The Kent County Land Bank is Crony Government Gone Wild

Today the Kent County Taxpayers Alliance (KCTA) announced its educational and electoral campaign opposing the Kent County Land Bank and the Kent County Commissioners who support it. KCTA has been active in Kent County for years fighting government corruption, inefficiencies, excessive taxation, and abusive election practices. This newest front represents their attempt to bring more sunshine on the new practices of this unaccountable government authority that is distorting local real estate markets.

The Land Bank is a local governmental authority that has as its mission the purchase of dilapidated and blighted properties that are over 3 years behind in paying property taxes. These properties are owned by the county and the Land Bank’s role is to return them onto the tax rolls as soon as possible. Land banks are used in 41 of Michigan’s 83 counties right now, most prominently seen in severely blighted counties like Genessee and Wayne.

Every year in mid August, the county holds an auction for the properties it has seized for failure to pay taxes. The goal of the auction is to create a market for private investors to purchase properties and to raise revenue to pay for essential county services like police, prisons, courts, roads, and parks. The Board of Commissioners’ own policy states that it is to maximize the return to the taxpayers on these properties which it has done for many years through the auction process.

However, on July 12, the Board of Commissioners, in a vote of 13-4, chose to hand over 40 properties to the Land Bank for just the minimum bid (the amount of delinquent taxes) before allowing private citizens to participate. Although it is impossible to know the exact amount that the county would have received for these properties it is very reasonable that they would have sold for five to ten times their minimum bid. This means that the nearly $500,000 that was spent by the Land Bank potentially ended up costing the county hundreds of thousands if not millions of dollars in lost revenue.

Said KCTA spokesman Eric Larson, “The actions of the Board of Commissioners in their collusion with the Land Bank shows a complete disregard by the majority of county commissioners of their fiduciary responsibility towards Kent County. At a time that the county is contemplating cutting sheriff deputies and other services it is leaving hundreds of thousands of dollars if not millions on the table which is revenue that it will need to make up either in higher taxes or cutting services. This Board action was reckless and shows that most of the commissioners are more comfortable giving property away for a steal to central planners than allowing the market of private investors at an auction to operate as it has for years.

“The whole point of the Land Bank is to be the buyer of last resort for properties that no one wants at the minimum bid. The ‘impossible to sell’ properties they purchased included a farm home on the bike path in Byron Center (2796 64th St), a beautiful residential property in Alpine Township (5076 Montauk Dr.), and numerous other properties that were about as dilapidated as the new Children’s Hospital. This is exactly the type of crony government action that KCTA has been fighting since our inception. We have an unaccountable board running the Land Bank with the ability to circumvent the normal auction process and purchase property before private entrepreneurs or current homeowners can – all at a massive financial loss to the taxpayers.”

KCTA plans to run a social media campaign targeted at eductating the public about this crony government practice and highlighting the role that the Kent County Board of Commissioners had in violating their own policy for maximizing the taxpayers’ return on these properties. KCTA has begun a fund raising campaign to air a radio ad explaining the Land Bank and the reckless actions of the Board of Commissioners to the public.

To learn more about the Kent County Land Bank, please see our Issues page on the Kent County Land Bank.