Apopka officials will continue negotiating changes to an agreement intended to deliver the widening of Kelly Park Road while also examining what would happen if the city terminates the agreement, following a City Commission workshop Wednesday, Aug. 19. 

The commission took no formal action during the Aug. 19 workshop. Mayor Nick Nesta said he plans to meet Aug. 31 with the owner and attorney for the final property needed for right-of-way before bringing the issue back to commissioners. 

“At the end of the day, we just want a road done,” Nesta said. “The whole goal of this was to be cheaper and faster. Unfortunately, we’re just not there.”  

The Pioneering Agreement involves the city, Kelly Park VB Development LLC, Golden Gem Investments LLC and Galvin-Harris Land Services LLC. Interim City Administrator Radley Williams said its primary purpose is to coordinate infrastructure improvements in the Kelly Park Interchange area, predominantly the widening of Kelly Park Road. The original agreement was approved in 2023 and has been amended twice.  

The agreement caps participating developers’ contributions at $20 million — $15 million in initial funding and another $5 million. Williams said the initial $15 million has been provided, while the city and developers are working to secure the remaining $5 million. About $3.4 million of that amount is expected from Golden Gem, leaving about $1.6 million still to be identified.  

The city notified developers May 8 that the project had a funding deficiency. Williams said the issue includes uncertainty surrounding slope easements and a proposed construction budget that left no room for the 10 percent contingency the city typically carries on construction projects. 

Williams said staff estimated transportation impact fees at about $24 million using rates in place before the agreement, compared with roughly $48 million using current rates. 

Officials are working with the developers on a proposed third amendment that would clarify eligible parcels, use of interest in the KPI roadway account, project funding and the total funding date. Williams said staff was getting close to having an amendment ready to return to the commission for consideration.  

The other major obstacle is acquisition of the final piece of right-of-way. Nesta said the city could pursue eminent domain if negotiations fail but warned that litigation could produce an acquisition cost the city cannot control and further strain an already underfunded project.  

For developments covered by the agreement, the immediate result is that the roadway arrangement remains in place while the city decides how to proceed. City Attorney Cliff Shepard said the agreement leaves three alternatives if sufficient funding cannot be obtained: the co-developers provide additional money, the city provides it, or the city terminates the agreement.  

Nesta said staff will review the individual development agreements that could come back into play if the Pioneering Agreement is terminated. No decision on termination was made Wednesday. 

Resident Albert McKimmie criticized the agreement and questioned whether the city had received the transportation improvements it was supposed to produce. 

“The Pioneering Agreement was supposed to be there to allow us to have better connectivity within the road system in that area without the City Council having to pay for it,” McKimmie said.  

Resident Rod Olsen focused on pedestrian and bicycle access along Kelly Park Road as development continues. 

“Every day, kids are walking in the ditch and riding their bikes on the side of the road on Kelly Park Road for the developments that have already been approved,” Olsen said. “We have to do better.”  

Commissioner Nadia Anderson urged the mayor and city attorney to press for an agreement on the remaining right-of-way, calling the acquisition issue the current holdup. Commissioner Sam Ruth also urged the city to plan ahead for future right-of-way needs as development moves farther toward Round Lake Road.  

Public Works Director Vladimir Simonovski said an earlier corridor study called for four lanes through the central portion of the project and three lanes between Golden Gem and Round Lake Road. 

Williams said the city also needs about nine construction slope easements along adjoining properties. Without them, elevation changes could require retaining walls, adding to the project’s cost. 

After his Aug. 31 meeting, Nesta said he would update the commission so it can determine whether to continue with the existing approach, pursue eminent domain or consider another course. 

“The road is necessary,” Shepard said. “The co-developers recognize it for their projects and for the city’s future growth. It’s important that it get done. The how is the problem.”