University Beach Bond Validation Hearing Continued To Later Date

TUSCALOOSA, AL — A Tuscaloosa County Circuit Court hearing on the University Beach Improvement District’s petition to validate nearly $60 million in bonds set for Tuesday has been continued to a later date that has not yet been specified.

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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, 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.

A new court date for the hearing has not yet been set.

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