for presentation to the Utica Common Council (August 2011)

1. Land Banks
A New Option for New York
for presentation to the
Utica Common Council
by Pamela Jardieu (August 2011)

2. THE PROBLEM: VACANCY
# vacant lots
$ spent on demolition
# of vacant structure fires/ crimes
Vacant
property
Leads to out-
migration &
Crime
loss of tax base
revenue
Destabilize
Fire
neighborhoods
Blight scares
investors & Property
discourages devaluation
ownership
Vacant Properties Are a Public Health and Safety Issue
and Detract From Utica’s Welfare and Economy

3. 490 are owned by the City of Utica
97 are owned by the Utica Urban Renewal Agency
10 are owned by the City of Utica School District
8 are owned by the Utica Public Library
2 are owned by the Utica Industrial Development Agency
2 are owned by the Utica Parking Authority
ordered by size groups ordered by % of total area
# of lots area (ft^2) Area totals % total area # of lots area (ft^2) Area totals % total area
9 1000 4500 0.15% 9 1000 4500 0.15%
45 2000 67500 2.22% 3 11000 31500 1.04%
82 3000 205000 6.75% 5 10000 47500 1.56%
95 4000 332500 10.95% 5 12000 57500 1.89%
126 5000 567000 18.68% 45 2000 67500 2.22%
50 6000 275000 9.06% 8 9000 68000 2.24%
13 7000 84500 2.78% 10 8000 75000 2.47%
10 8000 75000 2.47% 13 7000 84500 2.78%
8 9000 68000 2.24% 6 15000 87000 2.87%
5 10000 47500 1.56% 10 20000 195000 6.42%
3 11000 31500 1.04% 5 40000 197500 6.51%
5 12000 57500 1.89% 82 3000 205000 6.75%
6 15000 87000 2.87% 50 6000 275000 9.06%
10 20000 195000 6.42% 11 30000 324500 10.69%
11 30000 324500 10.69% 95 4000 332500 10.95%
5 40000 197500 6.51% 7 60000 416500 13.72%
7 60000 416500 13.72% 126 5000 567000 18.68%
Total sq ft= 3036000
Total acres= 69.70
Vacancy Study, 2010
Rust To Green Utica

4. THE SOLUTION: A LAND BANK
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

5.  Acquisition of real property that is tax
"Land Bank Act”, signed 8/11
(same as a 373-a, s 5759)
Bill # S00663A
delinquent, tax
foreclosed, vacant, abandoned
 To
design, develop, construct, demolish, reco
nstruct, rehabilitate, renovate, relocate, a
nd 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

6.  Any foreclosing governmental unit may
create a land bank by the adoption of a local
"Land Bank Act”, signed 8/11
(same as a 373-a, s 5759)
Bill # S00663A
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

7. BANK FUNCTIONS
TYPICAL LAND
 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

8. Environmental:
BENEFITS
brownfields
remediation, l
ong-range
planning
Public Safety: Municipal
Budget:
nuisance
Land
abatement increased tax
crime, fire return
Housing:
expanded
Bank School
District:
potential, enhanced
homeownershi
p funding
Economic:
catalyst for
investment
Source: 2004 Kirwan Institute for Study of Race & Ethnicity, Ohio State University

9. Authority derived from the Land Bank
STRUCTURE
Act, operating under New York State
Urban Development Corporation
Board of
Directors
Type C not-for-profit
(some City
appointments)
Local agreements
External, Citizen advisory
with
non-city staff council
city, county, state
 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

10. FUNDING BLEND
Direct sales
50% of tax revenue collected for five Development/
years co-development
Rental income Municipal support (CDBG)
External grants & loans
(Federal, State, Local, Foundation)
Property management/
fee for service
Bonds &
investments

11. Adopt-A-Lot Sponsorships
IN UTICA
POTENTIAL IMPACT

 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

12. COMPARISON
LAND BANK URBAN RENEWAL
 Not-for-Profit  Public Authority
 Liquidation plus  Liquidation system only
 Quiet title process (i.e. “clean title”)  No ability to clean title
 Multi-jurisdictional partnerships  City only
 Community-based, less political  Political process, city staff & expenditures
 Can accept gifts, easements, tax liens  Cannot accept gifts, easements, liens
 Can assemble and hold parcels for  Cannot hold and assemble parcels
planned development  Cannot provide development funds
 Can provide development funds or loans  Can only apply for very limited
 Can apply for all external grant funding grants, usually with a partner or sponsor
 Can buy property before it becomes  Cannot buy property directly
unsalvageable  No independent audit; subject to NYS
 Regulated and overseen by external Comptroller& Authorities Budget Office
authorities; annual independent audit  Cannot bond for revenue
 Can issue bonds  No annual report, records subject to FOIA
 Annual report, open records and 2009 Public Authorities Reform Act
 Could pass property tax exemption act (PARA)
(sliding exemptions for a specified time)
 Could designate banked lands as
brownfields

13. 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=201
1

14. Source: NYS Authorities Budget Office