Vacant Land Assessment Concept

Vacant Land Assessment Concept City of East St. Louis, IL PGAV URBAN CONSULTING AND HINSHAW & CULBERTSON

Vacant Land Issues
Half of the City’s taxable land consist of vacant land
Vacant land generates little tax revenue
Even with population loss – essential services remain the same:
Same lineal miles of streets to patrol
Same lineal miles of streets & utilities to maintain

Vacant Land Issues
Has attracted illegal dumping
City constantly mowing weeds and cleaning up vacant lots
Diversity of ownership – both resident and non-resident

Vacant Land Analysis

Who owns this vacant land?

Vacant Land Assessment

Goals
Raise revenue for essential public services
Discourage land banking/speculation
Encourage conversion of vacant land into more productive “improved land”

Proposal
Fee for essential public safety services
Based on quantity of vacant land (e.g., $0.03 per square foot)
Apply to all vacant land – regardless of ownership or tax status
Assessed & collected annually
Administrative appeals procedures

Cost to Vacant Land Owner
5,000 sq. ft. lot (50’ x 100’):
@ $0.01/sq. ft.: $50.00
@ $0.02/sq. ft.: $100.00
@ $0.03/sq. ft.: $150.00
(5) 5,000 sq. ft. lots:
@ $0.01/sq. ft.: $250.00
@ $0.02/sq. ft.: $500.00
@ $0.03/sq. ft.: $750.00

Cost to Largest Vacant Land Owner *
@$0.01/sq. ft.: $32,000
@ $0.02/sq. ft.: $64,000
@ $0.03/sq. ft.: $96,000
* Bi-State Truck Repair, L. Sinn, et. al.

Special Provisions
Cap ESL resident owner payment ($250)
Exempt vacant lots used as a unified whole with adjoining owner-occupied residence (consolidate PINs with County)
Exempt unsold developer lots for 2 years
Other exemptions as deemed appropriate by City

Potential Revenue Generation
@ 80% Collection Rate:
$0.01/sq. ft.: $675,000
$0.02/sq. ft.: $1,350,000
$0.03/sq. ft: $2,025,000
@ 60% Collection Rate:
$0.01/sq. ft.: $500,000
$0.02/sq. ft.: $1,000,000
$0.03/sq. ft: $1,500,000

Challenges / Obstacles
Self administration (County won’t help)
More costly & less efficient
Collection rate likely to be lower
Likely to be legally challenged
Reliance on a specific revenue amount can’t be counted on until in place for several years

Final Notes
It is HIGHLY RECOMMENDED that the vacant land assessment is implemented AFTER implementing property tax relief reform (TIF district reductions).
Voter repercussions likely without property tax relief FIRST!

Vacant Land Assessment Concept

by Stephanie Lindley on Apr 11, 2010

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Vacant Land Assessment Concept — Presentation Transcript