Leveraging End-User Investment for Acquisition and Redevelopment

1. Leveraging End-User Investment for Acquisition and Redevelopment

2. Defining an “End-User Driven” Model • Working with community stakeholders, investors and local governments to identify properties for acquisition; • Allowing purchasers to rehab properties with their own resources for rental/re-sale/owner-occupancy. • Small staff/budget: allowed us to build capacity over time, and to gradually increase strategic acquisitions and/or investment. • Areas with strong stakeholder presence can see tremendous activity. • Neighborhoods lacking stakeholders will need to organize, but an active Land Bank can often serve as the catalyst for organization. • “Reverse deed in escrow” ensures end-user carries out project. • Look to strengths and weaknesses of community stakeholders at community level in determining neighborhood strategies.

3. Potential Partnerships with Stakeholders • Community development corporations • Non-profit service providers • Institutional anchors (schools, hospitals, corporations, etc.) • Churches • Local government entities • Private investors (may have niches in specific areas) • Neighborhood-based organizations (as basic as block watch) • Individual neighborhood residents & businesses

4. Potential Partnerships with Purchasers • Non-profit developers (community development corps, etc.) • Private investors (rental & re-sale) • Prospective owner occupants • Usually cash rehabs, but sometimes properties can be financed (traditional lending or rehab lending) • Institutional anchors & churches (campus beautification/development) • Private commercial/industrial developers • Urban agriculture & community gardening

5. Partnering to Rehab Single Family Homes • Over 80 single family structures have been sold for redevelopment • Average single family residential structure requires around $25,000 in investment to return it to code compliance and habitable condition • Land Bank retains reverter interest in property until rehab work is complete through “reverse deed in escrow” built into purchase agreement • Priority is rehab for owner occupancy; roughly 50% of residential rehabs to date have been sold to owner occupants (includes properties occupied by family of purchaser) • Difficult to increase owner-occupancy rates when relying solely on purchaser’s assets to complete rehab work • Land Bank currently exploring additional opportunities to facilitate single family rehab for owner occupants

6. Partnering with Community Based Organizations • 508 Hawley Street, Toledo • Vacant multi-family structure; former boarding school • Adjacent to non-profit mental health service provider • $100,000+ investment in neighborhood

7. Partnering with Community Based Organizations • 1602 Monroe Street, Toledo (before) • Vacant multi-family with first floor retail • Catholic Club partnering to maintain until redevelopment

8. Partnering with Community Based Organizations • 1602 Monroe Street, Toledo (after) • Public art partnership with Arts Commission of Greater Toledo • $15,000 investment; property secured for future redevelopment

9. Partnering with Community Based Organizations • Signature Park Project w/ UpTown Association • Land Bank negotiated purchase of 13 parcels from out of state investor • Land Bank negotiated donation of 2 parcels from local owner • UpTown Association & City of Toledo awarded $1.5 million CORF grant • New urban park with housing and retail

10. Partnering with Community Based Organizations • 1415 Jefferson Street, Toledo • Former showroom and offices for car dealership • Land Bank negotiated donation with demolition; conveyed to non-profit healthcare provider for construction of new regional campus • New investment and employment opportunities in UpTown

11. Partnering with Community Based Organizations • St. Vincent’s Hospital / Cherry Street Legacy Project • Identified 40+ vacant & abandoned properties, both existing lots and demolition candidates • Hospital is holding and maintaining land for future development

12. Partnering with Community Based Organizations • Cherry Street Legacy Project • “Hyde Park”: Re-purposing of non-functional public space • City park that was magnet for crime & blight; will be converted to urban garden and private property $10,000 investment in property the property

13. Partnering with Community Based Organizations • Cherry Street Legacy Project • Mentor Drive: Urban cul-de-sac dating from 1910’s • 90% vacant and abandoned; need to explore new uses • Cherry Street Legacy project working to relocate residents • City of Toledo working to vacate street for re-purposing • Land Bank working to acquire & demolish delinquent properties

14. Partnering with Community Based Organizations • Cherry Street Legacy Project: Legacy Homes I • 40 units of new affordable housing developed in partnership with NeighborWorks Toledo • Land Bank will obtain site control on 20+ project parcels • Over $10 million total investment in the neighborhood

15. Partnering with Community Based Organizations • Toledo Homes I & II • 83 residential tax credit units (single family) • Lack of adequate management led to long term vacancy and conditions issues; project was extremely distressed • Land Bank partnered with City of Toledo to acquire properties following tax foreclosure and transfer them to Housing Authority for redevelopment • $500,000+ investment will be made in preserving the project • Housing Authority working toward goal of redeveloping project for LMI owner occupancy • Potential model for addressing seriously distressed tax delinquent LIHTC projects

16. Partnering with Private Investors: Multi-Family • 431 Kenilworth Avenue, Toledo • Historic town home structure in Toledo’s Old Town neighborhood • Purchaser a successful rehabber and resident of the neighborhood • Land Bank provided $15,000 for initial repairs and maintenance • Purchaser investing $100,000+ to rehab six market rate rental units • Cost of preservation < cost of demolition

17. Partnering with Private Investors: Commercial • 725 Jefferson Street, Downtown Toledo • Historic “Caesar’s” show bar; vacant for several years • Building rapidly deteriorating, cornice falling onto street • Private commercial investor will make substantial investment • Land Bank would not have stepped in but for identified end-user

18. Partnering with Private Investors: Commercial • 6204 North Summit Street, Washington Township • Vacant, abandoned shopping center; part of mortgage foreclosure action dating back to 2009 • Local business renovating to consolidate space, moving jobs into OH • $100,000+ investment for entire commercial retail space

19. Partnering with Private Investors: Commercial • 2402 Aberdeen Avenue, Toledo • Forfeited neighborhood retail space in South Toledo • Local entrepreneur approached Land Bank seeking acquisition • $50,000+ investment in property, two new retail businesses created

20. Partnering with Private Investors: Commercial • 4601 N. Detroit Avenue, Toledo • Logistics firm needed additional fleet storage space • Land Bank partnered to acquire adjacent forfeited commercial lot • $50,000+ investment in property • Land Bank assisted in re-zoning of lot for new purpose

21. Partnering with Private Investors: Commercial • Tecumseh near Pulaski, Central Toledo • Vacant lots for small scale urban farmer • End user grows food in neighborhood for sale within the same neighborhood • Land re-purposed & food security increased

22. Thank You! Please do not hesitate to contact the Land Bank’s staff with additional questions or comments • 419-213-4293 • lucascountylandbank@co.lucas.oh.us