Vacant Land Assessment Concept

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Vacant Land Assessment Concept

  1. 1. Vacant Land Assessment Concept City of East St. Louis, IL PGAV URBAN CONSULTING AND HINSHAW & CULBERTSON
  2. 2. Vacant Land Issues <ul><li>Half of the City’s taxable land consist of vacant land </li></ul><ul><li>Vacant land generates little tax revenue </li></ul><ul><li>Even with population loss – essential services remain the same: </li></ul><ul><ul><li>Same lineal miles of streets to patrol </li></ul></ul><ul><ul><li>Same lineal miles of streets & utilities to maintain </li></ul></ul>
  3. 3. Vacant Land Issues <ul><li>Has attracted illegal dumping </li></ul><ul><li>City constantly mowing weeds and cleaning up vacant lots </li></ul><ul><li>Diversity of ownership – both resident and non-resident </li></ul>
  4. 4. Vacant Land Analysis
  5. 11. Who owns this vacant land?
  6. 15. Vacant Land Assessment
  7. 16. Goals <ul><li>Raise revenue for essential public services </li></ul><ul><li>Discourage land banking/speculation </li></ul><ul><li>Encourage conversion of vacant land into more productive “improved land” </li></ul>
  8. 17. Proposal <ul><li>Fee for essential public safety services </li></ul><ul><li>Based on quantity of vacant land (e.g., $0.03 per square foot) </li></ul><ul><li>Apply to all vacant land – regardless of ownership or tax status </li></ul><ul><li>Assessed & collected annually </li></ul><ul><li>Administrative appeals procedures </li></ul>
  9. 18. Cost to Vacant Land Owner <ul><li>5,000 sq. ft. lot (50’ x 100’): </li></ul><ul><ul><ul><li>@ $0.01/sq. ft.: $50.00 </li></ul></ul></ul><ul><ul><ul><li>@ $0.02/sq. ft.: $100.00 </li></ul></ul></ul><ul><ul><ul><li>@ $0.03/sq. ft.: $150.00 </li></ul></ul></ul><ul><li>(5) 5,000 sq. ft. lots: </li></ul><ul><ul><ul><li>@ $0.01/sq. ft.: $250.00 </li></ul></ul></ul><ul><ul><ul><li>@ $0.02/sq. ft.: $500.00 </li></ul></ul></ul><ul><ul><ul><li>@ $0.03/sq. ft.: $750.00 </li></ul></ul></ul>
  10. 19. Cost to Largest Vacant Land Owner * <ul><ul><ul><li>@$0.01/sq. ft.: $32,000 </li></ul></ul></ul><ul><ul><ul><li>@ $0.02/sq. ft.: $64,000 </li></ul></ul></ul><ul><ul><ul><li>@ $0.03/sq. ft.: $96,000 </li></ul></ul></ul><ul><ul><ul><li>* Bi-State Truck Repair, L. Sinn, et. al. </li></ul></ul></ul>
  11. 20. Special Provisions <ul><li>Cap ESL resident owner payment ($250) </li></ul><ul><li>Exempt vacant lots used as a unified whole with adjoining owner-occupied residence (consolidate PINs with County) </li></ul><ul><li>Exempt unsold developer lots for 2 years </li></ul><ul><li>Other exemptions as deemed appropriate by City </li></ul>
  12. 21. Potential Revenue Generation <ul><li>@ 80% Collection Rate: </li></ul><ul><ul><ul><li>$0.01/sq. ft.: $675,000 </li></ul></ul></ul><ul><ul><ul><li>$0.02/sq. ft.: $1,350,000 </li></ul></ul></ul><ul><ul><ul><li>$0.03/sq. ft: $2,025,000 </li></ul></ul></ul><ul><li>@ 60% Collection Rate: </li></ul><ul><ul><ul><li>$0.01/sq. ft.: $500,000 </li></ul></ul></ul><ul><ul><ul><li>$0.02/sq. ft.: $1,000,000 </li></ul></ul></ul><ul><ul><ul><li>$0.03/sq. ft: $1,500,000 </li></ul></ul></ul>
  13. 22. Challenges / Obstacles <ul><li>Self administration (County won’t help) </li></ul><ul><ul><ul><li>More costly & less efficient </li></ul></ul></ul><ul><ul><ul><li>Collection rate likely to be lower </li></ul></ul></ul><ul><li>Likely to be legally challenged </li></ul><ul><li>Reliance on a specific revenue amount can’t be counted on until in place for several years </li></ul>
  14. 23. Final Notes <ul><li>It is HIGHLY RECOMMENDED that the vacant land assessment is implemented AFTER implementing property tax relief reform (TIF district reductions). </li></ul><ul><li>Voter repercussions likely without property tax relief FIRST! </li></ul>

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