City Council Approves Settlement Agreement with Palm Coast Holdings LLC and Related Entities, Creating Economic Development Opportunities for 259 Acres in Town Center

The Palm Coast City Council approved an agreement with Palm Coast Holdings LLC and related entities that will settle a lawsuit involving the City while giving Palm Coast the opportunity to purchase approximately 259 acres of land in Town Center.

Under the agreement, the City will purchase the property for $17 million. The purchase is part of a larger settlement that will resolve the lawsuit between the City and the plaintiffs. 

The property is currently vacant or undeveloped land within Town Center. If the purchase is completed, the City will become the owner of the property and will have greater control over what happens there in the future. That could include making portions of the property available for businesses, developers, or other projects that support the City's economic development goals.

The agreement also gives the City control of development rights associated with the property. As part of the agreement, the sellers will give up their remaining rights and interests related to the property and agree not to challenge the City's future decisions regarding those rights.

“This agreement gives Palm Coast an opportunity to take a difficult situation and turn it into something that could benefit our community,” said City Manager Mike McGlothlin. “Owning this land gives the City more options for the future and allows us to be more directly involved in determining what types of development make sense for this important part of Palm Coast.”

The City will not be required under this agreement to develop the property itself. Instead, the City will be able to evaluate the property and determine how it can best be used to support the community and Palm Coast's long-term economic development goals.

Palm Coast Holdings LLC and related entities filed a lawsuit against the City in October 2025. The lawsuit involved disagreements related to development in Town Center and the availability of water and sewer capacity. The City has denied liability in the case.

As part of the settlement, neither side admits wrongdoing. Both sides will release their claims related to the lawsuit, and each party will be responsible for its own legal costs. Once the City closes on the properties, the parties will ask the court to formally dismiss the lawsuit. 

The City and Palm Coast Holdings will now move forward with the purchase process. The City will have 60 days to conduct its review of the property, including inspections, surveys, and environmental assessments. 

If the purchase moves forward, the City will receive ownership of the property at closing. The closing is expected to occur within 30 days after the City's review period ends, assuming the requirements of the agreement are met. 

Once the City owns the property, City Council and staff will evaluate the best options for its future. Those options could include making portions of the property available for economic development projects that bring new businesses, investment, and jobs to Palm Coast.

The City will share additional information about the property and future plans as the purchase process moves forward.

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