The Fort Walton Beach City Council voted 5-1 on Tuesday to approve $166,860 to demolish Steamboat Landing, the vacant former condominium at 161 Brooks Street, clearing a path for the pending sale of the 0.9-acre Intracoastal Waterway parcel.
- Councilman Payne Walker cast the lone dissenting vote.
Demolition Pros LLC submitted the lowest responsive bid following a June 9 opening. Four bids were received, ranging from $218,310 to $499,688.55, after one submission was deemed non-compliant.
The approved scope covers demolition of the building to the slab, debris removal, interior and exterior pool removal, landscaping, site clearing and sidewalk removal. Dock removal and full slab demolition were presented as add-alternates totaling $51,450 but were not included in the approved funding.
CRA approval and the pending sale
The Community Redevelopment Agency board unanimously approved the base bid earlier the same day. The property was added to the CRA’s Nuisance/Blight Mitigation Program on Feb. 24, after the program was authorized at the Oct. 28, 2025, CRA meeting. The demolition was originally budgeted at $150,000, but CRA Administrator Alisa Burleson said an asbestos survey increased the cost.
CRA staff told the board that the listing agent confirmed the agency’s commitment to demolish directly contributed to the buyer’s decision to move forward.
The property’s MLS listing, which shows a price of $1,950,000 and lists the sale as pending, states that “demolition costs will be covered by the City through the Community Redevelopment Agency’s nuisance-abatement program.”
- City Attorney Jeff Burns confirmed at the council meeting that the demolition was referenced in marketing materials issued for the property.
Council discussion
Growth Management Director Tim Gibson told the council the CRA’s funding can only be used within its statutory purpose of addressing blighted areas.
“The CRA exists to eliminate slum and blight,” Gibson said, adding that incentivizing redevelopment of a vacant downtown property aligns with the agency’s mission and raises the taxable value of the parcel.
Councilman David Schmidt, who also chairs the CRA board, said the project had been discussed at multiple CRA meetings and was driven by concerns about the property’s deteriorating condition and homeless encampments in the area.
- “I’m convinced this property doesn’t go under contract if it’s not demolished,” Schmidt said.
Walker questioned whether public funds should facilitate a private transaction and asked whether the property had received code enforcement notices before being added to the program. Staff said they were not aware of any.
Property Background
According to a partition complaint filed by the Steamboat Landing Condominium Association in Okaloosa County Circuit Court, the property was established in 1983 as a timeshare condominium with 18 units along the Intracoastal Waterway. Hurricane Sally caused significant damage in September 2020 and rendered the property unfit for occupancy, the complaint states.
After insurance-funded repairs, municipal building inspectors identified additional structural damage and refused to allow owners to return, the complaint states. A structural engineer estimated in June 2022 that bringing the property back to code compliance would cost between $1 million and $2 million, according to the complaint, and the association’s insurance coverage had been exhausted.
- Fewer than 75% of unit owners voted to reconstruct at a July 2022 meeting, according to the complaint. The association then filed the partition action against the unit-week owners, asking the court to order a private sale.
The parcel is zoned MX-2 Mixed-Use High and falls within the Downtown Design Overlay District, which allows a 100% impervious surface ratio, according to the property’s MLS listing. The site includes approximately 210 feet of frontage on the Intracoastal Waterway.
One Response
So a private sale will only happen if the city taxpayers cover the cost of demolition? In what world does this make sense? Either the owner(s) or the buyer should be paying for it and the sale price should reflect the cost. Only folks in government can spin this as a good idea for tax dollars.