Centex Takes Heat from Irate Residents Over Palm Harbor Golf Course and Resort

Community meeting addresses future of Palm Coast Resort and Pine Harbor golf course.

March 9, 2007 – New City Manager, Jim Landon, hosted a town meeting at 6 p.m. last night at the Civic Center. Residents of the Palm Harbor neighborhood have become increasingly vocal about the state of the Palm Harbor Golf Course and the status of the Palm Coast Resort construction site. Centex Destination Properties, the division of Centex developing the site, recently withdrew building permits for the remaining three buildings and cancelled plans to redevelop the golf course. The Centex decision was driven by the current real estate slump, felt most dramatically in the condominium market. Landon wanted to address their concerns and bring them up to date on actions the city is taking in response. The standing room crowd, easily exceededing 250, filled the main room and adjoining overflow room. Council members, Netts, DeStefano, and Peterson were also in attendance but did not speak.

Landon’ opening discussion separated the topic into two issues:

• The resort and construction site
• The golf course

In each case he talked about the present status, how we got here, and what we are doing about it. His opening remarks effectively answered many questions and took some of the edge off of the tense atmosphere. He then opened the floor to questions and comments which ranged from thoughtful and intelligent to the other end of the spectrum. But nearly all were conveyed with obvious feelings of anger and frustration, mostly with Centex, but also with the city.

The PUD agreement between the city and Centex allows for construction of five buildings on the old resort site – three residential condos, a multi-level parking facility and a resort condo/hotel. Under the agreement, Centex has five years (until 2010) to begin construction. The first condo building and the parking garage are nearly complete. The building permits for the remaining buildings have been withdrawn.

Landon had to reiterate several points because many residents asked the same questions, but eventually the following picture emerged:

A PUD is a zoning instrument only. It is not a contract between the developer and the city for construction. The city cannot compel Centex to build. It can only enforce codes, one of which will require Centex to properly landscape the construction site. The Code Enforcement Board has already issued an order for Centex to mitigate over-pruning of some old oak trees. The city will also address complaints of bright lighting from the parking garage through code enforcement.

Centex paid several thousand dollars in impact and administrative fees when they applied for the building permits for the remaining three buildings. The city can retain administrative and review fees but is required by law to return impact fees. Since the buildings are not being built, there will be no impact.

The current marina operation will continue providing gas and pump-out service. The future of boat slips availability remains uncertain. The boat ramp will remain closed. As part of the PUD agreement, Centex paid the city $200,000 to be used by the city to construct another public access boat ramp. The city is pursuing this plan at another site..

It is in the best interest of the city to have a functioning resort/hotel and marina on the Intracoastal site. Potentially, Centex may be allowed to downsize their hotel plans in order to entice them to begin construction of the resort hotel sooner. Other possibilities include bringing in another hotel/resort operator in a joint venture. In any solution, the PUD requirement for retail shops and a restaurant will be enforced.

As part of the agreement for the Ginn Company purchase of the Ocean Hammock Golf Course and lodge from Centex, Centex was given 1000 Hammock Beach Club memberships and 250 golf memberships (The Conservatory and Ocean Hammock). Centex is offering the memberships to Tidelands and Palm Coast Resort buyers to complete the resort package. Thus they no longer need Palm Harbor.

Landon stated that the highest priority for the city was to get the golf course back in operation. The grass on the course was killed with herbicides, the irrigation system destroyed, and the clubhouse demolished. Residents with adjoining property complained about the effect on the value of their property. Some pointed out that the dry brown weeds represent a fire hazard. Others expressed anger that they could no longer play the course.

There has been a recent groundswell of support for a public golf course. Friends of Golf, a recently formed citizens’ committee to promote a public golf course, numbers over 1000 members. Mayor Canfield and most council members also support the idea. Until Centex withdrew plans to redevelop Palm Harbor, the only option for the city was to construct a new course on land yet to be acquired – a lengthy and expensive process. Both the city and Centex recognize the opportunity at hand. Landon revealed that both parties are already discussing options. The city has engaged a golf course consultant to guide them in the evaluation of alternatives. It is clear that some agreement will be reached, whether it means transfer of ownership to the city or a joint public/private venture, to open the Palm Harbor course to public play. But realistically, this will take time. Financing, land acquisition, clubhouse design, construction, and permitting cannot happen overnight. Then the course renovation will require one complete growing season. For many residents old enough to avoid buying green bananas, this is not welcome news. But it’s the only news there is. As Landon stated “This is a long term project.”

Many questions and statements dealt with the PUD process and developers in general. Some in the audience think developer is a four letter word. On the rational side were those that want the PUD process fixed. Other comments were less constructive. Landon admitted that mistakes were made. While he agreed that the term PUD had grown out of favor, he expressed his support for the concept behind a PUD – a master planned community. If you don’t have a method to create a zoning entity for a master planned community, one offering open space, buffers, conservation areas, and amenities, you will end up with just streets and lots like the R section.

Landon encouraged residents to stay active in the process but warned that “yelling will not help.” He promised open communication with monthly updates. After two hours, Landon on his feet the whole time, some people started to trickle out but the meeting really didn’t end till nearly 9 o’clock.