Councilors ponder if Destin developers deserve a break (UPDATED)

If Destin gave developers more time to start building, would that be a fair deal or a huge mistake?

City rules require developers start building within a year after the City Council approves their development order, and limits how long they can go without further construction. Monday, the council directed staff to research the pros and cons of adding an extra year, so that developers who can’t afford to build now because of the recession won’t see their permits expire.

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For a play-by-play of Monday's meeting, click here.

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Setting an expiration date on development orders prevents developers from applying for a permit far ahead of construction so that they’ll be grandfathered in when the city revises its development rules. Permit holders are already allowed a one year extension if they need it.

City Councilor Jim Bagby said granting a third year would be better than the "silly games" developers play now.

"They'll clear-cut every tree, put up a black sand fence or whatever and sit back for another nine months or a year because they’re ‘improving the property,’ ” he said. “Then they’ll put in a parking lot or a light bulb.”

Councilor Sam Seevers said that it was precisely because developers were “very creative” about prolonging their development orders without building that “red flags kind of popped up” for her on the proposal.

Bagby said his real concern was small businesses and homes that needed a minor development order to add on a room or renovate the building: “If we could legally carve out only minor development orders I would, but I don’t think we can.”

Councilors and city staff raised several questions: Would the extension be automatic, or only upon request? Would it apply only to development orders already issued or to future ones as well?

Community Development Director Ken Gallander said there are 20 projects in Destin that are currently under a development order, but while several are minor  development orders, all of them are large, substantial projects rather than small businesses. He said 11 of the 20 could benefit from an extension, but none of them needed one so urgently that the council had to make an immediate decision.

Gallander told The Log the 11 include Beach Crystal Condominiums, Beach Pointe Condominiums, a Denny’s restaurant, Harbor Reflections, Le Melange, Norriego Pointe, Safe Harbor Estates, Village Inn Development and West Harbor.

The council voted 5-1 to have staff research the options and report back. Kelly Windes abstained because he’s acting as the agent for Destin Fishing Fleet Marina’s proposed development and Sandy Trammell voted no.

Trammell said an added extension could result in cases “where we end up building something that doesn’t meet the city’s current codes and we wonder why.”

Bagby said that if a property owner wanted to build a house but couldn’t because of credit or cash flow problems, the council would probably grant an extension, so commercial builders should be treated the same.

“I hope we’d do that for any citizen in this town,” Bagby said. “If we pass this we’ll get a lot of flak, but there’s a time to do the fair and right thing.”