Tuscaloosa County Circuit Judge Validates $59.7M Bond Package For University Beach

TUSCALOOSA, AL — Tuscaloosa County Circuit Judge Daniel Pruet on Monday issued a ruling validating the proposed $59.7 million bond package for the University Beach Improvement District's proposed $350 million lagoon resort development.

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As Patch previously reported, the decision comes after a contentious bond validation hearing, where the taxpayers of Northport, represented by Tuscaloosa County District Attorney Hays Webb, were sued by the University Beach Improvement District as its leadership sought to have the bonds validated to fund infrastructure improvements in the first phase of the controversial project.

During the bond validation hearing earlier this month, Judge Pruet pointed out the two over-arching questions he was tasked with considering: (1) Did the University Beach Improvement District have the authority to approve the bond issuance? (2) Did all parties follow the appropriate procedures in doing so?

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

In the order filed Monday, Judge Pruet ruled that the bond issuance, assessment methodology and supporting documents were properly adopted, legally sound and in compliance with state law.

He also found no evidence of “fraud, collusion, or unfair dealing” in the district’s proceedings.

Patch has reported that the Series 2025 Special Assessment Revenue Bonds will finance roads, water and wastewater systems, stormwater facilities and other infrastructure outlined in the district’s capital improvement plan.

The improvements will be funded through special assessments levied on property within the district — not through City of Northport tax dollars.

The ruling becomes final after a 14-day appeal window.

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

If no appeal is filed, Monday's filing says the district may proceed with issuing the bonds and levying assessments on property owners within the development. It's also worth noting that the developers will be responsible for covering any construction costs beyond the bond proceeds.

The complaint originally filed Aug. 29 by attorneys on behalf of the Texas-based developers sought a show-cause hearing and named “the taxpayers and citizens of the City of Northport” as defendants, a common step in bond validation actions.

Developer and chair of the University Beach Improvement District Board of Directors Kent Donahue was on hand in the courtroom for the hearing on Nov. 13 and represented by Mobile attorney Jaime Betbeze.

The Series 2025 bonds, if issued, would carry interest rates up to 7.5% and mature no later than November 2055 for a project that developers insist will bring in $350 million in outside investment.

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