Kelsey Anderson, 35, threatened to shoot a woman who worked at the hospital and to shoot up the hospital, according to the FCSO.
The other victim is expected to survive.
Flagler County deputies are currently investigating the incident.
Falgout had competed with current City Manager Matt Morton for the city manager position earlier this year.
Several weeks before the generator went missing, suspect Jason Daly had asked to borrow it, according to the victim.
