One community is fighting its problems of abandoned lands and unpaid property taxes. Those problems have led to a decaying inner city and increased suburban sprawl. The new tool the community is using is called a “land bank.” It uses a unique approach to try to fix up properties that otherwise often would be left to deteriorate. The Great Lakes Radio Consortium’s Chris McCarus reports:
One community is fighting its problems of abandoned lands and unpaid property taxes.
They’ve led to a decaying inner city and increased suburban sprawl. The new tool the
community is using is called a “land bank.” It uses a unique approach to try to fix up
properties that otherwise often would be left to deteriorate. The Great Lakes Radio
Consortium’s Chris McCarus reports:
(sound of work crews operating wood chipper)
Cleanup crews are sending downed branches through a wood chipper on a vacant lot.
They’re also removing tires, used diapers, car seats, sinks, old clothes and dead animal carcasses.
The workers are from the Genesee County Land Bank in Flint, Michigan. They’re trying to
make abandoned property useful again. Dan Kildee is the Genesee County Treasurer and the brains
behind the land bank. He thinks this new approach can recover unpaid property tax money and help
improve the Flint Metro area.
“The community gets to make a judgment on what we think we should do with this land. We get
to take a deep breath.”
Empty lots and rundown homes have been multiplying for a generation. That’s left the city of
Flint in a terrible economic state. But the land bank is beginning to change things.
Until just three years ago, Michigan was like most other states. No one had come up with
a solution. The state would auction off a city’s tax liens. Then conflict between the tax
lien buyer and the property owner could go on for up to seven years. In the meantime,
properties were left to neglect and often vandalized.
Under this new program, the treasurer’s office forecloses on a property and hands it over
to the land bank, which acts as the property manager. The land bank might then demolish
a house; it might throw out the owner and let a tenant buy it; or it might auction it off
to the highest bidder. A private investor can’t just buy a tax lien. He has to buy the
property along with it and take care of it.
The land bank is financed in two main ways: through fees on back taxes and through sales
of the few nicer homes or buildings the land bank acquires that bring in relatively big
profits. Treasurer Dan Kildee says it makes sense to take that revenue to fix up old
properties and sell them to people who deserve them.
“There is no system in the United States that pulls together these tools. Both the
ability to quickly assemble property into single ownership of the county, the tools
to manage it and the financing tools to develop that property.”
The land bank program hopes to change the perception of Flint. As thousands of abandoned
homes, stores and vacant lots become eyesores, people and their money go other places,
usually to build more sprawling suburbs. The perception that people are abandoning the
inner city then speeds up that abandonment. Many people who can afford to leave the city do.
And those who can’t afford to move are left behind.
According to data gathered by the research group Public Sector Consultants, Flint has the
state’s highest unemployment and crime rates and the lowest student test scores.
Art Potter is the land bank’s director. He thinks the downward spiral can be stopped.
When it is, those folks in the central city won’t have to suffer for still living there.
“Even though the City of Flint has lost 70,000 people in the last 30 years, the people who
are still here deserve to have a nice environment to live in. So our immediate goal is to
get control and to clean these properties now.”
Urban planning experts are watching the land bank approach. Michigan State
University’s Rex LaMore says Flint is typical of Midwestern cities whose manufacturing
base has shrunk. Private owners large and small have left unproductive property behind.
As the land bank steps in, LaMore says it’s likely to succeed and become an example that
other municipalities can follow.
“They can begin to maybe envision a city of the 21st century that will be different than
the cities of the 20th century or the 19th century that we see around the United States.
A city that reflects a more livable environment. So its an exciting opportunity. I think
we have the vision; the challenge is can we generate the resources? And the land bank model
does provide some opportunity to do that.”
But the land bank is meeting obstacles. For example, the new mayor of Flint who took over
in July canceled the city’s existing contracts. A conservative businessman, the mayor is
suspicious of the city’s past deals. They included one with the land bank to demolish 57
homes. This has slowed the land bank’s progress. Its officials are disappointed but they’re
still working with the mayor to get the money released.
(sound of kids chatting, then lawn mower starts up)
The weeds grow rampant in a neighborhood with broken up pavement and sometimes
no houses on an entire block. It’s open and in an odd way, peaceful. Like a
century-old farm. It’s as if the land has expelled the people who invaded with their bricks,
steel and concrete.
In the middle of all the vacant lots, Katherine Alymo sees possibilities.
“I’ve bought a number of properties in the auctions from the land bank and also got a side
lot acquisition from them for my house. My driveway wasn’t attached to my house when I
bought it. And it was this huge long process to try to get it from them. But they sold it
to me for a dollar. Finally.”
And since then, she’s hired people to fix the floors, paint walls and mow the lawns.
She’s also finding buyers for her properties who want to invest in the city as she has.
Together, they say they needed some help and the land bank is making that possible.
For the Great Lakes Radio Consortium, I’m Chris McCarus.
(lawn mower fades out)