Land Bank Gives City Council ‘Heartburn’

By Gordon Hopkins“This has been giving me some heartburn,” said Kelly Davis, president of the Fairbury City Council at a meeting Tuesday evening, May 7, 2024.The topic was the recently created South Jefferson Land Bank. Fairbury Mayor Spencer Brown was not present and Davis was conducting the meeting. On the agenda was an interlocal agreement between the city and the land bank for the city to pay for administration and operations. Davis said, “I guess I was told this land bank was a standalone entity.”A land bank is an entity created by a municipality which generally allows for the acquisition, maintenance, development and disposition of real property for the purpose of returning it to productive use. The Fairbury City Council voted to enter into an agreement with the Village of Endicott to partner in a Municipal Land Bank (MLB), on Tuesday, January 2, 2024. Fairbury contributed $150,000 toward the budget and Endicott the other $100.“We gave them $150,000,” said Davis. “I wish somebody would give me $150,000 to start a business and then pay my expenses.” Fairbury City Attorney Kurth Brashear, with Rembolt Ludtke, explained that, while the initial budget could be used for administration and operations expenses, the land bank would prefer that the initial $150,000 be used for the acquisition of land, “There are certainly initial costs for this year to get it up and running.”City Clerk Erin Reimer explained, “This interlocal is to allow for no more than 10 hours of city time, whether that’s myself or Laura (Bedlan) for administration purposes, all the things we’ve already agreed on.” Included among those administration and operations expenses are legal fees. Brashear said, “They are entitled to their legal counsel, just as Fairbury is entitled to its legal counsel.”Rembolt Ludtke is legal counsel for both the City of Fairbury and the South Jefferson Land Bank.Another concern raised is that the land bank will be required to pay for property. Councilperson Phil Rogge asked, “If a sheriff sale goes up, and the amount of taxes that is owed, if that isn’t paid, the land bank automatically owns that land for that amount?”“Yes,” said Brashear. Councilperson Bradley Kuzelka, who has been opposed to the land bank since it was first proposed, said, “So, when I’m assured by the president of land bank that adjoining property owners won’t be bidding against, that’s not exactly accurate.”Brashear said, “I don’t know what the president told you.”“He said that if there’s any property right next door and they want that property, that they wouldn’t bid against them. What you’re saying is that, if the taxes aren’t met, the land bank has to take it.”Brashear said, “The land bank wouldn’t bid on it, but it’s required to take it.”In addition to the mayor, two other council members were absent. City Councilperson Doug Brown made a motion to postpone a decision on the interlocal agreement until the full council was present. The motion passed.

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