Land Bank Agency

LAND BANK BOARD MEETING October 19, 2020 3:00 p.m. Public Telephone Conference (816) 743-4875 - Conference ID: 381 112 577# PLEASE NOTE: Pursuant to Jackson County Executive Order dated March 12, 2020 and subsequent amendments requiring residents to stay at home and limiting public gatherings, this meeting will be conducted by taking safe social distancing measures as required by the Order. For this meeting, the public may attend via telephone conference (816-743-4875, Conference ID: 381 112 577#) as provided in Section 610.020(4) RSMo. Members of the Land Bank will be participating via telephone conference as provided in Section 610.020(1) RSMo. 1. Approval of the September 21, 2020 Land Bank Board Meeting Minutes 2. Quarterly Financial Statements 3. 2020-21 Land Bank Annual Report 4. Executive Session – Discussion relating to real estate pursuant to Sections 610.021(2) RSMo Posted Friday, October 16, 2020 at City Hall, 903 W Main Street, Blue Springs, MO and on the City’s website. A quorum of the City Council may be in attendance, however no City Council votes will be taken. Julia Porter Board Secretary  CITY OF BLUE SPRINGS, MISSOURI MINUTES OF LAND BANK MEETING SEPTEMBER 21, 2020 A meeting of the Land Bank of Blue Springs, Missouri was held on Monday, September 21, 2020 at 3:00 p.m. with Chairman Johnson presiding. A State of Emergency for Jackson County, Missouri was declared on March 12, 2020 and subsequent amendments by Jackson County Executive Order requiring residents to stay at home and limiting public gatherings to reduce the spread of the COVID-19 virus. As provided in Sections 610.020(1) and 610.020(4) RSMo., the Land Bank Commissioners participated in this meeting via telephone conference to ensure safe social distancing measures were taken. The public was able to attend via telephone conference. CONFIRMATION OF A Eric Johnson Kirk Sampson QUORUM – James May Jim Fairbanks COMMISSIONERS IN Tracy White-Baldridge - ABSENT ATTENDANCE Also present were Staff Liaisons Christine Cates; Jackie Sommer, Karen Van Winkle, Chris Sandie; Mike Mallon; Lance Dillenschneider, realtor and Board Secretary Julia Porter. CALL TO ORDER Chairman Johnson called the Land Bank meeting to order at 3:00 p.m. APPROVE BOARD Commissioner May moved to approve the minutes of the August 17, MINUTES 2020 meeting of the Land Bank of Blue Springs. Motion seconded by Commissioner Fairbanks and carried with the following votes: May – Aye Fairbanks – Aye Sampson – Aye Johnson – Aye White-Baldridge – ABSENT LAND BANK FY2019-20 Karen Van Winkle, Director of Finance for the City of Blue Springs, BUDGET AMENDMENT presented the FY 2019-20 Budget Amendment and the FY 2020-21 AND FY2020-2021 Annual Budget. The FY 2020-21 Annual Budget summary is attached ANNUAL BUDGET to these Minutes. VOTE ON LAND BANK Commissioner May moved to approve the Amendment to the FY 2019- FY 2019-20 BUDGET 20 Land Bank Budget. The motion was seconded by Commissioner AMENDMENT Fairbanks and carried with the following votes: May – Aye Fairbanks – Aye Sampson – Aye Johnson – Aye White-Baldridge – ABSENT VOTE ON LAND BANK Commissioner May moved to approve the FY 2020-21 Land Bank FY 2020-21 ANNUAL Budget. The motion was seconded by Commissioner Fairbanks and BUDGET carried with the following votes: May – Aye Fairbanks – Aye Sampson – Aye Johnson – Aye September 21, 2020 Land Bank Minutes Page 2 White-Baldridge – ABSENT EXECUTIVE SESSION At 3:06 p.m., Commissioner May moved that the Land Bank go into closed session pursuant to Section 610.021, subparagraph (2), Revised Statutes of Missouri, for the purpose of privileged communications between a governmental body or its representative and legal counsel including real estate, and that any minutes, documents and other records discussed or taken during the closed session remain closed, and that this body stand adjourned at the completion of such session. Motion seconded by Commissioner Fairbanks and carried with the following votes: May – Aye Fairbanks – Aye Sampson – Aye Johnson – Aye White-Baldridge – ABSENT ______________________________ Eric Johnson, Chair ________________________ Julia Porter, Board Secretary  CITY OF BLUE SPRINGS BALANCE SHEET - LAND BANK FISCAL YEAR 2019-20 FOR THE PERIOD ENDED - SEPTEMBER 30, 2020 CATEGORY LAND BANK ASSETS Cash and investments $ 343,802 Receivables (net of allowances Taxes - Accounts Accrued interest - Interfund receivables - Land 261,677 Prepaid items - TOTAL ASSETS $ 605,479 LIABILITIES Accounts payable $ 28,170 Accrued liabilities - Interfund payable - Long term debt - TOTAL LIABILITIES $ 28,170 FUND BALANCES Reserved for: Encumbrances - Unassigned 577,309 TOTAL FUND BALANCES $ 577,309 TOTAL LIABILITIES AND FUND BALANCE $ 605,479 Page 1  CITY OF BLUE SPRINGS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - LAND BANK FISCAL YEAR 2019-20 FOR THE PERIOD ENDED - SEPTEMBER 30, 2020 CATEGORY LAND BANK REVENUES: Farm Lease $ 12,839 Sale of Land 232,024 Property Taxes 48,835 Interest 1,444 Contributed Capital - Land - Other 25 TOTAL REVENUES $ 295,167 EXPENDITURES: Current: Personal Services - Materials & Supplies - Contractual Services 447,774 Capital Outlay - Capital Improvements - Debt service: - Principal retirement - Interest and fiscal charges - TOTAL EXPENDITURES $ 447,774 Excess of revenues over (under) expenditures $ (152,608) OTHER FINANCING SOURCES (USES): Issuance of bonds - Discount on bond issuance Loss on sale of asset (53,112) Transfers in Transfers (out) - TOTAL OTHER FINANCING SOURCES (USES) $ (53,112) NET CHANGE IN FUND BALANCES (205,720) FUND BALANCES - OCTOBER 1, 2019 $ 783,029 FUND BALANCES - SEPTEMBER 30, 2020 $ 577,309 Page 2  Eric Johnson Chairman Julia Porter Board Secretary October 1, 2019 - September 30, 2020 903 W. Main Street, Blue Springs, MO 64015 (816) 220-4596 | contact@landbankbluesprings.com www.landbankbluesprings.com  TABLE OF CONTENTS LAND BANK OF BLUE SPRINGS ................................................................................................ 2 COMMISSIONERS ................................................................................................................... 2 FINANCIAL SUMMARY ................................................................................................................ 3 PARCELS ACQUIRED BY THE LAND BANK .............................................................................. 4 PARCELS SOLD OR TRANSFERRED ........................................................................................ 4 SOLD ......................................................................................................................................... 4 TRANSFERRED ....................................................................................................................... 4 CURRENT INVENTORY .............................................................................................................. 5 PARCELS AVAILABLE FOR SALE .......................................................................................... 5 PARCELS AVAILABLE TO NEIGHBORING LOT OWNERS ................................................... 5 PARCELS NOT FOR SALE ...................................................................................................... 6 SOUTH AREA SEWER NEIGHBORHOOD IMPROVEMENT DISTRICT .................................... 7 OTHER ACTIONS BY THE BOARD ............................................................................................. 7 FARM LEASES ......................................................................................................................... 7 AGREEMENT TO HAUL DIRT OFF OF PARCEL 2014-03 ...................................................... 7 *Land Bank Parcel Number refers to the year and order in which the Land Bank acquired the parcel. The first four digits are the year the parcel was received. The next two digits were assigned by the Land Bank for easier tracking. The rest of the number is the Parcel Number assigned by Jackson County. Land Bank Report FY 2019-20 1 LAND BANK OF BLUE SPRINGS The purpose of the Land Bank of Blue Springs is to return non-revenue-generating and non-tax- producing land to usefulness. The land bank agency is composed of a Board of Commissioners consisting of five members, all of whom are residents of Blue Springs. Three commissioners are appointed by the Mayor of Blue Springs, one commissioner is appointed by Jackson County, and the other commissioner is appointed by the School District. Missouri Land Bank Legislation, which became effective August 28, 2012, authorized any municipality located within a county that had a land trust operating on January 1, 2012, to create a land bank agency. That legislation also provided that any property owned by the county’s land trust would be transferred to the newly created land bank agency as soon as possible after its formation. On March 4, 2013, the City of Blue Springs passed Ordinance No. 4429 creating the Land Bank of Blue Springs. Properties in Blue Springs held by the Jackson County Land Trust due to non- payment of back taxes were transferred to the Land Bank of Blue Springs. All properties sold for back taxes where the bid was not sufficient to pay the judgment are transferred to the Land Bank rather than the Jackson County Land Trust. The Board adopted Policies and Procedures for the Acquisition and Disposal of properties. These guidelines are used to determine which properties are offered for sale, the requirements for offers and how offers are evaluated. The Land Bank entered into an Intergovernmental Agreement with the City of Blue Springs on August 5, 2013 with the initial term of the Agreement ending on September 30, 2016. Since this time, the City and Land Bank have been operating based on the terms of this agreement. The Land Bank Board of Commissioners approved a new Intergovernmental Agreement on September 16, 2019 with the term of the Agreement ending on September 30, 2022. The South Area Sewer Neighborhood Improvement District (NID) was formed after the annexation of approximately 1,500 acres of undeveloped property into the corporate limits of the City of Blue Springs. The purpose of the NID is to provide funding to build sewer infrastructure that would enable the area to be developed. The City issued 20-year NID Bonds in 2009 to be repaid through special assessments on the properties. Growth and development in the NID decreased significantly when the recession started in 2008. In some cases, the taxes and NID special assessments went unpaid and the properties were transferred to the Land Bank. This report includes a summary of the actions taken by the Land Bank of Blue Springs from October 1, 2019 through September 30, 2020. COMMISSIONERS SCHOOL DISTRICT APPOINTEE: Kirk Sampson, August 2018 – Present, Treasurer COUNTY APPOINTEE: James Fairbanks, January 2017 - Present MAYORAL APPOINTEES: Eric Johnson, May 2013 – Present, Chair James (Jim) May, May 2013 – Present, Vice Chair Tracy White-Baldridge, May 2016 - Present Land Bank Report FY 2019-20 2 FINANCIAL SUMMARY Blue Springs Land Bank Trust Agency - Statement of Changes in Net Position Additions 2020 2019 2018 2017 2016 $ $ $ $ Property taxes 48,835 106,408 78,820 74,986 $ - Contributions and donations from private sources - 890,000 93,731 224,676 Gain on sale of capital assets 232,024 - - - 330,234 Interest income 1,444 11,613 993 389 Other income 12,864 20,610 7,220 Total additions 295,167 1,028,631 180,764 300,051 330,234 Deductions Administrative expenses 18,168 62,645 4,769 4,768 630 Remittance of special assessment collections to Sewer Fund 429,607 538,102 74,513 70,783 349,039 Loss on sale of capital assets 53,112 71,379 133,214 9 - Total deductions 500,886 672,126 212,496 75,560 349,669 Change in net position (205,720) 356,505 (31,732) 224,491 (19,435) Net position, beginning 795,867 439,362 471,094 246,603 266,038 $ $ $ $ $ Net position, ending 590,147 795,867 439,362 471,094 246,603 The Land Bank is audited as part of the City’s annual audit and is reported as a Trust Fund within the City’s financial statements. Each year, a budget is prepared and presented to the Board for adoption. Throughout the year, quarterly financial statements are reviewed by the Board and included on the meeting agendas for discussion. Properties that are transferred to the Land Bank from Jackson County are recorded at the market value the County has listed at the time of the transfer. The gain or loss on sale of property is calculated as the difference between the property’s sales price and the market value of the property as determined by the County. Land Bank Report FY 2019-20 3 PARCELS ACQUIRED BY THE LAND BANK No parcels were acquired by the Land Bank in FY 2019-20. PARCELS SOLD OR TRANSFERRED SOLD The Land Bank of Blue Springs has sold two properties in FY 2018-19. Below is a summary of each property sold: Land Bank Parcel Number Purchaser Size/ Purchase Price per Acre Price 2013-20-35-820-20-17-00-0-00-000 Sarah Paradis 32,372 Sq. Ft / $2,000 $2,691.21 2016-06-41-940-99-01-01-0-00-000 Rausch Coleman 20 Acres / $230,000 Homes dba Kansas $11,500 LD, LLC Total $232,000 2013-20-820-20-17-00-0-00-000 Purchaser: Sarah Paradis Area: Apple Valley Subdivision Purchase Price: $2,000 Sold on May 28, 2020 NID Assessment: N/A 2016-06-41-940-99-01-01-0-00-000 Purchaser: Rausch Coleman Homes dba Kansas LD, LLC Area: Chapman Farms Purchase Price: $230,000 Closed on July 1, 2020 NID Assessment: $67,763.77 through and including the year 2029 *2016-06 was purchased in two sections with the first 20 Acres outlined above, and the remaining 40 Acres set to close in FY 2020-21 TRANSFERRED The Land Bank of Blue Springs did not transfer property in 2019 Land Bank Report FY 2019-20 4 CURRENT INVENTORY There are currently eight parcels in the Land Bank inventory that are listed as For Sale, there are 16 parcels that are available to neighboring lot owners, and there are ten parcels listed as Not for Sale. PARCELS AVAILABLE FOR SALE Land Bank Parcel Number Status Area Size 2013-06-35-440-05-42-00-0-00-000 For Sale Creek Side 1.01 Acres Estates 2014-03-54-410-99-10-00-0-00-000 For Sale Chapman 3.83 Acres Farms – NID 2014-04-54-420-06-99-00-0-00-000 For Sale Chapman 12.14 Acres Farms – NID 2014-05-54-420-98-03-01-0-00-000 For Sale Chapman 17.19 Acres Farms – NID 2017-03-41-700-03-03-00-0-00-000 For Sale Chapman 29.63 Acres Farms – NID 2017-04-54-100-02-03-00-0-00-000 For Sale Chapman 38.73 Acres Farms – NID 2017-05-54-200-01-08-00-0-00-000 For Sale Chapman 94.59 Acres Farms – NID 2017-06-54-200-04-10-00-0-00-000 For Sale Chapman 58.28 Acres Farms – NID PARCELS AVAILABLE TO NEIGHBORING LOT OWNERS Land Bank Parcel Number Status Area Size 2013-01-35-140-11-02-01-0-00-000 Available to Heatherwood 3,521 Sq. Ft Neighboring Lot Owners 2013-03-35-410-11-04-00-0-00-000 Available to HOA - Nantucket 16,141 Sq. Ft Storm Detention Tract 2013-04-35-430-03-39-00-0-00-000 Available to Kingsridge 9,296 Sq. Ft Neighboring Lot West Owners 2013-07-35-510-06-12-01-0-00-000 Available to Blue Springs 10,445 Sq. Ft Neighboring Lot Ford, 1st Plat Owners 2013-08-35-540-01-01-01-0-00-000 Available to Kingsridge 10,315 Sq. Ft Neighboring Lot Owners 2013-09-35-610-04-68-00-0-00-000 Available to Weatherstone 8,223 Sq. Ft Neighboring Lot West Owners or HOA 2013-22-36-240-08-69-00-0-00-000 Available to The Moors 24,085 Sq. Ft Neighboring Lot Owners or HOA 2013-23-36-320-09-78-00-0-00-000 Available to Sherwood 2,766 Sq. Ft Neighboring Lot Village Owners or HOA Land Bank Report FY 2019-20 5  2013-33-41-310-18-37-02-0-00-000 Available to Manor South 410 Sq. Ft Neighboring Lot Owners 2013-36-42-120-08-49-00-0-00-000 Available to Plaza Estates 459 Sq. Ft Neighboring Lot West Owners 2013-37-42-610-03-84-01-0-00-000 Available to Stonecreek 1 Sq. Ft Neighboring Lot Owners 2015-01-36-130-26-04-00-0-00-000 Property has storm Summerfield 7,378 Sq. Ft detention and a East sewer lift station. When the station is abandoned it can be sold to an adjacent property owner or HOA 2015-02-41-410-17-20-01-0-00-000 Available to Village 5,266 Sq. Ft Neighboring Lot Woods Owners 2016-02-36-910-16-27-02-0-00-000 Available to Sunny Side 466 Sq. Ft Neighboring Lot Slopes Owners 2017-01-35-610-03-17-00-0-00-000 Available to Weatherstone 436 Sq. Ft Neighboring Lot Owners 2017-02-36-340-15-25-00-0-00-000 Detention Basin - Brittany Place 30,492 Sq. Ft could be sold to neighbors for green space PARCELS NOT FOR SALE The Land Bank Board of Commissioners and staff reviewed parcels in the current inventory and determined that several parcels should be kept in the Land Bank. These parcels include detention basins and creek areas. Land Bank Parcel Number Status Area Size 2013-13-35-630-05-11-00-0-00-000 Detention Basin Vesper Vale 8,812 Sq. Ft 2013-24-36-330-06-45-00-0-00-000 Detention Basin Hunter's Dell 10,135 Sq. Ft East 2013-25-36-910-09-48-01-1-00-000 Creek area East 10,639 Sq. Ft Lakeview Annex 2013-27-36-940-13-14-01-0-00-000 Creek area East 6,568 Sq. Ft Lakeview Annex 2013-28-36-940-15-01-01-0-00-000 Creek area East 2.87 Acres Lakeview Annex Land Bank Report FY 2019-20 6  2013-30-41-220-05-24-00-0-00-000 Detention area with Autumn 41,729 Sq. Ft overhead powerlines Chase 2013-31-41-220-05-32-00-0-00-000 Detention area with Autumn 13,387 Sq. Ft overhead powerlines Chase 2013-32-41-220-05-60-00-0-00-000 Detention area with Autumn 1.01 Acres overhead powerlines Chase 2013-34-41-340-02-11-00-0-00-000 Detention Basin Manor South 8,388 Sq. Ft 2013-35-41-340-25-33-00-0-00-000 Long strip behind Keystone 10,477 Sq. Ft several properties Estates SOUTH AREA SEWER NEIGHBORHOOD IMPROVEMENT DISTRICT The sale proceeds of NID properties are transferred to the City’s Sewer Fund to pay special assessments previously not collected on the property. The total unpaid NID assessments on Land Bank property as of September 30, 2020, are $2,679,798. The assessments as of September 30, 2019 were $2,918,346. OTHER ACTIONS BY THE BOARD Periodically the Board will take other actions related to properties held in the Current Inventory. These actions include farm leases, easements, and miscellaneous action items. Below are actions taken by the Board in FY 2019-20: FARM LEASES The Board authorized the option to extend the following farm leases with Chapman Farms Partnership, LLC on September 16, 2019, for one additional year as set out in the lease agreement. There are no remaining renewal options under the current lease agreement Land Bank Parcel Number Tillable Total Cost to Effective Date Acres Acres Rent 2014-05-54-420-98-03-01-0-00-000 3 17.24 $181 03/20/2019 – 12/31/2020 Acres Acres 2017-03-41-700-03-03-00-0-00-000 123 226 $10,086 03/20/2019 – 12/31/2020 2017-04-54-100-02-03-00-0-00-000 Acres Acres 2017-05-54-200-01-08-00-0-00-000 2017-06-54-200-04-10-00-0-00-000 AGREEMENT TO HAUL DIRT OFF OF PARCEL 2014-03 Rick Mentel signed a Release of Liability with the Land Bank on Parcel 2014-03-54-410-99-10- 00-0-00-000 on June 28, 2015 to cover the Land Bank in case of any injury on the property. The Land Bank has a verbal agreement with Rick Mentel to remove dirt and debris off of the property for his personal use. There is no estimated timeline or completion date at this time. Land Bank Report FY 2019-20 7