Despite TVA holdup, Ingalls Harbor development still in the plans
Apr. 17—The $30 million development at Ingalls Harbor remains on hold but is getting closer to becoming a reality as the developer seeks approval from the Tennessee Valley Authority, officials said Wednesday.
Developer Patrick Lawler, who developed Guntersville's 55,000-square-foot City Harbor, announced in March 2023 that he is planning a roughly 75,000-square-foot mixed-use development with condominiums, restaurants, retail stores and entertainment options on the Tennessee River just west of Ingalls Harbor.
A portion of the development, including boat slips, would stretch over the river.
The Decatur City Council approved $5 million in economic incentives plus land for Lawler as sole managing partner of Ingalls Harbor LLC. The city is providing 5 acres while Decatur Utilities is adding 2 acres of its property next to the wastewater treatment plant.
The City Council voted last week to extend the agreement for three years, although City Attorney Herman Marks said he doesn't believe they will need all of the allotted time.
Council President Jacob Ladner said they have been working with TVA on deed modifications to the land policy that the federal utility provider established in 2006.
The main issue of discussion related to the development is the problem with strict TVA deed restrictions from 1954. Lawler plans to build and sell about 40 condominiums, but the deed limits how close to the river residential properties can be.
According to TVA, "All construction or alterations to the shoreline require TVA approval, even minor changes to the dock. Second stories on docks can be constructed as an open deck with railing, but they cannot be covered with a roof or enclosed with siding or screening."
Ladner said he expects movement on the project soon.
"There's been a lot of back and forth and a lot of discussion," Ladner said. "The last update I got was very positive that we could get a resolution coming in the next few weeks."
Mayor Tab Bowling said one issue that has slowed down approval is the TVA board is unable to get the necessary quorum to meet.
President Donald Trump fired Huntsville attorney Joe Ritch as chairman of the TVA Board of Directors on April 1. He fired board member Michelle Moore on March 27. That leaves only four board members.
According to the TVA bylaws, the board must have five members for a quorum. Without five members, the board can continue operations that were established when it had a quorum, but does not have the authority to "direct TVA into new areas of activity, to embark on new programs, or to change TVA's existing direction."
Ladner said he believes this situation will be solved quickly and the TVA board will resume meeting.
If they're unable to solve the issue through TVA and its board, Ladner said there are other alternatives. One is adding some language to the federal Water Resources Development Act, but he said the problem with this law is Congress only considers it every two years.
"If we have to go that route, it would be 2026 before the next WRDA," Ladner said.
Lawler said he's still committed to the project.
"We'll get through this," Lawler said. "It's just a timely process. I'll get to work as soon as I can."
He pointed out that Guntersville's City Harbor took five years to complete.
— bayne.hughes@decaturdaily.com or 256-340-2432
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