- December 14, 2025
The county wants Palm Coast to maintain Matanzas Woods Parkway.
If the city of Palm Coast accepts responsibility for the Matanzas Woods Parkway right of way — meaning it takes over the road’s management and spearheads its future maintenance and expansion — the county will give to the city impact fees totaling up to $3.5 million, according to a May 7 proposal agreed to by the Flagler County Board of County Commissioners.
The plan will be presented to Palm Coast May 23, at a meeting concerning the use of impact fees and how they relate to the ongoing, $8 million Matanzas Woods interchange at Interstate 95, set for construction in 2014.
“There have been a lot of statements that it’s going have major transportation impacts,” Coffey said of the interchange, “but that’s not the case. We’re talking about an interchange that’s communitywide. … And for the traffic issue: I haven’t seen any data that has indicated (increased congestion).”
Already, the county has contributed $700,000 toward interchange design and pledged another $2.1 million for construction, according to Coffey.
About $1.4 million has been collected from within Palm Coast since 2000. If Palm Coast agrees to the county’s proposal, it would be granted that $1.4 million immediately. Then, Coffey said, whatever pledged funds are returned from the Florida Department of Transportation — possibly the full $2.1 million — would also be granted to the city, for use on top-priority road projects.
According to the commission, the interchange project was initiated after major wildfires in 1985 and 1998, destroying 202 Flagler homes. The interchange is anticipated to provide additional access to Interstate 95, improve mobility and enhance public safety, Coffey said, calling the interstate the “Superbowl of roads.”
“Commissioners,” he said, “this is one of the biggest things we’ll do as a county.”
Part of Palm Coast’s original ITT Master Plan, the interchange has been a top regional priority since 2000.
For Palm Coast, the project has been its second infrastructure priority, behind the widening of Palm Coast Parkway, which has since been approved and fully funded by the state.
Still, Coffey said, because this specific pot of impact fee funds has been identified for use in the “new east” area of Flagler, Palm Coast officials have claimed that they want use of the entire $4.2 million initially allocated.
“But we can’t just give it to them,” he said. “We would do it like a grant.”
Commissioner Milissa Holland supported that idea. “(Impact fee) money was spent in (many) different areas that benefited many residents,” she said. “So this is a very, very, very complex issue. … These funds were not just derived from Palm Coast Park or one particular development.”
In addition, the county also maintains portions of other roads which cut through Palm Coast — such as Colbert Lane, which has entrances on Colbert but contributes impact fees solely to Palm Coast.
“So to call (that particular pot of impact fees) ‘Palm Coast money’ is a misnomer, actually,” Commissioner Nate McLaughlin added. “These are funds were collected countywide.”
