The developer of the planned $350 million University Beach resort in Northport provided updated construction and financing details during a recent Cooperative Improvement District board meeting that concluded with an extended public question-and-answer session.
The meeting was held at the Courtyard by Marriott in Northport and lasted approximately ten minutes before board members approved agenda items including budgets, a business plan, and appointments. Following adjournment, lead developer Kent Donahue remained to answer questions from approximately 15 residents and members of the media.
Donahue indicated that horizontal construction — including road building, paving, drainage work, and installation of utility infrastructure — is expected to begin imminently at the Highway 82 site in western Northport, weather permitting. That phase is projected to take six to nine months, with Duncanville-based contractors expected to handle much of the work.
Vertical construction is expected to follow and include Phase I of the development. Plans for that phase include a Beach Club, a 10-acre lagoon with water park features, an event venue, and a 144-key Autograph Collection Marriott hotel.
Infrastructure financing has advanced following bond validation by Tuscaloosa County Circuit Judge Daniel Pruet. Bonds tied to roads, drainage, sewer and electrical hookups, lighting, landscaping, and signage are expected to be marketed primarily to institutional investors.
Under the development agreement, the City of Northport will reimburse up to 75 percent of qualifying infrastructure costs, capped at $20 million, and will retain ownership of the infrastructure once completed. Donahue indicated that approximately $3 million of that cap has been reimbursed to date.
The resort concept expanded from recreational projects financed through $45.7 million in bonds issued by the city in 2023 for a sports complex, an outdoor adventure park, and a family water park. Donahue explained that the project ultimately grew into a 77-acre, $350 million resort intended to generate revenue that could support other recreational amenities, including what has since become River Run Park.
He also indicated that more than nine months and approximately $1 million had been invested in the project before the expanded scope was approved in February 2024. Donahue said developers were working against property acquisition deadlines at the time and that city officials suggested suspending normal council procedures in order to finalize approval during that meeting.
During the discussion, residents raised questions about the project’s financing structure, approval process, and long-term economic impact. Donahue cited third-party projections estimating approximately 600,000 annual visitors and significant tax revenue generation for local and state governments. He also indicated the development could become one of the larger employers in the area.
Donahue also addressed questions about Sapphire Bay, a Texas development in which he had previously been a partner. He said the project failed to deliver on its promises and later went into default, but stated that he was bought out of his stake in 2023 and was no longer involved when those issues occurred.
Donahue expressed optimism that University Beach will meet benchmarks outlined in its agreement with the city, including having key portions of the development operational by 2029.
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
