- March 5, 2025
City officials have unofficially approved an interlocal agreement in which the county would provide Palm Coast with $3.5 million to finish two road extension projects before the Interstate 95 interchange at Matanzas Woods Parkway is built.
The county sent the city a proposed interlocal agreement Friday afternoon, just days before the City Council was expected to look into alternative funding sources and possible conflict resolutions at Tuesday’s workshop.
Instead, the two sides seem to have reached a common ground.
“It sounds like everybody is on the same page,” County Commission chairman Nate McLaughlin said Tuesday after the city’s workshop meeting. “We are just as excited as Palm Coast is about these two projects, and we’re certainly happy to participate.”
Under the agreement, the county will give $1.5 million to the city immediately after the two sides sign on the dotted line. Then, within six months to a year, the county will give the city another $1.5 million after the state reimburses the county for money already spent on the interchange.
The final $500,000 will be paid to the city when the state reimburses the county for money spent designing the Old Kings Road extension for the city.
Communication troubles seemed to be at an all-time high just last week, as city officials publicly expressed their frustration over the county’s lack of urgency in getting an interlocal agreement drafted. County officials said it was a complicated agreement, and was among many that staff was working on.
The city will use the money for land acquisitions in the area of the Old Kings Road and Palm Harbor Parkway extensions. These projects, city officials say, should be completed before the interchange is built.
Council members on Tuesday discussed potential alternatives in case the state chooses not to reimburse the county.
City Manager Jim Landon said he can’t make any guarantees, but he said because the projects are far enough along that there shouldn’t be a problem.
“This interchange project has been funded (by the Florida Department of Transportation),” Landon said. “So the chances of the county not getting reimbursed are relatively small. I would be very surprised if the county did not get reimbursed.”
Landon did say the city has enough money in its street improvements fund if the county did experience any hiccups.
“I am willing to act in good faith with the assumption that the county is also going to act in good faith,” Palm Coast Mayor Jon Netts said.
The reimbursement from the state to the county is common practice, said City Councilman Jason DeLorenzo.
McLaughlin also downplayed the notion that there is a city-versus-county fight. “There never was,” he said. “This is a project the county believes in. We are excited about it, and we think it’s good.”
Both the County Commission and the City Council must approve the interlocal agreement before anything is final. That is expected to take 30 to 60 days.
