Flagler Beach Commission Approves Veranda Bay Annexation on First Reading Despite Legal Concerns

The Flagler Beach City Commission approved three ordinances related to the Veranda Bay development on first reading during its January 22, 2026, meeting, with Commissioner Cunningham casting the lone dissenting vote on each measure.

All three ordinances passed by 4-1 votes. The annexation ordinance would bring approximately 210.7 acres into the city. The comprehensive plan amendment changes the future land use map for approximately 233.92 acres, and the rezoning ordinance amends the official zoning map for approximately 234 acres to allow for a master planned development.

County Raises Legal Concerns

The Flagler County Assistant County Attorney raised concerns about the annexation, stating that Florida Statute 171.044 requires signatures from every property owner within the area to be annexed.

“We’ve requested those. And I’ve not seen those,” Spector said. She noted that in October, approximately 118 individual owners were not represented by their individual signatures as required by the statute, despite the developer having a declaration of covenants allowing annexation.

Developer’s attorney  Chiumento disagreed with the county’s interpretation. “We disagree with the county’s interpretation of the statute. We’ve done our research,” he said. “We think that we’re totally compliant. We’ve had many people research it, and we’re comfortable with moving forward as is.”

The City Attorney noted that if the county decides to challenge the annexation, “we’d be litigating the issue.”

Development Details

Ken Belshe, representative of Veranda Bay Investments, presented the development plans, which include 155 condominium units, a ship store and restaurant, a 150-slip marina providing fuel and transient dockage, and 100 new home sites, along with 122 existing lots in the development for a total of 377 residential units.

Belshe emphasized that the Marina Village would provide the first true public access marina in the area with fuel on the Intracoastal Waterway and waterfront dining.

“This can enhance and further boost Flagler Beach’s identity as a charming small town coastal spot with direct intercoastal access, as well as direct beach access,” Belshe said.

The development is expected to generate approximately $2.8 million in impact fees and will dedicate a two-acre park to the city. Short-term rentals will be permitted in areas other than detached single-family homes, particularly around the Marina Village.

Other Business

The commission approved the January 8, 2026, meeting minutes unanimously by a 5-0 vote.

A special exception application allowing Jason and Samantha Clark to develop a duplex in the downtown mixed-use district was approved.

The commission approved a utility vehicle purchase for emergency services with a 4-1 vote, with Commissioner Belhumeur voting against due to the 35% cost increase from the original estimate.

Quarterly Financial Report

The Finance Director presented the first quarter financial report for the fiscal year 2026. The general fund remains strong with an estimated ending fund balance of $3.5 million. Revenues are tracking at 72% of the budget, led primarily by property and sales taxes.

The utility and impact fee fund closed with a $6.9 million fund balance. Total cash and investments increased by $5.4 million over the quarter, reaching approximately $35.3 million as of December 31.

The city completed its transition from Truist to PNC Bank, now holding $4.2 million with a higher yield of 3.24% compared to the previous 1.93%.

Public Comments

Paul McKitka of Palm Circle asked for an update on swale cleaning activities. City Manager reported that staff have been clearing trench drains in the area and will determine if additional work is needed.

Lori Ott-Lang from the Flagler Turtle Patrol reported a successful 2025 sea turtle season with 254 total nests and 137 successful nests, resulting in 12,162 hatchlings. The 2026 season begins in 83 days.

Vic Doig, representing Keep Flagler Beach Beautiful, voiced support for three proposed ordinances submitted by Darryl Reynolds regarding maintenance of public areas, littering fines and enforcement, and banning confetti cannons. He also supported establishing beach bucket stands along the beach for litter collection.

Rich Phelan reminded residents about the upcoming election with two commissioner seats up for vote and asked commissioners to explain their previous vote on the supermajority requirement for annexation referendums.

Upcoming Events

The commission discussed attending an upcoming county workshop and special meeting, with consensus to have the city attorney and a court reporter present to ensure accurate documentation.

First Friday is scheduled for February 6. The February movie at Wickline Center will be “Lincoln” on February 20 at 7 p.m. for President’s Day weekend. The community dinner is scheduled for April 18, with multiple local restaurants participating.

The Friends of Betty Steflik organization will be acknowledged by the Flagler County Commission on February 9 at 5 p.m.

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