FOLEY — Local and state officials gathered in Foley on Wednesday, May 13, to break ground on a new workforce housing project called the Grove at Foley Beach.

The project is a private apartment complex located just a couple turns away from Foley Beach Express, providing affordable housing for workers such as teachers, nurses and first responders. It includes 180 units, and leaders expect it to generate nearly $26 million in economic impact, support approximately 225 jobs and produce an estimated $10 million in state and local tax revenue.

The project is privately funded, costing around $60 million. It uses state tax credits created under the Working for Alabama legislative package, which was approved in 2024 to increase access to work through a combination of programs and tax credits. Officials say the tax credits make workforce housing projects such as this one financially viable without having to rely on grants or government subsidies.

"Smart tax credits are the engine behind projects like these, and the Working for Alabama tax credits were specifically designed to attract private dollars into Alabama's economic hotspot, and Baldwin County is undeniably one of those economic hotspots with 8,000 people moving here every single year," state Sen. Chris Elliot, R-32, said. "This groundbreaking is proof that the strategy is working exactly as intended in the private sector."

A group of partners, including the Hall Group, the project's developer, along with investor PNC Bank are working to build the complex. The Alabama Housing Finance Authority will monitor the project to ensure tenants remain qualified.

"Foley is experiencing a remarkable moment of growth and long-term economic investment," Mayor Ralph Hellmich said in a statement. "Private industry wants to invest in Foley and South Alabama, and that is why we need projects that promote smart, planned growth in our city."

The Grove at Foley Beach is the second project in a new wave of residential developments within the state of Alabama, with officials previously holding a groundbreaking in February for another project located in Athens. Officials expect Foley's development to take between 18 to 24 months to complete.