The Will County Board is considering creating a land bank designed to help spur redevelopment on vacant or abandoned properties.
The board pulled a resolution to create the Will County Land Bank Authority from its agenda Thursday after some members requested time to ask more questions.
Speaker Joe VanDuyne, of Wilmington, said the land bank could serve as a useful tool for municipalities to address blighted properties and an incentive for those properties to be redeveloped and put back on the tax rolls.
“I absolutely think it’s a great program,” VanDuyne said.
He said he plans to set a committee of the whole meeting next month to discuss the proposal.
Land banks have been successfully used by several counties throughout the state to help acquire distressed properties and turn them back into a productive use, said Doug Pryor, president and CEO of the Will County Center for Economic Development.
“It’s a redevelopment tool for blighted property,” Pryor said.
Cook County created its land bank in 2013 to address its growing inventory of foreclosed and vacant residential, industrial and commercial property. It is the largest land bank in the country based on geography.
DuPage County created its land bank last year.
Will County is modeling its program on what has worked in other counties, Pryor said.
About $1 million in federal pandemic relief funds from the American Rescue Plan Act will be used to start the land bank.
Republican Leader Jim Richmond, of Mokena, said some board members want more information on how the program will operate, how it will be funded, what administration or attorney fees might be and how how it will affect municipalities.
Since the county has been an administrator of pandemic relief dollars, Richmond said he wants to ensure the land bank is compliant with federal grant regulations.
Richmond said he also wants to make sure Will County municipal officials are aware of the program to provide transparency before the board votes.
Municipalities interested in taking part can benefit from the land bank to make abandoned and vacant properties more attractive for redevelopment, Pryor said.
Problem properties can create economic and fiscal challenges, including depressing neighboring property values, straining fire and police resources and increasing the risk of arson and violent crime.
The land banks can help clear tax or title issues or environmental concerns, Pryor said.
“It allows you to clear hurdles on distressed properties that they may not be able to clear on their own,” Pryor said.
In some cases, property has been abandoned or delinquent on taxes or they have failed to sell at a tax auction, Pryor said. Some property can be gifted to the land bank by owners who want to walk away.
Other parcels may have multiple owners and can be difficult to develop. The land bank can help assemble properties and better market the property for redevelopment, helping communities target blighted areas, Pryor said.
Many of the properties lack equity, he said.
County Board member Steve Balich, a Homer Glen Republican, said he wants language in the county’s land bank resolution to make sure homeowners’ equity is protected in the event they have fallen behind on their property taxes. He cited a 2023 Supreme Court ruling that offers safeguards for homeowners against tax foreclosure practices.
Balich said he also wants fair bidding practices for blighted properties so they go “to the best bidder, not someone’s best friend.”
“The premise is good,” Balich said. “We just have to tweak it so it’s a good document.”
Balich said another concern is the costs of the program.
“I don’t want to see taxpayers on the hook,” he said.
Participation in the land bank is open to any Will County municipality, and the land bank can only acquire property within a municipality with its consent, Pryor said.
The land bank will work with municipalities so they have control to guide development and zoning, Pryor said.
“This allows for communities to (redevelop) patiently and thoughtfully,” he said.
The land bank is designed to aid in redevelopment rather than be a long-term property owner.
The proposal states the land bank will be governed by a board with representatives from the county, Will County municipalities and experts in areas such as economic development, real estate, finance, banking, architecture and workforce development.
Board members would not be able to take an interest in properties associated with the land bank.
Michelle Mullins is a freelance reporter for the Daily Southtown.
