Palm Coast City Council Approves Temporary Utility Operations Facilities

At its March 17 Business Meeting, the Palm Coast City Council approved the purchase of temporary modular facilities to house Utility Operations staff after the City vacated the building at 2 Utility Drive due to significant maintenance issues.

The building at 2 Utility Drive, constructed in 1976, is one of the oldest buildings in Palm Coast. It currently supports approximately 100 Utility personnel, including about 70 field staff who rely on the location for locker rooms and operational support while serving residents throughout the city.

Over time, the aging facility has experienced increasing maintenance problems, including roof leaks, plumbing failures in restrooms and locker rooms, HVAC system issues, fire line leaks, nuisance pests, and interior finishes that have reached the end of their serviceable life. City staff determined the building was no longer suitable for uninterrupted administrative and operational work activities and vacated the facility approximately four weeks ago.

Originally, staff proposed leasing temporary modular buildings for the site while the City continues work on the future Maintenance Operations Complex (MOC). However, during the March 17 meeting, Vice Mayor Theresa Pontieri proposed purchasing the modular structures instead of leasing them. The City Council supported the idea, recognizing the long-term value the buildings could provide to the community.

City Council approved a total project budget of $2.5 million to purchase the temporary facilities and complete the necessary site modifications.

By purchasing the modular buildings rather than leasing them, the City will be able to repurpose the structures in the future once the Maintenance Operations Complex is complete. Potential future uses include administrative space for the City’s planned animal shelter and other municipal operations.

The modular facilities will be installed at the existing Utility Operations site at 2 Utility Drive, allowing staff to continue operating from a central location while the new Maintenance Operations Complex is developed.

Once the Maintenance Operations Complex is complete and Utility staff relocate, the 2 Utility Drive property will become available for potential redevelopment.

Located in a prime area within an industrial park, the property is currently zoned Public and Semi-Public (PSP) for government use but could be rezoned in the future to allow private business or industrial development. This could create an opportunity for the City to market the property and generate future revenue while supporting economic growth.

City Council emphasized the need for Utility employees to have safe and functional workspaces while also maximizing long-term value for the community.

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