claim inaccurate, while emphasizing respect for the board’s work. The city attorney said council members have been advised not to attend advisory board meetings in person to avoid any appearance of influencing recommendations that are meant to be independently developed under state law before reaching the council for a final vote.
Miller also raised concerns about potholes on Town Center Boulevard, saying an unnamed developer has withheld agreement needed to use impact fee funding for repaving the road, despite the city having funds available.
The meeting adjourned before noon.
