MOUNT VERNON — Since the inception of land banks in the 1970s, communities have used them as a tool to eliminate blight and return properties to productive use. Today in Ohio, 54 land banks work to revitalize neighborhoods and encourage economic development.
In 2009, facing four- to five-year waits to resolve foreclosure cases and with vacant houses approaching 20 percent, Cuyahoga was the first county in Ohio to establish a land bank. Initially restricted to counties with a population of more than 60,000, land banks were opened to all counties in 2015.
When Knox County started its land bank, technically called Knox County Land Reutilization Corporation, local officials agreed that the county does not have a lot of abandoned buildings. It does, however, have vacant, boarded up, or foreclosed properties that need attention.
Local officials first learned about land banks in September 2017. They spent the next 12 months creating and organizing the land bank structure and began acquiring properties in earnest in the fall of 2018.
Fourteen months later, it is evident that the land bank is making headway in reducing blight and increasing economic vitality. The numbers tell the story:
–$2 million in new payroll
–$1.46 million in value returned to tax rolls
–34 new jobs created
–33 parcels back on tax rolls (41.5 acres)
–Seven demolitions
–Five rehabbed properties
–Four new houses
“If you take all of that together, all the rehabilitation, all of the new houses, you have $3.5 million in reinvestment that the land bank has been able to bring into the county,” said Land Bank President Jeff Gottke. “For every $1 the land bank spends, we generate $33.82 in redevelopment.”
“You can talk a lot about what we do, but when you can put out statistics, it really helps,” said County Commissioner Teresa Bemiller, chair of the land bank board.
The land bank targets abandoned properties that are vacant and tax delinquent.
“Difficult properties, I think that’s where you can see some real benefit from the land bank,” said Gottke.
He cited 304 E. Ohio Ave. as an example. The owner was in prison and had no means to do anything about the property. Additionally, the city had condemned the property.
Other examples are 244 Newark Road and 505 N. Jefferson St., both of which were in foreclosure.
“The owners walked away and couldn’t be contacted,” explained Gottke. “The traditional method of foreclosure or using city code didn’t work in those instances. Operating in these difficult conditions really shows [the land bank’s] value.”
Gottke said that there has been a lack of understanding because the land bank is so new.
“An entity with this type of structure doesn’t exist anywhere in the county,” he said. “But I think a lot of suspicion has been abated, and people are seeing the value of it.”
Looking to the future
Although Gottke is pleased with the number of parcels the land bank has successfully resolved over the past 14 months, he is not focused on reaching a particular number or percentage of potential properties.
“I think more in terms of value, not only in the increased property value to that particular parcel, but the return of that parcel to the tax rolls, and the increased value to the neighborhood,” he said.
All of that, he said, points to a better quality of life.
Gottke acknowledged there is still a lot of work to do. He noted that these early successes are properties that were relatively easy to resolve. He estimates there are about 300 properties countywide that could benefit from land bank involvement. In Mount Vernon, the land bank currently has identified 126 tax delinquent, vacant, or dilapidated properties for possible acquisition.
“For a new entity, I think things did work pretty well this year, but I think we could be more proactive. We can do more than 33,” he said. “We were able to return the worse of the worst, in the city, anyway, to productive use.”
Gottke said the next progression for the land bank is neighborhood development programs.
“It would be great if the land bank could provide financial assistance to homeowners in neighborhoods,” he said. “As the [state] demolition money runs out, the land bank has to think past just tearing down houses. You always have to think from a development standpoint, not just a demolition standpoint.”
Neighborhood development is already underway on the city’s near-east side, thanks to a blueprint developed through the Area Development Foundation. Lucas Kreuzer, a Kenyon College intern working with the ADF, presented the blueprint for the Roundhouse District to the land bank last month.
Several individuals have bought property with an eye toward revitalization. Two buyers are looking at rehabbing the houses; the third buyer is not yet sure whether he will rehab or turn the lot into green space.
A neighborhood meeting is set for Monday, March 16, at 6:30 pm at The Salvation Army to discuss the plan and get residential input.
Plans call for a similar blueprint for Columbus Road and the Sandusky and West High street corridors. Gottke anticipates completing those plans this year.
Job creation
AMG Industries has been a staple in the Mount Vernon industrial community since 1966. It owns and occupies the building at 200 Commerce Dr. and previously rented the two buildings at 300 Commerce Dr.
Last year, the two buildings were sold, and AMG lost its leases. AMG faced either consolidating all operations into one building, moving the operations housed in 300 Commerce Dr. to another local site, or relocating the operations out of state. Relocating meant a loss of local jobs.
When the Knox County Board of Developmental Disabilities decided to sell its property at 1375 Newark Road, the site of New Hope Industries, it was not without controversy. For AMG, it presented an opportunity to expand locally.
AMG bought the property and relocated its business. The move did more than enable AMG to retain jobs and local operations.
“It also enabled them to expand their operations and bring in new business that their parent company brought in,” said Gottke.
That new business created 34 new jobs and $2 million in payroll.
The land bank marketed the property on behalf of the county. Gottke said that the land bank’s ability to choose the end buyer played a role in job and product retention and growth.
Housing
Through land bank involvement, five properties were bought by investors interested in rehabbing the structures. One rehab was the building at 1375 Newark Road. The former fire station at 215 Ames Street is transformed into a contemporary single-family residence. Other properties being rehabbed include:
–304 E. Ohio Ave.
–407 N. West St.
–244 Newark Road
On Feb. 13, the land bank voted to acquire and sell two more parcels in Apple Valley to McKenzie Investments LLC. Both parcels were forfeited to the state because they did not sell at two sheriff’s sales. McKenzie Investments plans to build single-family homes on both parcels.
Gottke said research shows that in the next four years, there will be a housing shortage of 1,200 units.
“The land bank isn’t going to be able to take care of all of that, but it certainly can be a player,” he said. “The land bank is able to take homes that are not viable and find a buyer who will either live in or rehab the house to meet the demand for workforce housing.”
The land bank has also stimulated new construction. A private buyer combined three vacant lots in Rich Hill into one parcel and built a single-family home. Habitat for Humanity bought a lot on Apple Valley Drive for a new build, a Galena couple is planning to build a new home on Lakeview Heights Drive, and a developer bought a parcel on Valleyridge Drive for a new home site.
Green space
One option land banks have for acquired properties is returning the parcel to green space. Such is the case for several properties the Knox County Land Bank acquired, including 505 N. Jefferson St. and 504 E. Ohio Ave. in Mount Vernon. Houses on both parcels were demolished.
The land bank sold three East Street properties in Howard to the Knox County Park District as an entryway to Hellbender Preserve. Houses on two of the parcels were demolished.
Three parcels on North Center St. in Mount Vernon, five lots in Brinkhaven, and five in Apple Valley also are now green space.
The land bank is working to return a parcel on Canal Street in Brinkhaven to green space. The partnership involves the Ohio Department of Natural Resources, which owns the adjacent land, and the Knox County Park District, which has agreed to maintain the area.
The Heart of Ohio Trail Board is interested in a parcel on Lytle Road adjacent to the trail. End-use plans for the green space include a garden, history exhibit, or outdoor art.
