Property Owner Accuses Orange Beach Margaritaville Resort Developers of Encroachment
The owner of a lot adjacent to the Margaritaville resort under construction in Orange Beach argues that the developer is illegally building on its property easement and should be forced to halt construction or pay $1.4 million. The developer disputes this, claiming the neighboring owner is mistaken about the law. The future of the high-profile resort project now rests with a federal judge in Mobile.
U.S. Magistrate Judge Bradley Murray presided over a nonjury trial in August, and attorneys for both sides have since submitted additional written arguments.
The Margaritaville resort is planned to span over 150 acres on the Intracoastal Waterway, across from The Wharf. It will incorporate residential units, retail, and dining. The developer, Wharf Landing LLC, projects significant tax revenue from the project.
The site, originally envisioned as RiverWalk and later Bama Bayou, faced a halt during the 2008 housing market crash. Safe Harbor Holdings, which owns an adjacent 0.27-acre property, received a reciprocal easement agreement (REA) as part of the approved Bama Bayou development plan, granting them access to the land.
Wharf Landing argues that the easement refers to a specific site plan for Bama Bayou and, since that project never materialized, Safe Harbor's easement rights are no longer valid. Safe Harbor, however, maintains that any development of the surrounding area that deviates from the original Bama Bayou plan constitutes a breach of their easement.