R2019-135 Resolution Authorizing Agreement-Central Illinois Land Bank Authority

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After examining the advantages and disadvantages of each of the three aptians listed above, staff believes Chat the best optian for DecaCur is to join an existing regianal land bank.We have spoken with a newer regiona� land bank,the Vermilian County Land Bank Authority (VCLBA, that includes governments in Vermilion and Champaign Caunties) and they are willing to add Decatur.They are also willing to change the name of the entity to the"Central Illinois Land Bank"ta reflect the additional of mt�re cities in the centra] I1linois region. Anather factor arguing for a regional salution is IHDA's preference for regional land �aanks.They have told the city of Decatur that they are more likely to fund regiona� land banks,and to fund them at higher levels.To advance a grant application For enlarging the Central Iliinais Land Bank,we have been asked to enter-in to a Memorandum that is essentially a formal expressian of aur intention to jain the Central Illinois Land Bank, if a1l of the governance and intergavernmental agreements can be successfully cancluded with all parties.Action by the City Council does not contractually commit Decatur to join the Centrai I]linois Land Bank at this time; rather,it expresses our intention to do so at a future date, and it autharizes the city manager to negotiate Che terms and conditions that would be included in a future intergovernmenta] agreement that would also be approved by tMe City Council in the future. The current leadership of the VCLBA has agreed that the ciry of Decatur can join without paying any fees for the joint management of the land bank--for r�ow.The enlarged land barak would support its staff, lot maintenance and overhead costs fram the proceeds of the grant,and through the sale and develapment of property transferred to the land bank{the city of Danville splits the proceeds frorn land sales with the land bank}.The city of Decatur wi11 have at least 2 seats on the board oF the I land bank.As the land bank grows and its governing board evaluates its administrative and operationai costs,it is possible that the land bank board couid elect to ask member local gavernments to contribute funds ta the organization. This would likely occur only if the land bank assutnes more responsibiiity for demolition, clearing, mowing and maintenance of properties transferred—in which case the city can examine whether iC is cheaper to pay the land banlc for these services ar to pay them directly as tltey do now. Under the regional land bank's rules, the development aEa project ir►side the carporate lirnits of a member local government by the land bank would have to be approved by that local government. Because the city will sit on the�averning baard of the regional land bank,and because the City Council will have effeetive veto power over projects advanced by the regional Iand bank in Decatur, [ see no real advanfiage ta attempting the launch af a stand-alane Decatur jMacon County Land Bank, Furthermore, our overhead costs would be higher and we wauld have a harder time securing grant funds fram the State.Th�city of Deeatur may transfer as many or as few parceis ta the Central 111inois Land Bank as they wish. It is recommended that the resoluCion be approved.