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Orange Beach council adopts nine-month moratorium on certain multifamily projects to study infrastructure

Orange Beach City Council · March 18, 2025
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Summary

The Orange Beach City Council adopted a temporary nine-month moratorium on consideration of certain multifamily residential projects to evaluate sewer, stormwater, traffic and emergency-service capacity amid rapid growth. Council and staff said studies will guide zoning, code and capital outlay decisions.

Orange Beach — The City Council on March 18 unanimously adopted a nine-month moratorium on the consideration of certain multifamily residential projects and subdivision applications so staff can study whether existing infrastructure and services can handle projected residential growth.

Mayor Kenning, who led the discussion, said the city has about 15,000 sewer taps and that much of the city’s revenue is tourism-based. "If we evaluate what can be done on the island and what can be north of the island, can be 5,000 plus more units," Kenning said, arguing that an unplanned surge in housing could double sewer connections and strain services without a commensurate increase in lodging and retail tax revenue.

The moratorium directs staff to study stormwater drainage plans and potential fees, feasibility of improved drainage (with attention to Bear Point), environmental capacity and wetland mitigation, traffic movement and options including a Canal Road bypass and additional bridge capacity, wastewater/sewer capacity, and emergency services (ambulances, EMTs, fire and police). The city will also review subdivision regulations, the comprehensive plan, building codes, zoning, and parking concerns.

Jake Arden, a real-estate professional who moved from Colorado Springs, told council he has watched other fast-growing communities impose tap fees and stormwater charges to manage growth. "The tap fees on a new builder, 1 tap fee is now $50,000 for a builder," Arden said, offering that fee structures and stormwater assessments could be options for Orange Beach.

Resident Jimmy Boyd asked whether projects already approved by the planning commission and city council would be affected. Mayor Kenning and staff clarified that projects already through the approval process could proceed.

City staff said they are preparing a request for proposals for the studies and that timing will depend on the consultants selected. The administrator said staff will reach out to neighboring jurisdictions to learn from their consultants.

The moratorium was moved and seconded and adopted after roll-call voting and a brief procedural correction addressing an initial abstention; council proceeded to approve the ordinance to begin the study period.

Councilmembers said the moratorium is intended to give the city time to determine whether code, zoning or capital outlay changes are needed to preserve service levels and keep taxes stable. The council scheduled follow-up work as staff prepares scopes and procurement documents for the studies.