“Real Estate Matters” November 8, 2025 Video Podcast – Behind Palm Coast’s Infrastructure Issues

For more than 11 years, Real Estate Matters has been the voice of real estate in Palm Coast and Flagler County. Veranda Bay, the new luxury Intracoastal Community in Flagler Beach, sponsors the show.

What is behind Palm Coast’s infrastructure issues? Too many miles of infrastructure. Not enough taxpayers and rate payers.

Be sure to check out the new Flagler County Map of Developments and Subdivisions.

Raw Show Notes

Our behind-the-scenes guide to the show’s flow, covering many topics we didn’t have time to get to on the show. This is raw and likely contains typos. Data reflects the date of the show’s recording.

Show Notes 11-8-2025

Recorded 11-6-2025

 Welcome to Real Estate Matters, for over 11 years, the voice of real estate in Flagler County and Palm Coast. Welcome to the quiet side of Florida.

I’m Toby Tobin, the publisher of GoToby.com, contributor to the Palm Coast Observer, and a Florida-licensed Realtor with The Landmark Group at Compass. Co-host Annamaria Long, with the Flagler County Homebuilders Association, is in the studio with me today.

Thanks to Our Sponsors:

• Our Lead Sponsor is Veranda Bay – A private developing community of lots and luxury homes on the Intracoastal Waterway in Flagler Beach, featuring custom homes by Olsen Homes, AR Homes by Arthur Rutenberg, ICI Homes, and Hulbert Homes. Newly opened sections feature homes by Toll Brothers and Dream Finders. To learn more, visit VerandaBay.com.
• Flagler County Home Builders Association
• Hammock Community Church – On A1A in The Hammock – Small enough to know you but large enough to serve you. North of the toll bridge with the message sign out front. It’s not just for Hammockians. Like me, many people cross the bridge.

October Final

• 235 Homes sold via the Flagler MLS at $364,990 vs 196 homes at $359,495K last October DOM = 84 this year
• $250K and lower = 12, 4 were cash, DOM 35
• $1M or higher – 9, 3 for cash, DOM 55
• Homes listed – 1,263
• Homes Pending – 312
• Median Price of homes pending – $390K
• GINNdex is down from 4.9 in July to 4.1

Analysis

Still waiting until the world settles down and the economy becomes more predictable.

News

Any updates on the FHBA impact fee lawsuit?

Interesting Article:

I came across a 1988 news article from the Orlando Sentinel. It was enlightening in many ways. First, it talked about Palm Coast’s vast vision at the time. The city was initially designed to contain 750,000 residents over 92,000 acres of mostly swamp land. This was adjusted later to only 42,000 acres. Flagler had roughly 5,000 residents when the plans were drawn.

ITT land went well beyond what is now the incorporated city limits. It included six miles of oceanfront that are not in today’s city:

Hammock Dunes, which consists of a golf course, and Island Estates.

Ocean Hammock, including Cinnamon Beach, and a golf course. The golf course is now part of the Hammock Beach Resort.

Hammock Beach Resort plus Hambor Village Marina.

Sea Colony.

Matanzas Shores, comprised of:

• Surf Club condominiums
• Matanzas Lakes
• Las Brisas condominiums
• Las Lagos
• Las Casitas

The community’s basic needs were planned before the first spade of earth was turned. The infrastructure for 230,000 residents was completed first.

533 miles of streets

529 miles of water lines

508 miles of sewer lines

Remember, Flagler County was born from the poorest land in northern Volusia County and southern St Johns County. The county currently has an estimated population of about 140,000..

From GoToby.com

Flagler County had an estimated population of only 5,000 when plans were drawn for the master planned community of Palm Coast. When the Orlando Sentinel article appeared in 1988, Palm Coast was still part of unincorporated Flagler County, which was dominated by agriculture interests.

Should officials have seen this coming? They should have; however, Palm Coast did not become incorporated until 12 years later, and during those years, county leadership lacked awareness of established rural planning principles. It was sufficient that they were learned in methods to extort endless concessions from the far remote ITT Corporation.

In the late 1960s, ITT envisioned a city of 750,000. By 1988, ITT’s downsized master plan was still pegged at a final community population of 225,000 residents. The Orlando Sentinel wrote, “… 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.”

The article states in 1988, “Beneath the streets is a network of water and sewer lines that will handle the needs of the community until at least 2050.” And “An amazing 533 miles of streets wind through what appears to be mostly unsettled forest. Under those streets are 529 miles of water lines and 508 miles of sewer lines.”

The article makes no mention of the massive stormwater management system, which includes 23 miles of saltwater and 46 miles of freshwater canals.

Commentary: Root Cause of Palm Coast’s Infrastructure Issues

Palm Coast assumed responsibility for city street maintenance upon incorporation in December 1999. The city purchased the water and sewer utility system in 2003 for $40 million when the city’s population was 37,463. So, 37,463 residents became responsible for maintaining an existing infrastructure built to support a population of 225,000.

Thankfully, the city has grown, but its population in 2025 is still only half of the 225,000 planned. Each unimproved lot represents a tax parcel that is not paying its full share of taxes and utility rates. Existing residential and commercial taxpayers and utility customers are supporting a system of streets and in-ground pipes designed to serve a much larger population.  Think of a family of three living in a 3,900 SF house with six bedrooms and four and a half baths.

Cities that developed over centuries grew their infrastructure piecemeal. Each organically developed phase has its individual life cycle, making periodic maintenance easier to schedule. Built at the same time, Palm Coast’s entire infrastructure is on the same life cycle. Components tend to fail systemwide at the same time.

Yes, infrastructure maintenance schedules have been accelerated, and water and wastewater plants are being expanded. Still, anti-growth advocates should be mindful that adequate funding for ongoing maintenance and the expansion of the city’s infrastructure depends on continued new construction to generate impact fees and additional utility ratepayers. Lacking population growth, utility budgets will continue to be strained, chasing too few taxpayers and ratepayers, as the system ages.

What if we had declared a moratorium in 1988?

Growth is like ageing. It’s inevitable and irreversible, but if you stay healthy and positive, life can be an incredible ride. If you don’t see the doctor regularly, you are more likely to become ill or die at a young age. If you stay healthy, you are more likely to enjoy grandchildren and retirement. Without growth, we would not have new shopping, recreational, and dining experiences. Growth is not the problem. The problem is that we do not always manage it well.

Flagler County Residential Development Map

Thanks to an introduction article by Flagler Live, the map has received over 6,800 views. You can find it on GoToby.com on the first page. Click on the map image to reach the live map page.

Filler News:

• WalletHub ranked four Florida cities among the best cities to retire. Orlando #1, Miami #4, Tampa #5, and Fort Lauderdale #7
• Homeownership Costs Have Jumped 26% Over 5 Years as Hidden Expenses Rise. Typical monthly expenses for homeowners surged by more than a quarter in the five years through 2024, a comprehensive new report from the U.S. Census Bureau has revealed.
• Affordable housing, the Tobin Plan – explain how opening up the mobile home ownership model to traditional homes will make homeownership more affordable.
• The typical home buyer’s FICO credit score was 735 in the third quarter of this year, according to Realtor.com; that’s roughly 20 points higher than the national average.
• Miniature golf in Town Center

Wrap up:

Video podcasts of Real Estate Matters are now available on GoToby.com. Click on Podcasts on the top navigation bar.

If you have a question or a suggestion for Real Estate Matters or GoToby.com, reach out to me.

(386) 931-7124 or email me at Toby@GoToby.com

I’m Toby Tobin and I approve this show.