SB53 Alabama 2020 Session

Summary

Primary Sponsor

David Burkette

Democrat

Session

Regular Session 2020

Title

Economic Dev, property adjacent to U.S. Air Force Base, mun. or co. authorized to form authority for development, issuance of bonds, tax exemptions

Summary

SB 53 would let Alabama cities or counties form local redevelopment authorities near active Air Force bases, with power to issue bonds and grant tax exemptions to spur economic development.

What This Bill Does

It authorizes municipalities or counties to create a local redevelopment authority to upgrade land contiguous to an active U.S. Air Force installation within their borders. The authority can finance, construct, operate, and manage projects and issue revenue bonds payable only from the project revenues, which may be secured by pledges or mortgages. It provides tax exemptions for the authority, any cooperative district, and private users, while allowing payments in lieu of taxes to support debt service. It also outlines how the authority is formed, governed by a board elected by the authorizing subdivision, and includes provisions for earnings, dissolution, and transfer of property when dissolved.

Who It Affects

• Municipalities and counties that decide to form a local redevelopment authority and may incur bond obligations to finance redevelopment near Air Force installations.
• Private users, lessees, and developers involved in projects within the local redevelopment area (including cooperative districts), who may owe payments in lieu of taxes and would benefit from tax exemptions and project development.

Key Provisions

• Authorization for a municipality or county to form a local redevelopment authority to redevelop land contiguous to an active U.S. Air Force installation, up to 150 square acres.
• Authority to issue revenue bonds and other securities payable solely from project revenues, including the ability to mortgage or pledge those revenues as security.
• Tax exemptions for the authority, cooperative districts, and private users, with payments in lieu of taxes allowed to support debt service; exemptions may be conditioned by PILOT arrangements.
• Formation and governance process: application by at least three qualified electors, governing body authorization, and filing of a certificate of incorporation with defined principal office and project description; board elected by the authorizing subdivision with defined terms.
• Powers and operations: financing, construction, acquisition, operation, leasing, selling, and management of projects; ability to set rates and charges; ability to contract with federal, state, or local governments and to accept loans or grants.
• Exemptions from competitive bidding and usury laws; the authority is a nonprofit and its debt does not constitute the debt of the authorizing subdivision; dissolution procedures include transferring title to the authorizing subdivision or private user when all obligations are paid.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Counties