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CL- 2047 Work Session   Item #:   B.    
Work Session Meeting
Meeting Date: 02/05/2019  
Subject:    Designation of the DNDC as the City's Official Land Bank Entity
From: Earl B. Reynolds, Jr.

COUNCIL ACTION
Work Session Meeting:     02/05/2019
SUMMARY
During the 2016 session of the General Assembly, the Land Bank Entities Act was adopted.  The legislation was recommended by the Virginia Housing Commission, which is chaired by Delegate Danny Marshall.  At the suggestion of Vice Mayor Vogler, a study of the value of Land Banks in helping to address blighted conditions in Virginia cities was undertaken.  With the unanimous support of the Virginia Housing Commission, Delegate Marshall introduced the Land Bank Entities legislation which took effect July 1, 2016.
BACKGROUND
Since the adoption of the Land Bank Entities Act, the City initiated the creation of the Danville Neighborhood Development Corporation (DNDC).  One of the founding purposes of the DNDC was to assume the administration of the land bank program, and to consolidate the operations of the land banking activities that are currently divided among several City departments and the Danville Redevelopment and Housing Authority.  Towards this end, the DNDC Board and community representatives from various neighborhoods, as well as private sector representatives, received training on effective land bank operations from the Center for Community Progress, the premiere provider of Land Bank training and technical assistance in the nation (see attached Land Bank Training Announcement). 

The DNDC Executive Director is currently working with City staff, residents, church leaders, and the DRHA administration   to create redevelopment plans for derelict structures and vacant lots in the Almegro, Monument-Berryman, OWE, Cardinal Village, Schoolfield, Westmoreland, and North Side communities. The redevelopment plans will involve the rehabilitation of the vacant derelict structures, as well as the construction of new owner occupied single family homes. 

Once a DNDC property is rehabilitated and occupied or new construction is completed on vacant lots, the property will not be exempted from real estate taxation.  Also, the DNDC will not be exempted from paying building permit and other fees required by the City.  Since the DNDC is an independent 501(c)(3) non profit organization, and not an official arm or division of the City, the City is not liable for its operations nor will the City be responsible for any debts or other financial liabilities that the DNDC may incur.
RECOMMENDATION
In accordance with the requirements of the Land Bank Entities Act, it is recommended that the City Council approve the attached Ordinance designating the Danville Neighborhood Development Corporation, Inc., as the City's official land bank entity. The City Council also authorizes the City Manager to execute the attached Memorandum of Understanding (MOU) which sets forth the City-DNDC relationship with respect to the administration of the program.  Once the MOU is fully executed, one-half of the funds designated in the Blight Eradication Fund for the Land Bank ($25,000) will be released to the DNCD for this purpose. 

Attachments
Ordinance
MOU
Land Bank Training

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