Fairhope May Issue Permanent Limits on Apartments Amid Development Moratoriums

FAIRHOPE Ala.
By Rick McCann
February 13, 2025

Fairhope city leaders this week decided to halt multiple-unit complex construction for the next nine months and now, they’re also considering ceasing most construction because of the stress being put on the city’s utilities, water and public safety agencies.

Last year the city announced water emergencies as a new well was being drilled. And it wasn’t the first issue with not having enough water for residents and businesses.

The release of a report on the city’s stormwater sewer capabilities is expected next month. Sullivan said the city has a five-year plan to increase capacity by 6 million gallons. She said city officials will have some significant long-term decisions to make that include making upgrades to the existing sewer plant or proceed with building a new one that could cost $100 million or more, and lead to environmental problems.

Tim Ryan, a resident of Fairhope for the past 18 years, said it’s growing pain and he’s confident that the city will figure out the right formula for its steady growth.

The Fairhope Volunteer Fire Department is also seeing a much heavier call volume that reached 1300 calls for service in 2024. In other cities with this volume of calls and a fast-growing population, paid firefighters would be staffing the firehouses.

The Fairhope Police Department have also seen their call volume increase, especially property crimes, vehicle accidents and traffic enforcement.

As previously reported, Fairhope has issued moratoriums on new construction three times in the past nine years but the demand for housing in the city continues to grow and the once quaint town on the bluffs is fast becoming a major city in on our area.

According to Census data, the city’s population of 24,974 residents represents a whopping 63% increase to over 15,326 people who lived in the city in 2010.

City officials confirmed that they are looking into rules and regulations that might put a permanent cap on multi-unit housing.

“We do want to take further actions, so we don’t continue taking these temporary moratoriums,” said Councilman Jack Burrell.

The latest moratorium will last through November, and it puts a halt to the following:

Multiple occupancy project applications that contain three or more residential units.

Subdivision applications containing three or more residential lots smaller than 10,500 square feet per lot.

A parking plan is also expected to come out soon. A parking predicament in the city’s downtown area is jeopardizing hotel projects, including one at the corner of Fairhope Avenue and Church Street.

“We’ve heard people complain about growth,” Sullivan said. “This (moratorium) is one more tool we have in our toolbox to try and slow it down and take a pause. I hope people recognize that and appreciate that we are listening to constituents.”

The freeze extends past the city’s municipal elections on Aug. 26. Neither Sullivan nor Burrell said the decisions were political.

“We have attorneys advising us on this stuff,” Burrell said. “It was suggested maybe six months, and I remember saying that ‘I don’t think we are solving our problems in six months. Can we compromise and do nine months?’ It’s nothing more and nothing less than that.”

Sullivan said the freeze does not affect any development that occurs within the fast-growing unincorporated areas near Fairhope, which are regulated and overseen by the Baldwin County Commission.

“We have so many things on the book, that you’re going to still see construction,” she said. “You’re still going to see growth. This doesn’t harm everything altogether. These decisions are not easy.”

Sullivan also said the time frame for the pause will give city staff an opportunity to look at areas to update the city’s zoning code and subdivision guidelines.

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