Freshly revealed appraisals are fueling opposition to Palm Coast's proposed $17 million purchase of 23 parcels. FlaglerLive reported that the properties were assigned a combined value of $20 million and that five were assessed at zero.
Here's what to know
The planned acquisition is part of a settlement with Town Center developer Allete. After city staff shared the appraisals at a council meeting, Palm Coast City Council member Theresa Pontieri said moving ahead would be "the worst decision in city council history if we move forward with purchasing this land," according to FlaglerLive.
Under the proposal, the city would spend $17 million on the parcels, take on $1.9 million in long-term debt, absorb continuing maintenance costs, and lose about $775,000 a year in property tax revenue. Altogether, taxpayers would cover far more than the land is worth.
Allete's $35 million lawsuit is what the settlement is supposed to end. The developer claims two land transactions collapsed because Palm Coast could not guarantee water and sewer service.
Another flashpoint is the agreement's approval. The council signed off before the required appraisals had been finished. That means officials committed public money before seeing the land's valuation.
More background
The city would pay for the purchase out of its general fund. That would sharply reduce reserve money used for other local obligations.
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The financing plan calls for the Town Center Community Redevelopment Agency to borrow $11 million and then reimburse the general fund. The public still has not been told what terms would apply to that borrowing or how much interest it could ultimately add.
CRA revenue comes from property taxes collected within the 1,600-acre Town Center district. At the meeting, the council also learned that one of the 23 parcels lies outside the CRA boundary, which means it cannot be financed with CRA-backed funds.
Tony Amaral Jr., a candidate for a council seat, pressed officials for specifics on the settlement's costs and the city's plan for the land: "What's the end total of this contract? What is the financing? What are the payments going to be for the next few years? How is this going to affect the budget for the next three to five years or something, and more importantly, what is the plan with this land? We don't have an economic development [director]. We don't have John Zobler, who would have been the next one in line to handle this. What is our plan?"
The city has had no community development director since John Zobler resigned last month.
What's being done?
City officials are still taking the required steps to set up financing for the settlement.
Senior Planner Jose Papa said bond counsel told the city it needed to update its 2004 Town Center plan before borrowing against CRA revenue, and the council approved an amendment that adds a map of the parcels.
Pontieri said the council should think seriously about walking away from the agreement. She acknowledged that doing so would trigger $1 million in liquidated damages under the contract, but argued that even with that penalty, backing out could cost less than proceeding without better answers.
City Attorney Marcus Duffy also mentioned a request for proposal for a company that would handle the land sales.
Mayor Mike Norris and Council member Dave Sullivan have said settling is better than risking a bigger loss in court, and they have suggested the city may eventually be able to resell the property. Pontieri, by contrast, said nothing has been presented showing Palm Coast was likely to lose the lawsuit.
Pontieri said the city has little time left to reconsider the deal. "There's a lot of unanswered questions, and I think we have a very little window to take the exit trapdoor out," she said. "And yes, it will result in $1 million of liquidated damages, but that is far less than the $17 million that we will be on the hook for. Not to mention the $1.9 million bond and the millions of dollars that we'll end up spending on maintenance over the years. So the suggestion that this CRA amendment is only because we're removing one parcel is not accurate. We are amending the entire CRA plan in order to be able to purchase the rest of these lots."
Where can I learn more?
For more context on similar land fights, these stories look at disputes in Florida and beyond. They cover a Miami-Dade seizure fight, Florida preservation and HOA conflicts, and local backlash over development or government action elsewhere.
• In Miami-Dade, officials faced backlash after moving to seize 10 acres on Fisher Island.
• In Florida, a family's sale let the land remain undeveloped for lasting community preservation.
• Florida homeowners say a developer used hotel land to keep control of an HOA for decades.
• In Benton County, residents protested a new housing development they say local planners pushed through.
• In Kansas, a town allegedly destroyed a wildlife refuge and arrested the man protecting it.
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