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Council approves temporary short-term rental agreement for 4481 B Luke Ave while owners reside there
Summary
Faced with staff miscommunication and a contractor dispute, the council approved a temporary agreement allowing the property owner to rent a connected unit short term while the owner remains on-site; the agreement ends if the owner leaves or fails to register as an STR.
The City of Destin approved a temporary, property-specific agreement on Monday to resolve a dispute over whether a recently completed addition at 4481 B Luke Avenue could be used as a short-term rental (STR) while the owner resides in the principal dwelling.
City staff explained the issue arose after permit reviews and plan changes created conflicting interpretations of whether the unit was an accessory dwelling unit (ADU) or an addition communicating with the principal structure. The applicant told council she had received city emails encouraging the project and later an email saying that staff had made a mistake and short-term rental use was not allowed. The owner said some contractors also failed to communicate permit limits to her.
Councilman Cosmo Destin argued the temporary agreement was a reasonable compromise because it would "go away the moment that they leave the house," allowing the owner to exercise more direct control over parking and local impacts while residing there. Councilman Bagby asked staff to ensure the city would know if the property leaves owner-occupancy or the owner fails to register as an STR; the resulting motion added a condition that the agreement would not be finalized until homestead-exemption status changes were confirmed and that the agreement would terminate on sale, loss of residency or failure to register.
The council approved the measure 4-2. Councilman Braden and another councilor voted no. Staff said the agreement addresses the unique circumstances — including an email error and a contractor who did not keep the homeowner informed — by allowing temporary use while the owner occupies the property. City staff will monitor registration and compliance under the terms set by the council.
Next steps: staff and the city attorney will finalize the agreement language, confirm the homestead-exemption status per council direction, and process any required STR registration and inspections while the owner remains on-site.
