Annexation Costing City More

by Rose Ann Haven

Published: Tue, December 30, 2008 - 8:03 pm CST Last Updated: Tue, December 30, 2008 - 8:45 pm CST

The City of Mobile's latest annexation is costing more money than leaders had planned.

The Airport Authority has notified the city it has to charge for the land on which it plans to build new police and fire stations. The Federal Aviation Administration requires the airport to get fair market rental value. The deal is still being hammered out, but, it looks like the city will have to pay about $37,000 a year for 3.5 acres of land.

"We didn't expect it on that piece of property but, that's what's being required and that's what we have to do. That's a strategic location for us, a very important location for us. So we still plan to go forward with the construction of the stations there", says Mayor Sam Jones.

The mayor says the city found out about the cost a few weeks ago. But, he says it's not a problem. The city leases property all the time.

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BamaBob Says:

Wed, Dec 31, 2008 at 8:08 am

The City is going to invest millions into permanent structures for a Fire and Police complex on leased land. That just doesn’t seem like the smart way to go. It is a buyer’s market in real estate and the city could get a fantastic interest rate. Why lease land?

What are the terms of the lease? Will this be so much a year for a 100 years, or will it be adjusted periodically based upon other factors? Once the city builds, the citizens will be stuck with the lease deal far past the current mayor.

More thought needs to be given to this!

Sirk Says:

Wed, Dec 31, 2008 at 6:39 am

Sammie didn’t do his homework before he jumped the gun. He should have researched that land more thoroughly before making such a decision. Since it’s going to cost him more money, I wonder which area he will decide to annex next? Semmes area better get ready cause here comes Sam!

BamaBob Says:

Tue, Dec 30, 2008 at 9:13 pm

Why does it have to be on airport land other than the fact the building and site work have already been designed?

licensedtokill Says:

Tue, Dec 30, 2008 at 8:58 pm

“Wouldn’t it be wiser to purchase land in this deflated real estate market instead of leasing for an indefinite period of time for an undetermined cost due to changing market values?”

The Federal Aviation Administration probably wouldn’t allow the Airport Authority to sell that land. And the Federal Aviation Administration would probably want them to charge about one million per acre, so it would cost the city - us - about 3.5 million dollars to buy that land. And who said the federal government doesn’t know how to make money? Meanwhile, right down the street they can buy 20 acres for 400K.

Ironic that if the Airport Authority needs backup help on fire and police, guess who will be running over there? Tell the Mayor to tell the Airport Authority - and the Federal Aviation Administration - the Mobile Taxpayer’s Authority won’t allow our police and firemen to help unless we charge them $2,000 per incident.

BamaBob Says:

Tue, Dec 30, 2008 at 8:42 pm

Wouldn’t it be wiser to purchase land in this deflated real estate market instead of leasing for an indefinite period of time for an undetermined cost due to changing market values?