East of I-95 & CR 4009, the road curves northeast again as it runs along residential areas along the Tomoka River, until it curves east before crossing over a bridge over one of its tributaries, just west of the intersection of State Road 5A (North and South Nova Road). The road makes one last left curve at Old Tomoka Avenue before approaching the grade crossing of the Florida East Coast Railroad main line, and then intersects with US 1 (North and South Yonge Street). The route continues, but the divider ends as SR 40 comes in close proximity to Ormond Beach City Hall on the southwest corner of Granada Boulevard and Beach Street(CR 4011). From there, SR 40 is overlapped by the Ormond Scenic Loop and Trail, where the divider begins again on the Granada Bridge over the Halifax River, and immediately intersects John Anderson Drive(CR 2803), where one leg of the scenic route heads north and West Granada Boulevard becomes East Granda Boulevard, before finally terminating at State Road A1A. The other leg of the Ormond Beach Scenic Loop heads north on SR A1A. Despite the fact that SR 40 terminates at SR A1A, East Granada Boulevard continues as a beach access road.