City of Rockford Planning & Development Committee met Feb. 24.
Here is the minutes provided by the committee:
I. CALL TO ORDER
Alderman Rose called the meeting to order at 5: 35 pm.
| Attendee Name | Organization | Title | Status | Arrived |
| Tim Durkee | City of Rockford | Alderman | Late | 5:51 PM |
| Linda McNeely | City of Rockford | Alderman | Present | |
| Chad Tuneberg | City of Rockford | Alderman | Present | |
| Natavias Ervins | City of Rockford | Alderman | Absent | |
| Bill Rose | City of Rockford | Alderman | Present |
The invocation was led by Pastor Chad McKenna of St. Mark's Lutheran Church and Alderman Bill Rose led the Pledge of Allegiance.
B Public Participation
1. Prophet Yusef quoted scripture and spoke about why people are leaving Illinois and his solution to solve this problem. He believes that people are leaving Illinois because of jobs and low taxes.
2. Ahem Faouzi explained that he lives in Madison WI and is moving to Rockford to open a business and just purchased a property. However, he does not feel welcomed in Rockford and described a situation in which someone left garbage on his property and he received a $750 fine. He has lost trust in the City of Rockford.
3. Denzil Wynter was not present at the meeting.
4. John Tac Brantley quoted scripture and reported the activities that his group participated in. The activities included a visit to the Underground Railroad in Wisconsin, had a soul food dinner at North Main Manor, and they were at Booker Washington Center for Black History Quiz Bowl.
II. INFORMATION ONLY
A. Land Bank and Neighborhood Initiative Update by Region 1 Planning Council and Community and Economic Development Department
Karl Franzen, Community and Economic Development Director stated that the City has invested significant resources to reduce neighborhood blight over several years based on the 2006 Center for Community Progress Report. Recently the City has seen some results related to these efforts including the Northern Illinois Land Bank Authority and modifications to the administration of the Trustee program. In addition, the City has continued to demolish 80 to 100 properties annually. The City has implemented a vacant foreclosed property registry and added a neighborhood specialist to work with neighborhood associations and the City’s resident engagement. The City has worked with Commonwealth Edison on their 5-year LED upgrade of streetlights. Mr. Franzen reported all of the successes and accomplishments.
Mike Dunn, Jr. Executive Director of Region 1 Planning Council (RPC) and Eric Setter, Land Bank Coordinator presented an update of the Land Bank and the Winnebago County Trustee programs. Mr. Dunn, Jr. reported that this program has been looked at as a national model to establish a land bank. RPC funded this with two grants from the State of Illinois. The first grant was approximately a year and a half ago for $225,000. Then more recently, they received the second round of grant funding through IHDA, Illinois Housing Development Authority for $250,000. RPC is helping other land banks in Illinois get started by advising them the best order to approach a land bank operation.
Eric Setter, Land Bank Coordinator, reviewed their presentation entitled Rockford City Council Delinquent Tax Report - Region 1 Planning Council: Blight Reduction Efforts and copies were distributed. All blight reduction efforts are focused around properties that are in some state of delinquent taxes and some of the properties end up in the Winnebago County Trustee program.
RPC is looking at delinquent taxes very closely and trying to find data to determine where they can step in earlier on properties and intervene when necessary. In addition, RPC is looking at the properties that end up in the trustee program and how do they get those properties out quicker and more efficiently.
Mr. Setter explained the current process and that some of the properties end up in the trustee program a second time. Mr. Setter stated the Delinquent Tax Overview is as follows:
The total redemption amount due in Winnebago County is about $16.6 million.
The total redemption amount due, and owed to the County Trustee is $7.2 million. If tax certificates are not purchased, the properties go to the County Trustee.
This amount represents taxes and interest that are uncollected from 2015-2019. With the new County Trustee agreement, taxing bodies would receive nearly all $7.2 million if collected before expiration.
If a property goes three years without the taxes being redeemed, the property then goes into the County Trustee Program to be sold by Region 1 Planning Council.
Delinquent taxes is a real issue and affects every department in the City because it is funds that the City is not receiving.
Mr. Setter stated that they did research to determine when a property is eligible under state law as abandoned. They found that if a property is two years tax delinquent, vacant and is in some sort of disrepair, they could go to court and ask the judge for a Judicial Deed and get free and clear title. Of course, letting the judge know that the property is considered abandoned per the state law. RPC wants to save the property and get it in the hands of taxpayers. Alderman Hervey asked for clarification regarding giving notice to the property owners of record especially for deceased owners. Mr. Setter explained the process.
Mr. Dunn explained that Home Rule comes up a lot when discussing a multi- jurisdictional land bank and explained that they do not use any Home Rule powers in acquiring any properties. The only Home Rule powers that they use are in how they dispose of properties and how they target potential buyers for the properties.
Alderman Thompson-Kelly asked about properties that have liens that are greater than the value of the properties. Mr. Setter explained the normal process regarding any mortgage liens. Mr. Setter also stated that many banks won’t contest the abandonment petition and issuance of a judicial deed.
Mr. Setter explained the process under the amended agreement from October. Region 1 Planning Council was named the agent to the County Trustee. He then explained the new online auction process that they are implementing which is more available to the public. There are about 800-900 properties.
Alderman Thompson-Kelly explained that the City found that slum landlords were acquiring the properties for a minimum amount, putting very minor changes into the properties, and then renting the property out. In her opinion, it is very important to reach the adjacent property owners in the community. Mr. Setter explained that he believes the online auction would make the properties more available to the public including the adjacent property owners. They have also put a number of safeguards in place, which includes specific criteria that the purchaser must meet.
Mr. Setter reviewed the remainder of the presentation that listed the 2015-2018 Total Delinquent Parcels as 2,185 and the amount due for redemption in the City of Rockford, which totals $12,082,917. The report also listed the detailed breakdown of the properties by wards. He explained that their goal is to get as many of the properties back into the hands of taxpayers. There is a new structure set up with $150,000 annually for maintenance of these parcels. This will save the City’s maintenance costs.
Group discussed various issues at length and Alderman Hervey asked if the City could use the HUD funds to help with this program. Karl Franzen stated that the City could absolutely use HUD funds and explained details.
RESULT: DISCUSSED
Alderman McNeely made a motion to adjourn, seconded by Alderman Durkee Meeting adjourned at 6:28 p.m.
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