Council approves sale of 8.5 acres in Whispering Pines to Sanders Trust for proposed rehabilitation hospital

The City of Palm Coast and the SR 100 Corridor CRA voted July 21 to approve a purchase-and-sale contract with Sanders Trust LLC for 8.5 acres in the Whispering Pines redevelopment area.

Virginia Smith, the city's land-management administrator, said the CRA and city previously purchased 22 lots in the area and had those parcels appraised; the 8.5 acres appraised near $2.8 million. Craig McKinney, the city's economic development manager, described the winning proposal as a $31 million investment to construct a 36-bed inpatient rehabilitation hospital, estimating about 100 full-time jobs at an average salary of $75,000 and ad valorem taxes of roughly $182,000 per year. "This project is gonna represent a $31,000,000 investment to construct a 36 bed inpatient rehabilitation hospital," McKinney said.

Council members asked whether contractual protections—such as a clawback or right of first refusal—could be added in case the buyer does not deliver the proposed development. City legal staff said such terms are negotiable but require mutual agreement. Representatives for Sanders Trust (via John Zobler) said Sanders Trust has a contingent 20-year lease with Clear Sky Health to operate the facility if the purchase closes.

The sale was approved unanimously. Council members and members of the public urged protections to ensure the discounted sale price results in the promised development, and staff said they would explore provisions such as clawbacks and right-of-first-refusal with the buyer during contract finalization.