After more than a year of talks, Allen County is close to approving a land bank.
County commissioners met Tuesday with Jonathon Goering of Thrive Allen County as he puts the finishing touches on a land bank proposal, seen as a tool for attracting developers.
Under a land bank, a city or county has the power to remove delinquent tax obligations on abandoned property so that it can be transferred to a new owner without that financial burden. It makes the property more appealing to developers, and in some cases the government may sell it for a minimal amount, such as $1.
Officials in Iola, Humboldt, Gas, LaHarpe and Mildred have expressed interest in participating.
“The interest is there,” Goering told commissioners last week. He followed up Tuesday with a draft of the resolution, which will be reviewed by County Counselor Bob Johnson before commissioners consider its approval.
Maintenance is a big issue, for the county as well as the cities. If a property is added to the land bank, it will need to be mowed or otherwise maintained. The cities understand they may need to take on that responsibility, Goering said. He suggested the county could develop interlocal agreements that spell out such issues.
Commissioners have always been reluctant to add a property to a land bank until there is interest from a developer. That way, the county would become a sort of “pass-through” owner to help developers avoid lengthy legal entanglements with property taxes and the like.
That could become a bit more cumbersome when more entities are involved, such a property within city limits. Commissioners don’t want to be solely responsible for a large number of properties, and want cities to help with theirs.
“I’m OK with acquisition and maintenance discussed on a case-by-case basis before each property is acquired, as long as we’re involved in that discussion,” Chairman Jerry Daniels said.
“Well, the intent of a land bank is not to pretend parcels are baseball cards and have as many as possible,” Goering said. “We want to be smart, find the ones that make sense and get them a product they can use. It’s just one more tool in our toolbox.”
It’s important to have the land bank in place and available as an incentive for developers, Goering said.
When Goering presented the draft of the resolution to commissioners on Tuesday, they were concerned that the language about adding properties and working with cities “on a case-by-case basis” was a little too vague and would allow too much leeway.
“The way it’s written is pretty ambiguous,” Johnson said. “We can put some teeth in it.”
