PINELLAS COUNTY, Fla. — A pair of city commission votes on short-term rentals in Indian Rocks Beach left many residents frustrated Tuesday night.

Commissioners voted to settle with a limited liability company that filed a more than $2.5 million claim against the city. It stems from a 2023 ordinance that regulates how short-term rentals operate.

The settlement will allow a rental property owned by the AP6 LLC to accommodate up to 14 guests instead of the current limit of 10.

Several residents who spoke during public comment said they wanted the city to fight the claim. The commission also approved a first reading of changes that walk back some details of the existing ordinance.

“I’m very disappointed,” said Patti Katz, an Indian Rocks Beach resident. “They did not listen to the community. Everyone in this community has been fighting this for years.”

Changes to the ordinance could include increasing the limit of guests to 12 people.

One woman told commissioners she and her husband now plan to move, they’re so upset.

An attorney for AP6 LLC said his clients bought a home on 20th Avenue in 2021 to rent out to visitors, and the 2023 ordinance regulating short-term rentals lowered that property’s value.

Commissioners spent about two and a half hours listening to public comment and discussing this with each other.

The public overwhelmingly told the board they don’t want this to set a precedent that opens Indian Rocks Beach up to similar legal actions.

One short-term rental owner said the regulations are a bit of a hassle, but she thinks the rules are needed to prevent problem properties.

Residents said they don’t want regulations walked back because they do seem to make a difference.

“We really liked the limitation on the number of renters because some of the houses are smaller,” said resident Hilary King. “Our houses are very close together, at least on our street, and there’s a lot of overflow — not just of people, but of cars spilling out into the street.”

Rental owner Diane Daniel said they need to stand firm.

“I say we should go all the way, despite the fact that we are hurting so much financially, time-wise, in energy, with the hurricanes. I just feel if we walk it back now, we’re never gonna get it back.”

Other potential changes to the ordinance would remove suspension and revocation of a short-term rental license as a possible penalty for owners and clarify life safety requirements when it comes to the fire department.

Tuesday night’s discussion was just a first reading on the ordinance. A second hearing and final vote will have to happen for a decision to be finalized.