Palm coast strategic employment zone speculative industrial development

The City of Palm Coast, Florida is seeking qualified development firms to submit proposals for the strategic development of Tract 17, a 103-acre city-owned property located within the Palm Coast Strategic Employment Zone. This Request for Statement of Qualifications (RFSQ) targets the development of a speculative industrial warehouse or industrial shell project, with the first phase anticipated to comprise approximately 50,000 square feet on five acres. The solicitation seeks developers capable of establishing a long-term ground lease with an initial term of 50-75 years, focusing on creating an industrial development that supports economic growth and job creation. Proposals will be evaluated based on four key criteria: developer qualifications and experience, project development plan and vision, economic impact and job creation potential, and financial offer terms. Critical dates include a non-mandatory pre-proposal meeting on February 11, 2026 at 9:00 AM, a question submission deadline of March 3, 2026 at 2:00 PM, and the final proposal deadline of April 14, 2026 at 2:00 PM. All submissions must be made electronically through the Bonfire Hub portal, with a maximum file upload size of 1000 MB.

The property is strategically located on U.S. Highway 1 with direct Interstate 95 access and is situated within Flagler County's federally designated Opportunity Zone, which may provide additional incentives for qualified developers. The ground lease structure includes innovative cost recovery mechanisms, with the city contributing $58,600 annually toward cost recovery after vertical construction begins, and a total eligible entitlement cost cap of $350,000. The underlying land is valued at $38,000 per acre, with an initial annual base rent of $2,280 per five acres. While no specific set-aside designations for disadvantaged enterprises are explicitly mentioned, the project may qualify for the Florida Department of Commerce's Florida Job Growth Grant Fund, which offers infrastructure improvement funds and job creation bonuses. The development is expected to support local economic development by creating industrial space with flexible design capabilities, allowing for future demising of the property. The unique lease structure includes performance-based rent calculations, with post-recovery rent calculated as eight percent of stabilized Net Operating Income, providing a potentially attractive opportunity for developers willing to invest in long-term economic development in the Palm Coast area.