Destin buys parking lot after warnings about potential litigation, exorbitant Realtor fee (UPDATED)

Destin City Council voted Monday to buy land for a harbor parking lot for $3.125 million, despite warnings from one of the owners that the vote might lead to “a litigious situation.”

The 2.12 acre parcel is owned by the Clancy Company. City Manager Greg Kisela said negotiations began 15 months ago to buy it for parking, with Realtor Jeanie Zepponi serving as the go-between.

Destin’s harbor district doesn’t have as much parking as the city code requires, and if city plans to bring more tourists to the waterfront succeed, the need for parking will grow. The city’s solution: Three parking garages north of U.S. 98. The Clancy property is the first garage site the city has bought, though the city doesn’t have money to build anything but a parking lot for a while.

Kisela told the council Monday that the Clancy family requested $4 million, but the city had to base its offer on the lower, appraised value, which wasn't that high. He said the city had a signed contract under option, awaiting only the council’s approval.

Michael Clancy, however, asked the council to remove the topic from the agenda so that he could meet with them later about it “so we don't end up in a litigious situation.”

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For a play-by-play from the meeting, click here.

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A letter from Destin attorney John Dowd spells out the details. According to the letter:

•The company vice president, Lauren Clancy, signed the contract without the consent of the president, Sean Clancy, because Sean wouldn’t settle for less than $4 million.
•The city began negotiating through front men without acknowledging its interest in the land.
•Harbor property owner Claude Perry previously offered to arrange a sale of the Clancy land, without accepting a commission; therefore, there was no need to have Zepponi do the work for a fee.

Janelle Eisler, who owns a neighboring property, asked how the city planned to move tourists across U.S. 98 to the harbor without traffic accidents. Eisler also objected that her parking lot next door is being rendered unusable by Mountain Drive redevelopment, because the city will only allow her one driveway instead of the two she has now.

Kisela said that wasn’t relevant to the decision to buy the parking lot site. The council voted 5-0 to make the purchase, with Kelly Windes and Dewey Destin, whose property interests might benefit from the parking lot, abstaining.

The land includes several small cottages at 222 Mountain Drive — including an alleged crack house police raided in 2007 — and commercial lots at 285 and 299 Harbor Boulevard. 285 was the former office of the Dowd Title Group and 299, now unoccupied, was formerly the tattoo studio Destin Ink.

The council also voted to pay Zepponi 5 percent of the price for her work, although Councilor Jim Bagby said that was unreasonable: A 5 percent fee was normal for such a deal, but only when split between the buyer's agent and the seller's agent, not for one person.

“For us to spend $156,200 when all she did was find us a property is too much,” Bagby said, adding that while Zepponi had made the initial contacts, it was Kisela who'd done most of the negotiating.

“She's done a great job, and we need to pay her,” Windes objected. He said the fee wasn’t worth putting the deal at risk for.

Bagby replied that the deal wasn’t at risk, regardless of Zepponi's fee.

“You can beat up a Realtor if you want to,” Windes replied. “I wish I could vote, I’d cancel yours out in a heartbeat.”

Although Windes couldn’t vote on matters concerning the parking lot, City Attorney Jerry Miller said he was free to discuss it.
The council voted 4-1 to pay the 5 percent fee, with Bagby voting no and Windes and Destin abstaining.
Kisela said he expects the deal to close in June.