Is Land Banking an Answer for Shrinking Cities?

There is a new planning concept circulating now that attempts to describe the multiple decades of decline and population loss that many old industrial cities have been suffering from – shrinking cities.  These are areas with severe and persistent population decline that are also characterized as old, small and poor for the most part.  One hundred and fifty American cities, the majority of which are in the rust belt of the Midwest, meet these criteria.   The planning challenges in such areas are not the typical management of growth and expansion but rather issues like abandoned and blighted properties, stagnant economies, dispersed populations, and too much infrastructure.

One solution to the issue of blight that is being used successfully in many shrinking cities across the US is land banking.  A land bank is a public authority created to hold, manage, and develop foreclosed properties.  One of the best examples of a successful land bank is the Genesee County Land Bank in Michigan which covers the city of Flint.  Here the county was able to streamline and simplify the tax foreclosure process to give the Land Bank the opportunity to strategically plan the reuse of the parcels it holds.  Through the Genesee County Land Bank nearly 1,000 abandoned homes have been demolished, 90 affordable housing rentals units and 80 single-family homes have been reconstructed, and 700 “side yards” have been sold to adjacent landowners for upkeep. A study by Michigan State University showed that the land bank’s efforts have increased local property values by more than $100 million due to the removal of blight.

As some cities are learning growth is not always going to be the answer for every community.  For some cities, shrinking in a controlled and strategic way may be the best solution.  In those areas, land banks can be an important revitalization tool.  In WV we would need reforms to our tax code in order to allow for land banking; however, efforts are underway to explore this through the current Tax Modernization Project.

Visit the Genesee County Land Bank to learn more.