St. Joseph County Council tables proposed land bank interlocal amid legal-cost and oversight questions
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After extensive testimony from MACOG, the Community Foundation and housing partners about a $20 million Lilly Endowment grant and a proposed countywide land bank, the council voted 5-4 to table Resolution Bill 88-25 to allow more work on legal-cost arrangements and oversight language with the commissioners.
The Saint Joseph County Council on Dec. 9 opened a public hearing on Resolution Bill 88-25, an interlocal agreement to create a regional land bank run by the Michiana Area Council of Governments (MACOG) with board appointments from South Bend, the county and partner organizations. Petitioners and nonprofit partners urged the council to support the measure, citing blight remediation and housing opportunities.
"We were awarded our complete grant request of $20,000,000, the highest in the state," Aaron Perry of the Community Foundation of Saint Joseph County said, adding that the foundation has set aside $3,000,000 toward a permanent endowment and hopes to grow it to $4,000,000. James Turnwold, executive director at MACOG, described the land bank as a tool to address vacant and abandoned properties across the county and requested the council’s support.
Supporters including Jim Williams, president and CEO of Habitat for Humanity of Saint Joseph County, said a land bank would reduce transaction costs and help nonprofit developers prepare properties for reuse. MACOG and the Community Foundation told the council that operating costs would be covered initially by grant funding and by the endowment’s earnings, and that MACOG would manage day-to-day operations while multiple governmental actors retain oversight roles.
But several council members voiced concerns about legal and title costs the county might incur if properties are transferred. "One of my issues with this program is I talked to our county attorney about how much it would cost us in the legal fees and title work and notices. . . a conservative estimate would be about $120,000 a year," Councilwoman Drake said. Commissioner Rafael Morton later said the MOU remains a draft and that county assumptions about covering legal costs were not yet finalized.
Given those unresolved questions, Councilman Thomas moved to table the resolution until January. The motion to table passed on a roll-call vote, 5-4, and Bill 88-25 was placed on the table for further work.
The petitioners asked the council to consider striking or amending interlocal language if the companion item (Bill 87-25) does not pass; MACOG representatives said the commissioners would retain an early role in approving properties offered to the land bank and that the board would make subsequent disposition decisions in public meetings.
The council’s action leaves the land bank proposal pending further negotiation over county legal obligations and final oversight language. The item is expected to return to the council in January for further consideration.
