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County land bank works to redevelop properties

August 15, 2010
By JOHN PEPIN Journal Staff Writer

MARQUETTE - The Marquette County Land Bank Authority is working to turn tax foreclosed properties into positive housing development projects throughout the local area.

On April 1, county Treasurer Anne Giroux foreclosed on 28 properties, 13 of which the land bank authority sought to acquire. In June, the Marquette County Board approved purchasing the properties for a total minimum bid of $75,546.

The money for the purchase came from the county treasurer's foreclosure fund. The purchased properties were transferred to the land bank authority and the money will be paid back to the fund when the authority eventually re-sells the properties.

Among the acquired properties, the county is working on three significant re-development projects, working in concert with a newly-created Marquette County Brownfield Redevelopment Authority for two of them.

At K.I. Sawyer, the county is selling five duplexes at below market prices.

"The land bank is trying to help the community by getting these properties into the hands of owner-occupants," Giroux said. "Our goal is owner occupancy."

That arrangement is hoped to help further a greater sense of community at Sawyer with those owning the buildings also living in the residences.

Applications are due by Aug. 31 at the county treasurer's office and open house events are scheduled from 4-8 p.m. Aug. 18 and 23 to showcase the duplexes.

In Ishpeming Township, the land bank authority is working to help demolish the former West Ishpeming School, located between Marble and Silver streets, built in 1916.

The county's building official is expected to condemn the property soon, having judged the large structure to be unstable and unable to stand another winter.

A low bid of $164,250 has been submitted to the county as the cost of razing the building. Money from the foreclosure fund will be requested to pay for the demolition.

Habitat For Humanity is interested in purchasing the 8-10 lots the former school sits on. New homes would be built on those lots. Giroux said Habitat For Humanity has money available to buy the property.

Proceeds from the sales would be used to partially off-set the cost of demolishing the school. To recover the rest of the demolition expenses, the county is working to designate the school a brownfield site. Such sites are typically abandoned and contain some sort of environmental contamination, including hazardous materials such as asbestos.

With the former school as a brownfield site, and the Habitat For Humanity plan in place, the land bank authority could capture taxes for the newly built homes to offset demolition costs and pay back the foreclosure fund. Laws for land bank authorities and brownfields each allow for this type of recovery.

"There's got to be the potential for something to be built in its place to capture the revenue from," Giroux said.

The impetus for the Marquette County Brownfield Redevelopment Authority was the school project. That panel - which will have members appointed Wednesday by the county board - is expected to hold its first meeting later this month to discuss the school demolition.

Brownfield authority members, the county board and the Ishpeming Township Board must approve a brownfield plan before the school can be torn down. Demolition plans must be written and those approvals obtained over the next few weeks in order for the school to be razed before the snow season. Giroux currently estimates the school may be demolished in October.

In a similar project, the land bank authority is also working to tear down two former rental residential structures located at 423 and 425 Spring Street in downtown Marquette.

"Habitat For Humanity is interested in acquiring, demolishing and rebuilding on these lots," Giroux said in a memo to the county board. "They are able to pay the minimum bid amount for these two properties, but would need assistance with demolition costs."

Brownfield status for these properties could again help in recovering demolition costs for the two buildings.

The remaining 15 properties the land bank authority did not seek to acquire this spring were to be sold at a tax foreclosure auction.

John Pepin can be reached at 906-228-2500, ext. 206. His e-mail address is jpepin@miningjournal. net.

 
 

 

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Article Photos

The former West Ishpeming School is expected to be torn down this fall with new homes built on the site by Habitat For Humanity. (Journal photo by John Pepin)