The Flagler County Board of County Commissioners held its regular meeting on Monday, March 2, 2026, tackling a wide range of issues, including the departure of County Administrator Heidi Petito, a major airport expansion, a public mural project, ongoing concerns over coastal development and water resources, and disputes over youth baseball field access. The session stretched well past its scheduled time before commissioners tabled a roads workshop to March 16th.
Financial Services Department Overview
The meeting opened with a presentation by John Brower, director of Financial Services, who gave the board an inside look at the department’s operations. He described his team’s guiding philosophy as “facilitate the yes,” meaning the department sees itself as a support function designed to help other county departments succeed.
Brower noted that the county now manages a $335 million annual operation and that workload has been growing steadily. Among the highlights he shared: the department negotiated 74 formal contracts in fiscal year 2025, up from 45 the year before. More than 8,200 purchasing card transactions were processed, and 14,000 invoices were handled. Brower also pointed to a surplus management effort that has generated over $2.5 million in sales since a dedicated position was created — far exceeding the cost of that position.
Several commissioners asked about interest earnings on county reserves. Brower explained that fund balances have grown considerably in recent years, generating millions in interest income that did not exist before. He cautioned, however, that interest earnings should be treated as one-time revenue since they depend on both interest rates and reserve levels. He noted the county has not needed to take out tax anticipation loans in several years, a sign of improved financial stability.
Brower also mentioned that the county self-insures certain assets as a cost-saving strategy, noting that over roughly ten years, the county received only about $70,000 back from insurance carriers despite paying in far more. The department has also earned an AA+ bond rating from S&P Global, which Brower described as the strongest in the county’s history.
ElderSource Area Agency on Aging Presentation
Linda Levin, CEO of ElderSource, presented next. ElderSource is the Area Agency on Aging serving seven counties in Northeast Florida, including Flagler County, and is part of a national network of more than 600 such agencies. Its mission, Levin explained, is to help older adults, people with disabilities, and caregivers remain in their homes and communities as long as possible.
Levin said ElderSource distributes over $1.2 million annually in state and federal funding to Flagler County Senior Services to provide services such as home-delivered meals, transportation, caregiver support, adult daycare, legal assistance, and health programming. The agency operates a helpline that receives about 5,000 calls per month and manages waiting lists for state-funded programs, releasing clients in order of frailty and need.
She also described programs including SHINE — which helps people understand Medicare options at no cost — a Veterans Directed Care program that allows veterans to hire their own caregivers, and the EASE program, which provides emergency financial assistance to seniors in crisis.
One Commissioner asked about elder financial exploitation. Levin acknowledged it is widespread and increasingly difficult to combat, particularly because many perpetrators operate from outside the country. She said ElderSource provides training to professionals on how to identify and report it, and that investigations are handled by the Florida Department of Children and Families and the State Attorney’s Office. “The best thing we could do is to educate our older adults,” Levin said. “So many are alone and looking for companionship and they become trusting — often trusting the wrong person.”
Commissioners raised the question of funding for adult daycare, noting the county had recently closed its senior daycare program. Levin said that service is eligible for funding through ElderSource, but that the state’s prioritization rules require the most frail clients to be served first — and those individuals may not always be appropriate for adult daycare. She agreed to look into whether adult daycare had previously been included in the county’s contract and whether it could be added again.
Community Outreach — Public Comment Session
The first public comment period covered a broad range of topics.
Data Centers: Palm Coast resident George Mayo urged commissioners to be cautious about any potential data center development in Flagler County. He cited a 60 Minutes report about a data center in Pennsylvania that caused a 24-hour harmonic hum affecting nearby residents, and noted that a Florida Senate bill had recently passed unanimously requiring data centers to be fully funded and prohibited from raising local electric rates. Mayo also noted that across the country, “as many towns and counties — states — that are saying yes, they’re saying no.”
Hammock Harbor Settlement: Five members of the Hammock Community Association (HCA) addressed the commission, expressing deep disappointment over the board’s settlement of a lawsuit related to the Hammock Harbor development on A1A. The settlement allows construction of a roughly 50,000-square-foot boat storage facility — described by speakers as resembling a warehouse or industrial building — in what they called a residential and light commercial community. Ed White, an HCA board member, said it “was a very dark day in the hammock.” HCA President Laura Stillman said the development violated the Land Development Code and the A1A Scenic Overlay, tools created specifically to protect the area. Pam Rosen cited concerns about constant mechanical beeping from forklifts, while William Jordan said the building’s size would dwarf neighboring properties and called the county attorney, growth management director, and commissioners out for what he described as handing the developer a win through a “$550,000 taxpayer-funded settlement that clears his path with zero meaningful concessions.” Todd Swinderman, HCA secretary, asked commissioners to strengthen codes and better enforce the intent — not just the letter — of the law, and suggested codifying recommendations from the Scenic A1A Priorities group into the permitting process.
Commissioners responded with a mix of empathy and context. Commissioner Dance said the board had fought the issue but the courts sided with the developer. Chair Pennington expressed support for asking the county attorney and growth management director to identify whether any additional tools or training are needed. She invited the HCA to submit specific suggestions in writing for future Land Development Code or Comp Plan workshops.
Youth Baseball: Several speakers addressed a dispute over field access at the Flagler County Fairgrounds. Forrest Hahn, president of Flagler-Baybrook Baseball, spoke on behalf of a rec league he described as serving 170 local children for $65 per player. He asked commissioners for a 50-year memorandum of understanding with 10-year renewals and asked that Commissioner Carney recuse herself due to what he described as a conflict of interest involving family members on the opposing side. Parent and board member Jody Sugar spoke about the importance of recreational baseball as a foundation for all players, including those who later move on to travel ball, and urged commissioners to ensure no personal bias influenced any decisions. Christina Solis argued for fairness and access for rec ball players, describing poor field conditions including broken scoreboards, flooding, and outdated facilities. Charles Han, a travel ball player, said while he supported shared use of fields, he believed rec ball should have priority. Commissioners discussed the matter and agreed that staff from the county and the City of Palm Coast should work together to align field access policies — possibly modeled after Palm Coast’s sports alliance membership system — and bring a policy recommendation back to the board. No vote was taken.
Water Resources: John Tanner, representing Preserve Flagler Beach and Below Creek Inc., raised concerns about a Phase 1 water shortage declared by the St. Johns River Water Management District covering Flagler County and surrounding areas. He warned that continued development, including Veranda Bay and Marina Village, could further stress the aquifer and water supply.
Veranda Bay / Marina Village: Marsha Tanner of John Anderson Highway asked the commission to initiate a new Chapter 164 conflict resolution process regarding Veranda Bay and Marina Village, particularly in light of a planned fueling station and potential Army Corps of Engineers involvement. Political candidate Reagan Royer called for more bottom-up community engagement and urged the expansion of the Technical Review Committee to include community members.
Consent Agenda
The board voted unanimously to approve the full consent agenda without pulling any items.
Vote: All in favor. Motion passes.
Item 8A — Airport Ground Lease with Upstate Companies LLC
Airport Director Roy Seeger presented a proposed ground lease with Upstate Companies LLC for a 3.5-acre parcel on the south side of the Flagler Executive Airport. Under the agreement, the company would construct a 51,750-square-foot, four-unit metal hangar facility with approximately 19,200 square feet of attached office space at a total construction cost exceeding $4 million — paid entirely by the company, not the county. The lease term is 30 years with two 10-year renewal options. Monthly lease payments will not begin until the facility receives a certificate of occupancy.
Seeger said the facility would be used for aviation-related businesses including maintenance, repair, and overhaul services. He noted that the project is five times the size of the airport’s existing large hangar. Brian Zajac, owner of Upstate Companies, addressed the board and praised the efficiency of working with the airport compared to other locations. He said one of the planned tenants is an avionics shop currently located in Daytona Beach that wishes to relocate to Flagler.
One Commissioner raised a question about whether flight training could be excluded from the lease, citing ongoing concerns about another flight school. Seeger explained that because the airport receives FAA and FDOT grant funding, it is legally required to allow any aviation-related use, including flight training, and cannot restrict it. Zajac indicated that flight training is not currently planned as a primary use of any of the four units.
Public comment was opened and no one came forward.
Vote: Motion to approve by Commissioner Carney, second by Commissioner Hanson. All in favor. Motion passes unanimously.
Item 8B — County Administrator Separation Agreement
This was the most discussed item of the meeting. County Administrator Heidi Petito submitted a separation agreement, and the board spent considerable time working through the legal and procedural framework needed to honor it.
Chair Pennington explained that under Petito’s 2021 employment contract, a voluntary resignation does not qualify for severance pay. In order to provide severance as outlined in the separation agreement, the board would need to take formal action — specifically a vote of termination — to be consistent with the contract’s language. County Attorney Sean Rodriguez walked the board through the relevant contract clauses and advised that the cleanest path forward was to characterize the departure as a “mutual separation,” which would allow the severance provisions of the contract to apply.
Petito addressed the board directly: “I’ve dedicated the last five years in this role, and we have built strength within the organization. So to me, it’s important that we leave things better than we found them.” She said she was willing to remain in her position through the presentation of the fiscal year 2027 tentative budget — with a separation date no later than July 14, 2026 — to ensure financial stability and a smooth transition.
Commissioner Hanson expressed support for allowing Petito to stay through budget season, saying, “She spent the best part of her life working for Flagler County — very, very successfully.” Commissioner Dance echoed that sentiment, thanking Petito for her years of service and noting that her institutional knowledge would be difficult to replace. Commissioner Carney said she was not in favor of a separation agreement and believed Petito had simply resigned, but agreed to go along with the majority if that was the direction.
Commissioner Richardson expressed concerns about how quickly the agreement had been presented — noting it arrived Friday night — and about a provision involving approximately $15,611 in retirement contribution differences from Petito’s earlier time as Director of General Services. Rodriguez explained that the separation agreement, as a settlement, would waive those claims, which he said was a benefit of moving forward with it.
The board agreed to modify the agreement’s language to reflect a mutual separation rather than a voluntary resignation. The final agreement states that Petito will remain in her position until the county hires an interim or permanent replacement, completes the FY2027 tentative budget, or until July 14, 2026, whichever comes first. The board also agreed to hold a workshop as soon as possible — potentially on March 16th — to begin the search for an interim and/or permanent replacement.
Multiple members of the public spoke during comment, including former county employee Pete Celestino, who praised Petito for handling the situation “with grace and dignity.” Public speaker Darlene Shelley argued against severance, saying Petito’s government retirement benefits are already substantial. David Eckert described the proceedings as a “train wreck” and suggested some board members’ behavior may border on malfeasance. Former State Attorney John Tanner told commissioners that “unhappiness is like a disease — it spreads” in organizations, and said if multiple commissioners had problems with the administrator, it was time to move on professionally and get the matter resolved. Flagler County Property Appraiser Jay Gardner thanked Petito publicly, saying she had “been nothing but good and professional.”
Vote: Roll call — Commissioner Dance: Yes. Chair Pennington: Yes. Commissioner Richardson: No. Commissioner Carney: Yes. Commissioner Hanson: Yes. Motion passes 4-1.
Item 8C — Tri-Party Mural Agreement
The board considered a tri-party agreement between Flagler County, the Flagler County Historical Society, and commissioned muralist Brooke Page for the creation of a mural on the SMA Access Center at 103 East Moody Boulevard in Bunnell. The mural will depict a painting of Lake Disston by R.L. Lewis, the last surviving member of the Florida Highwaymen — a group of African American landscape painters who became an important part of Florida cultural history. Lewis gave copyright approval for the painting before his death.
Chair Pennington explained that the project has been two years in the making through FC3 and the Flagler County Historical Society. The mural will cover approximately 1,200 square feet and is expected to last about 30 years. Funding comes from Bunnell’s Community Redevelopment Agency, with a Historical Society grant application pending. Commissioners expressed hope that the project would spark a broader mural movement in downtown Bunnell, noting that Poppies restaurant and the local Bank of America building are among other potential future sites.
One public commenter, Darlene Shelley, said she was not in favor of murals on buildings and questioned whether the finished product would reflect “American values.” Chair Pennington responded directly after public comment closed, saying, “That is art. That is not graffiti.”
Vote: Motion by Commissioner Dance, second by Commissioner Richardson. All in favor. Motion passes unanimously. The mural installation is scheduled to begin March 16th and is expected to take two to three weeks to complete.
County Administrator Report
Petito provided a brief report highlighting federal lobbying efforts for the upcoming appropriations cycle, with priorities including roadway improvements, stormwater infrastructure, and cybersecurity. She noted the county is coordinating with Congressman Fein’s office ahead of a March 10th federal submission deadline.
Petito also updated the board on coastal legislation, saying House Bill 1297 appears unlikely to advance this session, leaving Senate Bill 636 as the county’s strongest remaining path for coastal protection. She reported encouraging early feedback from the Florida Department of Environmental Protection on a Reach 3 critically eroded beach review, which if approved would expand the county’s designated critically eroded shoreline from approximately 10.3 miles to 16.1 miles.
She also asked the board for direction on whether Flagler County should continue participation on the Florida Government Utility Authority Board, noting that residents often mistakenly believe the county has authority over FGUA operations when it does not. No formal vote was taken on that question.
County Attorney Report
The County Attorney briefly noted that negotiations are ongoing with developers of Veranda Bay and Summertown as part of the Chapter 164 settlement process from a prior meeting. He said agreements are expected to be ready for board approval at the next commission meeting.
Commission Reports and Community Comments
Senate Bill 636 / Beach Protection: Commissioner Hanson noted that SB 636 has passed through Senate committee and is heading to the Senate floor, while the companion House bill is dead for this session. He said Representative Greco is working to revive the House bill if the Senate passes it. The commission discussed coordination with Senator Leak’s office and whether anyone should travel to Tallahassee. No formal vote was taken, but there was general consensus that commissioners should reach out individually and ask their lobbyist to monitor the bill’s status.
Veranda Bay Annexation Concerns: Chair Pennington raised the issue of Flagler Beach’s vote to annex Veranda Bay, questioning the legality of the annexation because not all property owners within the annexation area have signed a voluntary petition — as required under Florida statute. Rodriguez explained that the issue is one of “first impression” — meaning there is no established Florida case law on whether deed restriction language accepted at property closing satisfies the statutory signature requirement. He outlined the risks of a Chapter 164 challenge, including potentially losing a negotiated agreement covering John Anderson Highway road impact contributions and potentially jeopardizing the county’s ability to purchase approximately 150 acres of Bulo land from the same developer.
The board agreed to place the matter on the agenda for the March 16th meeting as a discussion item, possibly followed by a special meeting if formal action is warranted. No final action was taken at this meeting. Commissioner Carney stated she was not in favor of filing a challenge but acknowledged she was in the minority.
Nexus Center / Senior Services: Commissioner Hanson expressed concern over reports that senior program participants were being displaced from the Nexus Center community room when the county needed the space for other uses. Petito clarified that displacement has happened only two or three times and that participants are always given advance notice and relocated to another facility. She suggested the long-term solution may be to repurpose the adult daycare facility at the center as a dedicated senior programming space, with a potential refresh budgeted in the Capital Improvement Program.
ElderSource / Veranda Bay / IFAS Dunes Program: Commissioner Hanson also noted he has asked IFAS agent Carolyn Novaks to present to the board on a volunteer dune restoration program that he called “fascinating” and underrecognized.
Road and Bridge Workshop — Tabled
A scheduled 1:00 p.m. workshop on the Road and Bridge Work Program 2026 was tabled to the March 16th workshop due to the extended length of the morning session.
Vote: Motion to table by Commissioner Hanson, second by Commissioner Carney. All in favor. Motion passes unanimously.
The next Flagler County Commission meeting and workshop are scheduled for March 16, 2026.
