Council adopts land bank law
POTTSTOWN » After more than two years of off-and-on discussions, borough council finally adopted a land bank ordinance — but not without some reservations from some council members.
Chief among Councilman Dennis Arms reservations is that council has yet to identify a way to fund the bank, which would take ownership of derelict properties in the borough and hand-them off to willing developers.
Borough Solicitor Charles D. Garner Jr. said the initial bank could be funded by grants, or by the borough.
Assistant Borough Manager Justin Keller said the amount needed to start the land has not yet been determined, but there is no line for that cost in the proposed 2018 budget.
“I find it concerning that we’re going to adopt this ordinance and we don’t have a solid plan for implementation and no money in
budget for it,” said Arms.
Council President Dan Weand said it was never council’s intention to have the land bank funded through the budget, but through grants and other sources of funding.
Borough Manager Mark Flanders said council faced “a chicken-or-the-egg” conundrum of how to apply for a grant when there is no ordinance in place.
Council Vice President Sheryl Miller, voted for the ordinance, but urged caution in who gets appointed by council to the board that will oversee the land bank.
She had previous expressed concern that developers of those who might benefit financially could get an inside track on properties by being appointed to the land bank board of directors.
Under the new ordinance, the land bank would be overseen by a five-member board whose members would be appointed by borough council and who would set up the parameters, policies and goals for the organization.
The Blighted Property Review Committee could even be stand-ins for the first board members until council had appointed members, attorney Winnie Branton told council during a presentation in October.
Miller has also expressed concern that the land bank be used to add to the already high number of rentals in Pottstown.
The land bank’s primary goal would be to create more owner-occupied market-rate housing, under the proposed ordinance, Branton said.
Other goals would include eliminating blight, stabilizing neighborhoods, facilitate private investment and assemble large parcels for redevelopment.
Land banks are allowed under a state law adopted in 2012. They have very specific powers to get control of key blighted properties, but cannot do so through eminent domain, Branton reminded council.
Their primary function is to attempt to connect blighted properties with developers willing to rehabilitate or redevelop them along with the plans and goals of the municipality.
“A land bank takes properties that can’t move on open market and removes obstacles to making them productive again,” said Branton. “A land bank won’t solve all your problems. It is a tool like anything else.”
A land bank can negotiate sales and avoid auctions and get priority at judicial sale, and also get quiet title to properties, said Branton.
But without a lot of funds, particularly in the beginning, a land bank would typically only do this when a buyer has been identified and thus avoid the costs of holding onto a property for a long period of time, she explained.
Funds to operate a land bank can be generated by providing them with up to 50 percent of the tax revenue for five years of properties which it returns to the tax rolls, provided the other taxing bodies agree, said Branton.
To be operative, the land bank will require the adoption of the ordinance and agreement from the other taxing bodies Montgomery County and the Pottstown School District.