Mayor & Commission Meetings

GOVERNMENT OPERATIONS COMMITTEE MEETING MINUTES Monday, November 18, 2024 Committee Members Present: Committee Members Absent: Commissioner Patrick Davenport, Committee Chair Commissioner Mike Hamby Commissioner Tiffany Taylor Commissioner Melissa Link Commissioner Dexter Fisher Staff: Andrew Saunders, Interim-Assistant Manager Melinda Lord, HCD Director Austin Jackson, Senior Assistant Attorney Marquita Swain, Affordable Housing Courtney Davis, Senior Assistant Attorney Administrator Chinesia Thompson, Recorder Jean Spratlin, Clerk of Commission (Phone) Committee Chair Davenport called the meeting to order at 12:05 p.m. A. Approval of Minutes: Commissioner Taylor made the motion to approve the Minutes of the October 21, 2024 meeting. Commissioner Fisher seconded the motion and it passed by unanimous vote. B. Commission Identified Items of Interest: Develop a plan to restart the Land Bank Authority (Mayor Girtz assigned to GOC on October 3, 2023) HCD Director Melinda Lord introduced Mr. Shawn Edwards, the Executive Director of the Augusta Land Bank Authority, who was invited to provide a presentation and address the committee's questions about the organization's work. Mr. Edwards began by outlining the scope of his presentation, which would cover the fundamental aspects of land bank authorities: their definition, operational mechanisms, and potential community benefits. He explained that land banks are collaborative governmental agreements varying between cities, counties, and states that enable government entities to strategically operate within the private real estate market to serve citizens' needs. Land banks have emerged as sought-after quasi- governmental tools, with 19 states having established land bank policies as of February, including 31 such authorities in Georgia alone. Discussing property challenges, Mr. Edwards noted the evolving terminology around what was traditionally called "blighted" properties. He described these properties as vacant, abandoned, and deteriorated spaces, providing specific examples such as overgrown vacant lots, partially burned structures lacking demolition funding, and abandoned properties boarded up or outside of compliance.  Mr. Edwards discussed deeper into the core functions and strategic importance of land banks. He emphasized their unique ability to target specific urban challenges, particularly in older communities struggling with infrastructure, street conditions, and aging homeowner populations. Land banks employ a two-pronged approach to break cycles of urban decline. First, they attract private market investment through innovative financial mechanisms like capital infusion, tax abatements, exemptions, and fee refunds. Second, they work to draw desirable populations both homebuyers and renters into these communities. He positioned land banks as powerful "equitable change agents" that operate from the ground up, fulfilling a crucial governmental responsibility. Their flexibility allows for creative land use, such as establishing community gardens and green spaces. Critically, land banks can acquire properties delinquent on taxes, eliminate past-due amounts, and hold properties tax-free while developing strategic redevelopment plans. Mr. Edwards provided honest insights into the operational aspect of land banks. He mentioned that The Augusta Land Bank Authority, for instance, began with minimal staffing just the executive director and an office manager and operates on a $141,000 general fund budget. The land bank generates its operational revenue through property sales, covering expenses like rent, utilities, travel, and training. The economic impact is significant. Mr. Edwards shared that a single blighted property can cause a 20% revenue loss on an entire block, depressing surrounding property values. By strategically acquiring, clearing, and repurposing such properties, land banks can revitalize entire neighborhoods. When discussing development, Mr. Edwards advocated for a forward-thinking approach. He recommended maintaining flexibility beyond affordable housing, creating frameworks that protect native residents while allowing for future growth. This involves developing partnerships with local investors, property owners, and potential homebuyers, and implementing innovative approaches like tax abatement incentive programs. Mr. Edwards ended his presentation by opening the floor for questions. During the discussion, the Committee engaged Mr. Edwards with a series of in-depth inquiries about land banks, exploring complex topics such as potential market interactions, relationships with local universities, and distinctions between land banks and land trusts. Mr. Edwards provided clarity on the land bank's operational relationship with the Tax Commissioner, detailing the precise mechanisms of property acquisition. He explained that the Tax Commissioner has the legal authority to transfer properties through two primary pathways: judicial foreclosure proceedings and non-judicial sales. The foundation of their collaborative process, as Mr. Edwards highlighted, is continuous and transparent communication. This ongoing dialogue ensures a streamlined transfer of tax- delinquent properties from the Tax Commissioner's inventory to the Land Bank Authority, facilitating efficient community revitalization efforts. Government Operations Committee Meeting Minutes Page 2 11182024  Melinda informed the committee that sufficient funds are available to establish the land bank authority. She highlighted that the funding could come from various annual revenue sources rather than relying on the General Fund. Specifically, she mentioned the Pilot Agreement with the Housing Authority and LITEC funding as potential options. Melinda emphasized that the committee has alternative funding sources to consider for covering the costs. The committee then discussed the composition of the land bank authority's board, including the qualifications they would like board members to have, the structure of the board, and the desired number of members. They reached a consensus on having seven board members. However, Attorney Courtney Davis noted that the current resolution establishes a five-member board. She explained that the committee could either amend the resolution to expand it to seven members or maintain the current structure and consider expansion in the future. Andrew suggested that at the next meeting, the committee could review the existing resolution to identify any desired changes or recommendations. He proposed that staff prepare budget concepts for consideration and noted that he would also discuss the matter with the tax commissioner. Commissioner Davenport requested rescheduling the December 16th meeting to December 9th at noon, citing holiday and travel commitments. The committee agreed to the new date. Commissioner Taylor made a motion to adjourned the meeting. Commissioner Fisher seconded. The motion passed by unanimous vote. The meeting adjourned at 1:39 p.m. Government Operations Committee Meeting Minutes Page 3 11182024