- December 16, 2025
In the revised plan, the minimum lot size will be 8,250 square feet.
Palm Coast officials unanimously approved an agreement Tuesday with ICI that will allow for development on approximately 37 acres of land within Cypress Knoll.
Though development likely won’t occur for years to come, the city and ICI had a 60-day deadline to reach an agreement and avoid legal action.
The 43-acre reserve parcel, located west of Easthampton Boulevard and south of Eric Drive, has been a hotly discussed item during the past year.
Last month, residents of Cypress Knoll opposed city staff’s proposal that included 6,600-square-foot lot sizes and a land swap that would allow for 2.8 units per acre, or a maximum of 60 units for the entire development.
Residents stressed that the lot size was too small and would decrease their property values.
The new deal approved Tuesday night changes the zoning from Single-Family Residential 1 to Single-Family Residential 2. Now, the maximum number of lots is 58, not 60, and the minimum lot size is 8,250 square feet, up from the original 6,600.
The front building setback remains at 20 feet and the rear setback remains at 10 feet, but the side setback has been increased to 7.5 feet from 5 feet.
ICI will get approximately 37 acres of land in the swap; the city gets about six acres.
Additionally, the developer will still give $90,000 to the city for future capital projects in the area, such as a right-turn lane on Easthampton, a multiuse path and a monument sign for the neighborhood. Council members acknowledged the $90,000 won’t cover all of those projects.
One resident suggested Tuesday that the development is a “detriment to the community.”
David Haas, of ICI, said at the Feb. 7 meeting that it would be “many, many, many years before this is developed.”
Despite residents’ strong opposition, council members reiterated that the county’s original zoning called for three units per acre. The city has been able to decrease the density on the parcel to about 1.67 units per acre.
“Instead of fighting this in court and losing and risk going back to (the original county zoning), the current proposed solution is a much better deal for the residents of Cypress Knoll,” City Councilman Frank Meeker said.
Mayor Jon Netts also noted that this isn’t the last time a reserve parcel issue will be discussed.
“The reality is we have chunks of land throughout the city that ITT Corp. held in reserve,” he said.
(To read past coverage, including a story called “Policy needed for land swaps?” visit www.Palm CoastObserver.com.)
The second reading will be March 20. If the second reading is approved, the legal challenged filed by ICI will be canceled.
City Councilman Jason DeLorenzo said Tuesday that the city has greatly decreased the original requirements that were attached to the piece of land under the county’s zoning. He also said new construction is “a ways away.”
“New construction will help property values, not hurt your property values,” DeLorenzo said to the crowd, mostly filled with E-section residents. “I see this as a good thing for the city. We need to get our property values back up.”
