Palm Coast CRA Approves $1.9 Million Land Sale for $31 Million Rehabilitation Hospital
The State Road 100 corridor Community Redevelopment Agency board, made up of the Palm Coast City Council, approved a purchase and sale contract with Sanders Trust LLC for 8.5 acres in the Whispering Pines area on July 21.
Land Management Administrator Virginia Smith said the city and CRA purchased 22 lots totaling the 8.5 acres since 2005 for about $3,163,628, and the parcels were recently appraised at approximately $2.8 million. Three responsive bids were received through a request for qualifications, and the evaluation team unanimously selected Sanders Trust with a purchase price of $1.9 million, reserving $250,000 for a remaining privately owned parcel.
Economic Development Manager Craig McKenna said the project represents a $31 million investment to construct a 36-bed inpatient rehabilitation hospital, expected to create roughly 100 full-time jobs at an average salary of $75,000 annually and generate an estimated $182,000 per year in property taxes. He said construction would produce an estimated $45 million in total economic impact, with a commitment to use local trade companies. Sanders Trust plans to enter a private 20-year lease with Clear Sky Health to operate the facility.
Vice Mayor Pontieri and resident Tony Amaral raised the possibility of a clawback provision or a right of first refusal in case the project does not proceed. City Manager John Zobler said Sanders Trust has already executed a lease contingent on the property purchase, and staff said the seller of the remaining parcel is being provided moving expenses for a tenant. Mayor Norris said he was uncomfortable taking a loss on the property but that the jobs were "the only saving grace." The board approved the contract unanimously, and the City Council later reconvened and approved a corresponding resolution unanimously.