(a)   All property of the City, including funds owned or held by it for the purposes of this chapter, shall be exempt from levy and sale by virtue of an execution and no execution or other judicial process shall issue against the same nor shall judgment against the City be a charge or lien upon the property. However the provisions of this section shall not apply to or limit the right of obligees to pursue any remedies for the enforcement of any pledge or lien given pursuant to this chapter by the City on its rents, fees, grants or revenues from urban renewal or urban development projects.
   (b)   The property of the City, acquired or held for the purposes of this chapter on January 1 of any year, is declared to be public property used exclusively for essential public and governmental purposes and the property shall be exempt from all taxes of the City, County, State or any taxing authority thereof. However, tax exemption shall terminate when the City sells, leases or otherwise disposes of the property in the project area to a purchaser or lessee which is not a person, corporation, partnership or other association entitled to tax exemption with respect to such property.
(1980 Code 38.13; Ord. 5777)