Land bank authority helps stop tax foreclosure cycle

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MARQUETTE - When a property falls into tax foreclosure, it's put up for auction and sold to the highest bidder. Since being approved in May, the Marquette County Land Bank Authority gives cities and townships more control over who gets that property.

Tax-foreclosed properties sold at auction are often bought as a quick investment, and when the property is not resold immediately, can fall into a cycle of foreclosure auctions, according to county Treasurer Anne Giroux.

By turning over tax-foreclosed properties to the Land Bank Authority, cities and townships can avoid the property going to auction and instead see it sold directly to a buyer who will do something with the property.

"We're trying to help the townships and cities deal with these properties," Giroux said. "The advantage is it gives more local control to the end result of what happens."

The land bank authority is a three-person committee, with the county treasurer as chairperson and two appointments made by the Marquette County Board, now filled by county commissioners Debbie Pellow and Chuck Bergdahl.

The authority can see to it that properties are maintained - in particular, abandoned buildings secured or torn down - which keeps surrounding properties from being affected. What is turned over to the authority is also brownfield-eligible.

Although the authority was created just this year, the county is already talking to townships and cities about the benefits of turning over tax-foreclosed properties, Giroux said.

"The land bank is hoping to take seven properties this year," she said. "We have taken two in Champion Township and have already sold those to private enterprises."

In many cases, an owner next to the foreclosed property expresses interest in buying the adjoining land.

Recently, Giroux made a presentation to the Ishpeming City Council on what the authority does and the benefits of turning over foreclosed property.

For example, a lot at 160 S. Angeline St. in Ishpeming had fallen into foreclosure and the city had already demolished the home as an unsafe building.

"The council elected to allow the county to retain possession," said interim city Manager Jim Bjorne. "The lot is vacant right now."

Giroux said the adjoining property owner had expressed interest in the property.

Land banks have been used throughout the state, particularly in the depressed city of Flint, and have been shown to stabilize neighborhoods.

The Genesee County Land Bank, which includes Flint, demolishes between 100 and 200 blighted structures on tax-foreclosed properties per year.

Lot adoption programs, which encourage neighborhoods and businesses to care for abandoned lots, have also been used in some places in Michigan.