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Pelham staff recommends revoking Seagull/Segal Select’s license after audit finds long-term, apartment-style occupancy; residents warn of displacement
Summary
City staff presented audit data showing extensive long-term stays and apartment-style marketing at the property operating at 1902 US Highway 31 and recommended revocation of its hotel license; the business’ attorney challenged procedure and residents — including domestic violence survivors — said revocation would displace vulnerable people. The council held the hearing and took no final vote on revocation in this meeting.
Assistant City Manager Justin Smith told the Pelham City Council on April 23 that an audit of the property licensed as a hotel at 1902 US Highway 31 (identified in city materials as Seagull/Segal Select Birmingham 2) found evidence the operation has large numbers of non‑transient occupants and marketing consistent with residential occupancy.
"Some guests and residents have appeared to stay as long as 14 years," the city’s finance presentation said, and staff reported that non‑transient occupancy accounted for a majority of revenue in the audit period. Finance director Jamie Wagner told the council the audit showed that occupants staying more than 180 consecutive days generated 68% of total revenue for a recent month; the presentation cited an average non‑transient stay of roughly 1,137 days and a maximum recorded stay of 5,191 days per the audit exhibits provided to the council.
The city’s legal and planning position, as explained by the city attorney and staff, is that the property is licensed under NAICS 72111 (hotels and motels for transient lodging) but that the business appears to be marketing and operating an additional residential…
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