R2023-94 Resolution Authorizing Intergovernmental Agreemeent between the City of Decatur and Central Illinois Land Bank Authority for Acquisition of Certain Properties through Abandonment Proceedings

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MEMORANDUM 2023-10 DATE: May 15,2023 TO: Honorable Mayor Julie Moore Wolfe and City Council FROM: Scot Wrighton, City Manager Jon Kindseth,Deputy City Manager SUBJECT: Resolution Authorizing An Intergovernmental Agreement Between the City of Decatur and Central Illinois Land Bank Authority for Acquisition of Certain Properties through Abandonment Proceedings SUMMARY RECOMMENDATION: Staff recommends the City Council authorize the proposed Intergovernmental Agreement with CILBA to empower them to pursue acquisition of properties within Decatur utilizing abandonment proceedings. BACKGROUND: The amount of property rehabilitation needed in Decatur is so great that the city must depend on contracted and out-sourced partners to accomplish some of the work. The City Council has already executed several contracts with rehabilitation partners, and we hope to do more. The City of Decatur and CILBA have been jointly pursuing the acquisition of certain properties within the City that are believed to be salvageable and worth rehabbing. The City has provided funds to CILBA to rehab acquired and distressed properties under the "abandonment to rehab" program utilizing ARP funds. They have recently finished the first whole house rehab-this one in John's Hill across the street from the new school. Under the terms of this agreement the City committed to providing 10 rehab-able homes for this abandonment program. The City has provided CILBA with the 10 houses and they are in various stages of rehab and improvements. This proposed agreement would take the abandonment of the rehab program to the next level by allowing the program to continue to scale up. The agreement specifically allows the Land Bank to pursue properties utilizing the City's authority under abandonment proceedings. This allows the City or CILBA to essentially take vacant and abandoned properties after 2 years of tax delinquency instead of waiting 4 years as the current tax sale process typically takes. This means that the quality of houses that are ultimately acquired will be better; and it means the City will be taking a more proactive and aggressive approach to addressing problematic properties within neighborhoods, (as opposed to some of the other tools which can be utilized for neighborhood revitalization and stabilization.) This IGA will increase staff capacity by allowing CILBA to initiate their own property acquisitions, while keeping our staff available for other City initiated property acquisitions and neighborhood improvement projects. INPUT FROM OTHER SOURCES: City staff and CILBA staff.