Alabama Attorney General Opinion 1979-0104

4 THE ATTORNEY GENERAL STATE OF ALABAMA •• MONTG 0 OMERY, ALABAMA 361 CHARLES A. GRADDICK ATTORNEY GENERAL MAR 27 1978 Honorable Roger W. Kirby Attorney for City of Gadsden P. 0. Box 267 Gadsden, Alabama 35902 Municipalities - Gadsden Urban Development City of Gadsden may carry out proposed development project and it may sell certain land for hotel and motel purposes. Dear Mr. Kirby: Reference is made to your request for an opinion from the Attorney General concerning the development and sale of certain property by the City of Gadsden. In essence you stated that the city wishes to develop certain property already owned by the city for a civic center. It then would purchase property in addition to a certain parking area owned by the city to sell to a private business for the develop- ment of a hotel or motel. You then asked the following questions: 1. Would the actions of the City in promoting the development of a hotel/motel in this manner constitute a violation of any federal or state antitrust laws? 2. Would the actions proposed constitute a violation of Section 94 of the Alabama Constitution? 3. Would the City have authority to convey the property described because it is not needed for public or municipal purposes, when CHARLES A. GRADDICK Attorney General By- LYNDA F. KNIGHT Assistant Attorney General Honorable Roger W. Kirby Page 2 MAR 27 1979 sufficient parking space is available elsewhere in the area, even though the property is currently subject to a use by the City? It is the opinion of this office that the property develop- ment project proposed by the City of Gadsden would not be in violation of the antitrust laws or Section 94 of the Constitution of Alabama 1901 if the sale of the land for the building of a motel or hotel is carried out fairly and legally by the city in a "arms length" transaction and the property is sold at its fair market value. In accordance with Code of Alabama 1975, Section 11-47-20, a city may sell property owned by it which is not dedicated or held in trust for public purposes and which is not needed for public purposes. Therefore, the City of Gadsden may convey the property described in your letter, if ample provisions for public parking are made elsewhere in the area. If our office can be of further assistance, please call on us. Very truly yours, LFX/sg 1