Mayor Luke Ravenstahl reviewed a 2012 Interim Annual Operating Proforma for incremental scaling of land banking based on net positive revenue created by the current system.
Recommendations: Enable a land recycling business team to build upon the LRTF work, enhance the current system, scale up for comprehensive land recycling, and use funds created by the land recycling system.
Proposed 2012 land recycling goals: Act on 30% of the delinquent portfolio assumed abandoned, and bring up to 30% of that part of the delinquent portfolio back to taxable status or productive reuse.
Mayor Response: Mayor immediately scheduled internal meetings with his Solicitor and Budget Director to detail the team and budget.
Land Bank Working Group Preliminary Recommendations:
Five options for structuring a land bank were examined in committee. The best two options for recommendation are a land bank authority under new state law or a new department or entity within the URA.
Financing Working Group Preliminary Recommendations:
Projected Costs of $3.7 Million, after clearing the backlog, to acquire new delinquent parcels and maintain and dispose of the inventory within a predictable, uniform system for all delinquent accounts on an ongoing basis. Revenue options include private start up capital and sustainable revenue from penalty and interest payments added on to late payer delinquent taxes and dedicating part of that revenue to land bank operations.
State Legislation and Mayor's Leadership Recommendations:
LRTF presented on state legislative opportunities for Mayor Luke Ravenstahl's that built upon the Mayor's leadership around land recycling:
1. State land banking bill
2. State real estate tax sales reform bill
3. State authorization for City of Pittsburgh & Pittsburgh School District delinquent real estate tax penalty & increased interest authorizations
Fifth Meeting: March 2, 2011
Finance and Land Bank Working Groups Verbal Reports and LRTG open discussion of land bank choice of entity and financing based on the working group's preliminary analyses.