1. Vacant Land Assessment Concept City of East St. Louis, IL PGAV URBAN CONSULTING AND HINSHAW & CULBERTSON

2. Vacant Land Issues

Half of the Citys taxable land consist of vacant land

Vacant land generates little tax revenue

Even with population loss essential services remain the same:

• Same lineal miles of streets to patrol

• Same lineal miles of streets & utilities to maintain

3. Vacant Land Issues

Has attracted illegal dumping

City constantly mowing weeds and cleaning up vacant lots

Diversity of ownership both resident and non-resident

4. Vacant Land Analysis 5. 6. 7. 8. 9. 10. 11. Who owns this vacant land? 12. 13. 14. 15. Vacant Land Assessment 16. Goals

Raise revenue for essential public services

Discourage land banking/speculation

Encourage conversion of vacant land into more productive improved land

17. Proposal

Fee for essential public safety services

Based on quantity of vacant land (e.g., $0.03 per square foot)

Apply to all vacant land regardless of ownership or tax status

Assessed & collected annually

Administrative appeals procedures

18. Cost to Vacant Land Owner

5,000 sq. ft. lot (50 x 100):

• • @ $0.01/sq. ft.: $50.00

• • @ $0.02/sq. ft.: $100.00

• • @ $0.03/sq. ft.: $150.00

(5) 5,000 sq. ft. lots:

• • @ $0.01/sq. ft.: $250.00

• • @ $0.02/sq. ft.: $500.00

• • @ $0.03/sq. ft.: $750.00

19. Cost to Largest Vacant Land Owner *

• • @$0.01/sq. ft.: $32,000

• • @ $0.02/sq. ft.: $64,000

• • @ $0.03/sq. ft.: $96,000

• • * Bi-State Truck Repair, L. Sinn, et. al.

20. Special Provisions

Cap ESL resident owner payment ($250)

Exempt vacant lots used as a unified whole with adjoining owner-occupied residence(consolidate PINs with County)

Exempt unsold developer lots for 2 years

Other exemptions as deemed appropriate by City

21. Potential Revenue Generation

@ 80% Collection Rate:

• • $0.01/sq. ft.: $675,000

• • $0.02/sq. ft.: $1,350,000

• • $0.03/sq. ft: $2,025,000

@ 60%Collection Rate:

• • $0.01/sq. ft.: $500,000

• • $0.02/sq. ft.: $1,000,000

• • $0.03/sq. ft: $1,500,000

22. Challenges / Obstacles

Self administration (County wont help)

• • More costly & less efficient

• • Collection rate likely to be lower

Likely to be legally challenged

Reliance on a specific revenue amount cant be counted on until in place for several years

23. Final Notes

It isHIGHLY RECOMMENDEDthat the vacant land assessment is implemented AFTER implementing property tax relief reform (TIF district reductions).

Voter repercussions likely without property tax relief FIRST!