- September 9, 2026
Raydient’s decision to withdraw its applications for Palm Coast’s proposed westward expansion will not affect the city’s Loop Road project, according to Palm Coast officials.
The city confirmed that Loop Road will continue as a separate transportation project despite Raydient’s withdrawal of its applications involving roughly 20,000 acres west of the city.
“The withdrawal of Raydient’s applications does not affect the Loop Road project,” the city said in response to questions from the Observer. “Loop Road is a separate transportation project.”
The roadway has received state appropriations, and the city said state leaders and transportation officials have supported the project because of its anticipated role in the future regional transportation network. The road is expected to provide a local connection as other regional transportation improvements move forward, including planned connections associated with the new County Road 2209 roadway system linking the Orlando and Jacksonville regions.
Raydient officially withdrew its westward expansion applications on Aug. 21. The withdrawal included annexation requests, a comprehensive plan amendment, Development of Regional Impact abandonments and other associated applications and agreements.
The city said Raydient did not provide a specific reason for withdrawing the applications.
Mike Hahaj, director of development for Raydient, a subsidiary of Rayonier, told the Observer that the company decided to withdraw after concluding there was not enough support for the proposal to move forward.
“There just wasn’t support there from staff and City Council seemingly to move forward,” Hahaj said. He said that, rather than continue to a council vote that appeared likely to result in denial, Raydient chose to withdraw the applications.
Hahaj said the decision also preserved Raydient’s ability to revisit the property in the future. He said city staff had indicated that a denial would have resulted in a two-year freeze on returning with another proposal for the property. Raydient did not want a denial to prevent it from pursuing opportunities as infrastructure and other development moves forward in the area.
“That’s the whole point,” Hahaj said when asked whether withdrawing instead of being denied kept the door open to working together in the future. “And work collaboratively to accomplish economic development.”
The withdrawal also canceled the City Council’s Aug. 25 special business meeting on the westward expansion. No additional council action is needed because the applications are no longer pending.
If Raydient decides to pursue the project again, new applications would have to be submitted and go through the city’s review and approval process.
Vice Mayor Theresa Pontieri said the withdrawal provides an opportunity to reconsider how development of the western lands should move forward.
“This withdrawal should not be viewed as the end of the conversation,” Pontieri said. “It should be an opportunity to get the plan right.”
Pontieri said she is not opposed to growth but wants adequate infrastructure, clearly defined financial responsibilities and protections for existing taxpayers before development of that magnitude moves forward.
“A project of this magnitude would shape Palm Coast and Flagler County for generations,” she said. “We cannot afford to get it wrong.”
Pontieri said questions remain about roads and transportation, water and wastewater capacity, public safety, schools, environmental protections and who would pay for infrastructure needed to accommodate tens of thousands of additional residents.
“Most importantly, existing Palm Coast taxpayers should not be asked to subsidize the cost of new development,” she said.
Council Member Dave Sullivan said several issues that have emerged recently raised additional questions about whether this was the right time for the council to move forward with the proposal.
Sullivan cited concerns including the recent court decision involving the city’s impact fees, school district concerns over the proposed development, the city’s $17 million Town Center land purchase, historical sites within the western expansion area, Loop Road funding concerns and what he described as an overall lack of community support.
“Raydient made the decision to withdraw at this time and live to fight another day,” Sullivan said.
Pontieri said she remains willing to work with Raydient, Flagler County, regional partners and residents on a future plan that puts more emphasis on economic development and good-paying jobs while protecting environmentally sensitive lands and ensuring infrastructure is in place.
“Palm Coast will continue to grow,” Pontieri said. “The question is not whether we grow, but how we grow.”
