It is part of Florida lore that in this state of sunshine laws and ethics commissions there are no backroom deals between government and business. Of course that’s not true. Backroom deals were written into law since the Republican one-party state began under Jeb Bush in 2001, giving local governments the freedom to cook up deals in secret with companies looking for handouts.
This corporate welfare is done under the cloak of economic development “incentives.” Local governments will approve those deals, with your money, and you’ll know nothing about them for up to a year or more, the way Bunnell did a few months ago for something called “Project Christine.” The city is giving away almost $100,000 in tax dollars over seven years in exchange for the promise of just 17 new jobs. No one knows who the company is, what it’ll be doing or where, and by the time we find out, it’ll be too late. The deal will have been sealed.
Those deals may sound like they’re making a difference, or that they’re absolutely essential to the local economy. They’re not. In the last 10 years Flagler County residents have netted 10,000 new jobs. You can probably count the jobs owed corporate welfare on two hands. These deals are nothing short of government pandering at the expense of the public’s right to know where its money is going and what properties are being used for what kind of business.
Palm Coast is in the middle of just such a secret deal, with an Atlanta-based company called DC Blox. The company, operating locally under the name of DCB Orchid, bought 34 acres in Town Center for $3.3 million last fall. It plans to build a data center there to land several undersea internet-data cables, by way of Flagler Beach. The city and the county are cooking up some kind of tax incentive with the company. We don’t know how much. We don’t know for how long. We don’t know for how many jobs, though it’s not that many: data centers employ dozens, not hundreds. Presumably, we’ll find out when the deal is sealed.
We know about the company only because, to its credit (or rather to Flagler Beach’s), it spoke openly about some of its plans when it sought permission from the Flagler Beach City Commission to use a couple of parcels of land there as landing points for the undersea cables. But when I was about to report on that earlier this month, I got a call from a county official hoping to kill the story, on the bogus claim that its publication would damage the deal. I thought I was back in 1940 Okeechobee.
It reminded me of when Palm Coast and the county gave away the farm to Palm Coast Data some years ago–$400,000 in tax incentives from the city plus, for a pittance, that 70,000 square foot building on Commerce Boulevard where the city once had its offices. The county gave $100,000. The state gave $3 million. It was just one of those secret deals. All supposedly to keep Palm Coast Data, even though the company had made up its mind to consolidate operations from several other states here already. Palm Coast data was promising 700 new jobs.
Not only did the jobs never materialize, but what was then the largest employer in the county was reduced at last check to a miserable little storefront in Bunnell with two and a half employees. “Simply put,” a lawsuit filed a few years ago states, after Palm Coast Data “received the $3 million award, it failed to live up to its end of the bargain–at the expense of Florida taxpayers.” The state recovered some of the incentive money. Palm Coast and the county lost all they “invested.” A little more transparency before the secret deal might have prevented the swindle.
There’s nothing wrong with incentives. The city’s terms could very well include tax breaks and other benefits. Governments should have the authority to offer incentives. But in the open from start to finish, with full public participation. Denying public involvement implies the public is too stupid to know what’s good for it. Greasing a deal in a secret arrangement is an admission that what Palm Coast has to offer in the open isn’t enough, that we’re the sort of city that begs and panders, when it should be the other way around.
Governments will always claim that they need the secrecy to close these deals, otherwise companies won’t come here. That’s rubbish. Most employers make their moves outside of government pandering, and those that don’t tend to play governments against each other in their own little backroom auction. It’s a sordid business. But if a company is willing to be so secretive upfront, it’ll be deceptive down the line.
Maybe a data center in Town Center is the greatest thing since Palm Coast Data. Maybe it isn’t. Either way, we won’t know until it’s too late. And for what?
Companies playing the incentive game always make wild predictions about millions to be invested, millions to be reaped in new wages, and many more millions to ripple through the economy. The companies rarely or never provide the blueprints that verify the claims, and the economic multiplier data that governments love to huckster and reporters love to swallow, no questions asked, is the the rankest snow job this side of Mencken’s bathtub hoax. That kind of data is fabrications, typically issued in the florid speculation of press releases announcing the done deal.
If this is what Palm Coast is working on with DC Blox, let’s withhold applause and demand more transparency, because Flagler Beach has already been surprised by the company’s demands for those two easements on the shore, on public land, for which it is willing to pay only a fraction of what the easements are worth. Now that the city is reluctant to let one of its parking lots be used as a cable landing zone, the company is proposing to run the cables through Veterans Park (Veterans Park!), and offer some mysterious incentive to ease the way.
They’re still working on it on the island, with feverish lobbying as we speak: the company asked to meet with individual city commissioners–behind closed doors, of course. They’re meeting this week, one after the other, while Palm Coast remains entirely mum on the company’s dealings, and conducts its own lobbying of Flagler Beach officials.
State law grants secrecy for incentive programs. Secrecy is not mandatory. Palm Coast and DC Blox could choose to be upfront and transparent and still work out an incentive package. That’s the route they should take. The only thing that should be buried and out of sight is those internet cables–not public dollars, certainly not public awareness and participation. If we’re to trust it, let this deal come out of its black hole.
Pierre Tristam is the editor of FlaglerLive. A version of this piece airs on WNZF.
Concerned Citizen requesting Smart Growth says
This is sadly nothing new for Palm Coast leaders. In my experience, the City Staff works for the developers, and not the citizens of Palm Coast. They spend their time devising claims that these projects are compliant with the Comprehensive Plan and Land Development Code with zero competent substantial evidence. They advocate for annexation and land swap of City properties to usher in hideous growth with no value to current residents. The quality of life, traffic, infrastructure, and compatibility issues are real, and despite public outcry, these elected leaders just do not care about the current City of Palm Coast residents, our health, or our welfare, with the exception of Ms. Pontieri, who uses good judgment for Smart Growth and has the best interest of the City of Palm Coast as her compass, not greed and destruction at any cost.
Jan Reeger says
Sometimes when I see attacks on those that may be innocent of your charges, it irritates me. City staff does their job. If you have evidence or positive proof of stuff that is one thing but just to throw it out there is unfair. I am currently working with the city and I guarantee, they are adhering to the codes.
Lisa says
Palm Coast and
Flagler County operate like the Wild, Wild West.
The dude says
MAGA doesn’t thrive in the sunlight.
Judith Michaud says
Amen to that dude! Way too many of them are in our city government! The people need to do their homework before voting!
TR says
Apparently it no longer is a secret if this article is now on the internet.
JimboXYZ says
Sounds like they got burned in the last dealing with a promise of 700 jobs that never materialized. Those 700 jobs, even if they had materialized would’ve been top loaded for certain meoptism/cronyism hires, the usual DEI&B hires. By the time it trickled on the rest of the community there would be the $ 15/hour leftovers.
I Said It says
You know absolutely nothing about the Palm Coast Data deal. Typical MAGA moron being a misogynist, racist, xenophobic loser. Your “DEI” complaint is a tell. A world of white men only is boring. A world of white male MAGA morons is taking us back to the 1800s.
Are you so angry because you lost your life savings in Truth Social, the Trump Bible, his worthless gold coins and sneakers, or from spending thousands on being included in his cult (donations to his legal fees, shirts, hats and flags made in ChiNA? Trump loves the poorly educated and he takes them for every penny they will give. Trump is the modern-day equivalent of scammer and trickster, PT Barnum.
Crystal Lang says
@Said It and everyone else… enough with the MAGA crap. Reading your comment sounds like you are the angry one. It does not matter Republican or Democrat our city is in trouble. Do you honestly think that if David and the council members who are Realtors were Democrats it would be any different, I think not. So stop with the it’s Trump’s fault or Biden’s fault. Both parties are on these comment sections and for the most part everyone agrees on a lot of issues we have. Republican or Democrat we are all being screwed in one way or another.
Nephew Of Uncle Sam says
Crystal you’re not here enough if you haven’t seen Jimbo’s rants that are always pro orange guy and everything under the sun is Presidents Bidens fault. So yes “I Said It” is spot on and not a rant.
THOMAS JONES says
Why are you so angry?
Jim says
Impressive. How do you know how those [non-existent] jobs would have been filled? Just curious….
What is “meoptism”? I couldn’t find it in the dictionary but I suspect you have a “special” dictionary that carries words not known to most of us. Please enlighten us!
Oh, and you forgot to say it’s Biden’s fault……
Jack says
Ever since Alfin got elected and not by me and I am proud to say that, there are many underground deals he is making. There needs to be a committee established to investigate him and the dealings he is doing.
Pierre please report more of what this con man is up to and I am sure there is a lot more than we realize.
TR says
Don’t need a committee, need a forensic audit.
Deborah Coffey says
There will be very few jobs and all of our Internet speed will be eaten up by the Data Center creating a desert in Palm Coast. Additionally, Russia is cutting undersea cables in attacks on the West AND, Data Centers use an incredible amount of water. How’s your bill? Does Palm Coast have enough water?
https://news.yahoo.com/russia-may-just-carried-first-171928137.html
https://maritime-executive.com/editorials/could-russia-deliver-on-its-threat-to-cut-subsea-cables
https://www.washingtonpost.com/climate-environment/2023/04/25/data-centers-drought-water-use/
Deborah Coffey says
And, here’s another headline in the Washington Post today about the extensive need for electricity in Data Centers.
Does this council do homework????
https://www.washingtonpost.com/business/interactive/2024/data-centers-internet-power-source-coal/?itid=hp-top-table-main_p001_f004
Stop The Insanity says
It sounds like these data centers will consume large amounts of water and electricity. Time to write or call those elected officials responsible for making these deals and insist on transparency. Refer to an earlier flagler live article, April 5th for more information on the data center. Titled, “Huge Data Center Planned in Palm Coast with Undersea Internet Cables”.
Deborah Coffey says
I think I’ll just do that. Thanks.
Joe D says
Anyone heard of those PESKY Florida SUNSHINE LAWS?!
I had commented in an earlier article, that we had NO IDEA what potential tax or job creation promises might have been made. I noted a few weeks ago, that MANY times, Government bodies give tax and/or other financial incentives to individual private companies to locate or expand in the area. Those deals, however are typically announced in public (not apparently being done in the case of DC BLOX). What’s the big secret? Why should Palm Coast citizens not be privy to these agreements? “Little” Flagler Beach Commission was not as easily bulldozed, with a QUICK and QUIET deal approval.
Commissioners had questions about the project, the effects of the easement on future use of the requested property ( they were essentially told there could be NO OTHER use of the proposed property now or in the future other than the current use as a parking lot, AFTER the cable junction was installed). The Commission wisely tabled approval until more information could be obtained.
So (according to this new article) the Palm Coast representatives, and DC Blox have been petitioning, individually AND in secret with Flagler Beach Commissioners….SUNSHINE LAWS again?
I would HOPE that before the Flagler Beach Commission votes on any deal for this cable junction, there are more public informational meetings and opportunities for citizens to ask questions and give concerns, since this deal would be permanent, and not a renewable contract.
jeffery cortland seib says
As chairman of the city’s Beautification and Environmental Advisory Committee (BEAC) our committee voted to approve a program of humble, small scale, tax incentives for apartments to install EV charging stations and for businesses to get a tax break for building according to the LEED (leadership in energy and environmental design) conditions. I delivered this information to the Planning and Land Development Review Board (PLDRB). The board after hearing my pitch was ready to go for it but the city planners prevented them at that time, and then it was summarily dismissed and disappeared. These actions are where the council needs to get involved. The planning staff, one person, doesn’t have all the answers. This stuff needs to be done in the open with council approval.
BIG Neighbor says
Thank you for your persistence and good works on behalf of those that value forward thinking initiatives.
Instatok says
Personally I don’t really give a flying f–k if there are incentives that may equate to, what, $2 of my hard earned taxes? A bonifide data center with an applicable meet-me room (where many carriers come together with their circuits) is desperately needed in our NE Fla area. You have to go to Jax or Orlando to get anything worth mentioning when it comes to data transport. Even the new Metronet has to traverse along the backroads of potato farms via Windstream and CenturyStink all the way to Tallahassee! Both residents and especially businesses benefit whether they know it not. Carriers will get better. Quality will get better. Prices will come down. When businesses have to compete, we all win! Bring it on! You benefit too brother for next to nothin’ out of your pocket.
D w Ferguson says
Flagler / Palm Coast needs more Quality jobs. Medical(hospital), Education(schools), Government , Retail and Hospitality offer some new opportunity. This technology centric project might offer better wage jobs. Perhaps you might consider letting the process play out before worrying about its “sunshine” laws compliance negotiations. There will be ample time to report on its ultimate Success or Not. This could be one of the better projects that this area has had ” in play” in the last decade or more. Thank you for trying to get the story ” right ” and first, Mr. Tristam
Deborah Coffey says
https://www.techrepublic.com/article/why-data-centers-fail-to-bring-new-jobs-to-small-towns/
Dennis C Rathsam says
Stuff Em In Alvin is making Palm Coast the worm, in what once was a shining apple! Now its rotten to the core!
Dianne says
Real estate commission paychecks are really big on commercial property sales…the more deals..the more money made..think about it
Dave says
Why are they doing backroom dealing, its what they have been doing since this city was founded., Backroom deals mixed in with back scratching.
RobdaSlob says
Does anyone know….if the Palm Coast (or maybe its Flagler County) electrical infrastructure will support the demand for this type of facility in its current state? Are new power lines or additional power generation capacity needed? And who is paying if it is?
dave says
And who is paying if it is?, well if you live in the City in some way , you will.
Mischa Gee says
In my humble opinion, I believe it is this kind of business development along with the sudden rush to put too many apartments/ condos and the shrinking of property size for single family homes ( it originally was approximately a quarter acre per home) with not enough parking or roads to handle the additional cars that will cause Palm Coast to turn into another slummy, overcrowded, unmanageable place to live.
Unfortunately, since I am a senior citizen, and not in a financial position to sell and move, I will be living the nightmare of excessive thoughtless overdevelopment in my future.
Further, I believe that the reason that Ms. Blevins was unceremoniously fired was because she was questioning the need and validity for all these recent code and development changes. Alvin didn’t want to hear it, since his pocket is more than likely being greased, so away with her.
Palm Coasters better wake up and get rid of him and any other champions of unfettered development before it’s too late.
THOMAS JONES says
Your feelings and beliefs do NOT change facts.
Pogo says
@Deborah Coffey
Keep up the good work.
US electric utilities brace for surge in power demand from data centers
https://www.reuters.com/business/energy/us-electric-utilities-brace-surge-power-demand-data-centers-2024-04-10/
And so it goes…
joy Massie McGrew says
to all flagler beach residents: PLEASE TELL YOUR COMMISSIONER TO VOTE “NO,NO,NO”!!!!!!!!!!!
NOT FOR FLAGLER BEACH— NO WHERE IN FLAGLER!!!!
WHY NOT LAND IT ACROSS FROM THE OLD SEARAY PLANT AND ACROSS LEIGH TRAIL????
NO ONE IS USING COMMON SENSE….IT DOESNT MIX WITH POLITICS AND GOVERNMENT
JUST SAYING….IT WILL BE A SHAM IF THIS HAPPENS.
Dee says
Election don’t vote for anyone in construction or real estate that is all are elected officials are and lining there pickets
chris says
Its a data center. itll take alot of trades to construct within very specific compliance standards. Probably a national level general contractor and most of the subs wont be from around the area, and because of the skills gap in the area with a limited talent pool, alot of remote employees. after buildout your looking at 150-250 ppl tops ide bet. thats just the new facility, not contractors or other community support roles like cleaning, landscaping, etc…