September 19, 2018
Committee Members Present: P. Curran, P. Stockin, J.
Burdick, D. Fanton, B. Harris, J. Ricci, C. Crandall
Others Present: L. Ballengee, G. Barnes, T. Boyde, B.
Budinger, W. Dibble, K. Dirlam, K. Graves, M. Healy, J. Hopkins, J. Isaman, J.
Kelley, C. Knapp, B. Riehle, D. Root, T. Ross, T. Shaw, J. Stager, M. Washer
Call to Order: The meeting was called to order at 11:01 a.m.
by Budget Committee Chairman Phil Curran.
Approval of Minutes
A motion was made by Legislator Stockin, seconded by
Legislator Harris, and carried to approve the Budget Committee minutes of
August 14, 2018, with the following amendment: Change: “Ms. Grant stated that
her employees handle multiple areas; therefore, if they are not allocating
their time to an area that may be losing reimbursement, they would be moved to
another program that is receiving reimbursement through other funding streams.” To: “Ms. Grant stated that her employees handle multiple
areas; therefore, if the time study shows a larger percentage in one program
area, then that area will be claimed for reimbursement, and the smaller
percentage would be claimed for in another program area. One employee could be
claimed for several different program areas in order to get back the full
reimbursement for that employee’s admin cost.” A motion was made by Legislator
Harris, seconded by Legislator Fanton, and carried to approve the Budget
Committee minutes of August 15, 2018.
Sales Tax Report
County Treasurer Terri Ross distributed the 2018 Allegany
County Sales Tax Report reflecting receipts totaling $14,272,785.23. The
year-to-date figures show an increase of $948,102.05 or 7.115 percent more
compared to last year at this time. Ms. Ross stated that while they did have a
decrease of $33,550 in sales tax, we are still up 7 percent compared to last
year at this time. Legislator Harris asked when they start budgeting the
estimated revenue for 2019 sales tax. Ms. Ross stated they have already
included an estimated $20 million for 2019.
Land Bank Presentation
Jeff Stager, Director of Business and Community Development
for ACCORD Corp., and Jason Isaman, Community Development Specialist for ACCORD
Corp., attended the meeting to briefly discuss their request to receive
$100,000 from the County. Mr. Isaman distributed a breakdown of their budget as
well as a flyer that provides a synopsis of the Land Bank’s activity to date. Mr. Stager began by stating that the Land Bank is
underfunded for admin costs for the 2019 year. They previously applied for a
$1.2 million grant; however, due to not being in full operation, they only
received $360,000. Mr. Stager indicated they have tried to “tighten the belt” in
their budget, but unfortunately will fall short. Mr. Stager discussed the
properties acquired through the Tax Sale stating they weren’t as good as they
were hoping. Of the five properties, one is being sold to a neighboring
property owner who has one year to demolish the home, three homes will be
demolished by the Land Bank, and the remaining home will be rehabilitated. Legislator
Fanton asked where they are in the process of demolition. Mr. Stager stated the
property being sold to the neighboring property owner is currently under review
with their lawyer, and the remaining three will be submitted together in a
Request for Proposal (RFP). Legislator Fanton asked if it is just 2019 admin costs they are going
to fall short on, and what the new $1 million grant will be used for. Mr.
Stager stated $90,000 of the $360,000 they received is what they are allowed
for admin costs, adding they can get through the end of the year, but will fall
short in January 2019. Mr. Stager continued that the new $1 million grant will
cover years 2020 and 2021. Legislator Fanton asked how much of the $1 million
can be used towards demolition. Mr. Stager stated approximately $800,000 can be
used for demo, and bricks and mortar in the community. Mr. Stager indicated
that if the grant is received, they plan acquire 40 homes. Mr. Stager believes
the chances of receiving the grant are good, as their funder believes they have
put together a strong application. Legislator Healy asked who is going to do
the demolition of the properties. Mr. Stager stated they are going to follow
the same process as the County and put them out to bid. Legislator Harris asked
if their dream of the Land Bank being self-sufficient through proceeds is gone,
and Mr. Stager stated, yes, at this point they are looking to break even. Legislator
Harris stated if this past Tax Sale is any indication, then the likelihood of
acquiring any rehab properties is slim to none. Mr. Stager indicated they are
only able to acquire vacant properties, and there were 16 on the Tax Sale list,
4 of which he believed were rehabilitations; however, those 4 were not included
on the list they were provided to choose from. County Treasurer Terri Ross
stated she would have to review the list again, but she believes the 4 properties
Mr. Stager is referring to were offered to the Land Bank, and they didn’t want
them. Ms. Ross asked how the Land Bank plans to acquire 40 homes. Mr. Stager
stated they are hoping to meet with Ms. Ross and look at the Tax Sale list as
well as look at foreclosures throughout the County. Legislator Dibble stated he
understands there were several properties that could have sold at the Tax Sale
auction and brought revenue in, but instead went to the Land Bank, and he does
not want to see that happen again. Mr. Stager stated they purchased five
properties, four of which are demolitions; therefore, anyone who would have
purchased them at the auction would have immediately been under water, and the
property would be back on the Tax Sale list in two years. Legislator Harris
stated he thinks the Land Bank is great if they were to shift their focus to just
demolishing properties that aren’t salvageable. It’s not feasible to ever
become self-sufficient without financial support from the County. Legislator
Harris continued that he is willing to consider providing admin money if the Land Bank moves in the
direction of demolition only, adding it’s unreasonable to think they are ever
going to turn a profit on these houses. Legislator Fanton asked if the County
owns these properties, why they can’t look at them ahead of time and see if it’s
something they can take on. Ms. Ross stated for liability reasons, the County
doesn’t take title to the property until they secure a bidder. County Attorney
Carissa Knapp stated they also have a policy in place that allows the current
homeowner to redeem their property up to two weeks prior to the auction.
Chairman Crandall stated he fully supports the Land Bank and what the County
can do to keep the momentum going. He agrees that the original plan of turning
over the properties and funding themselves is no longer reasonable; however,
this is also the County’s first real effort in taking care of the blight
throughout the County that is bringing down values of other taxpayer’s homes.
Chairman Crandall continued that he believes there should be no problem finding
40 parcels throughout our County that need to be cleaned up or tore down,
adding that a vacant lot looks better than some of the blight we’re seeing. Mr.
Isaman stated that there is also a request by all Land Banks throughout New
York State to include $100 million in the Governor’s 2019 Budget, adding that
the Allegany County Land Bank is the lowest funded Land Bank, and they have
been commended for what they have accomplished with so little. Legislator
Harris stated the Land Bank was first sold on the fact that once the houses
were rehabilitated they would be put back on the tax roll at a higher
assessment; however, if they are shifting to demolition, a vacant lot being
re-assessed is going to end up being a net revenue loss for the County. Mr.
Isaman stated that after a while there won’t be as many demolitions, and eventually
the Tax Sale list will have better properties that can be rehabilitated and
bring in revenue. Ms. Ross reminded the Board that when a property gets
demolished and turned into a vacant lot, the tax burden falls on others. Ms.
Ross expressed concern with how the Land Bank is going to acquire 40 properties
stating that we aren’t like the bigger counties and are lucky if we get one
good property on the Tax Sale. Ms. Ross continued that not every home they
consider blight is necessarily vacant and on the Tax Sale list. Some are still
occupied by families who consider it their home, adding they aren’t going to
clean it up like they anticipate. Legislator Hopkins asked what they plan to do
with the vacant lots once they are done with demolition. Mr. Stager indicated
their goal is to sell it to a neighboring property owner or work with someone
who could potentially build a new home on the lot. Legislator Graves asked if
they have reached out to banks and realtors who are aware of homes that are in
foreclosure. Mr. Stager stated, yes; however, they haven’t had much luck
because banks are working to get rid of foreclosures as quickly as they can.
Ms. Ross noted that foreclosures owned by banks are more expensive, and the
Land Bank doesn’t have that kind of money. Legislator Barnes asked what
requirements are put on a potential buyer. Mr. Stager stated they will first do
a walkthrough of the house with a code enforcer to find out any issues the
house has, and the Land Bank will take care a portion. They will then work with
the buyer to fix any remaining issues not being handled by the Land Bank,
ensure they have the financial ability to do so, and then provide the buyer
with one year to complete the work. If the buyer doesn’t meet the terms, the
house will go back to the Land Bank. Ms. Ross asked if the title is transferred
at the time of completion, and Mr. Stager stated, yes, not until the buyer
meets the terms do they take title to the house. Legislator Harris stated he
would like to review the Land Bank’s entire budget rather than a breakdown, and
Mr. Stager stated he will send the information to Mr. Harris. A motion was made
by Legislator Fanton, seconded by Legislator Ricci, and carried to request the
$100,000 request for admin costs being referred to Ways and Means for inclusion
in the Allegany County 2019 Budget. (Opposed: B. Harris) Refer to Ways and
Means.
