Palm Coast council approves first reading to create Lighthouse Community Development District

The Palm Coast City Council on Tuesday approved, on first reading, an ordinance creating the Lighthouse Community Development District (CDD), a special-purpose unit that would fund infrastructure for a planned mixed-use development in the northeast quadrant of Copeland and Roberts Row.

The CDD petition covers roughly 67 acres and would be used to finance roads, utilities and other infrastructure to serve a project the applicant described as up to 785 residential units (664 multifamily units plus 121 townhouses), a 200-slip boat storage area and approximately 200,000 square feet of commercial space. Senior planner Fong Wing told the council the petition "is in compliance with Florida statutes chapter 190" and met the six statutory factors the city must consider for a CDD.

Staff emphasized that a CDD is a funding mechanism, not an entitlement: "It's a funding mechanism to help them to finance the infrastructure," Fong Wing said. He told the council the CDD would allow potential purchasers of lots to be notified by the Flagler County Tax Collector of any assessments. Planning staff said the district would reduce costs borne by general taxpayers by shifting infrastructure financing and maintenance to the CDD and its assessments.

Council members asked practical questions about capacity and public safety. Councilmember Michael Hansen (planning staff) and others noted wastewater flows from the project will go to Wastewater Treatment Plant 1 and that, per state law, purchasers must be notified about CDD assessments. During discussion, the council also heard a public comment asking whether taxpayers would ultimately bear costs; staff responded that the CDD is intended to make the development self‑funding for the infrastructure the district will maintain.

The motion to approve first reading of the ordinance establishing the Lighthouse CDD carried 4-1, with Mayor Michael Norris dissenting. City staff announced a second reading and public hearing will be scheduled for Aug. 5, when the council could vote to finalize the creation of the district.

Why it matters: A CDD creates an ongoing assessment obligation for property owners inside the district and a five‑member board of supervisors to operate district facilities. If adopted, the district will shape how new development is built and maintained and how new homeowners are charged for infrastructure costs.

What’s next: The ordinance returns for a second reading Aug. 5; if adopted, the district can issue bonds and levy assessments to fund construction and long‑term maintenance.