Destin council reduces $618,500 short‑term rental lien to $100,000 after owner cites lack of notice

The City of Destin City Council voted to set a $100,000 settlement for a code‑enforcement lien on a Woodwind Drive property after the buyer said he only learned of the lien in March 2025 when a title company discovered it.

The council's action followed testimony from the buyer, Mike Coe, who told the council he and his wife acquired the property in 2017 and that the property stopped operating as a short‑term rental in November 2018. Coe said the title company first disclosed the lien on March 26, 2025, and that he was surprised to learn of daily fines that had been accruing since mid‑2018.

City Manager Larry Jones explained the history in the council packet: a special magistrate found the property in violation in June 2018 for failure to register as a short‑term rental, set a compliance period and later imposed a $250‑per‑day fine that continued until the owner registered. Jones told the council the city’s records showed the fine had accrued to roughly $618,500 before the owner paid outstanding short‑term rental fees from 2018–2025 (about $6,000) after the agenda was published.

The buyer told the council he and his family had not used the property as a short‑term rental after November 2018 and that renovation work and family occupancy contributed to confusion about the registration status. "A fine of $610,000 for a property that we have in a contract to sell for $640,000 is quite significant," Coe said.

Councilman Bagby initially proposed splitting the difference between staff's recommended 5% reduction and the full lien amount, offering a reduction to $320,000. After extended discussion about whether certified notices were properly handled and whether the property owners actually received the mailed notices, Councilman Destin offered a substitute motion to set the lien at $100,000, to be paid within 90 days or prior to closing. That substitute motion passed.

The council instructed staff to provide the owners with payment instructions and to issue a satisfaction of lien once payment is received so the title company can close the pending sale.

The council discussion included repeated questions about the city’s notice process: staff said certified mail was used in 2018 but that earlier processes did not always attach return‑receipt signature cards; staff also noted changes since 2018, including property posting and software updates planned to improve lien tracking and owner notifications.

The council's action reduced the outstanding lien to $100,000 with a 90‑day payment deadline (or prior to closing) and directed staff to coordinate settlement and recordation.

The council also directed staff to implement improved lien‑tracking and reminder processes with new software (MyGovernmentOnline/MGO) and to examine additional service methods (such as periodic reminders or alternative service methods) so owners are better notified of active liens.