LIEN FORWARD OHIO Entity to make land productive

The partnership is trying to deal with 15,000 tax-delinquent city lots.
YOUNGSTOWN -- Mahoning County and the city of Youngstown have joined hands to form a partnership to return unproductive property to valuable use.
At a press conference today, county Treasurer John B. Reardon, Mayor George McKelvey and other city and county officials were to explain the benefits of the partnership called Lien Forward Ohio.
Lien Forward creates a regional government council consisting of the city and county. Youngstown City Council already approved the formation of the entity and county commissioners will endorse it at their meeting Thursday, Reardon said.
The mission of Lien Forward is to improve the economy and quality of life in Mahoning County by returning abandoned property to productive use, the treasurer said.
"Our goal... is to return an additional 5,000 parcels to productive use in the next five years," Reardon said.
The treasurer said the creation of Lien Forward is the culmination of years of hard work developing the best solution to finding a way to deal with 15,000 vacant, abandoned, tax-delinquent lots, Reardon said.
In 2001, the county treasurer's office lobbied for a change in state law to allow county treasurers the opportunity to negotiate the sale of tax liens.
In April 2004, the county treasurer negotiated the sale of more than 17,500 tax liens with American Tax Funding of North Palm Beach, Fla.
What's in agreement
The contract included two specifications: the successful buyer would have to purchase all the liens in the aggregate bundle and not just those that presented a profit opportunity for the buyer and, at the treasurer's direction, the lien holder would transfer vacant parcel liens to interested third parties with a development plan at a nominal cost.
The tax lien certificate would then be used to legally facilitate taking ownership of the land more economically and much more quickly than a land bank could, Reardon added.
Since April, the treasurer has directed the transfer of about 800 liens, and every one of those parcels is being returned to productive, taxpaying use, Reardon said.
"We've transferred liens to individual homeowners, businesses, churches, nonprofit groups, schools, local governments," the treasurer said. "These folks are taking ownership of the land, improving the aesthetic [aspects] of our community and paying the tax bills."
The cost to the interested party to acquire land can be $300 or more, however.
This is where the regional council of governments comes in, Reardon said.
Other services
As a quasi-public entity, Lien Forward can provide financial aid and in-kind services to citizens to a much greater degree than the treasurer's office could, Reardon said.
Lien Forward also will be able to assist qualifying individuals with free or reduced cost attorney services, and even cash grants to pay for things such as title searches and filing fees.
Reardon said the regional council also will strategically target specific neighborhoods and streets for renovation and revitalization. It will engender private-public partnerships and serve as a catalyst to economic development efforts by others, including Youngstown 2010 and the Regional Chamber.
The initial startup capital for Lien Forward -- $300,000 -- is being provided by the treasurer's office from a special fund established before the negotiated tax lien sale, and is funded by fees paid by the lien buyer at the time of the sale, Reardon added.
Future lien sales -- including one slated for November-- will provide additional funding. Youngstown is providing in-kind services, including free space in the former Phar-Mor Center, and financial accounting and reporting by the city's finance department.
"Our intention is to use our financial contribution -- both cash and in-kind services -- as leverage to garner additional funds from federal and state grants, foundations and bank community reinvestment funds," Reardon said.
One of the primary reasons the county and city formed Lien Forward is because foundations and banks may legally contribute to such a quasi-public entity, where they may not contribute directly to a government entity like the treasurer's office, Reardon said.