Land Bank Basics & The History of the Marquette County Land Bank Authority Dickinson County March 10, 2020 Anne Giroux, Director Marquette County Land Bank Authority
Creation of Land Bank Authorities in Michigan In 2003, the governor signed into law the Land Bank Fast Track Act P.A. 258. ▪ The legislation established the State Land Bank Authority, which serves counties where the state acts as the foreclosing governmental unit (FGU). ▪ The legislation also allowed the creation of land banks at the county level. Under the legislation, land banks were given important tools including: ▪ The ability to acquire, hold and dispose of properties ▪ The power to pursue expedited quiet title ▪ The room to be creative in finding new productive uses for once-forgotten property
With this legislation, Michigan opened the door for communities to reclaim, reinvest in and rebuild their neighborhoods. Land Banks are designed to: ▪ Promote economic growth ▪ Receive, acquire, hold, manage, develop and sell/convey property, including tax-foreclosed property ▪ Facilitate the re-use of vacant, blighted, obsolete and abandoned properties ▪ Eliminate loss of local control due to typical property tax auction sales ▪ Eliminate low-end speculation ▪ Assemble land for redevelopment ▪ Support local priorities and land-use plans ▪ Support local affordable housing initiatives ▪ Increase land sale proceeds due to higher property values ▪ Facilitate demolition and blight removal ▪ Layer with other redevelopment tools, i.e., Brownfield ▪ Generate future revenue with 5/50 Eligible Tax Reverted Property Specific Tax
Land Bank Authorities in Michigan Michigan has a State Land Bank Authority that “works in a coordinated manner to foster the development of property to promote and support land bank operations at the county and local levels.”
How do Land Banks Acquire property? • Tax Foreclosed Property ▫ Prior to Auction or post Auction • Non Tax Foreclosed Property How do Land Banks dispose of property? • Priorities & Policies • Title issues • Side lot sales
Funding • Foreclosure/Tax Reversion Fund • Property Sales • 5/50 • Grants • Brownfield TIF There are many costs to consider when owning property – whether it is vacant or has a structure!
Mar Marquette quette County County Land Land Ban Bank A k Autho uthority rity The mission of the Marquette County Land Bank Authority is to work collaboratively with local governmental units and community organizations, in determining the best way to return tax-foreclosed properties to the tax roll, while eliminating blight, providing affordable housing and economic development opportunities and revitalizing communities. • Created May, 2009 Initial Mission Statement • 5 member board (started with 3) • Staff support from County (used to be County Treasurer)
Why was a Land Bank Authority created in Marquette County? • To prevent tax foreclosed properties from reverting over and over again • To prevent nuisance, blighted structures from ending up in the wrong hands • To allow for side lot transfers to interested parties • To provide the necessary tools to deal with problem properties
10 years later, how is the Land Bank Authority being used? • Demolition – still doing it, but not as much funding available. • Affordable housing opportunities (changed the way we look at side lot sales) • Vacant space redevelopment • Property acquisition – reaching out beyond tax foreclosures to facilitate economic development ★ $1,389,000 in grant funding for blight elimination ★ 2009 fund balance = $609; 2018 fund balance = $150,000
Year Number of Blighted Side lot Sales to Transfers to Currently parcels structures transfers to private local units of retained by acquired demolished adjoining ownership government Land property Bank/Availa owners ble for sale 2009 7 3 2 2 2 1 2010 18 6 6 11 0 6 2011 19 6 3 7 2 10 2012 11 4 7 3 0 10 2013 8 17 0 2 0 12 2014 15 1 5 1 0 16 2015 15 12 3 4 0 21 2016 28 8 5 3 0 32 2017 23 22 6 9 0 55 2018 21 10 7 9 0 46 2019 9 13 7 5 0 36 TOTAL 174 102 51 56 4
Partnerships Making it Work: Working with municipalities to eliminate blight CITY OF ISHPEMING TILDEN TOWNSHIP CITY OF NEGAUNEE FORSYTH TOWNSHIP Several municipalities have recognized the importance of eliminating blight and have shared in the cost of demolition of blighted structures with the land bank. They understand that while demolition temporarily removes tax base, the long term increase in taxable value of the surrounding properties far outweighs any reduction and improves neighborhoods.
Key Partner: Marquette County Habitat for Humanity 430 Bluff, Marquette City 207 Maple, Ishpeming City
Using Brownfield Tools on Land Bank Properties Spring Street Project 423 and 425 W. Spring Street, Marquette. Through a partnership with Habitat for Humanity and by utilizing the tax increment financing tools available through the newly created Marquette County Brownfield Redevelopment Authority, the Land Bank was able to demolish the two blighted structures and sell the property to Habitat, where a new duplex residential unit has been built which has provided two families with new homes.
Using Brownfield Tools on Land Bank Properties West Ishpeming School Project The Marquette County Treasurer foreclosed on the vacant West Ishpeming School in 2010. The school was a hazard to the health and safety of the surrounding neighborhood. ▪ Brownfield Plan was adopted 9/21/10 ▪ School was demolished in 2010 ▪ It was projected the Land Bank would be fully reimbursed for the demolition through the Brownfield Plan in 23 years (2033). Assumptions: ▪ 10 homes would be built on 75’ x 100’ lots ▪ Lots would be sold for $5,000 ▪ Taxable Value of new homes would be $40,000
West Ishpeming School Project – Results Project Investment: ~$500,000 (to date) Land Bank Authority Reimbursement (over 23 years): ~$193,000 Property Area: 2 acres New Jobs: N/A Funding Sources: ▪ Marquette County Brownfield Redevelopment Authority ▪ Marquette County Land Bank Authority (County Treasurer Foreclosure Fund) Project Partners: ▪ Marquette County Brownfield Redevelopment Authority ▪ Marquette County Land Bank Authority ▪ Ishpeming Township
Vacant Lot Development Partridge Creek Farms - Hematite Art Park
Using the Land Bank to acquire property that needs environmental remediation Land Bank received $200,000 from DEQ/EGLE – environmental testing, tank removal, soil removal, demolition
Hematit Hema tites es Building Building Bet Better ter Neighbor Neighborhoods hoods Beginning in January 2016, the students in the Advanced Construction classes at Ishpeming High School began renovating this house on behalf of the Land Bank. It was completed and sold in 2019. Sales price of home $90,000 Purchase price of home $30,000 Funds provided to program $50,000 Total renovation costs $75,573 Funds retained for future purchase $30,000 Grant funds received $75,000
Housing Initiatives Osprey Court
THANK Y THANK YOU! OU! Anne Giroux Marquette County Finance Manager Director, Marquette County Land Bank Authority Director, Marquette County Brownfield Authority 234 W. Baraga Ave. Phone: (906) 225-8177 E-mail: agiroux@mqtco.org Websites: landbank.mqtco.org brownfield.mqtco.org
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