Churches ask to be exempt from cell phone charges in the city center

MOBILE, Alas. (VALA) – Representatives of a pair of churches said Tuesday that religious institutions should be exempt from a fee imposed on downtown commercial property owners.

The speakers were among the few people – both opponents and supporters – who spoke at the public hearing on offer extend the Downtown Business Improvement District for an additional five years.

The county pays for landscaping, graffiti removal, trash collection, marketing campaigns and other services not available in the 75-block downtown. The money comes from the 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 commission is $890. The maximum amount is $56,200. The lowest price is only $9.

Churches are generally exempt from taxes. But because it’s technically an “assessment” rather than a tax, it applies to three churches in the parish – the Cathedral of the Immaculate Conception, Christ Church Cathedral and Governor’s Street Presbyterian Church.

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

“That’s not the case today,” he told city council members. “Downtown Mobile is thriving. The value of real estate is growing every year. The taxman increases the value of the property. And at the same time, our grades skyrocketed.”

Harwell Cole, a member of Christ Church Cathedral, noted that Mobile valued its church at $500,800 in 2019. He said that figure jumped to more than $2.6 million in 2020 and has been growing since then.

“Churches are not businesses,” he said. “They don’t charge for their services. They are free. And the only thing we serve is God.”

Council members appear inclined to reinstate the program. But several members also expressed sympathy for the situation facing the churches.

“Downtown benefits greatly from having these beautiful structures in the heart of the city,” said Ward 4 Councilman Ben Reynolds. “You know, so there’s a reciprocal relationship there. You know, Cathedral Square would not be what it is now if it weren’t for that beautiful cathedral standing at its head.”

Councilman Willim Carroll, who represents downtown, asked city staff to study 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 was a fixed assessment where property values did not increase on the church sanctuary itself, that might be a compromise with not participating in the BID at all,” he said.

Some business owners also expressed dissatisfaction with the program. Melody Mastro, who owns Precision Engineering on St. Louis Street, said her latest estimate was $16,000. She said the neighborhood doesn’t do a good job of picking up trash on her street.

“I feel like we’re not getting enough bang for our buck. … Overall, I think it’s very expensive,” he said.

A number of business owners have spoken out in support of the program, including restaurant owner Piet Blome, who said ending the program would be a “step in the wrong direction.”

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

“It’s very important to them,” he said.

Matt Anderson, a city official who is a non-voting member of the Downtown Mobile Alliance, says he believes the program has great value. He compared that estimate to an “increased” homeowners association fee.

“People who are within BIDs benefit from them in some way, right?” – he said. “And these churches receive benefits, including some of the commercial real estate they own.”