MOBILE, Alabama (WALA) – Representatives of a pair of churches argued Tuesday that religious institutions should be exempt from a fee imposed on owners of downtown commercial properties.

The speakers were among a handful of people (both opponents and supporters) who spoke at a public hearing about a proposal 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 that the city does not offer in a 75-block downtown area. The money comes from an assessment of 547 commercial properties and goes to a board of directors affiliated with the Downtown Mobile Alliance. Those rates vary depending on the value of the properties. The average rate is $890. The highest is $56,200. The lowest is only $9.

Churches are usually 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 Government Street Presbyterian Church.

Gray Redditt, 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 is not the case today,” he told City Council members. “Downtown Mobile is booming. Property values ​​have skyrocketed every year. The tax assessor increases property values. And at the same time, our valuations have skyrocketed.”

Harwell Coale, 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 increased 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 seem inclined to renew the program. But a couple of members also expressed sympathy for the situation churches find themselves in.

“Downtown benefits substantially from these beautiful structures being downtown,” said Ward 4 Councilman Ben Reynolds. “You know, so it’s a mutual relationship that exists there. You know, Cathedral Square would not be what it is today if it were not for that beautiful cathedral that is at the head.”

Councilman Willim Carroll, who represents the city center, asked the city administration to explore changes to the ordinance before the council votes next week. He suggested a provision that would freeze the assessed value of downtown churches at current levels.

“If there was a fixed assessment, where the value of the property did not increase in the church sanctuary itself, that could be a commitment to not participate in the BID at all,” he said.

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

“I feel like we’re not getting enough value for our money. … In general, I think it is very expensive,” he said.

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

Mobile Chamber President and CEO Bradley Byrne 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 problem for them,” he said.

Matt Anderson, a city official who serves as a non-voting member of the Downtown Mobile Alliance, says he believes the program offers great value. He compared the assessment to a “reinforced” homeowner’s association fee.

“People who are within the BID limits get certain levels of benefit, right?” said. “And those churches are making profits, including some of the commercial properties they own.”

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