Press Release – April 27, 2015
Delaware Senate Majority Caucus
For Immediate Release
Contacts: Jesse Chadderdon (302) 744-4282 or (302) 743-0945;
Patrick Jackson (302) 744-4046 or (302) 242-0036
Delaware Senate Majority Caucus
For Immediate Release
Contacts: Jesse Chadderdon (302) 744-4282 or (302) 743-0945;
Patrick Jackson (302) 744-4046 or (302) 242-0036
Land Bank legislation offers new tool to combat blight, re-energize Delaware’s towns and cities
WILMINGTON – Parts of the state struggling with vacant and abandoned property issues could soon see renewed investment if new legislation unveiled at a Monday press conference becomes law.
The Delaware Neighborhood Conservation and Land Bank Act, proposed by Sen. Bryan Townsend, would allow any jurisdiction in Delaware with a long-term vacancy rate above 3 percent, to form a land bank, which could pool resources from a variety of sources to purchase abandoned properties for targeted redevelopment.
Land banks could be formed at the county level, by individual cities or towns, or as partnerships between multiple political subdivisions. Using a combination of public funds, grants, private investment and property sale proceeds, Delaware’s land banks would become a repository for vacant, tax-delinquent properties.
“These abandoned properties, left unaddressed, create a host of problems for communities across our state,” Townsend said. “They attract a criminal element, can become neighborhood eyesores and ultimately lead to depressed property values and a depleted tax base.
“Redevelopment efforts are most successful when there’s planning and coordination between stakeholders. The land bank process encourages that cooperation, and allows for additional controls over the future uses of these once-problem properties,” Townsend added. “The ultimate goal is to return these properties to a use that benefits both the new owners and the community at large.”
Other sponsors of the Land Bank Act include the entire Wilmington House and Senate delegation, and Rep. Bryon Short, D-Brandywine, who chairs the House Economic Development, Banking, Insurance and Commerce Committee.
“The proposed Land Bank legislation is the culmination of a year-long effort on the part of numerous stakeholders to more efficiently utilize limited financial resources,” Short said. “It will enable communities to address the problem of abandoned and blighted properties where the market has failed to do so. I look forward to this legislation working to strengthen communities throughout Delaware.”
Under the proposed legislation, land banks could acquire properties via a number of mechanisms, including:
Monday’s press conference was held in the 300 Block of North Broom Street in Wilmington. Several vacant and abandoned properties dot the neighborhood, which was the site of a January shooting and subsequent weapons and drug arrests. While land banks would be available to communities across the state, Wilmington stands to benefit significantly.
“Vacant and blighted housing in Wilmington negatively impacts the quality of life for city residents, decreases property values and is often connected to criminal activity,” said Mayor Dennis P. Williams. “With the support of the Wilmington House and Senate delegation, we look to work towards creating a land bank that will hopefully eliminate the vacant properties and transform them into productive sites through private development and public use, in ways that will increase property values and protect communities.”
Wilmington City Council President Theo Gregory agreed and emphasized the public-private partnerships the land banks are expected to help foster.
“The legislation under consideration would provide an enormous lift to the cities, towns and counties in Delaware that struggle each day to overcome the negative effects of blight and vacant properties,” Gregory said. “A land bank allows local governments to further develop their public, private and non-profit partnerships and pool the resources needed for investing in significant numbers of neglected properties, thus transforming whole blocks or multiple blocks for home ownership. City Council thanks our state officials for understanding what will help us and others throughout the state to make positive, wholesale changes to our communities.”
The legislation, Senate Bill 66, has been assigned to the Senate Banking & Business Committee, which Sen. Townsend chairs. It will be discussed Wednesday at a 12:30 p.m. hearing in the Senate Hearing Room at Legislative Hall.
The Delaware Neighborhood Conservation and Land Bank Act, proposed by Sen. Bryan Townsend, would allow any jurisdiction in Delaware with a long-term vacancy rate above 3 percent, to form a land bank, which could pool resources from a variety of sources to purchase abandoned properties for targeted redevelopment.
Land banks could be formed at the county level, by individual cities or towns, or as partnerships between multiple political subdivisions. Using a combination of public funds, grants, private investment and property sale proceeds, Delaware’s land banks would become a repository for vacant, tax-delinquent properties.
“These abandoned properties, left unaddressed, create a host of problems for communities across our state,” Townsend said. “They attract a criminal element, can become neighborhood eyesores and ultimately lead to depressed property values and a depleted tax base.
“Redevelopment efforts are most successful when there’s planning and coordination between stakeholders. The land bank process encourages that cooperation, and allows for additional controls over the future uses of these once-problem properties,” Townsend added. “The ultimate goal is to return these properties to a use that benefits both the new owners and the community at large.”
Other sponsors of the Land Bank Act include the entire Wilmington House and Senate delegation, and Rep. Bryon Short, D-Brandywine, who chairs the House Economic Development, Banking, Insurance and Commerce Committee.
“The proposed Land Bank legislation is the culmination of a year-long effort on the part of numerous stakeholders to more efficiently utilize limited financial resources,” Short said. “It will enable communities to address the problem of abandoned and blighted properties where the market has failed to do so. I look forward to this legislation working to strengthen communities throughout Delaware.”
Under the proposed legislation, land banks could acquire properties via a number of mechanisms, including:
- Purchasing property liens from the local jurisdictions;
- Acquiring properties at sheriff’s sales on credit from the jurisdiction;
- Asserting a trump bid at a sheriff’s sale allowing the land bank to acquire abandoned property for the price of the outstanding liens.
Monday’s press conference was held in the 300 Block of North Broom Street in Wilmington. Several vacant and abandoned properties dot the neighborhood, which was the site of a January shooting and subsequent weapons and drug arrests. While land banks would be available to communities across the state, Wilmington stands to benefit significantly.
“Vacant and blighted housing in Wilmington negatively impacts the quality of life for city residents, decreases property values and is often connected to criminal activity,” said Mayor Dennis P. Williams. “With the support of the Wilmington House and Senate delegation, we look to work towards creating a land bank that will hopefully eliminate the vacant properties and transform them into productive sites through private development and public use, in ways that will increase property values and protect communities.”
Wilmington City Council President Theo Gregory agreed and emphasized the public-private partnerships the land banks are expected to help foster.
“The legislation under consideration would provide an enormous lift to the cities, towns and counties in Delaware that struggle each day to overcome the negative effects of blight and vacant properties,” Gregory said. “A land bank allows local governments to further develop their public, private and non-profit partnerships and pool the resources needed for investing in significant numbers of neglected properties, thus transforming whole blocks or multiple blocks for home ownership. City Council thanks our state officials for understanding what will help us and others throughout the state to make positive, wholesale changes to our communities.”
The legislation, Senate Bill 66, has been assigned to the Senate Banking & Business Committee, which Sen. Townsend chairs. It will be discussed Wednesday at a 12:30 p.m. hearing in the Senate Hearing Room at Legislative Hall.
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Press Contacts
Scott Goss
Communications Director
(302) 744-4180
scott.goss@delaware.gov
Dylan McDowell
Communications Assistant
(302) 744-4282
dylan.mcdowell@delaware.gov
Scott Goss
Communications Director
(302) 744-4180
scott.goss@delaware.gov
Dylan McDowell
Communications Assistant
(302) 744-4282
dylan.mcdowell@delaware.gov