From the Jeffersonville News and Tribune:
The city of New Albany is attempting to acquire four tax-delinquent and vacant properties from Floyd County, and the proposal has led to a discussion over a municipality’s right to claim land within its borders to redevelop.
Earlier this month, Carl Malysz, New Albany Director of Community Housing Initiatives, appeared before the Floyd County Commissioners to inquire about properties the county has acquired through default.
Recent changes in the state statute have put counties in charge of dispersing tax-delinquent properties that aren’t sold during a sheriff’s auction. For this year, Floyd County obtained 20 such properties, 19 of which are located in New Albany. There are four properties with structures that are of particular interest to the city, because they are adjacent to the S. Ellen Jones neighborhood, which is the target of the federally funded Midtown revitalization project.
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With taxes owed on the properties, the commissioners took the matter under advisement, and on Thursday, County Planner Don Lopp responded to the city’s request with a price tag of $26,000 for the lots.
But Mayor Jeff Gahan’s administration had another plan in mind, according to a a memo delivered to the county. The city has requested the county convey the titles to all the tax-delinquent properties located in New Albany. In exchange, the city would raze any dilapidated structures on the properties and maintain the lots. If they are rehabilitated and sold, the city is proposing to split the proceeds with the county, minus demolition and maintenance costs.
Malysz said all four of the SEJ properties in question are “wrecking ball candidates” and that the city would likely have to spend at least $26,000 on the lots. If the goal is to get the properties back on tax rolls, the county should partner with the city in redeveloping the lots instead of charging fees for dilapidated structures, Malysz said.
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Lopp said the county is simply following state statute. The county is charged with first offering the tax-delinquent properties at their assessed value, and if they’re not purchased, a lower price can be requested, Lopp said.
The city’s “first offer was very ambiguous in terms of how proceeds would be split, who would be in charge of the properties and how that process was going to work, and we needed something a little more clear,” he said.
Lopp added the county understands the importance of supporting the Midtown project and is waiting on a response to its offer.
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http://newsandtribune.com/business/x192354236/Is-it-your-land-or-is-it-my-land
