Before we dive into the facts, I would like to share our thoughts on the Single Tax Corporation in our beloved Fairhope. Instead of looking at yourself as a “Lessee” , start to look at yourself as part of the community. Yes, you have a 99 year renewable lease on the land, but you also have ownership of improvements on the land and the lease is renewable to your heirs for another 99 years. Don’t let this scare you, instead walk with your head high around town knowing that you’re making a difference and helping the community with their latest and greatest additions, along with maintaining our beautiful area!
In November 1894, a group of 28 individuals, known as single-tax advocates, hailing from Des Moines, Iowa, led by Ernest B. Gaston, embarked on a mission to establish a community based on the economic principles espoused by economist, journalist, and social reformer Henry George. These principles were articulated in George’s book, “Progress and Poverty,” first published in 1879. To bring their vision to life, they formed the Fairhope Industrial Association in Iowa and, after thorough research, selected the Eastern Shore of Mobile Bay as their desired location. With their combined resources, they began acquiring land, although their choices were limited to what was available for sale, resulting in the scattered ownership of Colony property.
Once they had procured as much land as possible, the Fairhope Industrial Association implemented a unique system: leasing the land to settlers through 99-year, renewable leases. Under this arrangement, the lessees gained ownership of all the improvements made on the land. The theoretical aim was to charge lessees an amount equivalent to the full rental value of the land, in accordance with Henry George’s ideals, though this practice was not consistently applied. Subsequently, in 1904, the Fairhope Single Tax Corporation was officially incorporated in Alabama.
A distinctive aspect of Fairhope is the abundance of parkland and public access to the bayfront. The original single-tax colonists recognized the importance of communal enjoyment of these public spaces. In the 1930s, the Colony transferred ownership of all the parks, the Fairhope Pier (the Wharf), original community utilities, and community infrastructure like streets, sidewalks, and alleys to the City of Fairhope, with the condition that these lands could only be used as public parks. The bayfront, in particular, was to be shared by the entire community. Therefore, all the bayfront and numerous nature parks throughout the city were deeded to the City of Fairhope in the 1930s, ensuring their preservation for the benefit of all as public parks.
The Fairhope Single Tax Corporation still retains ownership of approximately 4,500 acres of land within and around Fairhope, encompassing both areas within and outside the city limits, constituting about 20% of Fairhope’s total land. Lessees continue to hold the land under 99-year leases and possess full ownership of any improvements they make. The rent charged to lessees for the leased land includes taxes on both the land and improvements, an administrative fee to support the operation of the Single Tax Corporation office, and a demonstration fee calculated based on the appraised value of the land. The demonstration fee is utilized by the Fairhope Single Tax Corporation to illustrate the benefits of the single-tax concept by contributing to community projects such as public parks, the public library, the historical museum, community sidewalks, the hospital, and various other infrastructure projects. The majority of Colony-owned land is concentrated in the downtown area and expands eastward in the vicinity of Fairhope Avenue. The City of Fairhope, which was incorporated in 1908, governs the city through an elected Mayor and five City Council Members.
Today, the Fairhope Single Tax Corporation, also known as the Colony, operates as a 501(c)(4) not-for-profit corporation within the City of Fairhope. This status, granted on November 7, 2003, signifies recognition by the Internal Revenue Service as an organization committed to promoting social welfare and the common good of the community.
This information has been sourced from the Fairhope Single Tax Corporation.
