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Development of Palm Coast

From EverybodyWiki Bios & Wiki


The Development of Palm Coast was a project of the International Telephone & Telegraph Corporation, one of the best capitalized and powerful companies at the time. Over 25 years they built the infrastructure, promoted and sold the area to tens of thousands of people from the midwest and northeast and acted as a private government to over 25,000 residents before they withdrew in 1995.[1]

Pre-development

In the late 1950s, most of the land that would become Palm Coast consisted of swamp and pine forest, with a number of farms and beach houses as well as a turpentine distillery.[2] Business activity was concentrated along Florida State Road 100.[2] The Pennsylvania-based Lehigh Cement purchased 9,000 acres (3,600 ha) of Flagler County land in 1948 and began building a $20 million manufacturing plant in 1949.[3] The plant opened in 1952 and employed 300 for a dozen years.[4] The Bunnell plant was closed down in 1965.[5] Tourists paid fees to hunt and fish in the area.[2]

Main article: Palm Coast, Florida

Brand new community

In 1968, ITT acquired timberland company Rayonier, which owned over 30,000 acres (46.875 square miles) in Flagler County, Florida. At the time, the population of the county was under 5,000, among the smallest counties in the state. ITT wanted more from their investment than the proceeds of wood pulp from slash pine trees. ITT noted the success of Gulf American Land Corporation and the Mackle Brothers buying cheap land and selling it through installment land purchases. ITT decided to create a destination with infrastructure, housing and jobs for the new residents.[6] ITT created a master-planned community, transforming thousands of acres of wetlands and pine forest into a residential golf-centered city of over 500,000.[7][8][6] ITT purchased the closed Lehigh Portland Cement plant with 9,000 acres for $20 million,[3] and tracts from 35 other owners to total 93,000 acres (145.3 square miles), the size of Cleveland.[6] The cement company's former offices were used by ITT for several years until a new office building, "Corporate One" was constructed in Palm Coast.[9][10] There were failed developments all over Florida, but most were because of money issues. From the start, ITT was confident that their financial resources would solve any problems encountered.[6] Under CEO Harold Geneen, the company had annual revenues over $7 billion in 1968.[1]

That same year, ITT purchased homebuilder Levitt & Sons for a reported $91 million. Dr. Norman Young led Levitt's marketing group, who planned the project and suggested the name, Palm Coast.[8] The development initially used the names of ITT and Levitt & Sons until anti-trust issues prompted the U.S. Department of Justice to require them to split. ITT formed the Community Development Corporation (CDC) in 1971, which became the official developer. Young remained in charge of the project until 1975, when ITT executive Alan Smolen took over.[1]

Opening

File:Palm Coast Water Tower 20230315 182717.jpg
Palm Coast Watertower

The grand opening of the Palm Coast development occurred on October 29, 1970, a date now celebrated as Founder's Day.[11]

CDC's marketing used TV commercials, direct mail campaigns and print advertisements to attract prospective buyers including the popular cartoon character Garfield in Palm Coast promotions.[12] The salespeople were professional but aggressive, and initially targeted retirees and vacationers from the Northeast and Midwest. It became clear that other demographics would be necessary for the development's success, so middle-class families were included.[13] Sales activities occurred at the Welcome Center which had walkways to a dozen homes as models. A six-story observation tower provided panoramic views of the surrounding woods, lakes, streams, Intracoastal Waterway (ICW), and Atlantic Ocean. Surrounding it was a golf course, streets and early home construction that became Palm Coast's "core".[8] Sheraton Hotels and Resorts were acquired by ITT in 1968.[14] ITT built the Sheraton Palm Coast Resort in the early 1970s to house potential buyers flown in for tours. It was a small hotel with 106 rooms, not a typical Sheraton property, and it was later demolished.[15]

In 1974, CDC built the iconic bright blue Palm Coast water tower beside Interstate 95 that still stands today.[16] The marketing was very successful, with over 38,000 lots sold after five years. Many of the purchasers were from New York or New Jersey; Ohio, Pennsylvania and Connecticut were also the home of future residents. Some built homes and moved to Florida immediately, but most buyers held their lots as investments.[1]

CDC built "Corporate One", a 51,906 square feet (4,822.2 m2), three-story headquarters at 1 Corporate Drive that opened in 1977 to serve as Palm Coast's administrative hub. It was situated on 7.4 acres (3.0 ha) in the median of Palm Coast Parkway.[17]

The I-95 interchange (Exit 289) at Palm Coast Parkway, which opened in 1981, was funded by CDC at minimal cost to the state and local taxpayers. Until then, access to Palm Coast was the interchange at Florida State Road 100, then seven miles north on a newly built access road.[8]

Beach access

For nearly 20 years until the Hammock Dunes toll bridge opened in 1988, the primary way to reach the beach necessitated at least a 30-minute drive. It required crossing the Flagler Beach Bridge, a drawbridge at the time.[18][19] If the drawbridge opened for boat traffic, it caused a delay of at least several minutes; more if multiple boats were in line. The drawbridge was not replaced with a high-level fixed-span bridge until 1996.[18] There was a tourist boat at the Palm Coast Welcome Center that ferried guests to a small dock across the ICW.[20]

Speed bumps

Five years into the development, a special assistant from the office of Florida's attorney general was quoted, "Palm Coast has all the makings of the most frightening ecological nightmare we have ever faced in our state."[6] In the mid-1970s, the Florida Department of Environmental Regulation was created and laws got stricter and better enforced. Initially, CDC was not an ecologically sensitive organization; they were an industrial powerhouse established in 1920. CDC was digging canals through the property like a strip mine, removing all the vegetation and dredging. Environmental groups were protesting, warning the canals would allow saltwater intrusion.[6]

A grand jury in Flagler County indicted Dan Cooper, project manager. To avoid the rigorous new State environment regulations, they found he had submitted falsified documents. Cooper insisted that his superiors knew the surveys were faked but he was fired anyway. Cooper sued CDC and was counter-sued. CDC and their contractors traded litigation.[6]

The United States Department of the Interior and the United States Environmental Protection Agency began investigating Palm Coast's development practices. Due to questionable marketing techniques, the United States Department of Housing and Urban Development demanded that Palm Coast temporarily stop selling property in 1976.[6] They objected to "misleading" sales practices by "suggesting" to customers that ITT would always be financially responsible if Palm Coast failed.[6]

ITT was at the point where they could abandon the project or stay and spend the money required to do the project correctly. They chose to stay. The state ordered an extensive detailed impact study of the area ecology. CDC brought in hydrologists, botanists, geologists, archeologists and zoologists. They worked together with planning and environmental officials to produce the most comprehensive land plan ever for a housing development in Florida. The cost was several million dollars, but the Palm Coast management became a group of people with a different environmental attitude, and the Palm Coast development plan was redefined. [6] "Our environmental and aesthetic standards exceed those of the county and state," according to former Fort Myers city planner James Gardner, who joined the project in 1977 and became president of CDC.[6] The end result was that Palm Coast was required to follow the new rules and remains an appealing area to this day.[6]

Original plans projected 100,000 residents in 1990. At the end of 1988, there were just 11,000,[21] so CDC reduced the population goal to 225,000.[6] An Orlando Sentinel article at the time stated,

"...instead of building houses and businesses and then worrying about how to build – and pay for – adequate city services, the developer built the streets and the schools and the sewers first. Now a community of 11,000 people sits atop an urban infrastructure built to serve a population of 225,000."[6]

A different vibe

CDC recruited industry for Palm Coast, but only pollution-free, environmentally conscious businesses were invited. The manufacturing facilities were set back from roads; woodlands are used as buffers between retail, housing and industrial areas. Businesses were also scrutinized and required to comply with strict zoning requirements. Even the retail businesses on the main thoroughfares were different than most every other city. Parking lots are set back from the roadways. Signage was limited in size and height. City officials stated, "We'd rather not have businesses than have businesses that don't fit into the overall plan."[6] The city has a huge network of pedestrian and bicycle paths. Littering is not a problem, nor is crime. Signage during election cycles is limited to a designated esplanade. Strangers converse while shopping at Publix. In 1988, a retired school principal stated:[6]

"It's green; it's clean; it's well planned. You don't have to look over your shoulder and worry about getting mugged if you take a walk at night. There's plenty of recreational opportunities. It's affiliated with ITT, which means that you don't have to worry whether it's going to be here tomorrow or not."[6]

The numbers at 20 years (1990)

  • International Telephone & Telegraph's (ITT) investment exceeded $1 billion[21]
  • CDC projected 100,000 residents in 1990;[21]the actual population was 18,556.[1]
  • The development had 508 miles (818 km) of sewers, 529 miles (851 km) of water lines and 533 miles (858 km) of streets[21]
  • Palm Coast has 55 miles (89 km) of navigable waterways, including both the canal systems and the Intracoastal.[22]
  • Besides the Intercoastal Waterway, there are 46 miles (74 km) of freshwater and 26 miles (42 km) of saltwater canals[23][22]
  • More than 130 miles (210 km) of paths & trails are available for walking, jogging or bicycling to 12 parks[23]
  • Walmart was the largest retailer, and the first movie theatre opened in 1987[21]
  • Industrial parks host 30 manufacturing companies who employ 1,300 employees[21]
  • CDC-owned Palm Coast Construction built 50% of private residences: $40 million[21]
  • CDC also operated a cable TV system, a mortgage company, a title company and a pool builder[21]
  • An CDC subsidiary managed the golf and tennis facilities.[24]
  • The Palm Coast Sheraton Hotel and Marina, owned by CDC, was used to attract potential residents for 30 years[25]
  • The Sheraton Hotel was closed for years before being sold for redevelopment to Jacoby Development.[25]

The Palm Coast planning director stated in 1988:

"I think we are really beginning to hit critical mass. We have reached the point where one industry spawns another industry. As a result of this, we have actually had people who come here to retire and are now running their own businesses because the opportunities were so rich here they un-retired."[6]

Most of the residential property was sold by 1990, but the sale and construction of commercial properties will reward CDC's patience and troubles. In 1987, a parcel was purchased by a convenience store for $300,000.[6]

ITT Exit

In 1994, ITT-CDC announced that after developing more than 68,000 acres, it intended to sell much of its remaining Palm Coast holdings, which straddle Interstate 95 in Flagler County. The president of ITT-CDC, Jim Gardner, stated:[26]

"We are downsizing operations, exploring the sale of various subsidiaries and actively marketing commercial, resort and residential properties throughout Palm Coast. We continue to sell and build homes in Palm Coast, with a growing emphasis on our private oceanfront community, Hammock Dunes."[26]

ITT announced in April 1995 that a letter of intent was signed to sell its four Palm Coast golf courses, the marina, the Sheraton Hotel and the tennis complex to USA Golf Properties Inc. of Orlando.[26] There were negotiations to sell ITT's home-building division, ITT Community Homes, along with 10,000 acres (4,000 ha).[26]

The ITT headquarters at 1 Corporate Drive was sold to a private buyer in 1996. The Flagler County School Board purchased the building in 2001 for $3.5 million. It was used for administrative offices and the Flagler Technical Institute (adult education).[27] It was demolished in 2016.[1]

ITT-CDC sold their remaining Palm Coast properties to Allete dba Palm Coast Holdings in 1996.[28] Rayonier, which was divested from ITT in 1994,[29] sold their remaining Palm Coast properties to Allete in 2000.[28] Palm Coast Utility Corporation, which supplied water and processed sewage, was sold to Allete dba Florida Water Services in 1999.[30]

In December 2011, after nearly 30 years, the Flagler County Commission declared the Hammock Dunes DRI closed. That meant the developers were released of all significant obligations to the county and Palm Coast in the future.[31] An interlocal agreement in 2012 eliminated a liability of $38 million to expand the bridge; surplus revenue was directed to community projects including beach restoration, roadway safety improvements and stormwater management.[32]

Palm Coast Holdings closed in 2017 and turned their portfolio over to a regional real estate broker.[28]

When Palm Coast incorporated as a city in 1999, they accepted responsibility for maintenance of 533 miles of roads. In 2003, the city purchased Florida Water Services for $82.3 million by selling an $89.6 million bond for acquisition and expansion of the utility. There was a $60 million balance as of 2025.[33] The city became responsible for 508 miles of sewer and 529 miles of water pipes, both at least two decades old.[21]

Criticism

  • As was typical of Levitt developments at the time, it was limited to white residents and not integrated for several years until a professional with a Jamaican wife was admitted.[1]
  • When ITT withdrew in 1995, they could have helped the community discuss ways to replace the management void left by their departure.[1]
  • Palm Coast contended that the widening of the Hammock Dunes bridge and the expansion of Palm Harbor Parkway should have been completed by ITT.[31]

Incorporation

Jim Canfield, a retired High School superintendent from Manhattan, unsuccessfully ran for County Commission in 1992. The movement for incorporation started as soon as ITT withdrew in 1995. Canfield led the movement for Home Rule Coalition, insisting that the city should self-govern. The opposition worried about a change from the comfortable arrangement under ITT, bureaucracy and high taxes. The Flagler County Commission paid for a feasibility study, the local legislative delegation sponsored incorporation, and the legislature approved a referendum.[1] When ITT left Palm Coast the population was nearly 29,000, 70% of all Flagler County's residents, but only allocated one Commission seat. Palm Coast residents were extremely dissatisfied, and the Palm Coast Civic Association began preparations for incorporation. Canfield was appointed chair of the Home Rule Committee. The feasibility study stated that an average house with a value of $87,000 would only pay $123 more in city taxes. Canfield tried to appease the opposition by telling them, "It is not about money, it is about identity."[34] In the September 21, 1999 referendum, 60% (6,994) voted for incorporation; 40% (4,591) were opposed.[1][34] In the Palm Coast City Council election, nine candidates ran for mayor, with Canfield receiving the most votes. In the runoff, Jim Canfield was elected Palm Coast's first mayor with 69% of the vote.[34] The Palm Coast Service District transferred all services to the new Palm Coast government on October 1, 2000.[1]

The 1998 Florida wildfires were national news because the whole county was ordered to evacuate, and 45,000 people were displaced. It the time, there were only two places to cross I-95 in Flagler County, so plans began for a northern east/west thoroughfare. The project was split into two parts:[35]

  • The Matanzas Woods Parkway overpass of Interstate 95 opened in December 2006. It cost $12.6 million.
  • The I-95 interchange (Exit 293) at Matanzas Woods Parkway opened in March 2016. It cost $12.5 million.

The Federal Highway Administration and Florida Department of Transportation paid 94% of the cost with Flagler County paying $1.26 million in total. The project was delayed when Governor Jeb Bush vetoed the project three times.[35] Besides improving traffic flow in emergencies, it will encourage development and relieve congestion on other local roads.[36][37][35]

Since 2008, the operations of city hall were jammed into the 20,000 square feet (1,900 m2) City Marketplace offices.[38] Construction on a new, $9.15 million Palm Coast City Hall began in October 2014. The 41,309 square feet (3,837.7 m2), two-story structure at 160 Lake Avenue in Town Center opened on October 26, 2015.[39] The new facility had the capacity for more than the 135 current employees and a clock tower.[38]

References

  1. ↑ 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 "ITT and Palm Coast: The Story of How a Corporation Built a Florida City". askflagler.com. AskFlagler. Retrieved 8 May 2026.
  2. ↑ 2.0 2.1 2.2 Dycke, Arthur E. (2015). "Through the years in Palm Coast 1968-2014" (PDF). The Palm Coast Historian. Retrieved March 22, 2021.
  3. ↑ 3.0 3.1 "Lehigh Portland Cement plant included railroad spur". news-journalonline.com. Daytona Beach News-Journal. Retrieved 10 May 2026.
  4. ↑ "The History of Lehigh Portland Cement Company". facebook.com. Flagler County Historical Society. Retrieved 9 May 2026.
  5. ↑ "Lehigh Portland Cement Company". encyclopedia.com. Encyclopedia.com. Retrieved 9 May 2026.
  6. ↑ 6.00 6.01 6.02 6.03 6.04 6.05 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 "THE NEW COMPANY TOWN IT'S CLEAN AND SPARKLY, HAS NO CRIME, NO OLD BUILDINGS AND NO HISTORY. IN FACT, THE NEWEST KIND OF CITY IN FLORIDA HAS NO REASON FOR BEING — EXCEPT CORPORATE PROFITS. IT MAY BE THE PERFECT PLACE TO LIVE". orlandosentinel.com. Orlando Sentinel. Retrieved 9 April 2026.
  7. ↑ Nordheimer, Jon. "Disputed City: A Huge Wilderness Project in Florida". nytimes.com. New York Times. Retrieved 9 April 2026.
  8. ↑ 8.0 8.1 8.2 8.3 "Palm Coast History Brief". palmcoasthistory.org. Palm Coast Historical Society. Retrieved 9 April 2026.
  9. ↑ Holt, Tony. "Long time coming: Palm Coast gets elusive City Hall". news-journalonline.com. Daytona Beach News-Journal. Retrieved 19 May 2026.
  10. ↑ Yarbrough, Ken. "THROUGH THE YEARS IN PALM COAST 1968-2014". floridafullsail.com. Full Sail Realty & Managment. Retrieved 10 May 2026.
  11. ↑ Observer Staff (October 29, 2020). "Palm Coast marks its 50th anniversary". Pal Coast Observer. Retrieved March 11, 2021.
  12. ↑ "An Unlikely Spokesman". palmcoasthistory.org. Palm Coast Historical Society. Retrieved 9 May 2026.
  13. ↑ "History of Palm Coast Florida". betterbuyrealty.com. Better Buy Realty. Retrieved 21 April 2026.
  14. ↑ Hefferren, Aileen C. "ITT Sheraton Corporation". encyclopedia.com. Encyclopedia dot Com. Retrieved 27 April 2026.
  15. ↑ Reichenbacher, Bruce. "Sheraton Palm Coast Hotel Memories". Facebook. Meta. Retrieved 27 April 2026.
  16. ↑ Kershaw, Brittany. "City of P.ts-an-update". palmcoast.gov. City of Palm Coast, Florida. Missing or empty |url= (help); |access-date= requires |url= (help)
  17. ↑ Estes, Jacque. "ITT once iconic headquarters to be bulldozed". observerlocalnews.com. Observer Media Group. Retrieved 8 May 2026.
  18. ↑ 18.0 18.1 "SR100 Drawbridge". facebook.com. City of Palm Coast Historical Society and Museum. Retrieved 27 April 2026.
  19. ↑ "Start of Development". hammockdunes.com. Hammock Dunes Owners' Association. Retrieved 27 April 2026.
  20. ↑ "Start of Development". hammockdunes.com. Hammock Dunes Owners' Association. Retrieved 27 April 2026.
  21. ↑ 21.0 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 Tobin, Toby. "The Root Cause of Palm Coast's Infrastructure Problems Is Beneath Your Feet". flaglerlive.com. Flagler Live. Retrieved 9 April 2026.
  22. ↑ 22.0 22.1 "Palm Coast's Saltwater Canals in Better Shape Than Feared, Narrowing Debate to 'Spot Dredging' and Cost". flaglerlive.com. Flagler Live. Retrieved 23 April 2026.
  23. ↑ 23.0 23.1 Cite error: Invalid <ref> tag; no text was provided for refs named APC
  24. ↑ "New operators take over at Pine Lakes Golf Club". news-journalonline.com. Daytona Beach News-Journal. Retrieved 23 April 2026.
  25. ↑ 25.0 25.1 Bruce, Matt. "Palm Coast Sheraton Hotel and Marina". news-journalonline.com. Daytona Beach News-Journal. Retrieved 23 April 2026.
  26. ↑ 26.0 26.1 26.2 26.3 "ITT CORP. PLANS TO KEEP DOWNSIZING PALM COAST PROPERTY". orlandosentinel.com. Orlando Sentinel. Retrieved 22 April 2026.
  27. ↑ Martin, Annie. "Flagler to weigh fate of tech building". news-journalonline.com. Daytona Beach News-Journal. Retrieved 8 May 2026.
  28. ↑ 28.0 28.1 28.2 London, Aaron. "Palm Coast Holdings closing up shop". news-journalonline.com. Dayton Beach News-Journal. Retrieved 10 April 2026.
  29. ↑ "ITT Completes Spinoff of its Forest Products Unit". nytimes.com. Bloomberg News. Retrieved 27 April 2026.
  30. ↑ "Florida Water Services Closes Palm Coast Sale". investor.allete.com. Allete. Retrieved 27 April 2026.
  31. ↑ 31.0 31.1 Cite error: Invalid <ref> tag; no text was provided for refs named DRI
  32. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named DCDD
  33. ↑ "A Brief History of Palm Coast's Water and Sewer Utility". flaglerlive.com. Flager Live. Retrieved 10 April 2026.
  34. ↑ 34.0 34.1 34.2 "Jim Canfield, Galvanizing Architect of Palm Coast Incorporation and First Mayor, Dies at 96". flaglerlive.com. Flagler Live. Retrieved 9 May 2026.
  35. ↑ 35.0 35.1 35.2 Holt, Tony. "17 years after devastating wildfires, work begins on Flagler I-95 interchange". news-journalonline.com. Daytona Beach News-Journal. Retrieved 13 May 2026.
  36. ↑ Simmons, Jonathan. "EXIT 293: New I-95 interchange opens at Matanzas Woods Parkway". observerlocalnews.com. Observer Media Group. Retrieved 13 May 2026.
  37. ↑ Bruce, Matt. "New I-95 interchange opens today in Flagler County". news-journalonline.com. Daytona Beach News-Journal. Retrieved 8 May 2026.
  38. ↑ 38.0 38.1 "Palm Coast's Years in Sinai End as It Moves Into Long-Sought City Hall in Town Center". flaglerlive.com. Flagler Live. 21 Oct 2015. Retrieved 9 May 2026.
  39. ↑ "New Palm Coast City Hall opens Oct. 26". mynews13.com. Charter Communication. Retrieved 9 May 2026.

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