Cypress Knolls Golf Course Future Still in Doubt
Operators of Pine Lakes Golf Course, have backed away from a deal that would have put the Cypress Knolls Golf Course under their ownership and control.
PALM COAST, FL – July 2, 2016 – It’s not the British Open, but the winds foretelling the future of the Cypress Knolls Golf Course in Palm Coast are brisk and shifting on a daily basis. In the most recent wind shift, Firinn Golf Group (Doreen Holl and Chris McLaren), operators of Pine Lakes Golf Course, have backed away from a deal that would have put the Cypress Knolls Golf Course under their ownership and control.
Cypress Knolls closed June 17th after years of struggling to recover from the Great Recession. Holl and McLaren had entered into a verbal and signed agreement with Cypress Knolls owner, Golf Group of Palm Coast LLC (GGPC), to bring the deteriorating course back to playable condition, restoring its integrity. Upon fulfilling that and other requirements, ownership of the course would be transferred to Holl and McLaren.
Holl and McLaren entered the agreement with GGPC following assurances that there were no third party contractual impediments to a clean transfer of title. However, on June 24th, GGPC notified Holl and McLaren of the existence of a signed document with a Mr. Doug Brown that represented a potential contractual obligation to sell Cypress Knolls Golf Club to Brown.
June 28th, GGPC learned from Brown that he intended to move forward with the contract which would result in his purchase of Cypress Knoll Golf Course, leaving Holl and McLaren no choice but to withdraw from their plan.
McLaren estimates the ongoing annual operational expenses of the Cypress Knolls course would be close to $1,000,000. With a dearth of members plus the refurbishment challenge, any Cypress Knolls operator will face a daunting future. Holl and McLaren are experience golf course operators, having run both Pine Lakes and Regent Park Golf Club in Fort Mill, S.C. Brown’s golf course operating experience is unknown.
Cypress Knolls was opened in 1990, and joined Pine Lakes, Matanzas Woods and Palm Harbor as one of Palm Coast’s four original golf courses. Matanzas was closed for renovation in 2007 and remains closed. Palm Harbor Golf Course was refurbished by the City of Palm Coast and reopened in 2009 as a municipal course.
Google Earth view of Cypress Knolls Golf Course
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Second Palm Beach a.k.a Palm Coast
August 1976
Mr. and Mrs. George E. Chuddy
28 Lake Drive
Darien,Connecticut 006820
Dear Mr. and Mrs. Chuddy:
Because you have made a commitment in Palm Coast by establishing your home here, we believe you should be aware of an agreement that we recently reached with the Federal Trade Commission.
ITT Community Development Corporation ( ICDC) has signed a Consent Agreement with the Federal Trade Commission (FTC) concerning the future development of Palm Coast. Signing the agreement does not constitute an admission that any law has been violated, as the agreement itself states. We feel the agreement is important in order to attain our primary goal — the development of Palm Coast as a balanced, well-rounded community.
An important part of the Consent Agreement calls for the execution of plans, within six years, which we believe, in the long run, will be good for Palm Coast. In brief, among other things , we have agreed to the following:
1. A shopping center with at least 400,000 square feet of floor space will be provided.We are already in contact with prospective developers of individual stores, including a supermarket.
2. With appropriate governmental agreement, a traffic interchange on Interstate Highway 95 will be constructed to serve Palm Coast according to plans we submitted to the Florida Department of Transportation in August 1972. ICDC will pay for the interchange as originally designed.
3. An office and research park area will be developed with appropriate roads and utilities to serve it and landscaping to make it an attractive part of Palm Coast. Planning for this already is under way.
4. A multi-purpose office building, with at least 5,000 square feet of floor space, will be constructed for tenants in the office and research park. This structure, also, is under planning.
5. We will move the headquarters of ICDC to Palm Coast. We plan to be substantial employer contributing much to the economy of Palm Coast and Flagler County.
The agreement also provides for us to restrict our development efforts to 42,000 acres for a period of 15 years ( with possible extension for another five years). This will allow appropriate construction in areas set aside for commercial establishments, light industry, recreation, preservation and conservation and other residential uses. Moreover, during this 15- or 20-year period, sales will be limited to 48,000 registered lots of which over 36,000 already have been sold.
The aforementioned are some of the most important points contained in the Consent Agreement as it affect you and the balanced development of Palm Coast. You will also be interested in knowing of additional projects that we believe further enhance the community.. Here are some examples:
We have donated two acres of land, adjoining the future Emergency Services Building site, to the Palm Coast branch of the YMCA to be used as the location of a Community Activities Center. We will bear the cost of constructing this facility for all community residents and for sharing in operational expenses during its first three years — a gift totaling more than $400,000.
We have provided as a gift a site of 57 acres to the Flagler County School Board for a junior-senior high school. The first class of proud seniors was graduated from Flagler-Palm Coast High School last spring.
We have designated a number of sites for recreation parks, preservation and conservation, and other public areas. One site, in Section 1-A, now is being developed and a paved bicycle path has been constructed.
Another bike path, starting near the Yacht Club, is in use. We are working with the Palm Coast Civic Association so that Palm Coast residents can form a legal entity to which we can donate oa one-acre site and an Emergency Services Building to house fire and security forces, an ambulance, and facilities for community activities. A preliminary blueprint fo the structure has been approved by a committeee from the Community.
As you know, we donated a $36,000 pumper fire truck to the Palm Coast Volunteer Fire Department , which will be stationed in the Emergency Services Building..
Palm Coast’s first church building, St. Mark by the Sea Lutheran Church, ws dedicated on the morning of July 4. Catholic and Baptist church organizations have purchased sites for their proposed churches. And Temple Beth Shalom is considering building a Synagogue. We at ICDC are very pleased, as we know citizens of Palm Coast are, to witness this growth and progress in the vitally important religioius life of our community.
Palm Coast’s first financial institution, a branch of the Security First Federal Savings and Loan Association, recently opened for business. We believe others will follow with the growth of the community.
These and many other facilitites will be needed to serve Palm Coast’s growing population. And it is growing. During the last nine months, construction of over 200 homes began. We now have over 1,000 people living and enjoying the good life at Palm Coast.
In closing, let me assure you that the ITT Community Development Corporation believes very strongly in the furture of Palm Coast and that we are determined that it will grow and progress in a balanced and healthy manner.
Sincerely yours,
Alan Smolen
President.
Second Palm Beach and Amenities / Features
For the newer Palm Coasters showing the encumberances pursuant F.T.C. Docket C-2854 on the Gargantuan 93,000 acres of palm coast community lands comprising ‘ The Palm Coast Project ‘ :
United States of America
Federal Trade Commission
Washington, D.C.
Date: September 20, 1991/October 16, 1991
FROM Joseph J. Koman, Jr. Attorney
Ronald D. Levis, Investigator
Division of Enforcement/BCP
Subject: Show Cause Order
International Telephone and Telegraph, ITT, ITT Community Development Corporation ICDC and Palm Coast, Inc., Docket No C-2854
To : Commission
Recommendation:
That the Commission issue a show cause order as to why the existing fifteen year moratorium on sale of registered residential lots at Palm Coast should not be extended for an additional five years. Note: The extension must be ordered not late than the expiration of the fifteen year period, which expires on December 27, 1991
Nature of Case
International Telephone and Telegraph Corporation ( ITT) , its land sales subsidiary, ITT Community Development Corporation ( ICDC), and ICDC subsidiary Palm Coast, Inc., 1 . were charges with misrepresenting ITT’s obligations and responsibilities of ICDC and Palm Coast, unfairly and deceptively selling land by misrepresenting the investment values of Palm Coast lots, misrepresenting the types of amenities and facilities available at Palm Coast and failing to provide cancellation and refund rights and failing to disclose other pertinent information.
__________________
1 ITT is one of the major industrial corporations in the United States. The 1991 Standard & Poors Register lists ITT’s revenue as $ 20.05 billion with 119,000 employees. ICDC is a land sales and development firm engaged in selling and developing Palm Coast, a land development in northeast Florida, and also some surrounding areas. Palm Coast is located in Flagler County, between Daytona Beach and St. Augustine, Florida. Attached is a map which shows the various communities that comprise Palm Coast. On the reverse side is an aerial photograph of Palm Coast that clearly shows where growth and development have occurred during the past fifteen years.
Background
A consent order was issued in this matter on December 10, 1976. The initial compliance report of February 28, 1977, a spot check investigation report of December 28, 1978, a compliance investigation report of April 1, 1981, and the final compliance investigation report of October 6, 1983, were accepted by the Commission. The Atlanta Regional Office (ARO) was responsible for this matter until December 1989, whereupon the Enforcement Division took responsibility for future compliance activity.
Scope of the order
The Major purpose of the order is to prevent misrepresentations and to require disclosures concerning: (1) the extent of Palm Coast’s development, (2) ITT’s financial responsibilities for the development, (3) the investment potential of Palm Coast lots, (4) total lot costs, (5) the current extent of lot use and the timetable for development, (6) the proximity of Palm Coast to major roads, cities and necessary facilities and amenities, (7) number and size of facilities, amenities, and residents, and (8) notices of cancellation.
a second purpose of the order was to make Palm Coast a self-sufficient community with the necessary amenities for year-round living. To assist in this goal, order paragraphs required certain improvements to be developed and constructed in Palm Coast. These included: (1) shopping center, (2) office building , (3) commercial, manufacturing, and research park, (4) corporate headquarters, (5) I-95 interchange, (6) St. Joe Road improvement. All of these improvements were developed and constructed within the time limitations imposed by the order.
The order also requires written and oral disclosures in Palm Coast’s promotional material, contracts, property reports, easements and covenants and sales presentations. Furthermore, respondents are required to conduct in-house surveillance of their sales personnel as to compliance with the disclosure and representation requirements of the order.
By terms of the order, respondents are also limited in the size of their development for at least 15 years to 42,000 acres and a maximum of 48,000 registered residential lots. 2. The 15 year restriction on expansion was explained to the Commission in
_________________
2…for a period of fifteen (15) years after the service upon respondents of this order,….respondents shall limit and restrict the development presently known as Palm Coast and consisting of approximately 93,0000 acres, to a maximum of approximately 48,000 registered lots in a maximum of 42,000 acres,….and, accordingly, respondents shall neither register any lots nor sell any registered lots in the balance of such approximately 93,000 acres.
earlier ARO staff pre-order memoranda as probably the most significant order accomplishment. By reducing the acreage 55%, the Palm Coast community takes on a manageable size, and ICDC must concentrate its development efforts on a smaller parcel of land. With a limited number of lots to sell, the provision alters the business of ICDC from a mere subdivider to a community builder. This provision, as well as the one providing for the building of a basic infrastructure, were designed to stimulate the development and population growth of Palm Coast and to produce a fully-planned and self-contained thriving community. The order also required respondents to submit a report 13 years after date of service. If housing units built or under construction do not equal 50% of the deeded lots, the Commission may extend the limit on the size of development for an additional five years.
December 1, 1989 Compliance Report
As required by the order, ICDC filed its December 1, 1989, compliance report in a timely fashion. The order provided that the written report be filed 720 days prior to the expiration of the fifteen (15) year moratorium period. —–>The filed report described the extent of the development at Palm Coast, including the number of dwelling units, recreational facilities and public and commercial services (Compliance Report Materials File I, December 1, 1989, Report).<----- The December 1, 1989, report disclosed that at that time there were 7,552 dwelling units (6,784 single family and 768 multifamily) at Palm Coast and a population of approximately 15,000 ( 60% of Flagler County's total population). Richard Braunstein, Assistant General Counsel for ICDC, orally reported that at the time of the December 1, 1989 report, there were approximately 34,513 deeded lots. Thus, the report indicated that the number of dwelling units located or under construction at Palm Coast after the expiration of the fifteen year period was not expected to be equal to at least 50% of the number of lots at Palm Coast then authorized for residential use as to which deeds are at that time held by purchasers or their assigns. The order provision provides that if the 50% figure is not achieved, the Commission's Rules to extend the fifteen year period for an additional period not to exceed five years. Any such extension must be ordered not later than the expiration of the fifteen year period ( December 27, 1991) August 27, 1991 Compliance Report On August 7, 1991, staff requested ICDC to provide updated data on both the number of deeded registered lots and dwelling units at Palm Coast. ICDC's August 127, 1991, compliance report shows the following analysis of ICDC's deeded registered lots and dwelling units as of November 30, 1989, and July 31, 1991: Registered lots deeded November 30, 1989 33,700 Number of dwelling units on registered lots single family 6,600 multi-family 800 Total: 7,400 Registered lots deeded July 31, 1991 35,800 Number of dwelling units on registered lots single family 7,700 multi-family 800 Total 8,500 The current data reveals that as of July 31, 1991, less than 24% (23.7%) of the deeded lots have dwelling units thereon. This percentage is only slightly higher than the 22% comparison (of dwelling units to registered lots) which the November 30, 1989 data indicates. It falls far short of the 50% mandate. According to the report, the Palm Coast population now numbers about 18,000. Staff's August 1991 on-site inspection of Palm Coast After the December 1, 1989 compliance report was submitted by ICDC, the Enforcement staff received a number of letters from Flagler County Officials, various lot owners, and civic associations at Palm Coast and a number of individual lot purchasers regarding possible Commission action about the extension of the moratorium for an additional five years. Most wanted to make some personal input into the decision-making process and express their likes and/or dislikes of ICDC and the Palm Coast community. Staff explained there would be a comment period where interested parties could submit written statements and views to the Commission; however, a number of the parties requested Commission personnel be made available for oral comments. As a result, the staff made itself available to meet with and discuss the applicable order provisions and community development during the week of August 19 through 22, 1991. All of the parties spoken to were in favor of extending the moratorium for another five years. It will undoubtedly take more than the additional five year period to achieve the order's 50% dwelling units objective; 3 . however, the additional time period will provide all interested parties the opportunity to insure orderly growth and development of Palm Coast will continue. ________________ 3 At a rate of approximately a 2 % increase in dwelling units to registered lots over a 1 year , 8 month period of time ( i.e., from November 30, 1989 to July 31, 1991, the percentage went from about 22% to 24%) it would take another 21 1/3 years to reach the 50% build out. However, since the time frame November 30, 1989 to July 31, 1991, reflects a period of housing recession, it would be unwise to conclude that it will take that length of time to reach the 50% build out. The Flagler County Officials are of the opinion that an extension of the moratorium would be in the best interest of the county and its residents. According to Mr. Noah McKinnon, the attorney for the county commissioners, if ICDC wanted to develop and sell new lots in the county, their plans would have to be interfaced with the Comprehensive Land Use Plan (CLUP) adopted by the State and ICDC in 1974, and amended in 1977, when a more limited 42,000 acre subdivision was adopted. Using CLUP, Flagler County plans five (5) years in advance for lands that will be needed over the next five (5) years for schools, parks, administrative buildings, etc. Such planning helps to keep county taxes lower and encourages adopting strong regulatory or zoning rules to scrutinize incoming industry and help protect the environment. Therefore, if ICDC were suddenly to announce a plan to plat, register and marker new residential lots, the county would view the proposals under a magnifying glass ( one of the county commissioner, Al Jones, specifically used the term "under a magnifying glass') to ensure that corporate plans would not upset the delicate growth and development balance in the county. Furthermore, since the state now has requirements ( Concurrence Acts) for all utility, etc., infrastructure to be in place prior to selling homesite property, the infrastructure would not only be prohibitively expensive for ICDC, but it would mean the county would face additional concerns involving water, drainage, solid waste, etc. By extending the moratorium, Flagler county authorities will be assured that ICDC will continue to develop existing Palm Coast acreage in the county for at least 5 more years, and be intimately involved in the same issues that the county must face, i.e., water and utility management and use of public lands. In essence, the moratorium provides an extension of the continuity of the cooperative business relationship currently existing between the county and ICDC. Perhaps Mr. Guy Sapp, the county's deputy tax appraiser summed up the situation best: If it "aint't broke, don't fix it." The staff spoke with ICDC officials on August 27 and 28, 1991. Mr. Braunstein advised that ICDC will not oppose the Commission in extending the moratorium another five years. ICDC still has an inventory of unsold registered lots at Palm Coast and in recent years it has decided to upscale the area east of the Intercoastal Waterway. ICDC is centering most of its development activities and financial resources east, from the existing core area at Palm Coast towards the Atlantic Ocean. It will take anywhere from ten to twenty years to develop this area. ICDC is not interested at this time in developing lands outside those contained in the CLUP Agreement. ICDC is pouring millions of dollars into making this area a 'Second Palm Beach" in which only the wealthy can afford to live. For example, it has spent more than $11 million on a Mediterranean-styled Equity Country Club, to be used exclusively by residents in the communities. *************** *************** Despite the assurances of ICDC officials that extending the moratorium for five years will not affect their development plans one way or the other, the commission's failure to extend the moratorium might needlessly open a "Pandora's Box", which once opened will be difficult to control. the essential element of the order was limiting the development of Palm Coast to 42,000 acres and 48,000 registered lots. These 48,000 registered lots were in a 17,000 acre area, the very area in which the Commission wanted growth to bolster respondents' claims that Palm Coast was a well planned and developed community. By terms of the order, a visible fulfillment to these claims would have been dwelling units on a 50% of those registered lots which were now deeded. This goal had not been reached. However, housing construction and orderly growth are continuing and with 5 years more of construction, ICDC will at least have come much closer to that 50% lever. Right now ICED has two options for spending its resources in Palm Coast" the development of the original 17,000 acres and/or the development of its properties east of the Intracoastal Highway. As previously noted, staff is concerned that by developing the latter area, ICDC might have violated the order's acreage and lot prohibitions. However, regardless of the outcome of this issue, there is no doubt that ICDC is presently concentrating its resources on the development of the up-scale properties east of the Intracoastal and therefor, allotting a disproportionate share of such resources in the 17,000 acres the Commission wanted fully developed. Allowing respondents the option to begin the development or sale of undeveloped or raw land in the substantial remaining acres that they own ( 51,000 acres ) gives ICDC an immediate third option on which to spend its resources. This option is the very one the commission wanted to foreclose until the original property was developed. While ICDC advises that it has no interest in selling this undeveloped land right now, they might feel differently 1, 2, 0r 3 years down the pike. In the past and even presently, respondents have demonstrated an ability to obtain the necessary permits and approval of the projects by accommodating the concerns of state and local agencies. As the largest taxpayers in Flagler County, that political considerations would not be the major factor in providing free rein to develop these areas. There is only one available option, i.e., the Commission's order, that will first and foremost assure that respondents "maintain the status quo" of their current development activities and obligations for a finite period and hopefully, allow the 17,000 acres ( primarily the western parts ) to continue to grow and develop at a pace more closely in keeping with the pace envisioned when the order was issued. Furthermore, by extending the moratorium for another five years staff can continue with its compliance investigation to insure that respondents' obligations are fulfilled. If the facts warrant, it would serve as the legal basis for any possible civil penalty, for developing outside the proscribed lots ( only 24% of deeded residential lots have dwelling units constructed thereon since service of the order); and staff's inquiry does not disclose the existence of any valid reason as to why the moratorium should not be extended for an additional five (5) years. An extension will encourage continued construction of swelling units within the sections comprising Palm Coast. Moreover, respondents do not oppose the extension of the moratorium for an additional five years. Therefore, it is respectfully recommended that the Commission, pursuant to Section 3.72 of the Commission's Rules of Practice issue the accompanying order to show cause as to why the existing fifteen year limitation on the sale of registered lots ( maximum of approximately 48,000 registered lots in a maximum of 42,000 acres) should not be extended for an additional five year period. while the commission is not required to publish a Federal Register Notice under this section of the Rules, by putting this proposed order in the Federal Register a broader base of possible commentors will be put on notice of the commission's proposal. This procedure should provide the Commission with more information on which to make a final determination as to whether to issue the Order. A draft Federal Register Notice is attached to the file. Attachments: 1. Aerial Map of Palm Coast 2. Order to Show Cause 3. Draft Federal Register notice APPROVED: Justin Dingfelder Assistant Director Division of Enforcement/BCP William S. Sanger Associate director for Enforcement/BCP
Federal Trade Comm. F.T.C.-C2854 and Hammock Dunes
Federal Trade Commissions ‘Consent Agreement F.T.C. C-2854 / Federally ORDERED ‘ 15 Year Compliance Report ‘ with Exhbits / Community of Hammock Dunes:
The Federal Trade Commissions ‘ ‘Consent Agreement’ came about because it was ascertained that I / we / other early purchasers had been wronged. The amount of CONSUMER REDRESS Federally Ordered was about $ 30,000.000.00 in 1975 U.S. Dollars – the largest amount ever awarded at that time.
Some items Federally ORDERED were ‘…significant areas of conservation…’ and ‘ significant areas of preservation…’ and ‘…significant areas of Recreation…’
Some info. about the types of Amenities and Facilities :
United States of America
Federal Trade Commission
Washington, D.C.
Date: September 20, 1991/October 16, 1991
FROM Joseph J. Koman, Jr. Attorney
Ronald D. Levis, Investigator
Division of Enforcement/BCP
Subject: Show Cause Order
International Telephone and Telegraph, ITT, ITT Community Development Corporation ICDC and Palm Coast, Inc., Docket No C-2854
To : Commission
Recommendation:
That the Commission issue a show cause order as to why the existing fifteen year moratorium on sale of registered residential lots at Palm Coast should not be extended for an additional five years. Note: The extension must be ordered not late than the expiration of the fifteen year period, which expires on December 27, 1991
Nature of Case
International Telephone and Telegraph Corporation ( ITT) , its land sales subsidiary, ITT Community Development Corporation ( ICDC), and ICDC subsidiary Palm Coast, Inc., 1 . were charges with misrepresenting ITT’s obligations and responsibilities of ICDC and Palm Coast, unfairly and deceptively selling land by misrepresenting the investment values of Palm Coast lots, misrepresenting the types of amenities and facilities available at Palm Coast and failing to provide cancellation and refund rights and failing to disclose other pertinent information.
__________________
1 ITT is one of the major industrial corporations in the United States. The 1991 Standard & Poors Register lists ITT’s revenue as $ 20.05 billion with 119,000 employees. ICDC is a land sales and development firm engaged in selling and developing Palm Coast, a land development in northeast Florida, and also some surrounding areas. Palm Coast is located in Flagler County, between Daytona Beach and St. Augustine, Florida. Attached is a map which shows the various communities that comprise Palm Coast. On the reverse side is an aerial photograph of Palm Coast that clearly shows where growth and development have occurred during the past fifteen years.
Background
A consent order was issued in this matter on December 10, 1976. The initial compliance report of February 28, 1977, a spot check investigation report of December 28, 1978, a compliance investigation report of April 1, 1981, and the final compliance investigation report of October 6, 1983, were accepted by the Commission. The Atlanta Regional Office (ARO) was responsible for this matter until December 1989, whereupon the Enforcement Division took responsibility for future compliance activity.
Scope of the order
The Major purpose of the order is to prevent misrepresentations and to require disclosures concerning: (1) the extent of Palm Coast’s development, (2) ITT’s financial responsibilities for the development, (3) the investment potential of Palm Coast lots, (4) total lot costs, (5) the current extent of lot use and the timetable for development, (6) the proximity of Palm Coast to major roads, cities and necessary facilities and amenities, (7) number and size of facilities, amenities, and residents, and (8) notices of cancellation.
a second purpose of the order was to make Palm Coast a self-sufficient community with the necessary amenities for year-round living. To assist in this goal, order paragraphs required certain improvements to be developed and constructed in Palm Coast. These included: (1) shopping center, (2) office building , (3) commercial, manufacturing, and research park, (4) corporate headquarters, (5) I-95 interchange, (6) St. Joe Road improvement. All of these improvements were developed and constructed within the time limitations imposed by the order.
The order also requires written and oral disclosures in Palm Coast’s promotional material, contracts, property reports, easements and covenants and sales presentations. Furthermore, respondents are required to conduct in-house surveillance of their sales personnel as to compliance with the disclosure and representation requirements of the order.
By terms of the order, respondents are also limited in the size of their development for at least 15 years to 42,000 acres and a maximum of 48,000 registered residential lots. 2. The 15 year restriction on expansion was explained to the Commission in
_________________
2…for a period of fifteen (15) years after the service upon respondents of this order,….respondents shall limit and restrict the development presently known as Palm Coast and consisting of approximately 93,0000 acres, to a maximum of approximately 48,000 registered lots in a maximum of 42,000 acres,….and, accordingly, respondents shall neither register any lots nor sell any registered lots in the balance of such approximately 93,000 acres.
earlier ARO staff pre-order memoranda as probably the most significant order accomplishment. By reducing the acreage 55%, the Palm Coast community takes on a manageable size, and ICDC must concentrate its development efforts on a smaller parcel of land. With a limited number of lots to sell, the provision alters the business of ICDC from a mere subdivider to a community builder. This provision, as well as the one providing for the building of a basic infrastructure, were designed to stimulate the development and population growth of Palm Coast and to produce a fully-planned and self-contained thriving community. The order also required respondents to submit a report 13 years after date of service. If housing units built or under construction do not equal 50% of the deeded lots, the Commission may extend the limit on the size of development for an additional five years.
December 1, 1989 Compliance Report
As required by the order, ICDC filed its December 1, 1989, compliance report in a timely fashion. The order provided that the written report be filed 720 days prior to the expiration of the fifteen (15) year moratorium period. The filed report described the extent of the development at Palm Coast, including the number of dwelling units, recreational facilities and public and commercial services (Compliance Report Materials File I, December 1, 1989, Report).
The December 1, 1989, report disclosed that at that time there were 7,552 dwelling units (6,784 single family and 768 multifamily) at Palm Coast and a population of approximately 15,000 ( 60% of Flagler County’s total population). Richard Braunstein, Assistant General Counsel for ICDC, orally reported that at the time of the December 1, 1989 report, there were approximately 34,513 deeded lots. Thus, the report indicated that the number of dwelling units located or under construction at Palm Coast after the expiration of the fifteen year period was not expected to be equal to at least 50% of the number of lots at Palm Coast then authorized for residential use as to which deeds are at that time held by purchasers or their assigns. The order provision provides that if the 50% figure is not achieved, the Commission’s Rules to extend the fifteen year period for an additional period not to exceed five years. Any such extension must be ordered not later than the expiration of the fifteen year period ( December 27, 1991)
August 27, 1991 Compliance Report
On August 7, 1991, staff requested ICDC to provide updated data on both the number of deeded registered lots and dwelling units at Palm Coast. ICDC’s August 127, 1991, compliance report shows the following analysis of ICDC’s deeded registered lots and dwelling units as of November 30, 1989, and July 31, 1991:
Registered lots deeded November 30, 1989 33,700
Number of dwelling units on registered lots
single family 6,600
multi-family 800
Total: 7,400
Registered lots deeded July 31, 1991 35,800
Number of dwelling units on registered lots
single family 7,700
multi-family 800
Total 8,500
The current data reveals that as of July 31, 1991, less than 24% (23.7%) of the deeded lots have dwelling units thereon. This percentage is only slightly higher than the 22% comparison (of dwelling units to registered lots) which the November 30, 1989 data indicates. It falls far short of the 50% mandate. According to the report, the Palm Coast population now numbers about 18,000.
Staff’s August 1991 on-site inspection of Palm Coast
After the December 1, 1989 compliance report was submitted by ICDC, the Enforcement staff received a number of letters from Flagler County Officials, various lot owners, and civic associations at Palm Coast and a number of individual lot purchasers regarding possible Commission action about the extension of the moratorium for an additional five years. Most wanted to make some personal input into the decision-making process and express their likes and/or dislikes of ICDC and the Palm Coast community. Staff explained there would be a comment period where interested parties could submit written statements and views to the Commission; however, a number of the parties requested Commission personnel be made available for oral comments. As a result, the staff made itself available to meet with and discuss the applicable order provisions and community development during the week of August 19 through 22, 1991. All of the parties spoken to were in favor of extending the moratorium for another five years. It will undoubtedly take more than the additional five year period to achieve the order’s 50% dwelling units objective; 3 . however, the additional time period will provide all interested parties the opportunity to insure orderly growth and development of Palm Coast will continue.
________________
3 At a rate of approximately a 2 % increase in dwelling units to registered lots over a 1 year , 8 month period of time ( i.e., from November 30, 1989 to July 31, 1991, the percentage went from about 22% to 24%) it would take another 21 1/3 years to reach the 50% build out. However, since the time frame November 30, 1989 to July 31, 1991, reflects a period of housing recession, it would be unwise to conclude that it will take that length of time to reach the 50% build out.
The Flagler County Officials are of the opinion that an extension of the moratorium would be in the best interest of the county and its residents. According to Mr. Noah McKinnon, the attorney for the county commissioners, if ICDC wanted to develop and sell new lots in the county, their plans would have to be interfaced with the Comprehensive Land Use Plan (CLUP) adopted by the State and ICDC in 1974, and amended in 1977, when a more limited 42,000 acre subdivision was adopted. Using CLUP, Flagler County plans five (5) years in advance for lands that will be needed over the next five (5) years for schools, parks, administrative buildings, etc. Such planning helps to keep county taxes lower and encourages adopting strong regulatory or zoning rules to scrutinize incoming industry and help protect the environment. Therefore, if ICDC were suddenly to announce a plan to plat, register and marker new residential lots, the county would view the proposals under a magnifying glass ( one of the county commissioner, Al Jones, specifically used the term “under a magnifying glass’) to ensure that corporate plans would not upset the delicate growth and development balance in the county.
Furthermore, since the state now has requirements ( Concurrence Acts) for all utility, etc., infrastructure to be in place prior to selling homesite property, the infrastructure would not only be prohibitively expensive for ICDC, but it would mean the county would face additional concerns involving water, drainage, solid waste, etc.
By extending the moratorium, Flagler county authorities will be assured that ICDC will continue to develop existing Palm Coast acreage in the county for at least 5 more years, and be intimately involved in the same issues that the county must face, i.e., water and utility management and use of public lands. In essence, the moratorium provides an extension of the continuity of the cooperative business relationship currently existing between the county and ICDC. Perhaps Mr. Guy Sapp, the county’s deputy tax appraiser summed up the situation best: If it “aint’t broke, don’t fix it.”
The staff spoke with ICDC officials on August 27 and 28, 1991. Mr. Braunstein advised that ICDC will not oppose the Commission in extending the moratorium another five years. ICDC still has an inventory of unsold registered lots at Palm Coast and in recent years it has decided to upscale the area east of the Intercoastal Waterway. ICDC is centering most of its development activities and financial resources east, from the existing core area at Palm Coast towards the Atlantic Ocean. It will take anywhere from ten to twenty years to develop this area. ICDC is not interested at this time in developing lands outside those contained in the CLUP Agreement. ICDC is pouring millions of dollars into making this area a ‘Second Palm Beach” in which only the wealthy can afford to live. For example, it has spent more than $11 million on a Mediterranean-styled Equity Country Club, to be used exclusively by residents in the communities.
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Despite the assurances of ICDC officials that extending the moratorium for five years will not affect their development plans one way or the other, the commission’s failure to extend the moratorium might needlessly open a “Pandora’s Box”, which once opened will be difficult to control. the essential element of the order was limiting the development of Palm Coast to 42,000 acres and 48,000 registered lots. These 48,000 registered lots were in a 17,000 acre area, the very area in which the Commission wanted growth to bolster respondents’ claims that Palm Coast was a well planned and developed community. By terms of the order, a visible fulfillment to these claims would have been dwelling units on a 50% of those registered lots which were now deeded. This goal had not been reached. However, housing construction and orderly growth are continuing and with 5 years more of construction, ICDC will at least have come much closer to that 50% lever.
Right now ICED has two options for spending its resources in Palm Coast” the development of the original 17,000 acres and/or the development of its properties east of the Intracoastal Highway. As previously noted, staff is concerned that by developing the latter area, ICDC might have violated the order’s acreage and lot prohibitions. However, regardless of the outcome of this issue, there is no doubt that ICDC is presently concentrating its resources on the development of the up-scale properties east of the Intracoastal and therefor, allotting a disproportionate share of such resources in the 17,000 acres the Commission wanted fully developed. Allowing respondents the option to begin the development or sale of undeveloped or raw land in the substantial remaining acres that they own ( 51,000 acres ) gives ICDC an immediate third option on which to spend its resources. This option is the very one the commission wanted to foreclose until the original property was developed.
While ICDC advises that it has no interest in selling this undeveloped land right now, they might feel differently 1, 2, 0r 3 years down the pike. In the past and even presently, respondents have demonstrated an ability to obtain the necessary permits and approval of the projects by accommodating the concerns of state and local agencies. As the largest taxpayers in Flagler County, that political considerations would not be the major factor in providing free rein to develop these areas. There is only one available option, i.e., the Commission’s order, that will first and foremost assure that respondents “maintain the status quo” of their current development activities and obligations for a finite period and hopefully, allow the 17,000 acres ( primarily the western parts ) to continue to grow and develop at a pace more closely in keeping with the pace envisioned when the order was issued.
Furthermore, by extending the moratorium for another five years staff can continue with its compliance investigation to insure that respondents’ obligations are fulfilled. If the facts warrant, it would serve as the legal basis for any possible civil penalty, for developing outside the proscribed lots ( only 24% of deeded residential lots have dwelling units constructed thereon since service of the order); and staff’s inquiry does not disclose the existence of any valid reason as to why the moratorium should not be extended for an additional five (5) years. An extension will encourage continued construction of swelling units within the sections comprising Palm Coast. Moreover, respondents do not oppose the extension of the moratorium for an additional five years.
Therefore, it is respectfully recommended that the Commission, pursuant to Section 3.72 of the Commission’s Rules of Practice issue the accompanying order to show cause as to why the existing fifteen year limitation on the sale of registered lots ( maximum of approximately 48,000 registered lots in a maximum of 42,000 acres) should not be extended for an additional five year period. while the commission is not required to publish a Federal Register Notice under this section of the Rules, by putting this proposed order in the Federal Register a broader base of possible commentors will be put on notice of the commission’s proposal. This procedure should provide the Commission with more information on which to make a final determination as to whether to issue the Order. A draft Federal Register Notice is attached to the file.
Attachments:
1. Aerial Map of Palm Coast
2. Order to Show Cause
3. Draft Federal Register notice
APPROVED:
Justin Dingfelder
Assistant Director
Division of Enforcement/BCP
William S. Sanger
Associate director for Enforcement/BCP
Cypress Knolls Golf follow up
You were so quick to announce the closing of the course a few months back, wehere is the follow up on the efforts put forth to reopen the course and the positive effect it has on the surrounding community.
As difficult a challenge as it is it deserves our support, and, at least the owner is to sucking down tax payer dollars like Palm Harbor in his efforts.
Regardless of your opinion on the state of golf and its down turn, show some local support .