Montgomery, AL – The governor's beach house will remain state property for at least right now. A Louisiana developer lost the first round in a court battle to reclaim the beach house on the Fort Morgan peninsula. The developer, who plans to appeal, says the property was given to Alabama in 1963 and was supposed to be given back to its original owners if it was not used as a residence for Alabama governors. Circuit Judge Tracy McCooey ruled Tuesday the state still uses the house as a residence and does NOT have to give it back to the original owners. The beach house was damaged in 1997 by a hurricane and has been boarded up since 1998 due to the state's poor financial situation.