Alabama Attorney General Opinion 1979-0150

- 0050 + 9\ OFFICE OF THE ATTORNEY GENERAL LEE L. HALE DEPUTY ATTORNEY GENERAL WILLIAM M. BEItuRS. JR. EXECUTIVE ASSISTANT WALTER S. TURNER CHIEF ASSISTANT ATTORNEY GENERAL JANIE NOBLES ADMINISTRATIVE ASSISTANT CHARLES A. GRADDICK ATTORNEY GENERAL STATE OF ALABAMA APR 1 1 1979 ADMINISTRATIVE BUILDING EA NORTH UNION STREET MONTGOMERY AREA (201IL 15411150 Honorable Bill J. Dukes Mayor of the City of Decatur Post Office Box 488 Decatur, Alabama 35602 Municipalities - Decatur, City of City of Decatur fully empowered to proceed with community development program known as Vine Street Pro- ject. Dear Mayor Dukes: The Office of the Attorney General has received your opinion request of February 5, 1979 and your letter of March 1, 1979 which furnishes additional information. Your request presents the following factual situation: The City of Decatur has filed an application under the Small Cities Compre- hensive Program as provided by federal regulations, and has entered into a grant agreement pursuant thereto, copies of both of which are enclosed herewith. Funding for this program is found under PL93-383 (Housing and Community Development Act, as amended). Activities which are eligible for such grant assistance are set forth in Section 570.200, et seq., subpart C-Eligible Activities, Federal Register, Vol. 43, No. 41 - Wednesday, March 1, 1978. The City has included within its application and within the grant agreement plans for financing rehabili- tation of buildings and improvements, including privately owned properties, through the use of grants, direct loans, loan guarantees, and other means as provided by applicable federal THIS OPINION IS OVERRULED TO THE EXTENT IT CONFLICTS WITH OPINION TO RACHEL LAURIE RIDDLE, CHIEF EXAMINER, DATED OCT. 22, 2021, A.G. 2022-002. Hon. Bill J. Dukes Page Two regulations. The City has also included in its application plans for payments to housing owners and tenants as provided by the Communi- ty Development Program, including acquisition of properties for redevelopment and sale privately, and payment of relocation costs for both owner and tenants, again all as provided for in applicable federal regulations. Your first question is whether the City of Decatur is em- powered under state law and the Constitution of Alabama 1901 to proceed with the above-described activities. Your question is to be answered in the affirmative. In an opinion to Hon. George W. Siebels, Mayor of the City of Birmingham under date of May 15, 1975, a copy of which is enclosed, this office approved the expenditure of federal funds by a municipality for the precise activities presented in your request. Therefore, it is the opinion of this office that the City of Decatur is fully empowered to proceed with all activities set forth in the second paragraph of this opinion. Your request also presents the following factual information: Included within the application, and the grant agreement, is the City's pro- posal and agreement to make available for the project a parcel of land owned by it, approximately 5.5 acres in size, consti- tuting the former site of the Cherry Street School which acreage will be replatted into standard residential lots. . In your letter of March 1, 1979 you furnished additional infor- mation as follows: In lieu of the method first proposed, please assume that the City of Decatur will have the property within the program area which is to be conveyed for private re-use, to be appraised, and with HUD concurrence or approval, will compensate the general fund of the City of Decatur for the amount found to be the market value thereof out of federal funds made available for the program. The City, out of its general fund, will thereafter Hon. Bill J. Dukes Page Three set aside an equal amount for program use solely in the installation of public im- provements under the plan such as public streets, drainage and utilities. The re- sult of this methodology is that the pro- posed plan of making lots available at no cost in accordance with the plan continues under conditions stated therein, with federal funds used in accomplishing this purpose notwithstanding the fact that the City of Decatur will actually make the deeds to the individuals. Your second question is whether the City of Decatur is em- powered under state law and the Constitution of Alabama 1901 to proceed with this portion of the Vine Street Project. Again, your question is to be answered in the affirmative. A step-by-step analysis of your proposal reveals no obstacle to its implementation by the City of Decatur. A municipality may, for adequate consideration, dispose of any real property not needed for public or municipal purposes. Constitution of Alabama 1901, Section 94; Code of Alabama 1975, §11-47-20. The facts pre- sented in your request do show that the property is not needed for a public or municipal purpose and that adequate consideration will be received. Your request also shows, as a matter of policy, that monies received will be used for a lawful purpose. The final point which may properly deed property City will receive adequate funds, it is apparent that 94, supra. Therefore, the to individuals. must be considered is whether the city directly.to individuals. Since the consideration, in the form of federal there would be no violation of Section City may deed the property directly It is therefore, the opinion of this office that the City of Decatur is fully empowered under state law and the Constitution of Alabama 1901 to proceed as outlined in the request with the disposal of the property known as the former site of the Cherry Street School. In summary, it is the opinion of this office that under the facts presented in your request, Decatur is fully empowered to proceed with the community development program known as the Vine Street Project. Hon. Bill J. Dukes Page Four I do hope that this response fully answers your inquiry. If we may be of further assistance, please do not hesitate to call on us. Very truly yours, CHARLES A. GRADDICK Attorney General By-' aMAPA) CAROL JEAN SMITH Assistant Attorney General CJS/dwm Enclosure