- January 25, 2026
A 234-acre development has been preliminarily approved to be annexed into Flagler Beach, despite concerns over a potential county lawsuit.
The Flagler County City Commission voted 4-1, with Commissioner John Cunningham against, to annex the Veranda Bay development at its Jan. 22 meeting. The development has been undergoing review by the city for annexation for two years and could shortly be facing a lawsuit from the Flagler County Commission.
Despite the fact Flagler County is considering filing a lawsuit against Flagler Beach over the Veranda Bay development, Flagler Beach commissioners felt it best to move forward with their vote and await for more information instead of “kicking the can down the road.”
“It’s time for us to come to a resolution,” said Commissioner Scott Spradley.
The development, located on the east side of John Anderson Parkway, will have a 150-slip marina with retail, restaurants and fuel, surrounded by 157 condominium units. There will also be 98 new residential homes built near the existing 122 residential homes.
The crux of the county’s concerns lies with the existing 122 residential homes that are along John Anderson Parkway, said assistant county attorney Sarah Spector.
Florida Statute 171.0144 requires the approval of existing residents before a property is annexed. Attorney Michael Chiumento, representing the developer, argued that all 122 homes had a deed restriction built into the closing contracts that gives the landowner the right to annex without the individual signatures.
By closing on the sales, they were also agreeing to that deed restriction, he said.
Spector said the county feels differently, and said Florida’s attorney general made his opinion clear in a different lawsuit over a condominium annexation that individual signatures are needed.
“I understand that they have a declaration of covenants that says that the developer reserves the right to annex the property at any time,” Spector said. “Unfortunately, the statute doesn't allow a declaration of covenants to step in.”
Flagler Beach City Attorney Drew Smith said if the property is annexed and goes to a lawsuit, the city will be litigating it. This is a novel issue, he said, with no prior court decision to serve as precedent.
“There is no court opinion. The attorney general’s opinions are opinions, they are not precedent,” he said. “If it were to go to litigation with the county, it would be an issue of first impression for the court.”
This is not the first time the Veranda Bay development has faced a potential lawsuit. The development was halted in late 2024 after threats of a lawsuit because of allegations that the then-899-acre development would create an enclave of land if it were annexed into Flagler Beach.
When the development returned to Flagler Beach for annexation, the developers had split it into two developments, Veranda Bay and Summertown, to avoid the enclave. Summertown was annexed on Jan. 9.
Spector said in the Flagler Beach Commission meeting that the county’s other concerns regarding Veranda Bay were the same ones it had with Summertown — primarily related to utility and infrastructure.
The Flagler County Commission will be holding a workshop followed by a special meeting on Jan. 28 to decide what legal action it wants to take regarding the Veranda Bay and Summertown developments.
Because the county meeting is ahead of the Flagler Beach Commission second reading of the Veranda Bay annexation — scheduled for Feb. 26 — it means the city will have a better grasp of the county’s intent before it makes its final decision.
If the county decides to head to a lawsuit, the Flagler Beach Commission can deny the annexation at the second reading.
No one on the Flagler Beach Commission was inclined to delay the votes any longer, as the project has been disputed and reviewed for two years. While Spradley said he wanted no part in a potential litigation, and there was more he wanted to address at the second reading, he felt better knowing any “vote on first reading is 100% reversible on second reading.”
“There's a lot that needs to happen,” he said. “But I'm not interested in delaying the process to at least getting to a position that we can get these issues worked out.”
Without the threat of the lawsuit, the City Commissioners overall seemed inclined to approve the annexation, with several making statements that it would be better for Flagler Beach to have some say in the process than not.
“It’s going to be there whether we annex or not, and I think we ought to annex it,” said Vice Chair Rick Belhumeur.
Belhumeur said when he first spoke to developer representative Ken Belshe about the projects, the developer was ready to “pull the trigger” and move to annex the project into Palm Coast.
Commissioner Eric Cooley said annexation has long been part of the city’s strategic plan as a way to protect the city from oncoming, neighboring developments.
“If we are servicing it anyways and it's not ours, that's just strictly a loss and that's not protecting the city, the citizens, our interests or anything,” Cooley said.
