Who Owns Lake Martin Alabama and Why It Matters For Buyers or Sellers

In this blog, I’m going to go over the history of Lake Martin, who owns Lake Martin and how that might affect you as a buyer or seller on the lake.

Who Owns Lake Martin?

The short answer is really two companies which are Russell Lands and Alabama Power. They own the land around Lake Martin. 

To start the history lesson part of this blog, let’s talk about the Martin Dam. This dam is located on the south side of the lake, and it dammed what was originally the Tallapoosa River in 1926. It was done to get a hydroelectric dam. Alabama Power, which is now owned by Southern Company, owns the hydroelectric dam. 

When Alabama Power made the dam, they bought up all of the dirt that was under 491 feet of sea level. They bought up all that dirt and then flooded it. The number one thing to know is they own the dirt that is under the 491 feet of sea level on Lake Martin, but they also own a ton of land around Lake Martin as well. 

Imagine yourself back in 1920. You’re a company like Alabama Power, and you’re trying to get damming rights for the Tallapoosa River. So, they come to town from the big city, and they realize that there is already a hydroelectric dam on the Tallapoosa River in Alex City. This dam is owned by a guy named Benjamin Russell. 

Benjamin Russell owned a textile and apparel company called Russell. Back then, Alex City was a young mill town where everybody either worked for the mill or their cousin worked for the mill. 

Benjamin Russell made a hydroelectric dam to draw power and got himself electricity to run his plants in Alex City. When big city lawyers came from Birmingham and wanted to dam the Tallapoosa, they bought damming rights from Benjamin Russell. Therefore, they ended up swapping him damming rights for a ton of land.

How it Affects Real Estate?

Here’s how it happened with the damming rights and how it affected real estate. Benjamin Russell already owned a place called Russell Farms, and then Alabama Power gave him a bunch of land around the lake. 

If you look at a map of Lake Martin, you can find Highway 63. The Russell corridor, if you will, is going to be in the middle of the lake. Driving down Hwy 63, you will get to Kowaliga. It’s all in that area. 

You’ll find Willow Point, Willow Glynn, The Ridge, Windover, Windermere, and The Heritage all right there. Look across the bridge in Trillium, and you will see all Russell cabins. Therefore, in general, out on the western extremes and eastern extremes was Alabama Power land. 

Why Does it Matter to Real Estate?

It matters a lot, because if you are in a Russell Lands neighborhood you’re going to know that they have covenants in their neighborhoods that are similar throughout the whole lake. For instance, you can’t have a covered dock. Therefore, if you want a covered dock, then you don’t need to buy in there. You also can’t do things like rent your house short term. 

That is why the history might affect whether you’re going to buy or sell. If you’re selling, then you need to know what sort of buyer is going to buy your house. 

How does that apply to Alabama Power stuff? They have sold two or three smaller neighborhoods that are high covenant neighborhoods. But, Alabama Power used to lease lots back in the 70s and 80s. You would own the bricks and sticks, but you would pay a lease on the dirt to Alabama Power. 

In the 90s, they started to kind of sell those lots back to the homeowners. Now, leased lots are pretty rare. I sold one leased lot house two years ago, and that was the first one I had sold in two years. So, they used to be 10% of the market until 2005, but they are now less than a third of a percent of the market. 

What Does That Mean For You? 

The covenants for Alabama Power homes are different as well. You can have a covered dock, but they have covenants. You can’t split the lot, you can’t have more than one house, and you can’t have a commercial business. 

We see this a lot on the upswings. You will see a little cabin on a big, nice lot. Someone might say they are going to buy that and will split that up with three houses there. Well, you can’t because that’s a former Alabama Power lot. So, that’s how the history of the lake affects real estate.

Areas Not Owned by Russell Lands & Alabama Power

Are there any areas on the lake that aren’t owned by either Russell Lands or Alabama Power? The answer is yes, but it is rare. The Young’s Island area is one of those very rare exceptions of some appreciable land. 

Also, you might occasionally run into a 50 ft lot here or there that wasn’t originally owned by them, and so it’s unrestricted. Unrestricted means that the covenants of either Alabama Power or Russell Lands don’t apply. 

Like I’ve said, it’s very very rare. If you run into something that a realtor says is unrestricted I always advise you to verify it. A smart buyer and seller runs the covenants on their stuff to make sure they know what they’re doing. I say seller, because it applies to sellers too. 

I have a seller coming up now that needed to get a survey. We looked at what they were wanting to sell, and my first advice was we need to get a survey. This is because we weren’t sure of what covenants applied or where the lot lines were. Therefore, this type of history affects a home sale too. 

Real Estate Contact

I have gotten that question a lot of who owns Lake Martin. So, I hope I’ve helped. If you would like to hear more on this topic, then please visit my YouTube page. If I could be an agent for you, then give me a call at the number on the top of this page. You can also text me, send me an email, or use our Contact Page. Let’s see if I can help you out.

If you would like to read more blogs like this one, then visit the links listed below:

Home Inspection Expert Tips at Lake Martin Alabama

Property Taxes in Lake Martin Alabama

Buyer’s Agreement on Lake Martin