First step toward annexation for Veranda Bay, which could double Flagler Beach’s population by 2044

The developer is planning a 2,700-residential unit and commercial development on the 900 acres.


The Veranda Bay development. From Flagler Beach Commission meeting documents
The Veranda Bay development. From Flagler Beach Commission meeting documents
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If the 899-acre Veranda Bay development is annexed into Flagler Beach, it could double the city’s population by the time it is fully built out in 2044.

The annexation has been in the works for over a year. Commissioner Rick Belhumeur said he began discussing with developer Ken Belshe to have the development annexed to Flagler Beach instead of Palm Coast since January. The development would be a 20-year project that would be built in phases, city planner Lupita McClenning said.

The Flagler Beach City Commission reviewed the development’s annexation agreement, future land use and zoning applications at a special meeting on Sept. 17. While the commissioners did approve the first reading of the annexation and the land use application in 4-1 votes, the zoning application was tabled until the Sept. 26 meeting.

Commissioner Eric Cooley was the sole dissenting vote on both items. He said he felt that the commission should hold off on approving the ordinances until after a workshop meeting was held.

“If we're moving forward and voting on ordinances that, in my opinion, we barely had time to get through, the public certainly has not had time to get through — I have concerns if that's the right thing to do,” Cooley said.

Because the Sept. 17 meeting lasted over four hours, many of the residents who’d initially filled the city’s commission chambers did not get a chance to speak.

The Flagler Beach Commissioners ultimately agreed to have a workshop meeting at 5:30 p.m. on Sept. 24, with the idea that the meeting would be heavily focused on public comment and answering the residents’ questions regarding the large and complex development.

And complex it is. The development was originally some 2,000 acres, but around 1,100 acres of that land was given to Flagler County, primarily for conservation land.

Flagler County originally approved the Planned Unit Development for just 453 residential units, but the development was also supposed to have an 18-hole golf course, a dedicated public boat ramp, commercial, retail and office space, according to meeting documents. Parts of the approved Flagler County development, around 160 acres, are already under development, McClenning said.

But the model Flagler County approved is no longer economically viable, attorney Michael Chiumento said. Chiumento represents Veranda Bay.

Instead, the developer is planning a diverse, 2,700-residential unit and commercial development in its place. Belshe said the vision is for Veranda Bay to have a mix of upscale dining, shopping entertainment and residential areas.

“We are in the lifestyle business,” Belshe said. “We do a heavy amenity package in all of our communities, and certainly Veranda Bay will be no exception.”

Flagler Beach has a population of just over 5,000, according to the U.S. Census Bureau. Veranda Bay, once it is built out, is projected to have a population of 5,688.

After 20 years of an annual 2.7% growth rate, McClenning said, Flagler Beach could have a population of just over 13,000 in 2044, based on the data projection, if Veranda Bay is annexed.

Of the 2,735 residential units, Belshe said, it will be a mixture of detached single-family homes, townhomes, apartments and condos.

I will make a commitment tonight that we will not exceed the 2,735 in the whole thing.”

— KEN BELSHE, Veranda Bay developer

Cooley asked Belshe if the residential units in the commercial spaces — which Belshe had repeatedly described as mixed-use — were included in the 2,735 residential units proposed, or separate.

Belshe said it was not originally, but that he would commit to not exceeding the 2,735 units.

“I will make a commitment tonight that we will not exceed the 2,735 in the whole thing,” he said.

Flagler Beach’s code requires that 40% of the development’s land be dedicated to open space — around 300 acres, in Veranda Bay’s case.

A development as large as Veranda Bay would also require upgrades to Flagler Beach’s own infrastructure and utilities. With a projected population of 5,688 people, Veranda Bay would increase Flagler Beach’s potable water demand by 711,000 gallons per day, just for the residential use.

But the agreements with Veranda Bay also requires that development and infrastructure keep apace, Smith said.

“In the MPD [Master Planned Development] agreement, it specifically says that if utilities and infrastructure are not available at the time you want to do them, you're going to have to hold,” Smith said.


That’s the most that can happen tonight, is you move the ball forward.”

— DREW SMITH, Flagler Beach attorney

Flagler County is also requesting Flagler Beach considering taking ownership of the section of John Anderson Highway that falls either in city limits or inside the development’s boundaries, if the commission accepts the annexation. Though the road is in good condition, it is unclear how much it would cost to maintain the road.

“We think it's rather logical, because this is a minor [collector] where you are annexing in both sides of the roadway,” County attorney Sean Moylan said. Flagler Beach taking ownership of the road would need to be voluntary and could be done later through an interlocal agreement.

The annexation agreement also asked for concessions from some areas of the city’s code because of the developments large economic impact and other contributions. For example, because of the large commitment of 40% of land to open spaces, the annexation agreement asked for an exemption to the city’s tree preservation and mitigation requirements.

Smith reminded the commissioners — and residents — that approving the first reading did not commit Flagler Beach to the annexation agreement. Changes could still be made, he said.

The approval of the first reading was just to get the ball moving so the agreement could be sent to Tallahassee for comments and approval, he said.

“That’s the most that can happen tonight,” he said, “is you move the ball forward.”

 

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