Kentwood Committees & Boards
Economic Development Corporation (Back to index)
Minutes for 03/15/2011
MINUTES
ECONOMIC DEVELOPMENT CORPORATION
March 15, 2011
Members Present: Zwarensteyn, Clanton, DeBruyn, Frederick; VanderHeide, Brandt, Bartz
Members Absent: Gabrielse, Gaffin with notification
Others Present: Lisa Golder, Economic Development Planner, Ken Malik, Wyoming Kentwood Chamber of Commerce; Ken Parrish, Kent County Treasurer; Phil Tietz, Kentwood deputy Finance Director; Sharon Brinks, Kentwood City Commissioner
1. Approval of Minutes:
The EDC reviewed minutes from February 2011.
A motion was made by DeBruyn with support from Zwarensteyn, to approve the minutes of February 15, 2011.
--Motion Carried—
2. Financial Report:
Phil reviewed the financial report. He said that the loans are being paid on time, and that the M&D Leasing Loan is due this year.
After discussion,
A motion was made with support to accept and file the financial report.
--Motion Carried—
3. Ken Parrish, Land Bank Presentation
Sharon Brinks introduced the subject. She is in her second year on the Land Bank Authority along with Rosalynn Bliss from Grand Rapids, Kent County Commissioner Stan Ponstein, and George Meek from Plainfield Township. The governmental documents have been created and approved, including the Articles of Incorporation, Bylaws, and Priorities and Policies. The Advisory Board has yet to be created, but it is anticipated to include a variety of community representatives. The Land Bank Authority is now in the process of educating the public about the Land Bank, and is hosting meetings for the community, elected officials, and city planners/economic development officials. The community meeting is scheduled for March 23rd at the Marywood Center. The elected officials meeting is to be held at the Kentwood Library. Sharon had asked Ken to make a presentation to the Kentwood EDC.
Ken Parrish said that before 199 the County Treasurer sold delinquent tax liens to individual buyers or the Michigan DNR. Removing themselves from the process. Act 123 of 1999 changed the system of delinquent real property tax collection enforcement from tax lien sale to foreclosure and sale of property by the County Treasurer. This is particularly helpful in cleaning up title history.
Public 258 of 2003 authorized the creation of Land Bank Authorities. A Land Bank can:
· Acquire tax foreclosed property prior to a public auction
· Can acquire other properties
· Can hold property (tax free) for accumulation, renovation, redevelopment etc.
· Can sell properties through negotiated transactions
· Can partner with developers
· Can borrow money
Another advantage is that property acquired by a Land Bank is automatically designated as a brownfield
Also after its sale, 50% of the taxes collected are returned back to the Land Bank for 5 years.
It has been found that there has been a reduction is recidivism.
There about 30 county land banks in the state. Kent County’s tax foreclosures have been on the rise, and may be about 15- properties in 2011.
The Kent County Land banks approvals are complete, the board has been appointed, and governing documents created and approved. These documents include the articles of incorporation, bylaws, and priorities and policies. The Advisory Board is to be created soon. Also the Land Bank is searching for funding as they have no staff.
Ken indicated that the EDC may be able to partner with the Land Bank with projects, possibly in the Eastern and 52nd Street area and in the BRT corridor, or in the provision of mixed use development.
Lody said that he understood that the properties acquired in a land bank are tax free. What if there is personal property that is leased. Is it taxed? Could the land bank become a landlord. Ken said that it is possible for the land bank to become a landlord.
Richard asked what was the pecking order of acquisition for a tax foreclosed property?
Ken said that first is the State of Michigan, who would be required to pay minimum bid (fair market value) then the municipality, also subject to minimum bid and there must be a public purpose. Next the Land Bank can acquire, also subject to minimum bid but there is not the public purpose requirement. If the Land Bank decides not to acquire the property it goes to public auction.
The question was asked how the city makes sure that it gets the kind of development tit wants when a land bank purchases a property. The Land Bank policies indicate that the Land Bank is subject to a municipality's master plan and zoning regulations. The Land Bank Authority indicated that they wanted to be partners with the local units and will work with them.
Sharon said that this local input is indicated in the LB guidelines.
Ken said that the Advisory Council would bring all people to the table to make sure that the Land Bank is accountable to the community.
Phil asked if an entity has title to a piece of land and the city buys it, would the title be cleared. Ken said this is part of the negotiation; it may make sense for the Land Bank to buy the property to clear title.
Phil also asked when it would make sense for the county to buy property versus the city itself. Ken said that the price would be the same for both; it would be the issue of public benefit. Kentwood has to show a public benefit; the land bank does not.
Would the land bank look at properties as early as this year? Yes.
Ed asked how the negotiated sales are done and who makes a decision on them? Ken said as the Land Bank gets property that they wish to sell they may want to take on a realtor. AT first the Authority would probably look at all property to be sold; later there may be a minimum amount that they want to make a decision on.
Richard said that the Land Bank seems like a good idea. He asked what would prevent the Land Bank from negotiating with a non profit housing authority to build something that a city would not want. Ken said that the Board would help prioritize and give direction to the types of projects we would get involved with. Again the emphasis is community input.
Sharon said that affordable housing is not a top priority for Kentwood. The land Bank must listen to local input and the community’s master plan. She said there will be an informational meeting on March 23rd at the Dominican Center, an elected officials meeting at the Kentwood Library and a meeting for planners in May.
Liz asked if the money for the city’s assessment grant can be used with Land Bank properties since they are Brownfields. Yes. She asked about whether Neighborhood Stabilizations funds can be used—NSP# monies are not available outside the city of Grand Rapids. Possibly if some of the NSP1 monies are still available they could be used in Kentwood, but there are spending deadlines for these funds.
There was discussion about the board and the membership and their appointments. Sharon is at the beginning of a two year term.
There was discussion about the timing of tax foreclosures and the 6 month window available to buy properties before the auction.
Land Bank is looking for funding for paid staff, going to foundations for start up funds. There is limited county support.
Contact Ken to get on an email list for announcements about the Land Bank and educations programs.
Ken Malik discussed a program to help businesses capitalize on the Metro Cruise. There are some businesses that complain about the Metro Cruise since no one can get to their businesses because of the crowds. Ken saw this as an opportunity to hold a seminar to help businesses figure out how they can take advantage of the fact that 300,000 people are in the area over the Metro Cruise weekends. After discussion the EDC agreed to listen to a presentation on this at their April meeting.
4. Forum
The date for the forum has been set: May 11, 2011 from 8:00AM to 12:00 noon. The keynote speaker will be Winn Irwin from Irwin Seating. He will be discussing moving his business back from China. The other topics include: a panel discussion on health care and how employers can cut costs; small business succession planning; recruiting talent and retraining employees; and sustainability; sustainability for businesses. The committee will be getting together to discuss details and secure speakers.
5. 52nd and Eastern
Public meeting was held regarding the three plans developed for 52nd and Eastern Avenue. City is still trying to get in touch with the owner Centro Properties.
The March meeting of the EDC was adjourned. The April meeting of the EDC is scheduled for April 19, 2011.