One of the most exciting case studies in the recent report I co-authored on small cities, To Be Strong Again, was the Genesee County Land Bank and its work in Flint, Michigan. Many, many voices, including those on the Sustainable Design Assessment Team have been saying that Albany needs a land bank, which is a basically a nonprofit government entity with the ability to acquire and make strategic decisions about the use of foreclosed and/or abandoned property rather than letting it cycle through speculative and irresponsible ownership over and over.
The Flint land bank unlocked millions of dollars in property values and revitalization just by systematically demolishing, rehabbing, selling to long-term owners, or greening thousands of problem properties. Ohio is currently developing legislation to set up similar entities there.
New York needs land banks. Every single upstate city would benefit markedly from a county or regionwide entity like the ones allowed in Michigan. But state legislation is needed to allow this.
A bill that passed both the Assembly and the Senate this session (it does happen!) would be a first step. It would allow county land banks to be created as subsidiaries of the state urban development corporation. Unfortunately, due to some skittishness on the part of legislators, it would only allow a maximum three. I had trouble believing that when I first read it, but I'm told it's not a typo. Still, it's better than nothing, and I'm willing to bet that if done right, those three would show impressive enough results to encourage the legislature to allow for the creation of more.
But we may not get to find out. As of now, Gov. Paterson is unsure if he will sign the bill, citing concerns about state liability if it takes ownership of vacant properties. While I see concern, and there could have been other ways to structure the bill that would avoid it, my first thought is let's keep "liability" in perspective. Abandoned properties are magnets for crime, and they have well documented ripple effects in terms of physical neglect, lost property values, and fleeing retail and services, with very real, very negative consequences for remaining residents. The human cost, not to mention the financial drain on municipal coffers in terms of increased service cost and decrease taxes is huge. These costs come back to the state eventually. On the other hand, better managed and redeveloped land is a much lower risk for everyone.
The state takes on the risk of lawsuit every day by doing the things it needs to do, whether it's law enforcement or environmental protection. Especially with the mortgage crisis mounting, giving localities the tools they need to manage abandoned properties is something the state needs to do, and frankly, it's worth some risk.