Northport Votes to Back State-Level Tax Rebates for University Beach

The planned University Beach Resort is expected to draw more controversy at tonight's Northport City Council meeting.

Northport City Attorney Ron Davis is expected to present a resolution to the city council tonight in support of the application by University Beach to receive tax rebates from the Sweet Home Alabama Tourism Investment Act of 2023. The act encourages tourism development throughout the state by offering tax rebates to businesses that invest in eligible tourism-oriented projects.

The resolution is one of the requirements for the $350 million project to receive the abatements. The other requirement is acknowledgment that no less than 20% of the tax rebates will consist of municipal sales and lodging taxes.

The Alabama Tourism Department is the administering agency for certifying qualifying tourism projects and must give final approval before the rebate becomes effective. The rebates, which are available through July 31, 2028, are provided for state and local sales and use tax, lodgings tax, and other transactional taxes, but are capped at $1 million per year and up to $5 million per company, over 10 years.

According to Alabama Department of Revenue general guidelines as published in 2024 and updated in January of this year,"... two rebate payments would be issued each year, on July 31 and December 31 over a period of 10 years. It would commence on the date the tourism attraction opens for business and begins collecting transactional taxes generated by or within the project, or until the full certified award has been rebated to the approved company. All tax rebates must be first applied to any outstanding tax obligations of the approved company that is due and payable to the state."

Eligible applicants for the rebate(s) are theme parks, water parks, speedways, aquariums, convention centers, professional sports centers, and similar indoor and outdoor attractions.  

Citizens opposed to University Beach have complained about how little information has been revealed about the controversial development, which is planned to include a mixed-use resort on a 77-acre site. It will include a 10-acre lagoon, a water park, an event center, residential homes, retail, and dining.

The secretive nature of the project has led to a shakeup on the Northport City Council and is expected to play a major role in next month's municipal elections.

UPDATE: The Council voted 3-2 to pass the resolution and support the state-level rebates for University Beach. Councilors Karl Wiggins, Woodrow Washington and Christy Bobo voted yes, Jamie Dykes and Anwar Aiken voted no.