- March 31, 2025
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Peavy Grade is easy to miss, about a mile south of Matanzas Woods Parkway, west of U.S. 1. Photo by Brian McMillan
Belvedere Terminals is proposing to build a one-mile spur just to the west of this track, parallel to U.S. 1 in northern Palm Coast. Photo by Brian McMillan
The Belvedere facility is proposed at where Peavy Grade meets the railroad tracks, west of U.S. 1, in Palm Coast. Photo by Brian McMillan
On Peavy Grade. Photo by Brian McMillan
The Belvedere facility is proposed west and north of LCD of Flagler, a construction dump. Photo by Brian McMillan
The proposed Belvedere Terminals facility would be located in the bottom left of this map, where Peavy Grade meets the railroad tracks, sandwiched in between Water Treatment Plant 3 and LCD of Flagler. Google Maps image
With $10 million of aid from the state of Florida, startup Belvedere Terminals plans to develop a $75 million fuel storage facility near the railroad tracks west of U.S. 1, in northern Palm Coast, by the end of 2026.
The company faced tremendous backlash in 2023-2024 — from residents and elected officials alike — when it proposed building the facility in Ormond Beach.
“We still have a site in Ormond, but we decided not to develop there,” Belvedere’s chief financial officer, Timothy Schwarz, said in an interview on March 27.
In Flagler County, he said, “We found this a much more welcoming climate because of the need for industrial development.”
The facility, planned on land that's already zoned for industrial use, would generate nearly $800,000 in local tax revenue per year, according to Flagler County Administrator Heidi Petito.
Considering the lack of industrial development in the community, this project fits with the county’s strategic plan, she said.
“These are areas we need to focus on, maintaining that quality of life, and to reduce the tax burden on homeowners,” Petito said. “We’re trying to prioritize sustainable growth.”
WHERE IS THE LAND?
The proposed site is on Peavy Grade, a bumpy road that’s easy to miss along southbound U.S. 1, just south of Matanzas Woods Parkway. The road is marked by a sign for the City of Palm Coast’s Water Treatment Plant 3 and Wastewater Plant 2. The city recently broke ground on a new Maintenance Operations Center on the road as well.
Past a construction materials dump zone, a dirt road leads the rest of the way, where Peavy Grade ends at the railroad tracks. There, Belvedere plans to build a one-mile rail spur for offloading the fuel into storage tanks.
WHAT’S THE PURPOSE?
While gasoline and diesel fuel are currently hauled by ship and long-haul trucking to Florida, Belvedere’s strategy is to haul it most of the way by rail instead. Its $500 million overall plan is to build terminals in Jacksonville, Palm Coast and Fort Pierce simultaneously, to supply fuel to the state with much less of a reliance on long haul trucking. That would reduce emissions, the risk of accidents on highways, and the dependence on ports during storms, Schwarz said.
Schwarz said Belvedere’s plans would all but eliminate supply disruptions that lead to gas stations running out of fuel during hurricane evacuations.
“We’re connecting a lot of dots that haven’t been connected,” he said.
The distribution costs would be cut by about 10%, he estimated. Although that doesn’t determine the cost of gas per gallon, he predicted that Palm Coast gas could drop about “a nickel.”
The proposed facility in Palm Coast would cover almost 80 acres, employing 30-40 people with salaries around $100,000.
It would comprise five or six tanks that would be refilled about once per week by train. Short-haul trucks would then transport the gas to local gas stations in Flagler and surrounding counties.
IS IT SAFE?
The 300,000 barrels of gasoline and diesel would be stored across the street from city utilities and about 3,000 feet from two wells. The facility is also not far from housing developments to the south.
Security will be strong, according to Schwarz, with locked gates and key card system accessible to a small staff of about 30 people with badges.
“No one other than our people are allowed in the tank facility area,” he said.
Every time fuel is transferred from a rail car to a tank, it would be coupled, with minimal emissions. The state allows 0.1 parts per million, he said, and Belvedere’s technology would be just 0.01 parts per million of emissions.
In the event of a “catastrophic event,” Schwarz said, meaning an explosion, no impact would be experienced outside of the Belvedere property.
The property would have berms and landscaping, as well as a nonpermeable membrane underneath the bedrock to prevent any leaks.
“Every tank has both visual and electronic inspections,” he said. “Even if tanks ruptured and spilled, it not leave the containment system.”
When the rail cars leave the railroad and enter the Belvedere spur, they would slow down to “walking speed,” he said.
NEXT STEPS?
The Flagler County Board of County Commissioners will hear a presentation about the Florida Department of Commerce's $10 million grant that would enable the Belvedere Terminals deal to move forward.
The county would then need to enter a purchase and sale agreement with Belvedere, including a lease of the property.
The City of Palm Coast will govern the development of the site. Without a site plan yet, Chief of Staff Jason DeLorenzo said he couldn't be certain whether the application would require City Council approval, or only planning board approval.
Palm Coast and Flagler County officials are aware of the opposition in Ormond Beach, which Schwarz characterized as the result of "misinformation."
Petito and Acting Palm Coast City Manager Lauren Johnston are planning to be guests on "Free For All Friday" on March 28, to discuss the project. Town hall meetings will follow to make sure the community has the facts.
"All it takes is somebody to put something out there that's incorrect," Petito said, "and how do you reel that back in?"
Johnston believes the Belvedere project's impact on the community would be positive.
"Investors are choosing Flagler County — our community," she said. "We don’t want to scare that off. ... There are tons of communities all over, fighting for investment in their community. and if we don't act, then another will win, and we'll lose."
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