The Calhoun County Treasurer became the Foreclosing Governmental Unit (FGU) for Calhoun County by County Board action on December 16, 2004 as authorized under Section 78 (3) of Public Act 206 as amended, MCL 211.7. To assist with the post-acquisition costs of the tax foreclosed properties that came into the County Treasurer's ownership the County also created the Land Reutilization Fund (518) in 2006 to account for revenues collected by the Treasurer, including State mandated fees, to cover expenses associated with State mandated pre-foreclosure activities such as title work, property notification by in-person visits and certified mailings, parcel redemption expenses, and post-foreclosure holding costs and remediation expenses (including property demolition where necessary) related to the Treasurer's ownership of these foreclosed properties.
On July 1, 2006, the Calhoun County Board of Commissioners authorized the creation of the Calhoun County Land Bank Authority (CCLBA) to more efficiently and effectively manage and dispose of foreclosed properties. Generally, the County Treasurer will transfer all foreclosed properties not sold at auction and refused by the local units to the CCLBA for holding and remediation until a final disposition of the property can be established and executed.
More recently, on December 7, 2017, a policy governing declaration and transfer of surplus funds from the DTRF to the Calhoun County General Fund for purposes authorized by Section 87(b) of Public Act 206 as amended, MCL 211.87b. To assist the CCLBA in its operations the County Treasurer proposes this transfer from the Land Reutilization Fund of an amount sufficient to cover the cost of the projects and activities described in Exhibit A.
This request does differ from the 2018 allocation in that it seeks funding to accomplish a range of activities including demolition, rehabilitation, and stabilization. In addition, some of the projects are confirmed, such as the demolition of the old Union Steel building at 501 N Berrien Street and the remediation of environmental material at 131 N Superior. However, Land Bank staff is still reviewing properties it just received from the County Treasurer to determine an appropriate intervention strategy and realizes that the priority of projects may change when that review is complete. Therefore, this request seeks $303,182 for industrial demolition, $42,889 for the stabilization of 131 N Superior, just over $80,000 for the demolition of blighted residential structures, and a little more than $70,000 for residential rehabilitation. As with the 2018 request, Land Bank staff is bringing a mix of match funds including its own dollars, grant money, and partner funds.
This Resolution acknowledges that, in undertaking demolitions, property management, etc., the Land Bank is acting in cooperation and collaboration with the Treasurer as the Foreclosing Governmental Unit and the County, to manage these properties. It also acknowledges that County's role as a partner with the Land Bank in stopping the spread of blight, addressing environmental concerns, and taking positive steps to create better neighborhoods and increasing property values in Calhoun County.
Pursuant to this Resolution, the Treasurer would be authorized to make appropriations of sufficient funds to the Land Bank to be used to demolish, rehabilitate, or stabilize the properties and activities described in Exhibit A. These appropriations would come from the Land Reutilization Fund, which is not part of the General Fund, and this fund, by statute, may only be used for these types of activities.