User:DMarkFL

In 1968 ITT acquired timberland company Rayonier which owned over 30,000 acres (46.875 square miles) in Flagler. ITT wanted more from their investment than the proceeds of wood pulp from slash pine trees. At the time, thousands of people were migrating to Florida from the Rust Belt, so management at ITT decided to create a destination with both housing and jobs for the transplants.^[1] ITT purchased tracts from 35 other owners to total 93,000 acres (145.3 square miles), the size of Cleveland or Detroit. From the start, ITT assumed that their financial resources would solve any problems encountered. There are failed developments all over Florida, but most are because of money problems.^[1] That same year, ITT purchased homebuilder Levitt & Sons for a reported $91 million. Palm Coast, Florida, was conceived by ITT's Community Development Corporation (ITT) in the 1960s as a master-planned community to transform 90,000 acres of wetlands and pine forest into a residential golf-centered city of 600,000^[2][3] or 750,000.^[1]

ITT funded the iconic bright blue Palm Coast water tower beside Interstate 95 and later paid the lion's share of the I-95 interchange at Hammock Dunes bridge.^[3] The grand opening of the Palm Coast development occurred on October 29, 1970. 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. It presided over a golf course, streets, model homes, canals, and early home construction that became Palm Coast's “core”.^[3] Initially, retirees were targeted by salespeople, but it soon became clear that other demographic groups would be necessary for the development's success.

Five years into the development, a special assistant attorney general of Florida said, "Palm Coast has all the makings of the most frightening ecological nightmare we have ever faced in our state."^[1] In the mid-1970s, the Florida Department of Environmental Regulation was created and laws got stricter and better enforced. Initially, ITT was not an ecologically sensitive organization. They were an industrial powerhouse established in 1920. ITT was digging canals through the property like a strip mine, removing all the vegetation and dredging. Environmental groups were having a fit, warning the canals would allow saltwater intrusion.^[1] 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 ordered Palm Coast to temporarily stop selling lots in 1976.^[1] Shortly thereafter, the Palm Coast project director and several Flagler County officials were indicted by a grand jury after they allegedly conspired to circumvent environmental regulations. Suits and countersuits were fired back and forth between ITT and its contractors.^[1]

Original plans projected 100,000 residents in 1990. At the end of 1988, there were just 11,000,^[4] so ITT reduced the population goal to 225,000.^[1] 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."^[1]

ITT recruited industry for Palm Coast, but only pollution-free, environmentally conscious businesses were invited. The state-of-the-art manufacturing facilities are 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 are different than most every other city. Businesses 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."^[1] 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, the general consensus was, 'what's not to like?'. One resident, a retired school principal stated:^[1]

"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."^[1]

• International Telephone & Telegraph's (ITT) investment exceeded $1 billion^[4]
• ITT projected 100,000 residents in 1990. At the end of 1988, there were just 11,000^[4]
• The development had 508 miles of sewers, 529 miles of water lines and 533 miles of streets^[4]
• Besides the Intercoastal Waterway, there are 70 miles of freshwater and saltwater canals^[5]
• More than 130 miles of paths & trails are available for walking, jogging or bicycling to 12 parks^[5]
• Wal-Mart was the largest retailer and the first movie theatre opened in 1987^[4]
• Industrial parks host 30 manufacturing companies who employ 1,300 employees^[4]
• ITT-owned Palm Coast Construction built 50% of private residences: $40 million^[4]
• ITT also operates a cable TV system, a mortgage company, a title company and a pool builder^[4]
• SunSport Recreation, an ITT subsidiary, manages the golf and tennis facilities.^[6]
• The Palm Coast Sheraton Hotel and Marina were used to attract potential residents for 30 years
• As of 1988, only 5% of available residential lots remained unsold^[1]

ITT Community Development Corp. sold their remaining PC properties to Allete dba Palm Coast Holdings in 1996. Rayonier sold their remaining PC properties to Allete dba Palm Coast Holdings in 2000. Allete-owned Florida Water Services was sold to the city of Palm Coast in 2003. Palm Coast Holdings closed in 2017 and turned over their portfolio over to a regional broker. ^[7]

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.^[8] The city became responsible for 508 miles of sewer and 529 miles of water pipes, both at least two decades old.^[4]

When sewer lines were being installed in the early 1970s, clay pipes were utilized, which was typical at the time. Clay has a lifespan of 50 to 60 years, so the sewer lines are approaching the end of their lifespan.^[9] When heavy rains occur, rainwater seeps into the clay sewer pipes and overwhelms the Woodlands Wastewater Treatment Plant. The solution is to replace or reline the pipes, a costly endeavor. Palm Coast is required to expand the capacity of one sewage treatment plant before 2028 under a consent decree from the Florida Department of Environmental Protection.^[10] In 2025 the Palm Coast City Council implemented a 31% rate increase and floated a $292 million bond issue tripling the existing $154 million long-term debt.^[11]

The city passed three ordinances in the summer of 2025 that more than doubled impact fees, ignoring the 50% state cap by claiming "extraordinary circumstances". The Flagler Home Builders Association sued the city in October. The city insists these fees ensure that new development pays for required expansion of infrastructure rather than expecting existing residents to pay for them.^[12]

• Transportation: Up 86-115%, costing $7,540 for an average 2,000 ft² home.^[13]
• Fire Services: Up 117%, $942/residence.^[13]
• Parks & Recreation: Up 73%, $3,164/residence.^[13]
• Water & Wastewater: Up 30%, $12,221/hookup.^[14]

As of 2026, the most important economic sectors in the county are Administrative, Construction, Educational Services, Healthcare, Retail and Tourism.^[5][15]