How an $83 million state land purchase ignited a political battle between Destin and the Okaloosa County Board of County Commissioners
A fight for who will control an $83 million spit of land the State of Florida purchased last year from a real estate magnate and convicted briber has just escalated. The Destin City Council narrowly approved a decision to allow the City Attorney to initiate a Chapter 164 conflict resolution mediation path between the City and the Okaloosa Board of County Commissioners. This measure is a last-ditch attempt to stop the two governments from going to court and footing the bill for taxpayers.
But the detractors of the decision on the council say this is an escalation that ends in defeat no matter what for the city’s residents.
What happened
Ire at Destin Council meetings centered on its latest political storm: Free parking.
Commissioners wanted it in exchange for a good word in state leaders’ ears on behalf of Destin running a lease on Norreigo Point. But now, some on the city council believe the idea of free parking for Okaloosa County residents throughout the city was a bad-faith proposal. That slim majority decided to move forward with mediation. The three-member minority wanted to drop the city’s potential objections, take the county’s deal and hope their leverage in Tallahassee was enough to ensure the city gets to have the final say-so on who makes decisions about improvements (or lack thereof) on the land.
The slight majority says they’ve lost faith in the commission. They say the city is on its own and the commission’s interests are in direct opposition to the city’s.
What does everyone want?
The animus surrounding parking initiated a proxy battle over something much bigger: Who controls one of the last remaining pieces of undeveloped waterfront on Holiday Isle?
The county proposed more development, like “marina-related concepts,” additional public access and “expanded recreational amenities” aimed at benefiting all residents of Okaloosa County as well as tourists.
Destin’s slim majority wants, for the most part, the land to change very little from the sandy, flat expanse with little more development than the lifeguard tower already there.
Destin’s attorney, Kimberly Kopp, told council members the commission wants a trade: free parking in Destin for all county residents, in exchange for a good word in front of state leaders who will ultimately decide who ends up running state-owned Norriego Point. Right now, it’s unclear whether or not the county or the city will end up with the management obligation.
Timeline and Context
In 2025, the State of Florida purchased Norriego Point for $83 million, a price that immediately drew scrutiny from residents and local officials because it was significantly higher than the property’s assessed value.
The property was previously owned by companies owned by Bobby Guidry. Questions surrounding appraisals, valuation of development rights, and the negotiations behind the purchase fueled criticism from residents and local officials.
Campaign finance records also show that Guidry’s companies contributed to the 2024 election campaign of Okaloosa County Commissioners Paul Mixon and Drew Palmer. Neither Commissioner has been accused of wrongdoing related to these contributions.
The purchase controversy and the current lease dispute are separate issues; the history of the acquisition continues to influence how some residents and officials view the debate over who should manage the property.
Destin attorney Kopp noted a county commissioner requested an advisory opinion on managing Norreigo Point, despite what Councilman Dewey Destin said was a promise from Commissioner Drew Palmer to assist Destin in the acquisition of the management rights for the Norreigo Point land.
Kopp argued that the request demonstrated that the disagreement was no longer simply about negotiating a lease. It had become a legal dispute over the authority of local government versus the state.
Ultimately, whether the commission puts in a good word or not, the DEP decides who receives the lease or management agreement.
The Stakes
The property sits at the center of one of Destin’s most valuable areas: Holiday Isle. While the city has grown rapidly since its incorporation in 1984, residents and officials have repeatedly debated how much additional development the community can absorb.
Supporters of Destin managing the property argue their goal is to restrict wanton development.
For county officials, discussions have included broader recreational possibilities, including potential ‘marina-related concepts’. County officials have argued that Norriego Point should be viewed as a regional asset, not solely a city amenity. Their position is that the property could provide expanded recreational opportunities for residents throughout Okaloosa County. City officials worry it could fundamentally change the character of the property.
A Council Divided?
Councilmembers Chatam Morgan, Dewey Destin, and John Stevens argued that continued negotiations gave the city the best chance of securing the lease.
Councilman Chatam Morgan argued the financial hit of making parking free for county residents was relatively small. Ultimately, the chance to control Norriego Point was worth the revenue loss.
“If we are trying to secure an $83 million piece of property, losing roughly $100,000 a year is worth it,” he said.
He also mentions the county’s influence with state officials and going to “war” with them may make it less likely that Destin gets control.
“If my number one priority is the city obtaining the lease to this park,” he argued, “then the county’s ability to persuade the state to give us a lease is in fact leverage.”
Councilman Dewey Destin said, “We certainly want the opportunity to have Mr. Palmer live up to his word that he gave us in our negotiations with Mr. Jones and me that if we agreed to work with the parking and allow the county residents to park citywide, that he would put it on the agenda.”
Commissioner Destin frames the parking agreement as a test of Commissioner Palmer’s intentions.
“I want to give him an opportunity to keep his word or not and we’ll see,” he said.
Destin wasn’t opposed to the conflict resolution Chapter 164; instead, he wanted the council to allow Palmer to act on his promise.
Council members Rodney Braden, Kevin Schmidt, Sandy Trammell and Teresa Hebert argued that months of negotiations had eroded trust and that a formal dispute resolution process was necessary.
“We have been negotiating for months. Why would this suddenly solve everything?” Councilman Rodney Braden said.
Palmer Speaks
Okaloosa County Commissioner Drew Palmer made an appearance at the July 15 special meeting, choosing to address the Destin City Council during the first public comment period.
Palmer addressed concerns raised during the dispute about whether an ethics complaint could be filed against him.
“My name is Drew Palmer. I am the County Commissioner for District Five, which includes the City of Destin. I’m here tonight to first of all tell you that my position is unchanged. I do still hope that we can work together on this matter.”
He elaborated further about his concerns regarding possible punitive action.
“City Council, if you believe that an ethics violation has occurred, you have a moral obligation as elected officials representing the public to file a formal complaint. What you must not do is use the threat of an administrative process to coerce a fellow elected official in the administration of their duties, or to extract leverage for your own position. If you believe there is cause, file the complaint. I’m entirely unmoved by the threat.”
He walked out of the chambers without waiting for a reply, which Council Schmidt gave anyway. “The first time he stepped in this chamber in how many months to try to come talk to us and work with us, he’s going to have a 45-second conversation about ‘stop threatening me,’” Schmidt added, “I just can’t support negotiating right now again with people that are treating us like this over the past seven to 10 months.”
The question now is whether Chapter 164 conflict resolution can repair a relationship that has deteriorated over months of disagreement, or whether Norriego Point will become the latest example of a broader fight over who gets to shape Destin’s future.
