Palm Coast city council unanimously approved a set of agreements and design work tied to the Matanzas Woods Parkway–Palm Coast Parkway loop road, a multi‑phase project that staff said is funded largely by state appropriations but will require significant local matching and coordinated utility relocations.

City staff described four phases of the loop road. "After we approve those agreements, our intent is to continue with the designer to finish up construction drawings for phase 2A, 3 and 4," said Carl Cody, director of stormwater engineering. Cody told the council this design increase will be fully funded by DOT per the agreements currently under review. He also noted the city will need right‑of‑way purchases east of the tracks and utility relocations for transmission lines.

Why it matters: The project carries large statewide and local sums and multiple dependencies — DOT grants, FPL transmission relocations, and an FEC at‑grade crossing closure tied to the bridge/overpass design. Cody told council the project has an existing $25 million state appropriation for DOT and that the city’s costs are “roughly $10,000,000,” with additional DOT funds identified in later years of the work program.

Funding and scope clarifications: Staff described two DOT grant amounts in the agenda description — $24,950,000 and $30,100,000 — and said construction pricing was not yet available because bidding is pending. The city also is pursuing agreements with Florida Power & Light for distribution relocation and anticipates FEC will perform the at‑grade crossing closure work after the interlocal agreement with Bunnell is finalized. "We still have a right of way agreement that we need with the property owner, and FPL's transmission relocation — those bids come in at the end of this month," Cody said.

Council questions and staff response: One council member asked whether the city could be left responsible for cost overruns after accepting grant agreements. Cody and other staff said they had worked with contractors and consultants to rescope the work to match available funding and that the grant language had been crafted to limit the city’s exposure. Cody summarized the bid approach: "When we put out to bid, they're gonna fill up the station marker of how far this money is gonna go. We're gonna say this bid is $30,100,000... whoever gets us the furthest." He told the council that the design goal is to provide scopes that contractors can bid within the available funds; staff said they were confident the revised scope for phase 2 will come in within the available funding.

Next steps and timing: Staff said the design packages for phases 2A and 4 are being compiled for permitting (permit submittal expected within about nine months) and that the green segment under current design could bid soon with construction starting early 2026. Council asked staff to return with final agreements, the right‑of‑way acquisitions, and the FPL transmission relocation cost once bids are received.

Ending: Council approved the design amendments, DOT grant agreements on the agenda and related work orders; staff will return with finalized agreements, bids and additional contract approvals as those documents are completed.