R2024-21 Resolution Authorizing a Professional Service Agreement with Hera Property Registry, LLC

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responders,they harbor vermin,they are drug houses,they attract vandalism and are unsightly. These properties are a drag on their neighborhoods,they devalue adjoining tracts, and they contribute directly to blight. Far too often, the city has ended up demolishing some of these vacant structures because if they deteriorate enough,the property owner may choose to `dump' them on the city and abandon them. After much legal wrangling,the city eventually acquires title to these properties after demolition and clearing; but the value of the property is always a fraction of the costs paid by taxpayers to tear buildings down. Decatur's taxpayers should not subsidize the poor behavior of vacant structure owners who do little or nothing to maintain their buildings. Private property owners are entitled to decide for themselves whether they wish to demolish or rehabilitate their buildings; but they are not entitled to leave them in the"twilight zone"between demolition and rehab, while at the same time performing little or no maintenance—to the detriment of adjoining property owners and the neighborhood. The concept of a vacant and foreclosed ordinance has been discussed before by the council, and has received support in concept.During a 2022 study session, one of the city's revitalization consultants,the Center for Community Progress, specifically recommended that the city adopt a vacant and foreclosed ordinance. What has taken time is crafting the ordinance to fit the unique requirements of Decatur. Some cities require registration of ALL vacant buildings—regardless of their condition or maintenance status. Some even require"snowbirds"to register while they are away in Florida. These provisions do not fit Decatur; the recommended ordinance takes a more targeted approach—it is focused on vacant buildings that are obviously being allowed to deteriorate by their owners. How will a Vacant&Foreclosed Ordinance Work in Decatur? While city staff will decide which properties will be "registrable"(since they are doing inspections in these neighborhoods now),the work of contacting property owners,verifying ownership records, evaluating the legal status of shell corporations, etc. would overwhelm the Economic& Community Development Department. For this reason,a companion council item (following on the Monday agenda) is a parallel agreement with Hera Property Registry,LLC to manage much of the ordinance's administration. This is more efficient than adding staff. Hera would retain a portion of the fees charged. Who could be ounosed to a Vacant&Foreclosed Ordinance? It is not a crime to own a vacant building,but if a vacant building causes negative impacts on the neighborhood around it(physically,financially, emotionally,etc.),then it should be. Derelict building owners will not like the ordinance, and some may assert that a vacant and foreclosed ordinance infringes on their private property rights (i.e.,to use their property in any way they wish). It is possible to overreach in adopting a vacant and foreclosed ordinance; but where the city can demonstrate that vacant buildings are impacting adjoining properties, courts have upheld these kinds of ordinances—and the ordinance proposed for Decatur is less restrictive than many other vacant and foreclosed ordinances. More than 1500 communities in the United States have adopted vacant and foreclosed ordinances in some form. In Central Illinois,vacant and foreclosed ordinances have been