ACTION REQUESTED:
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Communication from the City Manager and Community Development Director with a Request to RECEIVE and FILE a Report on the DISPOSITION OF LAND.
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BACKGROUND: The purpose of this report back is to provide an overview of the current policy related to the disposition of City owned land. The City recently received a grant from the Illinois Housing Development Authority (IHDA) to study land acquisition and disposition policies. As such, we anticipate bringing an updated policy to Council in early 2019.
In October 2012, a report was sent to Council related to land management. A copy of this report is attached. Subsequent to the 2012 report, a vacant land strategy was developed and implemented.
The current vacant land strategy divides City owned vacant land into four general categories.
1. Land appropriate for a side lot transfer program.
2. Land appropriate for short term development.
3. Land appropriate for long term development.
4. Structures that may be candidates for renovation.
Side Lot Program Category:
Situations that meet the following criteria are considered candidates for the Side Lot Program. If the criteria are met, the lot is transferred, typically for the cost of recording the deed. In most cases, the property owner will be required to combine the side lot parcel and their house parcel into a new single parcel.
1. The lot has limited development potential.
2. The lot is isolated, in that there is not a substantial number of publicly owned lots in proximity to the potential side lot.
3. The applicant is the adjacent property owner, the property is owner occupied, and the adjacent property is not delinquent in any payments to the City, has limited or no history of code violations, and is well maintained.
Land Appropriate for Short Term Development Category:
Situations that meet the following criteria are considered candidates for transfer for development purposes. Any cost/purchase price related to this category would be negotiated on a case by case basis.
1. The lot has potential development value because of legitimate interest by developers and/or it is located in an area where development is occurring.
2. The lot is isolated, in that there is not a substantial number of publicly owned lots in proximity to the potential development lot.
3. The developer is able to provide evidence that there is a legitimate development plan, with adequate financing, and an understanding of any regulatory requirements associated with the development.
4. In cases where there may be more than one interested developer, the City will use a public RFP process to determine the appropriate way forward.
Land Appropriate for Long Term Development:
Situations that meet the following criteria are considered candidates for land banking, in that the land will be held for potential development in the future.
1. The lot has limited or no development value at this time.
2. The lot is not isolated, in that there are a substantial number of other publicly owned - or soon to be publicly owned - vacant lots in proximity to the location.
3. There is no development proposal at this time, or that a more appropriate development proposal may be accomplished by accumulating additional nearby vacant lots and combining them into a larger parcel.
4. There may be cases where the City would consider an interim use - such as urban agriculture - of a land banked lot. However, the City will retain ownership in order to retain the long-term viability of a larger development.
Renovation Candidates:
In a very limited number of cases, the City will take ownership of a property with a structure that is a potential candidate for renovation. In these cases, the following steps are followed:
1. The property is inspected by a City Building Inspector to determine initial renovation feasibility.
2. The property is inspected by a real estate agent to determine initial marketability.
3. If the building is determined to be a good candidate for renovation, an RFP is released for interested parties to respond to.
4. If a reasonable offer is submitted, the property will be sold to the bidder.
Please note that all property transfers within TIF districts require public notice and the opportunity for other interested parties to submit a request to purchase.
FINANCIAL IMPACT: The Side Lot Program does not create a significant amount of revenue, but it does add value to private property and helps improve the overall perceived value of neighborhoods. Parcels transferred for development purposes can result in revenue increases due to the value of the development on the parcel. In all cases where lots are transferred, the maintenance cost incurred by the City is reduced by approximately $400 per year, per lot.
NEIGHBORHOOD CONCERNS: The Side Lot Program has been popular and we anticipate an expansion of this program with additional marketing in the Fall.
IMPACT IF APPROVED: NA
IMPACT IF DENIED: NA
ALTERNATIVES: NA
EEO CERTIFICATION NUMBER: NA
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Beautiful Peoria
2. Grow Peoria
3. Financially Sound City Government
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Support sustainability.
3. Have an efficient government.
DEPARTMENT: Community Development