Mobile residents took a modest but pivotal step toward a major waterfront redevelopment on Tuesday when the City Council voted to authorize Mayor Spiro Cheriogotis to draft a tax‑increment financing (TIF) plan for a new riverfront district. According to Fox 10, the council’s action allows the mayor to outline both the details of the proposed “transformational project” and how any incremental tax revenue would be spent.
Mayor Cheriogotis said the initiative aims to “change the face of our waterfront for all time,” but he is bound by a nondisclosure agreement from revealing specifics. He hinted the project could generate a large number of jobs and likened its potential impact to the city’s growing Airbus assembly operation at the Mobile Aeroplex at Brookley. “I have a great deal of hope that maybe by the end of this year, if not the very beginning of next year, we’re gonna be able to announce something that I think will be as transformational as Airbus deciding to locate here,” he told reporters.
The proposed TIF would not raise new taxes. Instead, any property‑tax revenue that exceeds the current level would be funneled into a fund overseen by a city‑appointed board, which could use the money for sidewalks, security, beautification and other infrastructure needed to support the development. The district would cover land south of downtown Mobile, along the east and west banks of the Mobile River near Interstate 10, south of Canal Street and close to the Alabama Cruise Terminal.
Council members pushed back on the lack of detail. Councilman Ben Reynolds said, “Nobody’s seen a plan on why this TIF is so important. … We’ve gotten no information from the administration,” while Councilwoman Samantha Ingram added, “Give us the details of the project.” The council declined to set a public hearing, a required step to create a TIF, arguing that a hearing should follow a concrete plan.
Supporters on the council argued the district is needed now. Councilman Beau Fleming said, “I think we need to get the ball rolling. … These TIFs have worked in the past. That transformed downtown.” He and other members noted that similar districts have previously spurred development.
The Mobile County Revenue Commission projects the riverfront TIF would generate just over $9 million in incremental revenue by its fifth year. Mayor Cheriogotis cautioned that figure is modest compared with the potential revenue if the larger development proceeds, and he noted the city could borrow against expected revenue to fund debt service.
Approval of the TIF also requires the Mobile County Commission and the Mobile County Public School System to agree to divert their share of the incremental tax revenue. The mayor said the revenue would be used for infrastructure to support the project and could also fund broader waterfront improvements, such as relocating businesses that are not complementary to hotels, bars and entertainment venues, and possibly moving the Metro Jail.
What’s next: Mayor Cheriogotis must now draft the detailed TIF plan and present it to the council for a public hearing. After that, the proposal will need approval from the County Commission and the County School System before any funds can be allocated.
Sources: fox10tv.com, fox10tv.com, lagniappemobile.com
