On ‌Wednesday ‌morning, ‌Aug. 19, 2026, the Palm Coast City Council voted 4-1 to sign off on a $17 million settlement that would have the city buy 259 acres in Town Center from Palm Coast Holdings, a move meant to end the lawsuit the company has filed against Palm Coast.

The vote happened during a special business meeting that began at 9 a.m. at City Hall. All five officials were there: Mayor Norris, Vice Mayor Pontieri, and council members Gambaro, Miller, and Sullivan.

Before council took the vote, resident and City Council candidate Jeanie Duarte told members that the primary election the night before changed the council’s makeup. In her view, Article 7 of the city charter limits an appointed seat to service only “till the next regularly scheduled election,” and she argued the primary counted as that election. Based on that reading, she said, two appointed members were now sitting in “expired” seats, and any vote involving them could be unlawful. Duarte urged the city to seat an elected candidate instead, Ray Stevens. “The citizens have spoken,” she said. “It is time to do the next right thing.”

A second speaker, Mr. Stone, focused on day-to-day city issues. He said crews edging lawns every few weeks were damaging grass and leaving mud behind, and asked that they stay away from his property because he already hires a landscaper. He also said mosquitoes were “totally out of hand” on his block, blaming standing water and asking the city to step in. He ended by accusing the council of being too tied to development money, saying one councilman had received 33% of his contributions from developers or related businesses.

Vice Mayor Pontieri answered Duarte’s charter argument by pointing to the charter’s definition of a “regular city election,” which she said is the first Tuesday after the first Monday in November of each even-numbered year, meaning the general election. The charter’s language about filling a seat, she said, refers back to that general election date. “I’m going to continue to follow the charter,” Pontieri said. “It’s defined in the charter.”

City Attorney Marcus Duffy walked the council through the agreement. Palm Coast Holdings would sell the city 259 acres in Town Center for $17 million, with a $1 million deposit. Duffy said roughly 95 to 96 acres are considered buildable. The contract, 49 pages long, gives the city a 60-day inspection window, followed by a 30-day period to close. Once approved, the lawsuit would be put on hold, and after the sale closes, the case would be resolved, dismissed, and ended. Duffy told the council the city’s litigation team and outside counsel support the settlement and recommend approving it as written.

He also put a disclosure on the record. Duffy said council members had been contacted by the plaintiff’s attorney, and that one of the plaintiff’s law firms is designated in the contract to handle the title transfer. To comply with Florida’s Sunshine Law and professional conduct rules, he asked each member to disclose any communication. Council members said they had spoken by phone with one of the company’s attorneys, mainly about whether any closed-door “shade” meetings had taken place, but said they did not discuss the lawsuit itself.

Mayor Norris said the disclosure still did not line up completely with what he believed had occurred, and he pressed for the city to use an independent title or escrow agent instead of the plaintiff’s firm. He said he wanted to avoid even “the air of taint,” something that could give a judge a reason to reject the agreement. Duffy advised leaving the language as-is, saying he did not see a risk of tainting the deal, though he added the council could switch to an independent agent if it chose.

Pontieri’s opposition centered on money. She said the city does not have a clear funding plan for the purchase, and that $17 million is only part of the total burden. She cited a $1.9 million bond that the developer left behind, along with about $26,000 per year in costs tied to two parcels through 2045 if the properties are not sold. “There’s too many unknowns,” she said, adding she was not prepared to gamble with taxpayer dollars.

Council Member Sullivan argued for approval anyway, describing the choice as between “the worst of two evils, or the best of two evils.” Taking the case to court, he said, could cost more than $17 million if the city loses. Even if the city wins, he said, it could still walk away without the land and still be on the hook for legal fees. Purchasing the acreage, Sullivan said, is not money “down the drain,” because the city could later sell parcels and, in his view, probably recover more than it paid.

Mayor Norris said he agreed, calling the agreement in the city’s best interest and saying “leaders make calculated risk.” Council Member Miller also supported it, saying the land’s value is closer to $35 million and that the city would be buying it for about half that. He added that gaining control of property around Town Center fits the council’s long-standing goal of acquiring “lands and buildings,” and he pointed to the due diligence period as a safeguard that would allow the city to walk away if problems surfaced.

After a motion and a second, Duarte returned during public comment, criticizing the city’s presentation as “poorly prepared” and asking the council to table the matter. Pontieri said she had not seen the written resolution itself, though she had reviewed the entire purchase and sale agreement.

The council then passed the resolution 4-1, with Pontieri casting the lone no vote.

In the final public comment period, Duarte again pushed the election argument, saying a “regular election” is not the same as a “regularly scheduled election.” “The primary last night was the next regularly … scheduled election,” she said, adding that the two appointed members “need to be removed.” The council adjourned shortly after.