Delaware Land Bank prepares for first judicial sale to revitalize blighted properties

The Property Committee Meeting held on February 4, 2025, in Pennsylvania focused on the establishment and operational plans for the local land bank, which aims to address underutilized and blighted properties in the region. Key discussions centered around the necessity of agreements with municipalities and school districts to facilitate the land bank's activities, particularly in preparation for the upcoming judicial sale in May.

The land bank is set to intervene in judicial sales for the first time, allowing it to acquire properties that can be repurposed for productive use. Officials emphasized the importance of transparency in the acquisition process, noting that properties could be donated to the land bank. They are also developing a website to provide information and updates to the public.

A significant aspect of the meeting was the discussion on how properties would be transitioned to meet community needs. The land bank aims to work closely with municipalities to determine whether properties should be developed for residential, commercial, or other uses, depending on local zoning laws and community preferences. The officials highlighted the demand for housing and the potential for commercial development as key factors in their planning.

Concerns were raised about the financial implications for school districts, particularly regarding tax revenue from properties held by the land bank. It was clarified that while properties are held by the land bank, they will not generate tax revenue. However, once properties are returned to productive use, the land bank plans to split tax proceeds with municipalities and school districts for the first five years, providing a financial incentive for local governments.

The meeting also touched on potential disputes between the land bank and municipalities regarding property disposal. Officials reassured attendees that the land bank would operate in alignment with municipal zoning and comprehensive plans, aiming to foster collaboration rather than conflict.

Overall, the meeting underscored the land bank's commitment to revitalizing blighted properties while ensuring community involvement and compliance with local regulations. The next steps involve finalizing agreements with local entities and preparing for the judicial sale, marking a significant move towards addressing property challenges in the area.