Chelsea temporarily suspends future residential rental developments
Published 1:49 pm Thursday, June 5, 2025
- The Chelsea City Council approved a resolution to enact a moratorium on any new residential rental developments and units during a regularly scheduled council meeting on Tuesday, June 3 at Chelsea City Hall. (Reporter photo/Tyler Raley)
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By TYLER RALEY | Staff Writer
CHELSEA – The city of Chelsea ultimately came to the conclusion of approving a resolution that enacted a one-year moratorium on any new residential rental developments and residential rental units.
During a regularly scheduled Chelsea City Council meeting on Tuesday, June 3, the council unanimously voted to temporarily prohibit any activity that has to do with new residential rental properties being developed within city limits. According to the resolution, the moratorium will also provide the city additional time to assess the current zoning ordinance and evaluate any potential modifications.
The moratorium is on the issuance of both building permits for residential rental developments and residential rental units, as well as any new business licenses for the construction of both residential rental developments and units.
The vote came about following the removal of plans for a large residential development in Chelsea, which was set to be a resort-style community populated entirely by rental homes.
The development, Reserve Chelsea, was pitched as a gated community and was set to contain 284 homes that would be part of a luxury community with a number of amenities such as a pool, walking trails, a pickleball court and a clubhouse.
The homes were going to be split evenly between 60-foot and 75-foot lots, all situated on 114.5 acres of land, with approximately 30 acres of land containing undisturbed trees and walking trails. The proposed rent for any particular property was estimated to be between $2,500 and $3,000.
During a regularly scheduled council meeting on March 18, residents voiced their concerns to both the Chelsea City Council and Tripp Norwood of Reserve Chelsea LLC, posing questions on a number of subjects that ranged from environmental effects to the changes the development would have on school population sizes.
“(Reserve Chelsea) came to the council for a 280-home rental community on (U.S.) Highway 11,” said Tony Picklesimer, mayor of the city of Chelsea. “Our citizens just overwhelmingly reported and told us during both open hearings (at Chelsea City Hall) and emails and phone calls that the residents of Chelsea really do not want rental homes in our city.”
As a result, Norwood extracted the plan from moving any further in the process, which partially led to the presentation of the moratorium. This effectively blocks anyone from obtaining a rental license for one year for developing rental property in the city of Chelsea.
“We are very proud of our home ownership rate here in Chelsea,” Picklesimer said. “We want the people that live in our city to invest and grow roots and stay in our city, and it’s just a proven fact that home owners take more pride in their property and take more pride in their city than renters do… We want to protect our city. The number one job of the mayor of Chelsea, Alabama is to protect his citizens, and I feel like this moratorium is a good step towards protecting the integrity of our community and its home ownership.”
In addition to the moratorium being enacted, the Chelsea City Council also approved a resolution authorizing the mayor to enter an agreement for RPC Greater Birmingham to perform an APPLE study for the potential of adding a greenway along Yellowleaf Creek.
Keith Strickland, an engineering representative of Goodwyn Mills and Cawood explained to the council during the pre-council meeting that the purpose of the APPLE study was to test the feasibility of the project upfront before any possible preliminary engineering took place. The study is estimated to take anywhere between six and eight months to complete.
The council also approved a resolution to accept a quote for a valley gutter to improve drainage on Stanley Drive.
According to Councilmember Scott Weygand, there has been parts of the road along Stanley Drive washed out due to water rushing down from Chelsea Fire and Rescue Station 31 and the Station 31 Kitchen. The resolution will fill the holes back in with a curb and gutter.
In addition to that business, the council also approved resolutions to close and reopen a CD at Renasant Bank, as well as execute an agreement for managed technology services from Lantech Solutions LLC.