Land BanksA New Option for New York

for presentation to the Utica Common Council

by Pamela Jardieu (August 2011)

Vacant Properties Are a Public Health and Safety Issue and Detract From Utica’s Welfare and Economy

Vacant property

Crime

Fire

Property devaluation

Blight scares investors &discourages ownership

Destabilize neighborhoods

Leads to out-migration &loss of tax

base revenue

# vacant lots$ spent on demolition# of vacant structure fires/ crimes

THE PROBLEM: VACANCY

Rust To Green UticaVacancy Study, 2010

A community-based legal and financial mechanism to acquire, assemble, temporarily manage, market and repurpose/dispose of vacant, abandoned or foreclosed property for the purpose of stabilizing neighborhoods to encourage and seed private redevelopment.

A tool for long-term community planning and development

Encourages redevelopment in older communities that generally have few large developable parcels left, or neighborhoods that have been blighted by out-migration of residents and businesses

THE SOLUTION: A LAND BANK

Bill #

S00

66

3A

(sa

me a

s a 3

73

-a, s 5

759

) "La

nd

Bank A

ct”, sign

ed

8/1

1

Acquisition of real property that is tax delinquent, tax foreclosed, vacant, abandoned

To design, develop, construct, demolish, reconstruct, rehabilitate, renovate, relocate, and otherwise improve real property & rights/ interests in real property

To inventory vacant, abandoned and tax foreclosed properties; to make a redevelopment plan

The land bank shall maintain and make available for public review and inspection a complete inventory of all property received (and dispensed)

A land bank shall neither possess nor exercise the power of eminent domain

Bill #

S00

66

3A

(sa

me a

s a 3

73

-a, s 5

759

) "La

nd

Bank A

ct”, sign

ed

8/1

1

Any foreclosing governmental unit may create a land bank by the adoption of a local law, ordinance, or resolution specifying:

(1) the name of the land bank;

(2) the number of members of the board of directors, which shall consist of an odd number of members, and shall be not less than five members nor more than eleven members;

(3) the initial individuals to serve as members of the board of directors, and the length of terms for which they are to serve;

(4) the qualifications, manner of selection or appointment, and terms of office of members of the board; and

(5) the articles of incorporation for the land bank, which shall be filed with the secretary of state in accordance with the procedures set forth in this chapter. See Legislative Summary for more

info

TYPIC

AL LA

ND

B

AN

K FU

NC

TIO

NS

Sell, lease, manage property Accept gifted property &

easements Convey property Property maintenance Real estate development Historic preservation Targeted demolition Land assembly for development Land use planning; anti-sprawl Multi-jurisdictional partnerships

Source: 2004 Kirwan Institute for Study of Race & Ethnicity, Ohio State University

BEN

EFIT

S

Land Ban

k

Environmental:

brownfields remediation, long-range planning

Municipal Budget:

increased tax return

School District:

enhanced funding

Economic:

catalyst for investment

Housing:

expanded potential,

homeownership

Public Safety:

nuisance abatement crime, fire

STR

UC

TU

RE

Policies and procedures determined and overseen by Board Transparent, based on robust public participation and open records Annual report by March 15 Conflict of Interest provisions

Authority derived from the Land Bank Act, operating under New York State

Urban Development Corporation

Type C not-for-profit

External, non-city staff

Citizen advisory council

Board of Directors (some City

appointments)

Local agreements

with city, county, state

FUN

DIN

G B

LEN

DDirect sales

Development/ co-development

Municipal support (CDBG)

External grants & loans

(Federal, State, Local, Foundation)

Property management/ fee for service

Rental income

50% of tax revenue

collected for five years

Bonds & investments

PO

TEN

TIA

L IMPA

CT

IN U

TIC

A Adopt-A-Lot Sponsorships Community Gardens/ Agriculture Side Lot Dispensation Foreclosure Prevention Targeted Demolition Historic Preservation Rental Management Property Maintenance “Clean And Green” Jobs Brownfields Cleanup Home Ownership “Right-Sizing” neighborhoods Infrastructure/ storm water management

green space Regionalization/ consolidation

demonstration project

LAND BANK Not-for-Profit Liquidation plus Quiet title process (i.e. “clean title”) Multi-jurisdictional partnerships Community-based, less political Can accept gifts, easements, tax liens Can assemble and hold parcels for

planned development Can provide development funds or loans Can apply for all external grant funding Can buy property before it becomes

unsalvageable Regulated and overseen by external

authorities; annual independent audit Can issue bonds Annual report, open records Could pass property tax exemption act

(sliding exemptions for a specified time) Could designate banked lands as

brownfields

URBAN RENEWAL Public Authority Liquidation system only No ability to clean title City only Political process, city staff & expenditures Cannot accept gifts, easements, liens Cannot hold and assemble parcels Cannot provide development funds Can only apply for very limited grants,

usually with a partner or sponsor Cannot buy property directly No independent audit; subject to NYS

Comptroller& Authorities Budget Office Cannot bond for revenue No annual report, records subject to FOIA

and 2009 Public Authorities Reform Act (PARA)

COMPARISON

For More Information: Empire State Future

http://www.empirestatefuture.org/ NYS Smart Growth Office

http://smartgrowthny.org/index.asp Center for Community Progress

http://www.communityprogress.net/ Smart Growth America

http://www.smartgrowthamerica.org/ National Complete Streets Coalition

http://www.completestreets.org/ Lincoln Institute on Land Policy

http://www.lincolninst.edu/ Genesee County Land Bank

http://thelandbank.org/Full legislation S00663 (A 373-A, S 5759)online at:http://www.assembly.state.ny.us/leg/?bn=S00663&term=2011

Source: NYS Authorities Budget Office