MOBILE, Ala. (WALA) – Representatives of a pair of churches argued Tuesday that religious institutions should be exempt from a fee imposed on downtown commercial property owners.
The speakers were among a handful of people — both opponents and supporters — who spoke at a public hearing about a proposal to renew the Downtown Business Improvement District for another five years.
The district pays for beautification, graffiti removal, trash collection, marketing campaigns and provides other services the city does not provide in a 75-block area of downtown. The money comes from an appraisal of 547 commercial properties and goes to a board of directors affiliated with the Downtown Mobile Alliance. These costs vary depending on the value of the properties. The average compensation is $890. The highest is $56,200. The lowest is just $9.
Churches are generally exempt from taxes. But since this is technically an ‘assessment’ and not a tax, it applies to three churches in the district: the Cathedral of the Immaculate Conception, Christ Church Cathedral and the Government Street Presbyterian Church.
Gray Redditt, an attorney for the Archdiocese of Mobile, said downtown churches have small congregations and are extremely expensive to maintain. He said the rating was nominal when the council created it in 2005.
“That is not the case today,” he told city council members. “Downtown Mobile is booming. Real estate values have skyrocketed every year. The tax advisor increases the value of the property. And at the same time, our ratings have skyrocketed.”
Harwell Coale, a member of Christ Church Cathedral, noted that Mobile valued his church at $500,800 in 2019. He said this jumped to more than $2.6 million in 2020 and has been rising since.
“Churches are not businesses,” he said. “They don’t charge anything for their services. They are free. And the only thing we serve is God.”
Council members seem inclined to renew the program. But a number of members also showed their compassion for the situation in which churches find themselves.
“The center benefits substantially from these beautiful downtown structures,” said District Councilor Ben Reynolds. “You know, so it’s a mutual relationship that exists there. You know, Cathedral Square wouldn’t be what it is today without that beautiful cathedral that heads it.
Councilman Willim Carroll, who represents the downtown area, asked the city council to explore changes to the ordinance before the council votes next week. He proposed a provision that would freeze the assessed value of downtown churches at current levels.
“If there were a fixed assessment, where the value of the property on the church sanctuary itself would not increase, that could be a compromise to not participating in the BID at all,” he said.
Some business owners also expressed dissatisfaction with the program. Melodie Mastro, owner of Precision Engineering on St. Louis Street, said her latest estimate was $16,000. She said the district is not doing a good job of picking up trash on her street.
“I feel like we’re not getting enough value for our money. … Overall, I just think it’s very expensive,” he said.
A number of business owners spoke out in support of the program, including restaurant owner Pete Blohme, who said ending the program would be a “step in the wrong direction.”
Bradley Byrne, president and CEO of Mobile Chamber, said the Business Improvement District has been an “incredible success” and that a vibrant downtown is key to attracting young professionals.
“It’s a big deal for them,” he said.
Matt Anderson, a city official who serves as a non-voting member of Downtown Mobile Alliance, said he believes the program provides great value. He compared the assessment to an ‘increased’ contribution to the homeowners’ association.
“The people who fall within the boundaries of the BID get certain benefits from it, right?” he said. “And those churches get benefits, including a share of the commercial properties they own.”
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