ST. PETE BEACH - Preserving the historic character of Pass-a-Grille is a good thing for most residents, but for some there are limits - and the Coconut Inn is caught in the cross-hairs of this latest iteration of the city's ongoing development wars.

Joe Caruso bought the deteriorating 84-year-old former 11-unit Leroy Motel a year ago, and refurbished the renamed Coconut Inn, inside and out, to the near universal praise of his neighbors and city officials.

Before Caruso purchased the inn, it had deteriorated to $20-a-night transient lodging frequented by drug users and dealers, Caruso said.

"Nobody complained to the commission when it was a crack house. I don't understand why they are complaining now," Caruso said. "I am literally tearing my hair out over this."

Caruso says he wants to protect his investment - and the ability to redevelop the tourist lodging at any time, not just if it is damaged by a hurricane or fire.

He applied to the city to rezone the property, located at 113 11th Ave., just east of Gulf Way, to Traditional Hotel District.

That district zoning was set up by the city several years ago, and amended in 2008, to allow small tourist lodgings in Pass-a-Grille to rid themselves of nonconforming status so they could rebuild or renovate at any time.

The zoning district also allows up to 20 percent of a building's floor space to be set aside for non-residential uses.

Unlike other tourist lodgings in Pass-A-Grille, the Coconut Inn is located on a side street in the middle of a residential area.

Residents are fearful if this happens at the Coconut Inn, the now quiet, cozy tourist hotel could become a jazz club or public restaurant.

Meanwhile, the city recently issued a stop-work order on a project to repave the Coconut Inn's parking area and install a firepit and two covered gazebo sitting areas.

Caruso's city-issued permit will be revoked if the rezoning is rejected. If approved, the work will be allowed to continue.

The city's attorney said the permit was issued in error since expansion of the tourist use is not allowed under the current residential zoning.

Commissioner Beverly Garnett opposes the rezoning because of resident objections, and suggested Caruso wait until he is ready to rebuild before asking for hotel district designation.

"I hesitate to give carte blanche zoning without a plan," said Vice Mayor Al Halpern.

Commissioner Jim Parent called the decision "damned tough."

Mayor Mike Finnerty pushed for a third meeting to consider formal restrictions on the Coconut Inn zoning.

Caruso offered to sign an agreement with the city that he would not "voluntarily" redevelop the property for five years. He also agreed not to convert any of the property to a restaurant or other ancillary use allowed under the traditional hotel zoning. Any new building would not exceed the surrounding residential building height of 32 feet, he said.

City Manager Mike Bonfield said Tuesday that he will present the commission with a conditional zoning agreement at its Oct. 13 meeting.

If the rezoning is approved in October, the state Department of Community Affairs must approve the accompanying change to the city's land use plan, and then the commission must hold another public hearing and take a second vote on both the land use and the zoning changes.