Margaritaville Orange Beach Developer Says Heavy Rain, Not a Breach, Sent Sediment Into Portage Creek

ORANGE BEACH, Ala. — The developer of Margaritaville Orange Beach, the resort under construction at The Wharf, says its stormwater system was simply overwhelmed, not breached, after more than 7½ inches of rain fell on the site in 24 hours and sent fine sediment into Portage Creek over the weekend, leaving a murky plume in the water that drew concern from residents.

Photos of the discolored water outside the construction site circulated on social media, where residents labeled it runoff from the project. The company building Margaritaville Resort Orange Beach at The Wharf responded with a news release and interviews, saying crews added new controls in the middle of the storm and that the plume was gone by Monday morning, Oct. 5.

“We do understand the concern of the community and want people to know that we fully take our responsibility,” said Jason Alley, the development principal for the resort’s developer and operator.

Margaritaville developer: ‘We had no breaches’

Alley pushed back on the idea that anything failed at the site.

“To be very clear, we had no breaches. We had no loss of dirt. None of that actually. None of that happened,” Alley said.

According to Alley, the site’s rain gauges recorded more than 7½ inches of rain in a 24-hour period as heavy weather moved across the coast. He said the project has a stormwater management system in place and that it worked exactly as designed. In its release, the company said that system exceeded the recommended controls for the project’s design, but that the volume of rain in such a short time was more than it could handle without some fine material getting through.

“Rain gauges on site recorded more than 7.5 inches of rain in a 24-hour period,” the release said. “Due to the intense amount of rainfall in a short period of time, water moved through the system too quickly for some very fine sediment to settle out before it was discharged.”

That sediment emptied into Portage Creek, creating the discolored plume seen in the photos.

What turbidity is and why the water turned cloudy

Alley said the cloudiness residents saw is known as turbidity — a measure of how much suspended material, such as silt and clay particles, is clouding the water.

Construction sites typically use systems that slow stormwater down and hold it long enough for soil particles to settle to the bottom before the water is released. Heavier, coarser particles like sand drop out quickly. Very fine particles, such as silt and clay, can stay suspended much longer, which is why even a working system can release cloudy water when it is pushed by an unusually large amount of rain.

Alley described that process at the Orange Beach site.

“What happens when you have an event like we had yesterday is that there’s so much water in the system it moves through the system without being able to be below those sediment pieces, and so while most of the bit-larger sediment particles do settle, some of the finer particles get through, which causes the cloudiness of the water,” Alley said.

Crews worked in the storm to slow the water

The developer said crews responded shortly after it received calls about the discolored water. According to the release, workers went to the site while the weather was still bad and added measures to slow water moving through the system so more sediment could settle before discharge.

“Crews went to work right away, in the weather, adding measures that slowed water moving through the system so sediment could settle before discharge,” the release said. “With those measures in place and the rain easing, the plume was no longer visible by Monday morning.”

Less than 24 hours later, the water had returned to normal.

More rain on the way, more silt fencing going in

With more rain in the forecast, Alley said the company is installing additional erosion and sediment controls around the site, including:

• additional silt fencing;
• hay bales;
• rock.

All of those measures are intended to keep sediment from reaching the water. Silt fencing is a fabric barrier staked along the edge of disturbed ground that lets water seep through while trapping soil. Hay bales and rock are commonly used to slow flowing water and filter out sediment before it leaves a site.

“We are part of the community, and we have always taken those extra steps to make sure we go above and beyond. We will continue to do so,” Alley said.

The company’s release struck a similar note: “We’ve always gone beyond what’s required on this site, and we’ll keep adding measures to protect the waters around it.”

ADEM, the city and environmental groups notified

The developer said it has notified the Alabama Department of Environmental Management, the state agency that regulates water quality and stormwater discharges from construction sites in Alabama. The company said it has also been in touch with the City of Orange Beach and with local environmental groups.

“We’ve been in contact with ADEM, the City of Orange Beach and local environmental groups, and we are cooperating fully with any investigation,” the release said.

The company said it is working to make sure the problem does not happen again.

Why Portage Creek matters to residents

Orange Beach is a coastal city in southern Baldwin County whose economy depends heavily on tourism, boating and fishing, and many residents pay close attention to water quality in the area’s creeks, bays and bayous. The Wharf is a large mixed-use entertainment, dining, marina and residential development in the city.

Sediment in waterways is a common concern around construction sites, particularly in low-lying coastal areas where heavy rain can move large volumes of water quickly. Suspended sediment can cloud the water and, depending on how much and how long it lasts, can affect aquatic plants and wildlife. That is why state and local rules generally require construction sites to have erosion and sediment controls in place before and during work.

About the Margaritaville Orange Beach resort

Margaritaville Resort Orange Beach at The Wharf is under construction and slated to open at the end of 2027. The resort is separate from the Villas of Margaritaville at Wharf Landing, a gated residential subdivision in Orange Beach that was recently reported to be nearing final approval.

What we know and what we don’t

What we know:

• Heavy rain over the weekend dropped more than 7.5 inches on the construction site in 24 hours, according to the developer’s rain gauges.
• Fine sediment passed through the site’s stormwater system and into Portage Creek, creating a discolored plume.
• The developer says there was no breach and no loss of dirt, and that the system worked as designed.
• Crews added controls during the storm, and the plume was no longer visible by Monday morning.
• ADEM, the City of Orange Beach and local environmental groups have been contacted, and the company says it is cooperating with any investigation.
• Additional silt fencing, hay bales and rock are being installed ahead of more rain.

What we don’t know yet:

• Whether ADEM or the city will open a formal review, or what any review might find.
• How much sediment reached the creek or how far the plume spread.
• What, if anything, local environmental groups will say about the incident.

What happens next

The developer says it will keep adding measures to protect nearby waters as construction continues toward the resort’s planned late-2027 opening. With more rain expected along the coast, residents are likely to keep a close eye on Portage Creek, and any findings or actions by ADEM or the City of Orange Beach would be the next development to watch.