Montgomery County Land Reutilization Corporation (MCLRC) May Board Meeting May 29, 2018 Attendees: Carolyn Rice, Treasurer (Chair of the Board) Doug Harnish, Principle, Market Metrics (Vice Chair of the Board) Sheila Crane, Realtor/Community Dev. Specialist, HER Realtors (Board Member) Brian Inderrieden, Director of Plan. & Comm. Dev., City of Dayton (Board Member) John Theobald, Commission Aide to Debbie Lieberman (Commission Representative) Mark Willis, Commission Aide to Judy Dodge (Commission Representative) Mike Grauwelman, MCLRC (Executive Director) David Williamson, MCLRC (General Counsel) Judy Zimmerman, Dir. of Finance, Treasurer s Office (Treasurer) Sam Braun, Finance Manager, Montgomery County Auditor s Office Susan Considine, MCLRC (Program Manager) Karen Kenwell, MCLRC (Controller) Absent: Scott Paulson, Trustee, Washington Township (Board Member) (Copies To): Angela Lilly, Montgomery County Treasurer s Office (Secretary) Call to Order Carolyn Rice, Chair of the Board, noting a quorum, called the meeting to order. A copy of the agenda is attached for reference. Approval of Minutes Sheila Crane moved to approve the April 17, 2018 Board meeting minutes. The motion was seconded by Doug Harnish and approved unanimously by voice vote. Mark Willis was present after the vote. New Business Item No. 1: Commercial Redevelopment Dayton Arcade/Amended Agreement The MCLRC Board approved an agreement with the developers of the Arcade in September of 2016. The members of the development team have changed. Miller Valentine is no longer part of the development team. There is now a joint venture between McCormack, Barron, Salazar and Model Group. Property taxes have continued to accrue on the property, with approximately $95,000 additional taxes due. The proposed use matured with the commitment of various tenants. Capital funding has been enhanced in the last few months with the awards of low income housing tax credits, federal and state historic tax credits, new market tax credits as well as obtained grants from the State Capital program and Montgomery County EDGE program. The most significant changes to the agreement are: 1) the transfer of the property to the City of Dayton instead of the Developer s LLC, 2) the lease and purchase agreements will be guaranteed by the Developer, 3) the Land Bank will assume the leases, 4) the property under agreement will include the McCrory Building (see Item No. 2), and 5) the term under which the Land Bank could hold title of the property is now limited to December 30, 2018. Once the agreement has been executed, the property will be transferred to the Land Bank as a deed in lieu of foreclosure.
John Theobald asked for clarification on the deed in lieu of foreclosure process. Doug Harnish moved to approve. The motion was seconded by Mark Willis and approved unanimously by voice vote. See attached Board memo for more details. New Business Item No. 2: Commercial Redevelopment Dayton Arcade/McCrory Building In conjunction with Item No. 1, the Board was asked to accept the McCrory Building as a deed in lieu of taxes as part of the Commercial Redevelopment of the Dayton Arcade. The property carries approximately $240,000 in tax delinquency and $674,000 in mortgages and state/federal liens. The developer is negotiating forgiveness of the liens and the University of Dayton Center for Entrepreneurship will occupy the building as an innovation hub. John Theobald moved to add the McCrory Building to the Dayton Arcade Agreement. The motion was seconded by Sheila Crane and approved unanimously by voice vote. See attached Board memo for more details Other Business Executive Session Doug Harnish moved to adjourn to Executive Session to discuss the purchase or sale of property. The motion was seconded by Mark Willis. Carolyn Rice took roll call of those Board members in favor of entering Executive Session. Roll Call: Brian Inderrieden, aye John Theobald, aye Sheila Crane, aye Mark Willis, aye Doug Harnish, aye Carolyn Rice, aye John Theobald moved to exit Executive Session. The motion was seconded by Sheila Crane Carolyn Rice took roll call of those Board members in favor of exiting Executive Session. Roll Call: Brian Inderrieden, aye John Theobald, aye Sheila Crane, aye Mark Willis, aye Doug Harnish, aye Carolyn Rice, aye New Business Item No. 3: Budget Amendment In the 2018 budget, a line item was created for a Commercial Acquisition program. The original budget for the program was set at $200,000, but needs to be amended to $750,000 to allow the Land Bank to address additional acquisition opportunities. Mark Willis moved to approve the amendment to the budget. The motion was seconded by Brian Inderrieden and approved unanimously by voice vote. See attached Board memo for more details.
New Business Item No. 4: 2017 Progress and Financial Reports After review of the 2017 Progress and Financial Reports, Mike Grauwelman asked the documents be accepted as provided. Sheila Crane moved to accept the Progress and Financial Reports. The motion was seconded by Mark Willis and approved unanimously by voice vote. Other Business Financials The Board reviewed the MCLRC program expenditures and revenues, including a NIP reimbursement and expenditures summary. The cash balance at the end of April was approximately $1.8 million. Financials - There is a small positive variance in the personnel line item as a staff member was replaced creating a gap in expenditures. TFAP - the program has a negative variance, as foreclosure expenses are paid as they occur while revenues are not realized until the properties are transferred. DIY - the program currently has higher expenditures vs. revenues. This is in part due to the delay in the foreclosure process and a sudden inventory being provided. NCST the program had a $12, 500 negative variance due to acquiring a hand full of properties. NCST paid $165,000 toward the handling of properties in 2017. Expense to foreclose on these properties is now being realized. Announcement Carolyn Rice congratulated Brian Inderrieden on his retirement and thanked him for his service on the MCLRC Board as a representative of the City of Dayton. The City of Dayton has selected Todd Kinskey to replace Brian on the Board. The next board meeting is scheduled for Tuesday, June 19, 2018 Call to Adjourn There being no further business, the meeting was adjourned.
Board Meeting Agenda Montgomery County Land Reutilization Corporation May 29, 2018 3:45 pm Montgomery County Treasurer s Office Conference Room Call to Order: Chair Carolyn Rice Roll Call: Approval of Minutes: April 17, 2018 (Attached) Old Business: New Business: Item No. 1 Commercial Redevelopment Dayton Arcade/ Amended Agreement (Attachment) Presentation and Discussion Motion to Approve Item No. 2 Commercial Redevelopment Dayton Arcade/ McCrory Building (Attachment) Presentation and Discussion Motion to Approve Executive Session to Discuss the Purchase or Sale of Property Item No. 3 Budget Amendment (Attachment) Presentation and Discussion Motion to Approve Item No. 4 2017 Progress and Financial Reports (Attachment) Presentation and Discussion Motion to Accept Other Business: Financials Next Meeting: June 19, 2018 @ 3:30 pm Adjourn
To: MCLRC Board Members From: Mike Grauwelman Date: May 25, 2018 Subject: May Agenda Below you will find information and a recommendation or status for the items on your May agenda. Please feel free to contact me before the meeting should you have any particular questions or concern that may require research. Item No 1: Commercial Redevelopment Dayton Arcade.. Amended Agreement Steering Committee Recommendation: N/A Staff Recommendation: Approval of the Board to accept the Arcade as a Deed in Lieu of Taxes, and enter into agreements for the lease and sale of the property. Background: The MCLRC Board approved an agreement with the developers of the Arcade in September of 2016. At that time there was some urgency for the agreement to be in place to support additional tax credit applications. Although the Land Bank supported the effort the agreement was never consummated as the development team was able to find alternative means to pursue the credits. Since the Board s approval the developer and community partners sought out additional funds to support the project creating changes that impact the structure of the Land Bank agreement. As a result the application has been amended for Board review. The principal modifications involved include a change in the development team, and certain terms of the agreement. The changes are provided for your review. Development Team: The members of the development team have changed since the Board s approval of the request. The Baltimore based urban development firm (Cross Street Partners) was originally partnered with Miller Valentine a Dayton based developer. Miller Valentine has left the development team, which is now a joint venture between McCormack, Barron, Salazar (St. Louis, Missouri), and Model Group (Cincinnati, Ohio). The team is reported to have completed the adaptive reuse of millions of commercial square feet in historic buildings, and owns and operates over 30,000 residential units in 60 cities. The team is also purported to be well versed in mixed use and tax credit projects of all types. Due to its reputation in the community Miller-Valentine provided the community a Page 1
level of comfort, but it was not necessarily the best fit for the business and ultimately led to the amiable reorganization of the team. Although diligence on the firms supported by the City of Dayton, it is believed that the overall capabilities brought to the project by the new members significantly improve the prospects for success. Finance and Use: Taxes: The Property is currently owned by Dayton Arcade LLC, and has accrued delinquent real estate taxes, penalties, interest, and assessments in the approximate amount of $615,390. The amount due earlier was $520,618. (These amounts do not include the McCrory building.) Proposed Use: The proposed use has matured with the commitment of various tenants. The development continues to be a mixed-use including: residential, office, retail, creative, educational and innovation space. Financing: The capital stack required has been greatly enhanced since the initial approval of the project. Developer has now been awarded low income housing tax credits, federal and state historic tax credits, new market tax credits as well as obtained grants from the State Capital program and Montgomery County EDGE program. Land Bank Role: The Land Bank s involvement in the Arcade continues to be seen as an important part of the redevelopment by the developers and City of Dayton. The Land Bank s primary role remains to address the tax liability, which has continued to increase. The financial challenges associated with structural repairs, maintenance, renovation, operations, and market challenges facing the property have also not materially improved. Collectively these issues continue to make the tax uncollectable. The method of extinguishing the tax liability remains the receipt of the deed from the current owner as a deed in lieu of taxes. Purchase Agreement: The basic structure of the agreement remains the same from that originally presented to the Board. The following are some of the more significant changes to the agreement. Originally the transfer was to occur to the Developer s newly created LLC s, while under the revised agreement the property will be transferred to the City of Dayton. The lease and purchase agreements are guaranteed by the Developer. Originally the property was to be leased to the Developer s newly created LLC s after transfer, while under the revised agreement the property is already under lease and the Land Bank will assume the leases. Page 2
The property: The property under agreement will (if approved by the Board under separate action) include the McCrory building and the five buildings commonly referred to as (i) the Third Street Arcade, (ii) the Ludlow Building, (iii) the Commercial Building, (iv) Fourth Street Apartments, and (v) the Rotunda. The term under which the Land Bank could hold title of the property is now limited to December 30, 2018 instead of September 2022, and the buildings will be transferred to the City of Dayton. Proposed Transaction Structure/Timeline: Land Bank Matters: a. Upon execution of the agreement, the Property will be transferred to the Land Bank as a deed in lieu of foreclosure. The property will be subject to existing leases. The leases require the LLC s to pay all expenses, hold insurance, and maintain the properties. b. Upon the Land Bank's acceptance of title to the Property, Purchaser will become obligated to purchase the Property, and the LLC s will be under lease with the Land Bank. c. There is no longer an option to purchase only an obligation that must be exercised by December 30, 2018. The obligation to purchase and accept title to the property is not subject to any conditions. d. The Land Bank will hold title to the complex while it is sub-divided and a condominium association created. e. Existing Lease: 1. Purchaser remains responsible for all costs associated with the operation and management of the Property. 2. There is no nominal monthly rental for the leases. f. Transfer: There is no phased transfer of property. The entire complex will be transferred at one time. Financial and Legal Liability: The lease and purchase agreements with the Purchaser are guaranteed by the Developer. All responsibility to pay for expenses associated Page 3
with maintaining, managing, and transferring the property will be at the Purchaser s expense. If lessee fails to comply with the lease or the provisions of the agreement, they will be in default and the Land Bank may transfer the property. Developer Capability: The Land Bank continues to rely upon the City of Dayton s due diligence in qualifying the development team. Basis for Land Bank Involvement: 1. Long-term vacancies and neglect have led to extremely high development costs, and need for significant subsidies to enable redevelopment to occur. The City of Dayton has determined that it is in its best interest to redevelop the property in lieu of demolition, and has invested to physically stabilize the property. 2. Given the condition of the complex and very weak demand, the accrued taxes are effectively uncollectable and place the property at further jeopardy. 3. Land Bank involvement provides the community a level of control over the property s future and redevelopment. Current ownership has not demonstrated an interest in advancing the property to the community s detriment. Due to the required timeframe for the submission of the state Historic Tax Credit program, it is critical to the project that the Board takes action on this matter. Arcade Redevelopment / Building Map Page 4
Item No 2: Commercial Redevelopment Dayton Arcade.. McCrory Building Steering Committee Recommendation: N/A Staff Recommendation: Approval of the Board to accept the McCrory Building as a Deed in Lieu of Taxes, and enter into agreements for the lease and sale of the property. Background: The building located at 29-31 S. Main St. was built in 1922 and is known by the name of the last traditional dime store to operate in Downtown Dayton. The building is a 3 story structure of approximately 37,857 square feet, and is currently vacant. The owner is The McCrory Building Project, Inc., which was incorporated by Robert Shiffler in 2002. The Auditor s value is: Land $248,240 Building $ 90,490 Total Value $338,730 The current real estate tax liability is $238,762. Additionally, the property is encumbered by multiple liens including several mortgages, State of Ohio (sales tax, Worker s Comp), Federal and others totaling approximately $674,000. The developer is negotiating forgiveness of the liens. Any remaining liens will be dispersed before the Land Bank takes possession. The property is integral to the Arcade redevelopment project. The University of Dayton Center for Entrepreneurship, an innovation hub will occupy all three floors of the building. Like the rest of the buildings that make up the Arcade project, the structure is highly distressed, requiring substantial investment to make it fit for occupancy. The developer has provided the following estimate from their architect. Estimated Core & Shell Renovation $2,800,000 Estimated Tenant Improvements $6,000,000 Total Projected Investment $8,800,000 Land Bank Role: The role the Land Bank will play will mimic that of the rest of the Arcade buildings primarily addressing the real estate tax liability. The Land Bank would accept the property as deed in lieu of taxes, holding for a brief time and then transferring to the City of Dayton. Page 5
Basis for Land Bank Involvement The deteriorated condition of the structure, the complexity of the other encumbrances, the long term vacancy and the projected investment all indicate the building has very little if any intrinsic value as it sits today. This is further evidenced by the Auditor s appraisal a building value at less than 37% of the land. It is well established there is substantial risk to the development and it would not occur without the benefit of public involvement. The tax liability simply increases the public funding already committed to advance the property. University of Dayton Center for Entrepreneurship is an essential component for the success of the Arcade project, thus it is critical the McCrory Building be included in the Arcade development. Item No 3: Budget Amendment Steering Committee Recommendation: N/A Staff Recommendation: Approval of the Budget Amendment increasing the Commercial Acquisition Pool to $750,000, and expanding its use to include the purchase of commercial properties other than tax liens. In the 2018 Budget the Board approved the establishment of a line item to acquire commercial properties similar to that established for residential properties. The allocation of funds was made to support a proactive approach for commercial properties, and intended to operate in the same revolving fashion as the residential pool. The pool of $200,000 was shown in the Budget as revenue neutral, and targeted to purchase tax liens from the Treasurer s Office. Activity during the year suggests that additional uses could be made of the funds to purchase strategic commercial property in support of the mission. The program could be used to address opportunities to control available commercial properties in neighborhoods in which we are or will be investing. The pro-active approach would protect the Land Bank s investment, diminish speculation and / or the introduction of irresponsible ownership., And it may position it to recapture its investment resulting from neighborhood appreciation. It is recommended the budget be increased to $750,000 to support the expansion of the program and fund use be expanded to include the acquisition of commercial properties other than tax lien purchases. Page 6
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A Message from the Montgomery County Land Bank Board of Directors To improve is to change; to be perfect is to change often. Winston Churchill These words by the great British leader and statesman serve as an outstanding reminder of the value of change. Change is rarely easy. Although our natural inclination might be to ignore it, deny it or simply cling to what s familiar and comfortable, change, in the end, is the gateway to new and better ways of doing things. And this brings us to 2017. We are heartened to see our country and our county rebound from the economic crisis of the past decade. But even though the news is good, we saw it alter circumstances for the Land Bank. The improved economic climate has been a catalyst for a change of our strategies, a step forward in our quest for improvement. (We ll keep working toward perfection, Winston.) We hope you will take a few moments to read about our pivot in the stories told on the pages of this document. Thank you for your interest in the Land Bank s activities of 2017. 2017 LAND BANK BOARD OF DIRECTORS Carolyn Rice County Treasurer Judy Dodge Montgomery County Commissioner Debbie Lieberman Montgomery County Commissioner Brian Inderrieden City of Dayton Scott Paulson Washington Township Trustee Doug Harnish Founder & CEO, Market Metric$, LLC Sheila Crane Realtor and Community Development Specialist
Montgomery County Land Bank 2017 Progress Report MISSION To facilitate the transition of blighted, foreclosed and abandoned properties into viable, marketable properties by working collaboratively with public and private entities in a financially responsible, transparent manner with a long-term goal of returning these properties to the tax roll. supporting neighborhood improvement efforts, we are changing in other areas. This includes expanding the Planning Grant Program to support not just single communities, but also multi-agency strategic planning efforts that will result in neighborhood redevelopment. When five businessmen launched the Minnesota Mining & Manufacturing Company in 1902, they had one clear goal: to get rich. They pinned their hopes on a mine they had purchased and the sale of the mineral corundum, the ideal abrasive for producing sandpaper and grinding wheels. Their dreams of a wealth and great fortune stalled, however, after they learned their mine contained not corundum, but anorthosite, an inferior mineral with no commercial value. Still determined to achieve their goal, the founders adopted new business strategies Instead of mining, they turned to the manufacturing of sandpaper products. They also encouraged their employees to develop practical, new innovations. Before long, the company brought to market products such as waterproof sandpaper, masking tape and Scotch tape. This change of strategy marked the beginning of the 3M Company s success story. Today it sells 55,000 different products and employs 90,000 people. A mainstay on the Fortune 500 list, it is one the world s most respected companies. A century ago, 3M founders understood the survival technique that modern-day thought leaders espouse: To succeed, organizations must be prepared to pivot, adapt and evolve in response to changing circumstances. In 2017, the Montgomery County Land Bank faced a similar situation The Land Bank was created as Montgomery County s response to the 2008 housing crisis. For the past four years, we have been providing programs and tools to remove blight, repurpose troubled commercial and residential properties and support neighborhood revitalization. But the environment has changed since 2008 The country s economic recovery, although positive news, has generated impacts on the Land Bank: It is accelerating market demand for investment-grade rental housing, creating competition for our DIY Program properties. This challenges the quality of the properties available to us and drives up the cost of making them marketable. Also, the federally funded Neighborhood Initiative Program will end in 2019. Since 2014, it has provided $18 million for the demolition of 1,100 residential structures. These changes present the ideal opportunity to rethink our strategy and to pivot Despite the uptick in the economy, much work remains to be done in this community to address the issues of distressed real estate, declining neighborhoods and depressed property values. To address those needs under current circumstances, the Land Bank is pivoting to a more proactive strategy. Although we are continuing the DIY and Tax Foreclosure Acquisition programs, providing real estate solutions and In addition, we are investing resources in a new strategy, the Thriving Neighborhoods Initiative. The goal is to stabilize property values in concentrated pockets, thereby maximizing the impact of the community s investments. (Read more on this on page 6.) In 2017, we launched a pilot of this program in West Dayton s Pine View neighborhood. The stories on the following pages provide a look at the Land Bank s new strategies in action. Also included are updates on our legacy programs, which will complete a 360-degree view of the Land Bank s activity in 2017. 3
Clayton: Preparing for the Next Generation of Homebuyers The city of Clayton is an attractive, family-friendly community known for its charm and variety of housing types. Like many communities across Montgomery County, however, Clayton has struggled to recover from the 2008 housing crisis. By 2015, the city began facing issues of vacant homes, blight in neighborhoods, pockets of tax-delinquent commercial parcels, stalled development projects, decreased property values and reductions in local government funding. Each of these is a tremendously complex issue in and of itself, said Development Director Jack Kuntz. To combat them all strategically, we believed we needed to start with a redefined vision for the future of Clayton. In 2016, the city prepared to launch a community-based process to update the existing land use plan, which had been created in 1999. Their first step was to apply for a planning grant from the Montgomery County Land Bank. The Land Bank provided a $50,000 grant, which was matched by the city s $12,500. The funds were used in 2017 to hire a professional planning firm to assist with the development of a Comprehensive Land Use Plan and Implementation Plan. The nearly year-long process included extensive citizen participation through opinion surveys, stakeholder interviews, community forums and input from city council, staff and the business community. Their ideas merged into a strong, new vision for Clayton to create walkable neighborhoods, around central cores with connected parks lined by great streets and infrastructure. The proposed new plan is ready for adoption by the Clayton City Council in 2018. City officials are excited for the plan s vision and strategies, which will strengthen all areas of the city, but especially its established neighborhoods. There, the city is focused on removing blighting influences and providing affordable rehab opportunities for the next generation of homebuyers. The Land Bank s grant was the catalyst that allowed us to undertake a land use plan update of this scope, said Kuntz. We believe this is the key to stabilizing property values, which is vitally important to Clayton s future and the county s. Legacy Program Update: Neighborhood Initiative Program Approximately 1,100 abandoned and distressed houses have been or will soon be removed from nine partner communities, thanks to the Land Bank s Neighborhood Initiative Program. NIP represents federal dollars distributed through the Ohio Housing Finance Agency. Here are additional facts about NIP: $16,210, on average, is invested in removing each property. This includes acquisition, environmental survey and remediation, demolition, greening, post-demolition maintenance and project management. The Land Bank s total award since 2014 is just over $18 million. By the time the program ends in 2019, approximately 1,100 eyesore structures will have been acquired and removed. 57 newly greened lots have been transferred to new owners. These lots will be used for side lot expansion, for commercial expansion and by non-profits for community gardens and recreational green space. To address the issue of a diminishing tree canopy in targeted residential areas, a partnership was developed with Ohio Department of Natural Resources and City of Dayton to create a pilot reforestation project on former NIP lots. 4
Housing Authority: Plan Would Transform Struggling Neighborhood The Dayton Region s loss of manufacturing profoundly hurt the entire community, but nowhere more than West Dayton. Those residents relied on Delphi and GM for employment and the business generated by the plants employees. A good example is DeSoto Bass, a neighborhood that lost 23 percent of its population between 2000 and 2010. Today, it has the city s highest crime and vacancy rates as well as the lowest homeownership rate. More than half its residents live in poverty. The neighborhood includes the 354-unit Desoto Bass Courts and 150-unit Hilltop Homes, two of the city s oldest, largest and most segregated public-housing developments. In June 2016, the US Department of Housing and Urban Development awarded a $1.5 million Choice Neighborhood Planning Grant to co-applicants, city of Dayton and Greater Dayton Premier Management, the public housing authority in Dayton. The goal is to develop a Transformation Plan for the revitalization of the DeSoto Bass neighborhood. The federal program which offers separate grants for planning and implementation requires communities to create a locally driven, comprehensive approach for the transformation of struggling neighborhoods with distressed public housing. The strategies must focus on three core goals: housing, people and neighborhoods. To complete its plan and demonstrate broad-based stakeholder leverage, GDPM reached out to community partners for financial and human-resource support. True to form, 25 of the region s businesses, institutions and organizations have gotten behind this important work. Recognizing the plan s potential to advance the organization s mission, the Montgomery County Land Bank has joined the project s other community partners. In fact, the Land Bank s involvement in the Choice Neighborhoods project has led to the organization s pilot planning program in the nearby Pine View neighborhood. (See page 6.) The Land Bank has been an awesome partner, said Kiya Patrick, GDPM director of Planning and Development. They re always looking to align resources and strategies to create the greatest impact for the community. Legacy Program Update: DIY Renovation The Land Bank s DIY Renovation Program helps to stabilize property values in neighborhoods by allowing ambitious citizens and investors to buy and rehab distressed homes that have been acquired and inspected by the Land Bank. Once a home is renovated, and the structure meets Land Bank standards, the buyer receives the deed and may then sell, lease or occupy the property. Here s a summary of 2017 activity: 8 Properties were transferred with estimated $200k investment 1 property was in renovation as part of Pineview Pilot Project. 5 properties were sold and in renovation. 18 properties were on, ready, or being readied for market. 30 properties were identified as DIY candidates and submitted for foreclosure. 6 properties were transferred for demolition. 5
Pine View Pilot: A Proactive Neighborhood Effort Throughout Montgomery County, lowand moderate-income neighborhoods are challenged by vacancies and foreclosures, conditions that lead to disinvestment and depressed property values. These problems evolve into home improvements being neglected and market confidence being eroded. In response, the Land Bank has launched a bold, proactive effort that aims to resolve these issues through the collective impact and investments of public and private partners. The Thriving Neighborhoods Initiative allows the Land Bank to address the neighborhood s physical challenges while partners provide solutions aligned with their respective scopes of services. To make the Thriving Neighborhoods Initiative scalable and repeatable, it will be implemented in unique neighborhoods using a consistent methodology that includes neighborhood-selection criteria, a strong strategic planning effort and an implementation component. Collaborating partners will get involved depending on the neighborhood s particular needs. In early 2017, the Land Bank launched a pilot project in Dayton s Pine View neighborhood as a trial of the Thriving Neighborhoods Initiative. Comprising 370 homes, Pine View suffers from depressed property values that have not rebounded since the housing crisis. It is part of the Choice Neighborhoods target area. (See page 5.) Fueled by community partnerships and supported by public-private investments, the Thriving Neighborhoods Initiative will improve property values encourage improvements by homeowners increase the market s confidence improve residents quality of life, and inspire neighborhood pride Working with the residents and our partners, we intend to return the neighborhood to happier and healthier times, said Land Bank Chair Carolyn Rice. Legacy Program Update: Tax Foreclosure Acquisition For a modest investment, citizens and investors can acquire a tax-delinquent residential property to rehab and reuse for a residence, side lot, home expansion or new construction. The Land Bank makes it easy for potential buyers to locate a property through the GoGetProperties research tool on our website. Here s a summary of 2017 activity: 55 applications were received and processed 33 properties were transferred 46% of transfers were to owner occupants 3 forfeited properties were transferred; 4 are pending Land Bank efforts often result in delinquent taxes being paid prior to foreclosure 6
Riverfront Plan: Why Not Dayton? If there s one priority local leaders, economic development specialists, business people and outdoor-recreation enthusiasts have been able to agree on over the years, it s their wish to see the Dayton Region maximize the use of its beautiful waterways. Outstanding examples of the unique power of rivers to attract people and business opportunity are just down the road in Columbus and Cincinnati. And so people have asked, Why not Dayton? Those voices were heard. In 2017, seven agencies began an exciting planning process with a strong emphasis on public participation to tap the potential of the Great Miami, Mad and Stillwater rivers and Wolf Creek and their corridors. Their vision builds on a 1997 plan that sparked momentum with projects such as RiverScape, River Run and Water Street housing. The new, 20-year vision is to develop a more accessible riverfront that invites outdoor recreation, brings people together, improves housing opportunities, inspires neighborhood pride, attracts companies and talented workers and generates environmental benefits. The seven agencies leading the effort the city of Dayton, Five Rivers MetroParks, the Miami Valley Regional Planning Commission, the Miami Conservancy District, Montgomery County, the Downtown Dayton Partnership and the Greater Dayton RTA haven t had to go it alone. Noting the planners intent to propose public amenities that would help stabilize the 19 Dayton neighborhoods within the planning area, and transform vacant land to viable uses, the Land Bank has contributed a planning grant of $50,000 toward a project cost of $415,000. We aren t looking for neighborhoods to be gentrified, said Carrie Scarff, chief of Planning and Projects for Five Rivers MetroParks. We share the Land Bank s goals and want to see the neighborhoods return to the density, vitality and sense of community they ve offered in the past. The Land Bank has been incredibly helpful to this effort as a forward-thinking consultant and reliable supporter. Legacy Program Update: Commercial Property Redevelopment This program positions the Land Bank to work with investors to redevelop tax-delinquent commercial properties and facilitate solutions to other distressed real estate issues. The projects typically are complex, often involving liens and unpaid taxes. The Land Bank creatively combines other existing programs to deliver solutions agreeable to everyone involved. Our experience shows that activity on these properties may become a catalyst for payment of delinquent taxes and new investment. This year saw activity that spurred investment and facilitated reuse of abandoned or underutilized property. A blighted Main Street West Carrollton car wash, dry cleaner and gas station was demolished, remediated, and transferred to Kettering Health Network for a new medical office facility. 4 vacant abandoned residences on Wayne Avenue were demolished and the property purchased by Esther Price Candies to support their expansion a really sweet deal! 13 vacant abandoned commercial and residential lots were acquired for and purchased by Sugar Creek Packaging as a part of its community development. The 225 S. Main building was placed into the care of the Land Bank by the city of Dayton. Various structural improvements were made to the structure to preserve its integrity until a user can be identified. The Land Bank proactively sought to reposition a vacant abandoned commercial building that had become seriously tax delinquent and was falling into disrepair. The property is expected to be ready for market and available for reuse in the summer of 2018. 7
Montgomery County Land Bank 130 W 2nd St #1425 Dayton, OH 45402 www.mclandbank.com (937) 531-6921