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.

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 now conditionally certify the class, according to Kris Anderson, an attorney for the plaintiffs. Notice of the lawsuit will then be published in a newspaper for 30 days and members of the class will have the opportunity to object or opt out.

Members of the class 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.” No money is being returned to plaintiffs at this point.

The lawsuit will change how impact fees are collected in Gulf Shores, which was the seventh fastest-growing city in Alabama in 2022. Under Alabama law, impact fees 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.

Residents of Baldwin County frequently complain about the rapid pace of development in their areas and the lack of infrastructure to keep up. Impact fees are intended to be used to aid in improving infrastructure.