The City of Mankato adopted a land bank ordinance in 2019. What could this mean for assisting property owners, supporting clean-up of properties and providing a tool to tackle projects in Mankato? A land bank is established by an ordinance within a city and then governed by an appointed board. Those currently serving on the Mankato Land Bank Board include Susan Abel of the Mankato City Council as well as, Nadine Smith, Wade Alexander and Jack Alcorn.
Properties in the land bank go off the tax roll while in the land bank and default to the city’s liability insurance. By addressing dilapidated and condemned structures, land banks can greatly improve the community aesthetic appearance. Additionally, a land bank is a helpful tool to address abandoned and delinquent properties. Land banks are a proactive measure to return such properties to productive use. One of the greatest benefits of a land bank lies in the fact that property could be eligible for grant money for clean-up or repurposing.
In contrast, private property owners are never eligible for grants.Upon approval by the land bank board, a property owner can donate a property into the land bank to help get it out of their management. There are three other ways properties can enter a land bank, one being the tax sale of properties. These properties must have a potential for development within a reasonable time period, and include tax delinquent property, as well as property foreclosed on by the county. Property currently owned by the city or donated by other governmental entities is also eligible to be entered into a land bank. Lastly, property can be purchased by the Land Bank Board to compliment properties previously identified to the land bank through other means.
Once in the land bank, the land bank board can seek grants to fix any issues with the property. Once remedied, the property can be put back on the market through an application process. Land must be sold at fair market value and back taxes can be requested to be paid by new owner.
Applicants for the land bank much meet certain criteria. The applicant must not be delinquent on any licenses or taxes within the county, and they must not have a history of code enforcement violations at properties they own or have outstanding violations. Land banks are a tool to address abandoned and delinquent properties and are a proactive measure to return such properties to productive use.
“The land bank board is a vital asset to the citizens and businesses of Mankato. Their goal is to ensure property that has been abandoned or seized by the city is sold and utilized by private owners in a responsible and economical way. The land bank helps businesses and citizens restore blighted and condemned areas, making these areas more useful and productive for the community,” stated Barry Parsons, Mankato City administrator.
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