SIDNEY — Information on the Shelby County Land Bank’s goals, happenings and pictures of some of its current properties was presented to Sidney City Council during its workshop session, Monday.

Doug Ahlers, director of the Shelby County Land Reutilization Corporation (commonly known as the Shelby County Land Bank) said the organization’s goal is to “stabilize property values by removing and greening or rehabilitating blighted one to four family residential properties in Shelby County.“

“Demolition is a critical component of strategies to stabilize and enhance home values,” he said.

Ahler told council the Sidney Fire Department has and will continue to conduct training in some of their properties, when possible, prior to demolition or rehabilitation.

Funding originally came from the city of Sidney, county villages and county commissioners’ donations. Since then, Ahler said, it has derived from a Housing Improvement Program grant and a portion of the Delinquent Tax and Assessment Collection Fee (DTAC) from the county. Last year he said it amounted to about $25,000.

“The grant is not a pile of money of $25,000. The grant is the ability to ask for reimbursement for up to $25,000,” Ahler emphasized.

“A lot of people called and said, ‘Hey, you’ve got $2.5 million, let’s make something happen.’ — Well, you can make things happen, but … we are going to go through some things (during council’s presentation),” he said of the the total grant amount available to the land bank and how its being used.

He pointed out the maximum reimbursement of $25,000 per residential property address can only be used to acquire properties, for approved demolition, or remediation, and to green the site. The land bank cannot be reimbursed for payment of utility bills, taxes or any assessments.

Most properties are obtained through tax foreclosures, Ahlers said. Some properties are donated; others are purchased. The maximum reimbursable amount on purchased properties is $5,000, and then there is only $20,000 left to finish the work at the location, he said.

After the work is completed, lots may be sold. Others may be given to a neighbor through the Side Lot Program, in which the neighbor agrees to mow and maintain the lot for up to three years, and afterward it may become theirs to own. A prerequisite of the program is that the neighbor must be a residential owner, he explained.

Lots can also be transferred to political subdivisions or non-profit organizations for parks, recreations areas, infrastructure improvement projects and community gardens. However, the development must have a purpose and begin within a year.

Finding properties are not an issue, Alher said. But finding property owners who are motivated to get rid of these properties, despite being behind on their real estate taxes, is difficult. — Often he is asked the question, “What’s in it for me.” The prosecutor’s office helps them to keep costs low by conducting tax foreclosure proceedings at no cost.

The grant expires on Dec. 18, 2018, at which time the land bank must have everything acquired they intend to acquire and have 75 percent of it torn down, or loose the remaining money, Ahler said. At his last check, there was about $1.2 million of the grant is still available. Ahler said they would like to obtain properties at a faster pace, but foreclosures take time.

He displayed for council pictures and the financial break down involved with several properties that went beyond $25,000. The unexpected high cost came from scenarios such as vertical land banks, asbestos and tire removal costs, which has caused the land bank’s finances to go in the negative.

Since there is no operating capital available, and only work in areas, the Shelby County Commissioners loaned the land bank $250,000 to help facilitate their work.

Ahlers said currently they are running into deficits, and unless he can “find ways to fix” the issue, they may have to leave largest properties stand.

He also relayed that the grant will be re-assessed. This may result in some money being rescinded, as other land banks are in need of funds, if it is not needed here.

“I need it all. But they are going to weigh and measure us again. Hopefully not. I’ve been able to make that not happen at the last two deadlines,” Ahlers said.

After some discussion, the city plans to look at ways to help the land bank with costs of dilapidated homes in Sidney, as it was noted that the city will continue to have a problem with run-down houses after of the land bank is finished with its work.

“The commissioners are on the hook for it right now to be honest,” he said.