New Court Date Set For University Beach Bond Validation Hearing

NORTHPORT, AL — A rescheduled hearing to determine whether a proposed $59.7 million bond issue for the University Beach Improvement District should be validated by the court has been set for next month.

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As Patch previously reported, the original hearing date set for earlier this month was continued, with the new hearing on Nov. 13 scheduled for 9 a.m. in the Tuscaloosa County Courthouse.

The order directs taxpayers and citizens of the City of Northport to appear and show cause as to why the court should not approve and confirm the bond issuance.

ALSO READ: Texas City Issues Notice Of Default For Project Associated With University Beach Developer

The improvement district is asking Circuit Court Judge Daniel Pruet to validate $59.7 million in Special Assessment Revenue Bonds to finance public infrastructure tied to the proposed University Beach lagoon resort in Northport.

The civil filing asks the court to validate the legality of the bonds and related financing documents.
As Patch previously reported, the three-member district board — Texas developers Kent Donahue and John Hughes, and investor Katie Le — approved the bond plan earlier this summer.

The complaint, originally filed Aug. 29, seeks a show-cause hearing and names “the taxpayers and citizens of the City of Northport” as defendants, a common step in bond-validation actions.

According to the original filing, bonds would fund road, water, wastewater and stormwater projects at the site.

The bonds would be repaid through special assessments on property within the district, not taxes, with assessments also covering operations and project costs. University Beach LLC agreed to cover costs exceeding bond proceeds.

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

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

City leaders have separately committed $22.65 million for initial area infrastructure improvements near Harper Road.

Developers say the controversial project is expected to attract about $350 million in private investment.

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