The Palm Coast City Council held a long, wide-ranging business meeting on Tuesday, Oct. 20, 2026, and approved an $11 million loan to buy Town Center land, a 35-year lease to build a YMCA, a new fleet maintenance complex, and several debated housing and land-use items. The meeting began at 9 a.m. All five members were present. Several decisions drew sharp public comment, partly because they came during early voting, with an outgoing vice-mayor and two appointed members whose seats residents challenged.
Proclamations
The council issued three proclamations. The first recognized National Medical Assistant Recognition Week (Oct. 19-23), accepted by Lauren Ramirez and Deborah Gersano of Salus Medical Training, a Palm Coast school they said has a “100% pass rate” on its certification exam. The second marked Domestic Violence Awareness Month, accepted by Candace Wilkie of the Family Life Center, who noted the center has served the county for 40 years and asked people to paint their nails purple to spark conversation.
The third honored the Rotary Club of Flagler County’s 45th anniversary (to be marked Nov. 25). A Rotary representative said the club has served longer than the city has existed and offered to fund and donate a shaded “community pavilion” by the water in Town Center. “We aren’t trying to change this magnificent plan Palm Coast has,” he said. “We want to help complete them by adding the missing element of shade, shelter.” He also thanked city employee and Rotarian Jackie Gonzalez for 20 years of behind-the-scenes work.
Public comment
Residents raised several concerns about items not on the agenda. Chantel Pranning questioned the city manager’s appointment of a new deputy city manager at a cost of “$190,000 plus.” Jeanie Duarte called the meeting an “agenda-pushing” session and urged the council to hold its votes for the next council. Walter Kiesel, who described himself as retired, handicapped, and a military man, complained about an unresolved code-enforcement issue on his street.
Several speakers focused on animal control. Wendy Chamorchi criticized a decision to eliminate the animal control department head and shift duties to code enforcement. Caroline Johnson said there is now no after-hours response for loose or abandoned animals, calling it “a public safety issue” and citing a dog abandoned and tied to a tree on Belle Terre. A resident on a fixed income said recent pet-licensing fee increases forced her to choose between her family’s needs and keeping pets that support her disabled children.
City Manager McGlothin said the deputy city manager role filled a long-established vacant position. He said staff continues to work on improving animal control. Council members said the licensing increase was a staff cost-recovery decision, not a council vote. Vice Mayor Theresa Pontieri pressed staff to schedule a joint city-county animal workshop soon, noting grant money is on the clock. Councilman Sullivan, who previously served on the county commission, urged the entities to “centralize” animal control quickly rather than waiting on a new shelter building.
Consent agenda
The council unanimously approved its consent agenda after pulling two items and discussing three others. Members questioned, but left in, a landscape-architect contract (budgeted at about $45,000 a year, which Director Nguyen said is cheaper than the roughly $140,000 fully burdened cost of a former staff position) and a FIND grant for the St. Joe Waterway Trail. On the cold-weather shelter agreement, members asked for backup on a $500 nightly cost increase; Flagler County’s Joe Hegedus later explained that attendance and activation nights have roughly doubled since 2022. Several council members and residents complained the 3,700-page agenda packet was too large for the public to review over a weekend. “This is a bit much. We need to reduce this,” Mayor Michael Norris said.
Palm Coast Historical Society lease
The council unanimously approved a long-term agreement with the Palm Coast Historical Society. At Pontieri’s urging, members extended the planned lease at a refurbished Fire Station 22 from 10 years to 25 years, lengthened the termination-notice period from 30 to 90 days, and added language requiring the society to vacate its current Holland Park building when it moves. Society president Peter Johnson said the longer term would help the group raise money: “We think this would be a great long-term partnership.”
Cellphone contract
In a unanimous vote, the council approved “piggybacking” on a state contract to switch city cellular service to T-Mobile, a move expected to save about $70,000 a year. Pontieri raised concerns about T-Mobile’s coverage on past heat maps, especially for emergency communications. Staff said a pilot test showed no issues, hardware changes are covered, and the city is not locked into a multi-year contract and could switch back if problems arise.
$11 million Town Center land loan
One of the meeting’s biggest items was an $11 million bank loan to help buy about 258 acres in Town Center the city is acquiring for $17 million to settle a lawsuit. Sitting as the State Road 100 Corridor CRA board and then as the council, members approved a taxable, non-ad valorem line of credit from Wells Fargo Bank, chosen for the lowest variable interest rate and no prepayment penalty. Financial advisor Joel Tindall of Hilltop Securities said the loan carries a variable rate of daily SOFR plus 0.56%, with the full principal due at maturity on Oct. 1, 2029. Estimated total interest was about $1.45 million, for total debt service around $12.5 million.
Finance Director Helena Alves said the CRA fund carries a zero balance by design, so interest-only payments of about $550,000 would come from the general fund starting Dec. 1. At Pontieri’s request, the council amended the agreement to require that excess CRA increment revenue, beyond annual costs, go toward paying down the loan principal.
Residents pushed back hard. Duarte and Darlene Shelley argued the deal lacked transparency and questioned whether the lawsuit would even succeed. Tony Amaral asked the council to ensure land-sale proceeds go fully toward the balloon payment to avoid “a devastating hit” to the 2030 budget.
City Attorney Marcus Duffy, citing Chris Rowe of Bryant Miller Olive, confirmed the loan does not break the city charter, which caps unfunded multi-year obligations at $15 million or 36 months; the loan is capped at $11 million and runs less than three years. Pontieri cast the lone “no” vote, saying she had seen no evidence the city would lose the lawsuit. “Without that, you don’t have my vote. And I think this is a poorly conceived vote,” she said. The loan passed 4-1.
YMCA lease approved
The council unanimously approved a 35-year lease and a $3 million CRA contribution to help build a YMCA at 1580 Central Avenue, contingent on the Flagler County School Board also joining. Fire Chief Kyle Berryhill, John Walsh, and Chris Salkop presented the deal, which includes an Olympic-sized pool and about 44,000 square feet of athletic space, plus a $250,000 state appropriation. The city pays $2 million in 2027 and $500,000 in each of the next two years and leases its land for $1 a year.
Pontieri sought several protections after comparing the city’s deal to the school district’s agreement. The council agreed that the city could use the facility at no cost for official city events during normal hours (with extra staffing paid only outside those hours), that the city would get a dedicated facility manager equal to the school’s, and that any change to the lease, or any successor taking it over, must come back to the council. She also pressed concerns about overlapping 60-day repair and 30-day default periods that could leave a problem unfixed for months. Officials noted the agreement includes a “clawback” requiring repayment of the $3 million if the YMCA fails to build and maintain the facility.
Councilman Miller stressed the money comes from CRA tax-increment funds paid by Town Center businesses, “not from the rest of Palm Coast.” Residents, including Shelley, objected, calling the YMCA a global nonprofit that would profit from taxpayer-backed land. Mayor Norris said a pool is sorely needed: “If you live in Florida and you can’t swim, there’s an issue with that.”
A related $68,000 contract to master-plan the broader cultural arts site was tabled to a future CRA meeting after Pontieri called it “premature” and “a bunch of fluff” that lacked technical drawings.
Affordable housing changes
The council voted 4-1, with Councilman Gambaro opposed, on changes to the State Housing Initiative Partnership (SHIP) program, approving two of three parts. Hegedus and Gonzalez presented data showing the county has about 1,000 assisted affordable units against roughly 12,000 to 13,000 extremely low-income residents.
The council approved changes to the first-time homebuyer and purchase-assistance program, keeping a priority for first responders and public employees but broadening eligibility, and adopted a state-required addition covering manufactured and mobile homes. Members rejected a proposed amendment to fund affordable rental development. Pontieri said she could not support using tax dollars for private development and worried it would pull money from a popular home-rehab program that already has a waitlist. “I’m much more in favor of home ownership as the result of this rather than rental,” she said. Gonzalez noted the funds could also support redevelopment of aging complexes to prevent blight, but the council declined.
Fleet maintenance complex
The council unanimously approved roughly $41 million in contracts and contingency for Phase 1C of the Maintenance Operations Center off Palm Coast Parkway, including a $37 million guaranteed maximum price with Gilbane for fleet maintenance and wash buildings. Engineer Eric Gio said the project consolidates public works, utility, and stormwater operations and is funded by enterprise funds and the capital projects fund, not borrowed money. Duarte opposed the project and said it exceeds the charter cap, but staff said the funds were collected over time, not financed. Norris defended the plan, pointing to 822 city vehicles now maintained with just two bays, and Sullivan said, “I’ve seen better maintenance facilities in Iraq and Afghanistan.”
Parks fees
The council unanimously approved higher fees at the Southern Recreation Center to move toward 70% cost recovery, including increased passes, room rentals, and a new resident-versus-nonresident rate. The Palm Coast Parks and Recreation Director said tennis fees remain higher because clay courts cost more to maintain. Staff said residents who use the center have signaled they understand the increases.
Land-use cases
Magnolia Trace (second reading). The council voted 4-1, with Norris opposed, to amend the master plan for this project, formerly known as “The OR,” which dates to 2005. Attorney Jay Livingston of Greenpoint Holdings described changes including a stronger natural-buffer requirement, a ban on open burning (except forestry management), and wider townhome lots. To address resident fears about flooding in the Z and K sections, the council added language to Section 9E requiring that the owner’s stormwater system create “no off-site flooding to adjacent and surrounding properties.” Stormwater engineer Carmelo Morales said city ditches there were last maintained in July 2026 and that developers must prove a “no rise” flood condition. Norris said he remained uncomfortable with flooding risk.
Red Mill Point (second reading). The council unanimously approved converting this 2022-approved project of 216 units from rental apartments to owner-occupied townhomes, with no change in density and a new neighborhood park. Attorney Mr. Chiumento said nothing had changed since the first reading. Residents again objected to density, prompting Councilman Hanson to clarify that state “shot clock” laws (Section 166.033, amended by 2025’s Senate Bill 1080) can force automatic approval and refunds if the city delays. Pontieri noted the council has actually reduced overall entitlements by “500 or 600 units” over two years and defended the appointed members against public attacks.
Lakeview Estates (second readings). In two 4-1 votes, with Norris opposed, the council approved a comprehensive plan amendment and master plan changes for this roughly 280-acre former golf course, approved in 2021. Developer representatives said the plan reduces density, shifting 51 allowed units down to 39 estate homes on Tract 3, donating an 11-acre park on Tract 8 to the city at no cost and with no impact-fee credits, and placing more than 100 acres into permanent conservation. The council kept a 150-foot view-protection buffer on Tract 9 (correcting a 100-foot typo), added language capping Tract 3 at 39 units “in perpetuity,” banned pile burning during Tract 3’s development, and required soil testing for arsenic before the park land is conveyed.
Developer Alex Ustilovsky and staff pointed to an Oct. 1, 2026, engineer’s letter and 2022 soil borings showing arsenic levels well below residential limits, since no activity has occurred on the land since. The item drew heavy public comment. Some residents, recalling dust and smoke from earlier “Tract 1” construction, urged the council to deny or delay the project and noted the planning board voted 6-0 against it. Others who live on the former golf course urged approval, warning that rejecting the deal would not stop development — the entitlements already exist — and could instead scatter homes behind existing lots and leave conservation land in private hands. “This is a great settlement for us,” one resident said.
Ordinances
The council also gave final approval to several ordinances. It unanimously adopted an updated Unified Land Development Code, which, among other changes, now treats data centers as a use not permitted without a special exception requiring a council supermajority. It unanimously approved an ordinance prohibiting the transfer, sale, or dissolution of the Palm Coast Fire Department, and one prohibiting direct potable reuse (“toilet to tap”).
On the water ordinance, Utility Director Brian Roche answered detailed questions from the mayor, explaining that the city treats wastewater to high standards for reclaimed “purple pipe” irrigation and uses advanced membrane treatment for drinking water drawn from aquifers, not rivers. He said the city meets all primary drinking-water standards but does not meet a secondary “color” standard at one plant, which it is working on, and has received small fines for occasional sanitary sewer overflows. Asked to rate the system, he said, “I’d like to think that we’re running about a seven-minute mile right now.” Residents Duarte and Shelley pressed the council to also ban indirect potable reuse and questioned water quality and cost.
The final item was a historic-preservation ordinance, the first in the county, creating a five-member review board that includes a Palm Coast Historical Society member and a preservation officer with a master’s degree. City historian Preston Zepp praised the measure and said it is “a little bit better than St. Augustine’s.” He and residents noted several historic and prehistoric sites, including the Gore Lake burial mound, were destroyed years ago; Zepp said the state deemed the mound not important enough to save. “It is a shame that it took 56 years to get to this point, but we’re here now,” he said.
Note: Several names are spelled phonetically from the meeting audio, including developers Alex Ustilovsky and, and residents Chantel Pranning and Walter Kiesel.
