MOBILE, Ala. (WALA) – Representatives of a pair of churches argued Tuesday that religious institutions should be exempt from the 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. offer Renewing the Downtown Business Improvement District for another five years.

The district covers the cost of beautification, graffiti removal, trash pickup, marketing campaigns and provides other services the city does not offer within a 75-block area of ​​downtown. The money comes from an assessment of 547 commercial properties and goes to a board of directors affiliated with the Downtown Mobile Alliance. These fees vary depending on the value of the property. The average wage is $890. The highest level is $56,200. The lowest price is only 9 dollars.

Churches are generally tax-exempt. But since this is technically an “assessment” and not a tax, it applies to three churches in the area: Immaculate Conception Cathedral, Christ Church Cathedral, and Government Street Presbyterian Church.

Gray Redditt, an attorney for the Archdiocese of Mobile, said downtown churches have small congregations and are extremely costly to maintain. He said the assessment was nominal when the council created it in 2005.

“That is not the case today,” he told City Council members. “Downtown Mobile is growing rapidly. Real estate values ​​are increasing rapidly every year. The tax assessor increases the value of the property. Simultaneously, our evaluations also increased rapidly.”

Harwell Coale, a member of Christ Church Cathedral, said Mobile valued his church at $500,800 in 2019. That value rose to more than $2.6 million in 2020 and has increased since then, he said.

“Churches are not commercial,” he said. “They do not charge for their services. They are free. And the only thing we serve is God.”

Council members seem inclined to renew the program. However, a few members also expressed sympathy for the plight of the churches.

“Downtown benefits greatly from having these beautiful structures downtown,” said District 4 Councilman Ben Reynolds. “You know, there is a reciprocal relationship there. “As you know, Cathedral Square would not be what it is today if it were not for the beautiful cathedral at the beginning.”

Councilman Willim Carroll, who represents downtown, asked the city government to explore changes to the ordinance before next week’s council vote. He proposed a provision that would freeze the assessed value of downtown churches at current levels.

“If there is a fixed assessment that the property value in the church sanctuary is not increasing, that may be a compromise to not participate in the IYBI at all,” he said.

Some business owners also expressed their dissatisfaction with the program. St. Melodie Mastro, owner of Precision Engineering on St. Louis Street, said her last assessment was $16,000. He said the district doesn’t do a good job of picking up trash on his street.

“I feel like we didn’t get enough value for our money. …Overall, I feel like it’s too expensive,” he said.

Several business owners spoke in support of the program, including restaurant owner Pete Blohme, who said stopping the program would be “a step in the wrong direction.”

Mobile Chamber President and CEO Bradley Byrne said the Business Improvement District has had “incredible success” and that a vibrant downtown is key to attracting young professionals.

“This is a huge deal for them,” he said.

City official Matt Anderson, who serves as a non-voting member of the Downtown Mobile Alliance, says he believes the program provides great value. He likened the assessment to “increasing” the homeowners association fee.

“Those who stay within the boundaries of the BID get some level of benefit from it, right?” he said. “And these churches benefit, including some of the commercial properties they own.”

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