During a recent city council meeting in Caribou, City Manager Penny Thompson provided an update on the status of tax-acquired properties and the role of the Business Investment Group (BIG) in land banking efforts. The discussion highlighted the challenges and changes in legislation regarding the management of these properties.

Thompson recounted that in July 2021, the council approved BIG as the designated land bank entity to restore non-productive properties acquired by the city. However, she noted that the city had not collected any funds from BIG for the property at 30 North Street, as taxes were abated and the property was conveyed without payment. The property was ultimately deemed unsuitable for rehabilitation and was demolished, leaving a vacant lot.

The meeting also addressed new state laws that now require tax-acquired properties to be sold through a real estate agent, a process that could take up to a year. Any proceeds from the sale must first cover expenses and then be returned to the original owner, complicating the city's ability to manage these properties effectively.

Council members expressed concerns about the implications of these changes, particularly regarding the financial burden of real estate fees and the difficulty in selling properties that may not attract buyers. Thompson emphasized the importance of finding a sustainable solution to manage these properties and suggested that BIG could still play a role in future developments.

The council is considering options to clear existing liens on properties to facilitate sales and development, with some members advocating for a promissory note system to ensure that debts are settled upon sale. The discussions reflect ongoing efforts to revitalize the community while navigating the complexities of property management and local legislation.