|
Land Banking is one of several important tools that
are
part of the short and medium term solution to the stabilization
and revitalization of communities. Land banking provides some
of the following benefits:
| ● |
Securing and managing properties that have a 6-36
month time horizon to redevelop and dispose. The current LBA
policy restricts the land banking period to 3 years for
non-profits and 5 years for governmental entities. |
|
|
| ● |
Eliminates the tax burden for developers/owners
while the property is being redeveloped or assembled for
disposition. |
| |
|
| ● |
LBA has the ability to selectively extinguish
existing delinquent taxes on properties purchased by
stakeholders and banked with the LBA. |
| |
|
| ● |
Assists with assemblage of properties as part of a
comprehensive neighborhood stabilization and redevelopment plan. |
| |
|
| ● |
Expands the ability of developers to attack a
broader footprint within the community by phasing the
development efforts over an extended period and relying on the
ability the LBA to inventory property. |
| |
|
| ● |
Stakeholders can
acquire and demolish blighted structures that are
cost prohibitive to repair and bank and manage the
resulting vacant property. This can assist
with improving the visual presentation of the
neighborhood to current and potential residents. |
| |
|
| |
The LBA Board
adopted policies and procedures for Land Banking in December
2007. The expressed goals of the new policy were to:
| a. |
Permit advance acquisition of potential development sites
in anticipation of rapidly rising land prices; |
| |
|
| b. |
Facilitate pre-development planning, financing, and
structuring; |
| |
|
| c. |
Minimize or eliminate violations of housing and building
codes and public nuisances on properties to be developed for
affordable housing; and |
| |
|
| d. |
Hold parcels of land for future strategic governmental
purposes such as affordable housing and open spaces and
greenways.
|
| |
|
|
Copies of the full policy are available
for download here.
The LBA has recently taken steps to ensure that it has adequate
internal capacity to assist with large scale land banking. The
LBA completed the RFP process for identifying a third party
property management company to assist with the active management
of properties that will be banked with the LBA under the new
Land Banking policy. The engaged entities are the Land Bank
Authority Partnership (consisting of Smith Real Estate Services,
) and Fortis-Horizonz JV. These third party vendors enhance the
ability of the LBA to provide comprehensive property management
and maintenance services. This new capability is operational
and the LBA is currently actively banking property for
stakeholders.
Some of the
potential costs associated with land banking include initial
costs for securing and inspecting the property, monthly
maintenance costs (including lawn maintenance, debris removal,
monitoring and inspection, property insurance), closing and
transaction fees for documenting and closing the initial land
banking transaction, expanded property insurance and coverage of
internal LBA operating costs. The final schedule of fees will
be determined on a transaction specific basis. The LBA remains
sensitive to the cost element of this service and will attempt
to maintain all fees as low as possible.
Please
contact us if you are interested in this service option. |
