MOUNT VERNON — The Knox County Land Bank started off 2024 by returning 12 Apple Valley lots to the tax rolls.
In August 2023, the county prosecutor’s office filed 85 foreclosure applications on the parcels that were delinquent on back taxes. Total delinquency was between $250,000 and $300,000.
Twelve properties sold at sheriff’s sale on Jan. 5, bringing in $158,500.
The land bank did not take possession of the parcels, and the money does not go into land bank coffers. The goal of the foreclosure process is to return the parcels to the tax roll and return at least a measure of back taxes to the entities involved.
“This is doing it for the good of the community, not necessarily for our bank account,” Land Bank Vice President Sam Filkins said of the foreclosure process. “The good part is from a community goodwill spirit, taxes will be paid, and the Apple Valley Property Owners Association will be made whole. These agencies that have been holding debt will be repaid.”
Land bank grant reimbursement
Another bright note is the land bank’s success with 2023 grant money for demolition and brownfield projects.
Of the $1.502 million awarded, the land bank spent $1.361M, leaving $140,764 remaining. However, $44,360 is in limbo.
Asbestos abatement on the former Siemens administration building in Heartland Commerce Park cost less than anticipated. However, under brownfield grant guidelines, the money is designated for a specific project.
“So we saved $44,000, but I can’t use it for other projects,” Filkins said. “My point to them is there is no incentive to be cost-effective. So I have $44,000 I can’t use.”
Of the $1.36M spent, $144,072 is yet to be reimbursed.
The land bank completed nine of 11 demolition projects and both brownfield projects under the initial grant cycle.
Under the new grant cycle, two demolished structures account for $67,692. A third is demolished but yet to be paid ($69,836), and a fourth is scheduled for demolition this week ($17,562).
Land bank property status
The land bank recently acquired 15 Clinton Township parcels from the Foundation Park Conservancy. Filkins said 12 are full buildable lots.
Other acquisitions are in various stages of work.
•18 E. Vine St.
The interior demolition is complete, and crews removed the ink tank in the former Mount Vernon News building with no EPA issues. CK Construction (formerly Corna Kokosing) is the contractor-at-risk for the project.
Contractor-at-risk means the contractor is involved in the design phase. Because it participates in design, the company is responsible for cost overruns.
Filkins recently met with Sol Harris Day architects and CK Construction representatives to resolve differences in cost estimates.
The land bank will donate the outside logo sign letters for “Mount Vernon News” to the former owner and Knox County Historical Society.
•11299 Lower Green Valley Road
The land bank acquired the house at 11299 Lower Green Valley Road in November 2023. The estimated demolition cost is $44,000.
•301 and 303 N. Norton St.
Crews demolished the house at 303 N. Norton in August 2023. The District 5 Area Agency on Aging is in the fundraising phase to build eight senior apartments on the site.
•621 N. Sandusky St.
Crews demolished the structure this week.
•80 Miller St., Centerburg
The land bank acquired the former Canterbury Villa nursing facility in June 2022 and demolished it in September 2023 ($51,805).
An interested buyer is in a 120-day due-diligence phase. If the buyer proceeds, he will have 60 days after that to close on the property. Plans are for single-family homes.
•17 E. Main St., Centerburg
The land bank bought the former In Town Restaurant in December for $95,000. Plans are to demolish the structure.
Heartland Commerce Park
Land Bank President Jeff Gottke said three building sales garnered about $3.5 million in 2023, but there is about $7M worth of property available to sell.
“As we sell things, our operating costs go down,” he noted. “We’ve got money in the bank, and we were able to create an investment fund. We will have to draw on that in 2024, but that was planned.”
Additionally, HCP signed an electric aggregation program for its buildings. The campus is not eligible to participate in the city’s aggregation program.
An estimated $30,000 worth of storm sewer work remains for 2024. Parking lot improvements and electric work are also on tap.
“We feel good about where things are,” Gottke said.
Local officials began exploring the idea of a county land bank in September 2017. Formally called the Knox County Land Utilization Corporation, the Knox County Land Bank™ officially organized in June 2018 and acquired its first properties that fall.
“When you think back on when we started, we had meetings with absolutely nothing going on,” land bank board member Tyler Griffith said. “It’s pretty amazing what we’ve done in six years.”
