Montgomery County Land Reutilization Corporation (MCLRC) Board Meeting November 17, 2014

Transcription

1 Montgomery County Land Reutilization Corporation (MCLRC) Board Meeting November 17, 2014 Attendees: Carolyn Rice, Treasurer (Chair of the Board) Doug Harnish, Principle, Market Metrics (Vice Chair) Scott Paulson, Trustee, Washington Township (Board Member) Nan Whaley, Mayor, City of Dayton (Board Member) Sheila Crane, Realtor/Community Development Specialist, HER Realtors (Board Member) Mike Grauwelman, MCLRC (Executive Director) David Williamson, MCLRC (General Counsel) John Theobald, Commission Aide to Debbie Lieberman (Commission Representative) Cathy Startzman, Commission Aide to Judy Dodge (Commission Representative) Angela Lilly, Montgomery County Treasurer s Office (Secretary) Sam Braun, Finance Manager, Montgomery County Auditor s Office Aaron Sorrell, Director of Planning & Community Development, City of Dayton Anita Smultz, MVFHC, Fair Housing Analyst Absent (Copies To): Debbie Lieberman, Montgomery County Commissioner (Board Member) Judy Dodge, Montgomery County Commissioner (Board Member) Paul Robinson, Chief Deputy Treasurer, Treasurer s Office (Treasurer) Call to Order Carolyn Rice, Chair of the Board, noting a quorum, called the meeting to order at 3:35 p.m. A copy of the agenda is attached for reference. Approval of Minutes Nan Whaley moved to approve the October 21, 2014 Board meeting minutes. The motion was seconded by Sheila Crane and approved unanimously by voice vote. Treasurer s Report Mike Grauwelman presented the Treasurer s Report (see attached), which shows an ending balance of $900,886. Per Mike Grauwelman, Tracy Schultz at CountyCorp is now handling the accounting for the land bank noting that the report provided is laid out differently than in the past. In terms of monthly expenditures, the biggest items are the payables associated with the hosting services provided by CountyCorp, and Nip related expenses. The new report lists grants payable, which totaled $385,000. The accounts payable charge for the Clerk of Courts covers work associated with the NIP properties and the charge for CountyCorp covers the work associated with the Moving Ohio Forward Program. Sheila Crane moved to approve the Treasurer s report. The motion was seconded by Scott Paulson and approved unanimously by voice vote.

2 Executive Director Agenda Review Per Mike Grauwelman, there are three items that require Board action. The first item will be the CountyCorp Land Banking Pilot program. The second item is the receipt by donation and ultimate transfer of 22 Garrett St. in Dayton. The third item for discussion is the 2015 objectives. Finally, the 2015 budget, 2014 accomplishments, committee reports, and the NIP program will be reviewed New Business Item No. 1 - CountyCorp Land Banking Pilot CountyCorp has been paying real estate taxes on approximately twenty properties they have been acquiring in the Fort McKinley area and are a good candidate for a land banking pilot program. CountyCorp is a county agency, therefore would be an affiliate to the Land Bank and would be eligible for the program. The plan involves a strategic assembly of properties expected to be executed in five years and partners with Harrison Township, Oberer, and New Path Social Services. The role of the land bank would be the administrative holder of the properties. There is no acquisition as CountyCorp already owns the property and there is no maintenance required because CountyCorp already maintains the properties within their own organization. The original structure suggested for this pilot would be for CountyCorp to pay administrative / direct costs plus half the tax liability they would otherwise have to pay. The estimated yearly tax is approximately $30,000; so CountyCorp would look at a savings of $15,000 per year. After extensive discussion, the Board decided to set the structure of this pilot program to charge a negotiated administrative fee. Doug Harnish moved to accept the Land Banking pilot project with the fee to be negotiated by the administrator. The motion was seconded by Nan Whaley and approved unanimously by voice vote. See attached Board Memo for program details. New Business Item No. 2 Donation and Transfer 22 Garrett Street, Dayton The current owner of 22 Garrett Street lives out of state and wants to donate the property to the Land Bank. The real estate taxes are current; however there are some title issues that need to be resolved. A local community group would like to acquire the property and has paid a $2,000 fee to cover the administrative costs of the transfer. Nan Whaley moved to accept the donation and transfer of 22 Garrett Street. The motion was seconded by Sheila Crane and approved unanimously by voice vote. See attached Board Memo for request details. New Business Item No Objectives The Board reviewed the 2015 objectives. Mike Grauwelman reviewed the objectives and metrics provided in the attachment pointing out specific activities such as: the hiring of program managers to support the new programs, marketing, communication, measuring the success of the programs, and client satisfaction. Nan Whaley moved to approve the 2015 objectives. The motion was seconded by Doug Harnish and approved unanimously by voice vote. See attached 2015 Objectives and Metrics outline for details. Other Business 2015 Budget & Assumptions The adoption of the 2015 objectives will serve as a foundation for the creation of the 2015 budget.

3 Other Business 2014 Accomplishments The Executive Director indicated that upon being hired he was tasked with a number of items including: acquiring funds, managing the grant program, evaluating the existing tax foreclosure processes, and learning what authorities are provided to the land bank under the Ohio Revised Code. He then reviewed with the Board the accomplishments for 2014 including: the Neighborhood Initiative Program, review of existing and future programs, administrative and legal tasks, and creation of a property tracking system. Nan Whaley moved to accept the accomplishments of The motion was seconded by Sheila Crane and approved unanimously by voice vote. See attached 2014 Accomplishments outline for details. Other Business Neighborhood Initiative Program Mike Grauwelman provided an update on the NIP program. There are two properties that were acquired for demolition and two individuals have asked the Land Bank to remove the properties from the program in order to rehab. Donations have slowed considerably. 280 properties have been submitted for tax foreclosure. 38 have been rejected for title issues, which leaves 242 properties. 172 of those cases have been adjudicated and 70 cases are still pending. The foreclosure process is taking approximately five months from start to acquisition; however this time may slow down. The targeted demolition number was 278 properties. Additional properties are lined up to be submitted to the program, however, due to budget constraints, communities are holding back until the original submissions have cleared and a better understanding of remaining budget resources is understood. Five RFQ s were submitted by remediation contractors and all five meet the Land Bank s qualifications. The remediation contractor RFQ s are due December 8 and in late December, agreements will be created. There are seven demolition contractor submissions ready to be reviewed. February 2015 should start seeing demolition activities begin. Committee Reports Steering Personnel no report at this time. no report at this time. Announcement The next board meeting is scheduled for Tuesday, December 16, Call to Adjourn There being no further business, Nan Whaley moved to adjourn the meeting. The motion was seconded by Scott Paulson and the meeting was adjourned at 5:05 p.m. I hereby certify that the minutes related to the Board of Directors monthly meeting of November 17, 2014 set forth above are the minutes approved by the Board of Directors at their meeting of December 16, /s/ Angela Lilly Angela Lilly, Secretary Montgomery County Land Reutilization Corporation

4 Board Meeting Agenda Montgomery County Land Reutilization Corporation Monday, November 17, 2014, 3:30 pm Montgomery County Treasurer s Office Call to Order: Chairman, Carolyn Rice Roll Call: Approval of Minutes: October 21, 2014 Treasurer s Report Monthly Financials (Attached) Executive Director Agenda Review Old Business: New Business: Item No. 1 County Corp Land Banking Pilot (Attachment) Presentation and Discussion Motion to Approve Item No. 2 Donation and Transfer 22 Garrett Ave., Dayton (Attachment) Presentation and Discussion Motion to Approve Item No Objectives (Attachment) Presentation and Discussion Motion to Approve Other Business: Discussion Items: 2015 Budget & Assumptions 2014 Accomplishments (Attachment) Committee Reports Moving Ohio Forward Neighborhood Initiative Program Next Meeting: Tuesday, December 16, 3:30 pm Adjourn

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6 To: MCLRC Board of Directors From: Mike Grauwelman, Executive Director Date: November 13, 2014 Subject: Agenda Memo This month s agenda includes a Land Banking pilot, donation and immediate transfer of property, a sampling of the 2015 organizational objectives and budget process, and a review of the 2014 accomplishments. New Business: Item No. 1 County Corp Land Banking Pilot Action Requested: Approval to run the Land Banking program pilot with County Corp. Steering Committee Recommendation: Approval Management Recommendation: Approval DESCRIPTION: This program is intended to enable Land Bank MOU communities (and its agents) to Bank properties for strategic purposes. The program will provide financial and technical support allowing these organizations to focus on roles directly related to their goals, objectives, and neighborhood stabilization strategies. In this instance County Corp has made the request of the Land Bank to Bank properties. County Corp is an eligible participant under the program as an agent of the county. The request is to bank approximately 20 properties previously acquired by County Corp located in the Fort McKinley area. These properties have been assembled as a part of a redevelopment plan / effort for the area. The program guidelines require that a plan be in place to utilize the program. Under the terms of the agreement, County Corp intends to assume all maintenance responsibilities removing any need to negotiate service levels or fees. The Land Bank will insure the property and pass this expense onto County Corp. The amount of annual taxes is for the preliminary list is in excess of $30,000, and one half would be paid to the Land Bank as a fee under a Land Banking Agreement. With this request we enter into the area of financial risk associated with failed redevelopment efforts. The properties are a part of an existing portfolio and will provide some good data to evaluate the program and the level of effort necessary to process properties. Item No. 2 Donation and Transfer of 22 Garrett Ave., Dayton Action Requested: Approval to Acquire and Transfer 22 Garrett Street Steering Committee Recommendation: Approval Management Recommendation: Approval 1

7 DESCRIPTION: The owner of 22 Garrett Street inquired to the Land Bank if it had an interest in the subject property. The owner lives out of state and has found maintaining the property a challenge, and has received housing citations from the City. In an attempt to assist the owner, the Land Bank contacted the City of Dayton to see if there was an active community group, investor, neighborhood champion, or individual with whom the Land Bank could work to secure the future of the property. The City provided a contact and effort s were then made to determine if the transaction could be completed. Upon the completion of title work several items had to be addressed, and the property is nearly ready for transfer. This request is to permit the transfer to the Land Bank and immediate transfer to the community group. A fee has been provided by the community group to finance the effort. Item No Objectives Action Requested: Approval of the 2015 Objectives Steering Committee Recommendation: Approval Management Recommendation: Approval DESCRIPTION: As a part of the discipline of the organization to insure clarity of purpose and direction an annual set of objectives for the organization is being provided for the Board discussion and endorsement. This list is considered as the starting point for the annual budget process. It is broken down into categories and includes metrics to measure progress. Given the short history of the organization many of the metrics are difficult to establish. However, it important to establish a results culture early in the development of the organization. It is anticipated that during the course of the year reports on the progress made in each of the major areas will be provided to keep the Board abreast of those areas of success and challenges. Attached to this memo is the list and accompanying metrics for your review. Since the document does not contain significant detail, we will review it during the meeting. Other Business 2015 Budget & Assumptions DESCRIPTION: This discussion is simply intended to describe to you how the budget process will proceed Accomplishments (See Attachment) DESCRIPTION: Attached is a document intended to provide the Board with a summary of the organization s 2013 accomplishments. The document was requested by the Chair in order to evaluate the productivity of the Executive Director, but has the added advantage of allowing the Board the opportunity to assess the direction of the organization. This document will be a regular part of the information that is provided by the Executive Director. Committee Reports DESCRIPTION: Personnel and Steering Committee reports on meetings as necessary. Moving Ohio Forward DESCRIPTION: Report on progress in completing the goal of the program. Neighborhood Initiative Program DESCRIPTION: Report on progress in completing the goal of the program. 2

8 MONTGOMERY COUNTY LAND REUTILIZATION CORPORATION 2015 OBJECTIVES AND METRICS Board Issued November 2014 Business Objectives ORGANIZATIONAL Establish Organizational Authorities Budget Programmatic Establish Organizational Capability and Capacity Hire Program Managers Launch Approved Programs According to Schedule 2 Per Quarter Develop and Adopt Administrative Procedures and Documents Conduct Soft Openings FINANCIAL REVENUES Offset Program Operating Loss By 20% ACQUIRE FINANCIAL RESOURCES Acquire Fair Share in Additional Grant Funds MANAGE PROGRAM SCOPE AND BUDGET Budget Variances Less than 10% PLANNING MARKETING OBJECTIVES DEVELOP PROGRAM MARKETING PLANS 2 Plans o Deed in escrow o Foreclosure sponsorship 3

9 DEVELOP ORGANIZATIONAL COMMUNICATION PLAN Complete Plan o Develop a Messaging System o Determine Stakeholder Distribution o Develop Regional Media Connections Execute an Event o Increase market awareness NETWORKING OPTIMIZE MCLRC S IMPACT Identify and/ or Develop Relationships with 3 Groups or Businesses that can be leveraged to Support the MCLRC Mission. o DABR o GDREIA o DAHBA o Lenders MAINTAIN/ESTABLISH STAKEHOLDER RELATIONSHIPS Conduct Stakeholder Presentations - 2 Support MVPS Establish Relationships with 3 New Communities PROGRAM OBJECTIVES PROGRAM DEVELOPMENT Implement the 2015 Programs Develop Scaling Plan Identify Target Markets Estimate Annual Demand Manage and Make Programmatic Adjustments Develop and Manage Policy Considerations Identify Resources for Product Flow Link to Major Customers and Clients FUTURE PROGRAM OBJECTIVES / METRICS SALES AND MARKETING ACQUIRE PRODUCT FOR MARKET Establish a Property Triage Target the Acquisition of Properties o Donations # o Foreclosures # 4

10 DEVELOP PROPERTY INVENTORY SOURCES Develop # sources for inventory MAINTAIN HIGH CLIENT SATISFACTION Complete Client Satisfaction Survey Obtain Client Testimonials STRATEGIC OBJECTIVES MCLRC S ROLE DEVELOPMENT NEIGHBORHOOD REVITALIZATION COMMERCIAL REVITALIZATION Evaluate Opportunities for Mission Fit & Resource Availability PROGRAMS DEVELOPMENT NEW PILOT PROGRAM Identify 2 New Pilots EXISTING PROGRAMS Evaluate Program Impact, Demand 5

11 Montgomery County Land Reutilization Corporation Accomplishments November 2014 Introduction: The following is a summary of the activities and accomplishments of the Montgomery County Land Reutilization Corporation for the period November 1, 2013 until October 14, The purpose of the document is to recognize the work that has been completed to advance the organization and its mission. The document will be used by the Board of Directors in evaluating the organization s progress and the effectiveness of its leadership. During the review period the organization hired its first Executive Director (November 1, 2013). The Executive Director was provided the following direction: Acquire funds that were to be made available to remove vacant and abandoned residential (1-4 family) properties. Manage the existing MCLRC grant program. Evaluate the existing tax foreclosure process, and assist in the tax foreclosure efforts. Become familiar with Land Bank authorities provided under the Ohio Revised Code. The Executive Director with the assistance of various partners has in response to this directive completed the following: Neighborhood Initiative Program Award Round I: o Acquired an Award of $5.059M o Developed and had adopted an Award / Financial Sharing Methodology o Presented the opportunity to 14 communities Coordinated the involvement of 4 communities Provided special outreach to Smaller Communities o Managed MCLRC long term property liability issues 1

12 o Satisfied grant submission requirements in 30 days. Demonstrated Financial capability Acquired Loan commitment Acquired Tax Foreclosure processing commitment Developed a virtual organization by contracting for: Demolition support services Back office administrative services Acquisition Services Developed templates for Target Area plans and methodology Normalized community Target Area Plan Submissions Developed the following strategies: Acquisition Demolition Re-greening o Developed and Entered into Community Award Agreements o Acquired Donations, 14 BOR) o Contracting: Environmental Survey, Remediation, Demo Prepared Advertised and Released Requests for Qualifications Prepared Contract Specifications / Scope of Work Prepared Contracts o Submit all reporting on time. Maintenance Disposition Award Round II: Acquired an Award of $59K o Communicated the Opportunity to Communities o Achieved property acquisition threshold (20) to qualify for Round II in 30 days. Demonstrated creditability with Grant Administrator o Added one community to Round II submission Managed community participation and relationships Administrative Operational o Completed County Corp Hosting Agreements o Developed & Adopted Financial Policies and Procedures o Developed Accounting and Bidding Procedures o Establishment of Legal Team o Established Property Tracking System 2

13 o Hired Administrative Support Contractor Board o Agenda Preparation & Revision, Memoranda, Review Minutes o Annual Meeting Officers Election (without a coup) Amendments to By Laws Treasurer as an Officer Developed Conflict of Interest Form Altered Committee Structure & Appointments o Annual Report Preparation o Strategic Planning o Meetings Weekly with Chair Marketing o Logo Adoption o Public Presentations- approx. 5 o Community Networking o New Communities MOU 2 Brookville, Clayton o Media- Approx. 6 articles Relationships / Partners o Public: Communities, County Offices, CDCs, and Special Purpose Orgs. o Universities UD. WSU o Organizations: MVRPC, Thriving Communities, Ohio Policy Center, Federal Reserve Bank, Land Banks et. al. o MVPS Support Programs Existing: Those activities that were underway prior to 11/1/13 o Tax Foreclosure Sponsorship Properties (approx.23) Process Issue Resolution & Administrator Relationship Building MCLRC Test Cases - 5 Garrett-Day Properties - 8 County Corp - 8 City Wide 1 Dayton 1 o MCLRC Grant 3

14 Processed 4 Applications Created Agreements and Processed Amendments Administered Harrison Township: Forest Park Apts., Main Street Bar Farmersville: House & Barn Other LB Grant Involvement Dayton: Omega Baptist Church West Carrollton: Paper Plant Pilot Programs: Those programs that were developed to fill a need or an authority that had not yet been exercised. o Loan Rehab: 1 Test Completed (West Carrollton) Program Guidelines Developed Legal Docs Developed o Deed in Lieu: 26 Cases Completed Establish Processes & Forms Acquired Auditor s Consent o Industrial Tax Foreclosure Sponsorship Program Guidelines Developed o Deed in Escrow Program Guidelines Developed 2015 Proposed Programs: Based upon community input and the strategic planning process, the following programs were proposed for o Residential Tax Foreclosure Sponsorship o Planning Grant o Land Banking o Deed in Escrow o Community Residential Rehab Loan o Commercial Redevelopment (aka Industrial Tax Foreclosure) 4

15 Summary: During the review period the Executive Director provided, established, or completed the following: Acquired $5M in funds. Completed MCLRC grant, foreclosure / lot links, and deed in lieu initiatives. Positioned the organization to undertake it mission. Recognized Land Bank authorities and tax foreclosure process. Identified key matters of strategic importance. Identified client needs. Established a basic organizational support infrastructure. Created relationships with various organizations and institutions. Resolved numerous operating concerns. 5