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HomeMy WebLinkAbout129442009017609 Received: 3/19/2009 9:46:19 AM Recorded: 0311912009 11:24:51 AM Filed & Recorded in Official Records of PAT O'BRIENJ. PULASKI COUNTY CIRCUIT /COUNTY CLERK 1 RESOLUTION NO. 12,944 Fees $90.00 2 3 A RESOLUTION TO APPROVE THE LAND BANK POLICIES AND 4 PROCEDURES, GOALS, AND MISSION STATEMENT AS GUIDELINES FOR 5 THE ACQUISITION AND DISPOSAL OF PROPERTIES; TO INCLUDE THE 6 POLICIES AND PROCEDURES, GOALS, AND MISSION STATEMENT IN THE 7 LAND BANK COMMISSION BY -LAWS; AND FOR OTHER PURPOSES. 8 9 WHEREAS, the purpose of the Land Bank Commission ( "Commission ") is to reverse urban blight, 10 increase home ownership and stability of property values, provide affordable housing, improve the health 11 and safety of neighborhoods within the City of Little Rock (the "City "), and maintain the architectural 12 fabric of the community, and 13 WHEREAS, after public input and discussion, the Commission has developed and approved Policies 14 and Procedures, Goals, and a Mission Statement to be added to the Commission By -Laws that will be the 15 guidelines to follow in the acquisition and disposal of properties. 16 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY 17 OF LITTLE ROCK, ARKANSAS: 18 Section 1. The Board of Directors hereby approves the Land Bank Commission Policies and 19 Procedures, Goals, and Mission Statement, copies of which are attached to this resolution, as guidelines to 20 be followed in the acquisition and disposal of properties. The Board further approves the inclusion of the 21 Policies and Procedures, Goals, and Mission Statement in the Commission By -Laws. 22 Section 2. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or 23 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or 24 adjudication shall not affect the remaining portions of the resolution which shall remain in full force and 25 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the 26 resolution. 27 Section 3. Repealer. All laws, ordinances, resolutions, or parts of the same, that are inconsistent 28 with the provisions of this resolution, are hereby repealed to the extent of such inconsistency. 29 30 ADOPTED: March 3, 2009 31 // ,•` ENE C l RC F Gf� �. (PAGE I OF Z] V a 0 ' Resolution � -, J. To authorize adoption of Land Bank Policies and Procedures, • _`y Goals, and Mission Statement into By -Laws ......., .....'` I ATTEST: 2 3 4 Nancy Wood, Cgy Clerk 5 6 APPROVED AS TO LEGAL FORM: 7 9 Thomas M. Carpente , Ci ttorney 10 11 // 12 13 // 14 // 15 // 16 17 /l 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 // 26 // 27 28 // 29 30 // 31 // 32 // Resolution [PAGE 2 OF 21 To authorize adoption of Land Bank Policies and Procedures, Goals, and Mission Statement into By -Laws LITTLE ROCK LAND BANK COMMISSION Mission Statement The mission of the Little Rock Land Bank Commission is to reverse blight, increase home ownership and stability of property values, provide affordable housing, improve the health and safety of neighborhoods within the City of Little Rock (the "City "), and maintain the architectural fabric of the community through the study, acquisition, and disposition of vacant, abandoned, tax delinquent, and city lien property while collaborating with citizens, neighborhoods, developers, non - profit organizations and other governmental agencies. LITTLE ROCK LAND BANK COMMISSION GOALS Programmatic 1. Acquire at least 100 properties during each of the program from 2009 — 2011 with the purpose of returning the property to its best and most productive use. 2. Establish a side lot program and convey at least 20 side lots per year, to assist in the elimination of abandoned property that is not on the tax rolls. 3. Use the Land Bank disposition program to promote the construction of new homes in blighted areas by allowing the considered use for vacant lots to be the building of new single - family homes. 4. Participate in the preservation of historic properties by acquiring and disposing of historic properties with development agreements that prohibits demolition and provide for the redevelopment of the historic properties. 5. Collaborate with other agencies to develop a comprehensive approach to revitalizing neighborhoods with the focus of the revitalization efforts to include real estate development, crime, schools, business and code enforcement. Organization 1. Keep the Land Bank Commission operating as efficiently as possible by collaborating with existing capacity at the City of Little Rock and other nonprofit and governmental agencies. 2. Create a communication plan that emphasizes making the public aware of the Land Bank programs and how to access them. In addition, the plan should create a system to collect, review, and respond to public input on a continuous basis. 3. Establish a board and staff development and training program to increase the capacity of the organization. This can be accomplished in several ways including mini - trainings at board meetings, literary reviews, conference attendance, and consultant visits. 4. Expand the existing GIS system to allow LBC staff to collect and analyze data and generate charts and maps. Financial 1. Utilize tax Increment financing (TIF) to leverage existing funds to increase the amount of development occurring in Little Rock. Consider lobbying for the use of TIF for property acquisition and redevelopment by the LBC. 2. Fully utilize the funds existing for the LBC to purchase strategic properties. 3. Establish a requirement for developers to leverage other private and public funds from outside Little Rock to finance real estate development projects. 4. Create a toolbox of financial tools and resources to share with interested developers. 5. Develop a toolbox of financial resources to fund Land Bank Commission activities. LITTLE ROCK LAND BANK COMMISSION PRIORITIES AND POLICIES FOR PROPERTY ACQUISITION AND DISPOSITION As approved by the Board of Directors on Contents Page 1. Policies Governing the Acquisition of Properties 2. Priorities Concerning the Disposition of Properties 2 3. Factors in Determining Consideration Due Upon Transfers 4 4. Side Lot Disposition Program 5 5. Land Transfers 7 6. Donation Policy g The acquisition and disposition of properties acquired by the Little Rock Land Bank Commission (LBC) shall be guided by the following basic priorities and policies. These Priorities and Policies also establish procedures for LBC staff to administer applications for acquisition and disposition of LBC properties. Any applicant who applies for acquisition of LBC property and has their application denied by LBC staff may appeal the denial to the LBC by submitting their application to the LBC in writing within thirty (30) days of notice from LBC staff to the applicant of the denial of their application. The acquisition, use, and disposition of such properties shall at all times be consistent with the authority granted by the Constitution of Arkansas, the laws of the state of Arkansas, the Ordinance No.19.911 by the City of Little Rock, the articles of incorporation and bylaws of the LBC, and the public purposes set forth therein. If there is any conflict between Ordinance No. 19.911 by the City of Little Rock, the articles of incorporation and bylaws of the LBC and these Priorities and Policies then these Priorities and Policies shall be interpreted in such a way that they do not limit or restrict the authority of the LBC. These Policies and Procedures are guidelines to be followed by City Staff. 1. Policies Governing the Acquisition of Properties In determining which, if any, properties shall be acquired by the LBC, the LBC shall give priority to properties located in focus neighborhoods, as determined by the LBC, and shall give consideration to the following factors: 1. Proposals and requests by nonprofit corporations that identify specific properties for ultimate acquisition and redevelopment 2. Properties that are subject to a city lien for code violations, and can be foreclosed on by the City 3. Proposals and requests by governmental entities that identify specific properties for ultimate use and redevelopment. 4. Proposals and request by private developers that identify specific properties for acquisition and redevelopment. 5. Input from citizens and neighborhoods. 6. Properties that are considered vacant and abandoned property 7. Properties that are tax - delinquent and offered at the auction 8. Properties that are environmentally contaminated where funds have been secured for the clean -up and reuse of the property 9. Properties that are available through donation by a private owner 10. Properties that are bank - foreclosed. 11. Properties that would allow for the creation or expansion of green space 12. Improved properties that are the subject of an existing order for demolition of the improvements and properties that meet the criteria for demolition of improvements 13. Non - conforming, undevelopable vacant properties for which the best use would be to place the property into the Side Lot Disposition Program. 14. Properties that would form a part of a contiguous or scattered land assemblage development plan 15. Properties that will result in the planned development that benefits the community, and are supported by the local government. 2. Priorities Concerning the Disposition of Properties The disposition of properties shall be based upon a combination of three different factors. The first factor involves the intended or planned use of the property. The second factor considers the nature and identity of the transferee of the property. The third factor addresses the impact of the property transfer on the short and long term neighborhood and community development plans. The priorities in each factor are not in any particular rank or order. The disposition of any given parcel will be based upon an assessment of the most efficient and effective way to maximize the benefit to the community. The Board and Staff of the LBC shall at all times retain flexibility in evaluating the appropriate balancing of the priorities for the use of property, priorities as to the nature of the transferee of properties, and priorities concerning neighborhood and community development. Priorities for Use of Property 1. Develop affordable housing 2. Support homeownership 3. Market rate housing development 4. Social service providers 5. Side lots 6. Development of public green space (parks and gardens) 7. Retail and commercial development 8. Multi- family rental development 9. Tax - exempt institutions 2 10. Development of rental housing 11. Public uses and buildings 12. Planned Unit Development (ownership) 13. Historic preservation Priorities as to the Nature of the Transferee 1. Individual homeowners 2. Non - profit developers 3. Educational institutions 4. Government 5. Tax Exempt Institutions 6. For - profit residential developers 7. Multi -lot developer 8. Corporations /business /retail, etc. 9. Side lot candidates 3. Factors in Determining Consideration Due Upon Transfers The following factors shall constitute general guidelines for determination of the consideration to be received by the LBC for the transfer of properties. In each and every transfer of real property the LBC shall require good and valuable consideration in an amount determined by the LBC in its sole discretion on a case by case basis. The LBC will consider both the fair market value of the property and the Property Costs in its determination of consideration for each property. "Property Costs" shall mean the aggregate costs and expenses of the LBC attributable to the specific property in question, including costs of acquisition, maintenance, repair, demolition, marketing of the property and indirect costs of the operations of the LBC allocable to the property. 1) Consideration shall be established at a level between the Property Costs and fair market value of the property. 2) The consideration to be provided by the transferee to the LBC may take the form of cash, deferred financing, performance of contractual obligations, imposition of restrictive covenants, or other obligations and responsibilities of the transferee, or any combination thereof. At no time, shall a property be conveyed for less than $1000 per parcel. 4. Side Lot Disposition Program Individual parcels of property may be acquired by the LBC and transferred to individuals in accordance with the following policies. The transfer of any given parcel of property in the Side Lot Disposition Program is subject to override by higher priorities as established by the LBC on a case by case basis. A. Side Lot Disposition Policies Qualified Residential Properties. Parcels of property eligible for inclusion in the Side Lot Disposition Program shall meet the following minimum criteria: (a) The property shall be vacant unimproved real property. (b) The property shall be physically contiguous on one side lot line to another lot owned by transferee (left or right). (c) The Side Lot property shall have characteristics which make redevelopment as single family housing unfeasible (such as lot size or topography.) (d) No more than one lot may be transferred per contiguous lot. (e) Intended use for lot is disclosed. (f) The transfer shall include a deed restriction requiring the use of the property to be consistent with the stated use. 2. Transferees. (a) All transferees must hold title and occupy the contiguous property. (b) The transferee must not own any real property (including both the contiguous lot and all other property in Little Rock) that is subject to any unremediated citation of violation of the state and local codes and ordinances. (c) The transferee must not own any real property (including both the contiguous lot and all other property in Little Rock) that is tax delinquent. (d) The transferee must not have been the prior owner of any real property that has been lost for unpaid taxes within the past 3 years, as an individual or an entity, without prior approval of the LBC at its sole discretion. 4 3. Pricing (a) Properties sold as a side lot to an adjacent owner shall be priced at $200 plus any applicable fees. 4. Additional Requirements (a) In the event that multiple adjacent property owners desire to acquire the same side lot, the lot shall be transferred to the highest bidder for the property. 5. Land Transfers A. Land Transfer Policies These policies pertain to transfers whose future use is residential or commercial. At time of transfer the property may be vacant, improved or ready to occupy. The transferee must not own any real property that has any unremediated citation of violation of the state and local codes and ordinances. 2. The transferee must not own any real property that is tax delinquent. 3. The transferee may not have lost title to property due to non- payment of taxes within the past 3 years, as an individual or as an entity, without prior approval of the LBC at its sole discretion. 4. Transactions shall be structured in a manner that permits the City of Little Rock to enforce recorded covenants or conditions upon title pertaining to development and use of the property for a specified period of time. 5. The proposed use must be consistent with current zoning requirements. The LBC may grant an applicant permission to seek rezoning from the Little Rock Planning Commission. 6. Where rehabilitation or development of a property by the transferee is a condition of the transfer, the requirement for such development or rehabilitation shall be in accordance with the transfer agreement and adequate completion of such development or rehabilitation shall be a condition to the release of restrictions or lien securing such performance. 7. The Land Bank Commission may grant an option to purchase property to a potential transferee. Options to purchase more than 3 properties by a single purchaser within one calendar year must be approved by the Land Bank Commission. 8. The proposed use of the property must comply with any neighborhood redevelopment plan adopted by the Commission or the City of Little Rock that applies to the property. 9. To the extent possible, the proposed purchaser shall provide evidence that they have consulted with any neighborhood organization in the area and solicited comment on the planned use of the property. 10. All applicants must be residents of the City of Little Rock or have a principle place of business in the City of Little Rock. If applicant does not meet this requirement, applicant may take application to the Land Bank Commission to seek an exception. 6. Donations A. Donated Property Policies 1. Properties with adverse environmental conditions will not be accepted without a satisfactory funded plan for remediation approved by the LBC and meets the standards set by the Arkansas Department of Environmental Quality. 2. Properties with immediate maintenance requirements will not be accepted without a funding sourced secured for such maintenance. 3. The LBC will not determine donation value for the purpose of tax benefits, but will provide a letter describing the property donated. 4. The LBC will only accept donated properties located within a neighborhood of focus. 5. The LBC reserves the right to refuse to accept any properly offered for donation at its sole discretion. B. Donated Property Procedures 1. Donor of property will place the deed to property in escrow while LBC determines the feasibility of accepting ownership of the property. 2. LBC will complete a comprehensive analysis of the property to be donated which will include the following information: a. Determine the fair market value of the property. b. Determine if there are any environmental concerns. c. Determine if there are any outstanding liens. d. Determine the initial maintenance cost (boarding, demolition, mowing) e. Determine any on -going maintenance cost. f. Determine the condition of the surrounding neighborhood 3. LBC staff will present the report to the full Board of Directors for approval. 7