County Hears From Land Banking Expert By: Eric Tichy, The Post-Journal

Kildee has been using his first-hand knowledge of blight to promote land banks, a process in which government entities seize foreclosed properties in hopes of eventually returning them to their respective tax rolls. Kildee, co-founder and president of the Center for Community Progress (CCP), brought that message to Chautauqua County recently.

"I think what you have here is the chance to add a lot of value to this growing movement of communities developing land banks to deal with distressed properties across the whole country," Kildee said in a Department of Planning and Economic Development meeting.

The CCP has been consulted by Empire State Development to assist communities pursue the state's newly-enacted land bank status - an act put into place by Gov. Andrew Cuomo this past July. The state has announced that five land banks will be offered this March, with another five coming later this year.

"We want to be one of those 10 land banks," said Mark Geise, deputy director of Planning and Economic Development for the county. "I hope what you get out of this is that it's a good idea that we ought to pursue it and that we have the ability to really do this thing and change what is currently going on with our housing stock in this county."

In 2002, Kildee developed the first land bank in Michigan, the fifth such development in the country; Michigan now has 41 land banks, many of which are attributed to Kildee's assistance. In total, there 82 land banks in the country.

"He really kind of pioneered this new paradigm for land banks and travels all over the country, maybe world, talking about land banks," Geise said. "Google land banks and Dan's name comes up."

CHAUTAUQUA COUNTY PROPOSAL

Geise outlined the county's bid to obtain one of the state's 10 future land banks. Part of that proposal, he noted, involves creating a "county-wide, state-designated land bank to control and manage strategically selected dilapidated residential and commercial properties granted to the agency by the county from the tax foreclosure process."

To make that bid more attractive, Geise said, the county needs to garner support from surrounding municipalities. If all towns, villages and cities were to write a letter of intent to support a land bank, it would help the county in its application, he noted.

The county-proposal includes seven missions for a county land bank:

1. Create a new paradigm for how foreclosed properties are managed in Chautauqua County to reverse the trend of further deterioration of the housing and commercial stock.
2. Control and modestly improve promising properties so that we can find reputable buyers.
3. Return improved properties to the tax roll and productive use via sales and grants.
4. Collaborate with municipalities, housing-related agencies and the private sector to improve good structures.
5. Leverage internal resources with external resources to effectuate significant change.
6. Make it affordable for reputable entities to acquire properties at a reasonable cost.
7. Bank properties that may fulfill a recognized future need.

"We really need a good balance for this to make sense," Geise said of partnering with surrounding municipalities. "We have to use our existing resources."

CHAUTAUQUA COUNTY BLIGHT

Geise said there are an average of 380 properties that are foreclosed in Chautauqua County every year. Of those properties, he said, 330 are typically sold at auction, with the balance either sold at an RFP (request for proposal) sale or remain foreclosed.

Geise added that if the county was approved for a land bank, year one would see the county likely to obtain six properties; year two would see that number grow to 12; and in year three, up to 18 properties.

"We're trying to show the state that we're working within our means," Geise said. "We want to start off reasonably low and work our way up."

STANDING OUT

So how does the county stand out to receive the land bank status?

"Every community I visit is different," Kildee said. "Every one of them has different challenges. I can tell you with certainty I've never been to a community quite like yours."

Kildee said the level of abandonment in Chautauqua County is considerably less than that of many municipalities in the country. That, he said, may help the county stand out for the state land bank status, which can help the county receive state and federal grant funding.

"Despite the fact you don't have wholesale abandonment and blight at a level like most of the communities we see," he continued, "you're still thinking about how to deal with this problem so you never will get to the point to have contagious blight overtaking your community."

Communities such as Buffalo, Erie County, Rochester, Syracuse and Binghamton have all shown interest in receiving the land bank status. Those communities have far more blight than Chautauqua County, however, state officials may look at smaller areas to test the program.

"You guys will have a good chance to stand out because they will look to spread out the types of land banks," Kildee said.