Board members give county land bank one year to resolve issues before it dissolves

By Jessica Johnston, Assistant News Director

Community members lined the walls of the commissioner’s meeting room in anticipation Tuesday morning as the Muskingum County Land Reutilization Corporation was voting to save or dissolve the county land bank.

After local residents and business owners expressed their strong disapproval of the dissolution, the board ultimately voted to give it one more year.

Per county treasurer and board member Christina Hamill’s motion, the land bank board will have one year to sort out any operational and procedural issues, as well as work with local offices, including the prosecutor’s office, to enact a lawful and more structured process for obtaining and selling properties. Hamill originally made a motion to completely dissolve the land bank, but revised her motion upon recommendation from board member John Huey.

“I feel there’s other alternatives to moving property,” Hamill said in response to board member Jim Porter questioning her motives for disbanding the land bank. “I feel that there has been inappropriate movement in the board, and I feel that this is the best solution, and I want to move forward with continuing to collect taxes with the way we are now doing it in our office and with the prosecutor’s office.”

Hamill said her reasoning is to bring in more tax revenue for the county. A property with delinquent taxes that is foreclosed on can go through the treasurer’s office and into Sheriff Sales in order to be purchased and bring money back into the county through taxes.

“What (it) really boils down to is we just need to follow proper procedures, that’s basically my bottom line,” Hamill said.

Working closely with the prosecutor’s office, the treasurer’s office collects delinquent taxes. If a property comes into the ownership of the county, without a land bank, the property goes into an Auditor Sale. An Auditor Sale has the similar structure as a Sheriff Sale where there is a bidding process, but an auditor sale typically dismisses delinquencies on a property. The process differs from a Sheriff Sale where property is typically purchased with back-taxes attached to it, which then re-invests money into the community through taxes.

As a land bank, the board has the ability to vote and sell property with dismissed delinquencies rather than selling to the highest bidder. The voting process helps prevent slumlords from obtaining properties.

“Since the inception of the MCLRC, effectively known as the land bank, in 2013, we have placed dozens of properties back into productive tax-generating use,” Tim Smith, board member and Building Official and Inspector for the City of Zanesville, said. “This is the only thing the county treasurer can do, and this can only happen if they successfully sell a property at a Sheriff Sale or an auditor sale. That’s the only way they can put a property back into productive use.”

The land bank has its own funds. When a property is sold through the land bank, the funds are brought into the land bank and used to tear down uninhabitable homes in the county.

“We can’t go out and demo a piece of property or condemn it. We don’t have that authority as a county, the city does, and we’re looking into that,” Porter said while referencing Zanesville City Code.

One of the many people that attended the meeting in order to express their disapproval of the dissolution was Scott Zemba, owner of Zemba Bros, Inc.

In 2018, Zemba decided to pursue the purchase of the dilapidated property on Linden Avenue. Coming to realize the lank bank’s existence, Zemba has poured nearly $12,000 into the property in order to assess the land for purchase. In an effort to better the community and keep his employees paid throughout the duration of the year, Zemba said he has the employees and tools to rejuvenate the property — an offer he’s looking to rescind if the land bank is dissolved.

“There’s a bigger picture than just the money. It’s about doing the right thing for the community,” Zemba said during the meeting.

Prior to his interest, Zemba said the property went to Sheriff Sale twice and was not purchased. There’s about $250,000 of taxes due on the property.

“When I heard the land bank was going to be disbanded, it was disheartening as could be,” Zemba said.

Echoing Zemba’s concern were many other community members, including Southeast Ohio Habitat for Humanity Executive Director Kenneth Oehlers, who expressed their disappointment in the potential dismantlement, as well.

Through the land bank, Habitat for Humanity was gifted nine lots on Mead Street after coming into Muskingum County. The organization was looking for property to develop in areas that were undesirable for development.

The nine lots were turned into six parcels. Two houses have been built on the properties, and a third is going up soon.

“When we first started out there, people stayed in their houses. There was really, we were told by several people in the neighborhood, ‘you don’t want to build here. This is not an ideal area to build. I have no clue why you’re coming here.’ We got phone calls from concerned community members and all of that,” Oehlers said. “Two houses in now, we’re starting to see change there. We’re starting to see people come out and talk, kids going down the street.”

Oehlers asked the board to keep the community’s best interest in mind and continue the land bank.

Ultimately, the board decided to handle the properties that are currently in limbo with the land bank while attempting to come to a resolution.

Board member John Huey proposed the amended motion which allowed for the grace period. Huey said the issues between the entities involved with the land bank could be resolved in two months, but if a resolution is not reached by May 28, 2020, the land bank will be disband.

“We’re gonna work it out and keep this land bank in existence ‘cause it’s the best tool this county has ever seen as far as getting delinquent tax property back into the tax base,” Porter said.

Prosecutor Mike Haddox had not returned a call for comment regarding his office’s alleged concerns with the land bank’s operation.