Palm Coast Launches Vertical Development Incentive Program

The City of Palm Coast is launching its Vertical Development Incentive Program (VDIP), a targeted initiative to encourage private investment and redevelopment within a defined portion of the City’s Community Redevelopment Area (CRA) ahead of its scheduled expiration in 2034.

The program is designed to address a key challenge associated with large-scale development projects. Because these projects often take several years to complete, they have a limited window to generate returns under traditional incentive structures. The VDIP helps bridge that gap by offering performance-based financial incentives tied directly to the new tax revenue generated by each project.

Participation in the program is limited to a specific area within the CRA. Eligible projects must be located east of Old Kings Road, west of Landing Boulevard, north of Royal Palms Parkway, and south of Central Avenue. Only developments within this boundary will be considered.

Through the VDIP, qualifying projects may receive annual reimbursements based on a portion of the incremental property tax revenue they generate. Incentive levels are scaled according to the size of the private investment and include adjustments to account for the reduced timeframe before the CRA expires. Additional incentives may be available for projects that quickly advance and complete their project and/or develop on more than 5 acres.  All reimbursements are issued only after a project is completed, assessed, and generating new tax revenue.

The program is structured to ensure there is no upfront impact on the City’s general fund. All incentives are funded solely from the new tax increment created by the participating projects.

To be eligible, projects must be located within the designated area, include new vertical construction or substantial redevelopment, meet minimum investment thresholds, and demonstrate that the incentive is necessary for the project to proceed. Applicants must also show site control and development readiness, provide supporting financial documentation, and enter into a formal development agreement with the City.

Overall, the VDIP is intended to improve project feasibility within a compressed timeline, attract meaningful investment, and support the redevelopment of underutilized properties. These efforts will help strengthen the City’s tax base and support long-term economic vitality.

Developers, property owners, and interested parties seeking additional information or wishing to apply are encouraged to contact Economic Development Coordinator Jazmin Rosario at 386-986-2626.

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