ACTION REQUESTED:
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Communication from the City Manager with a Request to Receive and File a Report of PRIVATE PROPERTY AQUIRED by the City of Peoria Economic Development Staff Between 2012 and 2015 (YTD).
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BACKGROUND: In 2013 the City began exploring options for assembling land in older areas of the City for potential urban redevelopment. Since the beginning of 2014, the City has increased its land assembly efforts by assuming ownership of properties in a number of ways:
o Strategic Acquisition - maximizing dollars allocated by the City Council for purchasing property
o Court Ordered Judicial Deed - the abandoned property process
o Donations from private citizens and organizations
o Donations from Lending Institutions - through the National Community Stabilization Trust Donation Program
o Special Acquisitions such as Resident Officer Program
Each quarter Staff will provide Council with a report regarding properties under the City's ownership. This first report is included on the Council agenda; future reports will be included in Issues Update. The reports will include the total number of properties for previous years beginning in 2012; total number of acres/square miles assembled; the amount of funds spent for acquisition, not including legal costs; and a location map of City-owned properties by year of ownership.
Each year staff strives to minimize expenditures while also striving to increase the number of properties owned by the City. The greatest opportunity for successful development in older areas of the City is to assemble large areas of land. It can be assumed that for a new residential development to become self-sustaining and stimulate further growth, a minimum of several blocks of land would be needed. Until then it is unlikely that developers would be interested in investing in new residential development in these areas.
Over the past few years, the City Council and City staff have worked with state legislators to craft bills that would facilitate the process of acquiring blighted and neglected properties. While those efforts will continue, the City has faced stiff resistance from special interest groups who are reluctant to give municipalities greater abilities in this area.
In 2012 and 2013, the City assumed ownership of 43 properties, spending a total of $78,444. This amount included a Council approved purchase of commercial property for $68,236. The City assumed ownership of the remaining 42 properties for a total of $10,208.
In 2014, the City assumed ownership of 76 properties, spending a total of $57,557. This amount included a Council approved purchase of a resident officer home in the amount of $54,362. The City assumed ownership of the remaining 75 properties expending $3,195.
Between January 1 and March 31, 2015, the City assumed ownership of 77 properties, spending a total of $26,333. This amount included a Council approved purchase of a commercial property for $25,694. The City assumed ownership of the remaining 76 properties expending $639.
The attached map indicates the beginning of clusters in certain areas (Exhibit A). Also attached is the list of properties acquired by year (Exhibit B).
FINANCIAL IMPACT: The City spends a minimal amount of funds to acquire property. Apart from commercial property acquisition and the purchase of a residential officer house, since 2012 the City has expended $14,042 to acquire 195 parcels. Acquisition of property is intended to lead to future development.
NEIGHBORHOOD CONCERNS: Properties are usually acquired through the abandoned property law, by donation from a private individual, or through donation by a lending institution. In all cases, these properties are vacant and abandoned and are a blighting influence on the neighborhood. City ownership usually results in expedited demolition, which improves the neighborhood.
IMPACT IF APPROVED: The report will be received and filed.
IMPACT IF DENIED: The report will not be received and filed.
ALTERNATIVES: None.
EEO CERTIFICATION NUMBER: Not applicable.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Have an efficient government.
DEPARTMENT: City Manager's Office