Destin council creates new short-term rental fee tier for small condos, orders vendor RFP
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Summary
City council voted to add a new fee tier for condominiums under 1,500 square feet and directed staff to prepare an RFP for third‑party billing and registration support; council approved a higher initial fee than staff proposed after a 4–3 vote on a substitute motion.
Destin — The City Council on Monday amended its short‑term rental fee schedule to add a new category for condominiums under 1,500 square feet and directed staff to prepare procurement documents for a third‑party vendor to handle billing and monitoring. Council members debated the size of the fee and approved a substitute that sets the new tier at $500 annually for the smallest condos. The ordinance change applies the new condominium tier to registration fees for short‑term rentals; staff also will proceed with a request for proposals to provide billing, collections and compliance services while the city explores whether to use Department of Revenue or clerk of court records to identify units. Why it matters: Councilors said short‑term rentals increase demands on public safety and code enforcement and that the city has limited staff capacity to monitor thousands of additional condominium units. The new fee is intended to help cover program costs and compliance work. Councilman Rodney Bagby proposed the higher $500 starting fee for units 1,499 square feet and below, arguing it is safer to start at a higher amount and reduce later if the city finds the revenue exceeds costs. Councilmember Kevin Schmidt and others opposed $500 as punitive to some owners; the transcript shows the substitute motion passed in the meeting with a narrow majority. City staff estimated about 4,000–5,000 condominium units could be affected and provided a rough revenue estimate consistent with council discussion: at $500 per unit that could produce around $2 million annually before collection costs; at $300 per unit the estimate was closer to $1.5 million. Council direction and next steps: Council also instructed staff to prepare an RFP for third‑party registration and billing services, and to continue to evaluate DOR/Clerk sources and an internal implementation option. Staff will bring back the procurement package and implementation details at the next council meeting. Quotations and attributions are from councilmembers and staff during the Aug. 4 meeting. Ending: The fee schedule now includes a $500 annual tier for condos under 1,500 square feet; the council asked staff to return with the procurement package and additional implementation details for final administrative setup and outreach to affected property owners.
