You'll love it. We generally stay at the Bayfront Inn,
www.bayfrontinn.com/. Lovely, older clean motel and prices are reasonable. It's right on the waterfront, about a 10 min walk from Georges St., the main street of Old Town (lots of shopping) and not far from the fort. Restaurants are close and there's a great brewery a block away. If you're planning to stay overnight it would be a good idea to book ahead. 2013 is St. Augustine's 500th anniversary so there will be lots of tourists visiting this year. If you're retired military, the reserve center a block away will renew ID cards upon appointment.