Cocoa Beach commission approves first reading of citywide vacation-rental ordinance amid debate over fees and grandfathering

The Cocoa Beach City Commission voted 3-2 on first reading to adopt Ordinance 16-95, which would change Chapter 26.5 of the city code to regulate vacation rentals citywide rather than only in the RS-1 single-family zoning district.

The ordinance’s passage on first reading came after more than an hour of public comment from rental owners and residents who said the proposed registration fees— which some speakers described as thousands of dollars per unit—would be onerous for small owners and long-standing properties. Several speakers asked that condominiums and other properties already permitted as transient lodging be exempted or grandfathered.

Why it matters: Commissioners framed the item as an effort to bring short-term and vacation rentals into a consistent, enforceable citywide system. Supporters said registration and enforcement are necessary to address noise, parking and repeat nuisance complaints; opponents said the proposed fees and enforcement approach risk punishing compliant owners and harming small, long-term investors.

What the commission decided and why: The ordinance, described by staff as using the state definition of vacation rental and applying related code amendments, advanced on first reading by a 3-2 vote. Commissioners who supported the ordinance said a citywide approach is fairer in principle and will let the city develop an enforcement program; dissenting commissioners said the city should pilot and stabilize enforcement in the RS-1 zone before expanding.“I think we need data metrics of what all the offenders are,” one commissioner said during debate, urging a stepwise approach to expansion.

Public comment and implementation concerns: Dozens of owners and residents spoke. Among them, Marcus Grantham, who identified himself as an owner of three short-term units in Cocoa Beach, told commissioners, “Now that it's 2,500, I get to register our 3 condos, which is $7,500,” and said higher fees made compliance financially painful. Several condo owners said their properties had been operating as transient rentals for decades and had been inspected and self-policed; they urged an exemption for those long-standing operations.

City staff and the fire marshal described differences between transient lodging (hotels/motels) and individually owned vacation rentals, noting different inspection and ownership structures and that some existing properties had previously been permitted as transient under older city practices. Commissioners asked staff and the city attorney to review historical records so the commission could consider targeted grandfathering or clarifying language before second reading.

Fees, staffing and a temporary administrative reprieve: Debate over fees dominated the meeting. Finance staff explained enterprise funds are generally used for utilities and that short-term rental program revenues and costs must be tracked transparently in accordance with state law. Commissioners and members of the public disagreed on the scale of fees needed to cover the program.

To encourage voluntary compliance while the ordinance proceeds, the commission also approved administrative direction—by unanimous vote—to allow registrations submitted since the prior fee change to be treated at the earlier, lower rate and to refund the difference for those who already paid the higher fee. Commissioners passed that administrative direction 5-0; staff said they would process refunds for the small number of recent payers.

Next steps and timeline: Because the body approved only the first reading, the ordinance is not yet codified. Commissioners asked staff to return with exact historical documentation on previously permitted transient properties and with any proposed clarifying amendments for the ordinance’s second reading. The commission indicated it will revisit fee levels and implementation procedures at the next meeting, and several commissioners said they would consider narrower exemptions for properties that were historically permitted as transient lodging.

Votes at a glance (related measures from this meeting) - Ordinance 16-95 (vacation rentals citywide) — first reading passed 3-2 (motion: “Move to approve ordinance 16 95.”; mover/second not specified in the record). Outcome: advanced to second reading. - Resolution 2025-03 (temporary reduced-fee window) — action to table the resolution pending further consideration, passed 3-2 on the motion to table. Later, the commission by unanimous vote directed staff to accept registrations at the prior lower fee and to refund eligible recent payers (administrative direction passed 5-0).