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untanglingwebs
El Supremo
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Wed Feb 26, 2014 8:22 pm |
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untanglingwebs
El Supremo
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Karter Landon
The land bank is selling houses it should not even own. We are working on a federal suit for fraud and racketeering against numerous people who work for local municipalities, such as local assessors, people at the State Tax Commission, and the Tax Tribunal, as well as others, who have for years been involved in one of Michigan's largest frauds, over-taxing property. The sales record of land bank homes clearly show that every single house taken in Flint only sells for about 5 to 10 percent of the value Flint claimed it had. The land bank is involved in this conspiracy. Those who are buying these homes are contributing to the fraud. No One should do business with this corrupt entity. No one.
http://www.mlive.com/business/mid-michigan/index.ssf/2012/10/genesee_county_land_bank_strug.html
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Flint, Genesee County have spent $36.5 million for federal Neighborhood Stabilization Program
3sense
Flint, Genesee County have spent $36.5 million.
It should say Flint, Genesee County have "wasted" $ 36.5 million.
http://www.mlive.com/news/flint/index.ssf/2013/01/flint_genesee_county_have_spen.html |
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Wed Feb 26, 2014 8:25 pm |
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untanglingwebs
El Supremo
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The Genesee County Land bank has reached a level of politicalization, ineptitude and croneyism that has rendered it a prime candidate for elimination.
I have spoken to countless individuals and potential business people who were denied the opportunity to purchase land because the Land Bank stated future development. The Land Bank was not created to be a developer and the auction system by the state allows investors into the system which is what the Land Bank puports they sre stiving to prevent.
Dan Kildee, when he was in charge,criticized the nonprofits who were attempting (unsuccessfully) to accumulate large tracts of land for future development when they could not afford this luxury. The Genesee County Land bank is doing the very same thing. They cannot afford the maintenance of this land.
They are accumulating huge tracts of land and holding for future purposes. Pastor Flynn of Foss Avenue, in one of his recent speeches, denounced the policies of developing ony downtown and accused officials of once again making the north end gardens and farmland. According to Highsmith, the north end was the last area in Flint to be fully developed.
There are secretive land transactions taking place in the Metawanenee area . Individuals attempting to purchase home in this area are being denied and are being told by the Land Bank that all of the land is being held for Salem Housing. salem has houses that have been for sale for at least five years that remain unsold. But Salem has strong political allies, obviously within the land bank too. Even the City of Flint gave them more money for purchase, rehab and resale HUD programs after HUD criticized salem's failures in similar programs and warned the city about this participant.
Remember the failed efforts of Salem in the Smith Village area? The media covered the stories of angry homeowners that dealt with Salem and Salem flagrantly broke HUD rules regarding policies and contractors. |
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Wed Feb 26, 2014 8:28 pm |
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untanglingwebs
El Supremo
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Ficano wants to end Wayne County Land Bank
County Executive Robert Ficano wants to eliminate the Wayne CountyLand Bank, which he touted when it was started in 2007 as a tool to rehabilitate vacant and dilapidated properties.
Instead, it generated mostly controversy, including a now-defunct horse racing track in Huron Township.
Ficano made the proposal -- one of many cost-cutting suggestions -- in his budget released earlier this month. The County Commission is reviewing the plan and would have to sign off.
"With plummeting property values over the past few years, the county's property tax collections have dropped more than $100 million, striking a hard blow to the county's general fund," Ficano spokeswoman June West said. "This is a bare-bones budget that is focused on essential and mandated services."
The county has poured more than $14.2 million into the Land Bank since 2008, and it received an additional $5 million in federal funds. The idea was to provide incentives to owners to rehabilitate their properties, to sell abandoned property cheaply and to clean up or tear down blighted buildings.
Last year, the county's general fund contributed $2.8 million to the Land Bank. But facing a $189-million cumulative deficit, the county can't afford it anymore, said County Commissioner Laura Cox, R-Livonia.
"When it was originally proposed, it was supposed to get a little bit of subsidy, but it was supposed to become self-sustaining, and they never got there," she said. "It can't continue."
http://www.freep.com/article/20120713/NEWS02/207130360/Ficano-wants-to-end-Wayne-County-Land-Bank |
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Wed Feb 26, 2014 8:29 pm |
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untanglingwebs
El Supremo
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Wed Feb 26, 2014 8:31 pm |
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untanglingwebs
El Supremo
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From the 2012 Land Bank Authority audit:
Blended Component Units
GCLB-Berridge Place, Inc. (Berridge Entities) was created to buy, own, operate, and sell the historically designated property formerly known as the Berridge Hotel located in Flint, Michigan. GCLB-Berridge Place, Inc. is wholly owned by the Genesee County Land Bank Authority.
To carry out its purpose, GCLB-Berridge Place, Inc. created a subsidiary, Berridge Place Manager, LLC (of which GCLB-Berridge Place, Inc. owns 99.9 percent), which created Berridge Place, LLC (owns .1 percent). Berridge Place, LLC is the owner and lessor of the historically rehabbed property known as the Berridge Hotel.
Page 13 Genesee County Land Bank Authority
Notes to Financial Statements
September 30, 2012
Note 1 - Nature of Business and Significant Accounting Policies
(Continued)
Investment in 607 East Second Avenue, LLC
The Authority’s 1 percent ownership interest in 607 East Second Avenue, LLC (LLC) is accounted for in the statement of net assets as an equity investment. 607 East Second Avenue, LLC was created to account for the redevelopment of the old Durant Hotel.
The total projected cost of the development was approximately $35,590,000, with a total contribution of $18,380,819 from the Authority. The Authority's capital
contributions sources were from grants, Brownfield TIF bonds, and sale of state historic and state Brownfield tax credits. The Authority has recorded a loss on impairment of the fair value of its investment below cost in the amount of $15,830,518 to bring the investment balance to $2,085,000 (see Note 9) |
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Sat Mar 22, 2014 4:13 pm |
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untanglingwebs
El Supremo
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Genesee County Land Bank Authority
Notes to Financial Statements
September 30, 2012
Note 9 - Prior Period Adjustment and Restatement
The Authority has restated its financial statements at September 30, 2012 and
September 30, 2011. Subsequent to the issuance of the 2012 report dated March 8,
2013, the Authority recorded a prior period adjustment to recognize an impairment loss of the fair value of its investment in 607 East Second Avenue, LLC below cost as of September 30, 2011 in the amount of $15,830,518. As a result, the Land Bank Authority Enterprise Fund total net assets at September 30, 2011 changed from $25,408,625 to $9,578,107 and total Enterprise Funds total net assets changed from $27,331,622 to $11,501,104. |
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Sat Mar 22, 2014 4:22 pm |
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untanglingwebs
El Supremo
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Note 4 - Interfund Receivables, Payables, and Transfers
The composition of interfund balances is as follows:
Land Bank Authority - Advance to Berridge $ 1,688,160
GCLB-Berridge Place - Advance from GCLB (1,556,817)
Total $ 131,343
A timing difference for recording changes in advances exists, as the two funds' presented year ends do not coincide. The difference is presented as an internal balance at thegovernmental-wide statements.
The balance owing to the Land Bank Authority Fund from the GCLB-Berridge Place,
LLC Fund resulted from a loan made for the construction of the Berridge building,
developer fees payable to the Land Bank Authority Fund, and operational expenses paid by the Land Bank Authority Fund on behalf of GCLB-Berridge Place, LLC. Amounts will be paid in the future as cash flows allow or ultimately out of proceeds from any sale of the building. The variance in the balances from each entity is based on a timing difference due to the fiscal year 2011 financial statements being used for GCLB-Berridge Place, LLC for current year presentation.
Berridge Place building $ 540,000
Developer fees 870,705
Operating/Interest 146,112
Total $ 1,556,817 |
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Sat Mar 22, 2014 4:28 pm |
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untanglingwebs
El Supremo
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On September 10, 2010, Genesee County Land Bank Authority entered into an
agreement with Genesee County to repay for properties previously transferred to the Authority. A seven-year note payable, bearing 1 percent interest, was set up for
$975,038. The Authority will make quarterly payments with the last payment being due September 30, 2017.
Page 20
Genesee County Land Bank Authority
Notes to Financial Statements
September 30, 2012
Note 5 - Long-term Debt (Continued)
On April 1, 2007, Genesee County transferred the improvements of the Land Bank
Center (formerly the Hughes & Hatcher Building) to the Authority in exchange for a
note payable to the County with an original amount of $1,995,000, maturing October 1, 2024, not subject to redemption prior to maturity, bearing interest rates ranging between 4.75 percent and 5.7 percent. The note requires the Authority to pay the debt service requirements of the bonds used to improve the building located at 452 S. Saginaw St., Flint, MI 48502.
On June 26, 2008, the Genesee County Land Bank Authority issued bonds in the amount of $1,195,000, maturing January 31, 2014, not subject to redemption prior to maturity, bearing an interest rate of 5.39 percent, for the purpose of providing funds for the Berridge Place Project. The funds were loaned (advances to/from other funds) to the Berridge Place Enterprise Fund. The bonds are supported by the limited tax, full faith, and credit of the Authority. The bonds are expected to be paid from project revenues received from PNC Bank (formerly known as National City Bank, N.A.) and National City Community Development Corporation, based upon certain Michigan State historic tax credits and federal historic tax credits.
During fiscal year 2011, Genesee County Land Bank Authority obtained a note from
Chase Bank in the amount of $400,000, maturing September 1, 2014, bearing an interest rate of 2.65 percent plus the one-month LIBOR, for the general operations of the Authority. The Authority made a principal payment of $200,000 during fiscal year 2012. The Authority is required to make quarterly interest payments. The remaining amount of principal is due on September 1, 2014.
Additional security is provided by the pledge of the full faith and credit of Genesee County. |
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Sat Mar 22, 2014 4:45 pm |
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untanglingwebs
El Supremo
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Sat Mar 22, 2014 4:51 pm |
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untanglingwebs
El Supremo
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Note 1 - Nature of Business and Significant Accounting Policies
(Continued)
Investment in 607 East Second Avenue, LLC
The Authority’s 1 percent ownership interest in 607 East Second Avenue, LLC (LLC) is accounted for in the statement of net assets as an equity investment. 607 East Second Avenue, LLC was created to account for the redevelopment of the old Durant Hotel.
The total projected cost of the development was approximately $35,590,000, with a
total contribution of $18,380,819 from the Authority. The Authority's capital
contributions sources were from grants, Brownfield TIF bonds, and sale of state historic and state Brownfield tax credits. The Authority has recorded a loss on impairment of the fair value of its investment below cost in the amount of $15,830,518 to bring the investment balance to $2,085,000 (see Note 9). |
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Sat Mar 22, 2014 4:57 pm |
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untanglingwebs
El Supremo
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Note 9 - Prior Period Adjustment and Restatement
The Authority has restated its financial statements at September 30, 2012 and
September 30, 2011. Subsequent to the issuance of the 2012 report dated March 8,
2013, the Authority recorded a prior period adjustment to recognize an impairment loss of the fair value of its investment in 607 East Second Avenue, LLC below cost as of September 30, 2011 in the amount of $15,830,518. As a result, the Land Bank Authority Enterprise Fund total net assets at September 30, 2011 changed from $25,408,625 to $9,578,107 and total Enterprise Funds total net assets changed from $27,331,622 to $11,501,104. |
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Sat Mar 22, 2014 5:04 pm |
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untanglingwebs
El Supremo
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A news service for the people of Michigan from the Mackinac Center for Public Policy
CapCon
Indy Land Bank Officials Indicted
Michigan needs to review land bank operations
By Audrey Spalding | May 23, 2013 | Twitter Follow Audrey Spalding on Twitter
FBI officials raided the office of the Indianapolis Land Bank on May 28 after a months-long investigation revealed evidence its officials were receiving kickbacks for selling properties to favored nonprofit groups.
The land bank's director, Reginald Walton, has been charged.
Allegedly, land bank officials were exploiting a policy that gives nonprofits preference over other would-be buyers of land bank property. The Indianapolis Land Bank would sell properties at a steep discount to nonprofit organizations, instead of using a bidding process. Michigan land banks, such as the Kent County Land Bank and the Genesee County Land Bank, also have policies that favor nonprofits.
Indianapolis Land Bank officials allegedly took bribes to exploit this policy. Officials reportedly then sold land bank properties to "pass-through" nonprofits at a steep discount. According to reports, the executives of those nonprofits would then transfer the properties to private investors — while collecting a fee.
In light of this, the Indianapolis mayor has suspended the land bank's operation.
The corruption of the Indianapolis Land Bank is not surprising to anyone who has tracked these government entities. The country's oldest land bank, in St. Louis, Mo., has a similar history of corruption and favoritism.
Granting government officials the power to choose who can buy property and for how much, along with the ability to funnel subsidies to certain developers, is a recipe for corruption. And yet, that is what Michigan's land bank law allows.
The Kent County Land Bank created controversy when it blocked properties from going to auction — where they would have been bid on in a transparent process — to be able to pick and choose who could purchase property.
Indianapolis officials' misdeeds should cause legislators here to revisit the wisdom of allowing such entities to exist in Michigan. While there is no evidence of bribery, land bank officials around this state have already put in place policies that favor nonprofits and government employees.
At the very least no land bank should be allowed to block property from being sold at tax auction. Moreover, these government agencies should adopt uniform pricing policies, instead of extending preferred treatment to some.
Michigan has 40 or so land banks, and they operate without much independent oversight. It would be best to eliminate or reform them now, instead of waiting for a scandal to occur.
Permission to reprint this blog post in whole or in part is hereby granted, provided that the author (or authors) and the Mackinac Center for Public Policy are properly cited. Permission to reprint any comments below is granted only for those comments written by Mackinac Center policy staff. |
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Sun Apr 06, 2014 8:39 pm |
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untanglingwebs
El Supremo
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"Allegedly, land bank officials were exploiting a policy that gives nonprofits preference over other would-be buyers of land bank property. The Indianapolis Land Bank would sell properties at a steep discount to nonprofit organizations, instead of using a bidding process. Michigan land banks, such as the Kent County Land Bank and the Genesee County Land Bank, also have policies that favor nonprofits."
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Could there be kickbacks here too? I remember County Commissioner Omar Sims, who sits on the Land Bank Board stating he favored "Institutions over individuals." There have been some questionable deals with nonprofits where the Land Bank violated their own rules repeatedly. |
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Sun Apr 06, 2014 8:43 pm |
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