Hearing Date Set For Judge To Consider $59M University Beach Bond Issuance

NORTHPORT, AL — A hearing date has been set for Oct. 14 in Tuscaloosa County Circuit Court for a judge to consider the University Beach Improvement District’s request for validation of nearly $60 million in bonds to finance infrastructure for the controversial University Beach lagoon resort project.

Click here to subscribe to our free daily newsletter and breaking news alerts.

Patch previously reported that the complaint, filed Aug. 29, asks the court to confirm the legality of $59.7 million in Special Assessment Revenue Bonds that the district’s three-person board approved earlier this summer.

The bonds would fund road, water, wastewater, stormwater and other infrastructure at the University Beach project site, with repayment coming from special assessments on property within the district rather than taxes.

As Patch previously reported, developers insist that the project will bring in $350 million in private investment to the city and will represent a major boon for the local economy.

The city has already committed $22.65 million for the development — money that city leaders have said will primarily be used for the initial infrastructure improvements in the area of Harper Road.

The University Beach Improvement District board includes Texas developers Kent Donahue and John Hughes, along with San Marcos, California investor Katie Le.

The board is tasked with financing and maintaining public infrastructure tied to the project.

ALSO READ: University Beach Improvement District Board Manager Has Long History Of Regulatory Violations

The lawsuit names the taxpayers and citizens of Northport as defendants, a common legal step in bond validation cases.

Residents are ordered to show cause at the Oct. 14 hearing why the bonds should not be validated.

The bonds, labeled Series 2025, would carry interest rates of up to 7.5% and mature no later than November 2055.

Developers have said the $350 million resort will deliver a major economic boost to Northport, while the city has already committed $22.65 million for infrastructure improvements along Harper Road.

The court hearing in October will take place at 4 p.m. in the Seventh Floor Courtroom of the Tuscaloosa County Courthouse.

Have a news tip or suggestion on how I can improve Tuscaloosa Patch? Maybe you're interested in having your business become one of the latest sponsors for Tuscaloosa Patch? Email all inquiries to me at ryan.phillips@patch.com