The City Council acknowledged receipt of a pre‑suit letter from the Flagler County Home Builders Association challenging the city’s 2025 impact fee ordinance. City Attorney told the council the letter arrived last week and that staff and legal counsel are analyzing its claims and will provide advice "sometime this week or next week." The attorney also said a formal litigation posture and next steps will be evaluated.

Public speakers raised related concerns about impact fees. Mindy Melendez asked whether statutory provisions exist to reduce or exempt impact fees to support affordable housing initiatives. Tony Amaral provided comparative impact fee figures, telling the council: “Saint John's County total impact fee is 28,800, plus or minus a few dollars. Volusia County is 21,000. Ormond Beach is sitting currently at 13,200, and we are currently sitting at 33,200 total dollars.”

During discussion, council members noted the months‑long public process that led to the ordinance and said staff and council tried to calibrate fees — including square‑footage adjustments — to reduce burdens on smaller homes. Councilman Sullivan said the builders had ample opportunity to present concerns during the hearings and observed that legal challenges are a possible next step.

The city attorney said staff will analyze the pre‑suit letter and, if necessary, recommend procedural steps; he warned that follow‑up may require additional legal review and could include requests for continuance if the response deadline requires more time. No motion to settle or to change the ordinance was made at the Sept. 2 meeting.