A proposal

I propose that the City of Fairhope issue a bond for the purpose of setting up a Legal Defense Fund. The LDF will in turn defend against lawsuits brought by developers. As to the amount of the bond, off the top of my head $20M seems about right, but that’s probably overkill. 2 or 3 million dollars ought to be enough; let’s say $4,000,000 to be on the safe side. My hope is that the money in the fund would never need to be used, but rather the mere existence of the fund would be enough to deter litigious developers, who would move on and go pick on other towns.

We spend millions on fire trucks and fire apparatus, and then pray that we will never use any of that equipment. No one considers that money to be poorly spent.

Our town is getting clobbered, and we need to lawyer up.

There will be lots of hurdles and challenges to overcome. Alabama follows something known as Dillon’s rule, which limits municipal authority to powers expressly granted by the state. I’m not so sure that such a bond could be issued without an amendment to the Alabama Constitution. The good news is, it’s not so very hard to amend the Alabama Constitution. It’s been amended so often that it is the longest written constitution in the world. In fact, it was amended recently for Baldwin County golf carts.

Anticipating the need for a Constitutional Amendment, I offer this draft version-

Draft Constitutional Amendment for Baldwin County: Legal Defense Fund Bonds

Proposed Amendment to the Constitution of Alabama of 2022

Baldwin County Local Amendments, Section [XX.XX] – Municipal Bonds for Legal Defense Funds

Section 1. Authorization to Issue Bonds
A municipality in Baldwin County may issue general obligation bonds, not to exceed ten million dollars ($10,000,000) in aggregate principal amount per municipality, for the sole purpose of establishing and maintaining a Legal Defense Fund to defend against lawsuits that seek to diminish the municipality’s character and charm, as defined by its zoning ordinances, environmental regulations, historic preservation policies, or other measures protecting community identity.

Section 2. Public Purpose
The establishment of a Legal Defense Fund under this amendment is declared to serve a public purpose by preserving the cultural, aesthetic, and environmental character of municipalities in Baldwin County, including but not limited to protecting historic districts, tree preservation ordinances, and sustainable development practices that reflect community values.

Section 3. Voter Approval
No bonds shall be issued under this amendment unless approved by a majority of qualified electors of the municipality voting in a referendum held in accordance with Section 222 of the Constitution of Alabama of 2022. The referendum shall specify the maximum amount of bonds to be issued, the purpose of the Legal Defense Fund, and the terms of repayment.

Section 4. Limitations and Requirements
(a) The total outstanding bonds issued under this amendment shall not exceed one percent (1%) of the assessed value of taxable property within the municipality, as determined by the most recent county tax assessment, or ten million dollars ($10,000,000), whichever is less.
(b) The annual debt service on such bonds shall not exceed five percent (5%) of the municipality’s annual operating budget.
(c) Funds from the Legal Defense Fund shall be used exclusively for legal expenses, including attorney fees, court costs, and related expenses, incurred in defending lawsuits that challenge municipal ordinances or policies intended to preserve the municipality’s character and charm.
(d) The municipality shall establish transparent procedures for administering the Legal Defense Fund, including annual reporting to the public on fund expenditures and litigation outcomes.

Section 5. Legislative Implementation
The Alabama Legislature may enact laws to implement this amendment, including regulations to ensure fiscal responsibility and compliance with state law, provided such laws do not impair the authority granted herein.

Section 6. Effective Date
This amendment shall take effect upon its approval by a majority of the qualified electors of Alabama voting in a statewide election, as provided by law.

Once we get all that out of the way and have a robust litigation war chest, we need to make sure that we have a City Council and a City Attorney that love to litigate, and if anybody messes with our character and charm, we will eat their dog.