An Informational Overview from the Dauphin Island Chamber of Commerce
The Town of Dauphin Island is currently considering amendments to Ordinance 105, the Town’s Short Term Rental (STR) ordinance. The proposal would create two new Short Term Rental Overlay Districts (STRODs), establish license caps in certain residential areas, and update how future STR licenses are issued and managed.
The ordinance has generated questions from residents, property owners, Realtors, property managers, business owners, and visitors. While the ordinance contains detailed legal language, it can be difficult to quickly understand what is changing and what those changes may mean.
The Dauphin Island Chamber of Commerce has prepared this overview to summarize the proposed ordinance in plain language, provide context for why this discussion is important, and encourage members of our community to participate in the public process.Your feedback will help the Chamber better understand the perspectives of its membership and continue constructive conversations regarding the future of Dauphin Island.
Why This Matters
Land use decisions often shape a community for decades.
The proposed amendments to Ordinance 105 will influence future residential development, short term rental availability, property ownership, and the visitor economy. Those decisions also have the potential to affect businesses that serve both residents and visitors.
The Chamber’s mission is to support and strengthen the Dauphin Island business community. Understanding how these proposed changes fit into the island’s long term development is an important part of that mission.
The proposed ordinance remains under consideration.
Public Hearing
Wednesday, August 19, 2026
5:00 PM
Dauphin Island Community Center
The meeting will also be available through Zoom for those unable to attend in person. Written comments may be submitted to Town Clerk Wanda Sandagger for inclusion with the public comments.
How Dauphin Island Became the Community We Know Today
To understand why Ordinance 105 is significant, it helps to understand how the modern Dauphin Island community developed.
During the early 1950s, Gulf Properties Corporation, working alongside civic leaders and the Mobile Area Chamber of Commerce, promoted Dauphin Island as a planned coastal community. Their vision extended beyond residential development. It included tourism, recreation, local businesses, and a community that could support both permanent residents and visitors.
The construction of the Dauphin Island Bridge, completed in 1955, made that vision possible by providing dependable access to the island. As development continued, restaurants, retail businesses, lodging, charter fishing operations, marinas, and other locally owned businesses became part of the island’s economy alongside residential neighborhoods.
Over the following decades, many people who first visited Dauphin Island eventually chose to purchase homes or become full time residents. Tourism and residential life developed together and continue to shape the island today.
This history is relevant because the discussion surrounding Ordinance 105 is about more than short term rentals. It also concerns how Dauphin Island continues to balance residential neighborhoods with the visitor economy that has been part of the island’s development for more than seventy years.
Understanding Ordinance 105
The proposed amendment expands the current Short Term Rental Overlay District system from three districts to five. Rather than applying the same regulations across all residential areas, the proposal establishes different requirements based on the characteristics of each district.
According to the ordinance, the Town’s objectives include:
- Preserving neighborhood character
- Protecting quality of life
- Supporting long term residential housing opportunities
- Providing temporary lodging accommodations
- Considering economic sustainability
- Supporting the Town’s long range planning objectives
The Proposed Overlay Districts
STROD1
East End Residential
License Cap: 90
Minimum Stay: 3 Nights
This district includes much of the eastern residential portion of the island. Short term rentals would continue to be permitted until the district reaches the proposed cap of 90 licensed properties.
STROD2
Cadillac Avenue Area
License Cap: 70
Minimum Stay: 3 Nights
This district includes neighborhoods surrounding Cadillac Avenue. Like STROD1, new licenses would continue to be issued until the district reaches its established cap.
STROD3
West End
License Cap: None
Minimum Stay: 2 Nights
The West End would continue operating under a different framework than the other districts. The proposed ordinance does not establish a numerical cap on STR licenses within STROD3.
STROD4
DeSoto Landing
License Cap: 9
Minimum Stay: 3 Nights*
This newly proposed overlay district currently contains 26 licensed STRs, according to the ordinance.
Existing licensed STRs would be grandfathered. No additional licenses would be issued until the number of active licenses falls below the proposed cap.
* The existing HOA requirement of a seven-night minimum stay would remain in effect because it is more restrictive than the Town’s ordinance.
STROD5
Audubon Place
License Cap: 5
Minimum Stay: 3 Nights
Audubon Place would become the second newly proposed overlay district.
Existing licensed STRs would be grandfathered while future licenses would be limited by the proposed cap.
Grandfathered Licenses
One of the most frequently discussed portions of the ordinance concerns existing licensed STRs within STROD4 and STROD5.
If adopted:
- Existing licensed STRs may continue operating.
- Licenses remain with the current property owner.
- Grandfathered licenses do not transfer with the sale or transfer of the property.
- As ownership changes over time, the number of licensed STRs would gradually decrease until each district reaches its established cap.
The ordinance uses DeSoto Landing as an example. With a proposed cap of nine licenses and twenty six currently licensed STRs, eighteen licenses would need to become inactive before the first new license could be issued within that district.
The Chamber’s Perspective
The Dauphin Island Chamber of Commerce recognizes the significant amount of time and effort all involved parties have invested in reviewing and developing this proposal. Land use planning requires balancing many competing interests, and thoughtful planning takes time, research, and community input.
The proposed creation of STROD4 and STROD5 recognizes that different neighborhoods have developed differently over time and may require different approaches to future planning.
As the organization dedicated to supporting and strengthening Dauphin Island’s business community, the Chamber also recognizes the important role tourism has played in the island’s development since the 1950s. Tourism supports many locally owned businesses, including restaurants, retailers, lodging providers, charter services, contractors, marine businesses, and numerous other small businesses that contribute to the island’s economy.
The Chamber also recognizes that many residents first experienced Dauphin Island as visitors before deciding to make the island their permanent home. Likewise, the island’s long time residents have helped preserve the character and sense of community that continue to make Dauphin Island a unique place to live and visit.
The proposed ordinance represents an effort to balance those long standing relationships while planning for the future. From my perspective as President of the Dauphin Island Chamber of Commerce, I support the creation of STROD4 and STROD5; however, I would like to see the proposed license caps for both districts increased. This reflects my perspective as Chamber President and should not be interpreted as a formal position adopted by the Chamber’s Board of Directors.
As the public review process continues, the Chamber believes it is important that residents, businesses, and property owners have a clear understanding of the proposal and an opportunity to participate in the discussion. Feedback from Chamber members will help us better understand the business community’s perspective and identify the issues our members believe should be considered as the Town moves forward.
Share Your Feedback
The Dauphin Island Chamber of Commerce is seeking feedback from its members as the Town considers the proposed amendments to Ordinance 105.
We invite members to share their thoughts on questions such as:
- Do the proposed overlay districts appropriately reflect the character of each area?
- Are the proposed license caps appropriate?
- Do you have questions or concerns regarding the grandfathering provisions?
- How might these proposed changes affect your business, property, or neighborhood?
- Are there additional considerations the Chamber should communicate as part of future discussions?