City of Orange Beach Places Moratorium on New Multi-Family Building

Ken Cooper • March 21, 2025

Building permit pause will allow City to evaluate infrastructure

In the last 26 years Baldwin County has seen over a 65% increase in population growth, according to the Baldwin Economic Development Alliance. The expansion has put a severe strain on the infrastructure of cities within the county. In the past week the City of Fairhope announced a nine month moratorium on various residential multiple occupancy projects and now Orange Beach has made a similar proclamation.


In a decisive move to address the challenges posed by rapid urban development, the Orange Beach City Council has enacted a nine-month moratorium on the approval of multifamily residential projects and subdivisions. This temporary halt aims to provide city officials with the necessary timeframe to conduct comprehensive evaluations of the municipality's infrastructure and services, ensuring they can adequately support anticipated growth.


Scope and Objectives of the Moratorium

During this period, the city plans to undertake extensive studies focusing on critical areas such as stormwater drainage systems, the capacity of emergency services, and traffic safety measures. The overarching goal is to prepare for future developments comprehensively while maintaining the quality of life for residents.


Balancing Growth with Community Well-being

City officials have expressed concerns that, without proactive measures, unchecked development could adversely affect the community's quality of life and strain municipal resources. The potential addition of 5,000 to 7,000 homes may necessitate significant expansions in infrastructure, including schools and utilities. The moratorium reflects a commitment to balancing property rights with the responsibility to maintain living standards and keep taxes low. 


Insights from Other Municipalities

The cities of Gulf Shores and Foley use impact fees and density charts to control sections of their municipalities. They may also charge developers for additional infrastructure requirements. Historically, these guardrails have lasted for longer terms and had much less litigation cost to the governments than moratoriums.


Community Identity

A significant concern among officials and residents is the potential transformation of Orange Beach into an "absentee community," where rising property values could displace long-time residents. Some residents say they relish the increased property value while others wish for lower density and traffic counts.


Only time will tell which solution is correct. Current development property owners may legally challenge parts of the decision and infrastructure budgets are likely to rise. The process has only begun and residents can look forward to contributing their thoughts in future council meetings.


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