The History of the Marquette County Land Bank Authority Dickinson - - PowerPoint PPT Presentation

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

• nce-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

• wning 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

• pportunities and revitalizing communities.
• Created May, 2009
• 5 member board (started with 3)
• Staff support from County (used to be

County Treasurer)

Initial Mission Statement

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 parcels acquired Blighted structures demolished Side lot transfers to adjoining property

• wners

Sales to private

• wnership

Transfers to local units of government Currently retained by Land Bank/Availa ble for sale 2009 7 3 2 2 2 1 2010 18 6 6 11 6 2011 19 6 3 7 2 10 2012 11 4 7 3 10 2013 8 17 2 12 2014 15 1 5 1 16 2015 15 12 3 4 21 2016 28 8 5 3 32 2017 23 22 6 9 55 2018 21 10 7 9 46 2019 9 13 7 5 36

TOTAL 174 102 51 56 4

Partnerships

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

• utweighs

any reduction and improves neighborhoods.

Working with municipalities to eliminate blight

Making it Work:

CITY OF ISHPEMING CITY OF NEGAUNEE TILDEN TOWNSHIP FORSYTH TOWNSHIP

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

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.

Hema Hematit tites es Building Building Bet Better ter Neighbor Neighborhoods hoods

Purchase price of home $30,000 Sales price of home $90,000 Total renovation costs $75,573 Grant funds received $75,000 Funds provided to program $50,000 Funds retained for future purchase $30,000

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