Settlement Agreement in Holland Park Splash Pad Litigation to Be Presented to City Council February 17

The Palm Coast City Council will review a proposed settlement agreement at the City Council Business meeting on February 17, resolving litigation related to the original construction of the splash pad at James F. Holland Memorial Park. 

The City initiated legal action in 2022 to recover damages associated with construction and design defects and repair of those defects specifically related to the splash pad. Under the proposed settlement agreement, the City will recover $2.375 million against $2.4 million in principal damages. If approved by City Council, the recovery would represent the substantial majority of the City’s claimed principal damages related to defective construction.

The splash pad was part of the $6.28 million Phase II renovation of Holland Park, which also included 20 new pieces of playground equipment, covered pavilions, and improved lighting, and opened with a ribbon-cutting on May 14, 2021. Shortly after opening, the City identified significant operational and design issues with the splash pad that ultimately led to the amenity's closure for repairs.

Following a comprehensive engineering evaluation, the City identified substantial design, construction and installation deficiencies, including non-compliant surfacing materials, drainage failures, water loss issues, and other system defects that prevented the splash pad from operating as intended.

Once defects were confirmed, City Council directed staff to aggressively pursue recovery of taxpayer dollars. The current City Council inherited the issue and made financial recovery a priority to ensure Palm Coast residents were not left bearing the full burden of construction failures.

By addressing the defects promptly and reconstructing the facility correctly, the City:

• Prevented further deterioration and escalating repair costs
• Delivered a safer, code-compliant facility
• Secured a significantly improved finished product
• Recovered the majority of principal damages
• Provided residents with the desired community amenity 

The rebuilt splash pad reopened on July 3, 2024, and has operated successfully since that time.

Timeline

• February 2018 – Construction contract executed for Phase II improvements
• May 14, 2021 – Splash pad ribbon cutting 
• Summer 2021 – Operational failures and surface issues identified
• October 2021 – Splash pad closed
• June 2022 – Independent engineering analysis completed; litigation filed
• July 3, 2024 – Reconstructed splash pad reopened
• February 17, 2026 – Proposed settlement presented to City Council

“This was an issue our Council inherited, but we were determined to see it through,” said Mayor Mike Norris. “We worked hard to resolve the litigation, recover as much taxpayer money as possible, and make sure the splash pad was rebuilt the right way. Today, our families have an exceptional amenity they can enjoy, and we made sure our community wasn’t left footing the whole bill.” 

The February 17 City Council meeting begins at 9 a.m. in the Jon Netts Community Wing of City Hall, 160 Lake Avenue. The meeting will also be streamed live on the City of Palm Coast’s YouTube channel. 

The Splash Pad re-opens for the season on March 1, 2026. For more information about James F. Holland Memorial Park and City recreational amenities, visit palmcoast.gov/holland-park.

Stay informed with the latest news and information from the City of Palm Coast by following us on Facebook, Instagram, Twitter, YouTube, and LinkedIn. You can sign up for weekly updates by visiting www.palmcoastgov.com/government/city-manager/week-in-review