FLA Beach Town Rejects STR Owner’s Lawsuit

Reader-submitted content. The original story is by Jeff Rosenfield of the Tampa Bay Times.

INDIAN ROCKS BEACH — City commissioners voted 4-1 on Feb. 27 to fight a lawsuit claiming the city’s short-term rental ordinance has infringed on a company’s property rights and cost it millions of dollars.

As dozens of concerned residents filed past vacationing families headed to and from the beach, they found the lone item on the agenda in the Holiday Inn Harbourside’s Sandpiper Room was a discussion of a settlement of the Bert Harris Private Property Rights Protection Act claim as well as a federal lawsuit filed against the city by AP6, a limited liability company that owns a vacation rental property at 455 20th Ave. that is at the center of the ongoing dispute.

The claim stemmed from the city’s 2023 ordinance that limited vacation rental occupancy to a maximum of 10 guests, restrictions that “have inordinately burdened AP6’s private property rights,” leading to “objective economic loss to the fair market value of the property,” according to official court documents.

The suit, one of at least seven pending against the city, states the ordinance has led to a $2.65 million economic loss to the fair market value of the property.

Despite the meeting being held early in the morning, dozens of residents came prepared to again voice their displeasure with the proliferation of short-term rentals, particularly large-scale “party houses,” in the once quaint and quiet residential neighborhoods on the east side of Gulf Boulevard.

“Your job as a commissioner is to represent your constituents,” Brian Hubbard said, a common refrain repeated by several speakers during the hourlong public comments portion of the two-hour session.

“I’m not against short-term rentals,” Patti Katz said. “I am against people that do not follow regulations, commissioners that don’t listen to residents, and people who want to sue our lovely city.”

John Pfanstiehl, who has tracked the issue from Indian Rocks Beach to Tallahassee since its inception, said: “You have to be absolutely blind to think it’s just a few people against having short-term rentals in their neighborhoods.”

When it came time for commissioners to vote, the board voted 4-1 in favor of fighting the Bert Harris claim and the lawsuit.

“We need to have a judge make a decision and move on to other city business,” Commissioner John Bigelow said in explaining the reason behind his motion to reject the proposed settlement. “We need to do something about this.”

After Vice Mayor Janet Wilson seconded the motion, Commissioners Hope Wyant and Jude Bond followed with yes votes, while Mayor Denise Houseberg cast the lone dissenting vote.

“I just felt like if we fight this one, we’re going to spend the next year fighting lawsuits,” Houseberg said, noting with the post-storm recovery efforts still taking place, she “doesn’t believe it’s in the best interest of the city and the residents” to continue spending taxpayers’ dollars fighting lawsuits.

As the two sides prepare to go back to mediation this month in advance of a potential court date, residents expressed relief that their message was finally received by city officials.