Developers Likely To Head Up University Beach Improvement District Board Of Directors

NORTHPORT, AL — The Northport City Council on Monday will vote on the formation of a University Beach Improvement District and will consider the appointment of its board of directors, which would consist of three developers and investors on the project.

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As Patch previously reported, the City Council had already agreed to eventually create the University Beach Improvement District, with those behind the development saying they expect it to bring in $350 million of capital investment once all of the phases are complete.

It's a number that's drawn sharp skepticism in the community since it first made headlines, prompting many to also vocally oppose the location of the proposed lagoon-style resort — a mostly quiet residential area in the vicinity of Harper Road and McFarland Boulevard.

The developers must secure $63 million of outside investment for Phase I of the project to meet the terms of the public-private partnership agreement, with the City of Northport agreeing to commit no more than $20 million — mostly for infrastructure and site work.

The city is also the defendant in an ongoing civil lawsuit by a private citizen over access to public records, namely environmental and financial feasibility studies conducted by the city.

ALSO READ: The True And Terrible Saga Of The Northport 'Water Park'

As for the next big step in the progression of the controversial project, the Northport City Council will consider three appointees to serve on the Board of Directors for the Improvement District, all of whom are closely involved on the developer side of the project: Texas developers Kent Donahue and John Hughes, along with investor Katie Le of San Marcos, California.

The creation of the Improvement District provides the developers with considerable latitude to build out what could in effect be viewed as a city within a city — not unlike the Reedy Creek Improvement District first created as the governing jurisdiction and special tax district for the Disney World Resort in Florida.

Here's a look at the state law setting the regulations for Improvement Districts.

If this is approved, the City Council will then have to vote at a later date on the formation of a Cooperative District that be tasked with managing the city's flow of sales and lodging taxes for the property, with the agreement providing the developer up to $61,058,171 or paid out until the 30-year term established in the agreement is reached, whichever comes first.

This Cooperative District would also have a Board of Directors that would be appointed by the Northport City Council.

Monday's regular City Council meeting is set for 5:30 p.m. at Northport City Hall.

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