vacant land assessment concept
TRANSCRIPT
- 1. Vacant Land Assessment Concept City of East St. Louis, IL PGAV URBAN CONSULTING AND HINSHAW & CULBERTSON
2. Vacant Land Issues
- Half of the Citys taxable land consist of vacant land
- Vacant land generates little tax revenue
- Even with population loss essential services remain the same:
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- Same lineal miles of streets to patrol
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- Same lineal miles of streets & utilities to maintain
3. Vacant Land Issues
- Has attracted illegal dumping
- City constantly mowing weeds and cleaning up vacant lots
- Diversity of ownership both resident and non-resident
4. Vacant Land Analysis 5. 6. 7. 8. 9. 10. 11. Who owns this vacant land? 12. 13. 14. 15. Vacant Land Assessment 16. Goals
- Raise revenue for essential public services
- Discourage land banking/speculation
- Encourage conversion of vacant land into more productive improved land
17. Proposal
- Fee for essential public safety services
- Based on quantity of vacant land (e.g., $0.03 per square foot)
- Apply to all vacant land regardless of ownership or tax status
- Assessed & collected annually
- Administrative appeals procedures
18. Cost to Vacant Land Owner
- 5,000 sq. ft. lot (50 x 100):
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- @ $0.01/sq. ft.: $50.00
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- @ $0.02/sq. ft.: $100.00
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- @ $0.03/sq. ft.: $150.00
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- (5) 5,000 sq. ft. lots:
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- @ $0.01/sq. ft.: $250.00
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- @ $0.02/sq. ft.: $500.00
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- @ $0.03/sq. ft.: $750.00
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19. Cost to Largest Vacant Land Owner *
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- @$0.01/sq. ft.: $32,000
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- @ $0.02/sq. ft.: $64,000
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- @ $0.03/sq. ft.: $96,000
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- * Bi-State Truck Repair, L. Sinn, et. al.
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20. Special Provisions
- Cap ESL resident owner payment ($250)
- Exempt vacant lots used as a unified whole with adjoining owner-occupied residence(consolidate PINs with County)
- Exempt unsold developer lots for 2 years
- Other exemptions as deemed appropriate by City
21. Potential Revenue Generation
- @ 80% Collection Rate:
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- $0.01/sq. ft.: $675,000
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- $0.02/sq. ft.: $1,350,000
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- $0.03/sq. ft: $2,025,000
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- @ 60%Collection Rate:
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- $0.01/sq. ft.: $500,000
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- $0.02/sq. ft.: $1,000,000
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- $0.03/sq. ft: $1,500,000
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22. Challenges / Obstacles
- Self administration (County wont help)
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- More costly & less efficient
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- Collection rate likely to be lower
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- Likely to be legally challenged
- Reliance on a specific revenue amount cant be counted on until in place for several years
23. Final Notes
- It isHIGHLY RECOMMENDEDthat the vacant land assessment is implemented AFTER implementing property tax relief reform (TIF district reductions).
- Voter repercussions likely without property tax relief FIRST!