SB473 Alabama 2015 Session

Summary

Primary Sponsor

Vivian Davis FiguresSenator

Democrat

Session

Regular Session 2015

Title

Class 2 municipalities (Mobile), redevelopment authorities, establishment for financing redevelopment projects under certain conditions, issuance of bonds, tax exempt status, Secs. 11-54C-1 to 11-54C-25, inclusive, added

Summary

SB473 would let Class 2 municipalities like Mobile create Redevelopment Authorities to finance redevelopment projects in blighted or distressed areas.

What This Bill Does

The bill authorizes the establishment of Redevelopment Authorities within Class 2 municipalities to finance projects in development areas aimed at revitalizing blighted or economically distressed areas. It creates a detailed process to form an authority, including filing an application with the city, getting an authorizing resolution, and filing a certificate of incorporation with the county judge of probate. The authorities would have broad powers to acquire, finance, build, lease, and manage projects and to issue bonds secured by the projects' revenues. It also provides tax exemptions for the authority and its bonds, requires compliance with competitive bidding for contracts funded with public funds, and guarantees the city is not financially responsible for the authority's debts.

Who It Affects

• Class 2 municipalities (e.g., Mobile) and their mayors/city councils that would establish and oversee Redevelopment Authorities and approve projects and bonds.
• Property owners, developers, businesses, and lessees within the development area who could benefit from redevelopment projects and may be affected by financing and tax provisions (e.g., tax exemptions for the authority and its property, and potential payments in lieu of taxes approved for projects).

Key Provisions

• Creates Chapter 54C to establish Redevelopment Authorities in Class 2 municipalities for development areas within the city.
• Authorizes formation of an authority through an applicant group; requires an authorizing resolution and filing a certificate of incorporation; incorporation creates a public corporation.
• Board of 11 directors (7 appointed by city council, 4 by mayor); terms start with staggered 2-, 3-, and 4-year terms; thereafter six-year terms; eligibility and expense reimbursement rules.
• Powers include financing, acquiring, constructing, leasing, selling, mortgaging, and managing projects; issue bonds; borrow money; enter contracts; receive grants; and extend credit.
• Bonds are payable solely from authority revenues; secured by revenues; may be refunded; bonds are negotiable; signatures and form requirements specified.
• Tax exemptions: authority, its property, income, bonds, and related transactions are exempt from state taxes; no license taxes; property tax exemptions apply unless otherwise restricted by federal tax ownership rules.
• Requires competitive bidding for contracts funded with public funds; public hearings required before spending tax revenues; notice requirements for hearings.
• The chapter provides state-level independence; no pre-approval for incorporation or bond issuance, but public hearings are required for tax revenue expenditures.
• Earnings: the authority operates as a nonprofit; net earnings after expenses go to the city; dissolution allowed when no bonds outstanding, with property transfers to the city.
• Projects must be located within the city's development area; determinations of central business district and development area are final and conclusive.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Class 2 Municipalities