Belvedere Terminals, a start-up company developing a new gas and diesel distribution network by rail, will build a fuel depot and distribution plant on a 78-acre site on Palm Coast’s Peavy Grade, next to the city’s Water Treatment Plant 3 off U.S. 1. The company intends to start operations in late 2026.
The $75 million to $80 million capital investment locally will result in a half dozen fuel tanks with a total capacity of 300,000 barrels of gasoline and diesel storage, or 12.6 million gallons–the equivalent of 17 water towers like Palm Coast’s off I-95.
A 125-car train will deliver the fuel to the facility, emptying the fuel into the storage tanks about once a week. (The locomotive will be run by CSX engineers on Florida East Coast’s rail line, but the train cars, designed at the latest safety standards, will be owned by the company). From there, tank truck will distribute the fuel to stations in Flagler, Volusia and St. Johns counties, leaving the plant at the rate of one every four hours, 24 hours a day. Not including the truck drivers, the plant is expected to employ 30 to 40 people, most of them engineers, at an average salary of $100,000.
Local property tax revenue is expected to reach $800,000 a year, according to Flagler County Administrator Heidi Petito. That would make the plant by far the largest generator of property tax revenue in Palm Coast or the city. (In comparison, a Publix store generates roughly $125,000 a year.) Petito announced the company’s pending deal alongside Interim Palm Coast City Manager Lauren Johnston in a meeting with reporters today, with Tim Schwarz, Belvedere Terminals’ chief financial officer, joining by phone.
County and city officials are touting the company’s plans as an economic development win that would bring much-needed non-residential property tax revenue in a county where homeowners account for 90 percent of tax revenue, against 10 percent for commercial and industrial.
Schwarz is touting the plant as an innovative, less expensive and environmentally safer way to transport fuel, most of which is currently transported by ship to ports before it is loaded onto delivery tank trucks. “We’re 10 to 15 percent cheaper than the distribution cost of bringing it through the ports,” Schwarz said, though don’t count your savings at the local pump just yet.“It might cut a nickel or a dime off the price.”
Schwarz spoke at length about elaborate safety measures that will be in place, down to a substantial membrane that will run beneath the entirety of the area where the tanks will be built, to mitigate any spills, and a standard 10 times more stringent than the Environmental Protection Agency requirements to minimize odors. Still, he’s aware that the plan may face public resistance.
The company attempted to build its site in Ormond Beach. It did not go well. Public opposition, litigation and a change in political support from the Volusia County Council halted the plan there, shifting it to Flagler County. Though the acreage in Palm Coast is zoned industrial, the size of the project is likely to require public hearing before the Palm Coast Planning Board and the City Council once Belvedere Terminals submits its site plan.
“When people say, well, it’s not what we were hoping for,” Schwarz said, “it takes a little bit of learning. That’s why we want to communicate. But we are an absolutely, very safe way of bringing in a product that everybody uses every day, is on every corner of your city, and it takes some education. But I think that what we are offering is a way to help the vast majority of the residents.”
The company is benefiting from a $10 million Florida Department of Commerce grant to buy the land in Palm Coast and use about $2 million of that for site preparation. County government is the grant’s local agent. The County Commission is set to approve it on April 7, as the county will own the property for the first five years, though Belvedere Terminals will pay property taxes from the time it begins operations.
“I would hope that people would appreciate the fact that we’re trying to bring commercial, industrial opportunities into the community to lessen the impact and burden on the residential tax base,” Petito said. “Unfortunately, you can’t sustain yourself on residential property, so we need to find a different way to be able to support that. And I think when you look back at our strategic plan, the city strategic plan, it’s about improving overall quality of life for our residents and reducing that tax burden.”
Officials are aware, like Schwarz, that the plan may not sail through without at least some echoes from Ormond Beach: the depot would be located near a water plant, at 3,500 feet from two of the city’s wells, and not far from residential development. But it is also near a construction-waste dump, part of whose acreage will be acquired by the new company, and a high-power line right of way.
Local officials prefer to focus on the plant’s benefits to the city’s tax base. “It’s part of Palm Coast’s strategic plan for economic vitality,” Johnston said. “We know that our residents want us to focus on this important aspect, because it’s indicated in our most recent citizen survey results. And for Palm Coast, [the economy] was rated the third most important at 91 percent, but the quality of our economy is only at 46 percent.” The survey did not get so granular as to ask what type of economic development residents favor.
Johnston underscored the joint approach between the city and the county, overlooking boundaries.
To that end, Johnston and Petito today spoke of three other potential economic development projects, one of them closer to realization than two others. That project is a revival of Palm Coast’s plan for a $93 million sports complex on its west side. The plan failed when voters rejected an amendment to the city charter that would have facilitated a public-private partnership to finance the complex, which would be built and run by a private company called Synergy.
Synergy is back. So is the project, now at $110 million. Except that Synergy will present it before the County Commission. County government is not barred from entering into public-private partnerships. The complex would still be built in Palm Coast. But the county would be the financing agent with Synergy–an end run around Palm Coast’s limitations, if not its voters: the complex proposal had drawn significant opposition.
Petito spoke of two additional economic development projects, both at the county airport. One of them, a Black Hawk helicopter repair company, was reported on her earlier this month. The other is less sure for now: the airport is a finalist, along with Jacksonville and a site in Seminole County, for what the county is calling Project X-Ray, a 1,200-employee manufacturing plant that would be built in two phases, with a total investment of $750 million.
That company will announce its intentions at the end of April. Petito and Jorge Salinas, her deputy (who was part of the meeting), would not disclose what type of manufacturing company that would be, other than to say it’ll be “advanced manufacturing,” by a company most people would not be familiar with.
[Initially published March 27, 19:25]
DP says
Awsome news for taxes, dumb move putting 300,000 barrels of fuel next to a water treatment facility. A facility for drinking water for the citizens of palm coast. Brain dead administrator’s for allowing and thinking this as a good thing. Can’t wait when we have a potential incident and or spill that pollutes our drinking water
The Populist... says
Finally real business….
K Newman says
Why are the taxpayers subsidizing a known bad apple like Grupo Mexico to build a huge and profitable fuel terminal? Do your research on Grupo Mexico- one of the most notorious polluters and perpetrators of environmental disasters in the last 50 years.
Keep Flagler Beautiful says
I knew that when there was a massive outcry against this project in Volusia, it would end up in Flagler County, the only place in Central Florida financially desperate enough to accept it and whose government leaders would cave to the idea because of tax revenue. If this county had responsible leadership, this never would have happened. Right next to the water treatment plant. How perfect. Starting the countdown to the first explosion. And get ready for the next cancer zone, as well. Flagler County can always be counted on to welcome the next environmental catastrophe. It just can’t say no.
Jean says
Oh dear God no, our water will be affected, and there are already daily accidents on 95. Please everyone note all the City cares about is tax revenue
Bob.m says
The first red flag. Is its being build near 2 of the cities water wells. Everyone knows water and oil don’t mix well. In ormond they tried to build it directly next to a huge sports complex where children of all ages gather to.play sports that was as dumb as putting it near city water wells and future housing. Who wants to buy a new home near a huge fuel farm. Not me..try selling that house in 5 years . thats a lot of gasoline bring transported on the rails and then on the roads. Lots of trucks with fuel sharing the streets with school buses. I hope the fuel farm builds a private fire house on the property with airport type fire trucks that can knock down a fuel tank fire . and hire their own firefighters local fire dept don’t have airport fire trucks .with large reserve water tanks on board and form.
Bob says
One other little item. Please walk the land and reduce rescue gopher tortoise that inhabit that land and not bill doze and burry them alive.
JimboXYZ says
Why build this next to the STF #3 that is relatively purifying water for the entire county ?
Maybe they don’t realize it, but Palm Coast is pretty much Flagler county for population & votes.
“an end run around Palm Coast’s limitations, if not its voters: the complex proposal had drawn significant opposition.”
Don’t get me wrong, I’m all for the tax revenue to offset 4 years of growth that was approved and created inflation for the Utility upgrades. This is a step in the right direction for tax revenue & base to pay for some of that. I’m just concerned for a toxic fuel depot next to the water supply. Whether it’s fresh water or the water supply lines that is flushed in every home affected by STF #3. I don’t think anyone wants leaked gasoline & diesel in their home, even if the EPA blesses it as an acceptable level, regardless if it’s at a Federal, State, County, City government level doing that blessing ? I doubt anyone wants that on a field of dreams for their children to be playing sports next to a toxic fuel depot just the same. Anyone want to buy a home in that area ?
Atwp says
Ormond didn’t get it. We will see what Palm Coast does?
Maryann Collins says
What else can we put in Palm Coast? This one is scary wht did Ormond Beach stop it? Do your research!! People, please get your heads out of the sand and look at the whole picture! Our quality of life is being stolen day after day. If we don’t start stopping these things there will be no way to live here safely or happily. (It may already be too late) Our roads are out of control, building out of control, there will not be enough schools for all this building and not enough Doctors and healthcare workers or hospital facilities for this. How many of your Doctors have relocated? Make it stop, pay attention, fight!!!
Bizarro World is Here Now says
Thank god Commissioner Pennington is here to put a stop to this potential ENVIRONMENTAL DISASTER in the making. What else does Petito envision for Flagler County a NUCLEAR WASTE TRANSFER STATION OR A TOXIC WASTE STORAGE FACILITY ?
Drill baby drill says
Perfect! They’re only 3,500 feet from one way this town gets what measly water we have! I see NOTHING wrong with that! Why did Ormond pass this opportunity up!?!?
Mark says
Unless CSX has a run through agreement with the FEC they will not be the ones delivering it, it will be the FEC. As of right now they don’t have that agreement yet it would be a win for the FEC if they didn’t have to change crews, time will tell.
Otherwise who the hell thinks this is a perfect spot for storing fuel, 3500′ from two wells that serve the community plus a treatment plant. I’m all for rail served industries yet this needs to be another mile away from any wells, public or private.
Capt Bill Hanagan says
Wow can’t believe all these snowflakes afraid of a little diesel in the water.. we used to drink diesel from a hose and we turned out PERFECT
Duane says
Ormond Beach and Volusia County fight hard not to allow this facility off of US1 in Ormond Beach so Flagler Cunty officials decide, this is a great deal for Palm Coast. Hey folks, pull you head out of your butt and take a look around.
tulip says
I’m not happy with this decision either. Every one here has expressed a legitimate concern about this and I would like to add one more. If, God forbid, we get into some kind of war we will be on a target list to be blown up in order to eliminate some fuel supply, just like they do over seas. Or even just some kind of accident happening at the plant to set things off.
Larry says
Move the water plant elsewhere before the fuel facility begins construction. Too much risk of ruining the city’s drinking water source. The risk of contaminating the city’s drinking water source is NOT worth $800,000/year in tax revenue.
Moving the water plant is not financially feasible. Therefore the fuel plant shouldn’t be approved, because it’s too darn close to the source of residential drinking water.
T says
Vote josh Weil save this country and ssi for olders
Gem says
Looks like the big dream of turning Palm Coast into a jacksonville has finally arrived! This town will be nothing but a huge crap hole, polluted mess, overpopulation, bad utilities, crime , the works!
Brian Riehle says
Better get your objections to this project communicated to the EPA and and any other Regulating entity before they are all shut down. This is a Red State, where an “anything goes” , attitude is about to become the norm as long as it doesn’t slow down the Corporate world, and where Government safety regulations are not wanted and not needed. What’s wrong with a little petroleum in the water supply ? For years people living in some of the Fracking Regions have been drinking water that contains flammable gas.
Barney says
Folks get off your high horses when you’re whining about “environmental disasters”. There’s been an environmental disaster going on for over the last century as we continue to burn fossil fuels. That ain’t changing until it’s all gone. We can only hope we make it that far l’est we nuke ourselves or asphyciate. Don’t want fuel terminals, ships, trains and trucks all spewing carbon in your local precious air and water? Stop buying the product. Simple as that.
Keep Flagler Beautiful says
While so many other parts of Florida are welcoming IT companies and financial firms, we get the toxic, very dangerous fuel depot and one ugly storage facility after another. What’s wrong with this picture? Many in our local government, both city and county, are much more concerned with reaching retirement and receiving their lavish retirement benefits than approaching development in a responsible way. It’s always a Band-Aid. “Where can we grab some tax money — quick!” So much damage has been done here, but that doesn’t mean the same mistakes have to keep happening. There are counties all over America who have far less to offer than us and they’re getting high-quality investments. Why? Because they have a business development officer who does nothing but meet with heads of companies from coast to coast to offer incentives for them to move to their area. They are proactive professionals. Maybe Flagler County does a bit of that already, but it could use a “top gun” — someone highly motivated and experienced to assume that role and put us on the right track.
Richard Russell says
Who owns the land / site for this project ?
Concerned Citizen says
Time to ask for an Environmental Impact Statement. Nothing good will come of a fuel depot being next to a water treatment facility.
Uh o says
Haha perfect toxic water coming to you shortly. No worries the epa has closed and the billionaires are fully protected. Maybe you can ship in your drinking water from Mexico with a tariff of course hahahah! Greed over people killed the USA. Now we are amerikkka where billionaires are the only people that matter. Shut down those food banks and let people starve Elon needs more of your money for a yacht. Unfortunately this is our actual policy.
Keep Flagler County Great says
You can search in google map, they already started building something there. They are trying to force it through without public awareness or comment, they learned from their mistakes in Ormond beach and found a board corrupt enough to let them start development before approval and withhold all information until last minute
Virginian says
When I lived in Fairfax County, VA there was a major issue with leakage and spills at a tank farm in Fairfax City. These problems resulted in petroleum bloom flowing under adjacent homes. Luckily Fairfax relied on surface water for drinking. Not so here. Such a bloom will have devastating effects here. See this site for more info.
https://www.washingtontimes.com/news/2011/sep/1/complaints-still-flowing-about-leaks-from-oil-farm/
Land ethic says
The city and county officials having had multiple meetings to fast track this peoject, and allow construction to already begin begin before any public disclosure or comment, is a clear violation of FL Sunshine laws and evidence of a widespread conspiracy to purposefully keep constituents in the dark as to prevent us from expressing legitimate concerns. It is fair to argue if the elected officials are acting illegally it is time to start questioning their morals and ethics. When God commanded us in the Bible to be good stewards of the land he was not speaking in hyperbole and will have a special place in hell for every hand that rubber stamped, signed off on, or proffited from literally poisoning the well in Palm Coast by building a toxic fuel repisitory across the street from two open wells to our aquifer at our cities drinking water treatnent facilities.
Joseph Barand says
Beside of the common sense objections I can’t wrap my head around Pubix paying only $125k in taxes which is only 15 times what I pay for a single family homes. What kind of income does the Publix store generate? Now these brain surgeons talk about $800,000 in taxes from a fuel farm, again only 100 times what myowership sends to the political idiots.
The property tax ponzi scheme needs to be fully investigated, justified and corrected.
Cecelia Green-Geer says
Ask the people of East Palestine Ohio what they have been through after the train derailed and exploded in their small town.
I cannot believe no one knows about this, and next to our water supply, who thought that was a good idea. We would love to have lower property taxes, but is that really ever going to happen? Show us the lower taxes then let us know what you are doing. If Ormond did not want it why should we?
Keep Flagler Beautiful says
I don’t see how it could possibly be legal for this deal to have been agreed upon by the county administrator without public notice and subsequent public commentary. Petito’s business brain must have been on vacation if she thought it was a good deal to sell off our environment, air quality, the safety of our drinking water, and 78 acres of land near I-95 for a measly $800,000 a year in tax revenue. How many city or county salaries/pensions will $800,000 cover — 6? 7? I’ll tell you where to find $800,000. Have an audit done to determine how many of our local government employees are extraneous. I’ve seen more work get done in an iron lung than inside some offices. And I can’t wait to hear what the mysterious “advanced manufacturing” plant produces. You can bet that it will be another toxic operation. That’s all Flagler County is ever blessed with because of our wealth of incompetent officials.
Pogo says
@Wait for it
… tricky rick scott, moody, fine, duhsantis — the orange one itself — all lined up with gold color spoons for the groundbreaking celebration at the new rocket fuel manufacturing and storage site next door.
Can a gun range using the fuel depot as a backstop be long behind? With the track record of the hyenas of floriduh’s elected majority, it’s a virtual fait accompli.
Smoke ’em if ya got ’em. Yee-Haw!
CB says
Too close to residential properties will absolutely lower value. It will look LIKE NJ the literally armpit of America. It is what everyone hates about NJ, there will be a lot more opportunities for Palm Coast because of its central location, let this one go away and be patient for others
FlaPharmTech says
Wow, now THIS???!!!! Could PC leadership rip their heads out of their bum and envision a viable future for Palm Coast??!!! My Woodlands hood stinks of sewage, now this crap?!!!!!!!!!!!!????? I’m disgusted, next step is….
FlaPharmTech says
Publix is a bully. I own Publix stock. They force their “mighty corporate might” down everyone’s throat and somehow get off without a scratch. Republican bully like the orange thug, only Publix is greedy green.
Jane Gentile-Youd says
Why are the elected officials in the county as well as Palm Coast allowing their employees to make decisions which should only be made by them who were elected by ‘We the people’?
Why are ‘We the people putting up with this?
MaryAnn Collins says
While the majority of the comments are valid we must fight all this and fast it made it to the tv news yesterday. Its totally unacceptable that we just sit and say we cannot fight this because of our elected officials! They are stripping us of alot of things fighting back is a must. Palm Coast officials have stripped us of our water resources, over building and letting contractors changing the moratorium vote just by going to a meeting and pressuring some pockets! Our quality of life is in jeopardy fight back people lets get a plan!!!
Cindy Jameson says
What else do we not know about. I was at Walmart yesterday on line and listened to a short conversation about this deal and the older gentleman suggested the residents are either due a refund in our taxes or the residents should NOT pay their taxes since the city is getting enough money from these horrible deals they are making. While writing this I just realized the counsel and mayor and city employees live in Palm Coast are they serious about this????
Dump the Fuel Dump says
I find it astounding that Ormond Beach knew about this project since 2023 and the residents were able to organize and oppose it. Hence here we are today, just learning about it and the leadership of Flagler and Palm Coast are ready to sign off on it? Without giving residents a chance to learn the environmental impact it will have here? Who thought it would be a good idea to build it near our water treatment station? They’re selling their soul to the devil for a measly $800,000 a year in tax revenue? That’s hilarious! Who will be responsible for the infrastructure that will be required for this dangerous project? Will any of our overpaid officials in this town do their due diligence with this very inappropriate location? Or are they going to shove it down our throats like every other project they’ve approved? One more thing, the ten million dollars that the state is so generously providing, our tax dollars of course, can be used much more wisely.
Using Common Sense says
How dare the City and County try to shove this down the throats of the local residents! It is bad enough that they currently allow the unrestricted contamination of our air and water by hundreds of excessive and lead polluting training aircraft. The real threat to our quality of life, safety, health, and welfare, and property values have been ignored for far too long! If we do not unite and FIGHT for our rights, our City and County will continue its downward spiral. We the People demand a safe living environment, clean air, quiet skies, unpolluted water, and the protection of our RIGHTS! Stop allowing greed from destroying the City that we love and the County from undesirable and potentially dangerous development that come with catastrophic risks!
Power in Numbers says
Get everyone your friends and neighbors to show up at the Flagler County Commissioner meeting on Monday, April 7th at 9 am. Flagler County Commission Meeting – 9am Flagler County
https://www.flaglercounty.gov/Events/2025-BOCC-Meetings/2025-04-07-BOCC-Regular-Mtg-9am
Crisco kid says
So if this goes through not ONLY are we going to be paying higher prices for our
water and sewer but we also will be drinking contaminated water by this facility
as poisons from this facility will be leached into our water supply, all as we watch
our wildlife die. Johnston needs to go already and Petito needs to be fired, and
whoever of the county/city officials vote on this needs to be unseated at the next
elections, most of them don’t care since they do not live in that vicinity and/or are
lining their pockets with graft. Look how little they care about the marginalized
communities close to this area, and this wasn’t not allowed in Ormond, this should
speak volume. SHAME ON ALL OF THE SCUM who vote for this, KARMA will come
for you and yours! Once again no proper public notice, public input, public address.
Keep Flagler Beautiful says
Crisco kid: There’s a new lineup of county commissioners, and they’re very unlike the Joe Mullins-led cabal that made their exit after their despicable leader was humiliated at the ballot box (as I recall, Leanne Pennington got 70% of the vote). I have every expectation that the new commission will listen to the public.
Tired of it says
Elect republicans and this is what you get.
celia pugliese says
The county and city managers, City Council, Mayor and FCBOCC need also to be reminded besides our water wells in danger that in a country that is wildfire burning 24-7 :
The fires of 98 came from west of Rte 1 vacant Rayonier lands were burned for days before jumping into the B section and burned the homes along Belle Terre north of the schools. Our house was saved because as still power was on, we left the irrigation lawn sprinkler running at evacution time in our way to A1A friends home in Matanzas Shore. Further from the Ashes – Palm Coast 1998 Wildfires.
Further from the Ashes – Palm Coast 1998 Wildfires, https://www.researchgate.net/figure/Regional-map-showing-fire-damaged-areas-of-the-1998-Florida-wildfires-for-Flagler_fig1_233616465. They want to install this time bomb for all specially for : https://www.gotoby.com/sawmill-creek-going-vertical-as-four-builders-buy-lots/. Greed is so obvious that the managers do not THINK!
Elect clowns ..you get the circus says
Ormand Beach rejected this because of concerns about spills, pollution, etc . Palm coast places it next to water treatment plant . We get to pay more for services every year.
Monica says
We need to fight against it like hell , come together and organized ,every one must show up a the hearings. save our county! save our children save our planet!
Who Cares says
If I wanted to live in Salinas California, I would’ve moved there 30 years ago. This is ridiculous. What was once a very peaceful quiet small community has become a traffic nightmare. Racing loud bikes and cars, builders ripping up acreage for developments that haven’t even been sold yet. When is this nightmare going to stop? How are our taxes going up? There’s not enough revenue from tourism? Now a toxic fuel plant by our water system perfect! Ripping up a whole areas by a haw creek for a 6000 home development. who exactly are they expecting to show up to move into all these homes? Three lots on my block alone have just been leveled by a builder. The houses are for sale. They haven’t even been sold yet. I’ve been here for 28 years. The worst thing that ever happened to Palm Coast was it became a city! So when the market crashes and we get through this current boom and we go bust. You can expect all these houses and developments to become section 8 because that’s exactly what happened in 2008. Watch them fill up with gang bangers running around doing home invasions and expect the crime rate to go off the chain. Does anybody understand this yet! Do we really need to relive 2008 again. For all the current newbies that moved down here, could you have some consideration driving around our town and stop racing and revving your bikes. Getting ready to move screw this. The place I once loved and thought I would never leave. I absolutely hate now. Thanks for destroying it. The city of Palm Coast. You crooked greedy pieces of garbage carpet baggers.
Justbob says
Hoping for EPA oversight? Won’t be much left of that agency after DOGE has its way with it.
Miss L says
Next to the water plant??? What could go wrong?
Keep Flagler Beautiful says
To “Tired of it says”: Just so you know, Flagler County Administrator Heidi Petito, who apparently was the one who set up this appalling, non-transparent deal, is not an elected official.
Crisco kid says
Keep Flagler Beautiful: So far the only 2 that are not in with the cabal
on the FCBOCC are Leann Pennington and Kim Carney, the only reason
Pam Richardson was elected was that many did not want Danko but she
is so far to be proven, according to her votes, not for her constituents who
campaignd for her, she is a big disappointment, teams up with Hansen
and Dance leaving Pennington and Carney without that 3rd vote, if she votes
for this is what will show her TRUE COLORS either for the safety, health
and welfare for Flagler County or another crony who is into power and a paycheck.
Erod says
I find it very hard to believe that Ms. Petito approved this all on her own. There’s no way this could have happened without the county commissions approval or knowledge.
Time to start asking our elected officials some tough questions.