The proposed districts
Mobile is considering two tax-increment financing districts. The South Riverfront district would cover land south of downtown on both sides of the Mobile River, along the I-10 corridor south of Canal Street and west of Broad Street. The Midtown/I-65 district would extend along the interstate’s east side from the city’s northern boundary to Government Boulevard/U.S. 90. Its boundaries also take in parts of Midtown described by Mobile Street, Three Mile Creek, North Florida Street, Carlen Street, Spring Hill Golf Course, Montlimar Creek, Downtowner Boulevard and Pleasant Valley Road, according to AL.com.
The city plans to release more detailed maps and informational videos in the coming weeks, ahead of a public hearing scheduled for October 27. Both districts would need approval from the Mobile City Council and support from the Mobile County Commission and local school board. That support is required because future tax-revenue increases within the districts would go to district projects rather than those entities’ general funds, AL.com reported.
What the change in state law allows
Alabama House Bill 567 increased the share of a Class 2 municipality’s taxable property value that can be included in TIF districts from 10% to 50%. The 10% cap remains for most Alabama municipalities. Introduced in April 2025, the change took effect October 1, according to the Alabama Legislature and AL.com. Mobile is a Class 2 municipality.
TIF does not raise tax rates. Instead, future growth in property-tax revenue within a district is used for projects there, while the existing tax base continues to support general funds. Alabama districts generally last 30 years. If approved, the proposed districts would join Mobile’s downtown and Dauphin Island Parkway districts. The downtown district began in 1993, was extended in 2023 and is scheduled to continue through September 2038, AL.com reported.
What a prior district’s revenue estimate shows
For Mobile’s Dauphin Island Parkway district, officials projected $20 million in revenue over its 30-year term when the County Commission approved the district in February 2023, FOX10 reported. That figure is a projection, not a total of revenue actually generated, and does not by itself show actual collections or provide a project-by-project account of spending.
Existing work and the proposal’s stated purpose
Mayor Spiro Cheriogotis has said the proposed districts are intended to encourage investment in economically distressed and underdeveloped areas. He cited past work in Mobile’s existing districts, including streetscape projects and façade grants, as well as improvements to the Saenger Theatre and Bienville Square and the Mobile Hall of Fame Walk, according to AL.com.
Councilman Cory Penn also voiced support, saying the proposal could provide an opportunity to invest in neighborhoods and strengthen the business corridor, AL.com reported. The proposals still require the public process and approvals outlined above.
