House puts OK on Gulf resort

Originally Published by the Mobile Press Register

Link: http://www.al.com/news/press-register/metro.ssf?/base/news/1241687809174240.xml&coll=3

Bill allows long-term lease of beachfront land where Gulf State Park Lodge once stood
Thursday, May 07, 2009

By GEORGE R. ALTMAN
Capital Bureau

MONTGOMERY — The Alabama House approved a compromise Wednesday to develop a luxury hotel and convention center on state-owned Gulf Shores beaches, after hours of stalling by opponents who argued that the project favored the rich.

The bill would allow a long-term lease of the land where the Gulf State Park Lodge once stood, but it would limit such leases on other beachfront state lands.

"If we can get this state park rebuilt, back down in Gulf Shores, it will be an asset for the state of Alabama. It will bring in needed revenue," said Rep. Harry Shiver, R-Bay Minette.

The bill passed 82-14, but its success was at one point in doubt.

"They're down there killing it right now," Shiver said, as about a dozen lawmakers conducted a filibuster.

Shiver said he thought that the opposition stemmed from lobbying efforts by a hotel looking to avoid competition, the Perdido Beach Resort.

The bill's opponents argued that the creation of a luxury hotel would limit beach access for average folks.

"Should we pass this bill, it will be wide open for the developer... to come in there and do pretty much anything that they please," said Rep. Jack Page, D-Gadsden.

Jim Meadlock, whose company owns Perdido, declined to comment on Wednesday's action.

The bill, sponsored by Sen. Larry Dixon, R-Montgomery, would approve the lease of the old Gulf State Park Lodge property, which was wrecked in 2004 by Hurricane Ivan.

Under the bill, the lease term must run 30 to 70 years, construction must be competitively bid, state employees must run the convention center, and local communities must negotiate about contributing to the maintenance.

Gov. Bob Riley previously urged the creation of a resort on that land through a long-term lease with Auburn University, which would then award a sublease to Atlanta-based West Paces Hotel Group. Opponents sued, and after four years of litigation, the state's highest court ruled against Riley in late March.

Riley's development plan differed from that contained in the compromise bill, but a spokesman for the governor said that he still supports construction of a hotel.

"This bill would fix a lot of those legal questions surrounding the project," said Press Secretary Todd Stacy. "It will be a tremendous boon for the area and for the state."

Before Riley can sign the bill, the Senate, which had already passed it, must approve of changes made by the House.

One of those changes was added Wednesday, mandating that the resort cannot offer gambling.