Florida Brownfields Association This Jacksonville, is bullet size Florida This November is bullet size 15, 2010 Dan Kildee President Center for Community Progress 1
Community This is Progress the type so far Launched January 2010, funded by Ford and Mott Fndns The mission of the Center for Community Progress is to create vibrant and competitive communities across America through the reuse of vacant, abandoned, and troubled properties in our nation s cities and towns Takes to scale the efforts of the nation s leading organizations and individuals on issues of revitalization and reuse of vacant, abandoned, and underutilized properties. Community Progress focuses on: Federal, State, and local Policy; Research, Technical Assistance & Capacity Building; Coalition Building; Communications and Advocacy. Located This in is Washington, the type sodc, far Flint, MI, and New Orleans, LA. Focus on This the relationships is bullet size between national, state, and local policy and implementation. DC office This connects is bullet our size work to national policymakers and allied This organizations is bullet i size around the country Flint and This New is bullet Orleans size offices provide the organization This is with bullet real-life sizeapplication and "grounding" of the focus of our work. 2
Old vs. This new is the approach far to vacant, abandoned, and type forgotten so property Old thinking Annoyance Drain on resources Disposable p This commodity is bullet size Regulate Enforce Liquidate Speculate Emerging thinking Opportunity Renewable asset Strategy Ownership Connected Investment Equity Systemic This vs. is the Transactional type so far Approach Tax foreclosure Receivership Land banking Tax policy Code enforcement Planning and design Vacant This property challenges is bullet size registration Development priorities IT systems Mortgage policy 3
Federal role: invest in sustainability, capacity, innovation and systemic approaches. Think: Race to the Top investment, This align is bullet processes size and priorities with stated values Local role: plan for sustainable development, internalize externalities, apply regional approach to urban challenges, embrace the land State role: modernize policy and systems, target Example: Tax delinquency This is the - methods type so far of enforcement Tax lien sales: efficient, privatized function. Results are uneven. Export This profits is bullet to investor, size conveys control to 3 rd party. Tax auctions/sales: This is bullet efficient, size quick, simple. Attracts speculative This purchasers, is bullet title size issues often complicate reuse. Recidivism. Foreclosure/land This is bank bullet disposition: size retains profits and control of land, allows negotiated sales on terms that attract real investors. More work. 4
What is a land bank? A Land Bank is a public authority designed to acquire, hold, manage, and dispose of foreclosed properties, as well as other vacant, abandoned, and problem properties. Two This pathways is the typefor soproperty; far 3 typical examples Abandoned house, bad shape: another empty house that would take more This to is rehab bullet than size its worth, part of the oversupply of obsolete housing This is bullet size Abandoned d house, This is salvageable: bullet size empty house in an neighborhood This struggling is bullet to size remain stable. Worst house on the street, but could be occupied now or rehabbed. Empty commercial building: title issues, cost of redevelopment, market issues all are barriers to reuse 5
Abandoned This house, is bad the shape: another empty far house that would take more to rehab than type its worth, so part of the oversupply of obsolete housing Option 1: sell at auction Modest or no This proceeds is bullet size Purchased by This online is bullet size purchaser Re-abandoned, This reforeclosed is bullet size 6
Abandoned This house, is bad the shape: another empty far house that would take more to rehab than type its worth, so part of the oversupply of obsolete housing Option 2: convey This is to bullet LB size Demolish house Sell to next door neighbor or This loan is to bullet size neighborhood This group is bullet size A new garden, no more competition for worthy properties Abandoned This house, is salvageable: the empty house far in an neighborhood struggling to remain type stable. so Worst house on the street, but could be occupied now or rehabbed. Option 1: sell at auction Modest proceeds Purchased by This local is lbullet size landlord or online This is bullet size purchaser Occupied, but still worst house 7
Abandoned This house, is salvageable: the empty house far in an neighborhood struggling to remain type stable. so Worst house on the street, but could be occupied now or rehabbed. Option 2: convey This is to bullet LB size Rehab house, sell on land contract or other terms to attract homeowner Modest profit, This increase is bullet size surrounding values. Worst to best. Empty commercial building: title issues, cost of redevelopment, market issues all are barriers to reuse Option 1: sell This at is auction bullet size Fails to sell; This may is sell bullet for size minimal amount This to is online bullet size buyer Sits empty Re-foreclose This and is start bullet size over 8
Empty commercial building: title issues, cost of redevelopment, market issues all are barriers to reuse Option 2: convey This is to bullet LB size Package redevelopment financing Locate developer or partner with This one is bullet size Redevelop building, This is bullet size create a new standard, catalyze development What are This the is benefits the type of so a far Land Bank? Local control vs. speculator interests t Local priorities This is bullet as to size use of land Local priorities This is bullet as to size transferee Focus on This long-term is bullet size vs. short term outcomes Economies This of is scale bullet size internal subsidy Market-oriented approach 9
Create This a new is the pathway for far vacant and abandoned type property: so F/C Prevention Housing Renovation This is bullet size Side Lot Transfer This is bullet size Maintenance Urban gardening Rental Management Clean & Green Demolition New Development Planning 10
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Example: New Brownfield Tools Defines land This bank is bullet owned sizeproperties as eligible Scattered sites, multiple jurisdictions Cross-collateralized This is bullet TIF, size zero baseline value 10% Brownfield This is bullet tax credit size Internalized externalities Internalizing externalities MSU Land This Policy is the Institute type so far 400 Genesee County Land Bank properties 2-year study of the impact of intervention on surrounding property values 26,000 properties affected $3.5 million invested (demolition, cleanup) $112 million in increased private value http://www.geneseeinstitute.org/reports/index.html 12
Ongoing gwork: Michigan, Ohio, New York, Pennsylvania, Louisiana, Maryland (Baltimore), and Arkansas (Little Rock). Initial work in This Tennessee, is bullet Minnesota, size Georgia, New Jersey. Other projects in Indiana, This is Illinois, bullet Virginia, size Delaware. Next targets include This is about bullet a dozen size states, including: Florida, California, Nevada, This is Arizona. bullet size Priorities for This next is state bullet targets sizebased upon combination of: presence of need, state and local allies, willingness to innovate, prospect of success. Dan Kildee Center for Community Progress 877-542-4842 dkildee@communityprogress.net 13