Senate passes Cullman County community development district bill with casino ban and sunset

The Alabama Senate on April 22 passed Senate Bill 322, an amended bill empowering a specific type of community development district tied to a large resort site on Smith Lake in Cullman County and allowing municipal annexation under conditions set in the measure.

Sponsor Senator Gudger said the bill would create a board for a resort and allow a municipality to consider annexing the developer’s parcel after district formation, and that the measure was tailored to a particular Cullman County project. "This is just enhancing that so that the resort can have a board of directors that talks with the city council so they can see if they wanna annex this property," Gudger said on the floor.

The bill’s sponsor and backers added several amendments in response to concerns raised by county officials and residents during committee and after public comment, Gudger said. The adopted substitute added: an explicit ban on casinos and other commercial or charitable gaming on the project site; a one‑year deadline for annexation actions to begin (annexation must commence by June 1, 2026); and dedicating some local tax revenue streams to specified local needs including the county general fund, the county school system and volunteer fire departments.

The sponsor provided revenue estimates for the fully built project, saying Cullman County’s general fund could receive roughly $3,164,000 annually and the county school system about $1,278,000 a year from a combination of property and sales taxes once the project is complete. He described the resort as potentially occupying up to 2,500 acres and including multiple golf courses.

Senators questioned the sponsor during debate about the bill’s scope, the trigger for district formation and the expected economic impact. Gudger said the project’s developer first sought county financing but, after the county declined, turned to a municipality; the bill was advanced to accommodate that arrangement and to preserve the project’s financing options.

The substitute also included provisions requested by county officials to preserve some local revenue streams for services such as sanitation, emergency response and coroner needs; the sponsor said those changes were intended to address objections county commissioners raised publicly.

The Senate adopted the substitute and passed SB 322 as amended. The record shows the final recorded tally as 27 ayes and 1 nay. The sponsor moved and the Senate adopted the substitute before final passage.

Because the measure applies to a named county and lays out annexation and tax‑related elements, Senator Gudger repeatedly framed it as a project‑specific, local economic development vehicle linked to Smith Lake and Cullman County. The bill text and floor amendments direct certain tax flows to county and school funds and prohibit casino gaming on the site.

The Senate took no additional rollcall on whether a municipality would ultimately annex the property; the bill sets procedures and a deadline for local action but does not itself change municipal boundaries.