Gulf Shores Settlement To Change Impact Fees

A settlement has been reached in a class action lawsuit alleging that the City of Gulf Shores was improperly charging property developers and misspending impact fees in the city, AL.com reports. Last week, both the plaintiffs and defendants in Wymer v. Gulf Shores filed a motion in Baldwin County Circuit Court for approval of the settlement and class. The court will conditionally certify the class, according to Kris Anderson of Yates Anderson, an attorney for the plaintiffs, and members of the class will have the opportunity to object or opt out. Members are defined as “All persons who were charged an impact fee on new development by the City of Gulf Shores, Alabama pursuant to Ordinance No. 1480 since May 14, 2007 and Ordinance No. 1538 since March 23, 2009.” The lawsuit will change how impact fees are collected in Gulf Shores. Under Alabama law, they are to be capped at 1% of the assessed market value of the completed development, including the value of the land. The fees are also only to be used for public improvements needed to accommodate a new development. As part of the settlement, the city is to create a $3.3-million fund for capital improvements. At least $1 million is to go to Gulf Shores City Schools, and the rest is to go toward widening County Road 6 and Highway 59 and adding public beach parking. The city is also to work with the attorneys for the class, Anderson and Grant Blackburn of Blackburn & Connor in Bay Minette, to restructure its impact fee ordinance. The city is also expected to hire an urban planner approved by the plaintiff’s attorneys to help with the changes. The circuit court will have final approval over the city’s new ordinance, which must be in place 90 days from the court’s order, Anderson says.