Orange Beach, Ala. — (OBA) — The Orange Beach Planning Commission has given its approval for a new residential development called Coastal Cottages. The project will bring 136 townhomes to a site just west of the old Foley Beach Express toll booth. Of the 42 acres set aside for the development, one section will remain a conservation area while the rest is planned for the townhomes. City officials say the project will provide more housing options for smaller families hoping to settle in Orange Beach.

The commission’s approval came in mid-August 2025, following a review of the proposal and required public hearings. Coastal Land Properties LLC of Seminary, Mississippi, is behind the project. The developer submitted the plan as a Planned Unit Development, or PUD, which reduces the housing density compared to what would have been legally permitted under the site’s current zoning. The project also received approval for its preliminary plat, allowing the townhomes to be sold individually as fee-simple lots.

The property is zoned General Business, which by right could have allowed more than 400 apartment units to be built. Instead, the developer is moving forward with a plan that represents a 68 percent reduction in density compared to what could have been built with a simple site plan. City officials emphasized that property owners are entitled to develop land under existing zoning rules and regulations, which limits the city’s ability to prevent projects from moving forward if they meet requirements.

Concerns about traffic came up during the process, with some residents questioning whether the nearby roadways can safely handle the added vehicles from the new neighborhood. The Alabama Department of Transportation has stated that congestion alone does not create a traffic hazard. Without safety concerns such as roadway design flaws or accident patterns, traffic increases are not considered grounds for blocking development.

Officials also stressed that the city cannot legally downzone property without risking lawsuits. If a property bought for multi-family use were rezoned for fewer homes, it could significantly lower its value, potentially leaving the city liable. Because of these zoning rules, leaders noted that rejecting projects outright is often not an option if the plans meet legal requirements.

Coastal Cottages will ultimately provide more than 100 new housing opportunities at a lower density than a by-right development would have allowed, something city leaders argue is a preferable outcome compared to hundreds of new apartment units.