- April 19, 2024
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The property owners along the northern and southern portions of Old Kings Road have reached an agreement to pay back the city over the next 30 years.
In 2009, the property owners agreed to fund the improvements themselves with an extra line item on their tax bills through a special assessment district if the city would accelerate its plans to four-lane the road from State Road 100 to Palm Coast Parkway.
The City Council unanimously approved a $5.3 million interfund loan from the city’s utility fund to the Old Kings Road Special Assessment District.
The agreement to pay the money back will take place over the next 30 years, and it has two key components.
The first is to assess the special assessment (property tax) on the properties within the district.
For the first three years, the city will collect only collect 5% interest. Over the next 27 years, the city will collect principal plus 5% interest.
Also, the impact fees collected from development of the properties will be applied to the repayment of the interfund loan first, then those fees will be earmarked for construction of the remaining phase of the Old Kings Road four-laning project.
The agreement allows for an accelerated repayment through the transportation impact fees, said Beau Falgout, senior economic development planner for the city.
In summary, this agreement ensures that the property owners within the area pay of the cost of the Old Kings Road improvements,” Falgout said.
City Manager Jim Landon said reaching the agreement is “very positive.”
“Most of us involved did not think we were going to reach an agreement,” Landon said.
