Developer of Northport’s University Beach Resort Takes Questions on $350 Million Project

The lead developer of a $350 million resort planned for Northport fielded questions from a small, less-than-warm crowd Friday, publicly discussing the project in greater depth than at any time since its massive scope was revealed almost two years ago.

The unexpected Q&A took place in a room of the Courtyard by Marriott Hotel just off Lurleen B. Wallace Boulevard in Northport after an extremely brief meeting of the University Beach Cooperative Improvement District's Board of Directors.

University Beach's lead developer, Kent Donahue, and board members Steven Fikes, Allison Rush, and Shaferris Porter rushed through an agenda, passing votes to approve budgets, adopt a business plan, make appointments, and more. They did not provide copies of those documents for review at the meeting and spent little, if any, time publicly discussing the items before their votes.

When official business concluded and the meeting adjourned ten minutes after it was called to order, though, Donahue told the board members they could leave if they wanted and said he was willing to take questions from about fifteen people there to observe the meeting, as well as a few reporters present.

Donahue had one condition, though - he asked for all TV cameras and recording devices to be turned off during the session. He told the media it was simply his preference to have the conversation without it on tape, and those reporters who stayed for the question-and-answer session complied with his request rather than jeopardize the meeting taking place.

As such, word-for-word reporting of his comments will not be possible here.

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As the Thread reported shortly after the meeting, one major piece of news from Donahue's comments was an updated timeline for the construction of University Beach, which promises to feature a 10-acre lagoon featuring a water park and lazy river, a large event venue, a luxury hotel, "beach" houses, and much more.

Donahue said "horizontal" construction will begin at the University Beach site off Highway 82 in western Northport next week, weather permitting. Duncanville contractors will begin building and paving roads and installing utility infrastructure, a project expected to take 6 to 9 months.

After that, "vertical" construction will begin on Phase I of University Beach, which Donahue said will include the Beach Club and all of its features, as well as the 144-key luxury Autograph Collection Marriott hotel announced for the site last summer.

The news comes after Tuscaloosa County Circuit Judge Daniel Pruet validated bonds that project developers plan to sell in order to finance the resort's massive initial infrastructure costs - roads, drainage, hookups for sewer and electricity services, lighting, landscaping, signage, and more.

Donahue said on Friday that he expects those bonds to be sold to primarily institutional investors like Goldman Sachs within the next two weeks.

As these last dominoes fall, residents can expect work on University Beach to begin in earnest very soon, and Donahue said he is optimistic his team will meet the guarantees in the city of Northport's agreement with the developer to have key parts of the resort operational by 2029.

During the hour-plus event on Friday, Donahue fielded pointed questions from often-irritated residents, including Northport Mayor Dale Phillips, former councilman Lee Boozer, and Tuffy Holland, who sued the city in 2024 for access to documents related to University Beach.

Holland warned Donahue early on that he should expect two years of pent-up frustration baked into their questions and comments, since the developers, elected officials, and city staff have generally not communicated with residents or sought their input about the $350 million resort.

While no one ever got too rowdy, Holland was right - the 15 folks in the audience did not extend much warmth or welcome to Donahue as they peppered him with questions and criticisms about the conception of University Beach, how much taxpayer money has been committed to the project, the involvement of former council president Jeff Hogg, and much more.

Without the benefit of a recording and transcription of the meeting, this report will attempt to summarize his most relevant and sometimes fascinating answers.

• As part of the developer's agreement, the city will use taxpayer funds to reimburse 75 percent of the cost for resort infrastructure up to a maximum repayment of $20 million. Also, according to the agreement, the city of Northport will own that infrastructure, not University Beach. Donahue said he believes they have been reimbursed about $3 million of the $20 million cap to date.

• Donahue announced that the luxury Marriott Hotel will be built essentially alongside the Phase I development of the Beach Club, including its lagoon, water park, and events center. Some in the audience asked whether that represented an acceleration of their original timeline and if it would require a vote of the Northport City Council. Donahue said he does not believe anything announced or discussed so far will require further permission or approval from the council.

• The developer was very candid about early conversations around what has become University Beach and painted a new picture of how his team was pitched to come to Northport. The city was issued $45.7 million in bonds back in 2023 to finance three separate recreational projects in Northport, which were pitched at the time as a sports complex, an outdoor adventure park, and a 12-acre family-friendly water park.

On Friday, Donahue said when he was first approached about getting involved, some elected officials and city staff feared that these projects would be money-losing ventures. He said dramatically expanding the water park into a 77-acre, $350 million resort was a way to make a profit so it could "subsidize" the sports venue, which has since become Northport's River Run Park. Donahue said the Texas development team "thought they were saving people from a big mess," and "expected a parade" when the resort was announced and approved on the same night in February 2024. Seeing all the public opposition at that meeting was an 'Oh, S.' moment, Donahue said, but by that time, more than nine months and a million dollars had already been invested in the project - it was too late to back out.

• Donahue also talked a few times about former Northport City Council President Jeff Hogg, who first pitched the idea of a Northport waterpark in early 2020 as a $7 million project occupying 5 to 12 acres. Donahue said while Hogg is a passionate defender of University Beach with "his heart in the right place," he bungled his communications with the public to such a degree that it poisoned the perception of the entire project. Donahue compared it to the so-called 'Trump Derrangement Syndrome,' a term for opposition to any action taken by President Donald Trump because of problems with who he is as a person. Donahue said Hogg has no managerial, advisory, or financial stakes in University Beach.

• Donahue said he believes University Beach will be "unique to the United States" and draw visitors from Memphis, Nashville, Atlanta, and more. He cited third-party projections that the resort would draw 600,000 visitors annually, become one of the area's largest employers, and generate hundreds of millions of dollars in tax revenue for the city, county, and state.

• He was challenged on all those ideas - the crowd noted a similar lagoon resort with hotels, retail, and more has been announced for Leeds and could attract away all those visitors from north and east of us. They also questioned Donahue about Sapphire Bay, a resort planned for Rowlett, Texas, on which he had once been a partner. He said it was a shame that the project had failed to deliver on its promises, but that he was bought out his stake in that endeavor in 2023 and any of its failures since are not his fault. That project went into default late last year.

• As he stood inside it, the Texas developer also acknowledged that Northport's only hotel, the Marriott, is struggling to book guests. He said it's his understanding that the occupancy averages around 25 percent, despite opening less than 3 years ago. Even so, Donahue said "they're killing it" at Tuscaloosa's luxury boutique, the Alamite hotel, and he expects the Autograph coming to the resort to be even nicer than that and to stay booked accordingly.

• Donahue said he regretted how the city council suspended the rules and voted to approve University Beach on the same night its scope was revealed. Typically, the council would have introduced the plans in one meeting and voted on them two weeks later when they met again, giving citizens time to educate themselves and weigh in before any permanent decisions are made. Donahue said the developers needed to acquire property for University Beach, and they were up against the closing date at the time of the infamous February 2024 council meeting. The developers needed the expedited vote, he said, but Donahue also told Mayor Dale Phillips that it was elected officials and city staff who suggested suspending the rules and approving the project that night.

• Donahue also said he was willing to arrange a town hall to take more questions and discuss the project further, though he said he was speaking only for himself and did not expect others involved with University Beach to commit to participating.

After the meeting, Northport Mayor Dale Phillips told the Thread he was thankful for it but wished Donahue and others had been more transparent earlier in this process.