Land Bank Agency

LAND BANK BOARD MEETING October 18, 2021 3:00 p.m. Training Room 210 City Hall, 903 W Main Street Blue Springs, Missouri 64015 PLEASE NOTE: Face coverings are required pursuant to Order of the Jackson County Executive dated August 6, 2021 and subsequent extensions. Any persons wishing to attend the meeting in person should abide by the County’s mask requirement at all times while within City buildings, including the Council Chambers. 1. Approval of the August 16, 2021 Land Bank Board Meeting Minutes 2. Quarterly Financial Statements 3. Presentation of Land Bank Annual Report FY 2020-21 4. Executive Session – Discussion relating to real estate pursuant to Sections 610.021(2) RSMo Posted Wednesday, October 13, 2021 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 AUGUST 16, 2021 A meeting of the Land Bank of Blue Springs, Missouri was held on Monday, August 16, 2021 at 3:00 p.m. with Chairman Johnson presiding. CONFIRMATION OF A Eric Johnson, Chair Tracy White-Baldridge QUORUM – James May, Vice Chair Kirk Sampson COMMISSIONERS IN Jim Fairbanks ATTENDANCE Also present were Staff Liaisons Christine Cates, Jackie Sommer, Karen Van Winkle, Chris Sandie; Matt Wright; Lance Dillenschneider, realtor and Board Secretary Julia Porter. CALL TO ORDER Chairman Johnson called the Land Bank meeting to order at 3:02 p.m. APPROVE BOARD Commissioner May moved to approve the minutes of the July 19, 2021 MINUTES 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 – Aye LAND BANK FY2020-21 Karen Van Winkle, Director of Finance for the City of Blue Springs, BUDGET AMENDMENT presented the Fiscal Year 2020-21 Budget Amendment and the Fiscal AND FY2021-22 ANNUAL Year 2021-22 budget. The FY 2020-21 Budget Amendment and FY BUDGET 2021-22 Annual Budget summary are attached to these Minutes. Commissioner Fairbanks moved to approve the FY 2020-21 Budget Amendment and the FY 2021-22 Land Bank Budget. The motion was seconded by Commissioner May and carried with the following votes: May – Aye Fairbanks – Aye Sampson – Aye Johnson – Aye White-Baldridge – Aye 2021 TAX SALE UPDATE Jackie Sommer, attorney, gave an update on the 2021 Jackson County Tax Sale. All properties in Blue Springs that were scheduled for the 2021 Jackson County Tax Sale have either been redeemed through payment or by entering a payment agreement with Jackson County. These results are still unofficial and will be confirmed prior to the next Land Bank meeting on September 20, 2021. 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, August 16, 2021 Land Bank Minutes Page 2 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 – AYE ______________________________ Eric Johnson, Chair ________________________ Julia Porter, Board Secretary  CITY OF BLUE SPRINGS BALANCE SHEET - LAND BANK FISCAL YEAR 2020-21 FOR THE PERIOD ENDED - SEPTEMBER 30, 2021 CATEGORY LAND BANK ASSETS Cash and investments $ 86,963 Receivables (net of allowances Taxes - Accounts Accrued interest - Interfund receivables - Land 243,504 Prepaid items - TOTAL ASSETS $ 330,467 LIABILITIES Accounts payable $ 10,000 Accrued liabilities - Interfund payable - Long term debt - TOTAL LIABILITIES $ 10,000 FUND BALANCES Reserved for: Encumbrances - Unassigned 320,467 TOTAL FUND BALANCES $ 320,467 TOTAL LIABILITIES AND FUND BALANCE $ 330,467 Page 1  CITY OF BLUE SPRINGS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - LAND BANK FISCAL YEAR 2020-21 FOR THE PERIOD ENDED - SEPTEMBER 30, 2021 CATEGORY LAND BANK REVENUES: Farm Lease $ 5,600 Sale of Land 980,203 Property Taxes 111,848 Interest 6,541 Contributed Capital - Land - Other - TOTAL REVENUES $ 1,104,192 EXPENDITURES: Current: Personal Services - Materials & Supplies - Contractual Services 1,085,537 Capital Outlay - Capital Improvements - Debt service: - Principal retirement - Interest and fiscal charges - TOTAL EXPENDITURES $ 1,085,537 Excess of revenues over (under) expenditures $ 18,655 OTHER FINANCING SOURCES (USES): Issuance of bonds - Discount on bond issuance Loss on sale of asset (52,901) Transfers in Transfers (out) - TOTAL OTHER FINANCING SOURCES (USES) $ (52,901) NET CHANGE IN FUND BALANCES (34,246) FUND BALANCES - OCTOBER 1, 2020 $ 354,712 FUND BALANCES - SEPTEMBER 30, 2021 $ 320,467 Page 2 Land Bank Annual Report October 1, 2020 – September 30, 2021 Purpose of the The purpose of the Land Bank of Blue Springs is to return non-revenue- Land Bank generating and non-tax-producing land to usefulness.  MAYORAL APPOINTEES: Eric Johnson, May 2013 – August 2021 James (Jim) May, May 2013 – Present, Vice Chair Tracy White-Baldridge, May 2016 – Present Land Bank SCHOOL DISTRICT APPOINTEE: Commissioners Kirk Sampson, August 2018 – Present, Treasurer COUNTY APPOINTEE: James Fairbanks, January 2017 - Present  The Land Bank is audited as a part of the City’s annual audit. Land Bank Financial statements are prepared Financials and presented to the board quarterly  The Land Bank sold five parcels in FY 2020-21. The total purchase price for all five properties was Parcels Sold $990,203 for approximately 94 Acres Parcels Sold – 2014-03 2014-03-54-410-99-10-00-0-00-000 • Purchaser: GAP Construction LLC • Area: Chapman Farms • Purchase Price: $51,705 • Size: 3.83 Acres • NID Assessment: $4,695 annually through and including year 2029 • Sold on March 31, 2021 Parcels Sold – 2014-04 & 2014-05 2014-04-54-420-06-99-00-0-00-000 & 2014-05-54-420-98-03-01-0-00-000 • Purchaser: DAK Realty Devco • Area: Chapman Farms • Purchase Price: $375,000 • Size: 29.33 Acres • NID Assessment: $37,280 annually through and including year 2029 • Sold on April 30, 2021 Parcels Sold – 2016-06 2016-06-41-940-99-01-01-0-00-000 • Purchaser: Rausch Coleman Homes dba Kansas LD, LLC • Area: Chapman Farms • Purchase Price: $428,498 • Size: 40.79 Acres • NID Assessment: $67,764 through and including the year 2029 • Closed on May 27, 2021 *2016-06 was purchased in two sections with the first 20 Acres purchased on July 1, 2021, and the remaining 40 Acres outlined above Parcels Sold – 2017-05-A 2017-05-A-54-200-01-08-01-0-00-000 • Purchaser: Proverbs Holdings • Area: Chapman Farms • Purchase Price: $135,000 • Size: 20 Acres • NID Assessment: $22,401 annually through and including year 2029 • Sold on May 6, 2021  Status Number of Properties For Sale 4 Available to 16 Current Neighboring Lot Owners Inventory Not for Sale 11 Total: 31 The Land Bank did not acquire any new parcels in FY 2020-21  Total unpaid NID assessments on Land Bank property as of South Area September 30, 2021: Sewer Neighborhood $2,117,822 Improvement This is a decrease of $561,976 District from the previous year.  Farm Leases: Three parcels were bid out for a Farm Lease in February 2021 and the lease was awarded to Chapman Farms Partnership, LLC on April 19, Other 2021. The details are outlined the table below: Actions by Land Bank Parcel Number 2017-03-41-700-03-03-00-0-00-000 Tillable Total Cost to Acres Acres Rent 70 105 Effective Date $5,600 03/20/2021 – the Board 2017-04-54-100-02-03-00-0-00-000 2017-05-54-200-01-08-00-0-00-000 Acres Acres 12/31/2022  Realtor Contract: The Land Bank’s Contract for Real Estate Services with Lance Dillenschneider was set to end in April Other 2021. The request for proposals was published on Actions by February 25, 2021 and again on March 17, 2021. The contract was awarded to Lance the Board Dillenschneider on April 19, 2021 for a term of one year with two automatic renewals  Full report is available at LandBankBlueSprings.com and in the meeting Agenda packet. Questions? Contact the Land Bank 903 W. Main Street, Blue Springs, MO 64015 (816) 220-4596 | contact@landbankbluesprings.com www.landbankbluesprings.com  James May Acting Chairman Julia Porter Board Secretary October 1, 2020 - September 30, 2021 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 .................................................................................................................... 5 CURRENT INVENTORY ............................................................................................................ 5 PARCELS AVAILABLE FOR SALE ........................................................................................ 5 PARCELS AVAILABLE TO NEIGHBORING LOT OWNERS .................................................. 6 PARCELS NOT FOR SALE.................................................................................................... 7 SOUTH AREA SEWER NEIGHBORHOOD IMPROVEMENT DISTRICT ................................... 8 OTHER ACTIONS BY THE BOARD .......................................................................................... 8 FARM LEASES ...................................................................................................................... 8 REALTOR CONTRACT .......................................................................................................... 8 *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 2020-21 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, 2020 through September 30, 2021. COMMISSIONERS SCHOOL DISTRICT APPOINTEE: Kirk Sampson, August 2018 – Present, Treasurer COUNTY APPOINTEE: James Fairbanks, January 2017 - Present MAYORAL APPOINTEES: Eric Johnson, May 2013 – August 2021 James (Jim) May, May 2013 – Present, Vice Chair Tracy White-Baldridge, May 2016 - Present Land Bank Report FY 2020-21 2 FINANCIAL SUMMARY Blue Springs Land Bank Trust Agency - Statement of Changes in Net Position Additions 2021 2020 2019 2018 2017 Property taxes $ 111,848 $ 48,835 $ 106,408 $ 78,820 $ 74,986 Contributions and donations from private sources 980,203 283,763 890,000 93,731 224,676 Gain on sale of capital assets - - - - Interest income 6,541 1,444 11,613 993 389 Other income 5,600 12,864 7,772 7,220 - Total additions 1,104,192 346,906 1,015,793 180,764 300,051 Deductions Administrative expenses 67,876 18,168 62,645 4,769 4,768 Remittance of special assessment collections to Sewer Fund 1,017,661 686,931 538,102 74,513 70,783 Loss on sale of capital assets 52,901 70,123 71,379 133,214 9 Total deductions 1,138,438 775,222 672,126 212,496 75,560 Change in net position (34,246) (428,316) 343,667 (31,732) 224,491 Net position, beginning 354,713 783,029 439,362 471,094 246,603 Net position, ending $ 320,467 $ 354,713 $ 783,029 $ 439,362 $ 471,094 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 2020-21 3 PARCELS ACQUIRED BY THE LAND BANK No parcels were acquired by the Land Bank in FY 2020-21. PARCELS SOLD OR TRANSFERRED SOLD The Land Bank of Blue Springs sold five properties in FY 2020-21. Below is a summary of each property sold: Land Bank Parcel Number Purchaser Size/ Purchase Price per Acre Price 2014-03-54-410-99-10-00-0-00-000 GAP Construction 3.83 Acres / $51,705 LLC $13,500 2014-04-54-420-06-99-00-0-00-000 & DAK Realty Devco 29.33 Acres / $375,000 2014-05-54-420-98-03-01-0-00-000 $12,786 2016-06-41-940-99-01-01-0-00-000 Rausch Coleman 40.79 Acres / $428,498 Homes dba Kansas $10,505 LD, LLC 2017-05-A-54-200-01-08-01-0-00-000 Proverbs Holdings 20 Acres / $135,000 $6,750 Total 93.95 Acres $990,203 2014-03-54-410-99-10-00-0-00-000 Purchaser: GAP Construction LLC Area: Chapman Farms Purchase Price: $51,705 Sold on March 31, 2021 NID Assessment: $4,695 annually through and including year 2029 2014-04-54-420-06-99-00-0-00-000 & 2014-05-54-420-98-03-01-0-00-000 Purchaser: DAK Realty Devco Area: Chapman Farms Purchase Price: $375,000 Sold on April 30, 2021 NID Assessment: $37,279.81 annually through and including year 2029 Land Bank Report FY 2020-21 4 2016-06-41-940-99-01-01-0-00-000 Purchaser: Rausch Coleman Homes dba Kansas LD, LLC Area: Chapman Farms Purchase Price: $428,498 Closed on May 27, 2021 NID Assessment: $67,763.77 through and including the year 2029 *2016-06 was purchased in two sections with the first 20 Acres purchased on July 1, 2021, and the remaining 40 Acres outlined above 2017-05-A-54-200-01-08-01-0-00-000 Purchaser: Proverbs Holdings Area: Chapman Farms Purchase Price: $135,000 Sold on May 6, 2021 NID Assessment: $22,400.57 annually through and including year 2029 TRANSFERRED The Land Bank of Blue Springs did not transfer property in FY 2020-21. CURRENT INVENTORY There are currently four 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 11 parcels listed as Not for Sale. PARCELS AVAILABLE FOR SALE Land Bank Parcel Number Status Area Size 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-B-54-200-01-08-00-0-00- For Sale Chapman 94.59 Acres 000 Farms – NID 2017-06-54-200-04-10-00-0-00-000 For Sale Chapman 58.28 Acres Farms – NID Land Bank Report FY 2020-21 5 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 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 Land Bank Report FY 2020-21 6  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 2013-06-35-440-05-42-00-0-00-000 Detention Basin Creek Side 1.01 Acres Estates 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 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 Land Bank Report FY 2020-21 7 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, 2021, are $2,117,822. The assessments as of September 30, 2020 were $2,679,798. 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 2020-21: FARM LEASES The following parcels were bid for a Farm Lease, the Bid Invitation was published on February 25, 2021 and remained open until 2:00 p.m. on March 11, 2021. Parcels 2017-03, 2017-04, and 2017-05 were bid together because all of the parcels border each other and have been farmed together in the past. The lease for all three properties was awarded to Chapman Farms Partnership, LLC on April 19, 2021. Land Bank Parcel Number Tillable Total Cost to Effective Date Acres Acres Rent 2017-03-41-700-03-03-00-0-00-000 70 105 $5,600 03/20/2021 – 12/31/2022 2017-04-54-100-02-03-00-0-00-000 Acres Acres 2017-05-54-200-01-08-00-0-00-000 REALTOR CONTRACT The Land Bank’s contract for Real Estate Services with Lance Dillenschneider was set to end in April 2021. The request for proposals for real estate services was published on February 25, 2021 and remained open until March 11, 2021. No proposals were received during that time, so the request was published again on March 17, 2021 and remained open until April 8, 2021. The contract for real estate services was awarded to Lance Dillenschneider on April 19, 2021 for a term of one year with two automatic renewals. Land Bank Report FY 2020-21 8