Bond Issue Hearing for Northport’s University Beach Lagoon Resort Delayed at DA’s Request

A hearing to consider the validation of almost $60 million in bonds to pay for infrastructure at Northport's University Beach lagoon resort has been delayed at the request of Tuscaloosa County District Attorney Hays Webb.

The usually routine hearing is meant to confirm the issuance of bonds worth $59.7 million to pay for roads, sewers, and other infrastructure projects at the site and was originally set for tomorrow, Tuesday, October 14th. Circuit Judge Daniel Pruet is presiding over the case, styled as the University Beach Improvement District v. the Taxpayers and Citizens of Northport, Alabama.

In a Monday call with the Thread, DA Webb said these are not usually contentious hearings - he's previously represented citizens in similar hearings regarding the Courtyard Marriott Hotel just over the Black Warrior River in Northport and a Jack's Family Restaurant in Brookwood. Neither drew much opposition from taxpayers, and bonds related to them were OK'd without fanfare.

Obviously, University Beach is a bird of a different feather. Approval of the third-of-a-billion-dollar project was rushed through the Northport City Council on the same night its massively expanded scope was revealed, and neither the incumbent city leaders nor the Texas developers with whom they partnered have been particularly transparent about the past, present, and future of conversations about the resort.

If the developer's plans are realized, the resort would feature a water park around a 10-acre lagoon, a luxury Marriott hotel, "beach" houses for sale starting at $800,000 and climbing above $1 million for some lots, restaurants and retailers, an events venue, and more.

Citizens of Northport have been almost universally against the 76-acre project in public comment periods and online.

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The development agreement approved in February 2024 committed more than $22 million in city funds for infrastructure improvements around the University Beach site, currently vacant land near the Big Lots and Tractor Supply Co. off McFarland Boulevard in western Northport near Coker.

The bond issue, though, is different. Under the proposed plans, the developers would sell bonds to investors in order to raise nearly $60 million for infrastructure work on the site. Those bonds are essentially IOUs and would be paid back with interest before November 2055. This funding would not come from Northport taxpayer dollars.

"Here, the city of Northport is not divesting itself of any citizen-owned anything," Webb said. "This is approval for a bond, privately issued bonds for whoever wants to purchase them."

This has to be OK'd in a court hearing in front of a Circuit Judge, and Webb said the District Attorney is tasked with representing the citizens of an affected area to make sure the proposal funded by these potential bonds would be a good use of the property, would not unduly benefit an elected official, and more. Essentially, Webb is tasked with ensuring this is a good deal and handled above board.

Webb said he has had regular conversations and meetings with Northport City attorney Ron Davis and outside counsel Jonathan Ray, as well as representatives on the other side of the issue, like lawyer Cam Parsons, whom Northport citizens have hired to represent them in these proceedings.

Webb praised everyone's cooperation so far, but said he still needs more information from both sides before the hearing, so he filed a motion to have the Tuesday court session continued - legalese for postponed.

"The undersigned requests a continuance of the hearing set in this matter as additional time is necessary to review the claims of the parties," Webb wrote in his motion. "There has been significant communication with the parties’ representatives and with others with knowledge of this case. Additional information is being sought from the intervenor on behalf of the taxpayers and citizens of Northport."

Webb said it's his job to find out who has complaints about the bond validation, what the complaints are, and if they have any merit.

Without saying which side, if either, is responsible, Webb said he believes the facts surrounding the University Beach issue have been clouded, and he has the responsibility to get to the truth.

"Because there's been misinformation and disinformation, good governance calls upon me, the district attorney, to accurately shed light where possible so people operating in good faith can have a place to find answers to legitimate questions," Webb said.

Judge Pruet granted Webb's motion to continue, and a new date for the bond hearing has yet to be set. Even when it is, Webb said there are legal requirements about publicizing the new hearing so interested parties will have ample time to prepare and make plans to attend if they so choose.

"It is significant to me because I am a huge proponent of public awareness and good governance," Webb said. "It's really important that the public have the ability to go back, check in court, and see what happened. If I have the ability, through my role, to help answer questions I know people have, I want to do that. Whether people like this project or not, they will be able to look and see that this aspect of it was well-handled."

Both sides of the issue will answer questions for Webb before the postponed hearing is held in the future.

For more coverage of the development project, the bond hearing, and other news out of West Alabama, stay connected to the Tuscaloosa Thread.